Document:

2004 STOCK OPTION PLAN

  
 Exhibit 4.1 

 
 OPEN TEXT CORPORATION 
  
 2004 STOCK OPTION PLAN 
  

	1.	PURPOSE OF THE PLAN 

  
 1.1 This 2004 Stock Option Plan has been established by the Company to provide long-term incentives to attract, motivate and retain certain key employees and officers of, and consultants providing services to, the
Company. 
  

	2.	DEFINITIONS 

  
 2.1 In this Plan, the following terms have the following meanings: 
  
 “Associate” has the meaning ascribed to that term in the Securities Act (Ontario); 
  
 “Board” means the board of directors of the Company; 
  
 “Business Day” means any day other than a Saturday, a Sunday or a statutory holiday observed in the Province
of Ontario; 
  
 “Company” means Open Text
Corporation, its subsidiaries and their respective successors and assigns, and any reference in the Plan to action by the Company means action by or under the authority of the Board or any person or the Committee that has been designated for that
purpose by the Company; 
  
 “Committee” means a
committee, if any, created by the Board to administer the Plan pursuant to the provisions contained herein; 
  
 “Consultant” means a person providing on-going services to the Company excluding, for greater certainty, a director of the Company; 
  
 “Date of Grant” of an Option means the date the Option is
granted to a Participant under the Plan; 
  
 “Designated
Number” has the meaning ascribed to it in Subsection 3.2(a) hereof; 
  
 “Designated Percentage” has the meaning ascribed to it in Subsection 3.2(c) hereof; 
  
 “Earliest Exercise Date” has the meaning ascribed to it in Subsection 3.2(d) hereof; 
  
 “Effective Date” means the 26th day of October 2004, when this Plan was approved by the Board; 
  
 “Eligible Employee” has the meaning ascribed to it in Section 3.1 hereof; 
  
 “Exercise Notice” has the meaning ascribed to it in Subsection
3.5(a) hereof; 
  
 “Expiry Time” means, in relation
to an Option, 5:00 p.m. (Toronto time) on the Latest Exercise Date; 
  
 “Insider” means 
  

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

  

	(ii)	an Associate of any person who is an insider by virtue of (i), above; 

  
 “ISO” has the meaning ascribed to it in Section 9.1 hereof; 
  
 “Latest Exercise Date” has the meaning ascribed to it in Subsection 3.2(e) hereof; 
  
 “Market Price” on any date means, in respect of the Shares,
the closing price of the Shares on the trading day immediately preceding such date on the quotation system or stock exchange on which the greatest volume of trading of Shares has occurred on that trading day; 
  
 “Offeror” or “offeror” has the
meaning ascribed to that term in the Securities Act (Ontario); 
  
 “Option” means a right granted under the Plan to a Participant to purchase Shares in accordance with the Plan; 
  
 “Option Price” has the meaning ascribed to it in Subsection 3.2(b) hereof; 
  
 “Option Year” in respect of an Option means the year commencing on the Earliest Exercise Date of the Option
or on any anniversary of such date, and ending prior to or on the Latest Exercise Date; 
  
 “Outstanding Issue” means the aggregate number of Shares that are outstanding immediately prior to the Share issuance in question, excluding Shares which have been issued pursuant to Share Compensation
Arrangements within the preceding one year period; 
  
 “Participant” means an Eligible Employee who has agreed to participate in the Plan on such terms as the Company may specify at the time he or she is designated as an Eligible Employee; 
  
 “Plan” means this 2004 Stock Option Plan, as amended and
restated from time to time; 
  
 “Shares” means
common shares of the Company, and include any shares of the Company into which such shares may be converted, reclassified, subdivided, consolidated, exchanged or otherwise changed, whether pursuant to a reorganization, amalgamation, merger,
arrangement or other form of reorganization; 
  
 “Share
Compensation Arrangement” means the Plan, an employee stock purchase plan or any other compensation or incentive plan involving the issuance or potential issuance of Shares to Participants, including a purchase of Shares from
treasury which is financially assisted by the Company by way of a loan, guarantee or otherwise; 
  
 “Take-over Bid” means a take-over bid, as defined in the Securities Act (Ontario), which is a “formal bid” as defined in such Act, and which is made for all of the
issued and outstanding Shares in the capital of the Company and may exclude (i) those Shares in the capital of the Company which are then owned by the offeror under such Take-over Bid, and/or (ii) those Shares in the capital of the Company which the
offeror under such Take-over Bid then otherwise has, directly or indirectly, the right to acquire. 
  
 “Unexercisable Shares” has the meaning ascribed to it in Subsection 3.5(b) hereof; 
  
 “US Optionee” has the meaning ascribed to it in Section 9.1 hereof; and 
  
 “Vesting Date” has the meaning ascribed to it in Subsection 3.2(c) hereof. 
  
 2.2 In this Plan, unless the context requires otherwise, references to the male gender
include the female gender, words importing the singular number may be construed to extend to and include the plural number, and words importing the plural number may be construed to extend to and include the singular number. 
  

	3.	GRANT OF OPTIONS AND TERMS 

  
 3.1 The Company may, from time to time, designate one or more bona fide full-time employees of the Company or Consultants as “Eligible Employees” for the
purposes of the Plan. If an employee agrees to participate in the Plan on such terms as the Company may specify at the time he or she is designated as an Eligible Employee, he or she shall become a Participant in the Plan. 
  
 3.2 The Company may, from time to time, grant an Option to a Participant to acquire Shares in
accordance with the Plan. In granting such Option, subject to the provisions hereof, the Company shall designate, 
  

	 	(a)	the maximum number (the “Designated Number”) of Shares which the Participant may purchase under the Option; 

  

	 	(b)	the price (the “Option Price”) per Share at which the Participant may purchase his or her Shares under the Option, which price shall be determined by the Company in
accordance with Section 3.3 hereof; 

  

	 	(c)	a percentage of the Designated Number (the “Designated Percentage”), determined in accordance with Section 3.4 hereof, representing the maximum number of Shares that may
be purchased by a Participant pursuant to the exercise of that Option in each year during the term of such Option, and the date after which such Shares may be purchased (the “Vesting Date”); provided that if a Participant exercises an
Option and purchases fewer Shares than the Designated Percentage in any year during the term of the Option, any remaining portion of the Designated Percentage of Shares shall be available for purchase at any time subsequent to the Vesting Date for
such Option and prior to the Expiry Time, in addition to Shares otherwise becoming available to the Participant for purchase after any subsequent Vesting Date. 

  

	 	(d)	the earliest date (the “Earliest Exercise Date”) on which the Option may be exercised, which may be the Date of Grant; 

  

	 	(e)	the latest date (the “Latest Exercise Date”) on which the Option may be exercised, which shall be no later than seven (7) years after the Date of Grant; and

  

	 	(f)	with respect to Options granted pursuant to Section 9 hereof, whether the Option is intended to constitute an ISO. 

  
 3.3 The Option Price in respect of an Option shall be determined by the Company, but shall be
not less than the Market Price of the Company’s Shares on the Date of Grant of the Option provided that if the Shares are not then traded on a stock exchange or on a quotation system, the Option Price shall be the fair market value of the
Shares as determined in good faith by the Board. 
  
 3.4 The Designated Percentage
in respect of an Option shall be determined by the Company in its sole discretion, however, if the Company does not specify otherwise, then the Designated Percentage shall be twenty-five percent (25%). 
  
 3.5 If a Participant should die and the circumstances specified in Section 3.6 had not
occurred in relation to such Participant and such Participant, at the time of his or her death, held an Option(s) in respect of which the Expiry Time had not then occurred: 
  

	 	(a)	 in the case of each Option so held by the deceased Participant which had vested and was exercisable with respect to some or all of the Shares forming the subject
matter thereof as at the date of the death of the deceased Participant, the legal representatives of the deceased Participant 

  

	 	 
shall be entitled to send a notice in writing (an “Exercise Notice”) to the Company advising that they wish to exercise such Option which notice,
to be effective, must be actually received by the Company by no later than the earlier of 5:00 p.m. (Toronto time) on the date which is the 180th day following the date of the death of such deceased Participant and the Expiry Time, and must specify
the number of Shares in respect of which such Option is wished to be exercised (provided that such exercise can only be in respect of up to that number of Shares that the deceased Participant could have exercised such Option as at the date of his or
her death, subject to Subsection 3.5(b) hereof). In the event that: 

  

	 	(i)	an effective Exercise Notice is actually received by the Company by no later than the earlier of 5:00 p.m. (Toronto time) on the date which is the 180th day following the date of
the death of such deceased Participant and the Expiry Time, then the Company shall issue to the estate of the deceased Participant that number of Shares as were specified in the Exercise Notice (provided that the maximum number of Shares which can
be issued shall not exceed that number of Shares for which the deceased Participant could have exercised such Option as at the date of his or her death, subject to Subsection 3.5(b) hereof), which issuance shall occur as soon as practicable
thereafter. If the Exercise Notice so received is in respect of less than the maximum number of Shares for which the deceased Participant could have exercised such Option as at the date of his or her death, such Option shall, subject to Subsection
3.5(b) hereof, in all respects cease and terminate and be of no further force or effect whatsoever as to such of the Shares in respect of which such Option had not been previously exercised; and 

  

	 	(ii)	an effective Exercise Notice is not actually received by the Company by the earlier of 5:00 p.m. (Toronto time) on the date which is the 180th day following the date of the death of
such deceased Participant and the Expiry Time, such Option shall, subject to Subsection 3.5(b) hereof, in all respects cease and terminate and be of no further force or effect whatsoever as to such of the Shares in respect of which such Option had
not been previously exercised; 

  

	 	(b)	in the case of each Option so held by the deceased Participant which: 

  

	 	(i)	was not vested and was not exercisable with respect to all of the Shares forming the subject matter thereof as at the date of the death of the deceased Participant; and/or

  

	 	(ii)	was not exercised on or prior to the earlier of 5:00 p.m. (Toronto time) on the date which is the 180th day following the death of such deceased Participant and the Expiry Time with
respect to all of the Shares in respect of which it could have been exercised as at the date of the death of the deceased Participant, 

  
 (the Shares in respect of which such Option was then not exercisable or exercised being collectively referred to in this Subsection 3.5(b) as the
“Unexercisable Shares”) such Option may, with the prior written consent of the Company (which consent may be given or withheld by the Company in its sole and arbitrary discretion), be exercised by the deceased Participant’s legal
representatives with respect to up to that number of the Unexercisable Shares as the Company may, in its sole and arbitrary discretion, designate and advise such legal representatives of by notice in writing given within one year following the date
of the death of the deceased Participant, provided that any such exercise is made by the deceased Participant’s legal representatives pursuant to a written notice of exercise given by them to the Company on or prior to the earlier of 5:00 p.m.
(Toronto time) on the date which is the 60th day following the giving of such notice by the Company and the Expiry Time and, if such a notice of exercise is given by the legal representatives of the deceased Participant, the Company shall issue to
the estate of the deceased 

  

 
Participant that number of Shares as were specified in the notice of exercise, which issuance shall occur as soon as practicable thereafter. 
  
 3.6 (a) Except as otherwise provided in subsection 3.6(b) or in a written agreement with the
Company, and approved by the Board, if a Participant: 
  

	 	(i)	resigns or is discharged as, or otherwise ceases to be, an employee or officer of the Company; or 

  

	 	(ii)	was engaged as a Consultant and is not an employee or officer of the Company, and such Participant resigns from such engagement, the engagement is terminated or otherwise ceases to
be so engaged, 

  
 immediately after the earlier of
5:00 p.m. (Toronto time) on the 90th day following the date of the occurrence of any such resignation, discharge, removal or termination other than by reason of death as contemplated in Section 3.5 (and without the requirement for any further act or
formality including, without limitation, the giving of any notices) and the Expiry Time each and every Option granted to such Participant under the Plan, which has not been exercised by said time shall in all respects immediately cease and terminate
and be of no further force or effect whatsoever as to the Shares in respect of such Option, regardless of whether or not such Option had vested with respect to such Shares. 
  

	 	(b)	Except as otherwise provided in a written agreement with the Company, and approved by the Board, if a Participant: 

  

	 	(i)	is discharged or terminated as an employee or officer of the Company for cause; or 

  

	 	(ii)	was engaged as a Consultant and is not an employee or officer of the Company, and the engagement is terminated by the Company for cause or breach of duty, 

 
 immediately upon the occurrence of any such discharge, removal or
termination other than by reason of death as contemplated in Section 3.5 (and without the requirement of any further act or formality including, without limitation, the giving of any notices) each and every Option granted to such Participant under
the Plan, which had not been exercised prior to such occurrence, shall in all respects immediately cease and terminate and be of no further force or effect whatsoever as to Shares in respect of such Options, regardless of whether or not such Option
had vested with respect to such Shares. 
  
 For greater certainty, the Company
shall in its sole and absolute discretion determine whether “cause” or a “breach of duty” exists with respect to a discharge or termination. 
  

3.7 Participation in the Plan shall be entirely voluntary and any decision not to participate shall not affect the employment of any Eligible Employee with the
Company. 
  
 3.8 The Company shall in its sole discretion, subject only to the
terms of this Plan, determine the terms of all Options. 
  

	4.	EXERCISE OF PARTICIPANTS’ OPTIONS 

  
 4.1 Subject to earlier termination as provided for in Sections 3.5, 3.6 and 6.3, a Participant’s Option shall terminate and may not be exercised after the Latest
Exercise Date. 
  

 4.2 Other than as provided for in Sections 3.5, 3.6 and 6.3, the exercise of an Option under the Plan shall be made by
notice to the Company in writing specifying and subscribing for the number of Shares in respect of which the Option is being exercised at that time and accompanied by a certified cheque or other means of cash payment satisfactory to the Company in
the amount of the aggregate Option Price for such number of Shares. As of the day the Company receives such notice and such payment, the Participant (or the person claiming through him or her, as the case may be) shall be entitled to be entered on
the share register of the Company as the holder of the number of Shares in respect of which the Option was exercised and as promptly as possible thereafter shall be delivered a certificate representing that number of Shares. 
  
 4.3 Upon the exercise of any Option, the Company shall have the right to require the
Participant to remit to the Company an amount sufficient to satisfy all federal, provincial, state and local withholding tax requirements, if any, prior to the delivery of any certificate or certificates for Shares. 
  
 4.4 Upon the disposition of any Shares acquired through the exercise of an Option, the
Company shall have the right to require the Participant to remit to the Company an amount sufficient to satisfy all federal, provincial, state and local withholding tax requirements, if any, as a condition to the registration of the transfer of such
Shares on its books. Whenever payments are to be made under the Plan to the Company in cash or by certified cheque, such payments shall be net of any amount sufficient to satisfy all federal, provincial, state and local withholding tax requirements.

  

	5.	MAXIMUM NUMBER OF SHARES TO BE ISSUED UNDER THE PLAN 

  
 5.1 The maximum number of Shares which may be issued under Options granted and outstanding pursuant to this Plan by the Company to Participants is 1,600,000. 

 
 5.2 Notwithstanding any of the provisions of this Plan, the number of Shares reserved for
issuance to any one person pursuant to options granted under this Plan and under other Share Compensation Arrangements shall not exceed five percent (5%) of the Outstanding Issue and the number of Shares reserved for issuance pursuant to all options
granted to Insiders under this Plan and under other Share Compensation Arrangements shall not exceed fifteen percent (15%) of the Outstanding Issue. In addition, the issuance to any one Insider and such Insider’s Associates, within a one year
period, of Shares issued pursuant to all Share Compensation Arrangements may not exceed five percent (5%) of the Outstanding Issue and the issuance to all Insiders, within a one year period, of Shares issued pursuant to all Share Compensation
Arrangements may not exceed fifteen percent (15%) of the Outstanding Issue. 
  
 5.3 If any Option is terminated, cancelled or has expired without being fully exercised, any unissued Shares which have been reserved to be issued upon the exercise of the Option shall become available to be issued upon the exercise of
Options subsequently granted under the Plan, provided that any such termination or cancellation of Options shall be conducted in accordance with the applicable rules of any stock exchange upon which the Shares of the Company are listed. 

 

	6.	ANTI-DILUTION AND TAKE-OVER BID PROVISIONS 

  
 6.1 Notwithstanding any other provision of the Plan, in the event of any change in the Shares by reason of any stock dividend, split, recapitalization, reclassification,
amalgamation, arrangement, merger, consolidation, combination or exchange of Shares or distribution of rights to holders of Shares or any other form of corporate reorganization whatsoever, an equitable adjustment shall be made to any Options then
outstanding and in the Option Price in respect of such Options. Such adjustment shall be made by the Board and, subject to applicable law, shall be conclusive and binding for all purposes of the Plan. 
  

 6.2 The Company shall not be required to issue fractional shares in satisfaction of its obligations hereunder. Any
fractional interest in a Share that would, except for the provisions of this Section 6.2, be deliverable upon the exercise of any Option shall be cancelled and not be deliverable by the Company. 
  
 6.3 If a Take-over Bid is made, then, notwithstanding Subsections 3.2(c), (d) and (e) hereof,
but subject to the other provisions of the Plan, the following shall apply: 
  

	 	(a)	The Company may, in its sole and arbitrary discretion, give its express consent to the exercise of any Options which are outstanding at the time that such Take-over Bid was made
regardless of whether such Options have vested in accordance with Subsection 3.2(c). 

  

	 	(b)	If the Company has so expressly consented to the exercise of any Options outstanding at the time that such Take-over Bid was made, the Company shall, immediately after such consent
has been given, give a notice in writing (a “Take-over Bid Notice”) to each Participant then holding unexpired Options (whether vested or not) advising of the making of the Take-over Bid and such notice shall provide reasonable particulars
of the Take-over Bid and shall specify that the Participant may conditionally exercise all or any portion of any such unexpired Options then held by the Participant in accordance with Subsection 6.3(c) below. 

  

	 	(c)	If a Participant wishes to conditionally exercise any such Option, such exercise shall be made by notice in writing to the Company at any time during the period commencing on the
date of the Take-over Bid Notice and ending on the date which is the earlier of the 10th day following the giving of the Take-over Bid Notice and the day immediately preceding the date specified in the Take-over Bid as the last date on which the
offer therein provided for may be taken up. Such notice shall specify and conditionally subscribe for the shares (the “Specified Shares”) issuable upon conditional exercise of such Option and shall be accompanied by a certified cheque or
other means of cash payment satisfactory to the Company in the amount of the aggregate Option Price for such number of Specified Shares. The conditional exercise of the Option and the conditional subscription for the Specified Shares shall be
conditional upon: (i) the Participant tendering the Specified Shares into the Take-over Bid, and (ii) the completion of the Take-over Bid on or before the expiry of the Take-over Bid (which shall include the irrevocable obligation of the offeror to
take up and pay for all Specified Shares deposited under the Take-over Bid). Provided that, if necessary in order to permit such Participant to participate in the Take-over Bid, the Options so exercised shall be deemed to have been exercised and the
issuance of the Specified Shares issuable upon such exercise shall be deemed to have been issued, effective as of the first Business Day immediately prior to the date on which the Take-over Bid was made. 

  

	 	(d)	If, upon the expiry of the applicable Option exercise period specified in Subsection 6.3(c) above, the Take-over Bid is completed and a Participant did not, prior to the expiration
of such exercise period, conditionally exercise the entire or any portion of the Option which such Participant could have exercised in accordance with the provisions of this Section 6.3, then, as of and from the expiry of such exercise period, the
Participant shall cease to have any further right to exercise such Option, in whole or in part, and each such Option shall be deemed to have expired and shall be null and void. 

  

	 	(e)	In no event shall the Participant be entitled to sell the Specified Shares otherwise than pursuant to a Take-over Bid. 

  

	7.	LOANS OR GUARANTEES FOR LOANS TO PARTICIPANTS 

  
 7.1 Subject to applicable law and under the applicable rules of any stock exchange upon which the shares of the Company are listed, the Company may, at any time, in its
sole discretion, arrange for the Company to make loans or provide guarantees for loans by financial institutions to assist Participants to purchase Shares upon the exercise of the Options so granted and to pay any tax exigible upon exercise of the
Options. Such loans shall bear interest at such rates, if any, and be on such other terms as may be determined by the Company, provided however, that the repayment of such loans shall in each case be secured by the Shares purchased with the proceeds
of such loans and shall not exceed the term of the Option and the Company shall, in its sole discretion, determine the procedures, documents and other steps necessary or desirable to secure the repayment of such loans with such Shares. 

 

	8.	ACCOUNTS AND STATEMENTS 

  
 8.1 The Company shall maintain records of the details of each Option granted to each Participant under the Plan, including the Date of Grant, Designated Number, the
Option Price of each Option, the Vesting Date or Dates, the Latest Exercise Date or Dates, the number of Shares in respect of which the Option has been exercised and the maximum number of Shares which the Participant may still purchase under the
Option. Upon request therefore from a Participant and at such other times as the Company shall determine, the Company shall furnish the Participant with a statement setting forth the details of his Options. Such statement shall be deemed to have
been accepted by the Participant as correct unless written notice to the contrary is provided to the Company within thirty (30) days after such statement is given to the Participant. 
  

	9.	OPTIONS GRANTED TO US RESIDENTS OR CITIZENS 

  
 9.1 Any Option granted under this Plan to a Participant who is a citizen or resident of the United States (including its territories, possessions and all areas subject to
the jurisdiction) (a “U.S. Optionee”) may be an incentive stock option (an “ISO”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, of the United States (the “Code”), but only if
so designated by the Company in the agreement evidencing such Option. No provision of this Plan, as it may be applied to a US Optionee, shall be construed so as to be inconsistent with any provision of Section 422 of the Code. Grants of Options to
US Optionees which are not ISO’s may be granted pursuant to Section 3 hereof. Notwithstanding anything in this Plan contained to the contrary, the following provisions shall apply to ISO’s granted to each US Optionee: 
  

	 	(a)	ISO’s shall only be granted to US Optionees who are, at the time of grant, officers or key employees; 

  

	 	(b)	the aggregate fair market value (determined as of the time an ISO is granted) of the Shares subject to ISO’s exercisable for the first time by a US Optionee during any calendar
year under this Plan and all other Stock Option Plans, within the meaning of Section 422 of the Code, of the Company shall not exceed One Hundred Thousand Dollars in US funds (US $100,000); provided that options for Shares which exceed such
aggregate fair market value shall not be void, but shall instead be options which are granted under Section 3 hereof and are not ISOs; 

  

	 	(c)	the Option Price for Shares under each ISO granted to a US Optionee pursuant to this Plan shall be not less than the fair market value of such Shares at the time the Option is
granted, as determined in good faith by the Board at such time; 

  

	 	(d)	 if any US Optionee to whom an ISO is to be granted under the Plan at the time of the grant of such ISO is the owner of shares possessing more than ten percent (10%)
of the total combined voting 

  

	 	 
power of all classes of shares of the Company, then the following special provisions shall be applicable to the ISO granted to such individual:

  

	 	(i)	the Option Price (per Share) subject to such ISO shall not be less than one hundred ten percent (110%) of the fair market value of one Share at the time of grant; and

  

	 	(ii)	for the purposes of this Section 9 only, the option exercise period shall not exceed five (5) years from the Date of Grant; 

  

	 	(e)	no Option may be granted hereunder to a US Optionee following the expiration of ten (10) years after the date on which this Plan is adopted by the Company or the date on which the
Plan is approved by the shareholders of the Company, whichever is earlier; and 

  

	 	(f)	no Option granted to a US Optionee under the Plan shall become exercisable unless and until the Plan shall have been approved by the shareholders of the Company.

  

	10.	NOTICES 

  
 10.1 Any payment, notice, statement, certificate or other instrument required or permitted to be given to a Participant or any person claiming or deriving any rights through him or her shall be given by: 

 

	 	(a)	delivering it personally to the Participant or to the person claiming or deriving rights through him or her, as the case may be; or 

  

	 	(b)	mailing it postage paid (provided that the postal service is then in operation) or delivering it to the address which is maintained for the Participant in the Company’s
records. 

  
 10.2 Any payment, notice, statement, certificate or
instrument required or permitted to be given to the Company shall be given by mailing it postage prepaid (provided that the postal service is then in operation) or delivering it to the Company at the following address: 
  
 Open Text Corporation 
 185 Columbia Street West 
 Waterloo, Ontario

 N2L 5Z5 
  
 Attention: Chief Financial Officer 
  
 10.3 Any payment, notice, statement, certificate or other instrument referred to in Sections 8.1 or 10.2 hereof, if delivered, shall be deemed to have been given or
delivered on the date on which it was delivered or, if mailed (provided that the postal service is then in operation), shall be deemed to have been given or delivered on the second Business Day following the date on which it was mailed. 

 

	11.	GENERAL 

  
 11.1 The Company shall have the power to, at any time and from time to time either prospectively or retrospectively, add to, amend, vary, cancel, discontinue or terminate the Plan or any Option granted under the Plan,
subject to any approvals required under applicable law and any prior approvals required under the applicable rules of any stock exchange upon which Shares of the Company are listed 
  

 11.2 Notwithstanding section 11.1, the Company is prohibited from repricing any Option granted under the Plan.

  
 11.3 The Company shall have the power to make such rules and regulations for
the administration of this Plan, and to interpret the provisions hereof and of such rules and regulations, as it shall in its sole discretion determine to be appropriate. 
  
 11.4 The determination by the Company of any question which may arise as to the interpretation or implementation of the Plan or any of the
Options granted hereunder shall be final and binding on all Participants and other persons claiming or deriving rights through any of them. 
  
 11.5 The Plan shall enure to the benefit of and be binding upon the Company, its successors and assigns. The interest of any Participant under the Plan or in any Option
shall not be transferable or alienable by him or her either by pledge, assignment or in any other manner whatsoever and, during his lifetime, shall be vested only in him or her, but shall thereafter enure to the benefit of and be binding upon the
legal personal representatives of the Participant in accordance with the terms hereof. 
  
 11.6 The Company’s obligation to issue Shares in accordance with the terms of this Plan and any Options granted hereunder is subject to compliance with the laws, rules and regulations of all public agencies and authorities applicable
to the issuance and distribution of such Shares and to the listing of such Shares on any stock exchange on which any of the Shares of the Company may be listed. As a condition of participating in the Plan, each Participant agrees to comply with all
such laws, rules and regulations and agrees to furnish to the Company all information and undertakings as may be required to permit compliance with such laws, rules and regulations. 
  
 11.7 No Participant shall have any rights as a shareholder in respect of Shares subject to an Option until such Shares have been paid for in
full and issued. 
  
 11.8 No Participant or other person shall have any claim or
right to be granted Options under the Plan. Neither the Plan nor any action taken thereunder shall interfere with the right of the employer of a Participant to terminate that Participant’s employment at any time. Neither any period of notice
nor any payment in lieu thereof upon termination of employment shall be considered as extending the period of employment for the purposes of the Plan. 
  
 11.9 The Board shall be entitled to make such rules, regulations and determinations as it deems appropriate under the Plan in respect of any leave of absence or
disability of any Participant. Without limiting the generality of the foregoing, the Board shall be entitled to determine (i) whether or not any such leave of absence shall constitute a termination of employment within the meaning of the Plan, and
(ii) the impact, if any, of any such leave of absence on awards under the Plan theretofore made to any Participant who takes such leave of absence (including, without limitation, whether or not such leave of absence shall cause any Options to expire
and the impact upon the time or times such Options shall become exercisable). 
  
 11.10 This Plan and any Options granted hereunder shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. 
  
 11.11 This Plan is hereby instituted and in effect as of the Effective Date, provided that
(i) any Options granted prior to the approval of the Plan by the shareholders of the Corporation shall not be exercisable until such shareholder approval has been obtained, and (ii) the Plan and any Options granted under the Plan shall terminate the
day after the next annual meeting of shareholders of the Corporation unless the Plan has been approved by shareholders at such meeting. 
  
 * * * 
  

  
 [LETTERHEAD OF OPEN TEXT
CORPORATION] 
  

	TO:	[Name of Eligible Employee] 

  
 You have been designated as an Eligible Employee under the 2004 Stock Option Plan of Open Text Corporation (the “Plan”), and assuming that you
become a Participant in the Plan by signing this letter, the details of the non-assignable Option which has been granted to you under the Plan are as follows: 
  

			
	 (a)    Date of Grant:
	  	____________________________
		
	 (b)    Designated Number (maximum number of shares which you may purchase under this Option):
	  	____________________________
		
	 (c)    Option Price (price per share):
	  	____________________________
		
	 (d)    Earliest Exercise Date:
	  	____________________________
		
	 (e)    Latest Exercise Date:
	  	____________________________
	
	 (f)     Vesting Date and Designated Percentage (% of Designated Number you may purchase each year after
the applicable Vesting Date):

  

			
	 Vesting Date

	 	 Designated Percentage

	 1st Anniversary of Date of Grant
	 	25%
	 2nd Anniversary of Date of Grant
	 	25%
	 3rd Anniversary of Date of Grant
	 	25%
	 4th Anniversary of Date of Grant
	 	25%

  
 If you agree to
participate in the Plan and comply with its terms and conditions, please sign one copy of this letter and return it to                     
by              . 
  

			
	OPEN TEXT CORPORATION
		
	 By:
	 	 

  
 I have read the
Open Text Corporation 2004 Stock Option Plan and agree to comply with, and agree that my participation is subject in all respects to, its terms and conditions: 
  

	
	
	 
	 (Signature)

	
	 
	 (Date)2004 EMPLOYEE STOCK PURCHASE PLAN

  
 Exhibit 4.2 

 
 OPEN TEXT CORPORATION 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 Article 1 - Purpose 
  
 This 2004 Employee Stock Purchase Plan (the “Plan”) is intended to
encourage share ownership by all eligible employees of Open Text Corporation (the “Company”), an Ontario corporation, and its participating subsidiaries (as defined in Article 17) so that they may share in the growth of the Company by
acquiring or increasing their proprietary interest in the Company. The Plan is designed to encourage eligible employees to remain in the employ of the Company and its participating subsidiaries. The Plan is intended to constitute an “employee
stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 Article 2 - Administration of the Plan 
  
 The Plan may be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”). Acts by a majority of the
Committee, or acts reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee. 
  
 The interpretation and construction by the Committee of any provisions of the Plan or of any option granted under it shall be final, unless otherwise
determined by the Board of Directors. The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best, provided that any such rules and regulations shall be applied on a uniform basis to all
employees under the Plan. No member of the Board of Directors or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option granted under it. 
  
 In the event that there is no Committee available to administer the Plan, the
Board of Directors shall have all power and authority to administer the Plan. In such event, the word “Committee” wherever used herein shall be deemed to mean the Board of Directors. 
  
 Article 3 - Eligible Employees 
  
 All employees of the Company or any of its participating subsidiaries whose
customary employment is more than 20 hours per week shall be eligible to receive options under the Plan to purchase Common Shares (as defined in Article 4), and all eligible employees shall have the same rights and privileges hereunder. Persons who
are eligible employees on the first business day of any Purchase Period (as defined in Article 5) shall receive their options as of such day. Persons who become eligible employees after any date on which options are granted under the Plan shall be
granted options on the first day of the next succeeding Purchase Period on which options are granted to eligible employees under the Plan. In no event, however, may an employee be granted an option if such employee, immediately after the option was
granted, would be treated as owning shares possessing five percent or more of the total combined voting 

  

 
power or value of all classes of shares of the Company or of any parent corporation or subsidiary corporation, as the terms “parent corporation”
and “subsidiary corporation” are defined in Section 424(e) and (f) of the Code. For purposes of determining ownership under this paragraph, the rules of Section 424(d) of the Code shall apply, and shares which the employee may purchase
under outstanding options shall be treated as shares owned by the employee. 
  
 Article 4 - Shares Subject to the Plan 
  
 The shares subject to the options under the Plan shall be authorized but unissued common shares in the capital of the Company (the “Common Shares”) issued by the Company. The aggregate number of Common Shares reserved for issuance
which may be issued pursuant to the Plan is 1,000,000, subject to adjustment as provided in Article 12. If any option granted under the Plan shall expire or terminate for any reason without having been exercised in full or shall cease for any reason
to be exercisable in whole or in part, the unpurchased Common Shares subject thereto shall again be available under the Plan. 
  
 Article 5 - Purchase Period and Share Options 
  
 The first period during which payroll deductions will be accumulated under the Plan shall commence on January 1, 2005 and shall end on June 30, 2005. For
the remainder of the duration of the Plan, periods during which payroll deductions will be accumulated under the Plan shall consist of the six month periods commencing on January 1 and July 1, and ending on June 30 and December 31 of each calendar
year (each a “Purchase Period”). 
  
 Twice each year, on
the first business day of each Purchase Period, the Company will grant to each eligible employee who is then a participant in the Plan an option to purchase on the last day of such Purchase Period (the “Purchase Date”), at the Option Price
hereinafter provided for, a maximum of 100,000 Common Shares, on the condition that such employee remains eligible to participate in the Plan throughout the remainder of such Purchase Period. The participant shall be entitled to exercise the option
so granted only to the extent of the participant’s accumulated payroll deductions on the Purchase Date. If the participant’s accumulated payroll deductions on the last day of the Purchase Period would enable the participant to purchase
more than 100,000 Common Shares except for the 100,000-Common Share limitation, the excess of the amount of the accumulated payroll deductions over the aggregate purchase price of the 100,000 Common Shares shall be promptly refunded to the
participant by the Company, without interest. The Option Price per Common Share for each Purchase Period shall be the lesser of (i) 85% of the Average Market Price (as defined below) for the Common Shares on the first business day of the Purchase
Period and (ii) 85% of the Average Market Price (as defined below) for the Common Shares on the Purchase Date, in either event rounded up to the nearest cent (the “Option Price”). The foregoing limitation on the number of shares subject to
option and the Option Price shall be subject to adjustment as provided in Article 12. 
  
 For purposes of the Plan, the term “Average Market Price” on any date means (i) the weighted average trading price of the Common Shares on the trading day immediately preceding such day on the national
securities exchange or quotation system on which the greatest volume 

  

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of trading of the Common Shares in that period has occurred, if the Common Shares then traded on such securities exchange or quotation system; or (ii) the
average of the closing bid and asked prices last quoted (on that date) by an established quotation service for over-the-counter securities, if the Common Shares are not traded on a national securities exchange or quotation system; or (iii) if the
Common Shares are not publicly traded, the fair market value of the Common Shares as determined by the Committee after taking into consideration all factors which it deems appropriate, including, without limitation, recent sale and offer prices of
the Common Shares in private transactions negotiated at arm’s length. 
  
 For purposes of the Plan, the term “business day” means a day on which there is trading on the NASDAQ National Market or the aforementioned securities exchange on which the greatest volume of trading of the
Common Shares in the respective period has occurred, whichever is applicable pursuant to the preceding paragraph; and if neither is applicable, a day that is not a Saturday, Sunday or statutory holiday in the Province of Ontario. 
  
 No employee shall be granted an option which permits the employee’s
right to purchase shares under the Plan, and under all other Section 423(b) employee stock purchase plans of the Company and any parent or subsidiary corporations, to accrue at a rate which exceeds $25,000 of fair market value of such shares
(determined on the date or dates that options on such shares were granted) for each calendar year in which such option is outstanding at any time. The purpose of the limitation in the preceding sentence is to comply with Section 423(b)(8) of the
Code. If the participant’s accumulated payroll deductions on the Purchase Date would otherwise enable the participant to purchase Common Shares in excess of the Section 423(b)(8) limitation described in this paragraph, the excess of the amount
of the accumulated payroll deductions over the aggregate purchase price of the shares actually purchased shall be promptly refunded to the participant by the Company, without interest. 
  
 Article 6 - Exercise of Option. 
  
 Each eligible employee who continues to be a participant in the Plan on the Purchase Date shall be deemed to have exercised his or her option on such date
and shall be deemed to have purchased from the Company such number of full Common Shares reserved for the purpose of the Plan as the participant’s accumulated payroll deductions on such date will pay for at the Option Price, subject to the
100,000 Common Share limit of the option and the Section 423(b)(8) limitation described in Article 5. If the individual is not a participant on the Purchase Date, then he or she shall not be entitled to exercise his or her option. Only full Common
Shares may be purchased under the Plan. Unused payroll deductions remaining in a participant’s account at the end of a Purchase Period by reason of the inability to purchase a fractional share shall be carried forward to the next Purchase
Period. 
  
 Article 7 - Plan Enrollment 
  
 An eligible employee may enroll as a participant in the Plan in accordance
with procedures prescribed by the Committee, including by filling out, signing and delivering to the Company an authorization in a form specified by the Committee: 
  
 A. Stating the percentage to be deducted regularly from the employee’s pay; 
  

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 B. Authorizing the purchase of Common Shares for the employee in each Purchase Period in
accordance with the terms of the Plan; and 
  
 C.
Specifying the exact name or names in which Common Shares purchased for the employee are to be issued as provided under Article 11 hereof. 
  
 Such authorization must be received by the Company at least ten days before the first day of the next succeeding Purchase Period and shall take effect only if the
employee is an eligible employee on the first business day of such Purchase Period. 
  
 Unless a participant files a new authorization or withdraws from the Plan, the deductions and purchases under the authorization the participant has on file under the Plan will continue automatically from one Purchase
Period to succeeding Purchase Periods as long as the Plan remains in effect. 
  
 The Company will accumulate and hold for each participant’s account the amounts deducted from his or her pay. No interest will be paid on these amounts. 
  
 Article 8 - Maximum Amount of Payroll Deductions 
  
 The maximum rate of payroll deductions that an employee may elect for any
Purchase Period is 15%. An amount equal to the elected percentage of the participant’s base salary plus any commissions paid (“Compensation”) shall be deducted on each regular payday falling within the Purchase Period. All amounts
will be calculated on the participant’s gross pay, (salary and bonus/commissions), and deducted from a participant’s net pay on an after-tax basis. 
  
 Article 9 - Change in Payroll Deductions 
  
 A participant may, at any time during a Purchase Period, in accordance with procedures prescribed by the Company, stop any further deductions from the
participant’s Compensation for the purchase of Common Shares pursuant to the Plan. A participant that stops payroll deductions in any Purchase Period in accordance with the foregoing may not elect to participate further in the Plan until the
next Purchase Period except with the written consent of the Company. 
  
 Article 10 - Withdrawal from the Plan 
  
 A participant may withdraw from the Plan at any time prior to the last day of a Purchase Period, in accordance with procedures prescribed by the Committee by delivering a withdrawal notice to the Company in which event the Company will
refund the amount of the participants aggregate payroll deductions for that Purchase Period. 
  
 To re-enter the Plan, an employee who has previously withdrawn must file a new authorization at least ten days before the first day of the next Purchase Period in which he or she wishes to participate. The
employee’s re-entry into the Plan becomes effective at the beginning 

  

 - 4 - 

 
of such Purchase Period, provided that he or she is an eligible employee on the first business day of the Purchase Period. 
  
 Article 11 - Issuance of Common Shares to Custodial Accounts 
  
 The Common Shares purchased by participants will be issued electronically by
the Company’s transfer agent to a participant’s custodial account as soon as practicable after each Purchase Date. Common Shares purchased under the Plan will be issued only in the name of the participant (or, if his or her authorization
so designates, in the name of the participant and another person of legal age as joint tenants with rights of survivorship). The custodial account of participants shall be maintained by a bank, broker-dealer or similar custodian that has agreed to
hold such shares for the accounts of the respective participants. Fees and expenses of the bank, broker-dealer or similar custodian shall be paid by the Company or allocated among the respective participants in such manner as the Committee
determines. A participant or his or her legal representative may withdraw Common Shares from his or her custodial account at any time. 
  
 Article 12 - Adjustments 
  
 Upon the happening of any of the following described events, a participant’s rights under options granted under the Plan shall be adjusted as
hereinafter provided: 
  
 A. In the event that
the Common Shares shall be subdivided or consolidated into a greater or smaller number of shares or if, upon a reorganization, split-up, liquidation, recapitalization or the like of the Company, the Common Shares shall be exchanged for other
securities of the Company, each participant shall be entitled, subject to the conditions herein stated, to purchase such number of Common Shares or amount of other securities of the Company as were exchangeable for the number of Common Shares that
such participant would have been entitled to purchase except for such action, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, consolidated or exchange; and 
  
 B. In the event the Company shall issue any of its shares as
a stock dividend upon or with respect to the shares of the class which shall at the time be subject to option hereunder, each participant upon exercising such an option shall be entitled to receive (for the purchase price paid upon such exercise)
the shares as to which the participant is exercising his or her option and, in addition thereto (at no additional cost), such number of shares of the class or classes in which such stock dividend or dividends were declared or paid, and such amount
of cash in lieu of fractional shares, as is equal to the number of shares thereof and the amount of cash in lieu of fractional shares, respectively, which the participant would have received if the participant had been the holder of the shares as to
which the participant is exercising his or her option at all times between the date of the granting of such option and the date of its exercise. 
  
 Upon the happening of any of the foregoing events, the class and aggregate number of shares set forth in Article 4 hereof which are subject to options
which have been or may be 

  

 - 5 - 

 
granted under the Plan and the limitations set forth in the second paragraph of Article 5 shall also be appropriately adjusted to reflect the events
specified in paragraphs A and B above. Notwithstanding the foregoing, any adjustments made pursuant to paragraphs A or B shall be made only after the Committee, based on advice of counsel for the Company, determines whether such adjustments would
constitute a “modification” (as that term is defined in Section 424 of the Code). If the Committee determines that such adjustments would constitute a modification, or that such change will constitute a change requiring shareholder
approval, it may refrain from making such adjustments. 
  
 If the
Company is to be consolidated with or acquired by another entity in a merger, a sale of all or substantially all of the Company’s assets or otherwise (an “Acquisition”), the Committee or the board of directors of any entity assuming
the obligations of the Company hereunder (the “Successor Board”) shall, with respect to options then outstanding under the Plan, either (i) make appropriate provision for the continuation of such options by arranging for the substitution
on an equitable basis for the shares then subject to such options either (a) the consideration payable with respect to the outstanding Common Shares in connection with the Acquisition, (b) shares of the successor corporation, or a parent or
subsidiary of such corporation, or (c) such other securities as the Successor Board deems appropriate, the fair market value of which shall not materially exceed the fair market value of the Common Shares subject to such options immediately
preceding the Acquisition; or (ii) terminate each participant’s options in exchange for a cash payment equal to the excess of (a) the fair market value on the date of the Acquisition, of the number of Common Shares that the participant’s
accumulated payroll deductions as of the date of the Acquisition could purchase, at an option price determined with reference only to the first business day of the applicable Purchase Period and subject to Code Section 423(b)(8) and fractional-share
limitations on the amount of shares a participant would be entitled to purchase, over (b) the result of multiplying such number of shares by such option price. 
  

The Committee or Successor Board shall determine the adjustments to be made under this Article 12, and its determination shall be conclusive.

  
 Article 13 - No Transfer or Assignment of Employee’s Rights

  
 An option granted under the Plan or a
participant’s right under the Plan may not be pledged, assigned, encumbered or otherwise transferred for any reason, except by will or laws of descent and distribution, and may be exercised, during the participant’s lifetime, only by the
participant. Any such attempt will be deemed to be a election by the participant to withdraw from the Plan in accordance with Article 10. 
  
 Article 14 - Termination of Employee’s Rights 
  
 Whenever a participant ceases to be an eligible employee because of retirement, voluntary or involuntary termination, resignation, layoff, discharge,
death or for any other reason, his or her rights under the Plan shall immediately terminate, and the Company shall promptly refund to the participant or his or her personal representative, without interest, the entire balance of his or her payroll
deduction account under the Plan. Notwithstanding the 

  

 - 6 - 

 
foregoing, eligible employment shall be treated as continuing intact while a participant is on sick leave or other bona fide leave of absence, for up to 90
days, or for so long as the participant’s right to re-employment is guaranteed either by statute or by contract, if longer than 90 days. 
  
 This Plan does not, directly or indirectly, create any right for the benefit of any employee or class of employees to preferentially purchase any Common
Shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company, and it shall not be deemed to interfere in any way with the Company’s right to terminate, or otherwise
modify, an employee’s employment at any time. 
  
 Article 15 -
Termination and Amendments to Plan 
  
 Unless terminated
sooner as provided below, the Plan shall terminate on January 1, 2015. The Plan may be terminated at any time by the Company’s Board of Directors but such termination shall not affect options then outstanding under the Plan. It will terminate
in any case when all or substantially all of the unissued Common Shares reserved for the purposes of the Plan have been purchased. If at any time Common Shares reserved for the purpose of the Plan remain available for purchase but not in sufficient
number to satisfy all then unfilled purchase requirements, the available shares shall be allocated pro rata among participants in proportion to the amount of payroll deductions accumulated on behalf of each participant that would otherwise be
used to purchase Common Shares, and the Plan shall terminate. Upon such termination or any other termination of the Plan, all payroll deductions not used to purchase Common Shares will be refunded, without interest. 
  
 The Committee or the Board of Directors may from time to time adopt
amendments to the Plan provided that, without the approval of the shareholders of the Company, no amendment may (i) increase the number of shares that may be issued under the Plan; (ii) decrease the percentage of the Average Market Price used to
calculate the Option Price per Common Share for each Purchase Period pursuant to Article 5; (iii) change the class of employees eligible to receive options under the Plan, if such action would be treated as the adoption of a new plan for purposes of
Section 423(b) of the Code; (iv) cause Rule 16b-3 under the Securities Exchange Act of 1934 to become inapplicable to the Plan; or (v) be made if shareholder approval is required under any applicable law or regulation. 
  
 In addition, any modification or amendment to the Plan will be subject to the
prior approval of the Toronto Stock Exchange (the “TSX”) to the extent that the Common Shares are listed on the TSX at the time of such proposed termination, modification or amendment. 
  
 Article 16 - Limits on Sale of Shares Purchased under the Plan 
  
 The Plan is intended to provide Common Shares for investment and not for
resale. The Company does not, however, intend to restrict or influence any employee in the conduct of his or her own affairs. An employee may, therefore, sell Common Shares purchased under the Plan at any time the employee chooses, subject to
compliance with any applicable federal, state and provincial securities laws and regulations, subject to any restrictions imposed under Article 21 to ensure that tax withholding obligations are satisfied; subject to compliance with the terms of the

  

 - 7 - 

 
Company’s Insider Trading Policy; and subject to any limitations imposed by the Board of Directors with respect to any purchases made to such
participants after notice of any such hold requirement is imposed. THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE OF THE COMMON SHARES. 
  
 Article 17 - Participating Subsidiaries 
  
 The term “participating subsidiary” shall mean any present or future subsidiary of the Company, as that term is
defined in Section 424(f) of the Code, which is designated from time to time by the Board of Directors to participate in the Plan. The Board of Directors shall have the power to make such designation before or after the Plan is approved by the
shareholders. 
  
 Article 18 - Optionees Not Shareholders

  
 Neither the granting of an option to an employee nor
the deductions from his or her pay shall constitute such employee a shareholder of the shares covered by an option until such shares have been actually purchased by the employee. Notwithstanding the foregoing, the Company shall deliver to each
participant under this Plan who does not otherwise receive such materials (a) a copy of the Company’s annual financial statements, together with management’s discussion and analysis of financial condition and results of operations for the
fiscal year, and (b) a copy of all reports, proxy statements and other communications distributed to the Company’s security holders generally. 
  
 Article 19 - Application of Funds 
  
 The proceeds received by the Company from the sale of Common Shares pursuant to options granted under the Plan will be used for general corporate
purposes. 
  
 Article 20 - Notice to Company of Disqualifying Disposition

  
 By electing to participate in the Plan, each United
States of America resident agrees to notify the Company in writing immediately after the participant transfers Common Shares acquired under the Plan, if such transfer occurs within two years after the first business day of the Purchase Period in
which such Common Shares was acquired. Each participant further agrees to provide any information about such a transfer as may be requested by the Company or any subsidiary corporation in order to assist it in complying with the tax laws. Such
dispositions generally are treated as “disqualifying dispositions” under Sections 421 and 424 of the Code, which have certain tax consequences to participants and to the Company and its participating subsidiaries. 
  
 Article 21 - Withholding of Additional Taxes 
  
 By electing to participate in the Plan, each participant acknowledges that
the Company and its participating subsidiaries are required to withhold taxes with respect to the amounts deducted from the participant’s compensation and accumulated for the benefit of the participant under the Plan, and each participant
agrees that the Company and its participating subsidiaries 

  

 - 8 - 

 
may deduct additional amounts from the participant’s compensation, when amounts are added to the participant’s account, used to purchase Common
Shares or refunded, in order to satisfy such withholding obligations. Each participant further acknowledges that when Common Shares are purchased under the Plan the Company and its participating subsidiaries may be required to withhold taxes with
respect to all or a portion of the difference between the fair market value of the Common Shares purchased and their purchase price and any other taxable benefit arising from participation in the Plan, and each participant agrees that such taxes may
be withheld from compensation otherwise payable to such participant. It is intended that tax withholding will be accomplished in such a manner that the full amount of payroll deductions elected by the participant under Article 7 will be used to
purchase the Common Shares. However, if amounts sufficient to satisfy applicable tax withholding obligations have not been withheld from compensation otherwise payable to any participant, then, notwithstanding any other provision of the Plan, the
Company may withhold such taxes from the participant’s accumulated payroll deductions and apply the net amount to the purchase of Common Shares, unless the participant pays to the Company, prior to the exercise date, an amount sufficient to
satisfy such withholding obligations. Each participant further acknowledges that the Company and its participating subsidiaries may be required to withhold taxes in connection with the disposition of Common Shares acquired under the Plan and agrees
that the Company or any participating subsidiary may take whatever action it considers appropriate to satisfy such withholding requirements, including deducting from compensation otherwise payable to such participant an amount sufficient to satisfy
such withholding requirements or conditioning any disposition of Common Shares by the participant upon the payment to the Company or such subsidiary of an amount sufficient to satisfy such withholding requirements. For purposes of this Article 21,
“taxes” include all remuneration-related deductions, withholdings and contributions required by any governmental authority. 
  
 Article 22 - Governmental Regulations 
  
 The Company’s obligation to sell and deliver Common Shares under the Plan is subject to the approval of any governmental authority required in
connection with the authorization, issuance or sale of such shares. 
  
 Government regulations and stock exchange requirements may impose reporting or other obligations on the Company with respect to the Plan. For example, the Company may be required to disclose the names of participants and the number of
Common Shares acquired under the Plan, or identify Common Shares issued under the Plan on its ownership records and send tax information statements to employees and former employees who transfer title to such Common Shares. 
  
 Article 23 - Governing Law 
  
 The validity and construction of the Plan shall be governed by the laws of
Ontario, without giving effect to the principles of conflicts of law thereof. 
  

 - 9 - 

 Article 24 - Approval of Board of Directors and Shareholders of the Company 
  
 This Plan shall be effective January 1, 2005, subject to approval by the
holders of a majority of the Common Shares of the Company present or represented by proxy at the first annual meeting of the shareholders of the Company held after the date on which the Plan is adopted by the Board of Directors of the Company. This
Plan shall be subject to approval by the shareholders of the Company in a manner that complies with Section 423(b)(2) of the Code and applicable Canadian law. If such approvals do not occur prior to the end of the first Purchase Period under the
Plan, this Plan and all rights of participants under the Plan shall terminate, and all payroll deductions of participants accumulated under the Plan will be promptly returned to the participants. 
  
 Article 25 - Miscellaneous 
  
 All references to currency herein are to US funds unless otherwise
indicated. 
  

 - 10 -

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