Company: CGC
Filing Date: 2025-09-17
Form Type: 8-K
Source: 0001104659-25-090861
Chunk: 1

Company: Canopy Growth Corp
Filing Date: 2025-09-17
Form: 8-K
Item: Item 5.02
Chunk 1
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 September 17, 2025, Mr. Stewart entered into an employment agreement with Canopy Growth USA, LLC, a wholly-owned subsidiary
of the Company (the “ Employment Agreement”). Pursuant to the Employment Agreement, as Chief Financial Officer of the Company,
Mr. Stewart reports to the Chief Executive Officer of the Company and is entitled to a base salary of US$375,000 per year.

Mr. Stewart is also eligible for a short-term annual incentive performance
bonus of 75% of his base salary (the “ Target Amount”), with a payout range of up to two times the Target Amount based upon
the achievement of certain mutually developed financial, operational, strategic and individual performance objectives approved by the
Board.

Mr. Stewart is also entitled to participate in the
Company’s Amended and Restated Omnibus Equity Incentive Plan (the “ Incentive Plan”). Pursuant to the Employment
Agreement, Mr. Stewart is eligible to receive, at least once every fiscal year, a long-term award grant equal to 200% of his base
salary (using the fair market value of the Company’s common shares on the date of grant), which may be comprised of stock
options (“ Options”), restricted stock units (“ RSUs”), performance share units and/or any other form of
equity authorized by the Incentive Plan. The Board, in its sole discretion, may determine the ratio of the various forms of equity
that Mr. Stewart is entitled to receive pursuant to the Incentive Plan.

In connection with the Appointment and pursuant to the Employment Agreement,
on September 17, 2025, Mr. Stewart will receive a one-time equity award grant consisting of (i) such number of RSUs as is equal to $250,000
divided by Fair Market Value (as such term is defined in the Incentive Plan) of the Company’s common shares (the “ Common Shares”)
and (ii) a number of Options equal to $250,000 divided by the Fair Market Value of the Common Shares with an exercise price equal to the
Fair Market Value of the Common Shares (the “ Equity Award”). The Equity Award will vest in three equal installments on the
first, second and third anniversaries of the grant date, and the Options have a six-year term.

Pursuant to the Employment Agreement, Mr. Stewart’s employment
with the Company will be “at will.” If the Company terminates Mr. Stewart’s employment without cause, then, provided
that