Document:

Exhibit 4.63

 

SCHEDULE A

 

DRAXIS HEALTH INC.

 

 

2006 STOCK OPTION PLAN

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1 -
  PURPOSE OF THE PLAN

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.01

  	
  Purpose

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 -
  INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.01

  	
  Definitions

  	
  1

  
	
  2.02

  	
  Extended Meanings

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 -
  GRANT OF OPTIONS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  3.01

  	
  Authority of Board

  	
  3

  
	
  3.02

  	
  Shares Reserved

  	
  4

  
	
  3.03

  	
  Eligibility

  	
  4

  
	
  3.04

  	
  Limits with Respect to Insiders

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 -
  TERMS OF OPTIONS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  4.01

  	
  Option Agreement

  	
  5

  
	
  4.02

  	
  Exercise Price

  	
  5

  
	
  4.03

  	
  Time of Exercise

  	
  5

  
	
  4.04

  	
  Expiry Date

  	
  5

  
	
  4.05

  	
  Early Expiry

  	
  6

  
	
  4.06

  	
  Non-Assignable

  	
  6

  
	
  4.07

  	
  No Rights as Shareholder or to
  Remain an Eligible Person

  	
  7

  
	
  4.08

  	
  Adjustments to Common Shares

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 -
  EXERCISE OF OPTIONS

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  5.01

  	
  Manner of Exercise

  	
  8

  
	
  5.02

  	
  Delivery of Share Certificate

  	
  8

  
	
  5.03

  	
  Withholding

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 -
  ADMINISTRATION

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  6.01

  	
  Administration

  	
  8

  
	
  6.02

  	
  Amendment or Discontinuation

  	
  9

  
	
  6.03

  	
  Compliance with Laws and Stock
  Exchange Rules

  	
  9

  
									

 

 

ARTICLE 1 - PURPOSE OF THE PLAN

 

1.01         Purpose

 

The purpose of the DRAXIS Health Inc. 2006
Stock Option Plan is to assist and encourage directors, officers and employees
of the Corporation and its Subsidiaries to work towards and participate in the
growth and development of the Corporation and its Subsidiaries by providing such
persons with the opportunity, through stock options, to acquire an ownership
interest in the Corporation.

 

ARTICLE 2 - INTERPRETATION

 

2.01         Definitions

 

In this Plan:

 

“Board” means
the board of directors of the Corporation.

 

“Cause” includes:

 

(a)                                  the continued failure by the
Optionholder to substantially perform his or her duties in connection with his
or her employment by, or service to, the Corporation (other than as a result of
physical or mental illness) after the Corporation has given the Optionholder
reasonable written notice of such failure and a reasonable opportunity to
correct it;

 

(b)                                 the engaging by the
Optionholder in any act which is injurious to the Corporation or its reputation
financially or otherwise;

 

(c)                                  the engaging by the Optionholder
in any act resulting or intended to result, directly or indirectly, in personal
gain to the Optionholder at the expense of the Corporation;

 

(d)                                 the conviction of the
Optionholder by a court of competent jurisdiction on any charge involving
fraud, theft or moral turpitude by the Optionholder in connection with the
business of the Corporation; or

 

(e)                                  any other conduct that
constitutes cause at common law, “serious reason” within the meaning of the Civil Code of Québec, or “good and sufficient cause” or “serious
reason” as such terms are interpreted from time to time by the jurisprudence of
the Province of Québec.

 

“Change of Control” includes:

 

(a)                                  the acquisition by any persons
acting jointly or in concert (as determined by the Securities
Act (Ontario)), whether directly or indirectly, of voting securities
of the Corporation which, together with all other voting securities of the
Corporation

 

 

held by such persons, constitute in the aggregate more
than 20% of all outstanding voting securities of the Corporation;

 

(b)                                 an amalgamation, arrangement
or other form of business combination of the Corporation with another
corporation which results in the holders of voting securities of that other
corporation holding, in the aggregate, more than 20% of all outstanding voting
securities of the Corporation resulting from the business combination; or

 

(c)                                  the sale, transfer, lease or
exchange of 50% or more of the property of the Corporation to another person or
corporation, other than in the ordinary course of business of the Corporation,
or to a Subsidiary.

 

“Common Shares”
means common shares of the Corporation.

 

“Corporation”
means DRAXIS Health Inc. and any successor corporation thereto.

 

“Date of Termination”
means the actual date of termination of (i) the office of the Optionholder
or (ii) the employment of the Optionholder, as applicable, and does not
include any period during which the Optionholder is in receipt of or is
eligible to receive any statutory, contractual or common law notice or
compensation in lieu thereof or severance payments following the actual date of
termination or resignation.

 

“Eligible Person”
means any director, officer or employee of the Corporation or any Subsidiary.

 

“Exercise Price”
means the price per Common Share at which Common Shares may be subscribed for
by an Optionholder pursuant to a particular Option Agreement.

 

“Expiry Date”
means the date after which a particular Option can no longer be exercised,
subject to amendment in accordance with the terms hereof, provided that if the
Expiry Date of any vested Option falls on, or within nine (9) trading days
immediately following, a date upon which such Eligible Person is prohibited
from exercising such Option due to a black-out period or other trading
restriction imposed by the Corporation, then the Expiry Date of such Option
shall be automatically extended to the tenth (10th) trading day
following the date the relevant black-out period or other trading restriction
imposed by the Corporation is lifted, terminated or removed.

 

“Grant Date”
means the date on which an Option is granted, which date may be on or, if
determined by the Board at the time of grant, after the date that the Board
resolves to grant the Option.

 

“Insider” means:

 

(a)                                  an insider as defined in the Securities Act (Ontario), other than a person who falls
within that definition solely by virtue of being a director or senior officer
of a Subsidiary; and

 

 

2

 

(b)                                 an associate, as defined in
the Securities Act (Ontario), of any person
who is an insider by virtue of (a) above.

 

“Notice of Exercise”
means a notice, substantially in the form of the notice set out in Schedule B,
from an Optionholder to the Corporation giving notice of the exercise or
partial exercise of an Option previously granted to the Optionholder.

 

“Option” means
an option to purchase Common Shares granted to an Eligible Person pursuant to
the terms of the Plan.

 

“Option Agreement”
means an agreement, substantially in the form of the agreement set out in Schedule
A to this Plan, between the Corporation and an Eligible Person setting out the
terms of an Option granted to the Eligible Person.

 

“Optioned Shares”
means the Common Shares that may be subscribed for by an Optionholder pursuant
to an Option Agreement.

 

“Optionholder”
means an Eligible Person to whom an Option has been granted.

 

“Plan” means the
DRAXIS Health Inc. 2006 Stock Option Plan, as amended from time to time.

 

“Share Compensation
Arrangement” means any stock option, stock option plan, employee stock
purchase plan or any other compensation or incentive mechanism involving the
issuance or potential issuance of Common Shares, including a share purchase
from treasury which is financially assisted by the Corporation by way of a
loan, guarantee or otherwise.

 

“Subsidiary” has
the meaning attributed thereto in the Securities Act
(Ontario).

 

2.02         Extended Meanings

 

In this Plan, words importing the singular
number only include the plural and vice versa,
words importing any gender include all genders and words importing persons
include individuals, corporations, limited and unlimited liability companies,
general and unlimited partnerships, associations, trusts, incorporated
organizations, joint ventures and governmental authorities.

 

ARTICLE 3 - GRANT OF OPTIONS

 

3.01         Authority of Board

 

Subject to the limitations of the Plan, the
Board has the authority:

 

(a)                                  to determine which Eligible
Persons are to be granted Options and to grant Options to those Eligible
Persons;

 

3

 

(b)                                 to determine the terms of such
Options; and

 

(c)                                  to prescribe the form of
Option Agreement and Notice of Exercise with respect to a particular Option, if
other than substantially as set forth in Schedules A and B to this Plan.

 

3.02         Shares Reserved

 

(1)           The maximum number of Common Shares
that may be reserved for issuance pursuant to Options granted under the Plan is
1,500,000.

 

(2)           The maximum number of Common Shares
that may be reserved for issuance to any one Eligible Person pursuant to Options
granted under the Plan is 5% of the number of Common Shares outstanding at the
time of reservation.

 

(3)           Any Common Shares subject to an
Option that expires or terminates without having been fully exercised may be
made the subject of a further Option.  No
fractional Common Shares may be issued under the Plan.

 

3.03         Eligibility

 

Options may be granted by the Board to any
Eligible Person, subject to the limitations set forth in Sections 3.02(2) and
3.04, prior to his or her Date of Termination.

 

3.04         Limits with Respect to Insiders

 

(1)           The maximum number of Common Shares
that may be reserved for issuance to Insiders pursuant to Options granted under
the Plan and any other Share Compensation Arrangement is 10% of the number of
Common Shares outstanding.

 

(2)           The maximum number of Common Shares
that may be issued to Insiders under the Plan and any other Share Compensation
Arrangement within a one-year period is 10% of the number of Common Shares
outstanding.

 

(3)           The maximum number of Common Shares
that may be issued to any one Insider (and such Insider’s associates, as
defined in the Securities Act (Ontario)) under
the Plan and any other Share Compensation Arrangement within a one-year period
is 5% of the number of Common Shares outstanding.

 

(4)           For the purposes of Sections 3.04(2) and
(3) above, the number of Common Shares outstanding is to be determined on
the basis of the number of Common Shares outstanding at the time of the
reservation or issuance, as the case may be, excluding Common Shares issued under
the Plan or under any other Share Compensation Arrangement over the preceding
one-year period.

 

4

 

ARTICLE 4 - TERMS OF OPTIONS

 

4.01         Option Agreement

 

As soon as practicable following the grant
of an Option, the Corporation will deliver to the Optionholder an Option
Agreement dated the Grant Date, containing the terms of the Option and executed
by the Corporation, and upon delivery to the Corporation of the Option
Agreement executed by the Optionholder such Optionholder will be a participant
in the Plan and have the right to purchase the Optioned Shares on the terms set
out in the Option Agreement and the Plan.

 

4.02         Exercise Price

 

The Exercise Price of Common Shares subject
to an Option will be determined by the Board at the time of grant and will not
be less than the market price of the Common Shares at the Grant Date,
calculated as the closing price of a board lot of the Common Shares on The
Toronto Stock Exchange on the last trading day immediately preceding the Grant
Date or, if the Common Shares did not trade on such last trading day, the
average, rounded up to the nearest cent, of the bid and ask prices for a board
lot of the Common Shares at the close of trading on such last trading day.  For the purposes of this Section 4.02,
if the Option is granted after the close of trading on any particular Grant
Date, the “trading day preceding the Grant Date” will be deemed to be the Grant
Date.

 

4.03         Time of Exercise

 

(1)           Subject to Section 4.04, the
Board shall determine at the time of grant the date or dates on which Options
will be exercisable.  The Board may
determine after the Grant Date that a particular Option will be exercisable in
whole or in part on earlier dates for any reason.

 

(2)           Notwithstanding anything herein to
the contrary, if there occurs a Change of Control at any time when an Option
granted under the Plan remains unvested with respect to any Optioned Shares,
such unvested portion will vest and become fully exercisable, as to all the
Optioned Shares in respect of which such Option was not previously exercisable,
by the Optionee at any time up to and including a date 30 days following the
consummation of such Change of Control.

 

(3)           Notwithstanding the provisions of
Sections 4.03(1) and (2), no unvested portion of an Option will vest
as a result of a Change in Control that occurs after the Date of Termination of
an Optionholder.

 

4.04         Expiry Date

 

The Expiry Date of an Option will be ten
years after the Grant Date, subject to

 

(a)                                  the right of the Board to
determine at the time of grant that a particular Option will have a shorter
term; and

 

(b)                                 the provisions of Section 4.05
relating to early expiry.

 

5

4.05                           Early
Expiry

 

An Option will expire before its Expiry
Date in the following events and manner:

 

(a)                                  if an Optionholder dies, only
the portion of the Option that is exercisable at the date of death of the
Optionholder may be exercised by the personal representatives of the
Optionholder during the period ending 6 months after the death of the
Optionholder or such later date as the Board may approve, after which period
all Options terminate;

 

(b)                                 if an Optionholder resigns his
or her office or employment (other than as provided for in Section 4.05(e)),
only the portion of the Option that is exercisable at the date of resignation
may be exercised by the Optionholder during the period ending 30 days
after the date of resignation or such later date as the Board may approve,
after which period all Options terminate;

 

(c)                                  if an Optionholder is
terminated without Cause, including a constructive dismissal, only the portion
of the Option that is exercisable at the Date of Termination may be exercised
by the Optionholder during the period ending 30 days after the Date of
Termination or such later date as the Board may approve, after which period all
Options terminate;

 

(d)                                 if an Optionholder attains the
mandatory retirement age established by the Corporation from time to time or an
Optionholder’s employment  or service
ceases due to permanent disability, only the portion of the Option that is
exercisable at the date of retirement or cessation may be exercised by the
Optionholder during the period ending 6 months after the date of
retirement or cessation or such later date as the Board may approve, after
which period all Options terminate; and

 

(e)                                  unless the Board determines
otherwise, an Option will expire immediately upon the Optionholder ceasing to
be an Eligible Person as a result of being dismissed from his or her office or
employment for Cause, including where an Eligible Person resigns his or her
office or employment after being requested to do so by the Corporation as an
alternative to being dismissed by the Corporation for Cause

 

subject in all cases to the earlier
expiration of an Option on its applicable Expiry Date.

 

4.06                           Non-Assignable

 

Except as provided in Section 4.05(a),
an Option may be exercised only by the Optionholder and is not assignable in
law or in equity, and any purported assignment is void and of no force and
effect whatsoever.

 

6

 

4.07                           No Rights
as Shareholder or to Remain an Eligible Person

 

(1)                                  An Optionholder will only have
rights as a shareholder of the Corporation with respect to Optioned Shares that
the Optionholder acquires through the exercise of an Option in accordance with
its terms.

 

(2)                                  Nothing in this Plan or in any
Option Agreement will confer on any Optionholder any right to remain as a
director, officer or employee of the Corporation or any Subsidiary.

 

4.08                           Adjustments
to Common Shares

 

(1)                                  The number of Common Shares
delivered to an Optionholder upon exercise of an Option will be adjusted as
determined by the Board in the following events and manner, subject to the
right of the Board to make such additional or other adjustments as are
appropriate in the circumstances:

 

(a)                                  upon a subdivision of the
Common Shares into a greater number of Common Shares, a consolidation of the
Common Shares into a lesser number of Common Shares or the issue of a stock
dividend to holders of the Common Shares (other than dividends in the ordinary
course), the Corporation will deliver upon the exercise of an Option, in
addition to or in lieu of the number of Optioned Shares in respect of which the
right to purchase is being exercised and without the Optionholder making any
additional payment, such greater or lesser number of Common Shares as results
from the subdivision, consolidation or stock dividend;

 

(b)                                 upon the distribution by the
Corporation to holders of the Common Shares of shares of any class (whether of
the Corporation or another corporation, but other than Common Shares), rights,
options or warrants, evidences of indebtedness or cash (other than dividends in
the ordinary course), other securities or other assets, the Corporation will
deliver upon exercise of an Option, in addition to the number of Optioned
Shares in respect of which the right to purchase is being exercised and without
the Optionholder making any additional payment, such other securities, evidence
of indebtedness or assets as result from such distribution; and

 

(c)                                  upon a capital reorganization,
reclassification or change of the Common Shares, a consolidation, amalgamation,
arrangement or other form of business combination of the Corporation with
another corporation or a sale, lease or exchange of all or substantially all of
the assets of the Corporation, the Corporation will deliver upon exercise of an
Option, in lieu of the Optioned Shares in respect of which the right to
purchase is being exercised, the kind and amount of shares or other securities
or assets as result from such event.

 

The purpose of such adjustments is to
ensure that any Optionholder exercising an Option after any such event will be
in the same position as such Optionholder would have been in if he or she had
exercised the Option prior to such event.

 

(2)                                  An adjustment will take effect
at the time of the event giving rise to the adjustment, and the adjustments
provided for in this Section are cumulative.

 

 

7

 

(3)                                  The Corporation will not be
required to issue fractional Common Shares or other securities under the Plan
and any fractional interest in a Common Share or other security that would
otherwise be delivered upon the exercise of an Option will be cancelled.

 

ARTICLE 5 - EXERCISE OF OPTIONS

 

5.01                           Manner of
Exercise

 

An Optionholder (or the personal
representatives of a deceased Optionholder) who wishes to exercise an Option
may do so by delivering the following to the Corporation on or before the
Expiry Date of the Option:

 

(a)                                  a completed Notice of
Exercise; and

 

(b)                                 a cheque (which need not be a
certified cheque) or bank draft payable to the Corporation for the aggregate
Exercise Price for the Optioned Shares being acquired.

 

If the Optionholder is deceased, the
personal representatives of the Optionholder must also deliver to the
Corporation evidence of their status to represent the Optionholder.

 

In no event shall the Corporation provide
financing to an Optionholder (or personal representative of a deceased
Optionholder) for the purpose of the exercise of Options.

 

5.02                           Delivery
of Share Certificate

 

As soon as practicable after receipt of the
Notice of Exercise and payment in full for the Optioned Shares being acquired,
the Corporation will direct its transfer agent to issue a certificate in the
name of the Optionholder (or, if deceased, the Optionholder’s estate) for the
number of Optioned Shares purchased by the Optionholder (or the Optionholder’s
estate), which will be issued as fully paid and non-assessable Common Shares.

 

5.03                           Withholding

 

The Corporation will withhold taxes to the
extent required by applicable law in respect of any amounts under this Plan.

 

ARTICLE 6
- ADMINISTRATION

 

6.01                           Administration

 

(1)                                  The Plan will be administered
by the Board or, if determined by the Board, by the Human Resources and
Compensation Committee of the Board.  If
the Human Resources and Compensation Committee is granted the authority to
administer the Plan, all references in this Plan to the Board will be deemed to
be references to the Human Resources and Compensation Committee.

 

 

8

 

(2)                                  The Board may interpret the
Plan and determine all questions arising out of the Plan and any Option granted
pursuant to the Plan, which interpretations and determinations will be
conclusive and binding on the Corporation and all other affected persons.

 

6.02                           Amendment
or Discontinuation

 

The Board reserves the right, in its sole
discretion, to amend, suspend or terminate the Plan or any portion thereof at
any time, in accordance with applicable legislation, without obtaining the
approval of shareholders.  Any amendment
to any provision of the Plan will be subject to any required regulatory or
shareholder approval.

 

Notwithstanding the foregoing, the
Corporation will be required to obtain the approval of the shareholders of the
Corporation for any amendment related to:

 

a)                                      the maximum number of Shares reserved for
issuance under the Plan (and under any other share compensation arrangements of
the Corporation);

b)                                     a reduction in the Exercise Price for
Options;

c)                                      an extension to the term of Options held;
and

d)                                     the increase in the 10% limits on grants to
Insiders set out in Section 3.04(1) of the Plan and any shareholder
approval required in respect of an amendment to increase such limits shall
exclude the votes attaching to the Common Shares, if any, held by Participants
who are Insiders.

 

6.03                           Compliance
with Laws and Stock Exchange Rules

 

The Plan, the grant and exercise of Options
under the Plan and the Corporation’s obligation to issue Common Shares on
exercise of Options will be subject to all applicable federal, provincial and
foreign laws, rules and regulations and the rules of any stock
exchange on which the Common Shares are listed for trading.  No Option will be granted and no Common
Shares will be issued under the Plan where such grant or issue would require
registration of the Plan or of such Common Shares under the securities laws of
any foreign jurisdiction and any purported grant of any Option or issue of
Common Shares in violation of this provision will be void.  Common Shares issued to Optionholders
pursuant to the exercise of Options may be subject to limitations on sale or
resale under applicable securities laws.

 

9

 

SCHEDULE A - FORM OF
OPTION AGREEMENT

 

DRAXIS HEALTH
INC. 

2006 STOCK OPTION PLAN

 

OPTION
AGREEMENT

 

This Option Agreement is entered into
between DRAXIS Health Inc. (the “Corporation”) and the Optionholder named below
pursuant to the DRAXIS Health Inc. 2006 Stock Option Plan (the “Plan”) and
confirms that:

 

	
  (a)

  	
   

  	
  on

  	
                                                                            
  

  	
  (the
  “GrantDate”); 

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
   

  	
  (the
  “Optionholder”);

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  was
  granted a non-assignable option to purchase

  
	
   

  	
   

  	
  Common Shares (the “Optioned Shares”) of
  the Corporation, exercisable as to l% on l

  
	
   

  	
   

  	
  [NTD: Insert vesting
  information];

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  at a price (the “Exercise Price”) of $

  	
   

  	
  per
  Common Share; and

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  for a
  term expiring at 5:00 p.m., Toronto time, on

  	
                                               

  	
   (the “Expiry Date”);

  
								

 

all on the terms and subject to the
conditions set out in the Plan.  By
signing this agreement, the Optionholder acknowledges that he or she has read
and understands the Plan and accepts the Options in accordance with the  terms of the Plan.  Optionholder also acknowledges that, if the
Optionholder is an insider of the Corporation (“Insider Optionee”) he or she
shall be responsible to file all insider reports required to be filed by him or
her related to the grant of the Options and any exercise thereof.  Said reports must be filed within the time
periods imposed by the applicable securities regulator for said filings.  The Insider Optionee who does not file his or
her insider reports within the required delays shall be responsible for the
payment of any fine levied against him or her due to said late filing.

 

The Exercise Form required to be
completed by the Optionholder for the exercise of the options is attached.

 

IN WITNESS WHEREOF the Corporation and the
Optionholder have executed the Option Agreement as of ·, 200·.

 

	
   

  	
   

  	
  DRAXIS HEALTH INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name
  of Optionholder

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature
  of Optionholder

  	
   

  	
   

  

 

 

SCHEDULE B - FORM OF
NOTICE OF EXERCISE

 

DRAXIS HEALTH
INC.

2006 STOCK OPTION PLAN

 

NOTICE OF
EXERCISE

 

	
  TO:

  	
  DRAXIS
  Health Inc.

  16751
  Trans-Canada Highway

  Kirkland,
  Québec

  H9H
  4J4

  
	
   

  	
   

  
	
   

  	
  Attention:

  	
  Secretary

  
	
   

  	
   

  
	
  Reference is made to the Option Agreement
  made as of

  	
                                          

  	
  200·, between DRAXIS Health Inc.
  (the 

  
	
  “Corporation”) and the Optionholder named
  below.  The Optionholder hereby
  exercises the Option to purchase Common Shares of the Corporation as follows:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
					

 

 

	
   

  	
  Number
  of Optioned Shares for which Option being exercised:

  	
   ·

  
	
   

  	
   

  	
   

  
	
   

  	
  Exercise
  Price per Common Share:

  	
  $·

  
	
   

  	
   

  	
   

  
	
   

  	
  Total
  Exercise Price (in the form of a cheque which need not be a certified cheque)
  or bank draft tendered with this Notice of Exercise):

  	
  $·

  
	
   

  	
   

  	
   

  
	
   

  	
  Name
  of Optionholder as it is to appear on share certificate

  	
   ·

  
	
   

  	
   

  	
   

  
	
   

  	
  Address
  of Optionholder as it is to appear on the register of Common Shares of the
  Corporation and to which a certificate representing the Common Shares being
  purchased is to be delivered:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name
  of Optionholder

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature
  of OptionholderExhibit 4.64

 

SCHEDULE A

 

Stock Option Plan of Draxis Health Inc.

 

AS AMENDED AND SUBMITTED TO THE TSE

June 27, 2001

 

Stock Option Plan

 

of

 

Draxis Health Inc.

 

1.             Purpose of the Plan

 

                The
Draxis Health Inc. Stock Option Plan (the “Plan) is intended to attract and
retain highly qualified officers, directors and employees who will be motivated
towards the success of Draxis Health Inc. (the “Corporation”) or any of its
subsidiaries.

 

2.             Administration

 

                This
Plan shall be administered by the Board of Directors of the Corporation (the
“Board”).  Subject to the terms of the
Plan, the Board is authorized to approve persons to whom options may be
granted, to construe and interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to the Plan, and to make all determinations and take all
actions necessary or advisable for the Plan’s administration.

 

3.             Granting of Options

 

                The
Board may from time to time in the manner herein provided grant options
(“Options”) to purchase common shares (“Shares”) of the Corporation to
directors, officers, employees or area managers or arm’s length consultants of
the Corporation and may provide for the number of Shares to be optioned to each
such director, officer, employee, area manager or arm’s length consultant..  Options shall be exercised on or prior to a
date determined by the Board of Directors at the date of the grant, which shall
be no later than ten years from the date of the grant and shall be subject to
the terms, conditions, limitations and prohibitions as are herein contained or
as may be in effect at the date of the grant.

 

4.             Shares Subject to Plan

 

                The
aggregate number of Shares that may be issued pursuant to the Plan shall be
7,500,000 Shares.  The number of Shares
reserved for issuance to any one person pursuant to options granted pursuant to
this Plan or otherwise shall not exceed 5% of the outstanding Shares.

 

 

5.             Participants

 

                The
individuals who are eligible to receive Options hereunder shall be directors,
officers or employees of the Corporation or a subsidiary of the Corporation or
arm’s length consultants of the Corporation or a subsidiary of the Corporation
(the “Eligible Optionees”).  The Board
shall from time to time, in its sole discretion, determine which of those
Eligible Optionees will be granted Options under the Plan (the “Optionees”) and
the number of Shares to be optioned to such Eligible Optionees.  The Board shall not be precluded from
granting an Option to an Eligible Optionee solely because such Eligible
Optionee may previously have been granted an Option under the plan.

 

6.             Option Price

 

                The
exercise price for an Option shall be fixed by the Board when such Option is
granted.  Under no circumstances shall
the exercise price for any Option be less than the closing price of the Shares
on The Toronto Stock Exchange on the trading day immediately preceding the date
of the grant.

 

7.             Option Terms

 

(a)                                  Subject
to paragraph 3 hereof, the period during which any Option may be exercised, in
whole or in part, shall be such period as the Board may determine (the “Option
Period”).  If the Option Period of any
vested Option falls on, or within, nine (9) trading days immediately
following, a date upon which an Optionee is prohibited from exercising such
Option due to a black-out period or other trading restriction imposed by the
Corporation, then the Option Period of such Option shall be automatically
extended to the tenth (10th) trading day following the date the relevant
black-out period or other trading restriction imposed by the Corporation is
lifted, terminated or removed.

 

(b)                                 In
the event that any Option has not been exercised in respect of all Shares
covered by the Option at the expiry of the Option Period, the Option shall
thereupon expire.

 

(c)                                  In
the event of the death of an Optionee on or prior to the expiry of an Option,
while in office and at a time when such Optionee has not fully exercised any
outstanding Options, such Options, to the extent then exercisable but
unexercised, shall be exercisable by such Optionee’s executors or personal
representatives within six (6) months after such Optionee’s death
notwithstanding the expiration date of the Option.  In the event such Options are not exercised
at the expiry of such six-month period, such Options shall expire.

 

 

(d)                                 In
the event of the total and permanent disability of an Optionee (as determined
by the Board of Directors), such Optionee may, within six months after the date
of such determination of disability or such other longer period as the Board of
Directors may approve, notwithstanding the expiration date of the Option,
exercise such part of the Option as is then exercisable.  Unless the Board of Directors otherwise
determines, in the event the Optionee has not exercised such Option at the
expiry of such six-month period, the Option shall expire.

 

(e)                                  Except
as provided in subparagraphs 7(c) and (d) above, if an Optionee
ceases to hold office as a director, officer, employee or area manager of the
Corporation during the Option Period, such part of the Option as is then exercisable
may be exercised by such Optionee for a period of thirty (30) days after such
Optionee ceases to hold such office or position or for such longer period as
the Board of Directors may approve, after which time the Option shall
terminate; provided, however, that in no event may any option be exercised
outside the Option Period.

 

8.             Non-assignability

 

                Each
Option shall be non-assignable and non-transferable and shall, subject to the
terms hereof, be exercisable only by the Optionee to whom it is granted.

 

9.             Rights of Optionees Before Exercise of Option

 

                The
Optionees shall not have any rights whatsoever as shareholders in respect of
the Shares covered by such Options until such Options are exercised and payment
for such Shares has been made.

 

10.           Exercise of Option

 

                Subject to the
provisions of the Plan, an Option may be exercised from time to time by
delivery to the Corporation at its registered office of a written notice of
exercise in the form attached hereto as Schedule A specifying the number of
Shares with respect to which the Option is being exercised, and accompanied by
payment in full of the purchase price for the Shares then being purchased and a
duly executed Stock Option Agreement.

 

11.           Share Capital Adjustments

 

                If
the outstanding Shares subject to this Plan are changed into or exchanged for a
different number or kind of shares or securities, as a result of one or more
amalgamations, reorganizations, re-capitalization, stock splits,
consolidations, stock 

 

 

dividends in the nature of stock splits or the like,
appropriate adjustments shall be made in the number and/or kind of shares or
securities for which the Options may thereafter be granted under this Plan and
for which Options then outstanding under this Plan may thereafter be exercised.  Any such adjustment in outstanding Options
shall be made without changing the aggregate exercise price applicable to the
unexercised portions of such Option.

 

                No
fractional securities shall be issued upon the exercise of an Option.  Accordingly, if as a result of any adjustment
under this paragraph, an Optionee would be entitled to a fractional security,
the Optionee shall have the right to acquire only the adjusted number of whole
securities and no payment or other adjustment will be made with respect to
fractional securities so disregarded.

 

12.           Liquidation, Dissolution or Winding-up

 

                In
the event that the Corporation proposes to liquidate, dissolve or wind-up, the
Corporation shall give written notice thereof to each Optionee and such
Optionee shall be entitled to exercise all then exercisable Options within
thirty (30) days of the giving of such notice, provided, however, that in no
event may such Option be exercised outside of the Option Period.  Upon the expiration of such thirty (30) day
period, all rights of Optionees to such Options or to exercise the same shall
terminate and cease to have any further force or effect, unless otherwise
determined by the Board of Directors.

 

13.           Change of Control

 

                Notwithstanding
the foregoing, in the event that at any date following the date hereof:

 

(a)                                  any
change in the ownership as of the date hereof, direct or indirect, of the
outstanding shares of the Corporation as a result of which an individual,
partnership, association, trust, unincorporated organization, (“person”) or
group of Persons, hold shares and/or other securities in excessive of the
number which, directly or following conversion or exercise thereof, will
entitle the holders thereof to cast 20% or more of the votes attaching all such
shares and/or other securities of the Corporation which may be cast to elect
the directors of the Corporation; or

 

(b)                                 the
sale, transfer or any manner of disposition of 50% or more of the assets of the
Corporation to an arm’s length Person;

 

and the Board of Directors recommends acceptance of
such offer to the Shareholders of the Corporation or, if the Board of Directors
has made no recommendation, the Shareholders have approved or accepted the
proposed transaction, then any Option outstanding hereunder, including Options
not then otherwise exercisable, shall become 

 

 

immediately exercisable upon the issuance of the
recommendation of the Board of Directors or the approval or acceptance of the
Shareholders, as the case may be.

 

14.       Amendment or
Discontinuation

 

                The Board reserves the right, in
its sole discretion, to amend, suspend or terminate the Plan or any portion
thereof at any time, in accordance with applicable legislation, without
obtaining the approval of shareholders. 
Any amendment to any provision of the Plan will be subject to any
required regulatory or shareholder approval.

 

Notwithstanding the
foregoing, the Corporation will be required to obtain the approval of the
shareholders of the Corporation for any amendment related to:

 

(a)                                  the
maximum number of Shares reserved for issuance under the Plan (and under any
other share compensation arrangements of the Corporation);

(b)                                 a
reduction in the exercise price for Options; and

(c)                                  an
extension to the term of Options.

 

 

SCHEDULE “A”

 

Stock Option Plan

 

Draxis Health Inc.

 

Election to Purchase

 

TO:         The Secretary of

                Draxis Health Inc.

 

                Pursuant to the
terms of the stock option granted to me on (the “Date of the Grant”), I hereby
elect to purchase
                    
common shares of Draxis Health Inc. which were the subject of such stock
option.  I understand that such purchase
is subject to all the terms and conditions of such stock option and of the
Draxis Health Inc. Stock Option Plan.

 

                Enclosed is a
certified cheque, bank draft or money order payable to Draxis Health Inc. in
the amount of $                    ,
the full amount of the exercise price for the number of common shares indicated
above.

 

	
   

  	
   

  	
   

  
	
  DATE

  	
   

  	
  (PRINT NAME)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (SIGNATURE)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]