Document:

cgc-ex1012_2931.htm

 

Exhibit 10.12

 

 

 

 

March 13, 2019

 

Tom Stewart

Via Email

 

RE:Executive Employment Agreement

 

Dear Tom:

We are pleased to make an offer of full-time employment to you pursuant to the terms and conditions contained within this employment agreement (the “Agreement”).  Your initial position will be VP, Chief Accounting Officer, reporting to the Executive Vice President, Finance of Canopy Growth Corp. (the “Company”). 

	
1.
	
Conditional Offer

This offer of employment is conditional upon completion, to the Company’s satisfaction, of the following background checks:

 

	
 
	
•
	
Criminal Background Check

	
 
	
•
	
Obtaining a valid work permit

 

You agree to sign and return any forms or consents and take any steps necessary for the Company to conduct the above-noted background checks as required by the Company.  You also agree that the Company may use the services of a third-party background checking firm to conduct some or all of these background checks, and that the Company may provide your personal information, including any forms and consents, to the background checking firm for this purpose.

 

You also agree that this offer of employment is conditional upon the Company being satisfied, in its discretion, with the results of the background checks.  If the Company is not satisfied, we regret that you will not become an employee of the Company.  You agree that in the event that you do not become an employee of the Company, you will have no claims against the Company arising out of the Company’s decision or the checks referenced herein.

	
2.
	
Duties and Responsibilities 

Your primary duties are set out in the job description attached to this agreement as Schedule “A”. You agree to perform the duties of your position diligently and to the best of your ability. We may need to make reasonable changes to these duties as necessary, to achieve our organizational objectives and you agree to accept those changes provided that reasonable notice of those changes is provided to you in advance. 

 

 

	
3.
	
Effective Date

You will begin working for the Company on April 8, 2019 or such other date that may be mutually agreed between you and the Company.

	
4.
	
Location of Work

You will be working primarily at our Tweed location, located at 555 Legget Drive, Kanata, ON.  You may be required, on one or more occasions, to travel to other Company facilities located throughout Canada.

	
5.
	
Policies

It will be a condition of your employment with the Company that you adhere to all Company rules and policies. The Company reserves the right to revise, revoke, or introduce new rules and policies, as the Company may deem necessary from time to time, and you will also be required to abide by any changes in the rules and policies, once they come into effect.

	
6.
	
Compensation and Benefits

You will be paid two hundred and fifty thousand dollars ($250,000.00) CAD per year subject to statutory and benefits deductions.

 

In addition to your base salary, you are entitled to be considered for a discretionary annual performance bonus of no more than 25% of base salary.

 

You are further entitled to a one-time signing bonus of $15,000. Payable on the first payroll after your start date.

 

The Company agrees to pay for reasonable costs incurred in connection with your legal immigration to Canada for you and your direct family. 

 

The Company will indemnify you with respect to any Canadian statutory deductions, e.g. Canadian income tax, Employment Insurance premiums, and Canada Pension Plan premiums, which are not otherwise rebated or credited to you by a taxing agency, e.g. the CRA or IRS, provided that you demonstrate a good-faith effort to obtain such rebates and/or credits.

 

You will be entitled to apply for the health and insurance benefits, if any, offered to all eligible employees on your first day of employment.  The terms and carrier of the Company’s health and insurance benefits are subject to change from time to time, at the Company’s sole discretion.

 

In addition to your enrollment in such benefits plan, the Company agrees to reimburse you for COBRA payments related to benefit continuation post-employment with Constellation.  This reimbursement will continue until the end of July, 2019.

 

 

 

You will be eligible to participate in Canopy Growth’s omnibus option plan, as approved by the Board and as amended from time to time (the “Stock Option Plan”).  The vesting and exercise of stock options (“options”) is governed by the Omnibus Plan and related documentation except as modified by the terms of this agreement.  Please note that options will not vest during any period of notice or pay in lieu of notice in connection with the resignation of your employment or termination of employment without cause.  The termination date for the purpose of your entitlement in respect of any options that you are granted by the Board will be the date that either you or Employer provide the other with notice of resignation or termination of employment.

 

The President of the Company shall make a proposal to the Company’s Board of Directors, at the next available Board Meeting at which options may be granted, that you become eligible to participate in Canopy Growth’s Omnibus Incentive Plan, as approved by the Board and as amended from time to time (the “Stock Option Plan”). The President shall propose that you be eligible to be granted 82,500 options.

 

The Company will pay you an advance of twenty thousand dollars (C$20,000) in order to help defray some of the initial moving costs. In addition, the Company will pay the balance of the reasonable costs of relocation once an accounting is complete. These costs of relocation will be paid directly to the international moving company / companies retained to assist with your relocation.

	
7.
	
Vacation Entitlement

You will be entitled to take no less than two (2) weeks, but no more than four (4) weeks of paid vacation time per year. Such vacation time is to be scheduled with the approval of your supervisor or manager and is subject to business requirements.

 

Any vacation time that you take in any given year shall count first towards your two-week statutory allowance and then towards any additional vacation time you are entitled to under our policy. You may carry-over a maximum of ten (10) days of vacation time with your supervisor or manager’s written approval.

 

You agree that if you have received vacation pay before it is earned, then the Company may deduct the applicable amount from any payments owing to you when your employment ends.

 

 

	
8.
	
End of Employment

Although it is difficult to contemplate ending our relationship when it is just beginning, it is mutually beneficial to determine our respective obligations ahead of time. Accordingly, your employment may cease under any of the following circumstances:

 

	
 
	
i)
	
Resignation

You may resign from your employment by giving us not less four (4) weeks’ written notice. If we do not require you to report to work during the resignation period, we will continue your salary to the end of the two (2) week period. 

 

	
 
	
ii)
	
Termination Without Cause 

During the first three months of your employment, the Company may, in its absolute discretion, terminate your employment, for any reason not prohibited by statute without notice or cause.

 

After the first three months of your employment, if the Company decides to terminate your employment for reasons other than just cause, then it may do so, for any reason not prohibited by statute, by providing you with the following:

 

	
 
	
(a)
	
The greater of:

	
 
	
i.
	
Twenty-six weeks’ notice or payment of Base Salary in lieu of such notice; and

	
 
	
ii.
	
the minimum amount of notice or pay in lieu of notice as is required to be provided to you pursuant to the provisions of Ontario Employment Standards Act, 2000;

	
 
	
(b)
	
Any statutory severance pay that may be required to be provided to you pursuant to the provisions of the Employment Standards Act, 2000; and

	
 
	
(c)
	
The continuation of any statutorily prescribed benefits for the minimum amount of time prescribed by the provisions of the Employment Standards Act, 2000.

The Employee understand and agrees that as a condition of receiving any payments pursuant to the above paragraph 9(ii)(a) that exceed the statutory entitlements provided by the ESA, the Employee will be required to execute a release in favor of the Company, as well as immediately comply with section 7 of the Intellectual Property and Confidential Information Agreement.  The Employee also understands and agrees that the Employee shall be obligated to use all reasonable efforts to mitigate any and all damages suffered as a result of termination, with all remuneration received a result of such mitigation forming a credit to those payments that are due by the Company to the Employee pursuant to paragraph 9(ii)(a), which are in excess of the statutory entitlements provided by the ESA.

 

 

 

If you are then participating in any incentive compensation plan/program, then incentive compensation (if any) owing to you will be calculated and paid out in the usual manner and at the usual time in accordance with the terms of the applicable plan/program then in effect.  

 

Notwithstanding anything in this agreement, the Company guarantees that you will at all times receive your minimum entitlements under the governing employment standards legislation in force at the time of your termination from employment.

 

Any payments made pursuant to the above provisions are in full satisfaction of any amounts owing to you including statutory entitlements and common law damages in any way related to your employment.

 

The Company also reserves the right to make fundamental changes to your employment, including changes to your duties and compensation, upon giving you notice in accordance with this section.

 

You specifically acknowledge that by entering into this agreement you are hereby forfeiting your right to claim common law notice of termination, which may be greater than the amount of notice required to be provided to you pursuant to the provisions of the Ontario Employment Standards Act, 2000, or compensation of any nature, including but not limited to compensation for loss of benefits coverage, including disability benefits, incentive payments, or any other benefit, whether under contract, common law or otherwise. 

 

These termination provisions will apply throughout your employment with the Company regardless of any changes in your salary, benefits, and position title or job responsibilities.

 

	
 
	
iii)
	
Termination For Cause 

We may terminate your employment for just cause at any time without notice, pay in lieu of notice, severance pay, or other liability. For the purposes of this agreement, just cause includes, but is not limited to:

	
 
	
•
	
a material breach of this agreement or our employment policies;

	
 
	
•
	
unacceptable performance standards;

	
 
	
•
	
theft, dishonesty or falsifying records, including providing false information as part of your application for employment;

	
 
	
•
	
intentional destruction, improper use or abuse of company property;

	
 
	
•
	
violence in the workplace;

	
 
	
•
	
obscene conduct at our premises property or during company-related functions at other locations;

	
 
	
•
	
harassment of your co-workers, supervisors, managers, customers, suppliers or other individuals associated with the Company;

	
 
	
•
	
insubordination or willful refusal to take directions;

	
 
	
•
	
intoxication or impairment in the workplace;

 

 

	
 
	
•
	
repeated, unwarranted lateness, absenteeism or failure to report for work; or

	
 
	
•
	
personal conduct that prejudices the Company’s reputation, services or morale. 

	
9.
	
Protection of Business Interests

Like most organizations, the Company must protect itself from unfair competition. Therefore, we have established the following restrictions to protect our valid business interests. You understand these provisions and agree that they are reasonable in light of all of the circumstances, including the availability to you of employment in areas and fields that are not restricted by this agreement.

 

	
(a)
	
Confidentiality

In the course of your employment, you will receive confidential information about the Company and its clients.  For the purposes of this agreement, confidential information includes but is not limited to:

	
 
	
•
	
processes, research and development information;

	
 
	
•
	
trade secrets;

	
 
	
•
	
information about the Company’s operations, including products and services offered;

	
 
	
•
	
financial information, such as pricing and rate information;

	
 
	
•
	
documents, records or other information concerning the Company’s sales or marketing strategies;

	
 
	
•
	
client lists, records and information including lists of present and prospective clients and related information;

	
 
	
•
	
information relating to employees, vendors and contractors of the Company including employment status, vendor/contractor status, personnel records, performance information, compensation information and job history;

	
 
	
•
	
privileged information, including advice received from professional advisors such as legal counsel and financial advisors; and

	
 
	
•
	
information contained in the Company’s manuals, training materials, plans, drawings, designs, specifications and other documents and records belonging to the Company, even if such information has not been labeled or identified as confidential.

 

Information will not be considered confidential for the purposes of this agreement if:

	
 
	
i)
	
it was rightfully in your possession prior to your employment with the Company;

	
 
	
ii)
	
it was publicly available through legitimate means; or

	
 
	
iii)
	
it was received by you in a non-confidential manner from a third party that was not under obligation to the Company to maintain such information in confidence.

 

 

 

You understand that disclosure of confidential information would be highly detrimental to the Company’s best interests and agree:

	
 
	
i)
	
to take precautions to protect and maintain the Company’s confidential information;

	
 
	
ii)
	
to only release confidential information to those authorized to receive it, and then only on a need-to-know basis;

	
 
	
iii)
	
not to disclose, publish or disseminate to any unauthorized person, at any time either during your employment or after it ends, confidential information;

	
 
	
iv)
	
not to remove any confidential information from the Company’s premises without our express permission

	
 
	
v)
	
not to make improper use, either directly or indirectly, of confidential information; and

	
 
	
vi)
	
to safeguard against unintentionally disclosing confidential information (e.g., by not discussing confidential information in public or on a cell phone and by not working with confidential information on a laptop in public, or transmitting such information by unsecured means).

 

When your employment ends, you must immediately return all materials or property belonging to the Company. You agree not to retain, reproduce or use any confidential or proprietary information or property belonging to the Company.  A detailed Intellectual Property and Confidentiality Agreement is attached (Schedule “B”) for your review and signature.

 

	
(b)
	
Non-Solicitation

In recognition of the access you will have to our processes, employees and clients, you agree that during your employment and for a period of one year after it ends, you will not, either directly or indirectly, communicate with the Company’s employees or clients for the purpose of inducing them to end their relationship with the Company.

 

	
(c)
	
Non-Competition

In light of the nature of your position and the close relationship you will have with our clients, it is important for us to limit interference with our business. Therefore, during your employment and for twelve (12) months thereafter you will not on your own behalf nor shall you work at, work for, be employed by, provide services to, engage with, or assist in any way, whether or not for remuneration, recognition, or reward any person, corporation, or organization, whether or not such organization is operated for profit, that sells or intends to sell cannabis, including hemp, and/or provides cannabis-related services or products, in any jurisdiction in which CGC or its subsidiaries has operations. Without limiting the generality of the foregoing, as of the date hereof such jurisdictions include Canada, USA, Brazil, Colombia, Czech Republic, Germany, United Kingdom, Australia, South Africa, Lesotho, Poland and Italy.

 

It is not our intention to unduly restrict your employment prospects. Accordingly, the Company may agree to waive this provision if we are able to establish appropriate safeguards to minimize the impact any proposed employment with a competitor will have on the Company’s business interests. Any such waiver must be in writing and signed by an authorized representative of the Company.

 

 

 

	
(d)
	
Conflict of Interest

To enable you to meet the demands of your position, we require your full attention. Accordingly, while you are employed with us, you must devote yourself exclusively to the business of the Company. You agree that you will not engage in any other business activity or employment during your employment, without the Company’s prior written approval. The Company agrees not to withhold such approval unreasonably.

 

You confirm that your employment with us does not violate any agreement or understanding to which you are currently bound including any existing non-competition, non-solicitation or confidentiality agreements. You further agree to indemnify and save harmless the Company against all losses, costs, damages, expenses, penalties, fines and other amounts for which it may be found liable at law with respect to your breach of any such agreement.

	
10.
	
General

This agreement constitutes our entire employment agreement and supersedes any previous written or verbal agreements between us. If any term of this agreement is found to be invalid or unenforceable, in whole or in part, the validity or enforceability of any other provision will not be affected.

 

This agreement will continue to govern our employment relationship regardless of any changes to your employment including, but not limited to, changes to your position, location of employment, hours of work, compensation and benefits.

 

Any modifications to this agreement must be in writing and signed by both of us. No waiver of a breach of any term of this agreement is binding unless it is in writing and signed by the party waiving it. Unless otherwise specified, the waiver will be limited to the specific breach waived.

 

In the event that any provision or part of this Agreement is deemed void or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and remain in full force and effect.

 

This agreement is governed by the laws of the province of Ontario. References in this agreement to the Employment Standards Act, 2000, SO 2000, c 41 include any amendments or successor legislation.

 

[Balance of Page Left Blank. Signature Page Follows.]

 

 

 

We encourage you to review this offer of employment with legal counsel but at your own expense. In order to provide you with appropriate time, please return an executed copy of this employment package by March 18, 2019.  If we have not received the signed documents (or we have agreed in writing to extend your offer of employment to another date in the future), this offer will become null and void.

 

	
/s/ Tim Saunders
	
 
	
March 13, 2018
	
 

	
 
	
 
	
 

	
Canopy Growth Corp.
	
 
	
Dated
	
 

 

I have had sufficient time to review this agreement and have been advised to review it with a lawyer. If I did not do so, it is because I understood the terms of the Employer’s offer and did not feel that I needed legal advice. I understand and accept the terms of this agreement and am signing it voluntarily.

 

	
/s/ Tom Stewart
	
 
	
April 8, 2019
	
 

	
 
	
 
	
 

	
Tom Stewart
	
 
	
Dated
	
 

 

 

 

SCHEDULE “A”

JOB DESCRIPTION

 

 

Position:VP, Chief Accounting Officer 

 

Responsibilities

 

	
 
	
•
	
Supervise the complete closing process and through to the preparation of timely and accurate financial reports and analysis of performance, variance and cash flow to the strictest standards of accounting and the law governing more than 35 legal entities located in different jurisdiction (12 countries and 5 continents). 

	
 
	
•
	
Ensure all financial and accounting activity is ICFR and SOX compliant. 

	
 
	
•
	
Responsible for all external financial reporting and public fillings. Effectively manage complex accounting issues and unusual transactions. Oversee the coordination of the preparation for external audits and quarterly reviews by the auditors. 

	
 
	
•
	
Ensure the fiscal integrity of the business through enhancement and management of accounting systems and controls. Continually strengthen the control environment. Direct and control financial and accounting processes within the Company ensuring all statutory, legal and Company polices are met. 

	
 
	
•
	
Monitor performance monthly and provide in-depth and timely management commentary on financial results (MD&A). 

	
 
	
•
	
Ensure proper maintenance of accounting records and documentation in compliance with statutory requirements and Company policies. 

	
 
	
•
	
Remain current of new regulations, through participating in professional organizations and educational opportunities, reading of professional publications, and maintaining personal and professional networks. 

	
 
	
•
	
Recruit and build a high performing finance team by providing strategic direction

	
 
	
•
	
Carry out annual performance appraisals of all direct reports and ensure staff have clear roles and objectives. Maintain a succession plan for key individuals.

	
 
	
•
	
Monitor all direct reports in order to ensure they are adhering to all policies and procedures set forth by the Company. 

	
 
	
•
	
Provide support for mergers and acquisitions, e.g. valuation, due diligence and integration. 

	
 
	
•
	
Act proactively in regards to debt management, FX sensitivities and financial risks management. 

	
 
	
•
	
Provide support for investor and stakeholder relations. 

	
 
	
•
	
Actively develop and maintain strong relationships with the geographically dispersed team. 

	
 
	
•
	
Maintain strong relationships with external auditor and advisors to facilitate a smooth and productive audit process.

	
 
	
•
	
Other duties as assigned

 

 

 

SCHEDULE “B”

INTELLECTUAL PROPERTY AND 

CONFIDENTIAL INFORMATION AGREEMENT

This Intellectual Property and Confidential Information Agreement (the “Agreement”) is entered into between Canopy Growth Corp. (the “Company”) and Employee (the “Employee”).  In the event this Agreement has been entered into with an independent contractor or sub-contractor, the independent contractor or sub-contractor as the case may be shall be referred to, for the purposes of this Agreement only and for simplicity, as an Employee. Any references to an independent contractor or a sub-contractor as an employee in this Agreement are not admissions that the Company and the independent contractor or sub-contractor are engaged in an employment relationship.   

Whereas the Company is offering the Employee employment or continued employment and has an interest in protecting its confidential information and other proprietary information and related rights; 

And whereas the Employee recognizes the importance of protecting the Company’s confidential information and other proprietary information and related rights is a fundamental term of the Employee’s employment; 

NOW THEREFORE, in consideration of the Company hiring, promoting or continuing to employ the Employee and/or for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by the parties), the Employee and the Company hereby agree as follows:

	
1.
	
Definitions

 

“Confidential Information” means all of the materials and information (whether or not reduced to writing and whether or not patentable or protected by copyright) provided by the Company to the Employee, or which is available to the Employee during the course of the Employee’s employment, including, without limitation the following:

 

	
 
	
•
	
information regarding the Company’s business operations, Developments (as defined below), methods and practices, recruiting and training policies, including marketing strategies, product plans (including unannounced products), product pricing, margins, hourly rates, per diems and information regarding the financial affairs of the Company;

	
 
	
•
	
customer lists, quotations or proposals given to customers, requirements of specific customers, and the names of the suppliers to the Company and the nature of the Company’s relationships with these clients and suppliers;

	
 
	
•
	
information regarding the business operations, methods and practices, including marketing strategies, product plans (including unannounced products), product pricing, margins, hourly rates and financial affairs of the Company’s stakeholders;

 

 

	
 
	
•
	
technical and business information of or regarding the clients, customers or stakeholders of the Company, obtained in order to enable or assist the Company in providing such clients, customers or stakeholders with products and services, including information regarding the business operations, methods and practices and product plans of such clients, customers or stakeholders;

	
 
	
•
	
any other trade secret or confidential or proprietary information received by the Company from third parties and in the possession or control of the Company; and 

	
 
	
•
	
any other materials or information related to the Company’s business which are not generally known to others, regardless of whether such information is in paper or electronic format or any other format;

 

provided that, Confidential Information shall not include information which: 

 

	
 
	
a)
	
is generally known or in the public domain at the time of disclosure;

	
 
	
b)
	
though originally Confidential Information becomes generally available to the public through no fault of the Employee, as of the date of its becoming part of the public knowledge; or

	
 
	
c)
	
is required to be disclosed by any law, regulation, governmental body, or authority or by court Order provided that before disclosure is made, notice of the requirement is provided to the Company, and to the extent possible in the circumstances, the Company is afforded an opportunity to dispute the requirement.

 

The absence of any notice indicating confidentiality on any material will not imply that same is not Confidential Information.

 

“Developments” include, without limitation any methods, processes, procedures, systems, inventions (whether patentable or not), devices, discoveries, concepts, know-how, data, databases, technology, products, software (in executable and source code formats), templates, documentation, specifications, compilations, designs, reports, trade-marks, and any enhancements, modifications, or additions to the foregoing or to any products owned, marketed or used by the Company which relate, directly or indirectly, to the Company’s present or reasonably foreseeable business and which are developed, created, generated or reduced to practice by the Employee, alone or jointly with others, during the Employee’s employment, whether during or after working hours and whether or not resulting from the use of the premises or property of the Company.

 

	
2.
	
Non-Disclosure of Confidential Information

At all times during and subsequent to the termination of the Employee’s employment, the Employee shall keep in strictest confidence and trust the Confidential Information, the Employee shall take all necessary precautions against unauthorized disclosure of the Confidential Information, and the Employee shall not directly or indirectly disclose, allow access to, transmit or transfer the Confidential Information to a third party, nor shall the Employee copy or reproduce the Confidential Information except as may be reasonably required for the Employee to perform the Employee’s duties for the Company.

 

 

 

	
3.
	
Restricted Use of Confidential Information

At all times during and subsequent to the termination or cessation of the Employee’s employment, the Employee shall not use the Confidential Information in any manner except as reasonably required for the Employee to perform the Employee’s duties for the Company.

 

Upon the request of the Company and in any event upon the termination or cessation of the Employee’s employment, the Employee shall immediately return to the Company all materials, including all copies in whatever form, containing the Confidential Information which are in the Employee’s possession or under the Employee’s control.

 

	
4.
	
Ownership of Confidential Information and Developments

The Employee acknowledges and agrees that the Employee shall not acquire any right, title or interest in or to the Confidential Information.

 

The Employee agrees to make full disclosure to the Company of each Development promptly after its creation.

 

With the sole exception of any intellectual property owned by (and not merely licensed to) the Employee prior to the making of this Agreement, which is also enumerated by the Employee in the attached Schedule “A” prior to the execution of this Agreement, the Employee hereby assigns and transfers to the Company, and agrees that the Company shall be the exclusive owner of, all of the Employee’s right, title and interest to each Development and any enhancement, modification, or addition to any of the intellectual property enumerated in Schedule “A” or any of the intellectual property that is marketed or used by the Company which relate, directly or indirectly, to the Company’s present or reasonably foreseeable business and which are developed, created, generated or reduced to practice by the Employee, alone or jointly with others, during the Employee’s employment, whether during or after working hours and whether or not resulting from the use of the premises or property of the Company, throughout the world, including all trade secrets, patent rights, copyrights and all other intellectual property rights therein.

 

The Employee further agrees to cooperate fully at all times during and subsequent to the Employee’s Employment with respect to signing further documents and doing such acts and other things reasonably requested by the Company to confirm such transfer of ownership of rights, including intellectual property rights, effective at or after the time the Development is created and to obtain patents or copyrights or the like covering the Developments. The Employee agrees that the Company, its assignees and their licensees are not required to designate the Employee as the author of any Developments. The Employee agrees that the obligations in this subparagraph (c) shall continue beyond the termination of the Employee’s employment with respect to Developments created during the Employee’s employment.

 

The Employee acknowledges that the Company shall alone have the right to apply for, prosecute, defend and obtain Letters Patent of invention, copyright registration, industrial design registration in any and all counties of the world with respect to any such invention, discovery, development or improvement, copyright material or industrial design created.

 

 

 

The expense of applying for and obtaining the Letters Patent, copyright registration and industrial design registration referred to in this Agreement shall be borne entirely by the Company.

 

It is agreed that the Company shall not be entitled to those inventions, discoveries, developments and improvements made by the Employee prior to the time the Employee was engaged in employment by the Company; it being understood and agreed that the inventions, discoveries, developments and improvements enumerated in Schedule “A” constitute the inventions, discoveries, developments and improvements made by the Employee, and the Employee hereby acknowledges that there are no inventions, discoveries, developments and improvements made prior to the employment of the Employee by the Company and which are the property of the Employee other than those that are enumerated in Schedule “A”.

 

The Employee hereby grants a power of attorney to the Company to have the Company execute on the Employee’s behalf all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company and its successors, assigns and nominees sole and exclusive rights, title and interest in and to such Developments, and any copyrights, patents, trade-marks, industrial designs (design patents), topographies (mask work rights) or other intellectual property rights relating thereto.

 

The Employee hereby waives in whole all moral rights which the Employee may have in the Developments, including the right to the integrity of the Developments, the right to be associated with the Developments, the right to restrain or claim damages for any distortion, mutilation or other modification of the Developments, and the right to restrain use or reproduction of the Developments in any context and in connection with any product, service, cause or institution. The Employee will confirm any such waiver from time to time as requested by the Company.

 

	
5.
	
No Conflicting Obligations

The Employee acknowledges and represents to the Company that the Employee’s performance during the period of the Employee’s employment shall not breach any agreement or other obligation to keep confidential the proprietary information of any prior employer or client of the Employee or any other third party.  The Employee further acknowledges and represents that the Employee is not bound by any agreement or obligation with any third party that conflicts with any of the Employee’s obligations under this Agreement.

 

The Employee represents and agrees that the Employee will not bring to the Company and shall not use in the performance of the Employee’s work with the Company, any trade secrets, confidential information and other proprietary information of any prior employer or client of the Employee or any other third party.  The Employee represents and agrees that in the Employee’s work creating Developments the Employee will not knowingly infringe the intellectual property rights, including copyright, of any third party.

 

 

 

	
6.
	
Enforcement

The Employee acknowledges and agrees that damages may not be an adequate remedy to compensate the Company for any breach of the Employee’s obligations contained in this Agreement, and accordingly the Employee agrees that in addition to any and all other remedies available to it, the Company shall be entitled to seek relief by way of a temporary or permanent injunction to enforce the obligations contained in this Agreement.  Such relief shall be in addition to and not in lieu of any other remedies available the Company at law or in equity.

 

	
7.
	
Returning the Company Documents

The Employee agrees that upon the termination of the Employee’s employment the Employee will deliver to the Company (and will not keep in the Employee’s possession or deliver to anyone else) any and all Confidential Information and proprietary information including, without limitation, devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items belonging to the Company, together with any third party information received by the Employee. In the event of the termination of the Employee’s employment, the Employee agrees to sign and deliver to the Company the “Termination Certificate” attached hereto as Appendix “A”.  Notwithstanding the foregoing, the Employee shall be entitled to keep personal copies of (i) the Employee’s compensation records, (ii) this Agreement, and (iii) the Employee’s letter of offer.

 

	
8.
	
General

This Agreement shall be governed by and construed in accordance with the laws in force in the Province of Ontario and any laws of Canada applicable thereto.

 

If any provision of this Agreement is wholly or partially unenforceable for any reason, such unenforceable provision or part thereof shall be deemed to be omitted from this Agreement without in any way invalidating or impairing the other provisions of this Agreement.

 

The obligations herein may not be changed or modified, released or terminated, in whole or in part, except in writing signed by the President of the Company and the Employee.

 

This Agreement supersedes all previous agreements, if any, between the Company and the Employee with respect to the subject matter of this Agreement.  The Employee agrees, however, that this Agreement does not purport to set forth all of the terms and conditions of the Employee’s employment and the Employee has other obligations to the Company that are not set forth in this Agreement.

 

The rights and obligations under this Agreement shall survive the termination of the Employee’s employment and shall enure to the benefit of and shall be binding upon (i) the Employee’s heirs and personal representatives; (ii) the successors and assigns of the Employee; and (iii) the successors and assigns of the Company.

 

 

 

THE EMPLOYEE HAS READ THIS AGREEMENT, UNDERSTANDS IT, HAS HAD THE OPPORTUNITY TO OBTAIN INDEPENDENT LEGAL ADVICE IN RESPECT OF IT, AND AGREES TO ITS TERMS.  

 

The Employee acknowledges having received a fully executed copy of this Agreement.

 

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the      ___9________th day of   ______April__________________ , 2019.

 

 

	
SIGNED, SEALED AND DELIVERED in the presence of:
	
)
	
/s/ Tom Stewart

	
 
	
)
	
 

	
 
	
)
	
 

	
 
	
)
	
 

	
Witness
	
)
	
Tom Stewart

	
 
	
)
	
 

 

			
	
Canopy Growth Corp. 

	
 

	
 

	
/s/ Tim Saunders

	
By:
	
 

	
 
	
Name:
	
Tim Saunders

	
Title:
	
EVP & CFO

 

 

 

SCHEDULE “C”

ENUMERATION OF INTELLECTUAL PROPERTY OWNED BY THE EMPLOYEE 

PRIOR TO THE MAKING OF THIS AGREEMENT

 

 

Patents

 

Please list all those patents both received and applied for using the table below.

 

				
	
Description
	
Jurisdiction
	
Patent No.
	
Date Received or Applied For

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

 

If additional space is required, please tick this box � and attach additional pages as required using the format of the table shown above.

 

Licenses

 

Please describe all intellectual property, were patented, trademarked, or otherwise protected or not, licensed to third parties by you using the table below.

 

		
	
Description of License
	
Licensed To:

	
 

 
	
 

	
 

 
	
 

	
 

 
	
 

	
 

 
	
 

 

If additional space is required, please tick this box � and attach additional pages as required using the format of the table shown above.

 

 

 

SCHEDULE “C”

ENUMERATION OF INTELLECTUAL PROPERTY OWNED BY THE EMPLOYEE 

PRIOR TO THE MAKING OF THIS AGREEMENT

 

 

Copyrights, trademarks, registered trademarks, and other forms of intellectual property.

 

Please use the table below to list all other registered intellectual property owned by you prior to the making of this Agreement.

 

 

				
	
Description
	
Jurisdiction
	
Registration Number
	
Date Received 

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

	
 

 
	
 
	
 
	
 

 

If additional space is required, please tick this box � and attach additional pages as required using the format of the table shown above.

 

Acknowledgement

 

You hereby acknowledge that, the items listed in the tables above (and any attached sheets, if necessary) constitute the full and complete list of intellectual property owned by you prior to making this Agreement with Canopy Growth Corp.

 

	
Date:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Signed:
	
 
	
 
	
 

	
 
	
 
	
 
	
Tom Stewart

 

 

 

APPENDIX “A”

TO INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION AGREEMENT

Termination Certificate

	
To:
	
Canopy Growth Corp. ( the “Company”)

	
Re:
	
Intellectual Property and Confidential Information Agreement (the “Agreement”) between the Company and the undersigned employee.

This is to certify that I do not have in my possession, nor have I failed to return, nor have a transferred to any third party, any confidential or proprietary information belonging to the Company, its subsidiaries, affiliates, successors, assigns, clients, customers or stakeholders, including without limitation, devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items.  I further certify that I have complied with all the terms of the Agreement signed by me, including the reporting of any Developments, inventions and original works of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that Agreement.

I further agree that, in compliance with the Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, other original works of authorship, customer lists, business plans, financial information or other subject matter pertaining to any business of the Company or any of its clients, customers or stakeholders.

 

	
Date:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Signed:
	
 
	
 
	
 

	
 
	
 
	
 
	
Tom Stewartcgc-ex1013_2930.htm

 

Exhibit 10.13

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made as of the 21st day of September, 2018 ("Effective Date") between TWEED INC., a corporation incorporated under the laws of Ontario and having an address at 9 Shamrock Place, Ottawa, Ontario K2R 1A9 (the "Employer") and THOMAS SHIPLEY an Ontario resident with an address at 262 Emond Street, Ottawa, Ontario, KIL 7R8 (the "Employee").

WHEREAS the Employer is in the business of medical marihuana production in the City of Arnprior and surrounding area within the Province of Ontario (" Business");

WHEREAS the Employer and Employee wish to set out the terms, conditions and provisions upon which the Employee will be employed by the Employer;

NOW THEREFORE THIS AGREEMENT WITNESSES that for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

	
1.
	
Employment. The Employer hereby agrees to employ the Employee in the role of Senior Vice President, Global Quality Assurance and Chief Science Officer, and the Employee accepts such employment, all on the terms and conditions set out in this Agreement.

	
2.
	
Duties. The Employee shall perform those duties and responsibilities assigned to the Employee by the Employer from time to time.

	
3.
	
Wages. The Employee shall be paid an annual base salary of $240,000 per annum for the services to be rendered by the Employee to the Employer during the term of the Employee's employment, subject to statutory withholdings, and shall be paid by the Employer to the Employee according to the Employer' s regular payroll schedule, less all proper deductions.  You are entitled to be considered for a discretionary annual performance bonus of no more than $95,000. In addition, for greater certainty, should the Employer at any time or times pay any additional bonus, bonuses or other amount(s) to the Employee, any such payment(s) shall be gratuitous and shall not constitute any compensation due to the Employee or result in any expectation or legal obligation on the part of the Employer to make any such or similar payment(s) at any time in the future.

	
4.
	
Benefits. The Employee will be entitled to such benefits, subject to the availability of such benefits, as the Employer may from time to time make available to its employees generally. For greater clarity, such benefits may only be available to part-time employees if a minimum number of hours as determined by the benefits provider is reached.

	
5.
	
Vacation. The Employee shall be entitled to four (4) weeks of paid vacation per full calendar year. All vacation will be taken in accordance with the Employer' s vacation policy and will be taken at times which are convenient for the Employer, considering the demands of the business of the Employer and the personal plans of the Employee.

	
6.
	
Expenses. The Employee will be reimbursed for all pre-approved expenses actually and properly incurred by the Employee in the performance of the Employee's employment duties, upon receipt by the Employer of proper receipts and statements.

1

 

	
7.
	
Service. During the period in which the Employee is employed by the Employer, the Employee shall: (a) devote his or her working time and attention to the Business as may reasonably be required by the Employer; (b) use his or her best efforts to faithfully promote the interests, reputation and goodwill of the Employer; and (c) conduct himself or herself in a manner which is professional, businesslike, prudent, diligent and reasonable in the circumstances.

	
8.
	
Rules and Regulations. The Employee agrees to comply with all of the Employer's employment rules, regulations and guidelines as they may be communicated from time to time by the Employer to its employees generally, including but not limited to codes of  ethical conduct, privacy policies and internet usage policies.

	
9.
	
Information to be provided by Employee. The Employee agrees to provide the Employer proof of Employee's eligibility to work in Canada as requested by the Employer from time to time.

	
10.
	
Confidential Information. The Employee acknowledges  that during  the term  of his or her employment, he or she will have access to and become familiar with various trade secrets  and confidential information relating to the Business, the Employer and its clients including without limitation all customer information, customer lists, personnel information, marketing plans, project data, pricing data, costing data, sales information, plans, strategic information, business opportunities, financial information, technical information, systems, patents, trademarks, intellectual property, inventions , discoveries, research , development and other proprietary and confidential information used by the Employer in the operation of its Business (collectively, "Confidential Information"). All Confidential Information is and will remain the sole and exclusive property of the Employer.

	
11.
	
Non-Disclosure. The Employee agrees to keep all Confidential Information strictly confidential and agrees not to (without the Employer's prior written consent) directly or indirectly, in any manner whatsoever, disclose to any Person or use for the benefit of any Person other than the Employer, any Confidential Information. The Employee agrees not to remove any books, records or documents or make any copies thereof (whether or not confidential) from the premises of the Employer, nor make any copies thereof without the Employer's prior written consent. The obligations of the Employee as described in this section shall survive the termination of the Employee's employment for any reason and shall continue to bind the Employee for ten (10) years thereafter.

	
12.
	
Restrictive Covenants. 

	
 
	
(a)
	
Non-Solicitation. The Employee agrees that he will not (without the prior written consent of the Employer) at any time during the period in which he is employed by the Employer and for a period of twelve (12) months following the termination of that employment for any reason whatsoever (including without limitation termination by the Employer with or without cause) (the “Restricted Period”), directly or indirectly, individually or in partnership or conjunction with any Person, in any manner or capacity whatsoever, (i) solicit or attempt to solicit the services of, or entice away, any person employed by or otherwise providing services to Canopy Growth Corporation (“CGC”) or its subsidiaries, including the Employer, on a full-time, part time or contractual basis, or (b) solicit, contact or communicate with any Person who was a customer or actively pursued prospective customer of CGC or its subsidiaries (collectively, “Customer”) at any time during the Employee’s employment for the purposes of gaining the business of such Customer or providing to such Customer any goods or services similar to or competitive with those provided or offered by CGC and its subsidiaries.

2

 

	
 
	
(b)
	
Non-Competition. In light of the nature of the Employee’s position and the close relationship the Employee will have with Customers, it is important to limit interference with the business of CGC and its subsidiaries. Therefore, during the Restricted Period the Employee will not on his own behalf nor shall the Employee work at, work for, be employed by, provide services to, engage with, or assist in any way, whether or not for remuneration, recognition, or reward any person, corporation, or organization, whether or not such organization is operated for profit, that sells or intends to sell marijuana or provides marijuana-related services or products in any jurisdiction in which CGC or its subsidiaries has operations. Without limiting the generality of the foregoing, as of the date hereof such jurisdictions include Canada, USA, Brazil, Columbia, Czech Republic, Germany, United Kingdom, Australia, South Africa, Lesotho, Poland and Italy.

	
13.
	
Inventions and Patents. The Employee agrees to assign and does hereby assign to the Employer any and all developments, inventions, designs, improvements, applications and discoveries of whatever nature, patentable or not, which the Employee, alone or with others, has, makes, develops, conceives of or reduces to practice or writing during the course of fulfilling his or her duties hereunder, whether or not any of the foregoing occurs during regular  working hours, which pertain or relate to the Business of the Employer (collectively, "Intellectual Property"). All Intellectual Property shall be and remain the exclusive property of the Employer. The Employee agrees to assist the Employer, at the Employer's expense, both during the Employee's employment and after the termination thereof in obtaining intellectual property protection for any Intellectual Property and shall execute all documents and do all such things which are reasonably necessary to obtain such protection and to vest in the Employer full and exclusive title thereto and to protect the Intellectual Property against infringement by others. In performing his or her duties under this Agreement, the Employee shall not, without the prior written approval of the Employer, employ any open source software or any other tools that could lead to the public or other disclosure of Confidential Information of the Employer or a loss or diminution of any rights of the Employer in any Intellectual Property. Where and only to the extent that such approval is granted, any unavoidable corresponding disclosure of Confidential Information and/or loss or diminution of rights of the Employer in Intellectual Property shall not constitute a breach of this Agreement.

	
14.
	
Consent to Use of Personal Information. The Employee hereby consents to the collection, use, storage and disclosure of personal information by the Employer about the Employee as may be required for the following purposes (subject to the provisions of the Personal Information Protection and Electronic Documents Act (Canada), 2000, c. 5 and/or other applicable legislation): (a) for reporting purposes to any trade or professional association governing the Employer or any investigative body having authority over the Employer; (b) as required by law; (c) as required in order to obtain financing, insurance or contracts for the Employer; (d) in connection with any proposed sale of shares of the Employer or of all or substantially all of the assets of the Employer to any Person; (e) in connection with obtaining employee benefits or insurance; (f) in connection with any outsourcing of information by the Employer to a third party supplier of information processing services, including but not limited to payroll, health benefits, insurance and pension plan benefits; (g) for the internal operational purposes of the Employer; (h) and to the Employee or to any other Person with the consent of the Employee.

3

 

	
15.
	
Protection of Personal Information. The Employee agrees, with respect to any personal information about individuals that is collected, used or disclosed by the Employer ("Personal Information") and which the Employee learns of or comes in contact with in the course of his or her employment, that he or she will not, without the prior written consent of the Employer: (a) disclose or make available any Personal Information to any Person; (b) use any Personal Information for any purpose not specified by the Employer or described in the Employer's privacy policy; (c) sell, trade, barter, disclose or transfer any Personal Information to any Person. The Employee further agrees to comply with the Employer's privacy policy in respect to the collection, use, storage and disclosure of all Personal Information.

	
16.
	
Termination by Employer for Cause. The employment of the Employee may be terminated by the Employer at any time, immediately and without notice, for cause. For the purposes of this Agreement, "cause" shall mean willful misconduct, disobedience or dishonesty on the part of the Employee.

	
17.
	
Termination by Employer without Cause. The Employee’s employment may be terminated by the Employer at any time without cause upon providing the Employee with the following:

	
 
	
i.
	
A lump sum payment equal to one (1) times the Employee’s then current base salary;

	
 
	
ii.
	
continuation of all benefits for a period of one (1) year form the date of termination, or payment in lieu of same, excluding disability, accidental death and dismemberment and life insurance benefits which will end at the end of the minimum notice period required by the Employment Standards Act, 2000 (the “ESA”);

	
 
	
iii.
	
any RSU’s vesting after the date of termination shall continue to vest to the extent permitted by the plan over the one (1) year period following termination; and 

	
 
	
iv.
	
any unvested stock options held by the Employee shall continue to vest over the one (1) year following termination.

The receipt of any payments or other benefits pursuant to this Section 17 will be subject to (1) the Employee signing a full and final release in favour of the Employer and its related parties (the “Release”) and (2) the Employee executing any documents necessary to resign as a director and/or officer of the Employer and its affiliates. No payments or other benefits will be paid or provided until the Release is executed. 

The Employee will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any earnings that the Employee may receive from any other source reduce such payment.

In the event that the above terms (or any other term of this Agreement) does not meet or exceed the minimum requirements of the ESA, to the extent of such conflict the minimum provisions of the ESA shall apply and the Employer shall instead provide the Employee with such combination of notice, pay in lieu of such notice at the Employer’s option, severance pay and other benefits and entitlements as may be required to meet the minimum requirements under the ESA and no more.

4

 

17A. Change of Control. In this Agreement the term “Change of Control” shall mean:

	
 
	
(a)
	
Any person or related group of persons acquires possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the Employer or CGC, whether through the ability to exercise voting power, by contract, or otherwise. Without limiting the foregoing, each of the following shall be deemed to be a “Change of Control”: (A) a person or related group of persons acquires the ability to nominate a majority of the directors on the board of directors of the Employer or CGC through contract or otherwise; or (B) a person or related group of persons acquires securities of the Employer or CBC to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are beneficially owned by that person or related group of persons; or

	
 
	
(b)
	
the sale or disposition of all or substantially all of the assets of the Employer or CGC to a non-affiliated party; or 

	
 
	
(c)
	
the merger, amalgamation, arrangement or consolidation (or similar transaction) of the Employer or CGC with or into any other non-affiliated corporation in which the shareholders of the Employer or CGC, as applicable, prior to such transaction do not, in the aggregate, hold securities of the Employer or CGC, as applicable, to which are attached more than 50% of the votes that may be cast to elect directors of the corporation.

If at any time during the term of this Agreement the Employer or CGC undergoes a Change of Control and either: 

	
 
	
(a)
	
the Employee’s employment is terminated by the Employer for any reason other than for just cause within one (1)year following such Change of Control; or

	
 
	
(b)
	
the Employee resigns his employment with the Employer within sixty (60) days following either of the following events:

	
 
	
(i)
	
the Employee is demoted or the Employee’s responsibilities are materially reduced without the Employee’s consent, in either case within the one (1)year following the date of such Change of Control; or

	
 
	
(ii)
	
the Employee’s overall target rate of compensation is reduced within the one (1)year following the date of such Change of Control;

the Employee shall be entitled to receive the payments and benefits set out in Section 17 as though the Employee’s employment had been terminated by the Employer without cause in accordance with such Section 17 and any RSUs and unvested stock options held by the Employee as of the date of termination shall be deemed to be fully vested as of the date of termination and shall be exercisable thereafter in accordance with the terms of the CGC omnibus incentive plan. For greater certainty the execution of a Release and other documents required by Section 17 shall be a pre-condition to such payments.

For greater certainty, a determination by the Employer that the Employee will not be paid some or all of a discretionary bonus shall not be considered to be a reduction in the Employee’s overall target rate of compensation for the purposes of the foregoing.

5

 

For greater certainty, the terms of this Section 17A shall apply to each and every event that occurs during the term of this Agreement that meets the definition of “Change of Control”.

	
18.
	
Change of Terms of Employment. The parties agree that the Employer reserves the right to alter the fundamental terms of the Employee's employment upon providing the Employee with the minimum written notice required at that time under applicable employment standards legislation.

	
19.
	
Termination by Employee. The Employee may terminate his or her employment with the Employer at any time, by providing four weeks' prior written notice.

	
20.
	
Fair and Reasonable The parties acknowledge and agree that the provisions contained in this Agreement with respect to non-disclosure, non-interference, intellectual property, termination of employment and notice of termination are all fair and reasonable and that the other provisions of this Agreement have been negotiated and agreed upon taking into account the effect of such provisions.

	
21.
	
Injunctive/Mandatory Relief. The parties also agree that any actual or anticipated breach of any of these provisions by the Employee may cause the Employer irreparable harm, entitling the Employer to seek and obtain injunctive or other mandatory relief restraining such actual or anticipated breach. For greater clarity, any such injunctive or other mandatory relief shall be in addition to any other relief that the Employer may obtain under applicable law.

	
22.
	
Return of Property. Upon the termination of this Agreement for any reason whatsoever, the Employee will immediately deliver or cause to be delivered to the Employer all Confidential Information and all other property belonging to the Employer or for which the Employer is liable to others, which are in the possession, charge, care, control or custody of the Employee.

	
23.
	
Interpretation. In this Agreement, unless the context otherwise requires: "Person" includes an individual, firm, association, syndicate, partnership, company, corporation, trust, trustee, joint venture, unincorporated association, government agency or body or other organization; headings and subheadings are included for convenience of reference only and shall not affect the construction or interpretation of this Agreement; words importing the singular include the plural and vice versa and words importing one gender include all genders; and all amounts are stated and payable in Canadian currency.

	
24.
	
Counterpart. The Employer and Employee agree that this Agreement and  any amendment thereto may be executed in counterpart and the transmittal of signatures or of signed copies of this Agreement, any amendment thereto and notices required or permitted to be given hereunder by facsimile machine or other mechanical or electronic form hereby constitutes good and valid execution and delivery of such document and are legally binding on both the Employer and Employee.

	
25.
	
Survival. The representations, warranties and covenants contained in this Agreement that are intended to survive the termination of the Employee's employment, including for greater certainty and without limitation, those contained in articles 9, 10, 11 12, 13, 15, 21, 22 and 23 of this Agreement, shall so survive and shall continue in full force and effect to bind the Employee in accordance with their terms.

	
26.
	
Assignment. This Agreement may not be assigned by the Employee.

6

 

	
27.
	
Notice. Any notice or other communication required or permitted to be given pursuant to this Employment Agreement shall be in writing, shall be addressed to the relevant party at the address set out herein for such party, and shall be given by prepaid first-class mail or by hand­ delivery as hereinafter provided. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, shall be deemed to have been received on the fourth business day (a business day being a day on which banks are open in the City of Ottawa, Ontario) after the post­ marked date thereof, or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address set out herein for such party to an individual at such address having apparent authority to accept deliveries on behalf of the addressee. Notice of change of address shall also be governed by this section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand and shall be deemed to have been received in accordance with this section.

	
28.
	
Enurement. This Agreement shall enure to the benefit of, and be binding upon, the parties hereto and their respective heirs, administrators, estate trustees, successors, affiliates and permitted assigns.

	
29.
	
Invalidity of Provisions.  Each provision of this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision of this Agreement.

	
30.
	
Modification and Waiver. This Agreement may not be modified unless agreed to in writing by both the Employee and the Employer. No extension of any time limit granted by a party shall constitute an extension of any other time limit or any subsequent instance involving the same time limit. No consent by a party to, nor waiver of, a breach by the other party, whether express or implied, shall constitute a consent to or waiver of or excuse for any other different or subsequent breach, unless such waiver or consent is in writing and signed by the party claimed to have waived or consented.

	
31.
	
Entire Agreement. This Agreement contains the entire agreement of the parties hereto relating to the employment of the Employee by the Employer, and supersedes any and all previous agreements, written or oral, express or implied, between the Employer and the Employee relating to the employment of the Employee by the Employer.

	
32.
	
Governing Law. This Employment Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

	
33.
	
Independent Legal Advice. The Employee hereby acknowledges and agrees that: (a) the Employee has carefully read and understood the terms, conditions and provisions of this Agreement; (b) the Employee has had the opportunity, and it has been suggested by the Employer, to obtain independent legal advice in connection with the entering into of this Agreement; and (c) the Employee has either obtained independent legal advice in connection with the entering into of this Agreement or has chosen not to obtain such independent legal advice, having been provided the opportunity and the suggestion by the Employer to do so.

7

 

[THE BALANCE OF THIS PAGE WAS INTENTIONALLY LEFT BLANK.]

 

8

 

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

TWEED INC.

/s/ Chuck Rifici

Per: Chuck Rifici, CEO

I have authority to bind the corporation.

 

	
)
	
 
	
/s/ Thomas Shipley

	
)
	
 
	
Thomas Shipley

	
)
	
 
	
October 5, 2018

 

9

 

SCHEDULE “A”

JOB DESCRIPTION

Position: Senior Vice President, Global Quality Assurance and Chief Science Officer

Responsibilities

	
 
	
•
	
Provide leadership in the areas of Quality Assurance and Compliance, across all global operations, assisting Regional Managing Directors and overseeing (along with the Regional Managing Directors) Quality Assurance leadership

	
 
	
•
	
Set the global standards for Quality Assurance across the Company and ensure coordination and collaboration across senior QA staff

	
 
	
•
	
Directly oversee elements of QA, GMP, compliance, and meeting all regulatory needs on a global basis

	
 
	
•
	
Monitor, audit and approve facilities and manufacturing operations for conformance with established procedures and requirements

	
 
	
•
	
Drive continuous improvement in the areas of Quality Assurance

	
 
	
•
	
Identify potential areas of compliance vulnerability and risk; develop and implement corrective action plans for resolution of problematic issues

	
 
	
•
	
Responsible for the management of the scientific strategy and supporting the team of professionals who contribute to product ideation, concept development, product validation and qualification

	
 
	
•
	
Responsible for ensuring intellectual property advancements and filings in all areas of production technology and new product creation

	
 
	
•
	
Other duties as assigned

10

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