Document:

EX-4.6

 Exhibit 4.6 

HEXO CORP. 
 NOTICE OF
ANNUAL MEETING OF SHAREHOLDERS 
 NOTICE IS HEREBY GIVEN that an annual meeting (the “Meeting”) of the holders
(the “Shareholders”) of common shares (the “Common Shares”) of HEXO Corp. (formerly “The Hydropothecary Corporation”) (the “Corporation”) will be held at the Thompson Hotel, 550 Wellington
Street W., Toronto, Ontario on Wednesday, January 16, 2019 at 6:00 p.m. (EST) for the following purposes: 
  

	 	1.	 to receive the audited financial statements of the Corporation for the year ended July 31, 2018,
together with the auditors’ report thereon; 

  

	 	2.	 to elect the directors of the Corporation for the ensuing year; 

 

	 	3.	 to appoint MNP LLP as the auditors of the Corporation for the ensuing year and authorize the directors to
fix the remuneration of the auditors; and 

  

	 	4.	 to transact such other business as may properly be brought before the Meeting or any adjournment(s) or
postponement(s) thereof. 

 Information relating to the matters to be brought before the Meeting is set forth in the
management information circular (the “Circular”) which accompanies this Notice. 
 The Board of Directors of the
Corporation has fixed Tuesday, December 4, 2018 as the record date for the Meeting. Shareholders of record at the close of business on this date are entitled to notice of the Meeting and to vote thereat or at any adjournment(s) or
postponement(s) thereof on the basis of one vote for each Common Share held. 
 Registered Shareholders may attend the Meeting in person or
may be represented by proxy. If you are a registered Shareholder and are unable to attend the Meeting in person, please exercise your right to vote by completing, signing, dating and returning the accompanying form of proxy to TSX Trust Company, the
transfer agent of the Corporation. To be valid, completed proxy forms must be signed, dated and deposited with TSX Trust Company using one of the following methods: 
  

			
	 By Mail or Hand

Delivery:
	  	 TSX Trust Company
 Suite 301, 100 Adelaide
Street West
 Toronto, Ontario M5H 4H1

		
	Facsimile:	  	416-595-9593
		
	By Internet:	  	 www.voteproxyonline.com
 You will need to
provide your 12 digit control number (located on the form of proxy accompanying this Circular)

 Proxies must be deposited with TSX Trust Company not later than 6:00 p.m. (EST) on Monday,
January 14, 2019 or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned meeting. The Chairman of the Meeting shall have the discretion to waive or extend the
proxy deadlines without notice. 
 If you are unable to attend the Meeting, we encourage you to complete and return the enclosed form of
proxy as soon as possible so that as large a representation as possible may be had at the Meeting. 
 If a Shareholder receives more than
one form of proxy because such holder owns Common Shares registered in different names or addresses, each form of proxy should be completed and returned. 

If you are a registered Shareholder and receive these materials through your broker or through another intermediary, please complete and
return the form of proxy in accordance with the instructions provided to you by your broker or by the other intermediary. 

  
 1 

NOTICE-AND-ACCESS 

Notice is also hereby given that the Corporation has decided to use the
notice-and-access method of delivery of meeting materials for the Meeting for beneficial owners of Common Shares (the
“Non-Registered Holders”) and for registered Shareholders. The notice-and-access method of delivery of
meeting materials allows the Corporation to deliver the meeting materials over the Internet in accordance with the notice-and-access rules adopted by the Canadian
Securities Administrators under National Instrument 54-101 – Communication with Beneficial Owners of Securities of a Reporting Issuer. Under the notice-and-access system, registered Shareholders will receive a form of proxy and Non-Registered Holders will receive a voting instruction form enabling them to vote
at the Meeting. However, instead of a paper copy of this Notice, the Circular, the form of proxy, the annual financial statements and related management’s discussion and analysis, where applicable, and other meeting materials (collectively
the “Meeting Materials”), Shareholders will receive a notification with information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will
help reduce paper use and will also reduce the cost of printing and mailing the Meeting Materials to Shareholders. Shareholders are reminded to view the Meeting Materials prior to voting. The Corporation will not be adopting stratification
procedures in relation to the use of notice-and-access provisions. 

Websites Where Meeting Materials Are Posted: 

Meeting Materials can be viewed online under the Corporation’s profile on SEDAR at www.sedar.com or at
http://docs.tsxtrust.com/2092, the website for the Meeting Materials maintained by the Corporation’s transfer agent and registrar. The Meeting Materials will remain posted on TSX Trust Company’s website at least until the date
that is one year after the date the Meeting Materials were posted. 
 How to Obtain Paper Copies of the Meeting Materials 

Shareholders may request paper copies of the Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made
up to one year from the date the Meeting Materials are posted on TSX Trust Company’s website. In order to receive a paper copy of the Meeting Materials, or if you have questions concerning notice-and-access, please call or email the Corporation’s transfer agent and registrar, TSX Trust Company, toll free at 1-866-600-5869 or TMXEInvestorServices@tmx.com. Requests should be received by January 7, 2019 in order to receive the Meeting Materials in advance of
the Meeting. 
 The Circular provides additional detailed information relating to the matters to be dealt with at the Meeting and is
supplemental to, and expressly made a part of, this Notice. Additional information about the Corporation and its consolidated financial statements are also available under the Corporation’s profile on SEDAR at www.sedar.com.

 DATED at Gatineau, Québec this 4th day of December, 2018. 

 

	
	BY ORDER OF THE BOARD OF DIRECTORS
	
	(Signed) “Sébastien St-Louis”
	 Sébastien St-Louis

President and Chief Executive Officer and Director

  
 2 

 HEXO CORP. 

TSX: HEXO 
 INFORMATION
CIRCULAR 
 FOR THE ANNUAL MEETING OF SHAREHOLDERS 

TO BE HELD ON JANUARY 16, 2019 

PURPOSES OF SOLICITATION 

THIS MANAGEMENT INFORMATION CIRCULAR IS FURNISHED IN CONNECTION WITH THE SOLICITATION BY THE MANAGEMENT OF HEXO
CORP. (the “Corporation”) of proxies to be used at the annual meeting (the “Meeting”) of the holders (the “Shareholders”) of common shares (the “Common
Shares”) of the Corporation to be held at the Thompson Hotel, 550 Wellington Street W., Toronto, Ontario on Wednesday, January 16, 2019 at 6:00 p.m. (EST), and at any adjournment or postponement thereof, for the
purposes set out in the enclosed notice of meeting (the “Notice of Meeting”). Although it is expected that the solicitation of proxies will be primarily by mail, proxies may also be solicited personally or by telephone,
facsimile or other proxy solicitation services. In accordance with National Instrument 54-101 – Communication with Beneficial Owners of Securities of a Reporting
Issuer (“NI 54-101”), arrangements have been made with brokerage houses and clearing agencies, custodians, nominees, fiduciaries or other intermediaries to send the Notice of
Meeting, this management information circular (the “Circular”), the form of proxy for the meeting, the annual financial statements of the Corporation for the financial year ended July 31, 2018 and related management’s
discussion and analysis, where applicable, and other meeting materials (collectively the “Meeting Materials”) to the beneficial owners of the Common Shares held of record by such parties. The Corporation may reimburse such
parties for reasonable fees and disbursements incurred by them in doing so. The costs of the solicitation of proxies will be borne by the Corporation. The Corporation may also retain, and pay a fee to, one or more professional proxy
solicitation firms to solicit proxies from the Shareholders in favour of the matters set forth in the Notice of Meeting. 
 NOTICE-AND-ACCESS 
 The Corporation has decided to use the notice-and-access (“Notice-and-Access”) rules provided under NI 54-101 for the delivery of the Meeting Materials to holders of Common Shares who appear on the records maintained by the Corporation’s registrar and transfer agent as registered holders of Common Shares
(“Registered Shareholders”) and beneficial owners of Common Shares (the “Non-Registered Holders”) for the Meeting. The Notice-and-Access method of delivery of Meeting Materials allows the Corporation to deliver the Meeting Materials over the internet in accordance with the Notice-and-Access rules adopted by the Canadian Securities Administrators under NI 54-101. 

Registered Shareholders will receive a form of proxy and Non-Registered Holders will receive a voting
instruction form, in each case enabling them to vote at the Meeting. However, instead of a paper copy of the Meeting Materials, Shareholders will receive only a notice with information on the date, location and purpose of the Meeting, as well
as information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will help reduce paper use and will also reduce the cost of printing and mailing the
Meeting Materials to Shareholders. Shareholders are reminded to view the Meeting Materials prior to voting. Materials can be viewed online under the Corporation’s profile on SEDAR at www.sedar.com or on the website of TSX
Trust Company (the “Transfer Agent”), the Corporation’s transfer agent and registrar, at http://docs.tsxtrust.com/2092. The Meeting Materials will remain posted on the Transfer Agent’s website at least until
the date that is one year after the date the Meeting Materials were posted. The Corporation will not be adopting stratification procedures in relation to the use of
Notice-and-Access rules.
 Shareholders may request paper
copies of the Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made up to one year from the date the Meeting Materials are posted on the Transfer Agent’s website. In order to receive a paper copy of the
Meeting Materials or if you have questions concerning Notice-and-Access, please call or email the Corporation’s transfer agent and registrar, TSX Trust
Company, toll free at 1-866-600-5869 or TMXEInvestorServices@tmx.com. Requests should be received by
January 7, 2019 in order to receive the Meeting Materials in advance of the Meeting. 

  
 1 

 APPOINTMENT AND REVOCATION OF PROXIES 

A Registered Shareholder may vote in person at the Meeting or may appoint another person to represent such Registered Shareholder as proxy and
to vote the Common Shares of such Registered Shareholder at the Meeting. In order to appoint another person as proxy, a Registered Shareholder must complete, execute and deliver the form of proxy accompanying this Circular, or another proper
form of proxy, in the manner specified in the Notice of Meeting. 
 The purpose of a form of proxy is to designate persons who will vote on
the Shareholder’s behalf in accordance with the instructions given by the Shareholder in the form of proxy. The persons named in the enclosed form of proxy are officers or directors of the Corporation. A REGISTERED
SHAREHOLDER DESIRING TO APPOINT SOME OTHER PERSON, WHO NEED NOT BE A SHAREHOLDER OF THE CORPORATION, TO REPRESENT HIM, HER OR IT AT THE MEETING MAY DO SO BY FILLING IN THE NAME OF SUCH PERSON IN THE BLANK SPACE PROVIDED IN THE FORM OF PROXY OR BY
COMPLETING ANOTHER PROPER FORM OF PROXY. A Registered Shareholder wishing to be represented by proxy at the Meeting or any adjournment thereof must, in all cases, deposit the completed form of proxy with the Transfer Agent not later than
6:00 p.m. (EST) on Monday, January 14, 2019 or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned Meeting at which the form of proxy is to be
used. A form of proxy should be executed by the Registered Shareholder or his or her attorney duly authorized in writing or, if the Registered Shareholder is a corporation, by an officer or attorney thereof duly authorized.

Proxies may be deposited with the Transfer Agent using one of the following methods: 

 

			
	 By Mail or Hand

Delivery:
	  	 TSX Trust Company
 Suite 301

100 Adelaide Street West
 Toronto, Ontario M5H
4H1

		
	Facsimile:	  	416-595-9593
		
	By Internet:	  	 www.voteproxyonline.com
 You will need to
provide your 12 digit control number (located on the form of proxy accompanying this Circular)

 A Registered Shareholder attending the Meeting has the right to vote in person and, if he, she or it does so,
his, her or its form of proxy is nullified with respect to the matters such person votes upon at the Meeting and any subsequent matters thereafter to be voted upon at the Meeting or any adjournment thereof. 

A Registered Shareholder who has given a form of proxy may revoke the form of proxy at any time prior to using it: (a) by depositing an
instrument in writing, including another completed form of proxy, executed by such Registered Shareholder or by his, her or its attorney authorized in writing or by electronic signature or, if the Registered Shareholder is a corporation, by an
authorized officer or attorney thereof at, or by transmitting by facsimile or electronic means, a revocation signed, subject to the Business Corporations Act (Ontario), by electronic signature, to (i) the head office of
the Corporation, located at 204-490 Boulevard Saint-Joseph, Gatineau, Québec, J8Y 3W9 at any time prior to 5:00 p.m. (EST) on the last business day preceding the day of the Meeting or any
adjournment thereof or (ii) with the Chairman of the Meeting on the day of the Meeting or any adjournment thereof; or (b) in any other manner permitted by law. 

ADVICE TO NON-REGISTERED SHAREHOLDERS 

The information set forth in this section is of significant importance to many Shareholders, as a substantial number of Shareholders do not
hold Common Shares in their own name. Only Registered Shareholders or the persons they appoint as their proxies are permitted to attend and vote at the Meeting and only forms of proxy deposited by Registered Shareholders will be recognized
and acted upon at the Meeting. Common Shares beneficially owned by a Non-Registered Holder are registered either: (i) in the name of an intermediary (an “Intermediary”) with whom the
Non-Registered Holder deals in respect of the Common Shares (Intermediaries 

  
 2 

 
include, among others, banks, trust companies, securities dealers or brokers and trustees or administrators of self-administered RRSPs, RRIFs, RESPs and similar plans); or (ii) in the name
of a clearing agency (such as CDS Clearing and Depository Services Inc.) (each a “Clearing Agency”) of which the Intermediary is a participant. Accordingly, such Intermediaries and Clearing Agencies would be the Registered
Shareholders and would appear as such on the list maintained by the Transfer Agent. Non-Registered Holders do not appear on the list of the Registered Shareholders maintained by the Transfer Agent.

Distribution of Meeting Materials to Non-Registered Holders 

In accordance with the requirements of NI 54-101, the Corporation has distributed copies of the Meeting
Materials to the Clearing Agencies and Intermediaries for onward distribution to Non-Registered Holders as well as directly to NOBOs (as defined below).

Non-Registered Holders fall into two categories—those who object to their identity being known to
the issuers of the securities which they own (“OBOs”) and those who do not object to their identity being made known to the issuers of the securities which they own (“NOBOs”). Subject to the provisions of NI 54-101, issuers may request and obtain a list of their NOBOs from Intermediaries directly or via their transfer agent and may obtain and use the NOBO list for the distribution of proxy-related materials to such
NOBOs. If you are a NOBO and the Corporation or its agent has sent the Meeting Materials directly to you, your name, address and information about your holdings of Common Shares have been obtained in accordance with applicable securities
regulatory requirements from the Intermediary holding the Common Shares on your behalf. 
 The Corporation’s OBOs can expect to be
contacted by their Intermediary. The Corporation does not intend to pay for Intermediaries to deliver the Meeting Materials to OBOs and it is the responsibility of such Intermediaries to ensure delivery of the Meeting Materials to their OBOs.

 Voting by Non-Registered Holders 

The Common Shares held by Non-Registered Holders can only be voted or withheld from voting at the
direction of the Non-Registered Holder. Without specific instructions, Intermediaries or Clearing Agencies are prohibited from voting Common Shares on behalf of
Non-Registered Holders. Therefore, each Non-Registered Holder should ensure that voting instructions are communicated to the appropriate person well in advance of
the Meeting. 
 The various Intermediaries have their own mailing procedures and provide their own return instructions to Non-Registered Holders, which should be carefully followed by Non-Registered Holders in order to ensure that their Common Shares are voted at the Meeting. 

Non-Registered Holders will receive either a voting instruction form or, less frequently, a form of
proxy. The purpose of these forms is to permit Non-Registered Holders to direct the voting of the Common Shares they beneficially own. Non-Registered Holders
should follow the procedures set out below, depending on which type of form they receive. 
  

	A.	 Voting Instruction Form. In most cases, a
Non-Registered Holder will receive, as part of the Meeting Materials, a voting instruction form (a “VIF”). If the Non-Registered Holder does not
wish to attend and vote at the Meeting in person (or have another person attend and vote on the Non-Registered Holder’s behalf), the VIF must be completed, signed and returned in accordance with the
directions on the form.

 OR 
  

	B.	 Form of Proxy. Less frequently, a Non-Registered
Holder will receive, as part of the Meeting Materials, a form of proxy that has already been signed by the Intermediary (typically by a facsimile, stamped signature) which is restricted as to the number of Common Shares beneficially owned by the Non-Registered Holder but which is otherwise not completed. If the Non-Registered Holder does not wish to attend and vote at the Meeting in person (or have another person
attend and vote on the Non-Registered Holder’s behalf), the Non-Registered Holder must complete and sign the form of proxy and in accordance with the directions on
the form. 

  
 3 

 Voting by Non-Registered Holders at the Meeting 

Although a Non-Registered Holder may not be recognized directly at the Meeting for the purposes of
voting Common Shares registered in the name of an Intermediary or a Clearing Agency, a Non-Registered Holder may attend the Meeting as proxyholder for the Registered Shareholder who holds Common Shares
beneficially owned by such Non-Registered Holder and vote such Common Shares as a proxyholder. A Non-Registered Holder who wishes to attend the Meeting and to vote
their Common Shares as proxyholder for the Registered Shareholder who holds Common Shares beneficially owned by such Non-Registered Holder, should (a) if they received a VIF, follow the directions
indicated on the VIF; or (b) if they received a form of proxy strike out the names of the persons named in the form of proxy and insert the Non-Registered Holder’s or its nominees name in the blank
space provided. Non-Registered Holders should carefully follow the instructions of their Intermediaries, including those instructions regarding when and where the VIF or the form of proxy is to be
delivered. 
 All references to Shareholders in the Meeting Materials are to Registered Shareholders as set forth on the list of registered
Shareholders as maintained by the Transfer Agent, unless specifically stated otherwise. 
 VOTING OF PROXIES 

All Common Shares represented at the Meeting by properly executed proxies will be voted on any matter that may be called for and, where a
choice with respect to any matter to be acted upon has been specified in the accompanying form of proxy, the Common Shares represented by the proxy will be voted in accordance with such instructions. In the absence of any such instruction, the
persons whose names appear on the printed form of proxy will vote in favour of all the matters set out thereon. 
 The enclosed form
of proxy confers discretionary authority upon the persons named therein. If any other business or amendments or variations to matters identified in the Notice of Meeting properly comes before the Meeting, then discretionary authority is conferred
upon the person appointed in the proxy to vote in the manner they see fit, in accordance with their best judgment. 
 At the time of the
printing of this Circular, the management of the Corporation knew of no such amendment, variation or other matter to come before the Meeting other than the matters referred to in the Notice of Meeting. 

INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON 

To the knowledge of the directors and executive officers of the Corporation, no director or executive officer of the Corporation, any proposed
nominee for election as director of the Corporation, or any associate or affiliate of any of the foregoing persons, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted
upon at the Meeting, other than the election of directors. 
 VOTING SECURITIES AND PRINCIPAL HOLDERS OF VOTING SECURITIES 

The board of directors of the Corporation has fixed Tuesday, December 4, 2018 as the record date for the Meeting. Shareholders at the
close of business on this date are entitled to receive notice of the Meeting and to vote thereat or at any adjournments or postponements thereof on the basis of one vote for each Common Share held. 

The authorized capital of the Corporation consists of an unlimited number of Common Shares and an unlimited number of special shares issuable
in series. As of the date hereof, 198,172,020 Common Shares were issued and outstanding as fully paid and non-assessable. 

As of the date hereof, to the knowledge of the directors and executive officers of the Corporation, no person or company beneficially owns, or
controls or directs, directly or indirectly, Common Shares carrying 10% or more of the voting rights attached to all of the Common Shares. 

  
 4 

 BUSINESS TO BE TRANSACTED AT THE MEETING 

 

	1.	 Financial Statements 

The audited financial statements of the Corporation for the period ended July 31, 2018, together with the report of the auditors thereon,
will be presented at the Meeting. 
  

	2.	 Election of Directors 

The affairs of the Corporation are managed by the board of directors of the Corporation (the “Board”). The members of the
Board are elected annually, on an individual basis, at each annual meeting of Shareholders. 
 At the Meeting, the number of directors
proposed for election will be six (6), as listed below, all of whom are currently directors of the Corporation. Management has been informed that each of the proposed nominees listed below is willing to serve as a director if elected. The table
below sets forth certain information regarding the nominees proposed as directors for election by the Shareholders at the Meeting, their respective positions with the Corporation, principal occupations or employment during the last five
(5) years, the dates on which they became directors of the Corporation and the approximate number of Common Shares beneficially owned by them, directly or indirectly, or over which control or direction is exercised by them as of the date
hereof. 
 The enclosed form of proxy allows the Shareholders to direct proxyholders to vote individually for each of the nominees as a
director of the Corporation. Unless instructions are given to withhold from voting with regard to the election of directors, the persons whose names appear on the enclosed form of proxy will vote in favour of the election of each of the six
(6) nominees whose names are listed below. 
 Management of the Corporation does not foresee that any of the
following nominees listed below will be unable or, for any reason, unwilling to perform his or her duties as a director. In the event that the foregoing occurs for any reason, prior to the election, the persons indicated on the enclosed form of
proxy reserve the right to vote for another candidate of their choice unless otherwise instructed by the Shareholder in the form of proxy to abstain from voting on the election of directors. 

Each director elected at the Meeting will hold office until the next annual meeting or until his or her successor is duly elected or
appointed. 
 In order for the resolution to be passed, approval by the majority of the votes cast by all of the holders of Common Shares,
present in person and by proxy at the Meeting, is required. 
  

									
	 Name, Municipality

of Residence and Title
	  	
Principal Occupation for the Past Five (5) Years
	  	 Director of the

Corporation Since
	  	Number of Shares
Beneficially Owned,
Directly or Indirectly,
Controlled or Directed	 
	 Sébastien St-Louis

Ottawa, Ontario
 President and Chief Executive Officer and
director
	  	President, Co-Founder and Chief Executive Officer of the Corporation since August 13, 2013.	  	August 13, 2013	  	 	3,774,030	(3)  
	 	 	 	 
	 Adam Miron
 Ottawa, Ontario

Chief Brand Officer and director
	  	Chief Brand Officer of the Corporation since August 13, 2013.	  	August 13, 2013	  	 	3,355,916	(4)  
	 	 	 	 
	 Dr. Michael Munzar(2)

Westmount, Québec
 Director
	  	Medical Director of Statcare medical clinic since 2004. Vice President and board member of Medical and Regulatory Affairs at Osta since 2005.	  	November 17, 2014	  	 	1,850,866	(5)  

  
 5 

									
	 Name, Municipality

of Residence and Title
	  	
Principal Occupation for the Past Five (5) Years
	  	 Director of the

Corporation Since
	  	Number of Shares
Beneficially Owned,
Directly or Indirectly,
Controlled or Directed	 
				
	 Jason Ewart (1)

Cobourg, Ontario
 Director
	  	Chief Executive Officer and Chief Operating Officer of Fountain Capital Corporation from 2003 until October 2017. Director and Executive Vice-President of Uptempo Inc. since April 18, 2018.	  	November 17, 2014	  	 	Nil	 
				
	 Vincent Chiara (1)(2)

Montréal, Québec
 Director
	  	President and sole owner of Groupe Mach Inc. since 1999.	  	November 4, 2016	  	 	7,727,632	(6)  
	 	 	 	 
	 Nathalie Bourque (1)(2)

Montréal, Québec
 Director
	  	Vice-President, Public Affairs and Global Communications at CAE from 2005 until February 2015.	  	October 4, 2017	  	 	72,727	 

 Notes: 
  

	 	(1)	 Member of the Audit Committee. 

	 	(2)	 Member of the Human Resource and Corporate Governance Committee. 

	 	(3)	 Includes 3,546,198 Common Shares owned of record by 8375739 Canada Inc., which is owned and controlled by Mr. St-Louis. 

	 	(4)	 Such Common Shares are held by a corporation owned and controlled by Mr. Miron. 

	 	(5)	 Includes 1,710,866 Common Shares held by a corporation owned and controlled by Dr. Munzar.

	 	(6)	 7,662,932 of such Common Shares are held by corporations owned and controlled by Mr. Chiara.

 There are no contracts, arrangements or understandings between any nominee and any other person (other than the
directors and officers of the Corporation acting solely in such capacity) pursuant to which the nominee has been or is to be elected as a director. 

As of the date hereof, the proposed directors of the Corporation as a group (six persons) beneficially owned, or exercised control or
direction over, 16,781,171 Common Shares, or approximately 8.47% of the outstanding Common Shares. 
 The following are brief biographies of
each of the proposed director nominees: 
 Sébastien St-Louis, President, Chief Executive
Officer and Director. Sébastien St-Louis is an entrepreneur with strong leadership abilities, financial acumen and operational expertise. Sébastien has wide-ranging business experience in
manufacturing, distribution, trade finance and commercial lending. He has advised Canadian business owners and CEOs across multiple industry sectors, while structuring and closing $200 million in financing to support their export and growth
initiatives. Sébastien co-founded HEXO Corp. with one goal in mind: to create a world-class company based on the highest standards of product quality and safety. Since 2013, he has secured more than
$260 million in financing for the company. His leadership has been instrumental in navigating the company through regulatory, financing and start-up challenges en route to becoming the only significant
licensed cannabis producer in Québec and, upon completion of two fully funded expansion projects currently underway, one of the largest in Canada. Sébastien holds an MBA in Finance from the Université du Québec à
Montréal and completed his Bachelor of Arts (Economics) from the University of Ottawa in 18 months. 
 Adam Miron, Chief Brand
Officer and Director. Mr. Miron has been the Chief Brand Officer of HEXO since August 2013. Mr. Miron is the co-founder of iPolitics.ca and was its Chief Information Officer from 2010 to 2013. He
was also the National Director of the Federal Liberal Commission from 2007 to 2009 and was responsible for the Liberal Party of Canada’s online election campaigns. He has experience with online marketing and sales, and brand development.
Mr. Miron has also run political campaigns in Canada and abroad. 
 Dr. Michael Munzar, Director.
Dr. Munzar is a clinician and is currently serving as Medical Director of Statcare medical clinic in Pointe-Claire, Québec. In addition, Dr. Munzar is on the board of directors of Osta Biotechnologies Inc. and has held the position
of Vice-President of Medical and Regulatory Affairs at Osta since 2005. He served as Medical Director of Nymox Pharmaceutical Corporation (NASDAQ:NYMX) from 1996 to 2004 and as the President of Serex Inc., a wholly owned subsidiary of Nymox, from
2000 to 2004. Dr. Munzar has experience in the regulatory development of drugs and medical devices. He obtained his MDCM from McGill University in 1979. 

  
 6 

 Jason Ewart, Director. Mr. Ewart is a corporate director who was the co-founder and the former Chief Executive Officer and Chief Operating Officer of Fountain Capital Corporation from 2003 until October 2017. Mr. Ewart was a market analyst with A&E Capital Funding Inc. and
Bradstone Equity Partners Inc. between 1998 and 2002 and Vice-President of Quest Investment Corporation between 2002 and 2003. He is now Executive Vice-President of Toronto based Uptempo Inc., a U.S. fintech company that offers an open banking
platform that improves the financial journey for consumers with an active guidance financial dashboard. He has experience with bridge financing, financial analysis, quantitative modelling, equities trading and mergers and acquisitions.
Mr. Ewart is a member of the Institute of Corporate Directors (ICD) in Canada and a Director for the non-profit Northumberland Community Futures Development Corporation, which provides financing and
strategic guidance to entrepreneurs. Mr. Ewart holds an economics degree from McGill University. 
 Vincent Chiara, Director.
Mr. Chiara is the President and sole owner of Groupe Mach Inc. (“Mach”). He began his career in 1984 as a lawyer specializing in real estate transactions and corporate litigation. In 1999, he ceased practicing law and focused
on real estate acquisitions and property development through Mach, a private holding company. Mach and its affiliates hold significant investments representing approximately 26 million sq. ft. of real estate (office, retail, residential,
industrial and hotel) located primarily in Montreal and Québec City, including the Stock Exchange Tower, the CIBC Tower, the Sun Life Building, the CBC Tower and the University Complex. Mach continues to acquire and redevelop properties
across North America while maintaining its institutional reputation within the market. 
 Nathalie Bourque, Director.
Ms. Bourque is a member of the boards of directors of Alimentation Couche-Tard Inc. and Héroux-Devtek Inc. She held the position of Vice-President, Public Affairs and Global Communications at CAE Inc. (“CAE”) from 2005 until
her retirement in February 2015. Prior to joining CAE, Ms. Bourque was a partner at NATIONAL Public Relations where she was responsible for numerous clients in the financial, biopharmaceutical, retail and entertainment areas. Previously, she
worked for various communications companies and has also worked for accounting firms in marketing. She was a member of the Board of Financial Services of the Caisse de dépôt et placement du Québec and Horizon Science and
Technology. She also served as President of the MBA Association and Le Cercle Finance et Placement du Québec. She was also a Governor of McGill University and was on the board of Maison Marie Vincent. Ms. Bourque has a BA from Laval
University and an MBA from McGill University. 
 Majority Voting for Election of Directors 

The Board has adopted a “majority voting” policy. Pursuant to this policy, if a nominee for election as director receives
“for” votes fewer than a majority of the votes (50% + 1 vote) cast with respect to his or her election by Shareholders, he or she must immediately tender his or her resignation to the Board following the meeting of Shareholders at which
the election is held. Upon receiving such resignation, the Human Resource and Corporate Governance Committee will consider it and make a recommendation to the Board on whether or not to accept the resignation. The Board shall accept the resignation
absent exceptional circumstances and announce its decision in a press release promptly within 90 days following the meeting of Shareholders. If the Board determines not to accept a resignation, the press release must fully state the reasons for that
decision. The resignation will be effective when accepted by the Board. The director who tendered his or her resignation is not permitted to be a part of any deliberations of the Human Resource and Corporate Governance Committee or of the Board
pertaining to the resignation offer. The policy only applies in circumstances involving an uncontested election of directors. 
 Cease Trade Orders,
Bankruptcies, Penalties or Sanctions 
 To the knowledge of the Corporation, no director or executive officer of the Corporation is,
as of the date of this Circular, or has been within the last ten (10) years of the date of this Circular, a director, chief executive officer or chief financial officer or any company that while acting in such capacity: (a) was subject to
a cease trade order, a similar order or an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than thirty (30) consecutive days; or (b) was subject to a cease
trade order, a similar order or an order that denied the relevant company access to any exemption under securities legislation that was in effect for a period of more than thirty (30) consecutive days, that was issued after the director or
executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that 

  
 7 

 
occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer; or (c) within a year of that person ceasing to act in that capacity,
became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold
its assets, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed director. 

To the knowledge of the Corporation, no director or executive officer of the Corporation has, within the ten (10) years before the date
of this Circular, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a received, receiver manager or
trustee appointed to hold the assets of the director or executive officer. 
 To the knowledge of the Corporation, no director or executive
officer of the Corporation, has been subject to: (i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities
regulatory authority; or (ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision. 

 

	3.	 Appointment of Auditors 

MNP LLP (“MNP”) have been the auditors of the Corporation since January 17, 2018. At the Meeting, Shareholders will be
requested to reappoint MNP as auditors of the Corporation to hold office until the next annual meeting of Shareholders or until a successor is appointed, and to authorize the directors to fix the auditors’ remuneration. In order for the
resolution to be passed, approval by the majority of the Common Shares voted in respect thereof at the Meeting is required. 
 Absent
contrary instructions, proxies given pursuant to this solicitation by the management of the Corporation will be voted “FOR” the appointment of MNP as the auditors of the Corporation to hold office until the next annual meeting of
Shareholders or until a successor is appointed and the authorization of the directors to fix the remuneration of the auditors. 

STATEMENT OF EXECUTIVE COMPENSATION 

Compensation Discussion and Analysis 
 The
purpose of this Compensation Discussion and Analysis is to describe and explain all significant elements of compensation awarded to, earned by, paid to, or payable to the Corporation’s “Named Executive Officers” for the
Corporation’s fiscal year ended July 31, 2018, including: the Corporation’s philosophy, objectives and processes regarding their compensation; the elements of their compensation; and how the Corporation determines their compensation.

 The Corporation’s “Named Executive Officers” consist of the Chief Executive Officer, the Chief Financial Officer and each
of the three most highly compensated executive officers of the Corporation other than the Chief Executive Officer and Chief Financial Officer, whose total compensation was, individually, more than $150,000 (each a “Named Executive
Officer” and collectively, the “Named Executive Officers”). For the fiscal year ended July 31, 2018, the Corporation’s Named Executive Officers are comprised of: (i) Sébastien St-Louis, the Corporation’s President and Chief Executive Officer; (ii) Ed Chaplin, the Corporation’s Chief Financial Officer; (iii) Adam Miron, the Corporation’s Chief Brand Officer;
(iv) James McMillan, the Corporation’s Vice President, Business Development; and (v) Dr. Terry Lake, the Corporation’s Vice President, Corporate Social Responsibility. No management functions of the Corporation are performed
by a person or company other than the directors and executive officers of the Corporation. 
 Compensation Philosophy and Objectives 

The Corporation’s executive compensation program is designed to provide short and long-term rewards to the Corporation’s executives
that are consistent with individual and corporate performance and their contribution to 

  
 8 

 
the Corporation’s short and long-term objectives. The objectives of the Corporation with respect to compensation of executive officers are to provide compensation levels necessary to attract
and retain high quality executives, and to motivate key executives to contribute to the interests of the Corporation. These objectives are to be met by the principal components of the Corporation’s executive compensation program, which has been
focused on a combination of base compensation, bonus remuneration and long-term incentives in the form of stock options or other security-based compensation. 

The executive compensation program adopted by the Corporation and applied to its executive officers is designed to attract and retain
qualified and experienced executives who will contribute to the growth and success of the Corporation. The executive compensation program attempts to ensure that the compensation of the senior executive officers provides a competitive base
compensation package and a strong link between corporate performance and compensation. Senior executive officers are motivated through the program to enhance long-term shareholder value and rewarded for their yearly individual contribution in the
context of overall annual corporate performance. 
 Compensation Governance 

For fiscal year 2018, all executive compensation was determined and administered by the Board based on recommendations from management of the
Corporation. Going forward, the Human Resource and Corporate Governance Committee (the “HR & CG Committee”) will make recommendations to the Board with respect to executive compensation. For additional
information on the HR & CG Committee, see “Corporate Governance and Audit Committee Disclosure – Board Committees—Human Resource and Corporate Governance Committee”. 

To assist in reviewing and determining executive compensation, in March 2018 the Board retained Wilkinson Consulting Group Inc.
(“Wilkinson”), an independent compensation consultant, to recommend market competitive compensation for the Chief Executive Officer, Chief Financial Officer, Chief Brand Officer, Chief Operating Officer and Vice President, Business
Development, as well as the directors of the Corporation. Wilkinson’s review focused on comparing the Corporation’s compensation practices with those of a comparator group for the Corporation consisting of 12 companies in the controlled
substance sector or in similar geographic areas, and providing recommendations resulting from this review in relation to certain executive and director compensation matters. The following table sets out the aggregate fees billed by Wilkinson for its
services related to determining compensation for the Corporation’s directors and executive officers for the two most recently completed financial years of the Corporation: 

 

									
	 	  	Year Ended
July 31, 2018	 	  	Year Ended
July 31, 2017	 
	 Executive Compensation-Related Fees
	  	$	21,617	 	  	 	Nil	 
	 All Other Fees
	  	 	Nil	 	  	 	Nil	 

 Compensation Components 

The executive compensation program during the fiscal year ended July 31, 2018 consisted of three principal components: base salaries,
annual incentive compensation and benefits, and long-term compensation in the form of stock options. 
 Base Salaries 

Base salary is reflective of responsibilities and annual increases should, at a minimum, reflect inflationary pressures and changes in duties.
At the date of hire, base salary is determined using a number of factors including industry comparators and relevant experience and is set out in the employment agreement. Annual increases are determined based upon reference to data on compensation
levels of executives in comparable companies as well as the annual performance evaluation and underlying economic circumstances. 

  
 9 

 Annual Incentive Compensation and Benefits 

Cash bonuses are awarded to recognize the achievement of annual corporate objectives and to recognize contributions that enhance the intrinsic
value of the Corporation. Benefits commensurate with those available to all employees of the Corporation are available to executive officers. 

The annual incentive plan is a cash performance plan under which a payment is made to executives, quarterly, annually or upon the achievement
of specific objectives, based on the achievement of established corporate and individual goals and objectives. 
 The Chief Executive
Officer’s employment agreement with the Corporation provides for a bonus program once the Corporation achieves profitability and which will pay out to the Chief Executive Officer a bonus equal to 5% of the Corporation’s earnings before tax
for each fiscal year, as such earnings are reflected in the financial statements of such year. The bonus is payable is a lump sum within 30 days of receipt of the financial statements for such year. There has been no payout to date under this bonus
provision. 
 Long-Term Compensation 

The long-term component of compensation for executive officers, including the Named Executive Officers, is based on stock options or other
security-based compensation. This component of compensation is intended to reinforce management’s commitment to long term improvements in the Corporation’s performance. 

The Board believes that incentive compensation in the form of stock option grants and other security-based compensation awards which vest over
time, is and has been beneficial and necessary to attract and retain both senior executives and managerial talent at other levels. Furthermore, the Board believes stock option grants and other security-based compensation awards are an effective
long-term incentive vehicle because they are directly tied to share price over a longer period, generally 10 years, and motivate executives to deliver sustained long term performance and increase shareholder value, and have a time horizon that
aligns with long-term corporate goals. 
 As part of the Corporation’s evolving compensation practices, the Board adopted a new
omnibus long-term incentive plan for the Corporation (the “Omnibus Plan”) on June 27, 2018. Prior to the adoption of the Omnibus Plan, the sole security-based compensation plan which the Corporation had available for
security-based compensation purposes was its existing stock option plan (the “Previous Option Plan”), pursuant to which the Board was able to grant stock options as compensation. With the growth of the Corporation’s business
since the adoption of the Previous Option Plan, the Board determined it was in the best interests of the Corporation to adopt a new security-based compensation plan which would provide the Board with the ability and flexibility to make broader and
different forms of equity rewards as part of its need to retain a competitive compensation structure for its directors, officers, executives, employees, consultants and service providers. 

Consequently, the Board adopted the Omnibus Plan as a means to grant or award not only stock options (“Options”), but also
restricted shares (“Restricted Shares”), restricted share units (“RSUs”), deferred share units (“DSUs”), share appreciation rights (“SARs”) and retention awards (“Retention
Awards”, and together with the Options, the Restricted Shares, the RSUs, the DSUs and the SARs, “Awards”) to directors, officers, senior executives and other employees of the Corporation or a subsidiary, consultants and
service providers providing ongoing services to the Corporation and its affiliates (“Eligible Participants”, and when such Eligible Participants are granted Awards, “Participants”) in order to attract, retain and
motivate such persons as individuals whose skills, performance and loyalty to the objectives and interests of the Corporation are necessary to the Corporation’s success, to incentivize them to continue their services for the Corporation, and to
align their interests with those of the Corporation. For additional details on the Omnibus Plan, see “Security-Based Compensation Plans”. 

Benchmarking 
 As previously noted, the
Corporation’s approach with respect to compensation for executive officers has been assessed against a comparator group suggested by Wilkinson consisting of 12 companies in the controlled substance sector or in a similar geographic area (the
“Comparator Group”). The Comparator Group consisted of the following: 

  
 10 

							
	 Company
	  	Selection Criteria	  	Market
Capitalization(1)	 
	 Aphria Inc.
	  	Controlled substance sector	  	$	2.31 billion	 
	 Aurora Cannabis Inc.
	  	Controlled substance sector	  	$	5.25 billion	 
	 Canopy Growth Corporation
	  	Controlled substance sector	  	$	5.63 billion	 
	 Cipher Pharmaceuticals Inc.
	  	Controlled substance sector	  	$	107 million	 
	 Corby Spirit and Wine Limited
	  	Controlled substance sector	  	$	591 million	 
	 Cronos Group Inc.
	  	Controlled substance sector	  	$	1.45 billion	 
	 Emerald Health Therapeutics Inc.
	  	Controlled substance sector	  	$	652 million	 
	 MedReleaf Corp.
	  	Controlled substance sector	  	$	1.69 billion	 
	 Mitel Networks Corporation
	  	Similar geographic area	  	$	1.00 billion	 
	 Neptune Technologies & Bioressources Inc.
	  	Similar geographic area	  	$	220 million	 
	 Organigram Holdings Inc.
	  	Controlled substance sector	  	$	519 million	 
	 The Supreme Cannabis Company Inc.
	  	Controlled substance sector	  	$	525 million	 

 Note: 
  

	 	(1)	 Approximate market capitalization as of the time of Wilkinson’s report in March 2018. The median market
capitalization of the Comparator Group was $830 million while the Corporation’s market capitalization at the time was approximately $694 million. 

Risk Analysis 
 As part of its
review of the Corporation’s compensation policies and practices, the HR & CG Committee considers the implications of risks associated with the Corporation’s compensation policies and practices. The HR & CG Committee keeps
itself apprised of the current compensation policies of companies in the same space and also draws upon the committee members’ backgrounds with other issuers to help identify and mitigate compensation policies and practices that could encourage
a Named Executive Officer or individual at a principal business unit or division to take inappropriate or excessive risks. As of the date hereof, the HR & CG Committee is not aware of any material risks arising from the Corporation’s
current compensation policies or practices that would be reasonably likely to have a material adverse effect on the Corporation. 
 Restrictions on
Hedging 
 The Corporation has not adopted a policy restricting its Named Executive Officers and directors from purchasing financial
instruments, including, for greater certainty, prepaid variable forward contracts, equity swaps, collars or units of exchange funds, that are designed to hedge or offset a decrease in market value of equity securities granted as compensation or
held, directly or indirectly, by a Named Executive Officer or director. 
 Performance Graph 

The following graph compares the total cumulative shareholder return for $100.00 invested in the Corporation’s Common Shares during the
period from March 21, 2017, the date when the Corporation’s Common Shares started trading on the TSX Venture Exchange following the completion of the going public business combination transaction (the “Qualifying
Transaction”) by The Hydropothecary Corporation (“Predecessor THCX”), the predecessor to the Corporation, with BFK Capital Corp., to July 31, 2018, the end of the Corporation’s most recently completed financial
year, with the cumulative total return of the S&P/TSX Composite Index for the same period. 

  
 11 

 

 
 The trend shown by the above graph is a significant positive total cumulative return for a Shareholder
since Predecessor THCX went public in March 2017. During the same period, total compensation received by the Named Executive Officers increased in line with this trend as Predecessor THCX went public, raised substantial capital and significantly
expanded its business. Based on the growth and results of the Corporation over this period and the return to Shareholders, no material misalignment exists between the compensation of the Named Executive Officers and the return to Shareholders. 

Summary Compensation Table 
 The following
table sets out the compensation for the Corporation’s Named Executive Officers for the years ended July 31, 2018, July 31, 2017 and July 31, 2016: 
  

																																					
	 Name and Principal Position
	  	Fiscal
Year	 	  	Salary
($)(9)	 	  	Share-
Based
Awards
($)	 	  	Option-
Based
Awards ($)(7)	 	  	Non-Equity Incentive
Plan Compensation ($)	 	  	Pension
Value
($)	 	  	All Other
Compensation
($)(8)	 	  	Total
Compensation
($)	 
	  	Annual
Incentive
Plans	 	  	Long-
Term
Incentive
Plans	 
	 Sebastien St-Louis(1)(2)

Chief Executive Officer
	  	 
 
 
	2018
 2017

2016
	 
  
  
	  	$
 $
 $
	327,308
 177,209

125,000
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
 $
  
	1,180,254
 191,875

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
 $
  
	30,691
 6,522

Nil
	 
  
  
	  	$
 $
 $
	1,521,332
 375,606

125,000
	 
  
  

										
	 Ed Chaplin(1)(3)

Chief Financial Officer
	  	 
 
 
	2018
 2017

2016
	 
  
  
	  	$
 $
 $
	259,952
 153,211

125,000
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
  
 $
	322,493
 Nil

181,722
	 
  
  
	  	$
 $
  
	18,750
 118,750

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
 $
 $
	601,195
 271,961

306,722
	 
  
  

										
	 Adam Miron(1)(4)

Chief Brand Officer
	  	 
 
 
	2018
 2017

2016
	 
  
  
	  	$
 $
 $
	254,846
 135,363

125,000
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
  
 
	229,331
 Nil

Nil
	 
  
  
	  	$
 $
  
	22,500
 22,500

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
 $
  
	32,230
 6,522

Nil
	 
  
  
	  	$
 $
 $
	556,177
 164,385

125,000
	 
  
  

										
	 James McMillan(1)(5)

Vice-President, Business Development
	  	 
 
 
	2018
 2017

2016
	 
  
  
	  	$
 $
 $
	175,576
 135,000

135,000
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
 $
  
	81,512
 96,751

Nil
	 
  
  
	  	$
 $
 $
	150,000
 48,941

24,017
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
 $
 $
	407,088
 280,692

159,017
	 
  
  

										
	 Terry Lake(6)

Vice-President, Corporate Social Responsibility
	  	 
 
 
	2018
 2017

2016
	 
  
  
	  	$
  
 
	233,285
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
  
 
	203,838
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	 
 
 
	Nil
 Nil

Nil
	 
  
  
	  	$
  
 
	437,123
 Nil

Nil
	 
  
  

  
 12 

 Notes: 
  

	 	(1)	 The compensation in this table is presented for the three most recently completed financial years of the
Corporation. However, some or all of the compensation in previous years was paid or awarded by Predecessor THCX before it completed the Qualifying Transaction with BFK Capital Corp. in March 2017. The compensation in this table is presented on a
consolidated basis. 

	 	(2)	 Mr. St-Louis was appointed President and Chief Executive
Officer of the Corporation on March 15, 2017 upon completion of the Qualifying Transaction. Prior to completion of the Qualifying Transaction, Mr. St-Louis was the Chief Executive Officer of
Predecessor THCX. 

	 	(3)	 Mr. Chaplin was appointed Chief Financial Officer of the Corporation on March 15, 2017 upon
completion of the Qualifying Transaction. Prior to completion of the Qualifying Transaction, Mr. Chaplin was the Chief Financial Officer of Predecessor THCX. 

	 	(4)	 Mr. Miron was appointed Chief Brand Officer of the Corporation on March 15, 2017 upon completion
of the Qualifying Transaction. Prior to completion of the Qualifying Transaction, Mr. Miron was the Chief Brand Officer of Predecessor THCX. 

	 	(5)	 Mr. McMillan was appointed Vice-President, Business Development of the Corporation on March 15,
2017 upon completion of the Qualifying Transaction. Prior to completion of the Qualifying Transaction, Mr. McMillan was the Vice-President, Business Development of Predecessor THCX. 

	 	(6)	 Dr. Terry Lake was appointed Vice-President, Corporate Social Responsibility of the Corporation on
September 4, 2017. 

	 	(7)	 Based on the grant date fair value calculated using the Black Scholes Merton model. The Corporation chose
the Black Scholes Merton model because it is a commonly used and accepted method of calculating grant date fair value. Details of these calculations are included in Note 10 of the Corporation’s audited financial statements for the year ended
July 31, 2018. 

	 	(8)	 Relates to cash compensation received for director fees. Messrs.
St-Louis and Miron will no longer receive director fees after July 31, 2018. 

	 	(9)	 Inclusive of benefits and bonus amounts. 

Incentive Plan Awards 
 Outstanding Share-Based
Awards and Option-Based Awards 
 The following table sets out information concerning all outstanding share-based awards and
option-based awards granted by the Corporation to the Corporation’s Named Executive Officers as at July 31, 2018. 
  

																											
	 	  	Option-Based Awards	 	  	Share-Based Awards	 
	 Name
	  	Number of
Securities
Underlying
Unexercised
Options
(#)	 	  	Option
Exercise
Price
($)	 	  	Option
Expiration Date	  	Value of
Unexercised
In-The-Money
Options(1)(2)
($)	 	  	Number of
Shares or Units
of Shares Not
Vested (#)	 	  	Market or
Payout
Value of
Share-Based
Awards Not
Vested ($)	 	  	Market or
Payout
Value of
Vested
Share-Based
Awards Not
Paid Out or
Distributed
($)	 
	 Sebastien St-Louis

Chief Executive Officer
	  	 
 
 

	75,000
 187,500

1,000,000
 1,600,000
	 
  
  

 
	  	$
 $
 $

$
	0.16
 0.75

2.69
 4.89
	 
  
  

 
	  	May 29, 2024
 Nov 24, 2026

Dec 4, 2027
 Jul 11, 2028
	  	$
 $
 $

 
	314,250
 675,000

1,660,000
 Nil
	 
  
  

 
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
								
	 Ed Chaplin

Chief Financial Officer
	  	 
 
 

	150,000
 450,000

150,000
 350,000
	 
  
  

 
	  	$
 $
 $

$
	0.58
 0.75

2.69
 4.89
	 
  
  

 
	  	Nov 16, 2024
 Apr 19, 2026

Dec 4, 2027

Jul 11, 2028
	  	$
 $
 $

 
	565,500
 1,620,000

249,000
 Nil
	 
  
  

 
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
								
	 Adam Miron,

Chief Brand Officer
	  	 
 
 
	150,000
 75,000

350,000
	 
  
  
	  	$
 $
 $
	0.16
 2.69

4.89
	 
  
  
	  	May 29, 2019
 Dec 4, 2027

Jul 11, 2028
	  	$
 $
  
	628,500
 124,500

Nil
	 
  
  
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 

  
 13 

																											
	 	  	Option-Based Awards	 	  	Share-Based Awards	 
	 Name
	  	Number of
Securities
Underlying
Unexercised
Options
(#)	 	  	Option
Exercise
Price
($)	 	  	Option
Expiration Date	  	Value of
Unexercised
In-The-Money
Options(1)(2)
($)	 	  	Number of
Shares or Units
of Shares Not
Vested (#)	 	  	Market or
Payout
Value of
Share-Based
Awards Not
Vested ($)	 	  	Market or
Payout
Value of
Vested
Share-Based
Awards Not
Paid Out or
Distributed
($)	 
								
	 James McMillan

Vice-President, Business

Development
	  	 
 
 

	150,000
 150,000

25,000
 175,000
	 
  
  

 
	  	$
 $
 $

$
	0.58
 0.75

1.27
 4.89
	 
  
  

 
	  	Jul 5, 2025
 Nov 14, 2026

Jul 24, 2027
 Jul 11, 2028
	  	$
 $
 $

 
	565,500
 540,000

77,000
 Nil
	 
  
  

 
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
								
	 Terry Lake

Vice-President, Corporate Social Responsibility
	  	 
 
	325,000
 175,000
	 
  
	  	$
 $
	1.37
 4.89
	 
  
	  	Sept 8, 2027
 Jul 11, 2028
	  	$
  
	968,500
 Nil
	 
  
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 

 Note: 
  

	 	(1)	 “Value of unexercised
in-the-money options” is calculated by determining the excess of the market value of the Corporation’s Common Shares on July 31, 2018 on the TSX, being
$4.35, over the exercise price of the options. 

 Incentive Plan Awards – Value Vested or Earned During the Year 

The following table sets out information concerning all share-based awards and option-based awards granted by the Corporation to the Named
Executive Officers which were earned or have vested during the most recently completed financial year. 
  

													
	 Name
	  	Option-Based Awards –
Value Vested
During the Year(1)
($)	 	  	Share-Based Awards –
Value Vested During
the Year
($)	 	  	Non-Equity Incentive
Plan Compensation –
Value Earned
During the Year ($)	 
	 Sebastien St-Louis

President and Chief Executive Officer
	  	$	1,180,254	 	  	 	Nil	 	  	 	Nil	 
	 Ed Chaplin

Chief Financial Officer
	  	$	322,493	 	  	 	Nil	 	  	$	18,750	 
	 Adam Miron

Chief Brand Officer
	  	$	628,500	 	  	 	Nil	 	  	$	22,500	 
	 James McMillan

Vice-President, Business Development
	  	$	81,512	 	  	 	Nil	 	  	$	150,000	 
	 Terry Lake

Vice-President, Corporate Social Responsibility
	  	$	203,838	 	  	 	Nil	 	  	 	Nil	 

 Note: 
  

	 	(1)	 Based on the grant date fair value calculated using the Black Scholes Merton model. The Corporation chose
the Black Scholes Merton model because it is a commonly used and accepted method of calculating grant date fair value. Details of these calculations are included in Note 10 of the Corporation’s audited financial statements for the year ended
July 31, 2018. 

  
 14 

 Pension Plan Benefits 

The Corporation has an RSP and a DPSP, both of which are available to the Named Executive Officers on a voluntary basis. The Corporation does
not otherwise have any pension plans that provide for payments or benefits at, following, or in connection with retirement to the Named Executive Officers. 

Termination and Change of Control Benefits 

Other than as disclosed below, none of the Named Executive Officers were entitled to any payments following or in connection with any
termination, resignation, retirement, change in control or change in the responsibilities of the Named Executive Officers. 
 Termination Payments

 Sébastien St-Louis entered into an employment contract with the Corporation on
May 16, 2014, and this employment agreement was amended on November 9, 2016 and again on December 11, 2017 and March 5, 2018 (the “St-Louis Agreement”). The St-Louis Agreement has an indefinite term. Either party may terminate the St-Louis Agreement with certain periods of advance notice. The
St-Louis Agreement provides for an eighteen (18) month non-competition clause. In the event that the Corporation terminates
Mr. St-Louis without cause, he is entitled to a lump sum severance payment equal to eighteen (18) months’ salary, minus any statutory deductions and amounts owing by Mr. St-Louis to the Corporation. In addition, upon termination without cause, Mr. St-Louis is entitled to an additional amount equal to the bonus of 5% of the
Corporation’s earnings before tax which would be payable to him over the eighteen (18) month period subsequent to the date of termination calculated on a proportionate basis. 

Ed Chaplin entered into an employment contract with the Corporation on October 1, 2014, as amended (the “Chaplin
Agreement”). The Chaplin Agreement has an indefinite term. Either party may terminate the Chaplin Agreement with certain periods of advance notice. The Chaplin Agreement provides for a twelve (12) month non-competition clause. In the event that the Corporation terminates Mr. Chaplin without cause, he is entitled to a lump sum severance payment equal to twelve (12) months’ salary, minus any statutory
deductions and amounts owing by Mr. Chaplin to the Corporation. 
 Adam Miron entered into an employment contract with the Corporation
on May 16, 2014, as amended (the “Miron Agreement”). The Miron Agreement has an indefinite term. Either party may terminate the Miron Agreement with certain periods of advance notice. The Miron Agreement provides for a twelve
(12) month non-competition clause. In the event that the Corporation terminates Mr. Miron without cause, he is entitled to a lump sum severance payment equal to twelve (12) months’ salary,
minus any statutory deductions and amounts owing by Mr. Miron to the Corporation. 
 James McMillan entered into an employment contract
with the Corporation on July 6, 2015, as amended (the “McMillan Agreement”). The McMillan Agreement has an indefinite term. Either party may terminate the McMillan Agreement with certain periods of advance notice. The
McMillan Agreement provides for a six (6) month non-competition clause. 
 Dr. Terry Lake
entered into an employment contract with the Corporation on September 5, 2017 (the “Lake Agreement”). The Lake Agreement has an indefinite term. Either party may terminate the Lake Agreement within certain periods of advance
notice. The Lake Agreement provides for a six (6) month non-competition clause. 
 The
following table sets out estimated payments that would be made to the Named Executive Officers in the event of the termination of their employment by the Corporation without cause as at July 31, 2018: 

 

							
	 Named Executive Officer
	  	 Severance Payments
	  	Total
Estimated
Payment(1)	 
	 Sébastien St-Louis
	  	18 months	  	$	450,000	 
	 Ed Chaplin
	  	12 months	  	$	225,000	 

  
 15 

							
	 Named Executive Officer
	  	 Severance Payments
	  	Total
Estimated
Payment(1)	 
	 Adam Miron
	  	12 months	  	$	220,000	 
	 James McMillan
	  	One month / year of service	  	$	50,000	 
	 Dr. Terry Lake
	  	One month / year of service	  	$	16,250	 

 Note: 
  

	 	(1)	 Severance payments based on salary and bonus. Amounts do not include benefits or value of unvested in-the-money options which may become vested as a result of termination without cause. See “Incentive Plan Awards - Outstanding Share-Based Awards and
Option-Based Awards” for details on the total value of the in-the-money options held by the Named Executive Officers as at July 31, 2018.

 Change of Control Payments 

On December 11, 2017 and on March 5, 2018, based on a recommendation from the HR & CG Committee and approved by the Board,
an amendment to Mr. St-Louis’ employment contract was issued. This amendment provides for certain payments which would be payable to Mr. St. Louis in the event of a change of control in the
Corporation. Under these amendments, the Corporation will be required to make payments to the Mr. St-Louis in the event that there is a change of control and either: (a) the executive’s
employment is terminated by the Corporation on or within twenty-four (24) months of the change of control; or (b) there is a material change in the executive’s duties and responsibilities on or within twenty-four (24) months of
the change of control such that the executive is required to assume duties that are not consistent with, or to relinquish responsibilities that are consistent with, those customarily and usually performed by an individual in the executive’s
position and the duties and responsibilities previously performed by the executive, and the executive resigns from his employment as a result. The payment payable to Mr. St-Louis in the event of a change
of control will be, in addition to unpaid salary, bonus and vacation pay, a lump sum equal to $3,000,000 plus the total of twenty-four (24) months’ salary plus the bonus earned by Mr. St-Louis
over the twenty-four (24) month period preceding his termination or resignation. In addition, upon a change of control, the vesting of all unvested stock options held by Mr. St-Louis will accelerate
and such options will become vested and exercisable immediately upon the executive’s termination or resignation for a period of ninety (90) days. 

Based on recommendations from the HR & CG Committee which have been approved by the Board, the Corporation has amended its employment
contracts with Ed Chaplin and Adam Miron on December 11, 2017 and with James MacMillan on June 27, 2018. As senior executives of the Corporation, the amendment provides for certain payments which would be payable to them in the event of a
change of control in the Corporation. Under these amendments, the Corporation will be required to make payments to the executives in the event that there is a change of control and either: (a) the executive’s employment is terminated by
the Corporation on or within twenty-four (24) months of the change of control; or (b) there is a material change in the executive’s duties and responsibilities on or within twenty-four (24) months of the change of control such
that the executive is required to assume duties that are not consistent with, or to relinquish responsibilities that are consistent with, those customarily and usually performed by an individual in the executive’s position and the duties and
responsibilities previously performed by the executive, and the executive resigns from his employment as a result. The payments payable to each of the executives in the event of a change of control will be a lump sum equal to the total of
twenty-four (24) months’ salary plus the bonus earned by the executive over the twenty-four (24) month period preceding the executive’s termination or resignation. In addition, upon a change of control, the vesting of all
unvested stock options held by each of the executives will accelerate and such options will become vested and exercisable immediately upon the executive’s termination or resignation for a period of ninety (90) days. 

“Change of control” is defined under these agreements to mean the occurrence of any one or more of the following transactions,
whether accomplished in a single transaction or series of transactions: (i) any sale, exchange, conveyance or other disposition of securities of the Corporation (other than through the issuance of equity securities by the Corporation as part of
a financing transaction), in a transaction or series of related transactions after giving effect to which more than fifty percent (50%) of the voting power or equity value of the Corporation is held by holders of shares of the Corporation who were
not shareholders (or affiliates thereof) immediately prior to the first of such transactions; (ii) a sale, lease, transfer, exclusive license or other disposition of all or substantially all of the Corporation’s assets (other than a sale,
lease, transfer, exclusive license or other disposition to a wholly-owned subsidiary of the Corporation); (iii) a merger or consolidation involving the Corporation; or (iv) any similar transaction or series of transactions. 

  
 16 

 The following table sets out estimated payments that would be made to the Named Executive
Officers in the event of the termination of their employment by the Corporation following a change of control as at July 31, 2018: 
  

							
	 Named Executive Officer
	  	Severance Payments	  	Total
Estimated
Payment(1) 	 
	 Sébastien St-Louis
	  	18 months	  	$	3,600,000	 
	 Ed Chaplin
	  	12 months	  	$	587,500	 
	 Adam Miron
	  	12 months	  	$	485,000	 
	 James McMillan
	  	One month / year of service	  	$	598,941	 
	 Dr. Terry Lake
	  	N/A	  	 	N/A	 

 Note: 
  

	 	(1)	 Change of control payments based on salary, bonus and any prescribed additional payment under the employment
agreements of the Named Executive Officers. Amounts do not include benefits or value of unvested in-the-money options which may become vested as a result of change of
control. See “Incentive Plan Awards - Outstanding Share-Based Awards and Option-Based Awards” for details on the total value of the in-the-money
options held by the Named Executive Officers as at July 31, 2018. 

 Director Compensation 

The HR & CG Committee assists the Board with respect to the establishment of the Corporation’s compensation program for its
directors. The main objectives of the directors’ compensation program are to: compensate the directors in a manner that is commensurate with the risks and responsibilities assumed in Board and committee membership, and competitive with other
comparable issuers; and align the interests of the directors with those of the Shareholders. Unlike compensation for the Named Executive Officers, the directors’ compensation program is not designed to pay for performance; rather, directors
receive retainers for their services in order to help ensure unbiased decision-making. 
 As previously noted, Wilkinson’s review and
recommendations on market competitive compensation in March 2018 included compensation for the directors of the Corporation. Prior to this time, director compensation consisted of payment of an annual retainer fee in the amount of $18,000, and an
additional $4,000 annual retainer fee for Board committee Chairs, as well as discretionary stock option grants. Based on the growth of the Corporation’s business and Wilkinson’s recommendations, director compensation was revised in March
2018 to consist of an annual retainer fee in the amount of $36,000, and additional $29,000 annual retainer fee for the Chair, an additional $9,000 annual retainer fee for Board committee Chairs, and discretionary security-based compensation grants
with a value of approximately $35,000 expected to be awarded in the form of DSUs. Directors also receive reimbursement for reasonable expenses incurred in connection with attending Board and committee meetings. 

Director Compensation Table 
 The
following table sets forth information concerning the compensation earned by the non-executive directors during the 12 months ended July 31, 2018. 

 

																													
	 Name
	  	Fees
Earned
($)	 	  	Share-
Based
Awards
($)	 	  	Option-
Based
Awards
($) (1)	 	  	Non-Equity
Incentive Plan
Compensation
($)	 	  	Pension
Value
($)	 	  	All Other
Compensation
($)	 	  	Total ($)	 
	 Dr. Michael Munzar
	  	$	46,562	 	  	 	Nil	 	  	$	266,572	 	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 	  	$	313,134	 
	 Jason Ewart
	  	$	43,854	 	  	 	Nil	 	  	$	178,186	 	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 	  	$	222,040	 
	 Vincent Chiara
	  	$	36,461	 	  	 	Nil	 	  	$	208,950	 	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 	  	$	245,411	 
	 Nathalie Bourque
	  	$	37,420	 	  	 	Nil	 	  	$	227,922	 	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 	  	$	265,342	 

  
 17 

 Note: 
  

	 	(1)	 Based on the grant date fair value calculated using the Black Scholes Merton model. The Corporation chose
the Black Scholes Merton model because it is a commonly used and accepted method of calculating grant date fair value. Details of these calculations are included in Note 10 of the Corporation’s audited financial statements for the year ended
July 31, 2018. 

 Director Compensation – Outstanding Option-Based Awards 

The following table sets out information concerning all outstanding share-based awards and option-based awards granted by the Corporation to
the Corporation’s non-executive directors as at July 31, 2018.  
  

																													
	 	  	Option-Based Awards	 	  	Share-Based Awards	 
	 Name
	  	Number of
Securities
Underlying
Unexercised
Options
(#)	 	  	Option
Exercise
Price
($)	 	  	Option
Expiration
Date	 	  	Value of
Unexercised
In-The-Money
Options(1)(2)
($)	 	  	Number of
Shares or Units
of Shares Not
Vested (#)	 	  	Market or
Payout Value of
Share-Based
Awards Not
Vested ($)	 	  	Market or
Payout Value of
Vested Share-
Based
Awards Not Paid
Out or
Distributed ($)(1)	 
	 Dr. Michael Munzar
	  	 
 
 

 
	60,000
 150,000

300,000
 150,000

200,000
	 
  
  

 
  
	  	$
 $
 $

$
 $
	0.58
 0.75

0.75
 2.69

4.89
	 
  
  

 
  
	  	 
 
 

 
	Nov 17, 2024
 Apr 20, 2026

Nov 15, 2026
 Dec 4, 2027

Jul 11, 2028
	 
  
  

 
  
	  	$
 $
 $

$
  
	226,200
 540,000

1,080,000
 249,000

Nil
	 
  
  

 
  
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
								
	 Jason Ewart
	  	 
 
 

 
	60,000
 150,000

150,000
 100,000

200,000
	 
  
  

 
  
	  	$
 $
 $

$
 $
	0.58
 0.75

0.75
 2.69

4.89
	 
  
  

 
  
	  	 
 
 

 
	Nov 17, 2024
 Apr 20, 2026

Nov 15, 2026
 Dec 4,
2027
 Jul 11, 2028
	 
  
  

 
  
	  	$
 $
 $

$
  
	226,200
 540,000

540,000
 166,000

Nil
	 
  
  

 
  
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
								
	 Vincent Chiara
	  	 
 
 

	75,000
 25,000

100,000
 200,000
	 
  
  

 
	  	$
 $
 $

$
	1.27
 2.48

2.69
 4.89
	 
  
  

 
	  	 
 
 

	Jul 24, 2027
 Nov 6, 2027

Dec 4, 2027
 Jul 11, 2028
	 
  
  

 
	  	$
 $
 $

 
	231,000
 46,750

166,000
 Nil
	 
  
  

 
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 
								
	 Nathalie Bourque
	  	 
 
 
	100,000
 100,000

200,000
	 
  
  
	  	$
 $
 $
	2.48
 2.69

4.89
	 
  
  
	  	 
 
 
	Nov 6, 2027
 Dec 4, 2027

Jul 11, 2028
	 
  
  
	  	$
 $
  
	187,000
 166,000

Nil
	 
  
  
	  	 	Nil	 	  	 	Nil	 	  	 	Nil	 

 Note: 
  

	 	(1)	 “Value of unexercised
in-the-money options” is calculated by determining the excess of the market value of the Corporation’s Common Shares on July 31, 2018 on the TSX, being
$4.35, over the exercise price of the options. 

 Director Compensation – Incentive Plan Awards – Value Vested or Earned
During the Year 
 The following table sets out information concerning all share-based awards and option-based awards granted by the
Corporation to the Corporation’s non-executive directors which were earned or have vested during the most recently completed financial year. 

  
 18 

													
	 Name
	  	Option-Based Awards –
Value Vested
During the Year (2)
($)	 	  	Share-Based Awards –
Value Vested During
the Year
($)	 	  	Non-Equity Incentive
Plan Compensation –
Value Earned
During the Year ($)	 
	 Dr. Michael Munzar
	  	$	266,572	 	  	 	Nil	 	  	 	Nil	 
	 Jason Ewart
	  	$	178,186	 	  	 	Nil	 	  	 	Nil	 
	 Vincent Chiara
	  	$	208,951	 	  	 	Nil	 	  	 	Nil	 
	 Nathalie Bourque
	  	$	227,922	 	  	 	Nil	 	  	 	Nil	 

 Note: 
  

	 	(1)	 Based on the grant date fair value calculated using the Black Scholes model. The Corporation chose the Black
Scholes model because it is a commonly used and accepted method of calculating grant date fair value. Details of these calculations are included in Note 10 of the Corporation’s financial statements for the year ended July 31, 2017.

 CORPORATE GOVERNANCE AND AUDIT COMMITTEE DISCLOSURE 

The Board is committed to the highest standards of integrity, fiduciary duty and corporate governance. National Instrument 58-101 – Disclosure of Corporate Governance Practices (“NI 58-101”) and National Policy 58-201 –
Corporate Governance Guidelines (“NP 58-201”, and together with NI 58-101, the “CSA Guidelines”) set out a series of guidelines
for effective corporate governance. Under the CSA Guidelines, the Corporation must disclose on an annual basis the corporate governance practices it has adopted. In this section, the Corporation summarizes such practices, in addition to certain
other governance matters. 
 Board of Directors 

Composition and Independence 
 The
Board is currently comprised of six members. All but two of the six directors are considered to be independent under the CSA Guidelines and in accordance with National Instrument 52-110 – Audit
Committees (“NI 52-110”). The directors of the Corporation who are independent are Dr. Michael Munzar, Jason Ewart, Vincent Chiara and Nathalie Bourque. Neither Sébastien St-Louis, the President and CEO of the Corporation, nor Adam Miron, the Chief Brand Officer of the Corporation are independent as they are executive officers of the Corporation. As four out of the six directors of
the Corporation are independent, a majority of directors are independent. 
 The Chair of the Board, Dr. Michael Munzar, is an
independent director. The Board has developed a written position description for the Chair. The role of the Chair is to provide leadership to the Board with respect to its functions, and in this role the Chair’s responsibilities include:
establishing procedures to govern the Board’s work; ensuring the Board has adequate resources; ensuring that delegated committee functions are carried out and reported to the Board; acting as a liaison between the Board and management through
the CEO; and meeting periodically with the CEO and the Corporate Secretary to review governance issues including the level of communication between management and the Board. 

The independent directors meet for in camera sessions without non-independent directors and members of
management at the end of each regular Board meeting (unless they waive such requirement). In addition, they generally have at least one meeting (by phone) per month at which non-independent directors and
members of management are not present. 
 Other Directorships 

Currently, the following directors serve on the boards of other public companies, as listed below: 

 

			
	 Name of Director
	  	 Other Reporting Issuers

	Nathalie Bourque	  	 Alimentation Couche-Tard Inc. (TSX:ATD)

Héroux-Devtek Inc. (TSX:HRX)

  
 19 

			
	 Name of Director
	  	 Other Reporting Issuers

		
	Vincent Chiara	  	PRO Real Estate Investment Trust (TSXV:PRV)
		
	Jason Ewart	  	 Advantgewon Oil Corp. (CSE:AOC)

Bradstone Capital Corp. (CSE:HPBI)

 Meeting Attendance 

The following table summarizes for each of the directors the number of Board and Board committee meetings they attended for the fiscal year
ended July 31, 2018. 
  

													
	 Director
	  	Board
Meetings	 	  	Audit
Committee
Meetings	 	  	HR & CG
Committee
Meetings	 
	 Nathalie Bourque
	  	 	3/4	 	  	 	3/4	 	  	 	3/3	 
	 Vincent Chiara
	  	 	4/4	 	  	 	3/4	 	  	 	2/3	 
	 Jason Ewart
	  	 	4/4	 	  	 	4/4	 	  	 	3/3	 
	 Adam Miron
	  	 	4/4	 	  	 	N/A	 	  	 	N/A	 
	 Dr. Michael Munzar
	  	 	4/4	 	  	 	4/4	 	  	 	3/3	 
	 Sébastien St-Louis
	  	 	4/4	 	  	 	4/4	 	  	 	3/3	 

 Note: 
  

	 	(1)	 Ms. Bourque was appointed as a director of the Corporation on November 6, 2017.

 Board Mandate 
 The
mandate of the Board is to manage or supervise the management of the business and affairs of the Corporation and to act with a view to the best interests of the Corporation and its shareholders. The Board has adopted a written mandate which provides
that the core responsibilities of the Board include stewardship and oversight in the following areas: 
 (a) Strategic
Plan 
 The Board meets annually, at the end of the year, and may also have special meetings as required, to review the
Corporation’s overall business strategies and its annual business plan, as well as major strategic initiatives, to allow for the Board to evaluate whether the Corporation’s proposed actions generally accord with the objectives of the
Corporation. 
 (b) Identification of Principal Risks 

The Board, directly and through the Audit Committee as well as the other committees of the Board, reviews the principal risks
of the Corporation’s business and the appropriateness of the systems management puts in place to manage these risks. A current report on risk management is presented to and reviewed by the Audit Committee each quarter. 

(c) Communication Policy 

The Disclosure and Confidentiality Policy established by the Board summarizes practices regarding disclosure of material
information to investors, analysts and the media. The Board, in consultation with the HR & CG Committee, monitors and advises on compliance with this Policy. 

The Board is also responsible for approving the content of the Corporation’s major communications to shareholders and the
investing public, including the interim and annual reports, the management proxy circular, the annual information form, and any prospectuses that may be issued and significant press releases. 

  
 20 

 (d) Internal Control and Management Information Systems 

The Board, acting through the Audit Committee, monitors the implementation of appropriate internal control systems. The Audit
Committee reports, at least quarterly, to the Board and periodically includes in its reports updates on the status of the Corporation’s internal control systems. 

(e) Shareholder Feedback 

The Board monitors management in its ongoing development of appropriate investor relations programs and procedures to receive
and respond to shareholder feedback. 
 Board Committees 

At present, the Board has two standing committees, the Audit Committee and the HR & CG Committee. Both committees are comprised
entirely of independent directors. 
 Audit Committee 

At present, the Audit Committee consists of Jason Ewart (Chairman), Nathalie Bourque and Vincent Chiara, all of whom are
“independent” within the meaning of NI 52-110. Each member of the Audit Committee is also “financially literate” within the meaning of NI 52-110, as
they have an understanding of the accounting principles used to prepare the Corporation’s financial statements, experience preparing, auditing, analyzing or evaluating comparable financial statements and experience as to the general application
of relevant accounting principles, as well as an understanding of the internal controls and procedures necessary for financial reporting. Information concerning the relevant education and experience of the Audit Committee members can be found in
“Business to be Transacted at the Meeting – Election of Directors” in this Circular. 
 The Audit Committee has the
primary function of fulfilling its responsibilities in relation to reviewing the integrity of the Corporation’s financial statements, financial disclosures and internal controls over financial reporting; monitoring the system of internal
control; monitoring the Corporation’s compliance with legal and regulatory requirements, selecting the external auditor for shareholder approval; reviewing the qualifications, independence and performance of the external auditor; and reviewing
the qualifications, independence and performance of the Corporation’s internal auditors. The Audit Committee has specific responsibilities relating to the Corporation’s financial reports; the external auditor; the internal audit function;
internal controls; regulatory reports and returns; legal or compliance matters that have a material impact on the Corporation; and the Corporation’s whistleblowing procedures. In fulfilling its responsibilities, the Audit Committee meets
regularly with the internal and external auditor and key management members. 
 See the section entitled “Audit Committee
Information” in the Corporation’s Annual Information Form filed under the Corporation’s profile on SEDAR at www.sedar.com on October 26, 2018 for the fiscal year ended July 31, 2018 for additional information
regarding the Audit Committee, including the full text of the Audit Committee’s charter. 
 Human Resource and Corporate Governance Committee

 At present, the HR & CG Committee consists of Nathalie Bourque (Chair), and Vincent Chiara and Michael Munzar, all of
whom are “independent” within the meaning of NI 52-110. The Board believes that the members of the HR & GC Committee possess the combined knowledge, experience and backgrounds necessary to
fulfill the Committee’s mandate. Information concerning the relevant education and experience of the HR & CG Committee members can be found in “Business to be Transacted at the Meeting – Election of Directors” in
this Circular. 
 The core responsibilities of the HR & CG Committee include stewardship and oversight in the following areas:
(a) corporate governance; (b) nomination of directors and Board composition; (c) assessment of director independence; (d) orientation and continuing education; (e) business conduct and ethics; (f) Chief Executive
Officer and director assessment; and (g) compensation for executive officers and directors. 

  
 21 

 Regarding compensation, the HR & CG Committee’s responsibilities include:
(a) reviewing and making recommendations to the Board with respect to the overall compensation strategy and policies for directors, officers and employees of the Corporation, including executive officer and management compensation criteria,
corporate and personal goals and objectives; (b) reviewing and making recommendations to the Board with respect to the corporate goals and objectives relevant to the compensation of the Chief Executive Officer, evaluating the performance of the
Chief Executive Officer in light of those goals and objectives, and recommending to the Board the compensation level of the Chief Executive Officer based on this evaluation; (c) reviewing and making recommendations to the Board with respect to
the compensation of the Chairman of the Board; (d) reviewing and making recommendations to the Board with respect to the annual compensation of all other executive officers and directors of the Corporation. The Board conducts a review, through
the HR & CG committee, at least once every two years, of the components and amount of Board compensation in relation to other similarly situated companies. Board compensation should be consistent with market practices but should not be set
at a level that would call into question the Board’s objectivity; (e) administering the Corporation’s Stock Option Plan, and any other Restricted Share Unit Plan or Deferred Share Unit Plan that may be in effect from time to time, in
accordance with the terms of such plans; (f) making recommendations to the Board with respect to the Corporation’s incentive compensation and equity-based plans that are subject to Board approval; and (g) reviewing and approving the
annual public disclosure in the information circular relating to executive compensation of the Corporation. 
 Position Descriptions 

The Board has developed a written position description for the Chair of the Board and for the chair of each of the Audit Committee and the
HR & CG Committee. The Board has adopted general terms describing the responsibilities of the chair of each board committee, namely those of presiding committee meetings, and overseeing the way in which the relevant board committee carries
out its mandate. The chair of a board committee is required, following a meeting of such committee, to report to the Board at the next regularly scheduled meeting of the Board. The chair of each Board committee is responsible for the management, the
development and the effective performance of the committee. The chair of each Board committee provides leadership and direction to the committee for all aspects of the committee’s work and takes all reasonable measures to ensure such committee
fulfils its responsibilities. 
 The Board has not developed a written position description for the Chief Executive Officer. However, the
Chief Executive Officer leads the management of the Corporation’s business and affairs and the implementation of the resolutions and policies of the Board. In this capacity, his key responsibilities are determined with reference to those
typically carried out by an individual in this position and by ongoing discussion with the Board and include: leading the development of the Corporation’s overall strategy; operational direction including facilities development, product
development, geographic expansion and strategic relationships; human resources management; Board interaction; risk management; and effective communication with shareholders, clients, employees, regulators and other stakeholders. 

Orientation and Continuing Education 
 Due
to the size of the Corporation’s Board, no formal program currently exists for the orientation of new directors and existing directors provide orientation and education to new members on an informal and ad hoc basis. No formal continuing
education program currently exists for the directors of the Corporation; however, the Corporation encourages directors to attend, enroll or participate in courses and/or seminars dealing with financial literacy, corporate governance and related
matters. Each director of the Corporation has the responsibility for ensuring that he or she maintains the skill and knowledge necessary to meet his or her obligations as a director. 

Ethical Business Conduct 
 The directors
of the Corporation have adopted a formal written code of business conduct and ethics (the “Code”) in addition to compliance with applicable governmental laws, rules and regulations. The Code is designed to deter wrongdoing and to
promote: 
  

	 	•	 	 honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships; 

  
 22 

	 	•	 	 avoidance of conflicts of interest with the interests of the Corporation, including disclosure to an
appropriate person of any material transaction or relationship that reasonably could be expected to give rise to such a conflict; 

  

	 	•	 	 confidentiality of corporate information; 

 

	 	•	 	 protection and proper use of corporate assets and opportunities; 

 

	 	•	 	 compliance with applicable governmental laws, rules and regulations; 

 

	 	•	 	 the prompt internal reporting of any violations of the Code to an appropriate person or person identified in
the Code; and 

  

	 	•	 	 accountability for adherence to the Code. 

The Code sets the minimum standards expected to be met or exceed in all business and dealings of the Corporation, and provides guidelines to
help address new situations. The directors of the Corporation expect the Corporation’s employees, officers and directors to act with honesty and integrity and to avoid any relationship or activity that might create, or appear to create, a
conflict between their personal interest and the interests of the Corporation. 
 The Code has been filed under the Corporation’s
profile on SEDAR at www.sedar.com. 
 The Corporation has adopted a Whistleblower Policy that provides a channel for individuals to
express concerns, questions, or observations of misconduct, unethical behavior, and/or noncompliance directly and anonymously to the Corporation’s General Counsel or Audit Committee Chair or to an anonymous ethics hotline. 

Nomination of Directors 
 The
HR & CG Committee is responsible for identifying and recommending potential appointees to the Board. New nominees must have a track record in general business management, special expertise in an area of strategic interest to the
Corporation, the ability to devote the time required, shown support for the Corporation’s mission and strategic objectives, and a willingness to serve. The HR & CG Committee is composed of at least three directors appointed by the
Board, each of whom the Board has determined to be independent as contemplated by the laws, regulations and listing requirements to which the Corporation is subject. The Chief Executive Officer of the Corporation takes part in the work of the
HR & CG Committee as a non-voting member and removes himself where the HR & CG Committee decides on his remuneration and on corporate governance matters. 

Compensation 
 The HR & CG
Committee is charged with reviewing on an annual basis the compensation and benefits paid to the directors in light of market conditions and practice and in light of risks and responsibilities. 

Assessments 
 The HR & CG
Committee is responsible for monitoring the effectiveness of the Board and the performance of the directors. The process is facilitated by questionnaires sent by the Chair of the HR & CG Committee to enable individual directors to provide
feedback on the effectiveness of the Board and its Committees. Following receipt of the questionnaires, the Chair of the HR & CG Committee may contact the directors separately in order to discuss their answer to the questionnaires. The
HR & CG Committee assesses the operation of the Board and the committees, the adequacy of information given to directors, communication between the Board and management and the strategic direction and processes of the Board and committees.
The HR & CG Committee recommends changes to enhance the performance of the Board based on the survey feedback. 
 Director Terms Limits and
Other Mechanisms of Board Renewal 
 The Company does not have a retirement policy and does not discriminate based on age. The Company
considers it to be an integral role of the Board and the HR & CG Committee to assess director engagement and fitness to be a director of the Company. 

Similarly, the Board of Directors has not adopted a term limit for Directors, or established a formal process for the renewal of Board
membership. The Board is of the view that the imposition of arbitrary director term limits may 

  
 23 

 
diminish the benefits derived from continuity amongst members and their familiarity with the Corporation and the industry in which it operates, and could unnecessarily expose the Corporation to
losing experienced and valuable talent. The Board’s renewal process is built around the concept of performance management. To that end, the Board relies on assessment procedures, and the role of the HR & CG Committee, to ensure the
quality and expertise of its Board. 
 Policies Regarding the Representation of Women 

The Corporation does not have a formal policy with respect to the representation of women on the Board. The Board is mindful of the benefit of
diversity on the Board and regards involvement of women and their experience and input as constructive to the Board’s decision-making process. Establishing and implementing a policy regarding female representation on the Board will be an
element that the Corporation will take into consideration going forward. As at July 31, 2018, 17% of the Board members were women (one female director out of six directors). The Board is committed to increasing that level as board turnover
occurs from time to time taking into account the skills, background, experience and knowledge desired at a particular time by the Board and its committees. 

In general, the Board aspires to continuously improving the diversity of the Board and the Corporation’s management team. While the Board
has not adopted any formal diversity policies and makes executive officer appointment decisions based on merit, the Board believes that diversity (including, but not limited to, gender) is important to ensure that the profiles of directors and
members of the Corporation’s executive management provide the necessary range of perspectives, experience and expertise required to achieve effective stewardship and management. The Corporation believes that diversity is an important attribute
of a well-functioning Board and an efficient team of executive officers. The Corporation recognizes that gender diversity is a significant aspect of diversity and believes women play an important leadership role in executing on the
Corporation’s strategy, and this belief forms an important part of the focus of management in the appointment and recruitment of officers and the Board in the search and selection of nominee directors. 

Consideration of the Representation of Women in the Director Identification and Selection Process 

The HR & CG Committee will, within the purview of its mandate, have the responsibility to take gender into consideration as part of
its overall recruitment and selection process in respect of the Board. Accordingly, when searching for new directors, the HR & CG Committee will consider the level of women representation on the Board and, where appropriate, will recruit
qualified women candidates as part of the Corporation’s overall recruitment and selection process to fill Board positions, as the need arises, through vacancies, growth or otherwise. 

Consideration Given to the Representation of Women in Executive Officer Appointments 

The Corporation will consider and be sensitive to the representation of women when making executive officer appointments. However, considering
the relatively small number of positions in question, the Corporation refrains from setting targets for the representation of women among its executive officers. It is important that each individual appointed as an executive officer be considered on
the individual’s merits and on the needs of the Corporation at the relevant time. Targets based on specific criteria could limit the Corporation’s ability to appoint the individual who is the best qualified for the position. As of
July 31, 2018, there was one woman occupying an executive officer position with the Corporation. Subsequent to year end, another woman was appointed to an executive officer position such that there are currently two women occupying executive
officer positions out of twelve positions, or approximately 16.7%. The Corporation will, however, be committed to increasing the gender diversity of its executive officers going forward. 

Targets Regarding the Representation of Women on the Board and in Executive Officer Positions 

The Corporation has not adopted a measurable objective for achieving gender diversity on the Board or in executive officer positions. The
Corporation will consider establishing measurable objectives and targets as it further develops. 

  
 24 

 SECURITY-BASED COMPENSATION PLANS 

Security-Based Compensation Plans 

The Corporation has two security-based compensation plans, being the Omnibus Plan and the Previous Option Plan. No additional stock options
have been or will be issued under the Previous Option Plan since the adoption of the Omnibus Plan. 
 The following table provides a summary
of certain material provisions of the Omnibus Plan: 
  

			
	Administration	  	 The Omnibus Plan is administered and interpreted by the Board. The Board may decide by resolution to appoint a committee of
at least three members to administer and interpret the Omnibus Plan.

		
	Eligibility	  	 The persons eligible to receive Awards are the Eligible Participants.

		
	Reserve Maximum	  	 Subject to adjustment, the total number of Common Shares reserved and available for grant and issuance pursuant to Awards
shall not exceed a number of Common Shares equal to ten percent (10%) of the total issued and outstanding Common Shares of the Corporation at the time of granting of Awards (on a non-diluted basis) or such
other number as may be approved by the Shareholders of the Corporation from time to time.
  

The Omnibus Plan is a “rolling plan” or “evergreen plan”. This means any increase in the issued and outstanding Common
Shares (whether as a result of exercise of Awards or otherwise) will result in an increase in the number of Common Shares that may be issued on Awards outstanding at any time and any increase in the number of Awards granted will, upon exercise, make
new grants available under the Omnibus Plan.

		
	Securities Awarded and Available	  	 As of July 31, 2018, the Corporation had 193,629,116 Common Shares issued and outstanding and, as a result, 19,362,911
Common Shares available to be reserved for issuance under the Omnibus Plan. As of the same date, the Corporation had 5,691,500 Common Shares issuable pursuant to Options granted under the Omnibus Plan. Accordingly, 13,671,411 Common Shares remained
available for issuance under the Omnibus Plan as of July 31, 2018.

		
	Participation Limits	  	 The aggregate number of Common Shares (i) issued to insiders under the Omnibus Plan or any other proposed or
established security-based compensation arrangement within any one-year period and (ii) issuable to insiders at any time under the Omnibus Plan or any other proposed or established security-based
compensation arrangement, shall in each case not exceed ten percent (10%) of the issued and outstanding Common Shares (on a non-diluted basis).

		
	 Market Value
 as of Grant
	  	 Restricted Shares
  

Restrictions and conditions on the disposition of Restricted Shares that are granted are determined by the Board at the time of grant.

 
 Options

 
 The option price for Common Shares that are the subject of
any Option shall be determined by the Board at the time the Option is granted, but may not be less than Market Value at the time of grant. The terms of the Omnibus Plan allow for the exercise of an Option on a cashless basis. The number of Common
Shares received on the cashless exercise of an Option is determined by taking (i) the difference between (A) the Market Value and (B) the exercise price of such Option, (ii) multiplying that difference by the number of Common
Shares to which such Option relates, and then (iii)

  
 25 

			
		  	  
 dividing that product by the Market Value.

 
 DSUs

 
 Each Eligible Participant may elect, once each calendar
year, to be paid a percentage of his or her annual retainer in the form of DSUs. The number of DSUs an Eligible Participant is entitled to receive is calculated by taking (i) the percentage elected by the Eligible Participant,
(ii) multiplying that percentage by the Eligible Participant’s annual retainer, and then (iii) dividing that product by the Market Value.
  

RSUs
  

The purchase price of an RSU is determined by the Board and may be zero.

 
 SARs

 
 The exercise price of a SAR shall be fixed by the Board,
but may not be less than the Market Value at the time of grant. Upon exercise, the holder is entitled to receive the number of Common Shares equal to the excess of the Market Value on the effective date of such exercise over the exercise price of
the SAR.
  
 Retention Awards

 
 A retention award entitles an Eligible Participant to
receive the number of Common Shares that is equal to the retention payment divided by the Market Value on the vesting date of the retention award, disregarding fractions and less any amounts withheld for taxes.

 
 “Market Value” means at any date when the
Market Value of Common Shares of the Corporation is to be determined, the volume weighted average trading price of the Common Shares on the five trading days prior to the date of grant, calculated by dividing the total value by the total volume of
Common Shares traded for the five trading days prior to the date of grant on the principal stock exchange on which the Common Shares are listed, or if the Common Shares are not listed on any stock exchange, the value as is determined solely by the
Board, acting reasonably and in good faith.

		
	Market Appreciation/Dividend Payment	  	 The Omnibus Plan contemplates the award of SARs.

 
 In addition, a holder of DSUs is entitled to receive
additional DSUs (or fractions thereof) when dividends are declared and paid on Common Shares. The additional DSUs are based on (i) the actual amount of dividends that would have been paid if the Participant had held Common Shares under the
Omnibus Plan on the applicable record date divided by (ii) the Market Value on the date on which the dividends on Common Shares are payable.

		
	Vesting	  	 Restricted Shares
  

The Omnibus Plan does not contemplate any required vesting of the Restricted Shares. Restrictions and conditions on the disposition of
Restricted Shares are determined by the Board at the time of grant.
  

Options
  

The Board shall, from time to time by resolution, determine the vesting provisions of the
Options.

  
 26 

			
		  	  
 DSUs

 
 The Board may, at the time of grant, make DSUs subject to
restrictions and conditions (i.e. continuing employment or achievement of pre-established performance goals). DSUs are exercisable immediately following the date a Participant resigns or is terminated.

 
 RSUs

 
 The relevant conditions and vesting provisions of a RSU are
determined by the Board (including the performance period and criteria, if any). In making its determination regarding the vesting requirements applicable to any RSUs, the Board shall ensure that such requirements are not considered a “salary
deferral arrangement” for purposes of applicable legislation. The Board also sets a date upon which it is determined whether the vesting conditions with respect to RSUs have been met (the “RSU Vesting Determination Date”). This
then establishes the number of RSUs that become vested. The RSU Vesting Determination Date cannot fall outside the period (the “Restricted Period”) that ends on December 31 of the year that is three (3) years after the
calendar year in which the grant of RSUs was made. Any RSU that remains unvested on the RSU Vesting Determination or at the end of the Restricted Period, whichever is earlier, is cancelled.

 
 SARs

 
 The relevant conditions and vesting provisions of a SAR are
determined by the Board (including the performance period and criteria, if any).
  

Retention Awards
  

The relevant conditions and vesting provisions of a Retention Award are determined by the Board (including the performance period and criteria,
if any).

		
	Term	  	 Restricted Shares
  

Determined by the Board.
  

Options
  

The Board shall determine the period in which an Option is exercisable. An Option cannot expire later than ten (10) years from the date it
is granted.
  
 DSUs

 
 A Participant may redeem his or her DSUs up to the 120th
day after the date of his or her termination.
  

RSUs
  

The Board shall determine the Restricted Period, provided such Restricted Period cannot expire later than December 31 of the year that is
three (3) years after the calendar year in which the grant of RSUs was made.
  

SARs
  

The Board shall determine the period during which a SAR is exercisable, provided such period cannot expire more than ten (10) years from
the date the SAR was granted.

  
 27 

			
		  	 Retention Awards The relevant conditions and vesting provisions of a Retention Award are determined by the Board (including
the performance period and criteria, if any).

		
	Cessation	  	 Options, SARs and Retention Awards

 
 Termination for Cause.

 
 Any Option, SAR or Retention Award, or any unexercised or
unvested portion thereof, shall terminate when a Participant ceases to be an Eligible Participant for “cause”.
  

Death.
  

Any vested Option, SAR or Retention Award or the unexercised portion thereof (“Vested Award”), may be exercised by the estate
of a Participant if such Participant dies while he or she is an Eligible Participant. However, a Vested Award must be exercised (i) within one (1) year of the Participant’s death or (ii) prior to the expiration of the original
term of such Vested Award, whichever is earlier.
  

Disability.
  

Any Option, SAR or Retention Award, or any unexercised portion thereof, may be exercised by the Participant or his/her representative as the
rights to exercise accrue. However, the Award must be exercised (i) within three (3) years of the disability, (ii) until the Participant becomes eligible for long-term disability benefits, or (iii) prior to the expiration of the
original term of the Award, whichever is earlier.
  

Other.
  

If a Participant ceases to be an Eligible Participant for any reason other than for “cause”, death, or disability, the right to
exercise an Option, SAR or Retention Award shall be limited to and expire on the earlier of (i) one (1) year after the date the Participant ceases to be an Eligible Participant or (ii) the expiry date of the Award set forth in the
agreement pursuant to which the Award was granted.
  

RSUs
  

Termination for Cause.
  

Any unvested RSUs credit to a Participant’s account shall be forfeited and cancelled immediately upon such Participant ceasing to be an
Eligible Participant for “cause” or by resignation.
  

Cessation of Employment.
  

When a Participant retires, becomes eligible to receive long-term disability benefits, or has his or her employment terminated for reasons
other than “cause” or by reason of injury or disability, such Participant’s participation in the Omnibus Plan shall be terminated immediately. Unvested RSUs shall remain in effect until the applicable RSU Vesting Determination
Date.
  
 Retirement.

 
 If a Participant retires and becomes involved in another
business or activity in the cannabis industry prior to the applicable RSU Determination Date, then (i) if the Board determines the vesting conditions have not been met on the RSU Vesting Determination Date, the unvested RSUs of such Participant
shall be forfeited and cancelled, or (ii) if

  
 28 

			
		  	 the Board determines the vesting conditions have been met on the RSU Vesting Determination Date, such Participant is entitled
to receive the number of Common Shares he or she is entitled to in respect of such RSUs adjusted for the length of service provided by the Participant to the Corporation.

 
 Death.

 
 If a Participant dies, his or her participation in the
Omnibus Plan terminates immediately. All unvested RSUs remain in effect until the RSU Vesting Determination Date. If the Board determines the vesting conditions have not been met on the RSU Vesting Determination Date, the unvested RSUs of such
deceased Participant shall be forfeited and cancelled. If the Board determines the vesting conditions have been met on the RSU Vesting Determination Date, such deceased Participant is entitled to receive the number of Common Shares he or she is
entitled to in respect of such RSUs adjusted for the length of service provided by the Participant to the Corporation.
  

Leave of Absence.
  

If a Participant voluntarily takes a leave of absence, his or her participation in the Omnibus Plan terminates immediately. All unvested RSUs
remain in effect until the RSU Vesting Determination Date. If the Board determines the vesting conditions have not been met on the RSU Vesting Determination Date, the unvested RSUs of such Participant shall be forfeited and cancelled. If the Board
determines the vesting conditions have been met on the RSU Vesting Determination Date, such Participant is entitled to receive the number of Common Shares he or she is entitled to in respect of such RSUs adjusted for the length of service provided
by the Participant to the Corporation.
  
 Restricted
Shares
  
 Upon a Participant ceasing to be an Eligible
Participant for any reason, any Restricted Shares that have not vested at such time shall automatically be deemed to have been reacquired by the Corporation.

		
	Assignability	  	 Awards granted under the Omnibus Plan are transferrable or assignable only to a “permitted assign”. A permitted
assign means the spouse of a Participant or a trustee, holding entity, or RRSP/RRIF of the Participant or his or her spouse.

		
	Amendments	  	 The Board may amend the Omnibus Plan or any Award with consent of the Participants provided that the amendment shall:

 

•  not adversely alter or impair any Award previously granted;

 

•  be subject to any regulatory approvals;

 

•  be subject to Shareholder approval, where required, provided that Shareholder
approval is not required for following amendments and the Board may make any changes which may include but are not limited to: (i) amendments of a “housekeeping” nature; (ii) a change to the vesting provisions of any Award;
(iii) the introduction or amendment of a cashless exercise feature payable in securities, whether or not such feature provides for a full deduction of the number of underlying securities from the Omnibus Plan reserve; and (iv) the addition
of or amendment to any form of financial assistance.
  

The Board needs Shareholder approval to make the following amendments:

  
 29 

			
		  	  

•  any change to the maximum number of Common Shares issuable under the Omnibus Plan,
except any increase due to an adjustment or due to the evergreen nature of the plan;
  

•  any amendment that reduces the exercise price of an Award;

 

•  any amendment that extends the expiry date of an Award;

 

•  any amendment that changes the Eligible Participants, including a change that
would have the potential to broaden the participation by insiders;
  

•  any amendment that would permit an Award to be transferable or assignable other
than as currently permitted;
  

•  any amendment that increases the maximum number of shares issuable or issued to
insiders; and
  

•  any amendment to the amendment provisions of the Omnibus Plan.

 
 Common Shares held directly or indirectly by insiders that
may benefit from certain amendments shall be excluded from voting when obtaining Shareholder approval.

		
	Financial Assistance	  	 The Omnibus Plan does not contain any form of financial assistance.

		
	Change of Control	  	 In the event of a “Change in Control”, a reorganization of the Corporation, an amalgamation of the Corporation, an
arrangement involving the Corporation, a take-over bid (as that term is defined in the Securities Act (Québec)) for all of the Common Shares or the sale or disposition of all or substantially all of the property and assets of the
Corporation, the Board may make such provision for the protection of the rights of the Participants as the Board in its discretion considers appropriate in the circumstances.

 
 “Change in Control” means an event whereby
(i) any person becomes the beneficial owner, directly or indirectly, of 50% or more of either the issued and outstanding Common Shares or the combined voting power of the Corporation’s then outstanding voting securities entitled to vote
generally; (ii) any person acquires, directly or indirectly, securities of the Corporation to which is attached the right to elect the majority of the directors of the Corporation; or (iii) the Corporation undergoes a liquidation or
dissolution or sells all or substantially all of its assets.

		
	Adjustments	  	 The Omnibus Plan may be adjusted if certain changes are made to the Corporation’s capitalization (e.g. subdivision,
consolidation or reclassification of or a distribution of assets on (other than an ordinary course dividend) the Common Shares) in order to preclude a dilution or enlargement of the benefits due to Participants under the Omnibus Plan.

 Additional information regarding the Omnibus Plan and a copy of the full Omnibus Plan are available in the
management information circular of the Corporation dated July 16, 2018 in respect of the Corporation’s special meeting of Shareholders held on August 28, 2018 at which the Omnibus Plan was approved, which has been filed under the
Corporation’s profile on SEDAR at www.sedar.com. 
 Securities Authorized for Issuance Under Equity Compensation Plans 

The following table sets forth the number of Common Shares to be issued upon exercise of outstanding securities or rights under equity
compensation plans of the Corporation, the weighted-average exercise price of such outstanding securities or rights and the number of Common Shares remaining available for future issuance under such equity compensation plans as at July 31,
2018. 

  
 30 

													
	 Plan Category
	  	Number of securities to be
issued upon exercise of
outstanding options, warrants
and rights	 	 	Weighted-average exercise
price of outstanding options,
warrants and rights	 	  	Number of securities remaining
available for future issuance
under equity compensation plans
(excluding securities reflected
in
the second column of this table	 
	 Equity compensation plans approved by security holders(1) 
	  	 	14,388,066	(2)  	 	$	3.02	 	  	 	13,670,791	(3)  
	 Equity compensation plans not approved by securityholders
	  	 	Nil	 	 	 	Nil	 	  	 	Nil	 
	 Total
	  	 	14,388,066	 	 	$	3.02	 	  	 	13,670,791	 

 Notes: 
  

	 	(1)	 Equity compensation plans approved by securityholders consist of the Omnibus Plan and the Previous Option
Plan. 

	 	(2)	 Based on 5,691,500 Options issued under the Omnibus Plan and 8,696,566 stock options issued under the
Previous Option Plan outstanding as of July 31, 2018. 

	 	(3)	 Based on Common Shares issuable under the Omnibus Plan equal to 10% of the number of issued and outstanding
Common Shares as at July 31, 2018, being 193,629,116, less 5,691,500 Common Shares issuable upon the exercise of Options issued under the Omnibus Plan as of July 31, 2018. 

Burn Rate of Security-Based Compensation Plan Awards 

In accordance with the requirements of section 613 of the TSX Company Manual, the following table sets out the burn rate of awards granted
under the Omnibus Plan as of the end of the fiscal year ended July 31, 2018 and for the two preceding financial years. The burn rate is calculated by dividing the number of awards granted under the security-based compensation plans during the
relevant fiscal year by the weighted average number of securities outstanding for the applicable fiscal year. The Omnibus Plan was adopted by the Corporation on June 27, 2018. 

 

													
	 	  	Fiscal Year
Ended
July 31, 2018	 	 	Fiscal
Year
Ended
July 31,
2017	 	  	Fiscal
Year
Ended
July 31,
2016	 
	 Number of awards granted under the Omnibus Plan
	  	 	5,691,500	 	 	 	Nil	 	  	 	Nil	 
	 Weighted average of outstanding securities for that fiscal year
	  	 	134,171,509	 	 	 	N/A	 	  	 	N/A	 
	 Annual Burn Rate
	  	 	4	% 	 	 	N/A	 	  	 	N/A	 

 The following table sets out the burn rate of awards granted under the Previous Option Plan as of the end of
the fiscal year ended July 31, 2018 and for the two preceding financial years. 
  

													
	 	  	Fiscal Year
Ended
July 31, 2018	 	 	Fiscal Year
Ended
July 31, 2017	 	 	Fiscal Year
Ended
July 31, 2016	 
	 Number of awards granted under the Previous Option Plan
	  	 	4,482,500	 	 	 	2,428,777	 	 	 	840,000	 
	 Weighted average of outstanding securities for that fiscal year
	  	 	134,171,509	 	 	 	58,556,121	 	 	 	31,538,886	 
	 Annual Burn Rate
	  	 	3	% 	 	 	4	% 	 	 	3	% 

  
 31 

 INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS 

No director, proposed director, executive officer, nor any of their respective associates or affiliates, is or has been indebted to the
Corporation or its subsidiaries since the beginning of the Corporation’s most recently completed financial year. 
 DIRECTORS’
AND OFFICERS’ LIABILITY INSURANCE 
 The Corporation maintains insurance for the benefit of the directors and officers of the
Corporation against liabilities in their capacities as directors or officers of the Corporation. For the fiscal year ended July 31, 2018, the insurance provided for a coverage limit of $25,000,000 without any deductible for claims, and the
premiums for the insurance were $243,600, which were paid in full by the Corporation. 
 TRANSFER AGENT AND REGISTRAR 

The Corporation’s transfer agent and registrar for the Common Shares is TSX Trust Company at its office at 100 Adelaide Street West,
Toronto, Ontario, M5H 4H1. 
 INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS 

Except as disclosed in this Circular, neither the Corporation nor any director or officer of the Corporation, nor any proposed nominee for
election as a director of the Corporation, nor any other insider of the Corporation, nor any associate or affiliate of any one of them has or has had, at any time since the beginning of the year ended July 31, 2018, any material interest,
direct or indirect, in any transaction or proposed transaction that has materially affected or would materially affect the Corporation. 

OTHER MATTERS WHICH MAY COME BEFORE THE MEETING 

Management of the Corporation knows of no matters to come before the Meeting other than as set forth in this Circular. HOWEVER, IF OTHER
MATTERS WHICH ARE NOT KNOWN TO THE MANAGEMENT SHOULD PROPERLY COME BEFORE THE MEETING, THE ENCLOSED FORM OF PROXY WILL BE USED TO VOTE ON SUCH MATTERS IN ACCORDANCE WITH THE BEST JUDGMENT OF THE PERSONS VOTING THE PROXY. 

ADDITIONAL INFORMATION 

Additional information relating to the Corporation is available under the Corporation’s profile on SEDAR at www.sedar.com.
Financial information is provided in the Corporation’s audited comparative financial statements and management’s discussion and analysis for the year ended July 31, 2018. Copies of the Corporation’s financial statements and
management’s discussion and analysis may be obtained under the Corporation’s profile on SEDAR at www.sedar.com or upon written request to the Corporate Secretary at 204-490 Boulevard
Saint-Joseph, Gatineau, Québec, J8Y 3W9. 
 APPROVAL OF BOARD 

The contents of this Circular and delivery of it to each director of the Corporation, to the auditors of the Corporation and to the
Shareholders of the Corporation entitled to notice of the Meeting, have been approved by the directors of the Corporation. 

DATED at Gatineau, Québec this 4th day of December, 2018. 

 

	
	BY ORDER OF THE BOARD OF DIRECTORS
	
	(Signed) “Sébastien St-Louis”
	 Sebastien St-Louis

President and Chief Executive Officer and Director

  
 32EX-4.7

 Exhibit 4.7 

NOTICE OF SPECIAL MEETING OF THE HOLDERS OF COMMON SHARES OF 

THE HYDROPOTHECARY CORPORATION 
 NOTICE
IS HEREBY GIVEN that a special meeting (the “Meeting”) of the holders (the “Shareholders”) of common shares (the “Common Shares”) of The Hydropothecary Corporation (the
“Corporation”) will be held at the offices of DLA Piper (Canada) LLP, Suite 6000, 1 First Canadian Place, 100 King Street West, Toronto, Ontario, M5X 1E2 on Tuesday, August 28, 2018 at 2:00 p.m. (EST) for the following
purposes: 
  

	 	(a)	 to consider and, if deemed appropriate, pass, with or without variation, a special resolution approving an
amendment to the articles of the Corporation to change the name of the Corporation to “HEXO Corp.”, as more fully described in the accompanying management information circular dated July 16, 2018 (the “Circular”);

  

	 	(b)	 to consider and, if deemed appropriate, pass, with or without variation, an ordinary resolution approving the
Corporation’s omnibus long-term incentive plan and the unallocated awards thereunder, and ratifying 5,691,500 stock options which have been granted to certain directors, officers and non-executive
employees of the Corporation under the Omnibus Plan, as more fully described in the Circular; and 

  

	 	(c)	 to transact such other business as may properly be brought before the Meeting or any adjournment(s) or
postponement(s) thereof. 

 Shareholders should refer to the Circular for more detailed information with respect to the matters to be
considered at the Meeting. 
 Registered Shareholders may attend the Meeting in person or may be represented by proxy. If you are a registered Shareholder
and are unable to attend the Meeting in person, please exercise your right to vote by dating, signing and returning the accompanying form of proxy to TSX Trust Company, the transfer agent of the Corporation. To be valid, completed proxy forms must
be dated, completed, signed and deposited with TSX Trust Company using one of the following methods: 
  

			
	 By Mail or

Hand Delivery:        
	  	 TSX Trust Company
 Suite 301, 100 Adelaide
Street West
 Toronto, Ontario M5H 4H1

		
	Facsimile:	  	416-595-9593
		
	By Internet:	  	 www.voteproxyonline.com
 You will need to
provide your 12 digit control number (located on the form of proxy accompanying this Circular)

 A Shareholder wishing to be represented by proxy at the Meeting or any adjournment thereof must deposit his, her or its duly
executed form of proxy with the Corporation’s transfer agent and registrar, TSX Trust Company, at Suite 301, 100 Adelaide Street West, Toronto, Ontario M5H 4H1 not later than 4:00 p.m. (EST) on Friday, August 24,
2018 or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned meeting. 

Shareholders who are unable to attend the Meeting in person, are requested to date, complete, sign and return the enclosed form of proxy so that as large a
representation as possible may be had at the Meeting. 
 The Board of Directors of the Corporation has by resolution fixed Monday, July 9, 2018 as the
record date for the Meeting. Shareholders of record at the close of business on July 9, 2018 are entitled to notice of the Meeting and to vote thereat or at any adjournment(s) or postponement(s) thereof on the basis of one vote for each Common
Share held. 

  
 1 

 If you are unable to attend the Meeting, we encourage you to complete the enclosed form of proxy as soon as
possible. If a Shareholder receives more than one form of proxy because such holder owns Common Shares registered in different names or addresses, each form of proxy should be completed and returned. The Chairman of the Meeting shall have the
discretion to waive or extend the proxy deadlines without notice. 
 If you are a registered Shareholder and receive these materials through your broker or
through another intermediary, please complete and return the form of proxy in accordance with the instructions provided to you by your broker or by the other intermediary. 

NOTICE-AND-ACCESS 

Notice is also hereby given that the Corporation has decided to use the
notice-and-access method of delivery of meeting materials for the Meeting for beneficial owners of Common Shares (the
“Non-Registered Holders”) and for registered Shareholders. The notice-and-access method of delivery of
meeting materials allows the Corporation to deliver the meeting materials over the internet in accordance with the notice-and-access rules adopted by the Canadian
Securities Administrators under National Instrument 54-101 - Communication with Beneficial Owners of Securities of a Reporting Issuer. Under the notice-and-access system, registered Shareholders will receive a form of proxy and Non-Registered Holders will receive a voting
instruction form enabling them to vote at the Meeting. However, instead of a paper copy of the notice of the Meeting, the Circular and the form of proxy and other meeting materials (collectively the “Meeting Materials”),
Shareholders will receive a notification with information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will help reduce paper use and will also reduce
the cost of printing and mailing the Meeting Materials to Shareholders. Shareholders are reminded to view the Meeting Materials prior to voting. The Corporation will not be adopting stratification procedures in relation to the use of notice-and-access provisions. 
 Websites Where Meeting Materials Are Posted:

 Meeting Materials can be viewed online under the the Corporation’s profile on SEDAR at www.sedar.com or at
https://docs.tsxtrust.com/2070, on the website of the Corporation’s transfer agent and registrar at. The Meeting Materials will remain posted on TSX Trust Company’s website at least until the date that is one year after the
date the Meeting Materials were posted. 
 How to Obtain Paper Copies of the Meeting Materials 

Shareholders may request paper copies of the Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made up to one year
from the date the Meeting Materials are posted on TSX Trust Company’s website. In order to receive a paper copy of the Meeting Materials or if you have questions concerning
notice-and-access, please call the Corporation’s transfer agent and registrar, TSX Trust Company, toll free at 1-866-600-5869. Requests should be received by 4:00 p.m. (EST) on August 16, 2018 in
order to receive the Meeting Materials in advance of the Meeting. 
 The Circular provides additional detailed information relating to the matters to be
dealt with at the Meeting and is supplemental to, and expressly made a part of, this notice of special meeting. Additional information about the Corporation including its consolidated financial statements is also available on the
Corporation’s profile at www.sedar.com. 
 DATED at Gatineau, Quebec this
16th day of July, 2018. 
  

	
	BY ORDER OF THE BOARD OF DIRECTORS
	
	 (Signed) “Sebastien St-Louis”

	Sebastien St-Louis
	Chief Executive Officer and Director

  
 2 

 THE HYDROPOTHECARY CORPORATION 

INFORMATION CIRCULAR 

FOR THE SPECIAL MEETING OF SHAREHOLDERS 

TO BE HELD ON AUGUST 28, 2018 

PURPOSES OF SOLICITATION 
 THIS
MANAGEMENT INFORMATION CIRCULAR IS FURNISHED IN CONNECTION WITH THE SOLICITATION BY THE MANAGEMENT OF THE HYDROPOTHECARY CORPORATION (the “Corporation”) of proxies to be used at the
special meeting of shareholders of the Corporation to be held on Tuesday, August 28, 2018 at the offices of DLA Piper (Canada) LLP, Suite 6000, 1 First Canadian Place, 100 King Street West, Toronto, Ontario, M5X 1E2 at 2:00 p.m.
(EST), and at any adjournment or postponement thereof (the “Meeting”) for the purposes set out in the enclosed notice of meeting (the “Notice of Meeting”). Although it is expected that the solicitation of
proxies will be primarily by mail, proxies may also be solicited personally or by telephone, facsimile or other proxy solicitation services. In accordance with National Instrument 54-101
- Communication with Beneficial Owners of Securities of a Reporting Issuer (“NI 54-101”), arrangements have been made with brokerage houses and clearing agencies,
custodians, nominees, fiduciaries or other intermediaries to send the Notice of Meeting, this management information circular (the “Circular”), the form of proxy for the meeting and other meeting materials, if applicable
(collectively the “Meeting Materials”) to the beneficial owners of the common shares of the Corporation (the “Common Shares”) held of record by such parties. The Corporation may reimburse such parties for
reasonable fees and disbursements incurred by them in doing so. The costs of the solicitation of proxies will be borne by the Corporation. The Corporation may also retain, and pay a fee to, one or more professional proxy solicitation firms
to solicit proxies from the shareholders of the Corporation in favour of the matters set forth in the Notice of Meeting. 
 NOTICE-AND-ACCESS 
 The Corporation has decided to use the notice-and-access (“Notice-and-Access”) rules provided under NI 54-101 for the delivery of the Meeting Materials to holders of Common Shares who appear on the records maintained by the Corporation’s registrar and transfer agent as registered holders of Common Shares
(“Registered Shareholders”) and beneficial owners of Common Shares (the “Non-Registered Holders”) for the Meeting. The Notice-and-Access method of delivery of Meeting Materials allows the Corporation to deliver the Meeting Materials over the internet in accordance with the Notice-and-Access rules adopted by the Canadian Securities Administrators under NI 54-101. 

Registered Shareholders will receive a form of proxy and Non-Registered Holders will receive a voting instruction
form, in each case enabling them to vote at the Meeting. However, instead of a paper copy of the Meeting Materials, shareholders will receive only a notice with information on the date, location and purpose of the Meeting, as well as
information on how they may access such materials electronically. The use of this alternative means of delivery is more environmentally friendly as it will help reduce paper use and will also reduce the cost of printing and mailing the Meeting
Materials to shareholders. Shareholders are reminded to view the Meeting Materials prior to voting. Materials can be viewed online under the Corporation’s profile at www.sedar.com or on the website of TSX Trust Company
(the “Transfer Agent”), the Corporation’s transfer agent and registrar, at https://docs.tsxtrust.com/2070. The Meeting Materials will remain posted on the Transfer Agent’s website at least until the date that
is one year after the date the Meeting Materials were posted. The Corporation will not be adopting stratification procedures in relation to the use of
Notice-and-Access rules.
 Shareholders may request paper copies of the
Meeting Materials be sent to them by postal delivery at no cost to them. Requests may be made up to one year from the date the Meeting Materials are posted on the Transfer Agent’s website. In order to receive a paper copy of the Meeting
Materials or if you have questions concerning Notice-and-Access, please call the Transfer Agent toll free at 1-866-600-5869. Requests should be received by 4:00 p.m. (EST) on August 16, 2018 in order to receive the Meeting Materials in advance of the Meeting. 

  
 1 

 APPOINTMENT AND REVOCATION OF PROXIES 

A Registered Shareholder may vote in person at the Meeting or may appoint another person to represent such Registered Shareholder as proxy and to vote the
Common Shares of such Registered Shareholder at the Meeting. In order to appoint another person as proxy, a Registered Shareholder must complete, execute and deliver the form of proxy accompanying this Circular, or another proper form of proxy,
in the manner specified in the Notice of Meeting. 
 The purpose of a form of proxy is to designate persons who will vote on the shareholder’s behalf
in accordance with the instructions given by the shareholder in the form of proxy. The persons named in the enclosed form of proxy are officers or directors of the Corporation. A REGISTERED SHAREHOLDER DESIRING TO APPOINT
SOME OTHER PERSON, WHO NEED NOT BE A SHAREHOLDER OF THE CORPORATION, TO REPRESENT HIM, HER OR IT AT THE MEETING MAY DO SO BY FILLING IN THE NAME OF SUCH PERSON IN THE BLANK SPACE PROVIDED IN THE FORM OF PROXY OR BY COMPLETING ANOTHER PROPER FORM OF
PROXY. A Registered Shareholder wishing to be represented by proxy at the Meeting or any adjournment thereof must, in all cases, deposit the completed form of proxy with the Corporation’s transfer agent and registrar, the Transfer
Agent not later than 4:00 p.m. (EST) on Friday, August 24, 2018 or, if the Meeting is adjourned, not later than 48 hours, excluding Saturdays, Sundays and holidays, preceding the time of such adjourned Meeting at which the form of
proxy is to be used. A form of proxy should be executed by the Registered Shareholder or his or her attorney duly authorized in writing or, if the Registered Shareholder is a corporation, by an officer or attorney thereof duly authorized.

Proxies may be deposited with the Transfer Agent using one of the following methods: 

 

			
	By Mail or Hand Delivery:        	  	 TSX Trust Company
 Suite 301

100 Adelaide Street West
 Toronto, Ontario M5H
4H1

		
	Facsimile:	  	416-595-9593
		
	By Internet:	  	 www.voteproxyonline.com
 You will need to
provide your 12 digit control number (located on the form of proxy accompanying this Circular)

 A Registered Shareholder attending the Meeting has the right to vote in person and, if he, she or it does so, his, her or its
form of proxy is nullified with respect to the matters such person votes upon at the Meeting and any subsequent matters thereafter to be voted upon at the Meeting or any adjournment thereof. 

A Registered Shareholder who has given a form of proxy may revoke the form of proxy at any time prior to using it: (a) by depositing an instrument in
writing, including another completed form of proxy, executed by such Registered Shareholder or by his, her or its attorney authorized in writing or by electronic signature or, if the Registered Shareholder is a corporation, by an authorized officer
or attorney thereof at, or by transmitting by telephone or electronic means, a revocation signed, subject to the Business Corporations Act (Ontario), by electronic signature, to (i) the head office of the Corporation,
located at 490 St-Joseph, Suite 204, Gatineau, Québec, J8Y 3Y7 at any time prior to 5:00 p.m. (EST) on the last business day preceding the day of the Meeting or any adjournment thereof or
(ii) with the Chairman of the Meeting on the day of the Meeting or any adjournment thereof; or (b) in any other manner permitted by law. 

ADVICE TO NON-REGISTERED SHAREHOLDERS 

The information set forth in this section is of significant importance to many shareholders of the Corporation, as a substantial number of shareholders of
the Corporation do not hold Common Shares in their own name. Only Registered Shareholders or the persons they appoint as their proxies are permitted to attend and vote at 

  
 2 

 
the Meeting and only forms of proxy deposited by Registered Shareholders will be recognized and acted upon at the Meeting. Common Shares beneficially owned by a Non-Registered Holder are registered either: (i) in the name of an intermediary (an “Intermediary”) with whom the Non-Registered Holder deals in respect
of the Common Shares (Intermediaries include, among others, banks, trust companies, securities dealers or brokers and trustees or administrators of self-administered RRSPs, RRIFs, RESPs and similar plans); or (ii) in the name of a clearing
agency (such as CDS Clearing and Depository Services Inc.) (each a “Clearing Agency”) of which the Intermediary is a participant. Accordingly, such Intermediaries and Clearing Agencies would be the Registered Shareholders and
would appear as such on the list maintained by the Transfer Agent. Non-Registered Holders do not appear on the list of the Registered Shareholders maintained by the Transfer Agent.

Distribution of Meeting Materials to Non-Registered Holders 

In accordance with the requirements of NI 54-101, the Corporation has distributed copies of the Meeting Materials to
the Clearing Agencies and Intermediaries for onward distribution to Non-Registered Holders as well as directly to NOBOs (as defined below).

Non-Registered Holders fall into two categories - those who object to their identity being known to the issuers of the
securities which they own (“OBOs”) and those who do not object to their identity being made known to the issuers of the securities which they own (“NOBOs”). Subject to the provisions of NI 54-101, issuers may request and obtain a list of their NOBOs from Intermediaries directly or via their transfer agent and may obtain and use the NOBO list for the distribution of proxy-related materials to such
NOBOs. If you are a NOBO and the Corporation or its agent has sent the Meeting Materials directly to you, your name, address and information about your holdings of Common Shares have been obtained in accordance with applicable securities
regulatory requirements from the Intermediary holding the Common Shares on your behalf. 
 The Corporation’s OBOs can expect to be contacted by their
Intermediary. The Corporation does not intend to pay for Intermediaries to deliver the Meeting Materials to OBOs and it is the responsibility of such Intermediaries to ensure delivery of the Meeting Materials to their OBOs. 

Voting by Non-Registered Holders 

The Common Shares held by Non-Registered Holders can only be voted or withheld from voting at the direction of the Non-Registered Holder. Without specific instructions, Intermediaries or Clearing Agencies are prohibited from voting Common Shares on behalf of Non-Registered
Holders. Therefore, each Non-Registered Holder should ensure that voting instructions are communicated to the appropriate person well in advance of the Meeting. 

The various Intermediaries have their own mailing procedures and provide their own return instructions to
Non-Registered Holders, which should be carefully followed by Non-Registered Holders in order to ensure that their Common Shares are voted at the Meeting. 

Non-Registered Holders will receive either a voting instruction form or, less frequently, a form of proxy. The
purpose of these forms is to permit Non-Registered Holders to direct the voting of the Common Shares they beneficially own. Non-Registered Holders should follow the
procedures set out below, depending on which type of form they receive. 
  

	A.	 Voting Instruction Form. In most cases, a
Non-Registered Holder will receive, as part of the Meeting Materials, a voting instruction form (a “VIF”). If the Non-Registered Holder does not
wish to attend and vote at the Meeting in person (or have another person attend and vote on the Non-Registered Holder’s behalf), the VIF must be completed, signed and returned in accordance with the
directions on the form.

 OR 
  

	B.	 Form of Proxy. Less frequently, a Non-Registered
Holder will receive, as part of the Meeting Materials, a form of proxy that has already been signed by the Intermediary (typically by a facsimile, stamped signature) which is restricted as to the number of Common Shares beneficially owned by the Non-

  
 3 

	 	
Registered Holder but which is otherwise not completed. If the Non-Registered Holder does not wish to attend and vote at the Meeting in person (or
have another person attend and vote on the Non-Registered Holder’s behalf), the Non- Registered Holder must complete and sign the form of proxy and in accordance
with the directions on the form. 

 Voting by Non-Registered Holders at the Meeting 

Although a Non-Registered Holder may not be recognized directly at the Meeting for the purposes of voting Common Shares
registered in the name of an Intermediary or a Clearing Agency, a Non-Registered Holder may attend the Meeting as proxyholder for the Registered Shareholder who holds Common Shares beneficially owned by such Non-Registered Holder and vote such Common Shares as a proxyholder. A Non-Registered Holder who wishes to attend the Meeting and to vote their Common Shares as
proxyholder for the Registered Shareholder who holds Common Shares beneficially owned by such Non-Registered Holder, should (a) if they received a VIF, follow the directions indicated on the VIF; or
(b) if they received a form of proxy strike out the names of the persons named in the form of proxy and insert the Non-Registered Holder’s or its nominees name in the blank space provided. Non-Registered Holders should carefully follow the instructions of their Intermediaries, including those instructions regarding when and where the VIF or the form of proxy is to be delivered. 

All references to shareholders in the Meeting Materials are to Registered Shareholders as set forth on the list of registered shareholders of the Corporation
as maintained by the Transfer Agent, unless specifically stated otherwise. 
 VOTING OF PROXIES 

All Common Shares represented at the Meeting by properly executed proxies will be voted on any matter that may be called for and, where a choice with respect
to any matter to be acted upon has been specified in the accompanying form of proxy, the Common Shares represented by the proxy will be voted in accordance with such instructions. In the absence of any such instruction, the persons whose names
appear on the printed form of proxy will vote in favour of all the matters set out thereon. 
 The enclosed form of proxy confers discretionary
authority upon the persons named therein. If any other business or amendments or variations to matters identified in the Notice of Meeting properly comes before the Meeting, then discretionary authority is conferred upon the person appointed in the
proxy to vote in the manner they see fit, in accordance with their best judgment. 
 At the time of the printing of this Circular, the management of the
Corporation knew of no such amendment, variation or other matter to come before the Meeting other than the matters referred to in the Notice of Meeting. 

INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED ON 

To the knowledge of the directors and executive officers of the Corporation, no director or executive officer of the Corporation, any proposed nominee for
election as director of the Corporation, or any associate or affiliate of any of the foregoing persons, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the
Meeting, other than the election of directors. 
 VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF 

The board of directors of the Corporation (the “Board”) has fixed Monday, July 9, 2018 as the record date. Shareholders at the close of
business on July 9, 2018 are entitled to receive notice of the Meeting and to vote thereat or at any adjournments or postponements thereof on the basis of one vote for each Common Share held. 

The authorized capital of the Corporation consists of an unlimited number of Common Shares. As of the date of this Circular, 193,629,116 Common Shares were
issued and outstanding. 
 As of the date hereof, to the knowledge of the directors and executive officers of the Corporation, there are no persons or
companies known to the Corporation who beneficially own, directly or indirectly, or control or direct Common shares carrying 10% or more of the voting rights attached to all of the Common Shares. 

  
 4 

 BUSINESS TO BE TRANSACTED AT THE MEETING 

1. Name Change 
 As previously announced by the
Corporation, the Corporation proposes to change its name to “HEXO Corp.”, or such other similar name as may be determined by the Board in its sole discretion and the Director appointed under the Business Corporations Act (Ontario)
(the “OCBA”) may permit. The proposed change of the Corporation’s name to “HEXO Corp.” follows the Corporation’s launch of “HEXO” as its new brand for the
adult-use cannabis market, while continuing to use the “Hydropothecary” brand for the medical cannabis market. 

Pursuant to the OBCA, a change of name requires approval of the Shareholders by way of a special resolution, being a resolution passed by not less than two-thirds of the votes cast by Shareholders at the Meeting. Accordingly, at the Meeting, Shareholders will be asked to consider and, if deemed appropriate, to pass, with or without variation, the following special
resolution to approve the change of the name of the Corporation (the “Name Change Resolution”): 
 “BE IT HEREBY
RESOLVED AS A SPECIAL RESOLUTION OF THE CORPORATION THAT: 
  

	 	1.	 the change of the name of the Corporation to “HEXO Corp.” or such other similar name as the board of
directors of the Corporation may determine, in its sole discretion, and the Director appointed under the Business Corporations Act (Ontario) may permit, is hereby approved, and the articles of the Corporation be amended to effect such change
of name; 

  

	 	2.	 any one director or officer of the Corporation is authorized and directed, on behalf of the Corporation, to
execute, deliver and file any and all declarations, agreements, documents and other instruments and do all such other acts and things that such director or officer may determine to be necessary or desirable to give effect to this resolution
(including, without limitation, the delivery of articles of amendment in the prescribed form to the Director appointed under the Business Corporations Act (Ontario)), the execution, delivery and filing of any such declarations, agreements,
documents or other instruments and the doing of such act or thing being conclusive evidence of such determination; and 

  

	 	3.	 notwithstanding approval of the shareholders of the Corporation as herein provided, the board of directors of
the Corporation is hereby authorized to revoke this special resolution without further approval, ratification or confirmation of the shareholders of the Corporation at any time before it is acted upon.” 

If the Name Change Resolution is approved at the Meeting, it is the intention of the Board to effect the name change shortly after the Meeting (subject to
receipt of all necessary regulatory approvals, including the approval of the TSX and the Director appointed under the OBCA) through the filing of articles of amendment with the Director appointed under the OBCA. The change of name will become
effective on the date shown in the certificate of amendment issued pursuant to the OBCA. Notwithstanding approval of the proposed name change by Shareholders, the Board, in its sole discretion, may revoke the special resolution and abandon the name
change without further approval or action by, or prior notice to, Shareholders. 
 The Board believes that it is in the best interests of the Corporation to
approve the Name Change Resolution and, accordingly, recommends that Shareholders vote FOR the Name Change Resolution. Proxies received in favour of management designees will be voted FOR the Name Change Resolution, unless a Shareholder has
specified in the proxy that his, her or its Common Shares are to be voted against the Name Change Resolution. As a special resolution, at least two-thirds of the votes cast by Shareholders at the Meeting
are required to approve the Name Change Resolution. 

  
 5 

 2. Omnibus Long-Term Incentive Plan 

On June 27, 2018, the Board adopted a new omnibus long-term incentive plan for the Corporation (the “Omnibus Plan”). Prior to the
adoption of the Omnibus Plan by the Board, the sole security-based compensation plan which the Corporation had available in order to attract, retain and motivate directors, officers, senior executives and other employees of the Corporation and
consultants and service providers providing ongoing services to the Corporation, was its existing stock option plan (the “Existing Option Plan”), pursuant to which the Board was able to grant stock options to such individuals. With
the growth of the Corporation’s business subsequent to adoption of the Existing Option Plan, the Board determined it was in the best interests of the Corporation to adopt a new security-based compensation plan which would provide the Board with
the ability and flexibility to make broader and different forms of equity rewards as part of its need to retain a competitive compensation structure for its directors, officers, executives, employees, consultants and service providers. 

Consequently, the Board adopted the Omnibus Plan as a means to grant options (“Options”), restricted shares (“Restricted
Shares”), restricted share units (“RSUs”), deferred share units (“DSUs”), share appreciation rights (“SARs”) and retention awards (“Retention Awards”, and together with the
Options, the Restricted Shares, the RSUs, the DSUs and the SARs, the “Awards”) to directors, officers, senior executives and other employees of the Corporation or a subsidiary, consultants and service providers providing ongoing
services to the Corporation and its affiliates (“Eligible Participants”, and when such Eligible Participants are granted Awards (as defined below), the “Participants”) in order to attract, retain and motivate such
persons as individuals whose skills, performance and loyalty to the objectives and interests of the Corporation are necessary to the Corporation’s success, to incentivize them to continue their services for the Corporation, and to align their
interests with those of the Corporation. 
 A complete copy of the Omnibus Plan is set out in Appendix “A” of this Circular, and a summary of the
material provisions of the Omnibus Plan is set out below. 
 The adoption of the Omnibus Plan by the Board was subject to approval of the Omnibus Plan by
the Shareholders in accordance with the rules of the TSX. Under TSX rules, security-based compensation arrangements, like the Omnibus Plan, which have unallocated awards and no fixed aggregate maximum number of securities issuable, but permit the
issuance of up to an aggregate of 10% of the outstanding Common Shares from time to time, must be approved by shareholders upon adoption and every three years thereafter. Accordingly, at the Meeting, Shareholders will be asked to approve the Omnibus
Plan and the unallocated Awards issuable pursuant to the Omnibus Plan, as set out below. If approval of the Omnibus Plan is obtained at the Meeting, the Corporation will not be required to seek further approval of the grant of unallocated Awards
under the Omnibus Plan until the Corporation’s 2021 annual Shareholders’ meeting (provided that such meeting is held on or prior to August 28, 2021). 

Since the Omnibus Plan was adopted by the Board, 5,691,500 Options have been granted to certain directors, officers and
non-executive employees of the Corporation under the Omnibus Plan (the “Granted Options”), 4,325,000 of which were granted to directors and officers and 1,366,500 of which were granted to non-executive employees. The Granted Options have an exercise price of $4.89 per share and a term of 10 years, subject to vesting. One-third of the Granted Options vest on
July 12, 2019 being the one year anniversary of the date of grant and the balance vest quarterly over the following two years. The Granted Options cannot be exercised until such time that the Shareholders have approved and ratified the Omnibus
Plan and the grant of the Granted Options. Should Shareholders fail to approve the Omnibus Plan, the Granted Options will be cancelled forthwith (but could then be replaced by stock options under the Existing Option Plan as an alternative to the
Omnibus Plan). 
 Summary of the Omnibus Plan 
 The
following is a summary of the material provisions of the Omnibus Plan: 
  

			
	Administration	  	The Omnibus Plan is administered and interpreted by the Board. The Board may decide by resolution to appoint a committee of at least three members to administer and interpret the Omnibus Plan. The Board and the committee may also
delegate to one or more officers of the Corporation, or to a committee of such officers, the authority, subject to such terms and limitations as the Board or the committee may determine,
to

  
 6 

			
		
		  	grant, cancel, modify, waive rights with respect to, alter, discontinue, suspend or terminate Awards.
		
	Eligibility	  	The persons eligible to receive Awards are the Eligible Participants.
		
	Reserve Maximum	  	 Subject to adjustment, the total number of Common Shares reserved and available for grant and issuance pursuant to Awards shall not exceed a
number of Common Shares equal to ten percent (10%) of the total issued and outstanding Common Shares of the Corporation at the time of granting of Awards (on a non-diluted basis) or such other number as may be
approved by the Shareholders of the Corporation from time to time.
  
 The Omnibus Plan
is a “rolling plan” or “evergreen plan”. This means any increase in the issued and outstanding Common Shares (whether as a result of exercise of Awards or otherwise) will result in an increase in the number of Common Shares that
may be issued on Awards outstanding at any time and any increase in the number of Awards granted will, upon exercise, make new grants available under the Omnibus Plan.

		
	Current Reserve	  	 As of the date of this Circular, the Corporation had 193,629,116 Common Shares issued and outstanding. Consequently, 19,362,911 Common Shares
are available to be reserved for issuance under the Omnibus Plan. This represents 10% of the issued and outstanding Common Shares.
  

Since the Omnibus Plan was adopted by the Board, the 5,691,500 Granted Options have been granted to certain directors, officers and non-executive employees of the Corporation, subject to ratification by the Shareholders. Accordingly, 13,671,411 Common Shares remain available for issuance under the Omnibus Plan following the issuance of the
Granted Options.
  
 The Corporation does not currently have any other security-based
compensation plan other than the Existing Option Plan, under which stock options to acquire 9,323,396 Common Shares have been issued as of the date of this Circular. No additional stock options will be issued under the Existing Option Plan. The
stock options issued under the Existing Option Plan are in addition to any Awards which may be made under the Omnibus Plan. Accordingly, the Corporation has a combined total of 28,686,307 Common Shares available for issuance under the Omnibus Plan
and the Existing Option Plan. This represents 14.8% of the issued and outstanding Common Shares.

		
	Participation Limits	  	The aggregate number of Common Shares (i) issued to insiders under the Omnibus Plan or any other proposed or established security-based compensation arrangement within any one-year period
and (ii) issuable to insiders at any time under the Omnibus Plan or any other proposed or established security-based compensation arrangement, shall in each case not exceed ten percent (10%) of the issued and outstanding Common Shares (on a non-diluted basis).
		
	 Market Value
 as of Grant
	  	 Restricted Shares
  

Restrictions and conditions on the disposition of Restricted Shares that are granted are determined by the Board at the time of grant.

 
 Options

 
 The option price for Common Shares that are the subject of any Option shall be
determined by the Board at the time the Option is granted, but may not be less than Market Value at the time of grant. The terms of the Omnibus Plan allow for the exercise of an Option on a cashless basis. The number of Common Shares received on the
cashless exercise of an Option is determined by taking (i) the difference between (A)

  
 7 

			
		
		  	 the Market Value and (B) the exercise price of such Option, (ii) multiplying that difference by the number of Common Shares to
which such Option relates, and then (iii) dividing that product by the Market Value.
  

DSUs
  

Each Eligible Participant may elect, once each calendar year, to be paid a percentage of his or her annual retainer in the form of DSUs. The number of DSUs an
Eligible Participant is entitled to receive is calculated by taking (i) the percentage elected by the Eligible Participant, (ii) multiplying that percentage by the Eligible Participant’s annual retainer, and then (iii) dividing
that product by the Market Value.
  
 RSUs

 
 The purchase price of an RSU is determined by the Board and may be zero.

 
 SARs
  

The exercise price of a SAR shall be fixed by the Board, but may not be less than the Market Value at the time of grant. Upon exercise, the holder is entitled
to receive the number of Common Shares equal to the excess of the Market Value on the effective date of such exercise over the exercise price of the SAR.
  

Retention Awards
  

A retention award entitles an Eligible Participant to receive the number of Common Shares that is equal to the retention payment divided by the Market Value on
the vesting date of the retention award, disregarding fractions and less any amounts withheld for taxes.
  

“Market Value” means at any date when the Market Value of Common Shares of the Corporation is to be determined, the volume weighted average
trading price of the Common Shares on the five trading days prior to the date of grant, calculated by dividing the total value by the total volume of Common Shares traded for the five trading days prior to the date of grant on the principal stock
exchange on which the Common Shares are listed, or if the Common Shares are not listed on any stock exchange, the value as is determined solely by the Board, acting reasonably and in good faith.

		
	Market Appreciation/Dividend Payment	  	 The Omnibus Plan contemplates the award of SARs.
  

In addition, a holder of DSUs is entitled to receive additional DSUs (or fractions thereof) when dividends are declared and paid on Common Shares. The
additional DSUs are based on (i) the actual amount of dividends that would have been paid if the Participant had held Common Shares under the Omnibus Plan on the applicable record date divided by (ii) the Market Value on the date on which
the dividends on Common Shares are payable.

		
	Vesting	  	 Restricted Shares
  

The Omnibus Plan does not contemplate any required vesting of the Restricted Shares. Restrictions and conditions on the disposition of Restricted Shares are
determined by the Board at the time of grant.

  
 8 

			
		
		  	 Options
  

The Board shall, from time to time by resolution, determine the vesting provisions of the Options.

 
 DSUs
  

The Board may, at the time of grant, make DSUs subject to restrictions and conditions (i.e. continuing employment or achievement of pre-established performance goals). DSUs are exercisable immediately following the date a Participant resigns or is terminated.
  

RSUs
  

The relevant conditions and vesting provisions of a RSU are determined by the Board (including the performance period and criteria, if any). In making its
determination regarding the vesting requirements applicable to any RSUs, the Board shall ensure that such requirements are not considered a “salary deferral arrangement” for purposes of applicable legislation. The Board also sets a date
upon which it is determined whether the vesting conditions with respect to RSUs have been met (the “RSU Vesting Determination Date”). This then establishes the number of RSUs that become vested. The RSU Vesting Determination Date
cannot fall outside the period (the “Restricted Period”) that ends on December 31 of the year that is three (3) years after the calendar year in which the grant of RSUs was made. Any RSU that remains unvested on the RSU
Vesting Determination or at the end of the Restricted Period, whichever is earlier, is cancelled.
  

SARs
  

The relevant conditions and vesting provisions of a SAR are determined by the Board (including the performance period and criteria, if any).

 
 Retention Awards

 
 The relevant conditions and vesting provisions of a Retention Award are determined by
the Board (including the performance period and criteria, if any).

		
	Term	  	 Restricted Shares
  

Determined by the Board.
  

Options
  

The Board shall determine the period in which an Option is exercisable. An Option cannot expire later than ten (10) years from the date it is granted.

 
 DSUs
  

A Participant may redeem his or her DSUs up to the 120th day after the date of his or her termination.

 
 RSUs
  

The Board shall determine the Restricted Period, provided such Restricted Period cannot expire later than December 31 of the year that is three
(3) years after the calendar year in which the grant of RSUs was made.

  
 9 

			
		
		  	 SARs
  

The Board shall determine the period during which a SAR is exercisable, provided such period cannot expire more than ten (10) years from the date the SAR
was granted. Retention Awards The relevant conditions and vesting provisions of a Retention Award are determined by the Board (including the performance period and criteria, if any).

		
	Cessation	  	 Options, SARs and Retention Awards
  

Termination for Cause.
  

Any Option, SAR or Retention Award, or any unexercised or unvested portion thereof, shall terminate when a Participant ceases to be an Eligible Participant for
“cause”.
  
 Death.

 
 Any vested Option, SAR or Retention Award or the unexercised portion thereof
(“Vested Award”), may be exercised by the estate of a Participant if such Participant dies while he or she is an Eligible Participant. However, a Vested Award must be exercised (i) within one (1) year of the
Participant’s death or (ii) prior to the expiration of the original term of such Vested Award, whichever is earlier.
  

Disability.
  

Any Option, SAR or Retention Award, or any unexercised portion thereof, may be exercised by the Participant or his/her representative as the rights to exercise
accrue. However, the Award must be exercised (i) within three (3) years of the disability, (ii) until the Participant becomes eligible for long-term disability benefits, or (iii) prior to the expiration of the original term of
the Award, whichever is earlier.
  
 Other.

 
 If a Participant ceases to be an Eligible Participant for any reason other than for
“cause”, death, or disability, the right to exercise an Option, SAR or Retention Award shall be limited to and expire on the earlier of (i) one (1) year after the date the Participant ceases to be an Eligible Participant or
(ii) the expiry date of the Award set forth in the agreement pursuant to which the Award was granted.
  

RSUs
  

Termination for Cause.
  

Any unvested RSUs credit to a Participant’s account shall be forfeited and cancelled immediately upon such Participant ceasing to be an Eligible
Participant for “cause” or by resignation.
  
 Cessation of
Employment.
  
 When a Participant retires, becomes eligible to receive long-term
disability benefits, or has his or her employment terminated for reasons other than “cause” or by reason of injury or disability, such Participant’s participation in the Omnibus Plan shall be terminated immediately. Unvested RSUs
shall remain in effect until the applicable RSU Vesting Determination Date.

  
 10 

			
		  	 Retirement.
  

If a Participant retires and becomes involved in another business or activity in the cannabis industry prior to the applicable RSU Determination Date, then
(i) if the Board determines the vesting conditions have not been met on the RSU Vesting Determination Date, the unvested RSUs of such Participant shall be forfeited and cancelled, or (ii) if the Board determines the vesting conditions have
been met on the RSU Vesting Determination Date, such Participant is entitled to receive the number of Common Shares he or she is entitled to in respect of such RSUs adjusted for the length of service provided by the Participant to the
Corporation.
  
 Death.

 
 If a Participant dies, his or her participation in the Omnibus Plan terminates
immediately. All unvested RSUs remain in effect until the RSU Vesting Determination Date. If the Board determines the vesting conditions have not been met on the RSU Vesting Determination Date, the unvested RSUs of such deceased Participant shall be
forfeited and cancelled. If the Board determines the vesting conditions have been met on the RSU Vesting Determination Date, such deceased Participant is entitled to receive the number of Common Shares he or she is entitled to in respect of such
RSUs adjusted for the length of service provided by the Participant to the Corporation.
  

Leave of Absence.
  

If a Participant voluntarily takes a leave of absence, his or her participation in the Omnibus Plan terminates immediately. All unvested RSUs remain in effect
until the RSU Vesting Determination Date. If the Board determines the vesting conditions have not been met on the RSU Vesting Determination Date, the unvested RSUs of such Participant shall be forfeited and cancelled. If the Board determines the
vesting conditions have been met on the RSU Vesting Determination Date, such Participant is entitled to receive the number of Common Shares he or she is entitled to in respect of such RSUs adjusted for the length of service provided by the
Participant to the Corporation.
  
 Restricted Shares

 
 Upon a Participant ceasing to be an Eligible Participant for any reason, any Restricted
Shares that have not vested at such time shall automatically be deemed to have been reacquired by the Corporation.

		
	Assignability	  	Awards granted under the Omnibus Plan are transferrable or assignable only to a “permitted assign”. A permitted assign means the spouse of a Participant or a trustee, holding entity, or RRSP/RRIF of the Participant or his
or her spouse.
		
	Amendments	  	 The Board may amend the Omnibus Plan or any Award with consent of the Participants provided that the amendment shall:

 
 •  not adversely alter or impair
any Award previously granted;
  

•  be subject to any regulatory approvals;

 
 •  be subject to Shareholder
approval, where required, provided that Shareholder approval is not required for following amendments and the Board may make any changes which may include but are not limited to: (i) amendments of a “housekeeping” nature; (ii) a
change to the vesting provisions of any Award; (iii) the introduction or amendment of a cashless exercise feature payable in securities,

  
 11 

			
		  	        whether or not such feature provides for a full
deduction of the number of underlying securities from the Omnibus Plan reserve; and (iv) the addition of or amendment to any form of financial assistance.
  

The Board needs Shareholder approval to make the following amendments:
  

•  any change to the maximum number of Common Shares issuable under the Omnibus Plan, except any
increase due to an adjustment or due to the evergreen nature of the plan;
  

•  any amendment that reduces the exercise price of an Award;

 
 •  any amendment that extends
the expiry date of an Award;
  

•  any amendment that changes the Eligible Participants, including a change that would have the
potential to broaden the participation by insiders;
  

•  any amendment that would permit an Award to be transferable or assignable other than as currently
permitted;
  
 •  any amendment
that increases the maximum number of shares issuable or issued to insiders; and
  

•  any amendment to the amendment provisions of the Omnibus Plan.

 
 Common Shares held directly or indirectly by insiders that may benefit from certain
amendments shall be excluded from voting when obtaining Shareholder approval.

		
	Financial Assistance	  	The Omnibus Plan does not contain any form of financial assistance.
		
	Ratification	  	The Board has not made any grant of Awards that is subject to ratification.
		
	Black-out Period	  	If the expiration date of an Option or SAR falls within a black-out period or within the ten (10) business days following the end of the black-out
period, then the expiration of the Option or SAR is extended to the tenth (10th) business day following the end of the black-out period.
		
	Change of Control	  	 In the event of a “Change in Control”, a reorganization of the Corporation, an amalgamation of the Corporation, an arrangement
involving the Corporation, a take-over bid (as that term is defined in the Securities Act (Québec)) for all of the Common Shares or the sale or disposition of all or substantially all of the property and assets of the Corporation, the
Board may make such provision for the protection of the rights of the Participants as the Board in its discretion considers appropriate in the circumstances.
  

“Change in Control” means an event whereby (i) any person becomes the beneficial owner, directly or indirectly, of 50% or more of either
the issued and outstanding Common Shares or the combined voting power of the Corporation’s then outstanding voting securities entitled to vote generally; (ii) any person acquires, directly or indirectly, securities of the Corporation to
which is attached the right to elect the majority of the directors of the Corporation; or (iii) the Corporation undergoes a liquidation or dissolution or sells all or substantially all of its assets.

		
	Adjustments	  	The Omnibus Plan may be adjusted if certain changes are made to the Corporation’s capitalization (e.g. subdivision, consolidation or reclassification of or a distribution of assets on (other than an ordinary course dividend)
the Common Shares) in order to preclude a dilution or enlargement of the benefits due to Participants under the Omnibus Plan.

  
 12 

 Shareholder Approval of the Omnibus Plan 

At the Meeting, Shareholders will be asked to consider and, if deemed appropriate, to pass, with or without variation, the following resolution to approve the
Omnibus Plan and the unallocated Awards issuable thereunder (the “Omnibus Plan Resolution”): 
 “WHEREAS the Board of
Directors of the Corporation approved on June 27, 2018 the adoption of an omnibus long-term incentive plan (the “Omnibus Plan”) of the Corporation, as set out in the management information circular of the Corporation dated
July 16, 2018 (the “Circular”); 
 AND WHEREAS since the Omnibus Plan was adopted by the Board, on July 12, 2018,
the Board of Directors of the Corporation granted 5,691,500 stock options to certain directors, officers and non-executive employees of the Corporation under the Omnibus Plan (the “Granted
Options”) which are subject to shareholder ratification, 4,325,000 of which were granted to directors and officers and 1,366,500 of which were granted to non-executive employees and all of which have
an exercise price of $4.89 per share and a term of 10 years, subject to vesting, as set out in the Circular; 
 NOW THEREFORE BE IT HEREBY
RESOLVED THAT: 
  

	 	1.	 the Omnibus Plan as set out in the Circular be and is hereby approved; 

 

	 	2.	 the Granted Options as set out in the Circular be and are hereby ratified; 

 

	 	3.	 the Corporation be and is hereby authorized to grant Awards (as defined under the Omnibus Plan) to acquire up
to 10% of the issued and outstanding common shares in the capital of the Corporation from time to time in accordance with the terms of the Omnibus Plan; and 

  

	 	4.	 any one director or officer of the Corporation be and is hereby authorized, for and on behalf of the
Corporation, to execute and deliver all documents and do all things as such person may determine to be necessary or advisable to give effect to this resolution, the execution of any such document or the doing of any such other act or thing being
conclusive evidence of such determination.” 

 The Board believes that it is in the best interests of the Corporation to approve the
Omnibus Plan Resolution and, accordingly, recommends that Shareholders vote FOR the Omnibus Plan Resolution. Proxies received in favour of management designees will be voted FOR the Omnibus Plan Resolution, unless a Shareholder has specified in
the proxy that his, her or its Common Shares are to be voted against the Omnibus Plan Resolution. As an ordinary resolution, a majority of the votes cast by Shareholders at the Meeting are required to approve the Omnibus Plan Resolution. 

INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS 

No director, proposed director, executive officer, nor any of their respective associates or affiliates, is or has been indebted to the Corporation or its
subsidiaries since the beginning of the Corporation’s most recently completed financial year. 
 TRANSFER AGENT AND REGISTRAR

 The Corporation’s transfer agent and registrar for the Common Shares is TSX Trust Company at its office at 100 Adelaide Street West
Toronto, Ontario, M5H 4H1. 

  
 13 

 INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS 

Except as disclosed in this Circular, neither the Corporation nor any director or officer of the Corporation, nor any proposed nominee for election as a
director of the Corporation, nor any other insider of the Corporation, nor any associate or affiliate of any one of them has or has had, at any time since the beginning of the year ended July 31, 2018, any material interest, direct or indirect,
in any transaction or proposed transaction that has materially affected or would materially affect the Corporation. 
 OTHER MATTERS WHICH
MAY COME BEFORE THE MEETING 
 Management of the Corporation knows of no matters to come before the Meeting other than as set forth in this Circular.
HOWEVER, IF OTHER MATTERS WHICH ARE NOT KNOWN TO THE MANAGEMENT SHOULD PROPERLY COME BEFORE THE MEETING, THE ENCLOSED FORM OF PROXY WILL BE USED TO VOTE ON SUCH MATTERS IN ACCORDANCE WITH THE BEST JUDGMENT OF THE PERSONS VOTING THE PROXY.

 ADDITIONAL INFORMATION 
 Additional
information relating to the Corporation is available under the Corporation’s profile on SEDAR at www.sedar.com. Financial information is provided in the Corporation’s audited comparative financial statements and management’s
discussion and analysis for the year ended July 31, 2018. Copies of the Corporation’s financial statements and management’s discussion and analysis may be obtained under the Corporation’s profile on SEDAR at www.sedar.com or upon
written request to the Corporate Secretary at 490 St-Joseph, Suite 204, Gatineau, Québec, J8Y 3Y7. 

APPROVAL OF BOARD 
 The contents of this
Circular and delivery of it to each director of the Corporation, to the auditors of the Corporation and to the Shareholders of the Corporation entitled to notice of the Meeting, have been approved by the directors of the Corporation. 

DATED at Gatineau, Québec this 16th day of July, 2018. 

 

	
	BY ORDER OF THE BOARD OF DIRECTORS
	
	(Signed) “Sebastien
St-Louis”                                
  
	Sebastien St-Louis
	Chief Executive Officer and Director

  

  
 14 

 APPENDIX “A” 

OMNIBUS LONG-TERM INCENTIVE PLAN 

(See Attached) 

 THE HYDROPOTHECARY CORPORATION 

OMNIBUS LONG-TERM INCENTIVE PLAN 
  

 
 June 27,
2018 
  

 TABLE OF CONTENTS 

 

							
	ARTICLE 1 — DEFINITIONS	  	 	1	 
			
	Section 1.1	 	 Definitions.
	  	 	1	 
		
	ARTICLE 2 — PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS	  	 	4	 
			
	Section 2.1	 	 Purpose of the Plan.
	  	 	4	 
	Section 2.2	 	 Implementation and Administration of the Plan.
	  	 	5	 
	Section 2.3	 	 Eligible Participants.
	  	 	5	 
	Section 2.4	 	 Shares Subject to the Plan.
	  	 	6	 
	Section 2.5	 	 Granting of Awards.
	  	 	6	 
		
	ARTICLE 3 — RESTRICTED SHARES	  	 	6	 
			
	Section 3.1	 	 Nature of Restricted Shares.
	  	 	6	 
	Section 3.2	 	 Restricted Share Awards.
	  	 	7	 
	Section 3.3	 	 Payment to Participant.
	  	 	7	 
	Section 3.4	 	 Restricted Share Agreements.
	  	 	8	 
		
	ARTICLE 4 — OPTIONS	  	 	8	 
			
	Section 4.1	 	 Nature of Options.
	  	 	8	 
	Section 4.2	 	 Option Awards.
	  	 	8	 
	Section 4.3	 	 Option Price.
	  	 	8	 
	Section 4.4	 	 Option Term.
	  	 	8	 
	Section 4.5	 	 Exercise of Options.
	  	 	8	 
	Section 4.6	 	 Method of Exercise and Payment of Purchase Price.
	  	 	9	 
	Section 4.7	 	 Option Agreements.
	  	 	9	 
		
	ARTICLE 5 — DEFERRED SHARE UNITS 	  	 	10	 
			
	Section 5.1	 	 Nature of DSUs.
	  	 	10	 
	Section 5.2	 	 Election to Participate.
	  	 	10	 
	Section 5.3	 	 DSU Awards.
	  	 	10	 
	Section 5.4	 	 Redemption of DSUs.
	  	 	10	 
	Section 5.5	 	 Award of Dividend Equivalents.
	  	 	11	 
	Section 5.6	 	 Unfunded Plan.
	  	 	11	 
	Section 5.7	 	 DSU Agreements.
	  	 	11	 
		
	ARTICLE 6 — RESTRICTED SHARE UNITS	  	 	11	 
			
	Section 6.1	 	 Nature of RSUs.
	  	 	11	 
	Section 6.2	 	 RSU Awards.
	  	 	12	 
	Section 6.3	 	 Restriction Period.
	  	 	12	 
	Section 6.4	 	 Performance Criteria and Performance Period.
	  	 	12	 
	Section 6.5	 	 RSU Vesting Determination Date.
	  	 	12	 
	Section 6.6	 	 Settlement of RSUs.
	  	 	13	 
	Section 6.7	 	 Determination of Amounts.
	  	 	13	 
	Section 6.8	 	 RSU Agreements.
	  	 	14	 

							
		
	ARTICLE 7 — SHARE APPRECIATION RIGHTS	  	 	14	 
			
	Section 7.1	 	 Nature of SARs.
	  	 	14	 
	Section 7.2	 	 SAR Awards.
	  	 	14	 
	Section 7.3	 	 SAR Price.
	  	 	14	 
	Section 7.4	 	 SAR Term.
	  	 	14	 
	Section 7.5	 	 Exercise of SARs.
	  	 	15	 
	Section 7.6	 	 Method of Exercise and Payment of Purchase Price.
	  	 	15	 
	Section 7.7	 	 SAR Agreements.
	  	 	15	 
		
	ARTICLE 8 — RETENTION AWARDS	  	 	16	 
			
	Section 8.1	 	 Nature of Retention Awards.
	  	 	16	 
	Section 8.2	 	 Retention Awards.
	  	 	16	 
	Section 8.3	 	 Payment to Participant.
	  	 	16	 
	Section 8.4	 	 Retention Award Agreements.
	  	 	16	 
		
	ARTICLE 9 —GENERAL CONDITIONS	  	 	17	 
			
	Section 9.1	 	 General Conditions applicable to Awards.
	  	 	17	 
	Section 9.2	 	 General Conditions applicable to Options, SARs and Retention Awards.
	  	 	17	 
	Section 9.3	 	 General Conditions applicable to RSUs.
	  	 	18	 
	Section 9.4	 	 General Conditions applicable to Restricted Shares.
	  	 	20	 
		
	ARTICLE 10 —ADJUSTMENTS AND AMENDMENTS	  	 	21	 
			
	Section 10.1	 	 Adjustment to Shares Subject to Outstanding Awards.
	  	 	21	 
	Section 10.2	 	 Amendment or Discontinuance of the Plan.
	  	 	22	 
		
	ARTICLE 11 — MISCELLANEOUS	  	 	23	 
			
	Section 11.1	 	 Use of an Administrative Agent and Trustee.
	  	 	23	 
	Section 11.2	 	 Tax Withholding.
	  	 	23	 
	Section 11.3	 	 Reorganization of the Corporation.
	  	 	24	 
	Section 11.4	 	 Personal Information
	  	 	24	 
	Section 11.5	 	 Governing Laws.
	  	 	24	 
	Section 11.6	 	 Severability.
	  	 	24	 
	Section 11.7	 	 Effective Date of the Plan.
	  	 	25	 

  
 - 2 - 

 THE HYDROPOTHECARY CORPORATION 

OMNIBUS LONG-TERM INCENTIVE PLAN 
 The
Hydropothecary Corporation (the “Corporation”) hereby establishes this Omnibus Long-Term Incentive Plan for Eligible Participants and for the purposes set out herein. 

ARTICLE 1 — DEFINITIONS 

Section 1.1 Definitions. 
 Where used herein or in
any amendments hereto or in any communication required or permitted to be given hereunder, the following terms shall have the following meanings, respectively, unless the context otherwise requires: 

“Account” means an account maintained for each Participant on the books of the Corporation which will be credited with Awards, including any
Dividend Equivalents, in accordance with the terms of this Plan; 
 “Affiliate” has the meaning given to this term in the Securities
Act (Québec), as such legislation may be amended, supplemented or replaced from time to time; 
 “Associate”, where used to
indicate a relationship with a Participant, means (i) any partner of that Participant and (ii) the spouse of that Participant and that Participant’s children, as well as that Participant’s relatives and that Participant’s
spouse’s relatives, if they share that Participant’s residence; 
 “Awards” means an Option, a SAR, a Restricted Share, a RSU, a
DSU or a Retention Award granted to a Participant pursuant to the terms of the Plan; 
 “Black-Out
Period” means a period of time when pursuant to any policies of the Corporation, any securities of the Corporation may not be traded by certain persons designated by the Corporation; 

“Board” has the meaning ascribed thereto in Section 2.2(1) hereof; 

“Broker” means a broker independent from the Corporation or any of its Subsidiaries who has been designated by the Corporation as the broker
that will purchase Shares pursuant to the Plan and who is a member of the principal Canadian stock exchange or other public exchange on which the Shares are listed, or, if the Shares are not then listed, as selected by the Board acting in good
faith; 
 “Business Day” means a day other than a Saturday, Sunday or statutory holiday, when banks are generally open for business
in Gatineau, Québec, Canada, for the transaction of banking business; 
 “Cash Equivalent” means the amount of money equal to
the Market Value multiplied by the number of vested RSUs in the Participant’s Account, net of any applicable taxes in accordance with Section 11.2, on the RSU Settlement Date; 

“Change in Control” means an event whereby (i) any Person becomes the beneficial owner, directly or indirectly, of 50% or more of either
the issued and outstanding Shares or the combined voting power of the Corporation’s then outstanding voting securities entitled to vote generally; (ii) any Person acquires, directly or indirectly, securities of the Corporation to which is
attached the right to elect the majority of the directors of the Corporation; or (iii) the Corporation undergoes a liquidation or dissolution or sells all or substantially all of its assets; 

“Code of Conduct” means any code of conduct adopted by the Corporation, as modified from time to time; 

 “Committee” has the meaning ascribed thereto in Section 2.2(1) hereof; 

“Corporation” means The Hydropothecary Corporation, a corporation existing under the Business Corporations Act (Ontario), and its
successors from time to time; 
 “Dividend Equivalent” means a bookkeeping entry equivalent in value to a dividend paid on a Share credited
to a Participant’s Account in accordance with Section 5.5 hereof; 
 “DSU” means a deferred share unit, which is a bookkeeping
entry equivalent in value to a Share credited by the Corporation to a Participant’s Account in accordance with Article 5 hereof, subject to the provisions of this Plan; 

“DSU Agreement” means a written letter agreement between the Corporation and a Participant evidencing the grant of DSUs and the terms
and conditions thereof; 
 “Eligibility Date” has the meaning ascribed thereto in Section 9.2(3) hereof; 

“Eligible Participants” has the meaning ascribed thereto in Section 2.3(1) hereof; 

“Employment Agreement” means, with respect to any Participant, any written employment agreement between the Corporation or an affiliate and
such Participant; 
 “Exercise Notice” means a notice in writing signed by a Participant and stating the Participant’s intention to
exercise a particular Award, if applicable; 
 “Grant Agreement” means an agreement evidencing the grant to a Participant of an Award,
including a Restricted Share Agreement, an Option Agreement, a SAR Agreement, a DSU Agreement, a RSU Agreement, a Retention Award Agreement or an Employment Agreement; 

“Insider” has the meaning given to the term in Part I of the TSX Company Manual, as same may be amended, supplemented or replaced from time
to time; 
 “Market Value” means at any date when the Market Value of Shares of the Corporation is to be determined, the volume weighted
average trading price of the Shares on the five Trading Days prior to the date of grant, calculated by dividing the total value by the total volume of Shares traded for the five Trading Days prior to the date of grant on the principal stock exchange
on which the Shares are listed, or if the Shares of the Corporation are not listed on any stock exchange, the value as is determined solely by the Board, acting reasonably and in good faith; 

“Notice of Redemption” means the written notice by a Participant, or the administrator or liquidator of the estate of the Participant, to the
Corporation of the Participant’s wish to redeem his or her DSUs for cash or Shares; 
 “Option” means an option granted by the
Corporation to a Participant entitling such Participant to acquire a designated number of Shares from treasury at the Option Price, subject to the provisions of this Plan; 

“Option Agreement” means a written letter agreement between the Corporation and a Participant evidencing the grant of Options and the terms
and conditions thereof; 
 “Option Price” has the meaning ascribed thereto in Section 4.2 hereof; 

“Option Term” has the meaning ascribed thereto in Section 4.4(1) hereof; 

“Participants” means Eligible Participants that are granted Awards under the Plan; 

  
 - 2 - 

 “Participant’s Account” means an account maintained for each Participant’s
participation in DSUs and/or RSUs under the Plan; 
 “Performance Criteria” means criteria established by the Board which, without
limitation, may include criteria based on the Participant’s personal performance and/or the financial performance of the Corporation and/or of its Affiliates, and that may be used to determine the vesting of the Awards, when applicable; 

“Performance Period” means the period determined by the Board pursuant to Section 6.3 hereof; 

“Person” means an individual, corporation, company, cooperative, partnership, trust, unincorporated association, entity with juridical
personality or governmental authority or body, and pronouns which refer to a Person shall have a similarly extended meaning; 
 “Plan”
means this Omnibus Long-Term Incentive Plan, as amended and restated from time to time; 
 “Restricted Share” means a Share granted to a
Participant with such restrictions and conditions upon the Participant’s disposition of such Shares as may be determined by the Board at the time of the grant and granted in accordance with Article 3 hereof, subject to the provisions of this
Plan; 
 “Restricted Share Agreement” means a written letter agreement between the Corporation and a Participant evidencing the grant of
Restricted Shares and the terms and conditions thereof; 
 “Restriction Period” means the period determined by the Board pursuant to
Section 6.4(1) hereof; 
 “Retention Award” means any payment to a Participant that is not payable periodically for services provided
by the Participant, as determined by the Board from time to time, as provided in Article 8 hereof. 
 “Retention Award Agreement” means a
written letter agreement between the Corporation and a Participant evidencing the grant of Retention Awards and the terms and conditions thereof; 

“Retention Payment” means the retention payment specified in the Retention Agreement or Employment Agreement; 

“RSU” means a right awarded by the Corporation to a Participant to receive a payment in the form of Shares as provided in Article 3 hereof,
subject to the provisions of this Plan; 
 “RSU Agreement” means a written letter agreement between the Corporation and a Participant
evidencing the grant of RSUs and the terms and conditions thereof; 
 “RSU Settlement Date” has the meaning determined in
Section 6.6(1)(a); 
 “RSU Settlement Notice” means a notice by a Participant to the Corporation electing the desired form of
settlement of vested RSUs. 
 “RSU Vesting Determination Date” has the meaning described thereto in Section 6.5 hereof; 

“SAR” means a right granted to a Participant as provided in Article 7 hereof to receive, upon exercise by the Participant, the excess of
(i) the Market Value of one Share on the date of exercise over (ii) the grant price of the right on the date of grant, or if granted in connection with an outstanding Option on the date of grant of the related Option, as specified by the
Board in its sole discretion, which, except in the case of Substitute Awards, shall not be less than the Market Value of one Share on such date of grant of the right or the related Option, as the case may be, subject to the provisions of this Plan;

  
 - 3 - 

 “SAR Agreement” means a written letter agreement between the Corporation and a
Participant evidencing the grant of SARs and the terms and conditions thereof; 
 “SAR Price” has the meaning ascribed thereto in
Section 7.2 hereof; 
 “SAR Term” has the meaning ascribed thereto in Section 7.4(1) hereof; 

“Share Compensation Arrangement” means a stock option, stock option plan, employee stock purchase plan, long-term incentive plan or any other
compensation or incentive mechanism involving the issuance or potential issuance of Shares to one or more full-time employees, directors, officers, insiders, service providers or consultants of the Corporation or a Subsidiary including a share
purchase from treasury by a full-time employee, director, officer, insider, service provider or consultant which is financially assisted by the Corporation or a Subsidiary by way of a loan, guarantee or otherwise; 

“Shares” means the common shares in the share capital of the Corporation; 

“Subsidiary” means a corporation, company or partnership that is controlled, directly or indirectly, by the Corporation; 

“Successor Corporation” has the meaning ascribed thereto in Section 10.1(3) hereof; 

“Tax Act” means the Income Tax Act (Canada) and its regulations thereunder, as amended from time to time. 

“Termination Date” means (i) in the event of a Participant’s resignation, the date on which such Participant ceases to be an
employee of the Corporation or a Subsidiary and (ii) in the event of the termination of the Participant’s employment by the Corporation or a Subsidiary, the effective date of the termination as specified in the notice of termination
provided to the Participant by the Corporation or the Subsidiary, as the case may be; 
 “Trading Day” means any day on which the TSX is
opened for trading; 
 “TSX” means the Toronto Stock Exchange; and 

“Vested Awards” has the meaning described thereto in Section 9.2(2) hereof. 

ARTICLE 2 — PURPOSE AND ADMINISTRATION OF THE PLAN; GRANTING OF AWARDS 

Section 2.1 Purpose of the Plan. 
  

	(1)	 The purpose of the Plan is to permit the Corporation to grant Awards to Eligible Participants, subject to
certain conditions as hereinafter set forth, for the following purposes: 

  

	 	(a)	 to increase the interest in the Corporation’s welfare of those Eligible Participants, who share
responsibility for the management, growth and protection of the business of the Corporation or a Subsidiary; 

  

	 	(b)	 to provide an incentive to such Eligible Participants to continue their services for the Corporation or a
Subsidiary and to encourage such Eligible Participants whose skills, performance and loyalty to the objectives and interests of the Corporation or a Subsidiary are necessary or essential to its success, image, reputation or activities;

  

	 	(c)	 to reward the Participants for their performance of services while working for the Corporation or a Subsidiary;
and 

  
 - 4 - 

	 	(d)	 to provide a means through which the Corporation or a Subsidiary may attract and retain able Persons to enter
its employment. 

 Section 2.2 Implementation and Administration of the Plan. 

 

	(1)	 The Plan shall be administered and interpreted by the Board of Directors of the Corporation (the
“Board”) or, if the Board by resolution so decides, by a committee appointed by the Board (the “Committee”) and consisting of not less than three (3) members of the Board. If a Committee is appointed for this
purpose, all references to the term “Board” will be deemed to be references to the Committee. 

  

	(2)	 The Board or, for greater certainty, the Committee, may, from time to time, as it may deem expedient, adopt,
amend and rescind rules, regulations and policies for carrying out the provisions and purposes of the Plan, subject to any applicable rules of the TSX. Subject to the provisions of the Plan, the Board or, for greater certainty, the Committee, is
authorized, in its sole discretion, to make such determinations under, and such interpretations of, and take such steps and actions in connection with, the proper administration of the Plan as it may deem necessary or advisable. The interpretation,
construction and application of the Plan and any provisions hereof made by the Board or, for greater certainty, the Committee, shall be final and binding on all Eligible Participants. 

 

	(3)	 No member of the Board or, for greater certainty, the Committee, shall be liable for any action or
determination taken or made in good faith in the administration, interpretation, construction or application of the Plan or any Award granted hereunder. 

  

	(4)	 Any determination approved by a majority of the Board or, for greater certainty, the Committee, shall be deemed
to be a determination of that matter by the Board or, for greater certainty, the Committee. 

  

	(5)	 Subject to the terms of this Plan and applicable law, the Board or, for greater certainty, the Committee, may
delegate to one or more officers of the Corporation, or to a committee of such officers, the authority, subject to such terms and limitations as the Board or the Committee may determine, to grant, cancel, modify, waive rights with respect to, alter,
discontinue, suspend or terminate Awards. 

 Section 2.3 Eligible Participants. 

 

	(1)	 The Persons who shall be eligible to receive Awards (“Eligible Participants”) shall be the
directors, officers, senior executives and other employees of the Corporation or a Subsidiary, consultants and service providers providing ongoing services to the Corporation and its Affiliates. In determining Awards to be granted under the Plan,
the Board shall give due consideration to the value of each Eligible Participant’s present and potential future contribution to the Corporation’s success. For greater certainty, a Person whose employment with the Corporation or a
Subsidiary has ceased for any reason, or who has given notice or been given notice of such cessation, whether such cessation was initiated by such employee, the Corporation or such Subsidiary, as the case may be, shall cease to be eligible to
receive Awards hereunder as of the date on which such Person provides notice to the Corporation or the Subsidiary, as the case may be, in writing or verbally, of such cessation, or on the Termination Date for any cessation of a Participant’s
employment initiated by the Corporation. 

  

	(2)	 Participation in the Plan shall be entirely voluntary and any decision not to participate shall not affect an
Eligible Participant’s relationship or employment with the Corporation. 

  
 - 5 - 

	(3)	 Notwithstanding any express or implied term of this Plan to the contrary, the granting of an Award pursuant to
the Plan shall in no way be construed as a guarantee of employment by the Corporation to the Participant. 

 Section 2.4 Shares
Subject to the Plan. 
  

	(1)	 Subject to adjustment pursuant to provisions of Article 10 hereof, the total number of shares reserved and
available for grant and issuance pursuant to Awards shall not exceed a number of Shares equal to ten percent (10%) of the total issued and outstanding Shares of the Corporation at the time of granting of Awards (on a
non-diluted basis) or such other number as may be approved by the shareholders of the Corporation from time to time. Any increase in the issued and outstanding Shares (whether as a result of exercise of Awards
or otherwise) will result in an increase in the number of Shares that may be issued on Awards outstanding at any time and any increase in the number of Awards granted will, upon exercise, make new grants available under the Plan.

  

	(2)	 Shares in respect of which an Award is granted under the Plan, but not exercised prior to the termination of
such Award or not vested or delivered prior to the termination of such Award due to the expiration, termination or lapse of such Award, shall be available for Awards to be granted thereafter pursuant to the provisions of the Plan. All Shares issued
pursuant to the exercise or the vesting of the Awards granted under the Plan shall be so issued as fully paid and non-assessable Shares. 

 

	(3)	 The aggregate number of Shares (i) issued to Insiders under the Plan or any other proposed or established
Share Compensation Arrangement within any one-year period and (ii) issuable to Insiders at any time under the Plan or any other proposed or established Share Compensation Arrangement, shall in each case
not exceed ten percent (10%) of the issued and outstanding Shares (on a non-diluted basis). 

Section 2.5 Granting of Awards. 
  

	(1)	 Any Award granted under the Plan shall be subject to the requirement that if at any time counsel to the
Corporation shall determine that the listing, registration or qualification of the Shares subject to such Award, if applicable, upon any securities exchange or under any law or regulation of any jurisdiction, or the consent or approval of any
securities exchange or any governmental or regulatory body, is necessary as a condition of, or in connection with, the grant or exercise of such Award or the issuance or purchase of Shares thereunder, if applicable, such Award may not be accepted or
exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Board. Nothing herein shall be deemed to require the Corporation to apply for or
to obtain such listing, registration, qualification, consent or approval. 

  

	(2)	 Any Award granted under the Plan shall be subject to the requirement that the Corporation has the right to
place any restriction or legend on any securities issued pursuant to this Plan including, but in no way limited to placing a legend to the effect that the securities have not been registered under the United States Securities Act of 1933 and
may not be offered or sold in the United States unless registration or an exemption from registration is available. 

ARTICLE 3 — RESTRICTED SHARES 

Section 3.1 Nature of Restricted Shares. 
 A
Restricted Share is a Share with such restrictions and conditions placed upon the Share’s disposition by the Participant as the Board may determine at the time of grant. Conditions may be based on

  
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continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. 

Section 3.2 Restricted Share Awards. 
 Subject to the
provisions herein set forth and any shareholder or regulatory approval which may be required, the Board shall, from time to time by resolution, in its sole discretion, (i) designate the Eligible Participants who may receive Restricted Shares
under the Plan, (ii) fix the number of Restricted Shares, if any, to be granted to each Eligible Participant and the date or dates on which such Restricted Shares shall be granted, and (iii) determine the restrictions and conditions
applicable to such Restricted Shares, the whole subject to the terms and conditions prescribed in this Plan. 
 Section 3.3 Payment to Participant.

  

	(1)	 The Corporation shall, as soon as possible after the grant of Restricted Shares, cause the transfer agent and
registrar of the Shares to either: 

  

	 	(a)	 deliver to the Participant a certificate in the name of the Participant representing in the aggregate such
number of Shares as the Participant shall then be entitled to receive; or 

  

	 	(b)	 in the case of Restricted Shares issued in uncertificated form, cause the issuance of the aggregate number of
Restricted Shares as the Participant shall then be entitled to receive to be evidenced by a book position on the register of the shareholders of the Corporation maintained by the transfer agent and registrar of the Shares. 

 

	(2)	 Each certificate representing Restricted Shares shall bear the following legend, as amended to reflect the
restrictions and/or conditions placed upon the Shares’ disposition as the Board may determine at the time of grant: 

“THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO RESTRICTIONS IN ACCORDANCE WITH THE CORPORATION’S OMNIBUS LONG-TERM INCENTIVE PLAN
DATED ●, AND A RESTRICTED SHARE AGREEMENT DATED ●. THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNTIL ●.” 
  

	(3)	 Unless the Board shall otherwise determine, 

 

	 	(a)	 uncertificated Restricted Shares shall be accompanied by a notation on the records of the Corporation or the
transfer agent and registrar to the effect that they are subject to forfeiture until such Restricted Shares are vested as provided in Section 3.3(4) below; and 

 

	 	(b)	 certificated Restricted Shares shall remain in the possession of the Corporation until such Restricted Shares
have vested as provided in Section 3.3(4) below, 

 and the Participant shall be required, as a condition of the grant
of such Restricted Shares, to deliver to the Corporation such instruments of transfer as the Board may prescribe. 
  

	(4)	 The Board at the time of grant shall specify the date or dates and/or the restrictions and conditions on which
the non-transferability of the Restricted Shares and the Corporation’s right of repurchase or forfeiture shall lapse. Subsequent to such date, or dates and/or the attainment of the restrictions and
conditions, the Restricted Shares for which all restrictions have lapsed shall no longer be Restricted Shares and shall be deemed “vested”. 

  
 - 7 - 

 Section 3.4 Restricted Share Agreements. 

The terms of the Restricted Shares shall be evidenced by a Restricted Share Agreement or included in an Employment Agreement, in such form not inconsistent
with the Plan as the Board may from time to time determine, provided that the substance of Article 3 and Article 9 hereof be included therein. The Restricted Share Agreement shall contain such terms that may be considered necessary in order that the
Restricted Shares will comply with any provisions respecting restricted securities in the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen or the rules of any
regulatory body having jurisdiction over the corporation. 
 ARTICLE 4 —OPTIONS 

Section 4.1 Nature of Options. 
 An Option is an
option granted by the Corporation to a Participant entitling such Participant to acquire a designated number of Shares from treasury at the Option Price, subject to the provisions of this Plan. 

Section 4.2 Option Awards. 
 Subject to the
provisions set forth in this Plan and any shareholder or regulatory approval which may be required, the Board shall, from time to time by resolution, in its sole discretion, (i) designate the Eligible Participants who may receive Options under
the Plan, (ii) fix the number of Options, if any, to be granted to each Eligible Participant and the date or dates on which such Options shall be granted, (iii) determine the price per Share to be payable upon the exercise of each such
Option (the “Option Price”) and the relevant vesting provisions (including Performance Criteria, if applicable) and Option Term, the whole subject to the terms and conditions prescribed in this Plan, in any Option Agreement and any
applicable rules of the TSX. 
 Section 4.3 Option Price. 

The Option Price for Shares that are the subject of any Option shall be fixed by the Board when such Option is granted, but shall not be less than the Market
Value of such Shares at the time of the grant. 
 Section 4.4 Option Term. 

 

	(1)	 The Board shall determine, at the time of granting the particular Option, the period during which the Option is
exercisable, commencing on the date such Option is granted to the Participant and ending as specified in this Plan, or in the Option Agreement, but in no event shall an Option expire on a date which is later than ten (10) years from the date
the Option is granted (“Option Term”). Unless otherwise determined by the Board, all unexercised Options shall be cancelled at the expiry of such Options. 

 

	(2)	 Should the expiration date for an Option fall within a Black-Out Period
or within ten (10) Business Days following the expiration of a Black-Out Period, such expiration date shall be automatically extended without any further act or formality to that date which is the tenth
Business Day after the end of the Black-Out Period, such tenth Business Day to be considered the expiration date for such Option for all purposes under the Plan. Notwithstanding Section 10.2 hereof, the
ten (10) Business Day-period referred to in this Section 4.4 may not be extended by the Board. 

Section 4.5 Exercise of Options. 
  

	(1)	 Subject to the provisions of this Plan, a Participant shall be entitled to exercise an Option granted to such
Participant at any time prior to the expiry of the Option Term, subject to vesting limitations which may be imposed by the Board at the time such Option is granted. 

  
 - 8 - 

	(2)	 Prior to its expiration or earlier termination in accordance with the Plan, each Option shall be exercisable as
to all or such part or parts of the optioned Shares and at such time or times and/or pursuant to the achievement of such Performance Criteria and/or other vesting conditions as the Board at the time of granting the particular Option, may determine
in its sole discretion. For greater certainty, no Option shall be exercised by a Participant during a Black-Out Period. 

Section 4.6 Method of Exercise and Payment of Purchase Price. 
  

	(1)	 Subject to the provisions of the Plan, an Option granted under the Plan shall be exercisable (from time to time
as provided in Section 4.5 hereof) by the Participant (or by the liquidator, executor or administrator, as the case may be, of the estate of the Participant) by delivering a fully completed Exercise Notice to the Corporation at its registered
office to the attention of the Corporate Secretary of the Corporation (or the individual that the Corporate Secretary of the Corporation may from time to time designate) or give notice in such other manner as the Corporation may from time to time
designate, which notice shall specify the number of Shares in respect of which the Option is being exercised and shall be accompanied by full payment, by cash, cheque or bank draft of the purchase price for the number of Shares specified therein.
Unless otherwise determined by the Board the Corporation shall not offer financial assistance in regards to the exercise of an Option. 

  

	(2)	 Upon the exercise of an Option, the Corporation shall, as soon as practicable after such exercise but no later
than ten (10) Business Days following such exercise, forthwith cause the transfer agent and registrar of the Shares to either: 

  

	 	(a)	 deliver to the Participant (or to the liquidator, executor or administrator, as the case may be, of the estate
of the Participant) a certificate in the name of the Participant representing in the aggregate such number of Shares as the Participant (or to the liquidator, executor or administrator, as the case may be, of the estate of the Participant) shall
have then paid for and as are specified in such Exercise Notice; or 

  

	 	(b)	 in the case of Shares issued in uncertificated form, cause the issuance of the aggregate number of Shares as
the Participant (or the liquidator, executor or administrator, as the case may be, of the estate of the Participant) shall have then paid for and as are specified in such Exercise Notice to be evidenced by a book position on the register of the
shareholders of the Corporation to be maintained by the transfer agent and registrar of the Shares. 

  

	(3)	 With the consent of the Board, a Participant may, rather than exercise the Option which the Participant is
entitled to exercise under this Plan as provided above, elect to surrender such Option, in whole or in part and, in lieu of receiving the Shares to which the exercised Option relates, receive, as consideration for the surrender of such Option, the
number of Shares, disregarding fractions, which, when multiplied by the Market Value of the Shares to which the exercised Option relates, have a value equal to the product of the number of Shares to which the exercised Option relates multiplied by
the difference between the Market Value of such Shares and the Option Price of such Option, less any amount withheld on account of taxes in accordance with Section 11.2. The Corporation makes no representation to any Participant (or to the
liquidator, executor or administrator, as the case may be, of the estate of the Participant) that it will waive or renounce its right to claim a deduction in respect of such payment. 

Section 4.7 Option Agreements. 
 Options shall be
evidenced by an Option Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the Board may from time to time determine, provided that the substance of Article 4 and Article 9 hereof be included therein. The
Option Agreement shall contain such terms that may be considered necessary in order that the Option will comply with any provisions respecting options in the income tax or other laws in force in any country or jurisdiction of which the

  
 - 9 - 

 
Participant may from time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over the corporation. 

ARTICLE 5 – DEFERRED SHARE UNITS 

Section 5.1 Nature of DSUs. 
 A DSU is an Award of
phantom share units to an Eligible Participant, subject to restrictions and conditions as the Board may determine at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. 
 Section 5.2 Election to Participate. 

Each Eligible Participant may elect, once each calendar year, to be paid a percentage of his or her annual retainer in the form of DSUs, with the balance being
paid in cash. In the case of an existing Eligible Participant, the election must be completed, signed and delivered to the Corporation by the end of the fiscal year preceding the fiscal year to which such election is to apply. In the case of a new
Eligible Participant, the election must be completed, signed and delivered to the Corporation as soon as possible, and, in any event, no later than thirty (30) days, after the Eligible Participant’s appointment, with such election to be
effective on the first day of the fiscal quarter of the Corporation next following the date of the Corporation’s receipt of the election until the final day of the fiscal year of appointment. For the first year of the Plan, Eligible
Participants must make such election as soon as possible, and, in any event, no later than thirty (30) days, after adoption of the Plan and the election shall be effective on the first day of the fiscal quarter of the Corporation next following
the date of the Corporation’s receipt of the election until the final day of such fiscal year. If no election is made in respect of a particular fiscal year, the new or existing Eligible Participant will receive the annual retainer in cash.

 Section 5.3 DSU Awards. 
 The number of DSUs
that an Eligible Participant is entitled to receive in a fiscal year is based upon the percentage that the Eligible Participant has elected to receive in DSUs multiplied by the Participant’s annual retainer divided by the Market Value. At the
discretion of the Board, fractional DSUs will not be issued and any fractional entitlements will be rounded down to the nearest whole number. 

Section 5.4 Redemption of DSUs. 
  

	(1)	 Each Participant shall be entitled to redeem his or her DSUs during the period commencing on the business day
immediately following the Termination Date and ending on the 90th day following the Termination Date by providing a written Notice of Redemption to the Corporation. In the event of death of a Participant, the Notice of Redemption shall be filed by
the administrator or liquidator of the estate of the Participant. The Notice of Redemption must specify an election to receive: 

  

	 	(a)	 a cash payment equal to the number of DSUs credited to the Participant’s Account as of the Termination
Date multiplied by the Market Value on the Termination Date, net of any applicable withholding taxes; or 

  

	 	(b)	 Shares purchased on the Participant’s behalf on the open market by a Broker; or 

 

	 	(c)	 a percentage of the DSUs paid out in cash and the remaining percentage of the DSUs paid out as Shares on the
Participant’s behalf on the open market by a Broker. 

 In the event a Notice of Redemption is not provided by a
Participant, such Participant will be deemed to have elected to receive a cash payment as provided for in Section 5.4(1)(a). 

  
 - 10 - 

	(2)	 Where Shares are purchased on the open market on the Participant’s behalf, the Corporation will remit all
or a portion of the final payment to the Broker, and the Broker will be required to (within ten (10) business days) use the amount to purchase Shares in the open market on the principal Canadian stock exchange or any other public exchange on
which the Shares are traded. The number of Shares will be computed by taking the number of DSUs that the Participant elected to receive in Shares, net of the number of DSUs that would equal to any applicable withholding taxes. Any Shares acquired by
the Broker from all or a portion of the final payment and any cash remaining therefrom shall be delivered directly to the Participant forthwith as soon as practicable upon completion of such purchases. The Corporation will pay all brokerage fees
arising in connection with the purchase of Shares by the Broker in accordance with the Plan. 

  

	(3)	 The Corporation will make all of the payments described in this Article 5 (referred to hereinafter as the
“Final Payment”) to the Participant or the Broker, within 120 days of the Termination Date. Upon making such payment to the Participant or the Broker, the DSUs upon which such payment was based shall be cancelled and no further
payments shall be made from the Plan in relation to such DSUs. 

 Section 5.5 Award of Dividend Equivalents. 

Dividend Equivalents will be awarded in respect of DSUs in a Participant’s Account on the same basis as dividends declared and paid on Shares as if the
Participant was a shareholder of record of Shares on the relevant record date. These Dividend Equivalents will be credited to the Participant’s Account as additional DSUs (or fractions thereof), with the number of additional DSUs based on
(a) the actual amount of dividends that would have been paid if the Participant had held Shares under the Plan on the applicable record date divided by (b) the Market Value per Share on the date on which the dividends on Shares are
payable. For greater certainty, no DSUs representing Dividend Equivalents will be credited to a Participant’s Account in relation to DSUs that have been previously cancelled or paid out of the Plan and all additional DSUs credited as a result
of a Dividend Equivalent will be credited at the same time as any applicable Final Payment. 
 Section 5.6 Unfunded Plan. 

Unless otherwise determined by the Board, this Plan shall be unfunded. To the extent any Participant or his or her estate holds any rights by virtue of a grant
of DSUs under this Plan, such rights (unless otherwise determined by the Board) shall be no greater than the rights of an unsecured creditor of the Corporation. Notwithstanding the foregoing, any determinations made shall be such that the Plan
continuously meets the requirements of paragraph 6801(d) of the Income Tax Regulations, adopted under the Tax Act or any successor provision thereto. 

Section 5.7 DSU Agreements. 
 DSUs shall be evidenced
by a DSU Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the Board may from time to time determine, provided that the substance of Article 5 and Article 9 hereof be included therein. The DSU Agreement
shall contain such terms that may be considered necessary in order that the DSU will comply with any provisions respecting deferred share units in the income tax or other laws in force in any country or jurisdiction of which the Participant may from
time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over the corporation. 
 ARTICLE 6 —
RESTRICTED SHARE UNITS 
 Section 6.1 Nature of RSUs. 

A RSU is an Award entitling the recipient to acquire Shares, at such purchase price (which may be zero) as determined by the Board, subject to such
restrictions and conditions as the Board may determine at 

  
 - 11 - 

 
the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals
and objectives. 
 Section 6.2 RSU Awards. 
  

	(1)	 Subject to the provisions herein set forth and any shareholder or regulatory approval which may be required,
the Board shall, from time to time by resolution, in its sole discretion, (i) designate the Eligible Participants who may receive RSUs under the Plan, (ii) fix the number of RSUs, if any, to be granted to each Eligible Participant and the
date or dates on which such RSUs shall be granted, and (iii) determine the relevant conditions and vesting provisions (including the applicable Performance Period and Performance Criteria, if any) and Restriction Period of such RSUs, the whole
subject to the terms and conditions prescribed in this Plan and in any RSU Agreement. 

  

	(2)	 The RSUs are structured so as to be considered to be a plan described in section 7 of the Tax Act or any
successor provision thereto. 

  

	(3)	 Subject to the vesting and other conditions and provisions herein set forth and in the RSU Agreement, each RSU
awarded to a Participant shall entitle the Participant, at his or her election, to receive one Share issued from treasury or the Cash Equivalent at any time beginning on the first Business Day following their RSU Vesting Determination Date but no
later than the RSU Settlement Date. 

 Section 6.3 Restriction Period. 

The applicable restriction period in respect of a particular RSU award shall be determined by the Board but in all cases shall end no later than
December 31 of the calendar year which is three (3) years after the calendar year in which the Award is granted (“Restriction Period”). For example, the Restriction Period for a grant made in June 2018 shall end no later
than December 31, 2021. Subject to the Board’s determination, any vested RSUs with respect to a Restriction Period will be paid to Participants in accordance with Article 5, no later than the end of the Restriction Period. Unless otherwise
determined by the Board, all unvested RSUs shall be cancelled on the RSU Vesting Determination Date (as such term is defined in Section 6.5) and, in any event, no later than the last day of the Restriction Period. 

Section 6.4 Performance Criteria and Performance Period. 
  

	(1)	 For each award of RSUs, the Board shall establish the period in which any Performance Criteria and other
vesting conditions must be met in order for a Participant to be entitled to receive Shares in exchange for all or a portion of the RSUs held by such Participant (the “Performance Period”), provided that such Performance Period may
not expire after the end of the Restriction Period, being no longer than three (3) years after the financial year in which the Award was granted. For example, a Performance Period determined by the Board to be for a period of three
(3) financial years will start on the first day of the financial year in which the award is granted and will end on the last day of the second financial year after the year in which the grant was made. In such a case, for a grant made on
August 5, 2018, the Performance Period will start on August 1, 2018 and will end on July 31, 2020. 

  

	(2)	 For each award of RSUs, the Board shall establish any Performance Criteria and other vesting conditions which
must be met during the Performance Period in order for a Participant to be entitled to receive Shares in exchange for his or her RSUs. 

Section 6.5 RSU Vesting Determination Date. 
 The
vesting determination date means the date on which the Board determines if the Performance Criteria and/or other vesting conditions with respect to a RSU have been met (the “RSU Vesting 

  
 - 12 - 

 
Determination Date”), and as a result, establishes the number of RSUs that become vested, if any. For greater certainty, the RSU Vesting Determination Date must fall after the end of
the Performance Period, if any, but no later than the last day of the Restriction Period. 
 Section 6.6 Settlement of RSUs. 

 

	(1)	 Except as otherwise provided in the RSU Agreement, in the event that the vesting conditions, the Performance
Criteria and Performance Period, if applicable, of an RSU are satisfied: 

  

	 	(a)	 all of the vested RSUs covered by a particular grant may, subject to Section 6.6(4), be settled at any
time beginning on the first Business Day following their RSU Vesting Determination Date but no later than the date that is ten (10) years from their RSU Vesting Determination Date (the “RSU Settlement Date”);

  

	 	(b)	 a Participant is entitled to deliver to the Corporation, on or before the RSU Settlement Date, an RSU
Settlement Notice in respect of any or all vested RSUs held by such Participant; and 

  

	 	(c)	 in the RSU Settlement Notice, the Participant will elect, in such Participant’s sole discretion, including
with respect to any fractional RSUs, to settle vested RSUs for their Cash Equivalent, Shares issued from treasury, or a combination thereof. 

  

	(2)	 Subject to Section 6.6(4), settlement of RSUs shall take place promptly following the RSU Settlement Date
and take the form set out in the RSU Settlement Notice through: 

  

	 	(a)	 in the case of settlement of RSUs for their Cash Equivalent, delivery of a cheque to the Participant
representing the Cash Equivalent; 

  

	 	(b)	 in the case of settlement of RSUs for Shares, delivery of a share certificate to the Participant or the entry
of the Participant’s name on the share register for the Shares (or in the case of Shares issued in uncertificated form, cause the issuance of the aggregate number of Shares as the Participant shall then be entitled to receive to be evidenced by
a book position on the register of the shareholders of the Corporation maintained by the transfer agent and registrar of the Shares); or 

  

	 	(c)	 in the case of settlement of the RSUs for a combination of Shares and the Cash Equivalent, a combination of
(a) and (b) above. 

  

	(3)	 If an RSU Settlement Notice is not received by the Corporation on or before the RSU Settlement Date, settlement
shall take the form of Shares issued from treasury as set out in Section 6.7(2). 

  

	(4)	 Notwithstanding any other provision of this Plan, in the event that an RSU Settlement Date falls during a Black-Out Period or other trading restriction imposed by the Corporation and the Participant has not delivered an RSU Settlement Notice, then such RSU Settlement Date shall be automatically extended to the tenth
(10th) Business Day following the date that such Black-Out Period or other trading restriction is lifted, terminated or removed. 

Section 6.7 Determination of Amounts. 
  

	(1)	 Cash Equivalent of RSUs. For purposes of determining the Cash Equivalent of RSUs to be made
pursuant to Section 6.6, such calculation will be made on the RSU Settlement Date and shall equal the Market Value on the RSU Settlement Date multiplied by the number of vested RSUs in the Participant’s Account which the Participant
desires to settle in cash pursuant to the RSU Settlement Notice. 

  
 - 13 - 

	(2)	 Payment in Shares; Issuance of Shares from Treasury. For the purposes of determining the number
of Shares from treasury to be issued and delivered to a Participant upon settlement of RSUs pursuant to Section 6.6, such calculation will be made on the RSU Settlement Date and be the whole number of Shares equal to the whole number of vested
RSUs then recorded in the Participant’s Account which the Participant desires to settle pursuant to the RSU Settlement Notice. Shares issued from treasury will be issued in consideration for the past services of the Participant to the
Corporation and the entitlement of the Participant under this Plan shall be satisfied in full by such issuance of Shares. 

Section 6.8 RSU Agreements. 
 RSUs shall be evidenced
by a RSU Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the Board may from time to time determine, provided that the substance of Article 6 and Article 9 hereof be included therein. The RSU Agreement
shall contain such terms that may be considered necessary in order that the RSU will comply with any provisions respecting restricted share units in the income tax or other laws in force in any country or jurisdiction of which the Participant may
from time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over the corporation. 
 ARTICLE 7
— SHARE APPRECIATION RIGHTS 
 Section 7.1 Nature of SARs. 

A SAR is an Award entitling the recipient to receive Shares having a value equal to the excess of (i) the Market Value of one Share on the date of
exercise over (ii) the grant price of the right on the date of grant, or if granted in connection with an outstanding Option on the date of grant of the related Option, as specified by the Board in its sole discretion, which, except in the case
of Substitute Awards, shall not be less than the Market Value of one Share on such date of grant of the right or the related Option, as the case may be, multiplied by the number of Shares with respect to which the SAR shall have been exercised. 

Section 7.2 SAR Awards. 
 Subject to the provisions
herein set forth and any shareholder or regulatory approval which may be required, the Board shall, from time to time by resolution, in its sole discretion, (i) designate the Eligible Participants who may receive SAR Awards under the Plan,
(ii) fix the number of SAR Awards to be granted to each Eligible Participant and the date or dates on which such SAR Awards shall be granted, and (iii) determine the price per Share to be payable upon the vesting of each such SAR (the
“SAR Price”) and the relevant conditions and vesting provisions (including the applicable Performance Period and Performance Criteria, if any) and the SAR Term, the whole subject to the terms and conditions prescribed in this Plan
and in any SAR Agreement. 
 Section 7.3 SAR Price. 

The SAR Price for the Shares that are the subject of any SAR shall be fixed by the Board when such SAR is granted, but shall not be less than the Market Value
of such Shares at the time of the grant. 
 Section 7.4 SAR Term. 
  

	(1)	 The Board shall determine, at the time of granting the particular SAR, the period during which the SAR is
exercisable, which shall not be more than ten (10) years from the date the SAR is granted (“SAR Term”) and the vesting schedule of such SAR, which will be detailed in the respective SAR Agreement. Unless otherwise determined by
the Board, all unexercised SARs shall be cancelled at the expiry of such SAR. 

  
 - 14 - 

	(2)	 Should the expiration date for a SAR fall within a Black-Out Period or
within ten (10) Business Days following the expiration of a Black-Out Period, such expiration date shall be automatically extended without any further act or formality to that date which is the tenth
(10th) Business Day after the end of the Black-Out Period, such tenth (10th) Business Day to be considered the expiration date for such SAR for all purposes under the Plan. Notwithstanding Section 10.2
hereof, the ten (10) Business Day-period referred to in this Section 7.4 may not be extended by the Board. 

Section 7.5 Exercise of SARs. 
 Prior to its
expiration or earlier termination in accordance with the Plan, each SAR shall be exercisable as to all or such part or parts of the granted Shares and at such time or times and/or pursuant to the achievement of such Performance Criteria and/or other
vesting conditions as the Board at the time of granting the particular SAR, may determine in its sole discretion. For greater certainty, no SAR shall be exercised by a Participant during a Black-Out Period.

 Section 7.6 Method of Exercise and Payment of Purchase Price. 
  

	(1)	 Subject to the provisions of the Plan, a SAR granted under the Plan shall be exercisable (from time to time as
provided in Section 7.5 hereof) by the Participant (or by the liquidator, executor or administrator, as the case may be, of the estate of the Participant) by delivering a fully completed Exercise Notice to the Corporation at its registered
office to the attention of the Corporate Secretary of the Corporation (or to the individual that the Corporate Secretary of the Corporation may from time to time designate) or give notice in such other manner as the Corporation may from time to time
designate, no less than three (3) business days in advance of the effective date of the proposed exercise, which notice shall specify the number of Shares with respect to which the SAR is being exercised and the effective date of the proposed
exercise. 

  

	(2)	 The exercise of a SAR with respect to any number of Shares shall entitle the Participant to Shares equal to the
excess of the Market Value of a Share on the effective date of such exercise over the per share SAR Price. 

  

	(3)	 Upon the exercise, the Corporation shall, as soon as practicable after such exercise but no later than ten
(10) Business Days following such exercise, forthwith cause the transfer agent and registrar of the Shares to either: 

  

	 	(a)	 deliver to the Participant (or to the liquidator, executor or administrator, as the case may be, of the estate
of the Participant) a certificate in the name of the Participant representing in the aggregate such number of Shares as the Participant (or to the liquidator, executor or administrator, as the case may be, of the estate of the Participant) shall be
entitled to receive (unless the Participant intends to simultaneously dispose of any such Shares); or 

  

	 	(b)	 in the case of Shares issued in uncertificated form, cause the issuance of the aggregate number of Shares as
the Participant (or the liquidator, executor or administrator, as the case may be, of the estate of the Participant) shall be entitled to receive to be evidenced by a book position on the register of the shareholders of the Corporation to be
maintained by the transfer agent and registrar of the Shares. 

 Section 7.7 SAR Agreements. 

SARs shall be evidenced by a SAR Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan as the Board may from time to
time determine, provided that the substance of Article 7 and Article 9 hereof be included therein. The SAR Agreement shall contain such terms that may be considered necessary in order that the SAR will comply with any provisions respecting stock

  
 - 15 - 

 
appreciation rights in the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or citizen or the rules of any regulatory
body having jurisdiction over the corporation. 
 ARTICLE 8 — RETENTION AWARDS 

Section 8.1 Nature of Retention Awards. 
 Retention
Awards are any payment to an Eligible Participant that is not payable periodically for services provided by the Eligible Participant, as determined by the Board from time to time. 

Section 8.2 Retention Awards. 
  

	(1)	 Subject to the provisions herein set forth, the Board shall, from time to time by resolution, in its sole
discretion, (i) designate the Eligible Participants who may receive Retention Awards under the Plan, (ii) fix the number of Retention Awards, if any, to be granted to each Eligible Participant and the date or dates on which such Retention
Awards shall be granted, and (iii) determine the relevant conditions and vesting provisions (including the applicable Performance Period and Performance Criteria, if any) of such Retention Awards, the whole subject to the terms and conditions
prescribed in this Plan and in any Retention Award Agreement or Employment Agreement. 

  

	(2)	 Subject to the vesting and other conditions and provisions herein set forth and in the Retention Award
Agreement or Employment Agreement, each Retention Award awarded to a Participant shall entitle the Participant to receive, on the vesting date of the Retention Award, such number of Shares, disregarding fractions, which, when multiplied by the
Market Value of the Shares on the vesting date of the Retention Award, to which the Retention Awards relate, have a value equal to the Retention Payment, less any amount withheld on account of income taxes, which withheld income taxes will be
remitted by the Corporation. 

 Section 8.3 Payment to Participant. 

In the event that the vesting conditions of a Retention Award are satisfied, the Corporation shall, as soon as possible after the date of vesting of the
Retention Awards cause the transfer agent and registrar of the Shares to either: 
  

	 	(a)	 deliver to the Participant (or to the liquidator, executor or administrator, as the case may be, of the estate
of the Participant) a certificate in the name of the Participant representing in the aggregate such number of Shares as the Participant (or to the liquidator, executor or administrator, as the case may be, of the estate of the Participant) shall be
entitled to receive (unless the Participant intends to simultaneously dispose of any such Shares); or 

  

	 	(b)	 in the case of Shares issued in uncertificated form, cause the issuance of the aggregate number of Shares as
the Participant (or the liquidator, executor or administrator, as the case may be, of the estate of the Participant) shall be entitled to receive to be evidenced by a book position on the register of the shareholders of the Corporation to be
maintained by the transfer agent and registrar of the Shares. 

 Section 8.4 Retention Award Agreements. 

Retention Awards shall be evidenced by a Retention Award Agreement or included in an Employment Agreement, in such form not inconsistent with the Plan, as the
Board may from time to time determine, provided that the substance of Article 8 and Article 9 hereof be included therein. The Retention Award Agreement shall contain such terms that may be considered necessary in order that the Retention Award

  
 - 16 - 

 
will comply with any provisions respecting such awards in the income tax or other laws in force in any country or jurisdiction of which the Participant may from time to time be a resident or
citizen or the rules of any regulatory body having jurisdiction over the Corporation. 
 ARTICLE 9 —GENERAL CONDITIONS 

Section 9.1 General Conditions applicable to Awards. 

Each Award, as applicable, shall be subject to the following conditions: 
  

	(1)	 Employment - The granting of an Award to a Participant shall not impose upon the Corporation or a
Subsidiary any obligation to retain the Participant in its employ in any capacity. For greater certainty, the granting of Awards to a Participant shall not impose any obligation on the Corporation to grant any awards in the future nor shall it
entitle the Participant to receive future grants. 

  

	(2)	 Rights as a Shareholder - Neither the Participant nor such Participant’s personal representatives
or legatees shall have any rights whatsoever as shareholder in respect of any Shares covered by such Participant’s Awards until the date of issuance of a share certificate to such Participant (or to the liquidator, executor or administrator, as
the case may be, of the estate of the Participant). Without in any way limiting the generality of the foregoing, no adjustment shall be made for dividends or other rights for which the record date is prior to the date such share certificate is
issued. 

  

	(3)	 Conformity to Plan – In the event that an Award is granted or a Grant Agreement is executed which
does not conform in all particulars with the provisions of the Plan, or purports to grant Awards on terms different from those set out in the Plan, the Award or the grant of such Award shall not be in any way void or invalidated, but the Award so
granted will be adjusted to become, in all respects, in conformity with the Plan. 

  

	(4)	 Transferrable Awards – Awards granted under this Plan shall be transferrable or assignable only to
a “permitted assign” and shall be exercisable only by the Participant or his or her permitted assign. For the purposes hereof, “permitted assign” means for such Participant: 

 

	 	(a)	 a trustee, custodian or administrator acting on behalf, or for the benefit, of the Participant;

  

	 	(b)	 a holding entity of the Participant; 

 

	 	(c)	 a registered retirement savings plan (“RRSP”) or registered retirement income fund
(“RRIF”) of the Participant, as such terms are defined in the Tax Act; 

  

	 	(d)	 a spouse of the Participant (the “Spouse”); 

 

	 	(e)	 a trustee, custodian or administrator acting on behalf, or for the benefit, of the Spouse;

  

	 	(f)	 a holding entity of the Spouse; or 

 

	 	(g)	 an RRSP or RRIF of the Spouse. 

Section 9.2 General Conditions applicable to Options, SARs and Retention Awards. 

Each Option, SAR or Retention Award, as applicable, shall be subject to the following conditions: 

 

	(1)	 Termination for Cause. Upon a Participant ceasing to be an Eligible Participant for “cause”,
any Option, SAR or Retention Award or the unexercised or unvested portion thereof, as applicable, 

  
 - 17 - 

	 	
when granted to such Participant shall terminate on the effective date of the termination as specified in the notice of termination. For the purposes of the Plan, the determination by the
Corporation that the Participant was discharged for cause shall be binding on the Participant. “Cause” shall include, among other things, gross misconduct, theft, fraud, breach of confidentiality or breach of the Corporation’s Code of
Conduct and any reason determined by the Corporation to be cause for termination. 

  

	(2)	 Death. If a Participant dies while in his or her capacity as an Eligible Participant, any vested Option,
SAR or Retention Award or the unexercised portion thereof, granted to such Participant may be exercised by the liquidator, executor or administrator, as the case may be, of the estate of the Participant for that number of Shares only which such
Participant was entitled to acquire under the respective Options, SARs or Retention Awards (the “Vested Awards”) hereof on the date of such Participant’s death. Such Vested Award shall only be exercisable within one
(1) year after the Participant’s death or prior to the expiration of the original term of the Options, SARs or Retention Awards, as applicable, whichever occurs earlier. All Options, SARs or Retention Awards or the unexercised or unvested
portion thereof, as applicable, other than such Vested Awards on the date of such Participant’s death, will be cancelled on the date of such Participant’s death. 

 

	(3)	 Disability. Upon a Participant ceasing to be an Eligible Participant by reason of injury or disability
or upon a Participant becoming eligible to receive long-term disability benefits, any Option, SAR or Retention Award or the unexercised portion thereof, granted to such Participant may be exercised by such Participant or his/her representative as
the rights to exercise accrue. Such Option, SAR or Retention Award shall only be exercisable (i) within three (3) years after such cessation or (ii) the effective date on which the Participant becomes eligible to receive long-term
disability benefits (provided that, for greater certainty, such effective date shall be confirmed in writing to the Corporation by the insurance company providing such long-term disability benefits) (the “Eligibility Date”)) or
(iii) prior to the expiration of the original term of the Option, SAR or Retention Award, whichever occurs earlier. All Options, SARs or Retention Awards or the unexercised or unvested portion thereof, as applicable, on the date that is three
(3) years after such cessation, will be cancelled on such date. 

  

	(4)	 Termination or Cessation. In the case of a Participant ceasing to be an Eligible Participant for any
reason (other than for “cause”, death or disability) the right to exercise an Option, SAR or Retention Award shall be limited to and shall expire on the earlier of one year after the Termination Date, or the expiry date of the Award
set forth in the Grant Agreement, to the extent such Award was exercisable by the Participant on the Termination Date. 

Section 9.3 General Conditions applicable to RSUs. 

Each RSU shall be subject to the following conditions: 
  

	(1)	 Termination for Cause. Upon a Participant ceasing to be an Eligible Participant for “cause” or
the Participant’s resignation from employment with the Corporation or a Subsidiary, the Participant’s participation in the Plan shall be terminated immediately, all RSUs credited to such Participant’s Account that have not vested
shall be forfeited and cancelled, and the Participant’s rights to Shares that relate to such Participant’s unvested RSUs shall be forfeited and cancelled on the Termination Date. 

 

	(2)	 Cessation of Employment. Except as otherwise determined by the Board from time to time, at its sole
discretion, upon a Participant’s (i) retirement, (ii) employment with the Corporation or a Subsidiary being terminated by the Corporation or a Subsidiary for reasons other than for “cause”, (iii) employment with the Corporation
or a Subsidiary being terminated by reason of injury or disability or (iv) becoming eligible to receive long-term disability benefits, the Participant’s participation in the Plan shall be terminated immediately (provided that, for the
Participant becoming eligible to receive long-term disability benefits, such termination shall occur on the 

  
 - 18 - 

	 	
Eligibility Date), provided that all unvested RSUs in the Participant’s Account as of such date relating to a Restriction Period in progress shall remain in effect until the applicable RSU
Vesting Determination Date. 

  

	(3)	 Retirement. In the case of a Participant’s retirement, this Section (3) shall not apply to a
Participant in the event such Participant, directly or indirectly, in any capacity whatsoever, alone, through or in connection with any person, carries on or becomes employed by, engaged in or otherwise commercially involved in, any activity or
business in the cannabis industry prior to the applicable RSU Vesting Determination Date. In such event, Section 9.3(2) shall apply to such Participant. 

  

	 	(a)	 If, on the RSU Vesting Determination Date, the Board determines that the vesting conditions were not met for
such RSUs, then all unvested RSUs credited to such Participant’s Account shall be forfeited and cancelled and the Participant’s rights to Shares that relate to such unvested RSUs shall be forfeited and cancelled. 

 

	 	(b)	 If, on the RSU Vesting Determination Date, the Board determines that the vesting conditions were met for such
RSUs, the Participant shall be entitled to receive that number of Shares equal to the number of RSUs outstanding in the Participant’s Account in respect of such Restriction Period multiplied by a fraction, the numerator of which shall be the
number of completed months of service of the Participant with the Corporation or a Subsidiary during the applicable Performance Period, if any, as of the date of the Participant’s retirement, termination or Eligibility Date and the denominator
of which shall be equal to the total number of months included in the applicable Performance Period, if any (which calculation shall be made on the applicable RSU Vesting Determination Date) and the Corporation shall distribute such number of Shares
to the Participant as soon as practicable thereafter, but no later than the end of the Restriction Period, the Corporation shall debit the corresponding number of RSUs from such Participant’s Account, and the Participant’s rights to all
other Shares that relate to such Participant’s RSUs shall be forfeited and cancelled. 

  

	(4)	 Death. Except as otherwise determined by the Board from time to time, at their sole discretion, upon the
death of a Participant, the Participant’s participation in the Plan shall be terminated immediately, provided that all unvested RSUs in the Participant’s Account as of such date relating to a Restriction Period in progress shall remain in
effect until the applicable RSU Vesting Determination Date or any earlier date as may be determined by the Board. 

  

	 	(a)	 If, on the applicable RSU Vesting Determination Date or any earlier date as may be determined by the Board, the
Board determines that the vesting conditions were not met for such RSUs, then all unvested RSUs credited to such Participant’s Account shall be forfeited and cancelled and the Participant’s rights to Shares (or cash or a combination of
Shares and cash as permitted under this Plan) that relate to such unvested RSUs shall be forfeited and cancelled. 

  

	 	(b)	 If, on the applicable RSU Vesting Determination Date or any earlier date as may be determined by the Board, the
Board determines that the vesting conditions were met, the liquidator, executor or administrator, as the case may be, of the estate of the Participant shall be entitled to receive that number of Shares equal to the number of RSUs outstanding in the
Participant’s Account in respect of such Restriction Period multiplied by a fraction, the numerator of which shall be the number of completed months of service of the Participant with the Corporation or a Subsidiary during the applicable
Performance Period, if any, as of the date of death of the Participant and the denominator of which shall be equal to the total number of months included in the applicable Performance Period, if any (which calculation shall be made on the applicable
RSU Vesting Determination Date or any earlier date as may be determined by the Board) and the Corporation shall distribute such number of Shares to the liquidator, executor or 

  
 - 19 - 

	 	
administrator, as the case may be, of the estate of the Participant as soon as practicable thereafter but no later than the end of the Restriction Period, the Corporation shall debit the
corresponding number of RSUs from such deceased Participant’s Account, and the Participant’s right to all other Shares that relate to such deceased Participant’s RSUs shall be forfeited and cancelled. 

 

	(5)	 Leave of Absence. Except as otherwise determined by the Board from time to time, at their sole
discretion, upon a Participant electing a voluntary leave of absence, the Participant’s participation in the Plan shall be terminated immediately, provided that all unvested RSUs in the Participant’s Account as of such date relating to a
Restriction Period in progress shall remain in effect until the applicable RSU Vesting Determination Date. 

  

	 	(a)	 If, on the applicable RSU Vesting Determination Date, the Board determines that the vesting conditions were not
met for such RSUs, then all unvested RSUs credited to such Participant’s Account shall be forfeited and cancelled and the Participant’s rights to Shares (or cash or a combination of Shares and cash as permitted under this Plan) that relate
to such unvested RSUs shall be forfeited and cancelled. 

  

	 	(b)	 If, on the applicable RSU Vesting Determination Date, the Board determines that the vesting conditions were
met, the Participant shall be entitled to receive that number of Shares equal to the number of RSUs outstanding in the Participant’s Account in respect of such Restriction Period multiplied by a fraction, the numerator of which shall be the
number of completed months of service of the Participant with the Corporation or a Subsidiary during the relevant Performance Period, if any, as of the date the Participant elects for a voluntary leave of absence and the denominator of which shall
be equal to the total number of months included in the relevant Performance Period, if any (which calculation shall be made on the applicable RSU Vesting Determination Date) and the Corporation shall distribute such number of Shares (or cash or a
combination of Shares and cash as permitted under this Plan) to the Participant as soon as practicable thereafter but no later than the end of the applicable Restriction Period, the Corporation shall debit the corresponding number of RSUs from such
Participant’s Account, and the Participant’s right to all other Shares that relate to such Participant’s RSUs shall be forfeited and cancelled. 

 

	 	(c)	 Subject to applicable laws, the Board may decide, at their sole discretion that Section 9.3(5) should not
apply to voluntary leaves granted to a Participant by the Corporation for a period of twelve (12) months or less. In such event, all unvested RSUs in such Participant’s Account as of such date relating to a Restriction Period in progress
shall remain in effect until the applicable RSU Vesting Determination Date. 

  

	(6)	 General. For greater certainty, where (i) a Participant’s employment with the Corporation or a
Subsidiary is terminated pursuant to Section 9.3(1), Section 9.3(2) or Section 9.3(4) hereof or (ii) a Participant elects for a voluntary leave of absence pursuant to Section 9.3(5) hereof following the satisfaction of all
vesting conditions in respect of particular RSUs but before receipt of the corresponding distribution or payment in respect of such RSUs, the Participant shall remain entitled to such distribution or payment. 

Section 9.4 General Conditions applicable to Restricted Shares. 
  

	(1)	 Upon a Participant ceasing to be an Eligible Participant for any reason, any Restricted Shares that have not
vested at such time shall automatically and without any requirement of notice to such Participant, or other action by or on behalf of the Corporation, be deemed to have been reacquired by the Corporation from such Participant, and thereafter shall
cease to represent any ownership in the Corporation by the Participant or rights of the Participant as a shareholder of the Corporation. Following such deemed reacquisition, the Participant shall surrender any certificates

  
 - 20 - 

	 	
representing Restricted Shares in such Participant’s possession to the Corporation upon request without consideration. 

ARTICLE 10 —ADJUSTMENTS AND AMENDMENTS 

Section 10.1 Adjustment to Shares Subject to Outstanding Awards. 
  

	(1)	 In the event of any subdivision of the Shares into a greater number of Shares at any time after the grant of an
Award to a Participant and prior to the expiration of the term of such Award, the Corporation shall deliver to such Participant, at the time of any subsequent exercise or vesting of such Award in accordance with the terms hereof, in lieu of the
number of Shares to which such Participant was theretofore entitled upon such exercise or vesting of such Award, but for the same aggregate consideration payable therefor, such number of Shares as such Participant would have held as a result of such
subdivision if on the record date thereof the Participant had been the registered holder of the number of Shares to which such Participant was theretofore entitled upon such exercise or vesting of such Award. 

 

	(2)	 In the event of any consolidation of Shares into a lesser number of Shares at any time after the grant of an
Award to any Participant and prior to the expiration of the term of such Award, the Corporation shall deliver to such Participant at the time of any subsequent exercise or vesting of such Award in accordance with the terms hereof in lieu of the
number of Shares to which such Participant was theretofore entitled upon such exercise or vesting of such Award, but for the same aggregate consideration payable therefor, such number of Shares as such Participant would have held as a result of such
consideration if on the record date thereof the Participant had been the registered holder of the number of Shares to which such Participant was theretofore entitled upon such exercise or vesting of such Award. 

 

	(3)	 If at any time after the grant of an Award to any Participant and prior to the expiration of the term of such
Award, the Shares shall be reclassified, reorganized or otherwise changed, otherwise than as specified in Section 10.1(1) or Section 10.1(2) hereof or, subject to the provisions of Section 10.2(3) hereof, the Corporation shall
consolidate, merge or amalgamate with or into another corporation (the corporation resulting or continuing from such consolidation, merger or amalgamation being herein called the “Successor Corporation”), the Participant shall be
entitled to receive upon the subsequent exercise or vesting of Award, in accordance with the terms hereof and shall accept in lieu of the number of Shares then subscribed for but for the same aggregate consideration payable therefor, the aggregate
number of shares of the appropriate class or other securities of the Corporation or the Successor Corporation (as the case may be) or other consideration from the Corporation or the Successor Corporation (as the case may be) that such Participant
would have been entitled to receive as a result of such reclassification, reorganization or other change of shares or, subject to the provisions of Section 10.2(3) hereof, as a result of such consolidation, merger or amalgamation, if on the
record date of such reclassification, reorganization or other change of shares or the effective date of such consolidation, merger or amalgamation, as the case may be, such Participant had been the registered holder of the number of Shares to which
such Participant was immediately theretofore entitled upon such exercise or vesting of such Award. 

  

	(4)	 If, at any time after the grant of an Award to any Participant and prior to the expiration of the term of such
Award, the Corporation shall make a distribution to all holders of Shares or other securities in the capital of the Corporation, or cash, evidences of indebtedness or other assets of the Corporation (excluding an ordinary course dividend in cash or
shares, but including for greater certainty shares or equity interests in a Subsidiary or business unit of the Corporation or one of its Subsidiaries or cash proceeds of the disposition of such a Subsidiary or business unit), or should the
Corporation effect any transaction or change having a similar effect, then the price or the number of Shares to which the Participant is entitled upon exercise or vesting of Award shall be adjusted to take into account such distribution, transaction
or change. The Board shall determine the appropriate adjustments to be made in such circumstances in order to maintain the 

  
 - 21 - 

	 	
Participants’ economic rights in respect of their Awards in connection with such distribution, transaction or change. 

Section 10.2 Amendment or Discontinuance of the Plan. 
  

	(1)	 The Board may amend the Plan or any Award at any time without the consent of the Participants provided that
such amendment shall: 

  

	 	(a)	 not adversely alter or impair any Award previously granted except as permitted by the provisions of Article 10
hereof; 

  

	 	(b)	 be subject to any regulatory approvals including, where required, the approval of the TSX; and

  

	 	(c)	 be subject to shareholder approval, where required by law or the requirements of the TSX, provided that
shareholder approval shall not be required for the following amendments and the Board may make any changes which may include but are not limited to: 

  

	 	(i)	 amendments of a “housekeeping” nature; 

 

	 	(ii)	 a change to the vesting provisions of any Award; 

 

	 	(iii)	 the introduction or amendment of a cashless exercise feature payable in securities, whether or not such feature
provides for a full deduction of the number of underlying securities from the Plan reserve; and 

  

	 	(iv)	 the addition of a form of financial assistance and any amendment to a financial assistance provision which is
adopted. 

  

	(2)	 Notwithstanding Section 10.2(1)(c), the Board shall be required to obtain shareholder approval to make the
following amendments: 

  

	 	(a)	 any change to the maximum number of Shares issuable from treasury under the Plan, except such increase by
operation of Section 2.4 and in the event of an adjustment pursuant to Article 10; 

  

	 	(b)	 any amendment which reduces the exercise price of any Award, as applicable, after such Awards have been granted
or any cancellation of an Award and the substitution of that Award by a new Award with a reduced price, except in the case of an adjustment pursuant to Article 10; 

 

	 	(c)	 any amendment which extends the expiry date of any Award, or the Restriction Period of any RSU beyond the
original expiry date, except in case of an extension due to a Black-Out Period; 

  

	 	(d)	 any amendment which would permit a change to the Eligible Participants, including a change which would have the
potential of broadening or increasing participation by Insiders; 

  

	 	(e)	 any amendment which would permit any Award granted under the Plan to be transferable or assignable by any
Participant other than as allowed by Section 9.1(4); 

  

	 	(f)	 any amendment which increases the maximum number of Shares that may be (i) issuable to Insiders and
Associates of such Insiders at any time; or (ii) issued to Insiders 

  
 - 22 - 

	 	
and Associates of such Insiders under the Plan and any other proposed or established Share Compensation Arrangement in a one-year period, except in case of
an adjustment pursuant to Article 10; or 

  

	 	(g)	 any amendment to the amendment provisions of the Plan, 

provided that Shares held directly or indirectly by Insiders benefiting from the amendments in Sections (b) and (c) shall be excluded when
obtaining such shareholder approval. 
  

	(3)	 Notwithstanding anything contained to the contrary in the Plan, in a Grant Agreement contemplated herein, but
subject to any specific provisions contained in any Employment Agreements, in the event of a Change in Control, a reorganization of the Corporation, an amalgamation of the Corporation, an arrangement involving the Corporation, a take-over bid (as
that term is defined in the Securities Act (Québec)) for all of the Shares or the sale or disposition of all or substantially all of the property and assets of the Corporation, the Board may make such provision for the protection of
the rights of the Participants as the Board in its discretion considers appropriate in the circumstances, including, without limitation, changing the Performance Criteria and/or other vesting conditions for the Awards and/or the date on which any
Award expires or the Restriction Period, the Performance Period, the Performance Criteria and/or other vesting conditions for the Awards. 

  

	(4)	 The Board may, by resolution, advance the date on which any Award may be exercised or payable or, subject to
applicable regulatory provisions, including the rules of the TSX, and shareholder approval, extend the expiration date of any Award, in the manner to be set forth in such resolution provided that the period during which an Option or a SAR is
exercisable or RSU is outstanding does not exceed ten (10) years from the date such Option or SAR is granted in the case of Options and SARs and three (3) years after the calendar year in which the award is granted in the case of RSUs. The
Board shall not, in the event of any such advancement or extension, be under any obligation to advance or extend the date on or by which any Option or SAR may be exercised or RSU may be outstanding by any other Participant. 

 

	(5)	 The Committee may, by resolution, but subject to applicable regulatory approvals, decide that any of the
provisions hereof concerning the effect of termination of the Participant’s employment shall not apply for any reason acceptable to the Committee. 

  

	(6)	 The Board may, subject to regulatory approval, discontinue the Plan at any time without the consent of the
Participants provided that such discontinuance shall not materially and adversely affect any Awards previously granted to a Participant under the Plan. 

ARTICLE 11 — MISCELLANEOUS 

Section 11.1 Use of an Administrative Agent and Trustee. 

The Board may in its sole discretion appoint from time to time one or more entities to act as administrative agent to administer the Awards granted under the
Plan and to act as trustee to hold and administer the assets that may be held in respect of Awards granted under the Plan, the whole in accordance with the terms and conditions determined by the Board in its sole discretion. The Corporation and the
administrative agent will maintain records showing the number of Awards granted to each Participant under the Plan. 
 Section 11.2 Tax Withholding.

  

	(1)	 Notwithstanding any other provision of this Plan, all distributions, delivery of Shares or payments to a
Participant (or to the liquidator, executor or administrator, as the case may be, of the estate of the Participant) under the Plan shall be made net of applicable source deductions. If the event

  
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giving rise to the withholding obligation involves an issuance or delivery of Shares, then, the withholding obligation may be satisfied by (a) having the Participant elect to have the
appropriate number of such Shares sold by the Corporation, the Corporation’s transfer agent and registrar or any trustee appointed by the Corporation pursuant to Section 11.1 hereof, on behalf of and as agent for the Participant as soon as
permissible and practicable, with the proceeds of such sale being delivered to the Corporation, which will in turn remit such amounts to the appropriate governmental authorities, or (b) any other mechanism as may be required or appropriate to
conform with local tax and other rules. 

  

	(2)	 Notwithstanding the first paragraph of this Section 11.2, the applicable tax withholdings may be waived
where the Participant directs in writing that a payment be made directly to the Participant’s registered retirement savings plan in circumstances to which regulation 100(3) of the regulations of the Tax Act apply. 

Section 11.3 Reorganization of the Corporation. 
 The
existence of any Awards shall not affect in any way the right or power of the Corporation or its shareholders to make or authorize any adjustment, recapitalization, reorganization or other change in the Corporation’s capital structure or its
business, or any amalgamation, combination, merger or consolidation involving the Corporation or to create or issue any bonds, debentures, shares or other securities of the Corporation or the rights and conditions attaching thereto or to affect the
dissolution or liquidation of the Corporation or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar nature or otherwise. 

Section 11.4 Personal Information 
 Each Participant
shall provide the Corporation and the Board with all information they require in order to administer the Plan. The Corporation and the Board may from time to time transfer or provide access to such information to a third party service provider for
purposes of the administration of the Plan provided that such service providers will be provided with such information for the sole purpose of providing such services to the Corporation. By participating in the Plan, each Participant acknowledges
that information may be so provided and agrees to its provision on the terms set forth herein. Except as specifically contemplated in this Section 11.4, the Corporation and the Board shall not disclose the personal information of a Participant
except: (i) in response to regulatory filings or other requirements for the information by a governmental authority with jurisdiction over the Corporation; (ii) for the purpose of complying with a subpoena, warrant or other order by a
court, person or body having jurisdiction to compel production of the information; or (iii) as otherwise required by law. In addition, personal information of Participants may be disclosed or transferred to another party during the course of,
or completion of, a change in ownership of, or the grant of a security interest in, all or a part of the Corporation or its Affiliates including through an asset or share sale, or some other form of business combination, merger or joint venture,
provided that such party is bound by appropriate agreements or obligations. 
 Section 11.5 Governing Laws. 

The Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province of Québec
and the laws of Canada applicable therein. 
 Section 11.6 Severability. 

The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision and any invalid or
unenforceable provision shall be severed from the Plan. 

  
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 Section 11.7 Effective Date of the Plan. 

The Plan was approved by the Board on June 27, 2018 and shall take effect on June 27, 2018, subject to the acceptance of the Plan by the shareholders
of the Corporation, the TSX and any other applicable regulatory authorities. 
  

  
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