Exhibit 10.1

The Patheon Group’s “Leadership” Incentive Plan

Overview

This Leadership Incentive Plan (this “Plan”) is designed to provide a financial incentive to Eligible Participants (as defined below) for their collective and individual contributions to the success of the Patheon Group during the Performance Period (as defined below), as measured through the achievement of assigned financial targets, key performance indicators and individual performance ratings. The “Patheon Group” means Patheon Inc. (“Patheon”) and any entity controlled by Patheon.

Key Plan Concepts

Tying pay to performance applies to each Eligible Participant by applying Component Thresholds (as defined below) to individual performance.

Key Plan Objectives

The objectives of this Plan include:

Corporate Adjusted EBITDA Threshold and Component Thresholds

Plan Options & Components:

Each Eligible Participant will be assigned by management and HR to one of the following 14 plan options (each, a “Plan Option”):

By Business:

For L13 & L14, PDS New Business and Commercial Awards may be specified by region, sub-region or other geographical affiliation at the discretion of the EVP, Sales & Marketing.

Performance and Payout Levels

Each level of achievement (i.e., Minimum, Target, and Maximum Achievements) has a corresponding level of Payout (i.e., Minimum, Target and Maximum Payouts) as indicated in the chart below. For example, Corporate Adjusted EBITDA achievement of 90% provides a Payout level of 50% and Corporate Adjusted EBITDA achievement of 120% or greater provides a payout of 175%.

Notes:

Note: An Eligible Participant with a performance rating of “NA” (Not Acceptable) will not be eligible to receive an Incentive Payout even if thresholds are met on financial and/or KPI targets. An Eligible Participant with a performance rating of “SME” (Sometimes Meets Expectations) could have any Incentive Payout reduced for not achieving at least a performance rating of “ME” (Meets Expectations). Performance ratings are subject to calibration across functions, businesses and geographies in order to ensure consistency, fairness and equity.

Payout Calculation:

For example:

Foreign Exchange Considerations

For the purposes of measuring financial performance to budget as required by any Component, local currencies will be used. Budget currency exchange rates will be used for converting forecasted and actual results to U.S. Dollars. Therefore, a constant exchange rate will be used throughout the Plan Year.

General Terms & Conditions of this Plan

Eligible Participants: This Plan is designed for active, full-time, management employees of members of the Patheon Group at the level of director (or regional equivalent) and above, whose participation has been nominated and approved by the employees’ supervisors and Human Resources, and who are not eligible under another incentive plan (“Eligible Participants”). This Plan does not apply to employees on “fixed term contracts” or who are otherwise ineligible based on the terms of their employment.

Payout Eligibility: Eligible Participants must meet each of the following conditions to be eligible for a payout under this Plan:

NOTE: Any Eligible Participant who is terminated for cause, as determined by his/her employer in its sole discretion, or who voluntarily leaves employment (other than via retirement or as a result of disability), or provides notice thereof, prior to the date of the Incentive Payout, is not eligible for an Incentive Payment under any circumstance (even if the Eligible Participant is an active employee at the time of such Incentive Payout).

Performance Period / Plan Year: The performance period runs concurrent with the fiscal year; currently November 1^st thru October 31^st (the “Performance Period” or the “Plan Year”)

Eligible Earnings: For the purpose of the calculation of any Incentive Payouts, eligible earnings are defined as the actual earned base pay (and non-exempt overtime pay, where required by law) reported by payroll paid during the performance period (in accordance with applicable employment standards law), excluding fringe benefits, cash allowances, disability, worker’s compensation, vacation/paid time off and all other types of pay not directly related to base pay, unless applicable law requires that other items of income be included for purpose of calculating an award in a discretionary incentive plan (“Eligible Earnings”).

Changes in Individual Incentive Target Level: If the Individual Incentive Target Level for an Eligible Participant changes during a Plan Year, then generally the Individual Incentive Target Level in effect as of as of October 31^st of the Plan Year will be used in the calculation of the Incentive Payout. However, Patheon reserves the right to pro-rate the Incentive Payout accordingly if an Eligible Participant receives an increase or decrease in Individual Incentive Target Level during the second (2^nd) half of the Plan Year (i.e., from May 1^st thru October 31^st).

Transfers: Annual incentive calculations for Eligible Participants who transfer between sites or businesses during the Plan Year will be based on the Components, levels and other terms and conditions which apply to the site or business to which they are assigned on October 31st of the relevant Plan Year. Patheon reserves the right to pro-rate the Incentive Payout if an Eligible Participant transfers during the second half of the Plan Year (i.e., from May 1^st thru October 31^st).

Communication of Results: Results to be used in the calculation of an incentive payout are provided by Corporate Finance. All such results, the determination of achievement of the Corporate Adjusted EBITDA Threshold, and the respective Incentive Payouts are subject to approval by the Compensation Committee. To minimize confusion, no one shall communicate any results as it relates to the Plan or Incentive Payout amounts until authorized to do so by Corporate HR or Corporate Finance.

Governance: This Plan is developed and administered by Corporate HR. This Plan is governed by the rules specified within this document and is subject to applicable law.

Exceptions: Any exceptions to this Plan must be made in writing and approved by Corporate HR.

Timing of Payment: If a payment is due under this Plan’s guidelines as set forth herein, the payment will be made no later than two (2) and one-half (1/2) months (i.e., seventy-five (75) days) days after the end of the calendar year during which Performance Period ends.

Disclaimer: Patheon reserves the right to amend or discontinue this Leadership Incentive Plan at any time, with or without notice.

Bonus Weightings for Patheon’s Executive Committee