Document:

Exhibit 10.16

 

PATHEON N.V.

2016 OMNIBUS INCENTIVE PLAN

 

Section 1.              
Purpose of Plan. 

 

The name of the Plan is the Patheon N.V. 2016
Omnibus Incentive Plan (the “Plan”). The purposes of the Plan are to provide an incentive to selected officers,
employees, non-employee directors, and consultants of the Company or its Affiliates (as hereinafter defined) whose contributions
are essential to the growth and success of the business of the Company and its Affiliates, in order to align the long-term financial
interests of such persons with those of the Company’s shareholders, strengthen the commitment of such persons to the Company
and its Affiliates and attract and retain competent and dedicated persons whose efforts will result in the long-term growth and
profitability of the Company and its Affiliates. To accomplish such purposes, the Plan provides that the Company may grant Options,
Share Appreciation Rights, Restricted Shares, Restricted Share Units, Share Bonuses, Other Share-Based Awards, Cash Awards or any
combination of the foregoing.

 

Section 2.              
Definitions. 

 

For purposes of the Plan, the following terms
shall be defined as set forth below:

 

“Administrator” means the
Board, or, if and to the extent the Board does not administer the Plan, the Committee in accordance with Section 3 hereof.

 

“Affiliate” means a Person
that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with,
the Person specified.

 

“Award” means any Option,
Share Appreciation Right, Restricted Shares, Restricted Share Unit, Share Bonus, Other Share-Based Award or Cash Award granted
under the Plan.

 

“Award Agreement” means
any written or electronic agreement, contract or other instrument or document evidencing an Award.

 

“Base Price” has the meaning
set forth in Section 8(b) hereof.

 

“Beneficial Owner” (or
any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.

 

“Board” means the Board
of Directors of the Company.

 

“Cash Award” means an Award
granted pursuant to Section 12 hereof.

 

“Cause” has the meaning
assigned to such term in any individual employment or severance agreement with the Participant unless otherwise set forth in the
Award Agreement, or if no such agreement defines “Cause,” Cause means the determination by the Company that one or
more of the following events has occurred: (i) the Participant has failed to perform his or her material duties, and such failure
has not been cured after a period of thirty (30) days’ notice from the Company; (ii) any reckless or grossly negligent act
by the Participant having the effect of injuring the interest, business, or reputation of the Company or any of its Affiliates
in any material respect; (iii) the Participant’s commission of any felony (including entry of a nolo contendere plea);
or (iv) any misappropriation or embezzlement of the property of the Company or any of its Affiliates.

 

    	 

    	 

    

 

“Change in Capitalization”
means any (1) merger, amalgamation, consolidation, reclassification, recapitalization, spin-off, spin-out, repurchase or other
reorganization or corporate transaction or event, (2) special or extraordinary dividend or other extraordinary distribution (whether
in the form of cash, Common Shares, or other property), share split, reverse share split, subdivision or consolidation, (3) combination
or exchange of shares, or (4) other change in corporate structure, which, in any such case, the Committee determines, in its sole
discretion, affects the Common Shares such that an adjustment pursuant to Section 5 hereof is appropriate.

 

“Change in Control” means
an event set forth in any one of the following paragraphs shall have occurred:

 

(1)              
any Person (other than JLL, DSM or their respective Affiliates) is or becomes the Beneficial Owner, directly or indirectly,
of securities of the Company (not including in the securities beneficially owned by such Person or any securities acquired directly
from the Company or any Affiliate thereof) representing 50% or more of the combined voting power of the Company’s then outstanding
securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (I) of
paragraph (3) below; or

 

(2)              
the following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board:
individuals who, on the date hereof, constitute the Board and any new director whose appointment or election by the Board or nomination
for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was
previously so approved or recommended (“Incumbent Directors”); or

 

(3)              
there is consummated a merger or amalgamation or consolidation of the Company or any direct or indirect Subsidiary with
any other corporation or other entity, other than (I) a merger or amalgamation or consolidation which results in (A) the voting
securities of the Company outstanding immediately prior to such merger or amalgamation or consolidation continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in
combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company
or any Subsidiary, 50% or more of the combined voting power of the securities of the Company or such surviving entity or any parent
thereof outstanding immediately after such merger or amalgamation or consolidation and (B) the Incumbent Directors continuing immediately
thereafter to represent at least a majority of the board of directors of the Company, the entity surviving such merger or amalgamation
or consolidation or, if the Company or the entity surviving such merger or amalgamation or consolidation is then a Subsidiary,
the ultimate parent thereof, or (II) a merger or amalgamation or consolidation effected to implement a recapitalization of the
Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company
or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities; or

 

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(4)              
the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated
an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than (A)
a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the
combined voting power of the voting securities of which are owned by shareholders of the Company following the completion of such
transaction in substantially the same proportions as their ownership of the Company immediately prior to such sale or (B) a
sale or disposition of all or substantially all of the Company’s assets immediately following which the individuals who comprise
the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets
are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof.

 

Notwithstanding the foregoing, (i) a Change
in Control shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions
immediately following which the holders of Common Shares immediately prior to such transaction or series of transactions continue
to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company
immediately following such transaction or series of transactions and (ii) for each Award that constitutes deferred compensation
under Section 409A of the Code, and to the extent required to avoid accelerated taxation and/or tax penalties under Section 409A
of the Code, a Change in Control shall be deemed to have occurred under the Plan with respect to such Award only if a change in
the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company
shall also be deemed to have occurred under Section 409A of the Code.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time, or any successor thereto.

 

“Committee” means any committee
or subcommittee the Board may appoint to administer the Plan. Subject to the discretion of the Board, the Committee shall be composed
entirely of individuals who meet the qualifications of (i) an “outside director” within the meaning of Section 162(m)
of the Code (but only to the extent necessary and desirable to maintain qualification of Awards as “performance-based compensation”
under Section 162(m) of the Code), (ii) a “non-employee director” within the meaning of Rule 16b-3 and (iii) any
other qualifications required by the applicable stock exchange on which the Common Shares are traded.  If at any time or to
any extent the Board shall not administer the Plan, then the functions of the Administrator specified in the Plan shall be exercised
by the Committee.  Except as otherwise provided in the Company’s articles of association, as amended from time to time,
any action of the Committee with respect to the administration of the Plan shall be taken by a majority vote at a meeting at which
a quorum is duly constituted or unanimous written consent of the Committee’s members.

 

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“Common Shares” means the
ordinary shares, par value €0.01 per share, in the share capital of the Company.

 

“Company” means Patheon
N.V., a Dutch public limited company (or any successor company, except as the term “Company” is used in the definition
of “Change in Control” above).

 

“Covered Employee” has
the meaning ascribed to the term “covered employee” set forth in Section 162(m) of the Code.

 

“Disability” has the meaning
assigned to such term in the Award Agreement or in any individual employment or severance agreement with the Participant for the
purpose of identifying disability as the reason for the termination of the Participant's employment or, if any such agreement does
not define “Disability,” Disability means, with respect to any Participant, that such Participant, as determined by
the Administrator in its sole discretion, is unable to perform the duties of his or her position for at least ninety (90) consecutive
business days as a result of physical or mental illness or injury; provided, that, if applicable to the Award, “Disability”
shall be determined in a manner consistent with Section 409A of the Code.

 

“DSM” means Koninklijke
DSM N.V.

 

“Effective Date” has the
meaning set forth in Section 20 hereof.

 

“Eligible Recipient” means
an officer, employee, non-employee director, independent contractor or consultant of the Company or any Affiliate of the Company
who has been selected as an eligible participant by the Administrator; provided, however, to the extent required
to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, an Eligible Recipient of an Option or a Share
Appreciation Right means an employee, non-employee director, independent contractor or consultant of the Company or any Affiliate
of the Company with respect to whom the Company is an “eligible issuer of service recipient stock” within the meaning
of Section 409A of the Code.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time.

 

“Exercise Price” means,
with respect to any Option, the per share price at which a holder of such Option may acquire Common Shares to be issued by the
Company or, if Common Shares held by the Company are used, to be transferred by the Company upon the exercise of such Option, as
set forth in the applicable Award Agreement.

 

“Fair Market Value” of
a Common Share or another security as of a particular date shall mean the fair market value as determined by the Administrator
in its sole discretion; provided, however, (i) if the Common Share or other security is admitted to trading on a
national securities exchange, the fair market value on any date shall be the closing sale price reported on the last preceding
date on which there was a sale of such share on such exchange, or (ii) if the Common Share or other security is then traded in
an over-the-counter market, the fair market value on any date shall be the average of the closing bid and asked prices for such
share in such over-the-counter market for the last preceding date on which there was a sale of such share in such market.

 

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“Free Standing Right” has
the meaning set forth in Section 8(a) hereof.

 

“Good Reason” has the meaning
assigned to such term in any individual employment or severance agreement with the Participant unless otherwise set forth in the
Award Agreement, provided that if no such agreement defines “Good Reason,” Good Reason and any provision of this Plan
that refers to Good Reason shall not be applicable to such Participant.

 

“ISO” means an Option intended
to be and designated as an incentive stock option within the meaning of Section 422 of the Code.

 

“JLL” means JLL Patheon
Co-Investment Fund, L.P., a Cayman Islands exempted limited partnership, and any of its Affiliates.

 

“Nonqualified Stock Option”
shall mean an Option that is not designated as an ISO.

 

“Option” means an option
to acquire Common Shares granted pursuant to Section 7 hereof. The term “Option” as used in the Plan includes the terms
“Nonqualified Stock Option” and “ISO.”

 

“Other Share-Based Award”
means an Award granted pursuant to Section 10 hereof.

 

“Participant” means any
Eligible Recipient selected by the Administrator, pursuant to the Administrator’s authority provided for in Section 3 below,
to receive grants of Awards, and, upon his or her death, his or her successors, heirs, executors and administrators, as the case
may be.

 

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“Performance Goals” means
performance goals based on one or more of the following criteria: (i) earnings, including one or more of operating income, net
operating income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, adjusted EBITDA,
economic earnings, or extraordinary or special items or book value per share (which may exclude nonrecurring items); (ii) pre-tax
income or after-tax income; (iii) earnings per share (basic or diluted); (iv) operating profit; (v) revenue, revenue growth or
rate of revenue growth; (vi) return on assets (gross or net), return on investment, return on capital, or return on equity; (vii)
returns on sales or revenues; (viii) operating expenses; (ix) share price appreciation; (x) cash flow, cash flow per share, free
cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of
cost of capital; (xi) implementation or completion of critical projects or processes; (xii) economic value created; (xiii) cumulative
earnings per share growth; (xiv) market value, enterprise growth or growth in market cap; (xv) operating margin or profit margin;
(xvi) share price or total shareholder return; (xvii) cost targets, reductions and savings, productivity and efficiencies; (xviii)
strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business
expansion, customer satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology,
and goals relating to acquisitions, divestitures, joint ventures and similar transactions, and budget comparisons; (xix) personal
professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation
of transactions, the development of long term business goals, formation of joint ventures, research or development collaborations,
and the completion of other corporate transactions; and (xx) any combination of, or a specified increase in, any of the foregoing.
Where applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criteria or
the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company
or any Affiliate thereof, or a division or strategic business unit of the Company or any Affiliate thereof, or may be applied to
the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined
by the Administrator. The Performance Goals may include a threshold level of performance below which no payment shall be made (or
no vesting shall occur), levels of performance at which specified payments shall be made (or specified vesting shall occur), and
a maximum level of performance above which no additional payment shall be made (or at which full vesting shall occur). Each of
the foregoing Performance Goals may be determined in accordance with generally accepted accounting principles (to the extent determined
by the Administrator to be desirable) and shall be subject to certification by the Administrator; provided, that, to the
extent permitted by Section 162(m) of the Code to the extent applicable, the Administrator shall have the authority to make equitable
adjustments to the Performance Goals in recognition of unusual or infrequently occurring events affecting the Company or any Affiliate
thereof or the financial statements of the Company or any Affiliate thereof, in response to changes in applicable laws or regulations,
or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence
or related to the disposal of a segment of a business or related to a change in accounting principles. Notwithstanding the foregoing,
the Committee shall take any actions pursuant to this paragraph to the extent necessary and desirable to maintain qualification
of Awards as performance-based compensation under Section 162(m) of the Code.

 

“Person” has the meaning
given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof.

 

“Plan” has the meaning
set forth in Section 1 hereof.

 

“Restricted Period” has
the meaning set forth in Section 9(a) hereof.

 

“Related Right” has the
meaning set forth in Section 8(a) hereof.

 

“Restricted Shares” means
Shares granted pursuant to Section 9 below subject to certain restrictions that lapse at the end of a specified period or periods.

 

“Restricted Share Unit”
means the right, granted pursuant to Section 9 below, to receive a Common Share or a cash payment equal to the Fair Market Value
of a Common Share, as determined by the Administrator in connection with the Award.

 

“Rule 16b-3” has the meaning
set forth in Section 3(a) hereof.

 

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“Securities Act” means
the Securities Act of 1933, as amended.

 

“Shares” means Common Shares
to be issued or, if Common Shares held by the Company are used, to be transferred by the Company, for the purpose of the Plan,
as adjusted pursuant to the Plan, and any successor (pursuant to a merger, amalgamation, consolidation or other reorganization)
security.

 

“Share Appreciation Right”
means the right to receive, upon exercise of the right, the applicable amounts as described in Section 8.

 

“Share Bonus” means a bonus
payable in fully vested Common Shares granted pursuant to Section 11 hereof.

 

“Subsidiary”
means, with respect to any Person, as of any date of determination, any other Person as to which such first Person owns or otherwise
controls, directly or indirectly, more than 50% of the voting shares or other similar interests or a sole general partner interest
or managing member or similar interest of such other Person.

 

“Transfer” has the meaning
set forth in Section 18 hereof.

 

Section 3.              
Administration.

 

(a)               
The Plan shall be administered by the Administrator and shall be administered in accordance with the requirements of Section
162(m) of the Code (but only to the extent necessary and desirable to maintain qualification of Awards as performance-based compensation
under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act (“Rule 16b-3”). 

 

(b)              
Pursuant to the terms of the Plan, the Administrator, subject, in the case of any Committee, to any restrictions on the
authority delegated to it by the Board, shall have the power and authority, without limitation:

 

(1)              
to select those Eligible Recipients who shall be Participants;

 

(2)              
to determine whether and to what extent Options, Share Appreciation Rights, Restricted Shares, Restricted Share Units, Share
Bonuses, Other Share-Based Awards, Cash Awards or a combination of any of the foregoing, are to be granted hereunder to Participants;

 

(3)              
to determine the number of Shares to be covered by each Award granted hereunder;

 

(4)              
 to determine the terms and conditions, not inconsistent with the terms of the Plan, of each Award granted hereunder (including,
but not limited to, (i) the restrictions applicable to Restricted Shares or Restricted Share Units and the conditions under which
restrictions applicable to such Restricted Shares or Restricted Share Units shall lapse, (ii) the performance goals and periods
applicable to Awards, (iii) the Exercise Price of each Option and the Base Price of each Share Appreciation Right, (iv) the vesting
schedule applicable to each Award, (v) the number of Shares or amount of cash or other property subject to each Award and (vi)
subject to the requirements of Section 409A of the Code (to the extent applicable), any amendments to the terms and conditions
of outstanding Awards, including, but not limited to, extending the exercise period of such Awards and accelerating the vesting
schedule of such Awards);

 

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(5)              
 to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all written instruments
evidencing Awards;

 

(6)              
to determine the Fair Market Value in accordance with the terms of the Plan;

 

(7)              
 to determine the duration and purpose of leaves of absence which may be granted to a Participant without constituting termination
of the Participant’s employment for purposes of Awards granted under the Plan;

 

(8)              
to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from time
to time deem advisable;

 

(9)              
to prescribe, amend and rescind rules and regulations relating to sub-plans established for the purpose of satisfying applicable
foreign laws or qualifying for favorable tax treatment under applicable foreign laws, which rules and regulations may be set forth
in an appendix or appendices to the Plan; and

 

(10)          
 to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement
relating thereto), and to otherwise supervise the administration of the Plan and to exercise all powers and authorities either
specifically granted under the Plan or necessary and advisable in the administration of the Plan.

 

(c)               
Subject to Section 5, neither the Board nor the Committee shall have the authority to reprice or cancel and regrant any
Award at a lower exercise, base or purchase price without first obtaining the approval of the Company’s shareholders.

 

(d)              
To the extent permitted by applicable law or the rules of any securities exchange or automated quotation system on which
the Shares are listed, quoted or traded, the Board or Committee may from time to time delegate to a committee of one or more members
of the Board or to one or more officers of the Company the authority to grant or amend Awards or to take other administrative actions
pursuant to this Section 3; provided, however, that in no event shall an officer of the Company be delegated the authority to grant
Awards to, or amend Awards held by, the following individuals: (a) individuals who are subject to Section 16 of the Exchange Act,
(b) Covered Employees with respect to Awards intended to constitute performance-based compensation under Section 162(m) of the
Code, or (c) officers of the Company (or directors) to whom authority to grant or amend Awards has been delegated hereunder; provided
further, that any delegation of administrative authority shall only be permitted to the extent it is permissible under Section
162(m) of the Code (to the extent applicable) and applicable securities laws or the rules of any securities exchange or automated
quotation system on which the Shares are listed, quoted or traded. Any delegation hereunder shall be subject to the restrictions
and limits that the Board or Committee specifies at the time of such delegation, and the Board may at any time rescind the authority
so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 3 shall serve in such capacity
at the pleasure of the Board and the Committee.

 

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(e)               
All decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on
all persons, including the Company and the Participants. The exercise of any right or discretion by the Company is in its absolute
discretion and is not subject to any implied restrictions. Any implied contractual duty of the Company to act in good faith or
reasonably is expressly excluded from forming part of the Agreement.

 

(f)               
No member of the Board or the Committee, nor any officer or employee of the Company or any Subsidiary thereof acting on
behalf of the Board or the Committee, shall be personally liable for any action, omission, determination, or interpretation taken
or made in good faith with respect to the Plan, and all members of the Board or the Committee and each and any officer or employee
of the Company and of any Subsidiary thereof acting on their behalf shall, to the maximum extent permitted by law, be fully indemnified
and protected by the Company in respect of any such action, omission, determination or interpretation.

 

Section 4.              
Shares Reserved for Issuance; Certain Limitations.

 

(a)               
The maximum number of Common Shares to be issued or, to the extent Common Shares held by the Company are used, to be transferred
by the Company, for the purpose of the Plan shall be equal to (subject to adjustment as provided by Section 5) [ ] Common Shares.
In accordance with the rules promulgated by the applicable national securities exchange on which the Common Shares are traded,
the maximum number of Common Shares set forth in this Section 4(a) excludes Common Shares granted in connection with a transaction
between the Company or an Affiliate of the Company and another entity or business in substitution or exchange for, or conversion
adjustment, assumption or replacement of, awards previously granted by such other entity to any individuals who have become Eligible
Recipients as a result of such transaction.

 

(b)              
Subject to adjustment as provided by Section 5, the maximum value of Awards granted to a non-employee director in any consecutive
twelve month period will be USD$400,000; provided that this maximum value shall exclude the value of cash voluntarily deferred
by a non-employee director in exchange for Shares.

 

(c)               
Notwithstanding anything in this Plan to the contrary, and subject to adjustment as provided by Section 5, from and after
such time, if any, as the Plan is subject to Section 162(m) of the Code:

 

(1)              
No individual (including an individual who is likely to be a Covered Employee) will be granted Options or Share Appreciation
Rights for more than the number of Common Shares reserved under Section 4(a) during any calendar year.

 

(2)              
No individual who is likely to be a Covered Employee with respect to a calendar year will be granted (A) Restricted Shares,
Restricted Share Units, a Share Bonus or Other Share-Based Awards for more than the number of Common Shares reserved under Section
4(a) during any calendar year or (B) a Cash Award in cash in excess of USD$5 million during any calendar year.

 

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(d)              
Shares issued under the Plan may, in whole or in part, be authorized but unissued Shares or Shares that shall have been
or may be reacquired by the Company in the open market, in private transactions or otherwise. If any Shares subject to an Award
are forfeited, cancelled, exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of shares
to the Participant, the Shares with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange,
surrender, termination or expiration, again be available for Awards under the Plan. Notwithstanding the foregoing, Shares that
are exchanged by a Participant or withheld by the Company as full or partial payment in connection with any Awards under the Plan,
as well as any Shares exchanged by a Participant or withheld by the Company or any Subsidiary to satisfy the tax withholding obligations
related to any Awards under the Plan, shall not be available for subsequent Awards under the Plan, and notwithstanding that an
Award is settled by the delivery of a net number of Common Shares, the full number of Common Shares underlying such Award shall
not be available for subsequent Awards under the Plan. Upon the exercise of any Award granted in tandem with any other Awards,
such related Awards shall be cancelled to the extent of the number of Shares as to which the Award is exercised and, notwithstanding
the foregoing, such number of shares shall no longer be available for Awards under the Plan. In addition, (i) to the extent an
Award is denominated in Common Shares, but paid or settled in cash, the number of Common Shares with respect to which such payment
or settlement is made shall again be available for grants of Awards pursuant to the Plan and (ii) Common Shares underlying Awards
that can only be settled in cash shall not be counted against the aggregate number of Common Shares available for Awards under
the Plan.

 

Section 5.              
Equitable Adjustments.

 

(a)               
In the event of any Change in Capitalization, an equitable substitution or proportionate adjustment shall be made, in each
case, as may be determined by the Administrator, in its sole discretion, in (i) the aggregate number of Common Shares reserved
for issuance under the Plan and the maximum number of Common Shares or cash that may be subject to Awards granted to any Participant
in any calendar year, (ii) the kind and number of securities subject to, and the Exercise Price or Base Price of, any outstanding
Options and Share Appreciation Rights granted under the Plan, and (iii) the kind, number and purchase price of Common Shares, or
the amount of cash or amount or type of other property, subject to outstanding Restricted Shares, Restricted Share Units, Share
Bonuses and Other Share-Based Awards granted under the Plan; provided, however, that any fractional shares resulting
from the adjustment shall be eliminated. Such other equitable substitutions or adjustments shall be made as may be determined by
the Administrator, in its sole discretion. Except to the extent determined by the Administrator, any adjustments to ISOs under
this Section 5 shall be made only to the extent not constituting a “modification” within the meaning of Section 424(h)(3)
of the Code.

 

(b)              
Without limiting the generality of the foregoing, in connection with a Change in Capitalization, the Administrator may provide,
in its sole discretion, for the cancellation of any outstanding Award in exchange for payment in cash or other property having
an aggregate Fair Market Value equal to the Fair Market Value of the Common Shares, cash or other property covered by such Award,
reduced by the aggregate Exercise Price or Base Price thereof, if any; provided, however, that if the Exercise Price
or Base Price of any outstanding Award is equal to or greater than the Fair Market Value of the Common Shares, cash or other property
covered by such Award, the Administrator may cancel such Award without the payment of any consideration to the Participant.

 

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(c)               
The determinations made by the Administrator or the Board, as applicable, pursuant to this Section 5 shall be final, binding
and conclusive.

 

Section 6.              
Eligibility.

 

The Participants under the Plan shall be selected
from time to time by the Administrator, in its sole discretion, from those individuals that qualify as Eligible Recipients.

 

Section 7.              
Options.

 

(a)               
General. Options granted under the Plan shall be designated as Nonqualified Stock Options or ISOs. Each Participant
who is granted an Option shall enter into an Award Agreement with the Company, containing such terms and conditions as the Administrator
shall determine, in its sole discretion, which Award Agreement shall set forth, among other things, the Exercise Price of the Option,
the term of the Option and provisions regarding exercisability of the Option, and whether the Option is intended to be an ISO or
a Nonqualified Stock Option (and in the event the Award Agreement has no such designation, the Option shall be a Nonqualified Stock
Option). The provisions of each Option need not be the same with respect to each Participant. More than one Option may be granted
to the same Participant and be outstanding concurrently hereunder. Options granted under the Plan shall be subject to the terms
and conditions set forth in this Section 7 and shall contain such additional terms and conditions, not inconsistent with the terms
of the Plan, as the Administrator shall deem desirable and set forth in the applicable Award Agreement.

 

(b)              
Exercise Price. The Exercise Price of Shares purchasable under an Option shall be determined by the Administrator
in its sole discretion at the time of grant, but in no event shall the exercise price of an Option be less than one hundred percent
(100%) of the Fair Market Value of the related Common Shares on the date of grant.

 

(c)               
Option Term. The maximum term of each Option shall be fixed by the Administrator, but no Option shall be exercisable
more than ten (10) years after the date such Option is granted. Each Option’s term is subject to earlier expiration pursuant
to the applicable provisions in the Plan and the Award Agreement. Notwithstanding the foregoing, the Administrator shall have the
authority to accelerate the exercisability of any outstanding Option at such time and under such circumstances as the Administrator,
in its sole discretion, deems appropriate.

 

(d)              
Exercisability. Each Option shall be exercisable at such time or times and subject to such terms and conditions,
including the attainment of pre-established performance goals, as shall be determined by the Administrator in the applicable Award
Agreement. The Administrator may also provide that any Option shall be exercisable only in installments, and the Administrator
may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may
determine in its sole discretion. Notwithstanding anything to the contrary contained herein, an Option may not be exercised for
a fraction of a share.

 

    	11

    	 

    

 

(e)               
Method of Exercise. Options may be exercised in whole or in part by giving written notice of exercise to the Company
(or by other methods authorized by the Administrator) specifying the number of whole Shares to be purchased, accompanied by payment
in full of the aggregate Exercise Price of the Shares so purchased in cash or its equivalent, as determined by the Administrator. 
As determined by the Administrator, in its sole discretion, with respect to any Option or category of Options, payment in whole
or in part may also be made (i) by means of consideration received under any cashless exercise procedure approved by the Administrator
(including the withholding of Shares otherwise issuable or transferrable upon exercise whereby, to the extent required to pay up
newly issued Shares to the Participant, the claim of the Participant to receive Shares otherwise issuable upon exercise will be
set-off against the claim of the Company to pay up newly issued Shares), (ii) in the form of unrestricted Shares already owned
by the Participant which have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares
as to which such Option shall be exercised (whereby, to the extent required to pay up newly issued Shares to the Participant, the
claim of the Participant to receive Shares otherwise issuable upon exercise will be set-off against the claim of the Company to
pay up newly issued Shares), (iii) any other form of consideration approved by the Administrator and permitted by applicable
law or (iv) any combination of the foregoing.

 

(f)               
ISOs.

 

(1)              
The terms and conditions of ISOs granted hereunder shall be subject to the provisions of Section 422 of the Code and the
terms, conditions, limitations and administrative procedures established by the Administrator from time to time in accordance with
the Plan. At the discretion of the Administrator, ISOs may be granted only to an employee of the Company, its “parent corporation”
(as such term is defined in Section 424(e) of the Code) or a Subsidiary.

 

(2)              
ISO Grants to 10% Shareholders. Notwithstanding anything to the contrary in the Plan, if an ISO is granted to a Participant
who owns shares representing more than ten percent (10%) of the voting power of all classes of shares of the Company, its “parent
corporation” (as such term is defined in Section 424(e) of the Code) or a Subsidiary, the term of the ISO shall not exceed
five (5) years from the time of grant of such ISO and the Exercise Price shall be at least one hundred and ten percent (110%) of
the Fair Market Value of the Shares on the date of grant.

 

(3)              
$100,000 Per Year Limitation For ISOs. To the extent the aggregate Fair Market Value (determined on the date of grant)
of the Shares for which ISOs are exercisable for the first time by any Participant during any calendar year (under all plans of
the Company) exceeds $100,000, such excess ISOs shall be treated as Nonqualified Stock Options.

 

    	12

    	 

    

 

(4)              
Disqualifying Dispositions. Each Participant awarded an ISO under the Plan shall notify the Company in writing immediately
after the date he or she makes a “disqualifying disposition” of any Share acquired pursuant to the exercise of such
ISO. A “disqualifying disposition” is any disposition (including any sale) of such Shares before the later of (i) two
years after the date of grant of the ISO and (ii) one year after the date the Participant acquired the Shares by exercising the
ISO. The Company may, if determined by the Administrator and in accordance with procedures established by it, retain possession
of any Shares acquired pursuant to the exercise of an ISO as agent for the applicable Participant until the end of the period described
in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such shares.

 

(g)              
Rights as Shareholder. A Participant shall have no rights to dividends or distributions or any other rights of a
shareholder with respect to the Shares subject to an Option until the Participant has given written notice of the exercise thereof,
has paid in full for such Shares and has satisfied the requirements of Section 17 hereof.

 

(h)              
Termination of Employment or Service. In the event of the termination of employment or service with the Company and
all Affiliates thereof of a Participant who has been granted one or more Options, such Options shall be exercisable at such time
or times and subject to such terms and conditions as set forth in the Award Agreement.

 

(i)                
Other Change in Employment Status. An Option shall be affected, both with regard to vesting schedule and termination,
by leaves of absence, changes from full-time to part-time employment, partial disability or other changes in the employment status
of a Participant, in the discretion of the Administrator.

 

Section 8.              
Share Appreciation Rights.

 

(a)               
General. Share Appreciation Rights may be granted either alone (“Free Standing Rights”) or in
conjunction with all or part of any Option granted under the Plan (“Related Rights”). Related Rights may be
granted either at or after the time of the grant of such Option. The Administrator shall determine the Eligible Recipients to whom,
and the time or times at which, grants of Share Appreciation Rights shall be made, the number of Shares to be awarded, the Base
Price, and all other conditions of Share Appreciation Rights. Notwithstanding the foregoing, no Related Right may be granted for
more Shares than are subject to the Option to which it relates. The provisions of Share Appreciation Rights need not be the same
with respect to each Participant. Share Appreciation Rights granted under the Plan shall be subject to the following terms and
conditions set forth in this Section 8 and shall contain such additional terms and conditions, not inconsistent with the terms
of the Plan, as the Administrator shall deem desirable, as set forth in the applicable Award Agreement.

 

(b)              
Base Price. Each Share Appreciation Right shall be granted with a base price that is not less than one hundred percent
(100%) of the Fair Market Value of the related Common Shares on the date of grant (such amount, the “Base Price”).

 

(c)               
Awards; Rights as Shareholder. A Participant shall have no rights to dividends or any other rights of a shareholder
with respect to the Common Shares, if any, subject to a Share Appreciation Right until the Participant has given written notice
of the exercise thereof and has satisfied the requirements of Section 17 hereof.

 

    	13

    	 

    

 

(d)              
Exercisability.

 

(1)              
Share Appreciation Rights that are Free Standing Rights shall be exercisable at such time or times and subject to such terms
and conditions as shall be determined by the Administrator in the applicable Award Agreement.

 

(2)              
Share Appreciation Rights that are Related Rights shall be exercisable only at such time or times and to the extent that
the Options to which they relate shall be exercisable in accordance with the provisions of Section 7 hereof and this Section 8
of the Plan.

 

(e)               
Consideration Upon Exercise.

 

(1)              
Upon the exercise of a Free Standing Right, the Participant shall be entitled to receive up to, but not more than, that
number of Shares equal in value to (i) the excess of the Fair Market Value as of the date of exercise over the Base Price per share
specified in the Free Standing Right, multiplied by (ii) the number of Shares in respect of which the Free Standing Right is being
exercised.

 

(2)              
A Related Right may be exercised by a Participant by surrendering the applicable portion of the related Option. Upon such
exercise and surrender, the Participant shall be entitled to receive up to, but not more than, that number of Shares equal in value
to (i) the excess of the Fair Market Value as of the date of exercise over the Exercise Price specified in the related Option,
multiplied by (ii) the number of Shares in respect of which the Related Right is being exercised. Options which have been so surrendered,
in whole or in part, shall no longer be exercisable to the extent the Related Rights have been so exercised.

 

(3)              
Notwithstanding the foregoing, the Administrator may determine to settle the exercise of a Share Appreciation Right in cash
(or in any combination of Shares and cash).

 

(f)               
Termination of Employment or Service; Other Change in Employment Status.

 

(1)              
In the event of the termination of employment or service with the Company and all Affiliates thereof of a Participant who
has been granted one or more Free Standing Rights, such rights shall be exercisable at such time or times and subject to such terms
and conditions as set forth in the Award Agreement.

 

(2)              
In the event of the termination of employment or service with the Company and all Affiliates thereof of a Participant who
has been granted one or more Related Rights, such rights shall be exercisable at such time or times and subject to such terms and
conditions as set forth in the related Options.

 

(3)              
A Share Appreciation Right shall be affected, both with regard to vesting schedule and termination, by leaves of absence,
changes from full-time to part-time employment, partial disability or other changes in the employment status of a Participant,
in the discretion of the Administrator.

 

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(g)              
Term.

 

(1)              
The term of each Free Standing Right shall be fixed by the Administrator, but no Free Standing Right shall be exercisable
more than ten (10) years after the date such right is granted.

 

(2)              
The term of each Related Right shall be the term of the Option to which it relates, but no Related Right shall be exercisable
more than ten (10) years after the date such right is granted.

 

Section 9.              
Restricted Shares and Restricted Share Units.

 

(a)               
General. Restricted Shares and Restricted Share Units may be issued either alone or in addition to other awards granted
under the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times at which, Restricted Shares
or Restricted Share Units shall be made; the number of Shares to be awarded; the price, if any, to be paid by the Participant for
the acquisition of Restricted Shares or Restricted Share Units; the period of time prior to which Restricted Shares or Restricted
Share Units become vested and free of restrictions on Transfer (the “Restricted Period”); the performance objectives
(if any); and all other conditions of the Restricted Shares and Restricted Share Units. If the restrictions, performance objectives
and/or conditions established by the Administrator are not attained, a Participant shall forfeit his or her Restricted Shares or
Restricted Share Units, in accordance with the terms of the grant. The provisions of Restricted Shares or Restricted Share Units
need not be the same with respect to each Participant.

 

(b)              
Awards and Certificates.

 

(1)              
Except as otherwise provided below in Section 9(b)(3), (i) each Participant who is granted an award of Restricted Shares
may, in the Company’s sole discretion, be issued a share certificate in respect of such Restricted Shares; and (ii) any such
certificate so issued shall be registered in the name of the Participant, and shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to any such Award. The Company may require that the share certificates, if any,
evidencing Restricted Shares be held in the custody of the Company until the restrictions thereon shall have lapsed, and that,
as a condition of any award of Restricted Shares, the Participant shall have delivered a share transfer form, endorsed in blank,
relating to the Shares covered by such award. Certificates for unrestricted Common Shares may, in the Company’s sole discretion,
be delivered to the Participant only after the Restricted Period has expired without forfeiture in respect of such Restricted Shares.

 

(2)              
With respect to Restricted Share Units, at the expiration of the Restricted Period, share certificates in respect of the
Common Shares underlying such Restricted Share Units may, in the Company’s sole discretion, be delivered to the Participant,
or his legal representative, in a number equal to the number of Common Shares underlying the Restricted Share Units.

 

(3)              
Notwithstanding anything in the Plan to the contrary, any Restricted Shares or Restricted Share Units (at the expiration
of the Restricted Period) may, in the Company’s sole discretion, be issued in uncertificated form.

 

    	15

    	 

    

 

(4)              
Further, notwithstanding anything in the Plan to the contrary, with respect to Restricted Share Units, at the expiration
of the Restricted Period, Shares shall promptly be issued to the Participant, unless otherwise deferred in accordance with procedures
established by the Company in accordance with Section 409A of the Code, and such issuance shall be made no later than March 15th
of the calendar year following the year of vesting or within other such period as is required to avoid accelerated taxation and/or
tax penalties under Section 409A of the Code.

 

(c)               
Restrictions and Conditions. The Restricted Shares and Restricted Share Units granted pursuant to this Section 9
shall be subject to the following restrictions and conditions and any additional restrictions or conditions as determined by the
Administrator at the time of grant or, subject to Section 409A of the Code where applicable, thereafter:

 

(1)              
The Administrator may, in its sole discretion, provide for the lapse of restrictions in installments and may accelerate
or waive such restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine,
in its sole discretion, including, but not limited to, the attainment of certain performance related goals, the Participant’s
termination of employment or service as an officer, director, independent contractor or consultant to the Company or any Affiliate
thereof, or the Participant’s death or Disability; provided, however, that this sentence shall not apply to
any Award which is intended to qualify as performance-based compensation under Section 162(m) of the Code. Notwithstanding the
foregoing, upon a Change in Control, the outstanding Awards shall be subject to Section 14 hereof.

 

(2)              
Except as provided in the applicable Award Agreement, the Participant shall generally have the rights of a shareholder of
the Company with respect to Restricted Shares during the Restricted Period, including the right to vote such shares and to receive
any dividends declared with respect to such shares. The Participant shall generally not have the rights of a shareholder with respect
to Common Shares subject to Restricted Share Units during the Restricted Period; provided, however, that, subject
to Section 409A of the Code, an amount equal to dividends declared during the Restricted Period with respect to the number of Common
Shares covered by Restricted Share Units may, to the extent set forth in an Award Agreement, be provided to the Participant. Any
dividend or dividend equivalent awarded hereunder shall be subject to the same restrictions, conditions and risks of forfeiture
as the underlying Award.

 

(d)              
Termination of Employment or Service; Other Change in Employment Status.

 

(1)              
The rights of Participants granted Restricted Shares or Restricted Share Units upon termination of employment or service
with the Company and all Affiliates thereof for any reason during the Restricted Period shall be set forth in the Award Agreement.

 

(2)              
Restricted Shares and Restricted Share Units shall be affected, both with regard to vesting schedule and termination, by
leaves of absence, changes from full-time to part-time employment, partial disability or other changes in the employment status
of a Participant, in the discretion of the Administrator.

 

    	16

    	 

    

 

Section 10.          
Other Share-Based Awards. 

 

Other forms of Awards valued in whole or in
part by reference to, or otherwise based on, Common Shares, including but not limited to dividend equivalents, may be granted either
alone or in addition to other Awards (other than in connection with Options or Share Appreciation Rights) under the Plan. Any dividend
or dividend equivalent awarded hereunder shall be subject to the same restrictions, conditions and risks of forfeiture as the underlying
Award. Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the individuals
to whom and the time or times at which such Other Share-Based Awards shall be granted, the number of Common Shares to be granted
pursuant to such Other Share-Based Awards, or the manner in which such Other Share-Based Awards shall be settled (e.g., in Common
Shares, cash or other property), or the conditions to the vesting and/or payment or settlement of such Other Share-Based Awards
(which may include, but not be limited to, achievement of performance criteria) and all other terms and conditions of such Other
Share-Based Awards.

 

Section 11.          
Share Bonuses.

 

In the event that the Administrator grants
a Share Bonus, the Shares constituting such Share Bonus shall, as determined by the Administrator, be evidenced in uncertificated
form or by a book entry record or a certificate issued in the name of the Participant to whom such grant was made and delivered
to such Participant as soon as practicable after the date on which such Share Bonus is payable.

 

Section 12.          
Cash Awards.  

 

The Administrator may grant awards that are
payable solely in cash, as deemed by the Administrator to be consistent with the purposes of the Plan, and such Cash Awards shall
be subject to the terms, conditions, restrictions and limitations determined by the Administrator, in its sole discretion, from
time to time. Cash Awards may be granted with value and payment contingent upon the achievement of performance criteria. 

 

Section 13.          
Special Provisions Regarding Certain Awards. 

 

The Administrator may make Awards hereunder
to Covered Employees (or to individuals whom the Administrator believes may become Covered Employees) that are intended to qualify
as performance-based compensation under Section 162(m) of the Code. The exercisability and/or payment of such Awards may, to the
extent required to qualify as performance-based compensation under Section 162(m) of the Code, be subject to the achievement of
performance criteria based upon one or more Performance Goals and to certification of such achievement in writing by the Committee.
The Committee may in its discretion reduce the amount of such Awards that would otherwise become exercisable and/or payable upon
achievement of such Performance Goals and the certification in writing of such achievement, but may not increase such amounts.
Any such Performance Goals shall be established in writing by the Committee not later than the time period prescribed under Section
162(m) of the Code and the regulations thereunder. Notwithstanding anything set forth in the Plan to contrary, all provisions of
such Awards which are intended to qualify as performance-based compensation under Section 162(m) of the Code shall be construed
in a manner to so comply.

 

    	17

    	 

    

 

Section 14.          
Change in Control Provisions.

 

Unless otherwise determined by the Administrator
and evidenced in an Award Agreement, the following provisions shall apply to Awards granted hereunder.

 

(a)               
Assumption/Substitution of Awards. With respect to each outstanding Award that is assumed or substituted in connection
with a Change in Control, in the event that (1) a Change in Control occurs and (2) during the twelve (12) month period following
such Change in Control a Participant’s employment or service is terminated without Cause by the Company, its successor or
any Affiliate or the Participant resigns from employment or service from the Company, its successor or any Affiliate with Good
Reason, then:

 

(1)              
Any and all Options and Stock Appreciation Rights shall become fully vested and exercisable;

 

(2)              
Any and all Restricted Shares, Restricted Share Units, Share Bonuses, Other Share-Based Awards or Cash Awards shall become
fully vested and all restrictions, payment conditions and forfeiture conditions applicable to each such Award shall lapse and be
settled as soon as reasonable practicable, but in no event later than ten (10) days following such termination of employment; and

 

(3)              
Notwithstanding anything to the contrary, if the Change in Control event does not constitute a change in ownership or effective
control of the Company or a change in ownership of a substantial portion of the assets of the Company under Section 409A of the
Code, and if the Company determines any Award constitutes deferred compensation subject to Section 409A of the Code, then the vesting
of such Award shall be accelerated as of the date of termination of employment, but the Company shall pay such Award on its scheduled
payment date (which may be a “separation from service” within the meaning of Section 409A of the Code), but in no event
more than 90 days following the scheduled payment date.

 

(b)              
Non-Assumption/Substitution of Awards. With respect to each outstanding Award that is not assumed or substituted in connection
with a Change in Control, immediately upon the occurrence of the Change in Control:

 

(1)              
Any and all Options and Stock Appreciation Rights shall become fully vested and exercisable;

 

(2)              
Any and all Restricted Shares, Restricted Share Units, Share Bonuses, Other Share-Based Awards or Cash Awards shall become
fully vested and all restrictions, payment conditions and forfeiture conditions applicable to each such Award shall lapse and be
settled as soon as reasonable practicable, but in no event later than ten (10) days following the Change in Control; and

 

    	18

    	 

    

 

(3)              
Notwithstanding anything to the contrary, if the Company determines any Award constitutes deferred compensation subject
to Section 409A of the Code, then to the extent required in order to avoid accelerated taxation and/or tax penalties under Section
409A of the Code, the vesting of such Award shall be accelerated as of the effective date of the Change in Control in accordance
with this Section 14, but the Company shall pay such Award on its scheduled payment date, but in no event more than
90 days following the scheduled payment date.

 

(c)               
Assumed/Substituted. For purposes of this Section 14, an Award shall be considered assumed or substituted for if,
following the Change in Control, the Award is of comparable value and remains subject to the same terms and conditions that were
applicable to the Award immediately prior to the Change in Control except that, if an Award that relates to Shares shall instead
relate to the common stock of the acquiring or ultimate parent entity.

 

(d)              
Cashout of Awards. Notwithstanding any other provision of the Plan, in the event of a Change in Control, except as
would otherwise result in adverse tax consequences under Section 409A of the Code, the Administrator may, in its discretion, provide
that each Award shall, immediately upon the occurrence of a Change in Control, be cancelled in exchange for a payment in cash or
securities in an amount equal to (i) the excess (if any) of the consideration paid per Share in the Change in Control over the
exercise or purchase price per Share subject to the Award multiplied by (ii) the number of Shares granted under the Award. Without
limiting the generality of the foregoing, in the event that the consideration paid per Share in the Change in Control is greater
than or equal to the exercise or purchase price per Share subject to the Award, then the Administrator may, in its discretion,
cancel such Award without any consideration upon the occurrence of a Change in Control.

 

Section 15.          
Amendment and Termination.

 

The Board may amend, alter or terminate the
Plan, but no amendment, alteration, or termination shall be made that would impair the rights of a Participant under any Award
theretofore granted without such Participant’s consent. Unless the Board determines otherwise, the Board shall obtain approval
of the Company’s shareholders for any amendment to the Plan that would require such approval in order to satisfy the requirements
of Section 162(m) of the Code (but only to the extent necessary and desirable to maintain qualification of Awards as performance-based
compensation under Section 162(m) of the Code), any rules of the stock exchange on which the Common Shares are traded or other
applicable law. The Administrator may amend the terms of any Award theretofore granted, prospectively or retroactively, but, subject
to Section 5 of the Plan and the immediately preceding sentence, no such amendment shall impair the rights of any Participant without
his or her consent.

 

Section 16.          
Unfunded Status of Plan.

 

The Plan is intended to constitute an “unfunded”
plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general creditor of the Company.

 

    	19

    	 

    

 

Section 17.          
Withholding Taxes.

 

Each Participant shall, no later than the
date as of which the value of an Award first becomes includible in the gross income of such Participant for purposes of applicable
taxes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, such applicable taxes required
by law to be withheld with respect to the Award. The obligations of the Company under the Plan shall be conditional on the making
of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment of any kind otherwise due to such Participant. Whenever cash is to be paid pursuant to an Award, the Company shall
have the right to deduct therefrom an amount sufficient to satisfy any applicable withholding tax requirements related thereto.
Whenever Shares or property other than cash are to be delivered pursuant to an Award, the Company shall have the right to require
the Participant to remit to the Company in cash an amount sufficient to satisfy any related taxes to be withheld and applied to
the tax obligations; provided, that, with the approval of the Administrator, a Participant may satisfy the foregoing requirement
by either (i) electing to have the Company withhold from delivery of Shares or other property, as applicable, or (ii) by delivering
already owned unrestricted Common Shares, in each case, up to the employee’s minimum required tax withholding rate or such
other rate that will not cause adverse accounting consequences for the Company and is permitted under applicable withholding rules
promulgated by the Internal Revenue Service or another applicable governmental entity; provided that to the extent required to
pay up newly issued Shares to the Participant, the claim of the Participant to receive Shares otherwise issuable will be set-off
against the claim of the Company to pay up newly issued Shares. Such already owned and unrestricted Common Shares shall be valued
at their Fair Market Value on the date on which the amount of tax to be withheld is determined and any fractional share amounts
resulting therefrom shall be settled in cash. Such an election may be made with respect to all or any portion of the Shares to
be delivered pursuant to an award. The Company may also use any other method of obtaining the necessary payment or proceeds, as
permitted by law, to satisfy its withholding obligation with respect to any Award.

 

Section 18.          
Transfer of Awards. 

 

Until such time as the Awards are fully vested
and/or exercisable in accordance with the Plan or an Award Agreement, no purported sale, assignment, mortgage, hypothecation, transfer,
charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest
in or lien on, any Award or any agreement or commitment to do any of the foregoing (each, a “Transfer”)
by any holder thereof in violation of the provisions of the Plan or an Award Agreement will be valid. Any purported Transfer of
an Award or any economic benefit or interest therein in violation of the Plan or an Award Agreement shall be null and void ab
initio, and shall not create any obligation or liability of the Company, and any Person purportedly acquiring any Award or
any economic benefit or interest therein transferred in violation of the Plan or an Award Agreement shall not be entitled to be
recognized as a holder of any Common Shares or other property underlying such Award. Notwithstanding the foregoing, the Administrator
may, in its sole discretion, permit (on such terms, conditions and limitations as it may establish) Awards (other than ISOs) and/or
Shares issued in connection with an Award that are subject to restrictions on transferability, to be transferred to a member of
a Participant’s immediate family or to a trust or similar vehicle for the benefit of a Participant’s immediate family
members. Unless otherwise determined by the Administrator, an Option or Share Appreciation Right may be exercised, during the lifetime
of the Participant, only by the Participant or, during any period during which the Participant is under a legal disability, by
the Participant’s guardian or legal representative.

 

    	20

    	 

    

 

Section 19.          
Continued Employment or Service; Termination of Employment or Service

 

(a)               
The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued employment or service with
the Company or any Affiliate thereof, as the case may be, nor shall it interfere in any way with the right of the Company or any
Affiliate thereof to terminate the employment or service of any of its Eligible Recipients at any time. The Plan and the Award
Agreements thereunder do not form part of a Participant’s contract of employment.

 

(b)              
Except as otherwise expressly provided for by the Company or as required by applicable law, for purposes of Awards granted
under the Plan, a Participant’s date of termination of employment or service shall be the last day on which the Participant
performs services for the Company and any of its Affiliates (other than as a result of a leave approved by the Participant`s employer
or authorized under applicable law), irrespective of any period of statutory, contractual or reasonable notice of termination of
employment or any period of suspension, garden leave, salary continuance or deemed employment, whether such date is selected unilaterally
by the employer or with the agreement of the Participant, and whether or not advance notice is given.

 

Section 20.          
Effective Date.

 

The Plan became effective upon adoption by
the Board on [ ], 2016 (the “Effective Date”), subject to requisite approval of shareholders of the Company.

 

Section 21.          
Term of Plan.

 

No award shall be granted pursuant to the
Plan on or after the tenth anniversary of the Effective Date, but awards theretofore granted may extend beyond that date.

 

Section 22.          
Securities Matters and Regulations.

 

(a)               
Notwithstanding anything herein to the contrary, the obligation of the Company to sell or deliver Common Shares with respect
to any Award granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal
and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate
by the Administrator. The Administrator may require, as a condition of the issuance and delivery of certificates evidencing Common
Shares pursuant to the terms hereof, that the recipient of such shares make such agreements and representations, and that such
certificates bear such legends, as the Administrator, in its sole discretion, deems necessary or advisable.

 

(b)              
Each Award is subject to the requirement that, if at any time the Administrator determines that the listing, registration
or qualification of Common Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection
with, the grant of an Award or the issuance of Common Shares, no such Award shall be granted or payment made or Common Shares issued,
in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any
conditions not acceptable to the Administrator.

 

    	21

    	 

    

 

(c)               
In the event that the disposition of Common Shares acquired pursuant to the Plan is not covered by a then current registration
statement under the Securities Act and is not otherwise exempt from such registration, such Common Shares shall be restricted against
transfer to the extent required by the Securities Act or regulations thereunder, and the Administrator may require a Participant
receiving Common Shares pursuant to the Plan, as a condition precedent to receipt of such Common Shares, to represent to the Company
in writing that the Common Shares acquired by such Participant is acquired for investment only and not with a view to distribution.

 

Section 23.          
Notification of Election Under Section 83(b) of the Code. 

 

If any Participant shall, in connection with
the acquisition of Common Shares under the Plan, make the election permitted under Section 83(b) of the Code, such Participant
shall notify the Company of such election within ten (10) days after filing notice of the election with the Internal Revenue Service.

 

Section 24.          
No Fractional Shares. 

 

No fractional Common Shares shall be issued
or delivered pursuant to the Plan. The Administrator shall determine whether cash, other Awards, or other property shall be issued
or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise
eliminated.

 

Section 25.          
Beneficiary. 

 

A Participant may file with the Administrator
a written designation of a beneficiary on such form as may be prescribed by the Administrator and may, from time to time, amend
or revoke such designation. If no designated beneficiary survives the Participant, the executor or administrator of the Participant’s
estate shall be deemed to be the Participant’s beneficiary.

 

Section 26.          
Paperless Administration.

 

In the event that the Company establishes,
for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards, such
as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of
Awards by a Participant may be permitted through the use of such an automated system.

 

    	22

    	 

    

 

Section 27.          
Severability.

 

If any provision of the Plan is held to be
invalid or unenforceable, the other provisions of the Plan shall not be affected but shall be applied as if the invalid or unenforceable
provision had not been included in the Plan.

 

Section 28.          
Clawback.

 

Notwithstanding any other provisions in this
Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be
subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange
listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing
requirement). In addition, all Awards made under the Plan shall be subject to any clawback or recoupment policies of the Company
or its Subsidiaries, as in effect from time to time.

 

Section 29.          
Section 409A of the Code.

 

The Plan as well as payments and benefits
under the Plan are intended to be exempt from, or to the extent subject thereto, to comply with Section 409A of the Code, and,
accordingly, to the maximum extent permitted, the Plan shall be interpreted in accordance therewith. Notwithstanding anything contained
herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of
the Code, the Participant shall not be considered to have terminated employment or service with the Company for purposes of the
Plan and no payment shall be due to the Participant under the Plan or any Award until the Participant would be considered to have
incurred a “separation from service” from the Company and its Affiliates within the meaning of Section 409A of the
Code. Any payments described in the Plan that are due within the “short term deferral period” as defined in Section
409A of the Code shall not be treated as deferred compensation unless applicable law requires otherwise. Notwithstanding anything
to the contrary in the Plan, to the extent that any Awards (or any other amounts payable under any plan, program or arrangement
of the Company or any of its Affiliates) are payable upon a separation from service and such payment would result in the imposition
of any individual tax and penalty interest charges imposed under Section 409A of the Code, the settlement and payment of such awards
(or other amounts) shall instead be made on the first business day after the date that is six (6) months following such separation
from service (or death, if earlier). Each amount to be paid or benefit to be provided under this Plan shall be construed as a separate
identified payment for purposes of Section 409A of the Code. The Company makes no representation that any or all of the payments
or benefits described in this Plan will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude
Section 409A of the Code from applying to any such payment. The Participant shall be solely responsible for the payment of any
taxes and penalties incurred under Section 409A.

 

Section 30.          
Governing Law.

 

The Plan and all determinations made and actions
taken pursuant thereto shall be governed by the laws of the State of New York without giving effect to the conflict of laws principles
thereof.

 

    	23

    	 

    

 

Section 31.          
Data Protection and FATCA.

 

(a)               
By participating in the Plan, Participants give their consent to the holding and processing of data relating to them (including
personal data) in relation to and as a consequence of their Awards and to the disclosure of data (even outside the European Union,
if applicable) to their employer, the Company or its Subsidiaries, to any possible purchaser of their employer or its business
or of the Company or its business and its advisers in relation to this Plan for the purposes of administering the Plan, due diligence
and compliance with applicable law.

 

(b)              
By participating in the Plan, each Participant agrees to give all such assistance and representations and supply or procure
to be supplied (including by way of updates) all such information and execute and deliver (or procure the execution and delivery
of) all such documents that the Company requests in writing for the purpose of enabling the Company or any of its Subsidiaries
(or any external administrator) to comply with the Foreign Account Tax Compliance Act ("FATCA"), any exchange of information
agreement ("IGA") or any similar, equivalent or related applicable laws, rules or regulations in any jurisdiction. Each
Participant further agrees and authorizes the Company or any of its Subsidiaries to disclose such information to any governmental
authorities if it is required to be disclosed pursuant to FATCA, any IGA or any similar, equivalent or related applicable laws,
rules or regulations.

 

    	24Exhibit 10.24

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (the “Agreement”) is made and entered into as of [                ],
2016, between Patheon N.V., a public limited liability company (naamloze vennootschap) incorporated in the Netherlands (the
“Company”), and [name of Director/Executive Officer] (“Indemnitee”).

 

WHEREAS, it is
essential to the Company to retain and attract as directors and officers the most capable persons available;

 

[WHEREAS, Indemnitee
is a director of the Board of Directors of the Company (the “Board of Directors”) and performs a valuable service
in such capacity for the Company;]

 

[WHEREAS, as
a condition to service on the Board of Directors, the Indemnitee has requested that, in addition to the protections afforded under
insurance obtained by the Company and the protections provided by the Articles of Association of the Company (the “Articles”),
the Company agree to enter into this Agreement with the Indemnitee;]1

 

WHEREAS, the Articles
of Association of the Company (the “Articles”) provides for indemnification of and the payment of expenses to
certain persons acting on behalf of the Company;

 

WHEREAS, such
Articles specifically provide that the rights to indemnification and the payment of expenses are not exclusive of any other right
to which any person may be entitled under any agreement, and thus contemplate that agreements may be entered into with respect
to indemnification and the payment and advancement of expenses;

 

WHEREAS, the Board
of Directors has determined that enhancing the ability of the Company to retain and attract as directors and officers the most
capable persons is in the best interests of the Company and that the Company therefore should seek to assure such persons that
indemnification and insurance coverage will be available in the future; and

 

WHEREAS, in recognition
of the Indemnitee’s need for substantial protection against personal liability in order to enhance the Indemnitee’s
continued service to the Company in an effective manner and the Indemnitee’s reliance on the Articles, and in part to provide
Indemnitee with specific contractual assurance that the protection promised by the Articles will be available to the Indemnitee
(regardless of, among other things, any amendment to or revocation of such Articles or any change in the composition of the Board
of Directors or acquisition transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification
of and the advancing of expenses to the Indemnitee to the fullest extent (whether partial or complete) permitted by law and as
set forth in this Agreement, and, to the extent insurance is maintained, for the continued coverage of the Indemnitee under the
Company’s directors’ and officers’ liability insurance policies.

 

1
NTD: Proper recital to be used depending on status of director.

 

    	 

    	 

    

 

 

NOW, THEREFORE, in consideration of
the premises and of the Indemnitee continuing to serve the Company directly or, at its request, as an officer, director, manager,
member, partner, tax matters partner, fiduciary or trustee of, or in any other capacity with, another Person (as defined below)
or any employee benefit plan, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                 
Certain Definitions. In addition to terms defined elsewhere herein, the following terms have the following meanings
when used in this Agreement:

 

(a)               
“Affiliate” means a Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by, or is under common control with, the Person specified, the term “control” (including the terms
“controlling,” “controlled by” and “under common control with”) meaning the possession, direct
or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership
of voting securities, by contract, or otherwise.

 

(b)              
“Change in Control” shall be deemed to have occurred if (i) any “person” (as such term is
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than (A) those persons (and their respective
Affiliates) who were stockholders of the Company immediately prior to the consummation of the initial public offering of securities
of the Company, (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or (C) a corporation
owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock
of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly,
of securities of the Company representing 25% or more of the total voting power represented by the Company’s then outstanding
Voting Securities, or (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute
the Board of Directors and any new director whose election by the Board of Directors or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to
constitute a majority thereof, or (iii) the stockholders of the Company approve a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation which would result in the Voting Securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities
of the surviving entity) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of transactions)
all or substantially all of the Company’s assets.

 

(c)               
“Claim” means any threatened, asserted, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, investigative or other, including any arbitration or other alternative dispute resolution mechanism,
or any appeal of any kind thereof, or any inquiry or investigation, in each case whether instituted by (or in the right of) the
Company or any governmental agency or any other person or entity, in which the Indemnitee was, is, may be or will be involved as
a party, witness or otherwise.

 

    	 

    	 

    

(d)              
“Expenses” include reasonable attorneys’ fees and all other reasonable direct or indirect costs,
expenses and obligations, including judgments, fines, penalties, interest, appeal bonds, amounts paid in settlement (which settlement
shall have been approved by the Company in accordance with the terms hereof), and counsel fees and disbursements (including, without
limitation, experts’ fees, court costs, retainers, appeal bond premiums, transcript fees, duplicating, printing and binding
costs, as well as telecommunications, postage and courier charges) paid or incurred in connection with investigating, prosecuting,
defending, settling, arbitrating, being a witness in or participating in (including on appeal), or preparing to investigate, prosecute,
defend, settle, arbitrate, be a witness in or participate in, any Claim relating to any Indemnifiable Event, and shall include
(without limitation) all reasonable attorneys’ fees and all other reasonable expenses incurred by or on behalf of an Indemnitee
in connection with preparing and submitting any requests or statements for indemnification, advancement or any other right provided
by this Agreement (including, without limitation, such fees or expenses incurred in connection with legal proceedings contemplated
by Section 2(d) hereof).

 

(e)               
“Indemnifiable Amounts” means (i) any and all liabilities, Expenses, damages, judgments, fines,
penalties, ERISA excise taxes and amounts paid in settlement (including all interest, assessments and other charges paid or payable
in connection with or in respect of such liabilities, Expenses, damages, judgments, fines, penalties, [ERISA excise taxes] or amounts
paid in settlement) arising out of or resulting from any Claim relating to an Indemnifiable Event, (ii) any liability pursuant
to a loan guaranty or otherwise, for any indebtedness of the Company or any subsidiary of the Company, including, without limitation,
any indebtedness which the Company or any subsidiary of the Company has assumed or taken subject to, and (iii) any liabilities
which an Indemnitee incurs as a result of acting on behalf of the Company (whether as a fiduciary or otherwise) in connection with
the operation, administration or maintenance of an employee benefit plan or any related trust or funding mechanism (whether such
liabilities are in the form of excise taxes assessed by the United States Internal Revenue Service and any other relevant tax authority
with jurisdiction over the Company, penalties assessed by the United States Department of Labor and any other relevant labor authority
with jurisdiction over the Company, restitutions to such a plan or trust or other funding mechanism or to a participant or beneficiary
of such plan, trust or other funding mechanism, or otherwise).

 

(f)               
“Indemnifiable Event” means any event or occurrence, whether occurring before, on or after the date of
this Agreement, related to the fact that the Indemnitee is or was (or has agreed to serve as) a director, officer, employee, agent
or fiduciary of the Company, or is or was serving (or has agreed to serve) at the request of the Company as a director, officer,
employee, trustee or agent (which, for purposes hereof, shall include a fiduciary, partner or manager or similar capacity) of another
corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, or by reason of anything done or not
done by the Indemnitee in any such capacity (in all cases whether or not the Indemnitee is acting or serving in any such capacity
or has such status at the time any Indemnifiable Amount is incurred for which indemnification, advancement or any other right can
be provided by this Agreement).

 

    	 

    	 

    

(g)              
“Indemnitee-Related Entities” means any corporation, limited liability company, partnership, joint venture,
trust, employee benefit plan or other enterprise (other than the Company or any other corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise Indemnitee has agreed, on behalf of the Company or at the Company’s
request, to serve as a director, officer, employee or agent and which service is covered by the indemnity described in this Agreement)
from whom an Indemnitee may be entitled to indemnification or advancement of expenses with respect to which, in whole or in part,
the Company may also have an indemnification or advancement obligation (other than as a result of obligations under an insurance
policy).

 

(h)              
“Independent Legal Counsel” means an attorney or firm of attorneys (following a Change in Control, selected
in accordance with the provisions of Section 3 hereof), who is experienced in the matters of corporate law and who
shall not have otherwise performed services for the Company or the Indemnitee within the last five years (other than with respect
to matters concerning the rights of the Indemnitee under this Agreement, or of other indemnitees under similar indemnity agreements).

 

(i)                
“Jointly Indemnifiable Claim” means any Claim for which the Indemnitee may be entitled to indemnification
from any of the Indemnitee-Related Entities or the Company pursuant to applicable law, any indemnification agreement or the Articles
or the certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate
of limited partnership or comparable organizational documents of the Company and the Indemnitee-Related Entities.

 

(j)                
 “Person” means any corporation, firm, partnership, joint venture, limited liability company, estate,
trust, business association, organization, governmental entity or other entity, or any individual natural person.

 

(k)              
“Reviewing Party” means any appropriate person or body consisting of a member or members of the Board
of Directors or any other Person or body appointed by the Board of Directors who is not a party to the particular Claim for which
the Indemnitee is seeking indemnification, or Independent Legal Counsel.

 

(l)                
“Voting Securities” means any securities of the Company which vote generally in the election of directors.

 

2.                 
Basic Indemnification Arrangement: Advancement of Expenses.

 

(a)               
In the event that the Indemnitee was, is or becomes subject to, a party to or witness or other participant in, or is threatened
to be made subject to, a party to or witness or other participant in, a Claim by reason of (or arising in part out of) an Indemnifiable
Event, the Company shall indemnify the Indemnitee, or cause such Indemnitee to be indemnified, to the fullest extent permitted
by applicable law; provided, however, that no change in applicable law shall have the effect of reducing the benefits
available to the Indemnitee hereunder based on applicable law as in effect on the date hereof or as such benefits may improve as
a result of amendments after the date hereof. Payments of Indemnifiable Amounts shall be made as soon as practicable but in any
event no later than thirty (30) days after written demand specifying such amounts in reasonable detail, to the extent available,
is presented to the Company. If so requested by the Indemnitee, the Company shall advance, or cause to be advanced (within five
business days of such request), any and all Expenses incurred by the Indemnitee (an “Expense Advance”). The
Company shall, in accordance with such request (but without duplication), pay, or caused to be paid, such Expenses on behalf of
the Indemnitee, unless the Indemnitee shall have elected to pay such Expenses and have such Expenses reimbursed, in which case
the Company shall reimburse, or cause to be reimbursed, the Indemnitee for such Expenses. To the fullest extent permitted by applicable
law, the Indemnitee’s right to an Expense Advance is absolute and shall not be subject to any prior determination by the
Reviewing Party that the Indemnitee has satisfied any applicable standard of conduct for indemnification.

 

    	 

    	 

    

(b)              
The Indemnitee hereby undertakes to repay any amounts advanced (without interest) to the extent it is ultimately determined
that Indemnitee is not entitled under this Agreement to be indemnified by the Company in respect thereof. No other form of undertaking
shall be required of the Indemnitee other than execution of this Agreement. If the Indemnitee commences legal proceedings in a
court of competent jurisdiction to secure a determination that the Indemnitee should be indemnified under applicable law, the Indemnitee
shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect
thereto.

 

(c)               
Notwithstanding anything in this Agreement to the contrary, the Indemnitee shall not be entitled to indemnification or advancement
of Expenses pursuant to this Agreement in connection with any Claim initiated by the Indemnitee unless (i) the Company has
joined in or the Board of Directors has authorized or consented to the initiation of such Claim or (ii) the Claim is one to
enforce the Indemnitee’s rights under this Agreement (including an action pursued by the Indemnitee to secure a determination
that the Indemnitee should be indemnified under applicable law).

 

(d)              
A determination by the Company that the Indemnitee is not entitled to indemnification pursuant to Section 2(a)
shall be made only by the Reviewing Party pursuant to a legal opinion. If there has not been a Change in Control, the Reviewing
Party shall be selected by the Board of Directors, and if there has been such a Change in Control, the Reviewing Party shall be
the Independent Legal Counsel referred to in Section 3 hereof. If there has been no determination by the Reviewing
Party within thirty (30) days after written demand is presented to the Company or if the Reviewing Party determines that the
Indemnitee would not be permitted to be indemnified in whole or in part under applicable law, the Indemnitee shall have the right
to commence litigation in any court in the State of Delaware having subject matter jurisdiction thereof and in which venue is proper
seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof,
including the legal or factual bases therefor, and the Company hereby consents to service of process and to appear in any such
proceeding.

 

(e)               
To the extent that the Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating
in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal without prejudice,
the Indemnitee shall be indemnified against all Indemnifiable Amounts actually and reasonably incurred in connection therewith,
notwithstanding an earlier determination by the Reviewing Party that the Indemnitee is not entitled to indemnification under applicable
law.

 

    	 

    	 

    

3.                 
Change in Control. The Company agrees that if there is a Change in Control of the Company (other than a Change in
Control which has been approved by a majority of the Board of Directors who were directors immediately prior to such Change in
Control) then with respect to all matters thereafter arising concerning the rights of the Indemnitee to indemnity payments and
Expense Advances under this Agreement or any provision of the Articles of Association of the Company (the “Articles”)
hereafter in effect relating to Claims for Indemnifiable Events, the Company shall seek legal advice only from Independent Legal
Counsel selected by the Indemnitee and approved by the Company (which approval shall not be unreasonably delayed, conditioned or
withheld). Such counsel, among other things, shall render its written opinion to the Company and the Indemnitee as to whether and
to what extent the Indemnitee would be permitted to be indemnified under applicable law. The Company agrees to pay the reasonable
fees of the Independent Legal Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

4.                 
Indemnification for Additional Expenses. The Company shall indemnify, or cause the indemnification of, the Indemnitee
against any and all Expenses and, if requested by the Indemnitee, shall advance such Expenses to the Indemnitee, subject to and
in accordance with Section 2(b), which are incurred by the Indemnitee in connection with any action brought by the
Indemnitee for (i) indemnification or an Expense Advance by the Company under this Agreement or any other agreement or provision
of the Articles now or hereafter in effect relating to Claims for Indemnifiable Events and/or (ii) recovery under any directors’
and officers’ liability insurance policies maintained by the Company, regardless of whether the Indemnitee ultimately is
determined to be entitled to such indemnification, Expense Advance or insurance recovery, as the case may be; provided that
the Indemnitee shall be required to reimburse such Expenses in the event that a final judicial determination is made (as to which
all rights of appeal therefrom have been exhausted or lapsed) that such action brought by the Indemnitee, or the defense by the
Indemnitee of an action brought by the Company or any other person, as applicable, was frivolous or in bad faith.

 

5.                 
Partial Indemnity, Etc. If the Indemnitee is entitled under any provision of this Agreement to indemnification by
the Company for some or a portion of the Expenses or other Indemnifiable Amounts in respect of a Claim but not, however, for the
entire amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion thereof to which the Indemnitee
is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that the Indemnitee has been successful
on the merits or otherwise in defense of any or all Claims relating in whole or in part to an Indemnifiable Event or in defense
of any issue or matter therein, including dismissal without prejudice, the Indemnitee shall be indemnified against all Expenses
incurred in connection therewith.

 

6.                 
Burden of Proof. In connection with any determination by the Reviewing Party or otherwise as to whether the Indemnitee
is entitled to be indemnified hereunder, the Reviewing Party, court, any finder of fact or other relevant person shall presume
that the Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification, and the burden of proof
shall be on the Company or its representative to establish by clear and convincing evidence that the Indemnitee is not so entitled.

 

    	 

    	 

    

7.                 
Reliance as Safe Harbor. For purposes of this Agreement, and without creating any presumption as to a lack of good
faith if the following circumstances do not exist, the Indemnitee shall be deemed to have acted in good faith and in a manner he
or she reasonably believed to be in or not opposed to the best interests of the Company if the Indemnitee’s actions or omissions
to act are taken in good faith reliance upon the records of the Company, including its financial statements, or upon information,
opinions, reports or statements furnished to the Indemnitee by the officers or employees of the Company or any of its subsidiaries
in the course of their duties, or by committees of the Board of Directors, or by any other Person (including legal counsel, accountants
and financial advisors) as to matters the Indemnitee reasonably believes are within such other Person’s professional or expert
competence and who has been selected with reasonable care by or on behalf of the Company. In addition, the knowledge and/or actions,
or failures to act, of any director, officer, agent or employee of the Company shall not be imputed to the Indemnitee for purposes
of determining the right to indemnity hereunder.

 

8.                 
No Other Presumptions. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, shall not create a
presumption that the Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party to
have made a determination as to whether the Indemnitee has met any particular standard of conduct or had any particular belief,
nor an actual determination by the Reviewing Party that the Indemnitee has not met such standard of conduct or did not have such
belief, prior to the commencement of legal proceedings by the Indemnitee to secure a judicial determination that the Indemnitee
should be indemnified under applicable law shall be a defense to the Indemnitee’s claim or create a presumption that the
Indemnitee has not met any particular standard of conduct or did not have any particular belief.

 

9.                 
Nonexclusivity, Etc. The rights of the Indemnitee hereunder shall be in addition to any other rights the Indemnitee
may have under the Articles, the applicable law or otherwise. To the extent that a change in the applicable law (whether by statute
or judicial decision) permits greater indemnification by agreement than would be afforded currently under the Company’s Articles
or this Agreement, it is the intent of the parties hereto that the Indemnitee shall enjoy by this Agreement the greater benefits
so afforded by such change. To the extent that there is a conflict or inconsistency between the terms of this Agreement and the
Articles, it is the intent of the parties hereto that the Indemnitee shall enjoy the greater benefits regardless of whether contained
herein or in the Articles. No amendment or alteration of the Articles or any other agreement shall adversely affect the rights
provided to the Indemnitee under this Agreement. No limitation of the Indemnitee’s rights pursuant to this Agreement shall
in any way limit, or imply any limitation of, the Indemnitee’s rights under any other agreement.

 

10.             
Liability Insurance. The Company shall use commercially reasonable efforts to maintain a policy or policies of insurance
with reputable insurance companies providing directors and officers with coverage for any liability asserted by reason of the fact
that they are serving as a director or officer or have agreed to serve as a director, officer, employee or agent of another enterprise,
and, to the extent the Company maintains an insurance policy or policies providing directors’ and officers’ liability
insurance, the Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent
of the coverage available for any Company director or officer. If the Company has such insurance in effect at the time the Company
receives from the Indemnitee any notice of the commencement of an action, suit or proceeding, the Company shall give prompt notice
of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such proceeding in accordance with the terms of such policy.

 

    	 

    	 

    

11.             
Period of Limitations. No legal action shall be brought and no cause of action shall be asserted by or in the right
of the Company against the Indemnitee, the Indemnitee’s spouse, heirs, executors or personal or legal representatives after
the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided,
however, that if any shorter period of limitations is otherwise applicable to any such cause of action such shorter period
shall govern.

 

12.             
Amendments, Etc. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

13.             
Subrogation. Subject to Section 15(e) hereof, in the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers
required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary
to enable the Company effectively to bring suit to enforce such rights. The Company shall pay or reimburse all Expenses actually
and reasonably incurred by the Indemnitee in connection with such subrogation.

 

14.             
No Duplication of Payments. Subject to Section 15(e) hereof, the Company shall not be liable under this
Agreement to make any payment in connection with any Claim made against the Indemnitee to the extent the Indemnitee has otherwise
actually received payment (under any insurance policy, any provision of the Articles or otherwise) of the amounts otherwise indemnifiable
hereunder.

 

15.             
Defense of Claims/Settlement.

 

(a)               
The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event or to assume
the defense thereof, with counsel reasonably satisfactory to the Indemnitee; provided that if the Indemnitee reasonably
believes, after consultation with counsel selected by the Indemnitee, that (i) the use of counsel chosen by the Company to
represent the Indemnitee would present such counsel with an actual or reasonably likely conflict of interest, (ii) the named
parties in any such Claim (including any impleaded parties) include the Company or any subsidiary of the Company and the Indemnitee,
and the Indemnitee concludes that there may be one or more legal defenses available to him or her that are different from or in
addition to those available to the Company or such subsidiary of the Company, or (iii) any such representation by such counsel
would be precluded under the applicable standards of professional conduct then prevailing, then the Indemnitee shall be entitled
to retain separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any particular Claim)
at the Company’s expense.

 

    	 

    	 

    

(b)              
The Company shall not be liable to the Indemnitee under this Agreement for any amounts paid in settlement of any Claim relating
to an Indemnifiable Event effected without the Company’s prior written consent. The Company shall not, without the prior
written consent of the Indemnitee, effect any settlement of any Claim relating to an Indemnifiable Event which the Indemnitee is
or could have been a party unless such settlement solely involves the payment of money and includes a complete and unconditional
release of the Indemnitee from all liability on all claims that are the subject matter of such Claim. Neither the Company nor the
Indemnitee shall unreasonably withhold, condition or delay its or his or her consent to any proposed settlement; provided
that the Indemnitee may withhold consent to any settlement that does not provide a complete and unconditional release of the Indemnitee.
In no event shall the Indemnitee be required to waive, prejudice or limit attorney-client privilege or work-product protection
or other applicable privilege or protection.

 

(c)               
Given that certain Jointly Indemnifiable Claims may arise due to the service of the Indemnitee as a director and/or officer
of the Company at the request of the Indemnitee-Related Entities, the Company acknowledges and agrees that the Company shall be
fully and primarily responsible for the payment to the Indemnitee in respect of indemnification or advancement of expenses in connection
with any such jointly indemnifiable claim, pursuant to and in accordance with the terms of this Agreement, irrespective of any
right of recovery the Indemnitee may have from the Indemnitee-Related Entities. Under no circumstance shall the Company be entitled
to any right of subrogation or contribution by the Indemnitee-Related Entities, and no right of advancement or recovery the Indemnitee
may have from the Indemnitee-Related Entities shall reduce or otherwise alter the rights of the Indemnitee or the obligations of
the Company hereunder. In the event that any of the Indemnitee-Related Entities shall make any payment to the Indemnitee in respect
of indemnification or advancement of expenses with respect to any jointly indemnifiable claim, the Indemnitee-Related Entity making
such payment shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee against the Company,
and the Indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably necessary to secure
such rights, including the execution of such documents as may be necessary to enable the Indemnitee-Related Entities effectively
to bring suit to enforce such rights. The Company and the Indemnitee agree that each of the Indemnitee-Related Entities shall be
third-party beneficiaries with respect to this Section 15(c), entitled to enforce this Section 15(c) as
though each such Indemnitee-Related Entity were a party to this Agreement.

 

16.             
No Adverse Settlement. The Company shall not seek, nor shall it agree to, consent to, support, or agree not to contest
any settlement or other resolution of any Claim(s), or settlement or other resolution of any other claim, action, proceeding, demand,
investigation or other matter that has the actual or purported effect of extinguishing, limiting or impairing the Indemnitee’s
rights hereunder, including, without limitation, the entry of any bar order or other order, decree or stipulation, pursuant to
15 U.S.C. § 78u-4 (the Private Securities Litigation Reform Act), or any similar foreign, federal or state statute, regulation,
rule or law.

 

    	 

    	 

    

17.             
Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors, assigns (including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business and/or assets of the Company), spouses, heirs, executors and personal
and legal representatives. This Agreement shall continue in effect regardless of whether the Indemnitee continues to serve as an
officer and/or director of the Company or of any other enterprise at the Company’s request. The Company shall require and
cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all or substantially all of
the business and/or assets of the Company and/or its subsidiaries, by written agreement in form and substance satisfactory to the
Indemnitee and his or her counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken place.

 

18.             
Severability. The provisions of this Agreement shall be severable in the event that any of the provisions hereof
(including any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid,
illegal, void or otherwise unenforceable in any respect, and the validity and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired and shall remain enforceable to the fullest extent
permitted by law.

 

19.             
Specific Performance, Etc. The parties recognize that if any provision of this Agreement is violated by the Company,
the Indemnitee may be without an adequate remedy at law. Accordingly, in the event of any such violation, the Indemnitee shall
be entitled, if the Indemnitee so elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce specific
performance, to enjoin such violation, or to obtain any relief or any combination of the foregoing as the Indemnitee may elect
to pursue.

 

20.             
Notices. All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient
if contained in a written document delivered in person or sent by facsimile, nationally recognized overnight courier or personal
delivery, addressed to such party at the address set forth below or such other address as may hereafter be designated on the signature
pages of this Agreement or in writing by such party to the other parties:

 

(a)           If to the Company, to:

 

Patheon N.V.

111 Speen St.

Suite 5500

Framingham, MA 01701

Fax: [___________]

Attention: Eric Sherbet, General Counsel and Secretary

Email: Eric.Sherbet@Patheon.com

 

with copies (which shall not constitute notice) to:

 

[_____________]

[_____________]

[_____________]

Attention: [_____________]

Fax: [_____________]

Email: [_____________]

 

    	 

    	 

    

(b)              
If to the Indemnitee, to the address set forth on Annex A hereto.

 

All such notices, requests, consents and other communications
shall be deemed to have been given or made if and when received (including by overnight courier) by the parties at the above addresses
or sent by electronic transmission, with confirmation received, to the facsimile numbers specified above (or at such other address
or facsimile number for a party as shall be specified by like notice). Any notice delivered by any party hereto to any other party
hereto shall also be delivered to each other party hereto simultaneously with delivery to the first party receiving such notice.

 

21.             
Counterparts. This Agreement may be executed in counterparts, each of which shall for all purposes be deemed to be
an original but all of which together shall constitute one and the same agreement. Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

22.             
Headings. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall
not be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.

 

23.             
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with, the laws of the
State of Delaware applicable to contracts made and to be performed in such state without giving effect to principles of conflicts
of laws.

 

    	 

    	 

    

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written. 

	 	 	 	 
	 	PATHEON N.V.
	 	 	 
	 	By:	 	

	 	Name: [     ]
	 	Title: [     ]
	 	 
	 	INDEMNITEE
	 	 	 
	 	 	 	

	 	 	 	Name:

 

 

    	 

    	 

    

Annex A

 

Name and Business Address of Indemnitee for Purposes of Notice:

 

[__________]

 

[__________]

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