Document:

Exhibit

Effective January 1, 2001
 Amended: •September 6, 2012

CANADIAN PACIFIC RAILWAY LIMITED

SENIOR EXECUTIVES’ DEFERRED SHARE UNIT PLAN

		
	Section 1
	Interpretation

1.1    Purpose
The purposes of the Plan are:
		
	(a)
	to promote a greater alignment of interests between senior executives of CPRC and the shareholders of the Company;

		
	(b)
	to provide a compensation system for senior executives that is reflective of the responsibility, commitment and risk accompanying their management role;

		
	(c)
	to assist the Company and CPRC to attract and retain individuals with experience and ability to act as senior management of CPRC; and

		
	(d)
	to allow the senior executives of CPRC to participate in the long-term success of the Company.

1.2    Definitions
As used in the Plan, the following terms have the following meanings:
		
	(a)
	“Account” has the meaning ascribed thereto in Section 3.7

		
	(b)
	“Beneficiary” means an individual who, on the date of an Eligible Executive’s death, is the person who has been designated in accordance with Section 5.7 and the laws applying to the Plan, or where no such individual has been validly designated by the Eligible Executive, or where the individual does not survive the Eligible Executive, the Eligible Executive’s legal representative;

		
	(c)
	“Board” means those individuals who serve from time to time as the Board of Directors of the Company;

		
	(d)
	“Bonus DSU” means a unit credited by CPRC to an Eligible Executive pursuant to Section 3.1 by way of a bookkeeping entry in the books of CPRC and administered pursuant to the terms of the Plan, the value of which, on a particular date, shall be equal to the Fair Market Value at that date;

		
	(e)
	“Change of Control” means:

		
	(i)
	the initial acquisition by any person, or any persons acting jointly or in concert (as determined by the Securities Act (Alberta)), whether directly or indirectly, of voting securities of the Company which, together with all other voting securities of the Company held by such 

persons, constitutes, in the aggregate, more than 20% of all outstanding voting securities of the Company;
		
	(ii)
	an amalgamation, arrangement or other form of business combination of the Company with another corporation which results in the holders of voting securities of that other corporation holding, in the aggregate, more than 20% of all outstanding voting securities of the corporation resulting from the business combination;

		
	(iii)
	a sale, disposition, lease or exchange to or with another person or persons (other than a Related Corporation) of property of the Company representing 50% or more of the net book value of the assets of the Company, determined as of the date of the most recently published audited financial statements of the Company; or

		
	(iv)
	a change in the composition of the Board over any twelve month period commencing after the applicable Grant Date such that more than 50% of the persons who were directors of the Company at the beginning of the period are no longer directors at the end of the period, unless such change is a consequence of normal attrition;

		
	(f)
	“Committee” means the Management Resources and Compensation Committee of the Board, or such other persons or other Committee of the Board, as may be designated by the Board;

		
	(g)
	“Company” means Canadian Pacific Railway Limited;

		
	(h)
	“Conversion Date” means, with respect to any calendar year, the date used to determine the Fair Market Value for purposes of determining the number of Bonus DSUs to be awarded to an Eligible Executive, which date shall, for Bonus DSUs credited in accordance with Section 3.1, be the last business day in the relevant Performance Period.

		
	(i)
	“CPRC” means Canadian Pacific Railway Company;

		
	(j)
	“Disability Date” means the date as of which an Eligible Executive commences receiving or is eligible to receive long‐term disability benefits under the CPRC’s long‐term disability plan;

		
	(k)
	“Discretionary DSU” means a unit credited by CPRC to an Eligible Executive pursuant to Section 3.4.2 by way of a bookkeeping entry in the books of CPRC and administered pursuant to the terms of the Plan, the value of which, on a particular date, shall be equal to the Fair Market Value at that date;

		
	(l)
	“DSUs” means Pre-2005 DSUs and Post-2004 DSUs, collectively;

		
	(m)
	“Eligible Executive” means such employees of CPRC as the Committee may designate from time to time as eligible to participate in the Plan;

		
	(n)
	“Employer” means, with respect to an Eligible Executive, a company that is any of the Company or a Related Corporation and that employs such Eligible Executive or that last employed such Eligible Executive prior to his Termination Date;

		
	(o)
	“Entitlement Date” has the meaning ascribed thereto in Section 4.1

		
	(p)
	 “Fair Market Value” means, with respect to Eligible Executives who are residents of Canada for purposes of the Income Tax Act (Canada), the TSX FMV, and with respect to Eligible Executives who are not residents of Canada for purposes of the Income Tax Act (Canada), the NYSE FMV;

		
	(q)
	“Global Dollar Amount” has the meaning ascribed thereto in Section 3.3;

		
	(r)
	“Matching DSU” means a unit credited by CPRC to an Eligible Executive pursuant to Section 3.4 by way of a bookkeeping entry in the books of CPRC and administered pursuant to the terms of the Plan, the value of which, on a particular date, shall subject to Section 3.4.2 be equal to the Fair Market Value at that date, determined by the closing price of a Share on the applicable stock exchange on the actual date of the award;

		
	(s)
	“NYSE FMV” means, with respect to any particular date, the average closing price of a Share on the New York Stock Exchange, or if the Shares are not listed on the New York Stock Exchange, on such other stock exchange in the United States on which the Shares are listed, or if the Shares are not listed on any stock exchange, then on the over-the-counter market in the United States, on the ten trading days prior to that date, rounded up to the nearest cent. The NYSE FMV for a Matching DSU will be the closing price of a Share on the NYSE on the actual date of the award;

		
	(t)
	“Ownership Level” is the value of DSUs and Shares held by the executive based on the greater of acquisition price and market price.

		
	(u)
	“Ownership Requirement” is the minimum level of Share ownership set as a multiple of base salary.

		
	(v)
	“Performance Period” means a calendar year in respect of which an Eligible Executive may be or become entitled to an award of Bonus DSUs under Section 3.1 or a cash award under the STIP , or both;

		
	(w)
	 “Performance DSU” means a unit credited by CPRC to an Eligible Executive by way of a bookkeeping entry in the books of CPRC and 

administered pursuant to the terms of the Plan, the value of which, on a particular date, shall be equal to the Fair Market Value at that date;
		
	(x)
	“Plan” means this Senior Executives’ Deferred Share Unit Plan, as amended from time to time;

		
	(y)
	“Post-2004 DSUs” means Bonus DSUs, Discretionary DSUs and Matching DSUs credited to the Account of an Eligible Executive that are not Pre-2005 DSUs;

		
	(z)
	“Pre-2005 DSUs” means Bonus DSUs, Discretionary DSUs, Performance DSUs and Matching DSUs credited to the Account of an Eligible Executive as the case may be, and vested prior to January 1, 2005;

		
	(aa)
	“Related Corporation” means a corporation related to the Company for the purposes of the Income Tax Act (Canada) and, unless inconsistent with the context, includes CPRC;

		
	(bb)
	“Share” means a common share, without nominal or par value, of the capital stock of the Company;

		
	(cc)
	“STIP” means the Short Term Incentive Plan applicable to an Eligible Executive for a year, pursuant to which the Eligible Executive may receive cash awards, based on corporate performance and the Eligible Executive’s individual contribution to the Company’s and CPRC’s consolidated financial results measured against predetermined objectives.

		
	(dd)
	“Termination Date” means, with respect to an Eligible Executive the earliest date on which both of the following conditions are met:  (i) the Eligible Executive has ceased to be employed by the Company, CPRC or any affiliate thereof (as the term “affiliate” is defined in paragraph 8 of the Canada Revenue Agency’s Interpretation Bulletin IT-337R4 dated October 21, 2003) for any reason whatsoever; and (ii) the Eligible Executive is not a member of the Board nor a Executive of an affiliate of the Company or CPRC (as defined in the above-noted Interpretation Bulletin); provided that the Termination Date of a U.S. Eligible Executive shall be the date on which such Eligible Executive has separated from service, within the meaning of Section 409A of the Internal Revenue Code;

		
	(ee)
	“TSX FMV” means, with respect to any particular date, the average closing price of a Share on the Toronto Stock Exchange, or if the Shares are not listed on the Toronto Stock Exchange, on such other stock exchange in Canada on which the Shares are listed, or if the Shares are not listed on any stock exchange, then on the over-the-counter market in Canada, on the ten trading days prior to that date, rounded up to the nearest cent.  The TSX FMV for a 

Matching DSU will be the closing price of a Share on the TSX on the actual date of the award;
		
	(ff)
	“U.S. Eligible Executive” means an Eligible Executive who is subject to federal income tax on his employment income paid by the Company or an Employer under the “Internal Revenue Code” of the United States of America; and

		
	(gg)
	“Vested DSU” means each Bonus DSU, Discretionary DSU, Performance DSU and/or Matching DSU, which has vested in accordance with Section 3.5.

1.3    Effective Date
The effective date of the Plan, which was amended and restated as of September 6, 2012, is January 1, 2001.
1.4    Construction
In this Plan, all references to the masculine include the feminine; reference to the singular shall include the plural and vice versa, as the context shall require.  If any provision of the Plan or part thereof is determined to be void or unenforceable in whole or in part, such determination shall not affect the validity or enforcement of any other provision or part thereof.  Headings wherever used herein are for reference purposes only and do not limit or extend the meaning of the provisions contained herein.  References to “Section” or “Sections” mean a section or sections contained in the Plan unless expressly stated otherwise.
1.5    Administration
The Committee shall, in its sole and absolute discretion:  (i) interpret and administer the     Plan; (ii) establish, amend and rescind any rules and regulations relating to the Plan; (iii) have the power to delegate, on such terms as the Committee deems appropriate, any or all of its powers hereunder to the Chief Executive Officer of CPRC; and (iv) make any other determinations that the Committee deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems, in its sole and absolute discretion, necessary or desirable.  Any decision of the Committee with respect to the administration and interpretation of the Plan shall be conclusive and binding on the Eligible Executive and any other person claiming an entitlement or benefit through the Eligible Executive.  All expenses of administration of the Plan as determined by the Committee shall be borne by CPRC.
1.6    Governing Law
The Plan shall be governed by and construed in accordance with the laws of the Province of Alberta and the federal laws of Canada applicable therein.

		
	Section 2
	Election Relating to Bonus DSUs

2.1    Election
2.1.1    An Eligible Executive may, with respect to any particular Performance Period, elect to participate in the Plan and be eligible to receive Bonus DSUs.  In order to elect to participate in the Plan with respect to any particular Performance Period, an individual who has been designated as an Eligible Executive prior to the start of such Performance Period shall complete, and deliver to CPRC, a written election before the last business day of the calendar year immediately preceding the Performance Period.  If an individual becomes an Eligible Executive during the first six months of a Performance Period, such Eligible Executive may elect to participate in the Plan for the purpose of being eligible to receive Bonus DSUs with respect to such Performance Period by completing and delivering to CPRC a written election within thirty days following the date on which such individual became an Eligible Executive.  An individual who becomes an Eligible Executive during the last six months of a Performance Period is not entitled to elect to participate in the Plan for the purpose of being eligible to receive Bonus DSUs in respect of that Performance Period, but may so elect with respect to the next Performance Period.  
2.1.2    An Eligible Executive who wishes to participate in the Plan with respect to a particular Performance Period in order to become eligible to receive Bonus DSUs shall be entitled to elect on an irrevocable basis, to defer a percentage of Bonus amount (25%, 50%, 75%, 100%) when combined with the value of the Eligible Executive’s outstanding Discretionary or Bonus DSUs, not to exceed a value of 80% of the Eligible Executive’s Ownership Requirement. Should the elected amount exceed 80% of the Eligible Executive’s Ownership Requirement, the amount will be reduced accordingly.
DSUs already granted to the Eligible Executive pursuant to the Plan shall be taken into account by the Committee in determining attainment of Ownership Requirements.  Notwithstanding an Eligible Executive’s election under this Section 2.1.2, the Committee may, in its sole discretion, decline to award Bonus DSUs in respect of a particular Performance Period or, may require the Eligible Executive to receive a percentage, as specified by the Committee, of the Eligible Executive’s potential incentive compensation under the STIP for that Performance Period in the form of Bonus DSUs; provided however, that the Committee shall not be permitted to exercise such discretion with respect to U.S. Eligible Executives.
		
	Section 3
	Crediting of DSUs Under the Plan

3.1    Award of Bonus DSUs
The Committee may, from time to time, award Bonus DSUs to Eligible Executives who have elected pursuant to Section 2.1 to participate in the Plan for a particular Performance Period.  The Committee shall specify the Conversion Date of each award of Bonus DSUs under this Section 3.1 and the date as of which each such award of DSUs is to be credited to the Account of the applicable Eligible Executive.  Each award of Bonus DSUs shall be confirmed by an instrument in writing issued by CPRC.

3.2    Where No Award of Bonus DSUs is Made
Where the Committee chooses not to award Bonus DSUs to an Eligible Executive under Section 3.1 in respect of a Performance Period, such Eligible Executive shall remain eligible to receive a cash incentive compensation award in respect of such Performance Period in accordance with the terms of the STIP as if such Eligible Executive had not elected to participate in the Plan for such Performance Period.
3.3    Calculation of Bonus DSUs
For the purpose of determining the number of Bonus DSUs to be awarded to an Eligible Executive in accordance with Section 3.1, the Committee shall compute the amount of incentive compensation award that would have been awarded to the Eligible Executive pursuant to the STIP had such employee not elected to participate in the Plan for the relevant Performance Period (the “Global Dollar Amount”).  Where the Eligible Executive has elected to receive Bonus DSUs under Section 2.1.2, the Committee (subject to its discretion under Section 2.1.2) shall then award a number of Bonus DSUs (including fractional Bonus DSUs) to the Eligible Executive equal to the quotient determined by dividing:  (i) the product determined by multiplying (a) the percentage amount elected by the Eligible Executive in accordance with Section 2.1.2 (as applicable), and (b) the Global Dollar Amount, by (ii) the Fair Market Value determined on the Conversion Date or on the date of the Eligible Executive’s election, in the case of a U.S. Eligible Executive. 
3.4    Award of Matching DSUs and/or Discretionary DSUs
3.4.1    The Committee may award Discretionary or Matching DSUs to an Eligible Executive in order to facilitate attainment of applicable Ownership Requirements in accordance with this Section 3.4.  The Committee shall specify the date on which each award of Discretionary or Matching DSUs is to be credited to the Account of an Eligible Executive, the number of Discretionary or Matching DSUs to be awarded to the Eligible Executive on a particular date and the initial value of the Discretionary or Matching DSUs awarded on that date.  
3.4.2    The initial value of a Discretionary or Matching DSU awarded to an Eligible Executive pursuant to Section 3.4.1 shall be the Fair Market Value on the date of the award except that it shall be determined based on the closing price of a Share on the applicable stock exchange on the actual date of the award rather than on the average closing price of a Share on the ten trading days prior to that date as otherwise provided in Section 1.2(p)
An Eligible Executive shall be awarded, subject to the approval of the Committee, during the 60-month period beginning on the date the Eligible Executive commences participation in the Plan or during the 60-month period following the move to the next level of ownership, one Matching DSU for every four Bonus DSUs awarded to the Eligible Executive until 20% Ownership Requirement is achieved through the greater of book value or Fair Market Value of Matching DSUs. 
For greater certainty the value of outstanding Matching DSUs cannot exceed 20% of the Eligible Executive’s Ownership Requirement on any date being considered for determining additional 

Matching DSUs.  Any award of Matching DSUs that would otherwise be made shall be reduced to the extent necessary to comply with reaching Ownership Requirement. 
With respect to Eligible Executives who participated in the Deferred Share Unit plan prior to September 6, 2012 Matching DSUs will no longer be issued on Shares purchased. 
3.4.3    The Committee may in its sole discretion grant, from time to time, Discretionary DSUs to an Eligible Executive in recognition of his services with CPRC or his position at CPRC.  The Committee shall determine the date on which such Discretionary DSUs may be granted, which date shall in any event precede the Eligible Executive’s Termination Date and shall not be earlier than his date of employment by CPRC, the Company or a Related Corporation.  The Committee may, in its sole discretion, attach time based vesting conditions (which shall be expressed as a requisite number of months after the date of the grant of the Discretionary DSUs) to any such grant of Discretionary DSUs which, subject to Section 3.5.4, if not attained by the Eligible Executive prior to the date of termination of employment, may result in the forfeiture of such non-vested Discretionary DSUs.  
		
	3.5
	Date of Crediting and Vesting of Bonus DSUs, Discretionary DSUs  and Matching DSUs 

3.5.1    Bonus DSUs shall be credited to the Account of an Eligible Executive as of the date specified by the Committee in accordance with Section 3.1.  Bonus DSUs awarded under Sections 3.1 and 3.6 will be fully vested upon being credited to an Eligible Executive and the Eligible Executive’s entitlement to payment of Bonus DSUs shall not thereafter be subject to satisfaction of any requirements as to any minimum period of employment or attainment of Share Ownership Requirements.
3.5.2    Discretionary DSUs shall be credited to the Account of an Eligible Executive as of the date specified by the Committee in accordance with Section 3.4.4.  Except as provided in Section 3.5.4 below, if an Eligible Executive receives or gives notice of termination of employment following the date of grant of Discretionary DSUs and prior to completion of the vesting period relating to such Discretionary DSUs, the Eligible Executive shall (subject to the terms of the applicable instrument issued pursuant to Section 3.4.4) forfeit all rights, title and interest with respect to such Discretionary DSUs including, for greater certainty, any additional Discretionary DSUs granted pursuant to Section 3.6 in respect of those Discretionary DSUs.
3.5.3    Matching DSUs shall be credited to the Account of an Eligible Executive as of the date specified by the Committee in accordance with Section 3.4.1.  Except as provided in Section 3.5.4 below or where the Committee or the President and Chief Executive Officer of CPRC specifies otherwise, if an Eligible Executive receives or gives notice of termination of employment following the date of a grant of Matching DSUs and prior to 36 months following such date of grant or; for Eligible Executives participating in the plan prior to September 6, 2012, if prior to 36 months following such date of grant the Eligible Executive disposes of the Shares to which such grant of Matching DSUs relates, the Eligible Executive shall forfeit all rights, title and interest with respect to such Matching DSUs.

3.5.4    Notwithstanding any other provision of this Plan, all Discretionary DSUs and Matching DSUs recorded in an Eligible Executive’s Account, including for greater certainty any additional Discretionary DSUs, granted pursuant to Section 3.6, shall vest immediately and shall not be considered forfeited under this Section 3.5 upon the earliest of the Eligible Executive’s death, a the Eligible Executive’s Disability Date, and the termination of the Plan in accordance with Section 5.4.
In the event of a Change in Control prior to the Vesting Date relating to Discretionary DSUs and Matching DSUs, such DSUs shall not be affected and shall continue to vest as per the terms hereof, unless an Eligible Employee ceases to be Employed by reason of termination of employment without Cause after such a Change in Control, in which case 100% of such Eligible DSUs (including any dividend equivalent) shall vest on the termination of employment date.
3.5.5    Except where the context requires otherwise, each Bonus DSU, Discretionary DSU, and  Matching DSU which is vested pursuant to this Section 3.5 shall be referred to herein as a “Vested DSU” and collectively as “Vested DSUs”.
3.6    Dividend Equivalents
On the payment date for dividends paid on Shares, an Eligible Executive shall be credited with dividend equivalents in respect of Bonus DSUs, Discretionary DSUs and Matching DSUs, as applicable, credited to the Eligible Executive’s Account as of the record date for payment of dividends.  Such dividend equivalents shall be converted into additional DSUs, as applicable, corresponding to the Bonus DSUs, Matching DSUs and Discretionary DSUs, then credited to the Eligible Executive’s Account (including fractions thereof) based on the Fair Market Value on the date such dividend equivalents are credited.
3.7    Eligible Executives’ Accounts
CPRC shall maintain or cause to be maintained in its books an account for each Eligible Executive (“Account”) recording at all times the number of DSUs standing to the credit of the Eligible Executive.  Upon payment in satisfaction of Vested DSUs credited to an Eligible Executive in the manner described herein, such Vested DSUs shall be cancelled.  Upon forfeiture of Discretionary DSUs or Matching DSUs pursuant to Section 3.5, such Discretionary DSUs or Matching DSUs, as applicable, recorded in the Eligible Executive’s Account shall be cancelled.  .
3.8    Adjustments and Reorganizations
3.8.1    In the event of any stock dividend, stock split, combination or exchange of Shares, merger, consolidation, spin-off or other distribution (other than normal cash dividends) of the Company’s assets to shareholders, or any other change in the capital of the Company affecting the Shares, such proportionate adjustments, if any, as the Committee in its discretion may deem appropriate to reflect such change, shall be made with respect to the number of Bonus DSUs, Discretionary DSUs and Matching DSUs outstanding under the Plan.

3.8.2    Notwithstanding any other provision of the Plan, the value of each DSU, as applicable, shall always depend on the value of Shares of the Company or a Related Corporation.
		
	Section 4
	Termination of Service

4.1    Redemption of Vested DSUs
Subject to Sections 4.2, 4.3 and 4.5, an Eligible Executive may elect the date as of which the DSUs credited to the Eligible Executive’s Account that are Vested DSUs shall be redeemed (the “Entitlement Date”) by filing an irrevocable written election with CPRC no later than November 15 of the calendar year commencing immediately after the Eligible Executive’s Termination Date.  The Fair Market Value of the DSUs credited to the Eligible Executive’s Account as at the Entitlement Date, as may be adjusted pursuant to Section 4.3 or Section 4.5, shall be redeemable by and payable to the Eligible Executive or the Eligible Executive’s Beneficiary, as applicable provided such DSUs are Vested DSUs.  The Fair Market Value of the DSUs redeemed by or in respect of an Eligible Executive shall, after deduction of any applicable taxes and other source deductions required to be withheld, be paid by the Company or CPRC as a lump sum in cash to the Eligible Executive or the Eligible Executive’s Beneficiary, as applicable as soon as practicable after the Eligible Executive’s Entitlement Date.
4.2    Determination of Entitlement Date
4.2.1    The Entitlement Date elected by an Eligible Executive (including a U.S. Eligible Executive) pursuant to Section 4.1 with respect to Pre-2005 DSUs shall not be before the later of the date on which such election is filed with CPRC and 30 days after the Eligible Executive’s Termination Date and shall not be later than December 15 of the calendar year commencing immediately after the Eligible Executive’s Termination Date.  The Entitlement Date elected by an Eligible Executive (other than a U.S. Eligible Executive) pursuant to Section 4.1 with respect to Post-2004 DSUs shall not be before the later of the date on which such election is filed with CPRC and six months after the Eligible Executive’s Termination Date and shall not be later than December 15 of the calendar year commencing immediately after the Eligible Executive’s Termination Date. Where an Eligible Executive does not elect a date within the permissible period set out above as his Entitlement Date, the Entitlement Date for such Eligible Executive shall be December 15 of the calendar year commencing immediately after the Eligible Executive’s Termination Date.    
4.2.2    Notwithstanding Section 4.2.1, where an Eligible Executive elects an Entitlement Date under Section 4.1 for Pre-2005 DSUs that is earlier than the date that is six months after the Eligible Executive’s Termination Date the Entitlement Date for any Post-2004 DSUs credited to such Eligible Executive’s Account shall be date that is six months after the Eligible Executive’s Termination Date. 
4.2.3    Notwithstanding any other provision of this Plan, the Entitlement Date of a U.S. Eligible Executive with respect to Post-2004 DSUs shall be the date that is six months after the U.S. Eligible Executive’s Termination Date.  
4.3  In the event that an Eligible Executive’s Entitlement Date falls between the record date for a dividend on the Shares and the related dividend payment date then, notwithstanding Section 4.1, 

the redemption of the dividend equivalents shall be deferred until the day immediately following such dividend (or as soon as practicable thereafter) but in the case of a U.S. Eligible Executives not later than the last day of the calendar year in which the Entitlement Date occurs Such dividend equivalents will be redeemed at the same Fair Market Value determined on the elected entitlement date.
4.4 Limitation on Extension of Entitlement Date
Notwithstanding any other provision of the Plan, all amounts payable to, or in respect of, an Eligible Executive hereunder shall be paid on or before December 31 of the calendar year commencing immediately after the Eligible Executive’s Termination Date.
4.5 Postponed Entitlement Date
Without limiting the generality of Section 5.5 and notwithstanding any other provision of the Plan other than Section 4.2.3, if in the opinion of the Committee, an Eligible Executive is in possession of material undisclosed information regarding either or both of the Company and the Shares on his Entitlement Date, which in the case of U.S. Eligible Executives would prohibit the receipt of a payment under the Plan under U.S. federal securities laws, such Eligible Executive’s Entitlement Date shall be postponed until the earliest of the date on which (i) the Committee is satisfied the Eligible Executive is no longer in possession of any such material undisclosed information, or (ii) December 15 of the year following the year of the Eligible Executive’s Termination Date.
		
	Section 5
	General

5.1    Unfunded Plan
Unless otherwise determined by the Committee, the Plan shall be unfunded.  To the extent any individual holds any rights by virtue of an election under the Plan, such rights (unless otherwise determined by the Committee) shall be no greater than the rights of an unsecured general creditor of CPRC.
5.2    Successors and Assigns
The Plan shall be binding on all successors and assigns of the Company, CPRC and an Eligible Executive, including without limitation, the estate of such Eligible Executive and the legal representative of such estate, or any receiver or trustee in bankruptcy or representative of the Company’s or CPRC’s or the Eligible Executive’s creditors.
5.3    Plan Amendment
The Board may amend the Plan as it deems necessary or appropriate, but no such amendment shall, without the consent of the Eligible Executive or unless required by law, adversely affect the rights of an Eligible Executive with respect to Bonus DSUs, Discretionary DSUs, Matching DSUs and Performance DSUs to which the Eligible Executive is then entitled under the Plan.  Notwithstanding the foregoing, an amendment of the Plan shall be such that the Plan continuously meets the 

requirements of paragraph 6801(d) of the regulations under the Income Tax Act (Canada) or any successor to such provision.  For avoidance of doubt, the Board may amend the Plan without the consent of any Eligible Executive so as to comply with the requirements of Section 409A of the Internal Revenue Code.
5.4    Plan Termination
The Board may terminate the Plan at any time, but no such termination shall, without the consent of the Eligible Executive or unless required by law, adversely affect the rights of an Eligible Executive with respect to Bonus DSUs, Discretionary DSUs, Matching DSUs and Performance DSUs to which the Eligible Executive is then entitled under the Plan.  Notwithstanding the foregoing, termination of the Plan shall be such that the Plan continuously meets the requirements of paragraph 6801(d) of the regulations under the Income Tax Act (Canada) or any successor to such provision.
5.5    Applicable Trading Policies
The Committee and each Eligible Executive will ensure that all actions taken and decisions made by the Committee or an Eligible Executive, as the case may be, pursuant to the Plan, comply with applicable securities regulations and policies of the Company relating to insider trading and “black out” periods.
5.6    Currency
All payments and benefits under the Plan in respect of Eligible Executives who are residents of Canada for purposes of the Income Tax Act (Canada) shall be determined and paid in the lawful currency of Canada.  All payments and benefits under the Plan in respect of Eligible Executives who are not residents of Canada for purposes of the Income Tax Act (Canada) shall be determined and paid in the lawful currency of the United States of America.
5.7    Designation of Beneficiary
Subject to the requirements of applicable laws, an Eligible Executive shall designate in writing a person who is a dependant or relation of the Eligible Executive as a beneficiary to receive any benefits that are payable under the Plan upon the death of such Eligible Executive.  The Eligible Executive may, subject to applicable laws, change such designation from time to time.  Such designation or change shall be in such form and executed and filed in such manner as the Committee may from time to time determine.
5.8    Death of Participant
In the event of an Eligible Executive’s death, any and all Bonus DSUs, Discretionary DSUs, Matching DSUs and Performance DSUs then credited to the Eligible Executive’s Account shall become payable to the Eligible Executive’s Beneficiary in accordance with Section 4.

5.9    Rights of Participants
5.9.1    Except as specifically set out in the Plan, no employee of the Company, or any Related Corporation, including any Eligible Executive, or other person shall have any claim or right to any Shares or other benefit in respect of Bonus DSUs, Discretionary DSUs, Matching DSUs or Performance DSUs granted pursuant to the Plan.
5.9.2    Rights of Eligible Executives respecting Bonus DSUs, Discretionary DSUs, Matching DSUs or Performance DSUs shall not be transferable or assignable other than by will or the laws of descent and distribution.
5.9.3    Neither the Plan nor any award thereunder shall be construed as granting an Eligible Executive a right to be retained in employment or a claim or right to any future grants of Bonus DSUs, Discretionary DSUs, Matching DSUs or Performance DSUs.  Neither the Plan nor any action taken thereunder shall interfere with the right of an Employer to terminate the employment of an Eligible Executive at any time.  For greater certainty, a period of notice, if any, or payment in lieu thereof, upon termination of employment, wrongful or otherwise, shall not be considered as extending the period of employment for the purposes of the Plan.
5.9.4    Under no circumstances shall Bonus DSUs, Discretionary DSUs, Matching DSUs or Performance DSUs be considered Shares nor shall they entitle any Eligible Executive or other person to exercise voting rights or any other rights attaching to the ownership of Shares, nor shall any Eligible Executive or other person be considered the owner of Shares by virtue of this Plan.
5.10    Compliance with Law
The Eligible Executive shall comply with all applicable laws and furnish the Company with any and all information and undertakings as may be required to ensure compliance therewith.
5.11    Withholding
An Employer shall be entitled to deduct any amount of withholding taxes and other withholdings from any amount paid or credited hereunder.

September 6, 2012

/s/ Peter Edwards_________________
Peter Edwards
Vice-President, Human Resources and Industrial Relations
Canadian Pacific Railway CompanyExhibit

CANADIAN PACIFIC RAILWAY LIMITED

EMPLOYEE SHARE PURCHASE PLAN (CANADA)

Plan Terms and Conditions

July 1, 2006

Table Of Contents

Section 1 -- Definitions .................................................................................................

Section 2 – Establishment of the Plan ..........................................................................

Section 3 – Participation and Enrollment .....................................................................

Section 4 – Participant Contribution to the Plan ..........................................................
Section 5 – Company Contribution to the Plan ...........................................................
Section 6 – Asset Fund................................................................................................
Section 7 – Investment ................................................................................................
Section 8 – Withdrawals/Sales of Shares ...................................................................

Section 9 – Termination of Participation in the Plan....................................................

Section 10 – Administration of the Plan.......................................................................

Section 11 – Plan Amendment and Termination ..........................................................

Section 12 – Market Fluctuation.....................................................................

Section 13 – Income Taxes.............................................................................
Section 14 – No Trading on Undisclosed Information......................................... Section 15 – General Provisions.....................................................................

Section 1 — Definitions

For the purpose of the Plan:

“Account” means any real or notional account held in the name of a Participant by the Plan Administrator recording Shares purchased with Participant Contributions or Company Contributions.

“Administrative Agreement” means any agreement or agreements executed from time to time between CPR and the Plan Administrator.

“Affiliate” means any affiliate of CPR designated by CPR for the purposes of the Plan.

“Asset Fund” means the assets of the Plan held by the Plan Administrator, consisting of Participant Contributions, Company Contributions, the Shares and any dividends, interest, or gains derived therefrom, as more fully set out in Section 6.

“Basic Administration Expenses”, as determined in CPR’s sole discretion, may include, but shall not be limited to, the establishment and tracking of Accounts, payroll deductions, quarterly statements, ancillary administration costs and any brokerage fees applicable to the purchase of Shares.

“Board” means the Board of Directors of CPR as constituted from time to time.

“Business Day” means a day on which the Stock Exchange is open for business in Canada.

“CPR” means Canadian Pacific Railway Limited and its majority owned subsidiaries who adopt this Plan. Any reference herein to any action to be taken by CPR means action by or under the authority of the Board.

“Company Contributions” means contributions made to the Plan by CPR or an Affiliate pursuant to Section 5.

“Continuous Service” means an uninterrupted period of continuous employment by an Eligible Employee as determined by the rules of CPR in effect from time to time. An Eligible Employee’s Continuous Service shall not be considered interrupted by CPR- approved leaves of absence or periods in which an Eligible Employee is on furlough, spare board or is laid-off with recall rights (until the recall period has expired).

“Eligible Bargaining Unit” means any bargaining unit participating in the Plan.

“Eligible Bargaining Unit Representative” means a full-time representative of an Eligible Bargaining Unit on leave from CPR with the right to return to work for CPR.

“Eligible Earnings” means the regular base pay of an employee paid through the CPR or Affiliate payroll system for the relevant period, excluding overtime, bonus, and other special or one-time payments received in that period as determined by CPR in accordance with its regular practices in effect; and means deemed earnings (excluding bonus or subsidies) for Eligible Bargaining Unit Representatives as determined by CPR in accordance with its regular practices in effect from time to time.

“Eligible Employee” means each CPR employee in Canada who:
		
	i)
	is a regular full-time or part time non-union employee; or

		
	ii)
	is a regular full-time, part time or seasonal employee in an Eligible Bargaining Unit; or

		
	iii)
	is an Eligible Bargaining Unit Representative;

and
		
	iv)
	is in receipt of Eligible Earnings; and

		
	v)
	has reached the age of majority under the laws applicable to such employee; and

		
	vi)
	is in the Continuous Service of CPR, or an Affiliate, and has been designated as eligible to participate in the Plan and such designation has not been revoked;

but does not include:
		
	vii)
	any employee in respect of whom a decision to cease employment has been made; or

		
	viii)
	any individual whose services have been engaged by CPR on a temporary basis and who is not eligible to participate in other CPR benefit programs (including but not limited to consultants, casual, students or fixed term employees); or

		
	ix)
	any employees on bridging, education leave under a job/income security agreement, or employment security.

“Enrolment/Change Form” means the enrolment/change form in such form as may be determined by CPR from time to time.

“Legal Representative” means executor or executrix appointed under a deceased's will or Court- appointed administrator or trustee of a deceased's estate.

“Market Price” means, for purchases and sales of Shares, the prices at which Shares are purchased or sold on the relevant day on the Stock Exchange.

“Participant” means a person who is an Eligible Employee, who has elected to participate in the Plan and who makes contributions to the Plan from Eligible Earnings pursuant to Section 4 herein.

“Participant Contributions” means contributions made to the Plan by Participants pursuant to Section 4 herein.

“Pay Period” means a Participant’s pay period as defined within the CPR pay system (i.e. weekly, biweekly, semi-monthly, monthly, etc.).

“Plan” means this employee share purchase plan, as it may be amended from time to time, and which is intended to constitute an employee profit sharing plan as defined under Section 144 of the Income Tax Act (Canada) or any successor provision.

“Plan Administrator” means such trust company or companies and/or other corporations appointed by CPR from time to time to administer the Plan on behalf of CPR.

“Plan Reserve” means that portion of the Asset Fund consisting of unallocated Company Contributions; interest earned on contributed funds; and forfeited Shares or any resultant proceeds from sale of forfeited Shares, which proceeds shall be for the benefit of CPR. Plan Reserve does not include Participant Contributions or dividends payable on Shares.

“Plan Year” means the period of twelve calendar months commencing on January 1 and ending on December 31 of each year, or such other period as may be determined by CPR.

“Profits” means current profits, retained earnings, and any other amount of or in respect of CPR or an Affiliate considered to constitute profits for purposes of subsection 144(10) of the Income Tax Act (Canada) or any successor provision.

“Restricted Shares” means Shares in a Participant’s Account purchased with Participant Contributions at any time within the previous four (4) consecutive full calendar quarters and for which the contingent Unvested Shares purchased with Company Contributions have not vested in accordance with Paragraph 8.4.

“Retirement” means the cessation of employment at a time when the Participant is entitled to an immediate unreduced pension in accordance with the provisions of the Defined Benefit option of the Canadian Pacific Railway Company Pension Plan (the "CPR Pension Plan"); and further provided that if the Participant does not participate in the CPR Pension Plan, the Participant shall be deemed to have retired if at the time of cessation of the Participant's employment, the Participant would have been entitled to an immediate unreduced pension under the provisions of the Defined Benefit option of the CPR Pension Plan if that Participant had otherwise participated in the CPR Pension Plan and if all of the service of that Participant with CPR (and predecessor employers with respect to which CPR recognizes service for any purpose under a pension plan that covers that Participant) had been deemed to constitute "Service" (as that term is defined in the CPR Pension Plan) in respect of which all contributions had been made under the CPR Pension Plan. For Eligible Bargaining Unit Representatives, service as a bargaining unit representative during the period of time that the Eligible Bargaining Unit Representative is on leave from CPR with the right to return to CPR shall be treated as Union Service under the CPR Pension Plan for purposes of determining an Eligible Bargaining Unit Representative's right to an unreduced pension under the Defined Benefit option of the CPR Pension Plan.

“Shares” means CPR common shares previously issued and traded through the facilities of the Stock Exchange. This term may also be extended to mean either Restricted Shares and/or Unvested Shares, as applicable, for purposes of describing the purchase of such shares in accordance with the Plan.

“Stock Exchange” means the Toronto Stock Exchange, or such other stock exchange in Canada on which the Shares are listed and posted for trading.

“Unrestricted Shares” mean the Shares in a Participant’s Account that are not Unvested Shares or Restricted Shares.

“Unvested Shares” means Shares in a Participant’s Account purchased with Company Contributions at any time during the previous four (4) consecutive full calendar quarters, except in the circumstances described in Section 9.

“Withdrawal/Termination Form” means the withdrawal/termination form in such form as may be determined by CPR from time to time.

Section 2 — Establishment of the Plan

		
	2.1
	Purpose

The purpose of this Plan is to provide Eligible Employees with an opportunity to participate in the ownership of CPR on an on-going basis through purchases of Shares. The Plan shall operate as an employee profit sharing plan as defined in Section 144 of the Income Tax Act (Canada) or any successor provision.

		
	2.2
	Effective date of the Plan

The effective date of the Plan, which was amended and restated as of July 1, 2006, is October 1, 2001.

		
	2.3
	Government Regulations

The terms and conditions of this Plan, including the acquisition, sale and delivery of Shares, are subject to compliance with all applicable laws, regulatory requirements and approvals.

Section 3 — Participation and Enrolment

Eligible Employees may elect to enrol as Participants in the Plan in any calendar month in which they are eligible. To enrol, the Eligible Employee must complete and deliver to the Plan Administrator an Enrolment/Change Form. Enrolment in the Plan will be effected as soon as practicable once the completed Enrolment/Change Form is received and processed by both the Plan Administrator and CPR. Delivery of a duly executed Enrolment/Change Form shall constitute acceptance by the Eligible Employee of all the terms and conditions of the Plan as set forth herein and of any regulations adopted or to be adopted pursuant to Section 11 herein.

The Plan Administrator will send a written letter of confirmation of enrolment to the Participant where applicable as soon as practicable.

Participation in the Plan is voluntary. CPR is not making any representations or warranties as to the value of Shares at any time, nor recommending to employees as to whether or not they should participate in the Plan. Employees considering participation in the Plan should consult their own accountant, legal counsel or other financial advisors regarding participation in the Plan.

Section 4 — Participant Contributions to the Plan

		
	4.1
	Amount of Contributions

Participants may contribute, via payroll deductions, a percentage of their Eligible Earnings ranging from a minimum of one per cent (1%) to a maximum of ten per cent (10%) (based on whole percentages) for investment under the Plan. The Participant shall indicate the percentage amount of Participant Contributions on the Enrolment/Change Form. Participant Contributions up to six percent (6%) of Eligible Earnings shall be eligible for Company Contribution pursuant to Paragraph 5.1.

In the event that the Eligible Earnings of a Participant vary at any time in the course of a Plan Year, the Participant Contributions of such Participant shall be automatically adjusted accordingly in order to remain equal to the selected percentage of the Participant’s Eligible Earnings as set out in the Enrolment/ Change Form.

		
	4.2
	Payroll Deductions

Each Participant shall make Participant Contributions to the Plan by regularly scheduled payroll deductions at the end of each Pay Period for the percentage indicated on the Enrolment/Change Form. The Participant Contributions in any given Plan Year shall be made on the basis of the year of receipt of the Eligible Earnings from which such Participant Contributions are deducted. Payroll deductions shall commence as soon as practicable once the completed Enrolment/Change Form is received and processed by both the Plan Administrator and CPR.

		
	4.3
	Continuing Contributions

With the exception of a Participant’s voluntary suspension of Participant Contributions as provided for in Paragraph 4.8, Participant Contributions via payroll deductions shall continue indefinitely while the Participant continues to receive Eligible Earnings. Should a Participant cease to receive Eligible Earnings from time to time, payroll deductions will cease and shall resume following the receipt of Eligible Earnings.

		
	4.4
	Union Representative Participant Contributions

In the case of Eligible Bargaining Unit Representatives where contributions via payroll deductions are not possible, contributions may be made via post-dated cheques provided to CPR, subject to the provisions of Paragraph 4.1. Contributions by this method may be made only on a monthly basis. Upon request, CPR shall notify Eligible Bargaining Unit Representatives of the amount of Eligible Earnings available for determination of contribution amounts and CPR will bring all such Eligible Bargaining Unit Representatives to the Plan Administrator’s attention.

		
	4.5
	No Retroactive Contributions

A Participant may not make retroactive Participant Contributions to the Plan, unless CPR determines otherwise.

		
	4.6
	No Lump Sum Contributions

A Participant may not make lump sum Participant Contributions to the Plan, unless CPR determines otherwise.

		
	4.7
	Changes to a Participant’s Contribution Level

A Participant may change contribution levels, in whole percentages, once per calendar quarter by providing to the Plan Administrator an Enrolment/Change Form indicating the desired change no later than two (2) weeks. prior to the last day of that quarter. The change will be implemented as soon as practicable once the completed Enrolment/Change Form is received and processed by both the Plan Administrator and CPR at which time the Participant Contributions shall be adjusted accordingly, provided such adjustment conforms with Paragraph 4.1.

		
	4.8
	Voluntary Suspension of Contributions

A Participant may at any time, by completing and delivering to the Plan Administrator an Enrolment/Change Form, request that Participant Contributions be suspended. The suspension will be implemented as soon as practicable once the completed Enrolment/Change Form is received and processed by both the Plan Administrator and CPR. However, in the event of a suspension under this Paragraph 4.8, the Participant shall not be allowed to resume making Participant Contributions until a waiting period of six (6) consecutive months has passed. Upon expiration of the six (6) month waiting period the Participant will have the option of resuming Participant Contributions by completing and delivering to the Plan Administrator a new Enrolment/Change Form.
Participant Contributions shall resume as soon as practicable once the completed Enrolment/Change Form is received and processed by both the Plan Administrator and CPR at which time the Participant Contributions shall be adjusted accordingly, provided such adjustment conforms with Paragraph 4.1. If the voluntary suspension exceeds a period of four (4) consecutive full calendar quarters, CPR shall terminate the participation in the Plan of the Participant in accordance with the provisions of Paragraph 9.2.

		
	4.9
	Leaves of Absence

Subject to Paragraphs 4.1 and 4.3, a Participant shall continue to make Participant Contributions during any leave of absence for which the Participant continues to receive Eligible Earnings unless such Participant has completed and delivered to the Plan Administrator an Enrolment/Change Form indicating a desire to suspend Participant Contributions, during the period of such absence, in which event Paragraph 4.8 shall become applicable where appropriate and with the necessary changes.

If at any time prior to or during such leave of absence the Participant ceases to receive Eligible Earnings the Participant Contributions of the Participant will cease and shall resume following the receipt of Eligible Earnings. Should the cessation of contributions under this Paragraph 4.9 extend for a period exceeding four (4) consecutive full calendar quarters, the provisions of Paragraph 9.2 shall apply.

		
	4.10
	Remittance of Participant Contributions

Participant Contributions withheld through payroll deduction by CPR and Affiliates in each Pay Period shall be remitted by CPR and Affiliates to the Plan Administrator as soon as practicable but not later than the fifth (5) Business Day following the date such withholding is effected. Participant Contributions described in Paragraph 4.4 shall be remitted by CPR to the Plan Administrator no later than the fifth (5) Business Day following the date of the post-dated cheque. All Participant Contributions remitted to the Plan Administrator shall be invested solely in Restricted Shares.

		
	4.11
	Continued Participation in Plan

During any suspension of Participant Contributions under Section 4 a Participant shall remain eligible to receive Company Contributions earned prior to such suspension of Participant Contributions.

Section 5 — Company Contributions to the Plan

		
	5.1
	Company Contributions

In any month during which a Participant has made Participant Contributions, CPR shall remit to the Plan Administrator, in accordance with the provisions of Paragraph 4.10, a Company Contribution out of Profits. Such Company Contribution shall be equal to thirty- three (33%) per cent of the amount of any Participant Contributions being remitted during such period up to six per cent (6%) of Eligible Earnings. For greater certainty, Participant Contributions in excess of six per cent (6%) of Eligible Earnings shall not be eligible      for corresponding Company Contribution.

The vesting of any Shares purchased with such Company Contributions is contingent upon holding the corresponding Restricted Shares within the Participant Account during the vesting period in accordance with Paragraph 8.4. Actual Company Contributions may be reduced from time to time by the value of forfeited Shares in the Plan Reserve. Shares purchased with Participant Contributions in excess of six per cent (6%) of Eligible Earnings shall be deemed to be Unrestricted Shares.

		
	5.2
	Minimum Company Contributions

Notwithstanding Paragraphs 5.1 and the amount of any Participant Contributions, the aggregate amount of Company Contributions out of Profits during any Plan Year shall not be less than the amount of $100 times the total number of Participants in the Plan at the end of that Plan Year.

		
	5.3
	Use of Funds

All Company Contributions shall be invested solely in Unvested Shares.

		
	5.4
	Compliance with Income Tax Act (Canada)

Company Contributions as specified in this Section 5 shall be made in accordance with subsection 144(10) of the Income Tax Act (Canada) or any successor provision.

Section 6 – Asset Fund

		
	6.1
	Assets of the Asset Fund

The Plan Administrator shall receive from CPR, or its Affiliates, the Participant Contributions of all the Participants made in accordance with Section 4 and the Company Contributions made to the Plan in accordance with Section 5. Participant Contributions, Company Contributions, and the Shares acquired therewith and any dividends thereon, from the date of receipt by the Plan Administrator, shall constitute the Asset Fund of the Plan and shall be held, invested, managed, administered and dealt with by the Plan Administrator pursuant to the terms of the Plan.

		
	6.2
	Allocations to Participant Accounts

The Plan Administrator shall maintain a separate Account for each Participant. The Plan Administrator shall credit to the Account of a Participant all Company Contributions made for the benefit of the said Participant, all Participant Contributions made by such Participant, and all Shares acquired therewith. The Plan Administrator shall allocate either absolutely or contingently to each Participant all capital gains realized, and capital losses sustained by the Asset Fund on their Account at such time or times as the Plan Administrator may determine, but in any event, at least annually. The Plan Administrator shall credit to the Plan Reserve all Unvested Shares forfeited by Participants in accordance with Paragraph 8.5.

Section 7 — Investment

		
	7.1
	Acquisition of Shares with Participant Contributions

The Plan Administrator shall use Participant Contributions eligible for Company Contribution to purchase Restricted Shares and shall use Participant Contributions not eligible for Company Contribution to purchase Unrestricted Shares, only on the open market through the Stock Exchange.

The Plan Administrator will purchase the requisite number of Restricted Shares and Unrestricted Shares as soon as practicable, as determined by the Plan Administrator, but in no circumstances less than once per calendar month or any other such period as required by securities legislation, stock exchange rules, or other relevant rules. The Plan Administrator will allocate the Restricted Shares and Unrestricted Shares to the appropriate Participant Accounts after each purchase.

		
	7.2
	Acquisition of Unvested Shares

The Plan Administrator shall use Company Contributions to purchase Unvested Shares on the open market through the Stock Exchange. The Plan Administrator will purchase the requisite number of Unvested Shares as soon as practicable, as determined by the Plan Administrator, but in no circumstances less than once per calendar month or any other such period as required by securities legislation, Stock Exchange rules, or other relevant rules.

		
	7.3
	Number of Shares Purchased

The number of Restricted Shares, Unrestricted Shares and Unvested Shares purchased depends upon the Market Price of the Shares at the time purchases are made and the total amount of contributed funds available for each of the respective purchases. To the extent set forth in Section 10.6, CPR will be responsible for the payment of all brokerage commissions or similar fees incurred in connection with such purchases.

Notwithstanding the provisions of Paragraphs 7.1 and 7.2 and Section 8, the Plan Administrator, in its discretion, may limit the daily volume of its purchases of Shares and sales of Shares or make such purchases and sales over several trading days to the extent that such action is deemed by it to be in the best interests of Participants. Should the purchase or sale of Shares by the Plan Administrator in any given month be at various prices, the Plan Administrator shall establish an average weighted purchase or sale price, as the case may be, applicable for each Share in the relevant month.

		
	7.4
	Registration of Shares

At the time of purchase, all Participants shall acquire beneficial ownership of all Restricted Shares and Unrestricted Shares and of any fractional interest in Restricted Shares and Unrestricted Shares acquired for their Account. Notwithstanding any other provisions of this Plan, no fractional common share certificates will be issued.

All Shares purchased by the Plan Administrator on behalf of a Participant pursuant to this Plan shall be registered in the name of the Plan Administrator, on behalf of such Participant. Provided Unvested Shares have not been forfeited pursuant to Paragraph
8.5 and are governed by the provisions of the Plan, they shall be held by the Plan Administrator on behalf of Participants. All rights and privileges, however, with respect to Shares, including voting rights, shall be exercised by Participants through the Plan Administrator, and any dividends shall be credited to Participant Accounts.

		
	7.5
	Allocation of Shares

Allocations of Restricted Shares and Unrestricted Shares shall be made to each Participant’s Account in proportion to the contributions received in respect of such Participant. Allocations shall be made in whole and fractional Shares. Restricted Shares and Unrestricted Shares purchased with Participant Contributions shall be held for the Account of Participants. Participants shall not be allowed under any circumstance to withdraw a fraction of a Share. The value of any such fractional Share will be paid in cash.

		
	7.6
	Dividends

In the event a cash dividend is paid to holders of Shares, the net amount of such cash dividend attributable to Shares allocated to Plan Accounts, including any Unvested Shares, shall be applied to purchase Unrestricted Shares for the benefit of Participants. The net amount of the cash dividend that is available for the purchase of Shares shall be determined after deduction from the gross amount of the cash dividend of such amount of income and employment tax (if any) as is required to be withheld in accordance with applicable law (including foreign law) to the extent applicable to the Participant in question.

Each Participant shall receive quarterly confirmation from the Plan Administrator, which will include all changes, if any, in the amount of common shares held for the Participant’s Account.

		
	7.7
	Interest

All Participant Contributions and Company Contributions remitted to the Plan Administrator shall, prior to the acquisition of Restricted Shares, Unrestricted Shares or Unvested Shares, earn interest. Any such interest earned on contributions between the time of receipt, by the Plan Administrator, and their subsequent investment in Shares shall be applied to offset Basic Administration Expenses, to the extent possible, in accordance with all applicable laws and regulations.

		
	7.8
	Shares acquired at end of Plan Year

All purchases of Shares with Participant Contributions or Company Contributions made prior to or on the last day of the Plan Year shall be allocated to the Participant in respect of such Plan Year regardless of actual settlement date of such purchase.

Section 8 — Withdrawals/Sales of Shares

		
	8.1
	Sale of Shares

Upon completion and delivery to the Plan Administrator of a completed Withdrawal/Termination Form, a Participant may direct the Plan Administrator to sell some or all of the Unrestricted Shares or Restricted Shares in their Account. Upon such sale, the Plan Administrator shall pay to the Participant an amount equal to the net proceeds from the sale of such Shares. Any fees applicable to the sale of Shares shall be paid by Participants and withheld from settlement of the sale by the Plan Administrator.

For the purpose of the Plan, a Participant shall be deemed to sell all Unrestricted Shares in the Account prior to the sale of Restricted Shares in the Account. For purposes of the Plan, Restricted Shares shall be deemed to be sold on a “first in, first out” basis for purposes of determining forfeiture of Unvested Shares in accordance with Paragraph 8.5.

The price of fractional Shares will be the same as the price of whole Shares. Fractional Shares may only be sold by a Participant upon termination of participation in the Plan.

		
	8.2
	Withdrawal of Shares

Upon completion and delivery to the Plan Administrator of a completed Withdrawal/Termination Form, a Participant may direct the Plan Administrator to withdraw some or all of the Unrestricted Shares and/or Restricted Shares in the Account. Upon such withdrawal, the Plan Administrator shall transfer title and deliver to the Participant those Shares that have been withdrawn at the Participant’s direction. Any fees   applicable to the withdrawal of Shares shall be payable by the Participant and withheld from settlement by the Plan Administrator.

For the purpose of the Plan, a Participant shall be deemed to withdraw the Unrestricted Shares in the Account prior to the withdrawal of Restricted Shares in the Account. For purposes of the Plan, Restricted Shares shall be deemed to be withdrawn on a “first in, first out” basis for purposes of determining forfeiture of Unvested Shares in accordance with Paragraph 8.5. The price of fractional Shares will be the same as the price of whole Shares. Fractional Shares may only be withdrawn by a Participant upon termination of participation in the Plan.

		
	8.3
	Restriction on Sale and Withdrawal

A Participant may not direct the Plan Administrator to sell or withdraw any Unvested Shares. In the event a Participant sells or withdraws any Restricted Shares, the Participant shall forfeit all Unvested Shares contingent on such Restricted Shares in accordance with Paragraph 8.5.

Should a Participant make more than two (2) transactions being either a sale or withdrawal during a Plan Year such Participant shall be suspended from contributing to the Plan for a period of six (6) consecutive months from the date of such transaction, provided that the foregoing restriction shall not apply to Unrestricted Shares for which there were no corresponding Unvested Shares purchased with a Company Contribution. For greater certainty, any Unrestricted Shares purchased on behalf of a participant with Participant Contributions in excess of six per cent (6%) of Eligible Earnings may be sold or withdrawn by the Participant at any time without suspension of Participant from contributing to the Plan.

The Participant shall have the option of resuming Participant Contributions in accordance with the provisions of Paragraph 4.8 as if the suspension were deemed to be a voluntary suspension.

		
	8.4
	Vesting of Unvested Shares

All Unvested Shares shall immediately vest to become Unrestricted Shares on the first day of the calendar quarter after a holding period of four (4) consecutive full calendar quarters has passed subsequent to their purchase provided that the corresponding Restricted Shares upon which the Unvested Shares are contingent have, at all times during this period, been held for the Account of the Participant. Upon vesting of Unvested Shares all Restricted Shares upon which such Unvested Shares were contingent shall immediately become Unrestricted Shares.

		
	8.5
	Forfeiture of Unvested Shares

In the event a Participant chooses to sell or withdraw any Restricted Shares, such Participant shall forfeit all Unvested Shares contingent on such Restricted Shares and shall not be entitled to title to, or any proceeds of, such sale. Such Unvested Shares shall be credited to the Plan Reserve and may be utilized to satisfy future Company Contributions.

		
	8.6
	Compliance with Securities Laws

Any sale, withdrawal or other transfer of Shares pursuant to the Plan may only be made in compliance with applicable securities laws and Stock Exchange rules.

Section 9 –Termination of Participation in the Plan

		
	9.1
	Voluntary Termination of Participation

Participants may, at their discretion, terminate their participation in the Plan at any time by providing to the Plan Administrator a Termination/Withdrawal Form. The termination will be implemented as soon as practicable once the completed Termination/Withdrawal Form is received and processed by both the Plan Administrator and CPR. Upon such termination the Participant’s Account will be closed by the Plan Administrator in accordance with the provisions of Paragraph 9.3.

		
	9.2
	Automatic Termination

The Plan Administrator shall, on behalf of CPR, terminate the participation in the Plan of any Participant who has had nil (zero) balances or has not made any Participant Contributions for a consecutive period exceeding four (4) consecutive full calendar quarters unless stated otherwise. The Plan Administrator shall monitor Participants who have not made contributions for such period and will, on behalf of CPR, terminate the participation in the Plan of such Participants. In the event of such termination the closure of the Participant’s Account shall be handled in accordance with the provisions of Paragraph 9.3.

Dividends received within the period as a result of Share holdings within the Account do not qualify as contributions for the purposes of determining inactivity.

		
	9.3
	Account Closure Upon Termination

Upon the termination of a Participant’s participation in the Plan for any reason the Plan Administrator will effect the closure of the Participant’s Account and shall either transfer and deliver or sell all of the Unrestricted Shares and Restricted Shares in the Participant’s Account, at the option of the Participant, or Legal Representative in the event of death of the Participant. The transfer and delivery of the Shares or payment of the net proceeds of sale, as the case may be, shall be effected as soon as practicable but in no event later than thirty (30) days from the date the Plan Administrator receives notification of such termination. Any fees applicable to the issuance of share certificates or the sale transaction will be payable by the Participant, or the Participant’s estate in the event of death of the Participant and shall be withheld from settlement by the Plan Administrator.

If the Participant or Legal Representative fails to make an election, or if no Legal Representative comes forward to CPR, within ninety (90) calendar days of the termination of the Participant’s participation in the Plan, the Plan Administrator shall issue a share certificate for all whole Shares recorded in such Account, plus a cash payment equal to the value of any fraction of a Share. The Plan Administrator shall send the  share certificate and any cash payment to the last known address of such Participant or Legal Representative, as the case may be.

The Participant shall not be entitled to title to, or proceeds of, sale of their Unvested Shares. Such Shares shall be credited to the Plan Reserve and may be utilized to satisfy future Company Contributions.

In the event of a transfer and delivery of Shares, the Plan Administrator will issue a share certificate for all whole Shares recorded in a Participant’s Account, plus a cash payment equal to the value of any fraction of a Share as determined in accordance with the provisions of Paragraph 8.2.

The Plan Administrator shall send a written letter of confirmation of termination from the Plan to the Participant where applicable as soon as practicable.

		
	9.4
	Rejoining the Plan

Any former Participant who chooses to re-join the Plan will be subject to a mandatory six
(6) month waiting period prior to re-enrolment. The Plan Administrator will keep track of such period and will, on behalf of CPR, re-enrol any former Participant who has completed such waiting period and submits a new Enrolment/Change Form as per Section 3. The re-enrolment of such Participant shall be effected as soon as practicable once the completed Enrolment/Change Form is received and processed by both the Plan Administrator and CPR.

		
	9.5
	Resignation or Termination for Cause

In the event that the employment of a Participant is terminated for cause or a Participant resigns, such Participant’s participation in the Plan shall be terminated on the termination or resignation date, as the case may be. Upon notification of a termination or resignation the Plan Administrator shall effect the closure of the Participant’s Account in accordance with Paragraph 9.3.

		
	9.6
	Termination in other circumstances

In the event of the death, Retirement or involuntary termination without cause of a Participant, such Participant’s participation in the Plan will be terminated effective on the date of death or the date of retirement or termination, as the case may be. Upon notification of such termination, the Plan Administrator shall effect the closure of the Participant’s Account in accordance with Paragraph 9.3 with the exception that all Unvested Shares shall vest immediately and all proceeds or title shall accrue to the benefit of the Participant.

		
	9.7
	Company Contributions Upon Certain Terminations

In the event of the death, Retirement or involuntary termination without cause of a Participant, CPR or the relevant Affiliate shall, not later than thirty (30) days following receipt of satisfactory evidence of death, Retirement or involuntary termination without cause remit to the Plan Administrator for the benefit of such Participant, any outstanding Company Contribution in accordance with Sections 5 and 8 and any such Company Contributions previously remitted, but not yet allocated for the benefit of the Participant, shall be immediately so allocated.

Section 10 — Administration of the Plan

		
	10.1
	Responsibility for Administration

CPR will be responsible for the administration of the Plan and for the interpretation of its provisions. Where any reference in the Plan is made to any action to be taken, consent, approval or opinion to be given, direction or decision to be exercised or made by CPR, it shall be read as Canadian Pacific Railway Limited acting directly or through its subsidiaries and through their authorized officers or any other person authorized by the Board, where required for the purposes of the Plan.

		
	10.2
	Maintenance of Records

The Plan Administrator will maintain records of the Plan Accounts held in the name of each Participant and all transactions with respect to such Plan Accounts, including a record of whole and fractional Shares allocated, the dates of allocation and the price at which such allocations are made and shall hold, for a period mutually agreed upon by CPR and the Plan Administrator, all forms of authorization and designation, as specified by CPR from time to time, submitted by CPR employees.

		
	10.3
	Appointment of Plan Administrator

CPR shall appoint (and by their participation in the Plan, Participants authorize CPR to appoint) one or more. Plan Administrators to perform such functions as may be specified in the Administrative Agreement(s). Any reference in the Plan to the purchase or sale of Shares by the Plan Administrator shall be read to include the purchase or sale of Shares effected through such broker(s) or agent(s) as may be appointed by the Plan Administrator from time to time.

		
	10.4
	Rules and Procedure

CPR may from time to time adopt rules and procedures in respect of the administration of the Plan, provided that all such rules and procedures shall be consistent with the provisions of the Plan as in effect from time to time. Such rules and procedures may vary for different employees. The rules and procedures shall be binding on all Participants and Eligible Employees in respect of whom such rules and procedures are applicable.

		
	10.5
	Delegation of Administrative Responsibilities

CPR may delegate to third parties, including the Plan Administrator, the whole or any part of the administration of the Plan and shall determine the scope of such delegation in its sole discretion. Any decision taken by CPR or its delegate in carrying out responsibilities with respect to the administration of the Plan, including the interpretation or application of any rules or procedures adopted, pursuant to Paragraph 11.1, shall be final and binding on the Participants and their beneficiaries.

		
	10.6
	Costs and Expenses

CPR shall pay net Basic Administration Expenses in connection with the operation of the Plan as determined by CPR. Basic Administration Expenses shall be reduced, to the

extent possible, by the amount of any interest earned on contributed funds, prior to their investment in Shares, in accordance with Paragraph 7.7. All fees exclusive of Basic Administration Expenses, including, without limitation, any brokerage or other charges in connection with the sale of Shares, issuance of share certificates or transfer of Shares shall be payable by the Participant in accordance with Section 8. Any fees charged in connection with the Participant’s use of the Plan Administrator’s service call centre shall be payable by the Participant.

		
	10.7
	Participant Statements

Each Participant shall receive from the Plan Administrator a statement at the end of each calendar quarter (or such other times as may be determined by CPR), which statement shall contain such information in respect of such Participant’s Plan Accounts as CPR may determine from time to time or as otherwise may be required by law (including foreign law) to the extent applicable to the Participant in question.

Should a Participant request an up-to-date statement of account, such statement may be made available at such other time as may be agreed upon between CPR and the Plan Administrator.

		
	10.8
	Reports and Voting Rights

The Plan Administrator shall furnish or cause to be furnished to each Participant who has Shares allocated in any Plan Account a copy of all notices sent to shareholders in respect of shareholder meetings at which the Shares are entitled to be voted and shall request from each such Participant instructions as to the voting at such meeting of the aggregate number of the Participant’s whole Shares allocated to the Participant’s Account on the record date of such meeting. If the Participant furnishes such instructions to the Plan Administrator on a timely basis, the Plan Administrator shall vote such number of whole Shares in accordance with the instructions of the Participant. If the Participant fails to furnish timely instructions to the Plan Administrator, the Plan Administrator shall not vote the Participant’s whole Shares. The Plan Administrator shall not vote any fractional Shares allocated to Participant’s Plan Accounts and shall not vote any Shares not allocated to Participant Accounts as of the record date. The Plan Administrator shall keep confidential the voting instructions of the Participants and shall not disclose the same to CPR except to the extent required by law.

Section 11 — Plan Amendment and Termination

		
	11.1
	Plan Amendment

CPR reserves the right to amend the Plan, in whole or in part, at any time at its discretion without the consent of Participants, provided that no such amendment shall have the effect of reducing any benefits accrued to any Participant as of the date of amendment.

		
	11.2
	Plan Termination

CPR reserves the right to terminate the Plan at any time, in which event Participants’ rights will be governed by Paragraph 9.6 as if the Participants’ Retirements had all occurred on the date of the termination of the Plan. Any amount remaining in the Plan

Reserve after the Participants have been allocated the amounts required pursuant to Paragraph 9.6 shall revert to CPR.

		
	11.3
	Plan Administrator Duties

No amendment, change, or modification shall be made to the Plan that will alter the duties of the Plan Administrator, without CPR’s and the Plan Administrator’s written consents.

		
	11.4
	The Plan Administrator

CPR, as agent for each Participant, may at any time remove the Plan Administrator and appoint a successor or successors to fill any vacancy arising for any reason whatever. The Plan Administrator may, with CPR’s written approval, delegate to any corporation authorized to carry on the business of a trust company in Canada, or the US, the duty to maintain records and to furnish statements in connection with all aspects of the Plan.
The Plan Administrator shall be indemnified and held harmless by CPR against and from any and all loss, cost, liability or expense resulting from any claim, action, suit or proceeding to which it may be a party or in which it may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by it in any settlement thereof (with CPR’s written approval) or paid by it in satisfaction of a judgment in any such action, suit or proceeding against it. The Plan Administrator shall in writing give CPR a reasonable opportunity, at CPR’s expense, to handle and defend such action within a time frame to be specified by the Plan Administrator, before the Plan Administrator undertakes to handle and defend such claim, action, suit or proceeding on its own behalf. CPR and the Participants shall be indemnified and held harmless by the Plan Administrator against and from any and all loss, cost, liability or expense resulting from the willful misconduct, negligence or bad faith of the Plan Administrator or of any person (other than CPR) to which the Plan Administrator has delegated any of its duties hereunder.

Section 12 — Market Fluctuation

CPR makes no representations or warranties to Participants with respect to the Plan or the Shares whatsoever. CPR shall not indemnify any Participant under the Plan against loss resulting from fluctuations in the price of Shares. Participants are expressly advised that all Participant Contributions and Company Contributions will be invested in Shares and the value of any Participant’s Shares in the Plan will fluctuate as the trading price of the Shares fluctuates.

In seeking the benefits of participation in the Plan, a Participant solely accepts the risk of a decline in the market price of Shares in the Participant’s Account.

Section 13 — Income Taxes

CPR and Participants acknowledge that sale of Shares by a Participant may result in income tax consequences including, without limitation, a taxable capital gain, or an allowable capital loss to the Participant under Canadian tax law.

Participants shall be responsible to pay any and all income taxes resulting from participation in the Plan or the sale of Shares, including without limitation:

		
	a)
	taxes from a capital gain;

		
	b)
	taxes from the payment and receipt of dividends;

		
	c)
	taxes from Company Contributions or the payment by CPR of brokerage or other fees where deemed under applicable law to be a taxable benefit to the Participant.

CPR shall have the right to withhold from any payment, including any payment of Eligible Earnings or other earnings, sufficient amounts to cover required withholding and income or employment taxes with respect to the Plan. If a Participant, including an Eligible Bargaining Unit Representative, does not have sufficient earnings available from which CPR can make any required withholdings, CPR may condition the allocation of Unvested Shares to the Account of the Participant on the receipt of the amount required for CPR to meet its withholding obligations, or may instruct the Plan Administrator to reduce the amount otherwise allocated to the Participant (or sell Shares allocated to the Participant on behalf of the Participant) and remit to CPR the amount required to meet CPR’s withholding obligation (and any balance to the Participant). The provisions of Paragraphs
8.1 and 8.3 shall govern any sale of Shares pursuant to this Section.

Participants are expressly advised that US and Canadian tax laws are complex and subject to change and each Participant is solely responsible to contact his or her own accountant, legal representative or qualified financial advisor to determine what current effect any applicable tax legislation may have with respect to his or her participation in the Plan or the sale of Shares and to determine any tax consequences.

The Plan Administrator will provide all Participants with all appropriate tax forms and receipts.

Section 14 — No Trading on Undisclosed Information

No Participant shall in any manner participate in the trading of Shares based upon insider or undisclosed material corporate information as prohibited by law. Any trading based   on undisclosed material information by Participants may be subject to prosecution and may result in discipline by CPR up to and including termination of a Participant’s employment with CPR. Participants should consult the Insider Trading Policy of CPR available from CPR.

Section 15 — General Provisions

		
	15.1
	No Additional Rights to Employment

		
	(a)
	The opportunity to participate in this Plan does not constitute a contract of employment, nor does the existence of a contract of employment between any person and CPR give such person any right or entitlement to participate in the Plan or any expectation that an opportunity to participate in the Plan will be offered to the person subject to any conditions or at all.

		
	(b)
	The rights and obligations of a Participant under the terms of any contract of employment with CPR shall not be affected by participation in this Plan.

		
	(c)
	The opportunity to acquire Shares pursuant to the Plan shall not afford a Participant or any Eligible Employee any rights or additional rights to compensation or damages in consequence of the loss or termination of the Participant's office or employment with CPR for any reason whatsoever.

(d)A Participant shall not be entitled to any compensation for damages for any loss or potential loss which they may suffer by reason of being or becoming unable to acquire Shares under the Plan in consequence of the loss or termination of his or her office or employment with CPR for any reason (including, without limitation, any breach of contract by CPR) or in any other circumstances whatsoever.

		
	15.2
	Employee Eligibility

CPR reserves the right to restrict participation in the Plan to any employee or employee groups at any time in its sole discretion, including, but not limited to, the right to refuse to offer employees or employee groups the opportunity to participate in the Plan in any jurisdiction where operating the Plan in such jurisdiction or in respect of such employees is or becomes onerous (including, without limitation, having regard to the costs involved), impossible, illegal or impracticable, as determined by CPR in its sole discretion.

		
	15.3
	Liability

No Participant shall make any claim or demand against CPR or the Plan Administrator and Participants agree and acknowledge that CPR and the Plan Administrator shall not be liable with respect to:

		
	(a)
	the performance of Shares on the Stock Exchange at or during any period of time;

		
	(b)
	changes in the local currency value of Shares held by a Participant, where applicable, resulting from fluctuations in the exchange rates between the Canadian dollar and any other currency;

		
	(c)
	income taxes payable in respect of the Plan, except to the extent that:

		
	(i)
	CPR withholds any such amounts either from a Participant's Eligible Earnings, other earnings, or payments under the Plan; or

		
	(ii)
	CPR (but not the employee) is liable for such payment under applicable law.

		
	15.4
	Participant’s Agreement to be bound by Plan Terms

Participation in the Plan by any Participant shall be construed as acceptance by the Participant of the terms and conditions of the Plan and all rules and procedures adopted hereunder and as amended from time to time, and as the Participant's agreement to be bound thereby.

		
	15.5
	Indemnification

By electing to participate in the Plan a Participant agrees to indemnify:

		
	(a)
	CPR; and

		
	(b)
	the Plan Administrator; and

		
	(c)
	any other person who is or becomes liable to account for tax, social security contributions or any other regulatory or statutory contributions on behalf of the Participant against any amount of or representing tax, or any other regulatory or statutory contributions for which CPR (or such other person) is liable to account in respect of or in consequence of the facilitation of Participant Contributions, for the benefit of such Participant and which (as between the Participant and CPR or such other person) is the liability of the Participant but which CPR or such other person cannot otherwise lawfully recover from the Participant (whether by way of deduction from payroll or otherwise).

		
	15.6
	Assignment Exemption from Seizure and Bankruptcy

Except as may otherwise be specifically provided by applicable law, no right of a person under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge and any attempt by anyone to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void, and any Shares or money to which any person is entitled under the Plan are exempt from execution, seizure and attachment. Any Shares withdrawn from any Plan Account may only be transferred (including any transfer pursuant to Paragraph 8.2) in accordance with applicable securities laws.

If, notwithstanding the foregoing, a Participant is deprived by applicable law of interests in Shares or ceases to retain beneficial interest in the Shares, then all rights under the Plan will cease forthwith and no further Shares will be allocated under the Plan to that Participant.

		
	15.7
	Share Certificates

Share certificates, if issued pursuant to any provision of the Plan, shall bear any legend that is necessary or is deemed advisable in order to comply with applicable securities laws, including any legends referring to restrictions on transfer in any jurisdiction.

		
	15.8
	Physical, Mental or Legal Incapacity of the Participant

If any payment is to be made under the Plan to a minor or other person who is physically, mentally or legally incompetent, the Plan Administrator shall pay the same to the parent or guardian or other person having legal custody of, or being the legally appointed representative of, such person, to be applied by such parent, guardian, person having custody or legally appointed representative for the benefit of such person, without the Plan Administrator being further liable to see to the application thereof and so that any such payment shall be a complete discharge of any liability under the Plan  and of CPR.

		
	15.9
	Governing Law and Compliance with Laws

The Plan shall be governed by and construed in accordance with the laws of the province of Alberta, Canada. Notwithstanding any provision of this Plan, CPR shall operate        the Plan in compliance with all applicable laws and regulations of all jurisdictions where CPR has, in accordance with the terms of this Plan, decided to offer the Plan.

		
	15.10
	Discretionary Relief

Notwithstanding any other provision of the Plan, CPR may, at its discretion, waive any condition of the Plan if specific individual circumstances warrant such waiver.

AMENDMENT  TO
CANADIAN PACIFIC RAILWAY LIMITED EMPLOYEE SHARE PURCHASE PLAN (CANADA)

Amendment to Plan terms and conditions effective as of January 1, 2013

WHEREAS , Canadian Pacific Railway Limited (the "Company") and certain of its majority controlled subsidiaries have adopted the Canadian Pacific Railway Limited Employee Share Purchase Plan (Canada) (the "ESPP" or "Plan");

AND WHEREAS , effective April 3,  2009 the ESPP was amended to suspend the Company's match;

AND WHEREAS , effective January 1, 2010 the  ESPP was amended to restore the Company's match for Canadian non-union employees (despite a typo in the amendment document dated December 22, 2009 which inadvertently and incorrectly referred to US employees (the "2009 Amendment")) ;

AND WHEREAS , on December 22, 2011 the President and CEO authorized the restoration of the Company's match for Participants who are members of TC local 1976 of the United Steelworkers bargaining unit, with such match to vest only after eight (8) calendar quarters.

AND WHEREAS , the ESPP was amended effective January 6, 2012 as follows :

		
	1.
	The 2009 Amendment is hereby corrected, with retroactive effect, to change the words "the US" to "Canada".

		
	2.
	Section 5. Company Contributions. Effective for Participant Contributions made January 6, 2012 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part­ time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the  TC local 1976 of the United Steelworkers  bargaining unit, the Company  Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan. For purposes of Section 5.1, a "Participant" shall continue to not  include  any  other  Eligible  Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible  Bargaining Unit.

		
	3.
	Section 8. Withdrawal/Sale of Shares. Effective January 6, 2012 and thereafter , for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time , part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4).

		
	4.
	Section 9.7. Company Contributions upon Certain Terminations. The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

NOW, THEREFORE , the  ESPP is hereby  amended  effective January  1, 2013 as follows:

		
	1.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 1, 2013 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time , part­ time or  seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the Canadian Pacific Police Association, International Brotherhood Electrical Workers, Teamsters Canada Rail Conference Maintenance of Way Employees Division, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan. For purposes of Section 5.1, a "Participant" shall continue to include bargaining unit members as amended December 22,  2011  but does not include any other Eligible Bargaining Unit Representative or regular full-time , part-time or seasonal employee in an Eligible Bargaining Unit.

		
	2.
	Section 8. Withdrawal/Sale of Shares. Effective January 6, 2012 and thereafter , for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4).

		
	3.
	Section 9.7. Company Contributions upon Certain Terminations. The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions  under paragraph  1 of this Amendment.

In all further respects the Plan will remain in full force and effect.

CANADIAN PACIFIC RAILWAY LIMITED

Dated: January 3, 2013                      By: /s/ Peter Edwards
                                                                            Peter Edwards
Vice President, Human
                                                                          Resources and Industrial Relations

AMENDMENT
TO 
CANADIAN PACIFIC RAILWAY LIMITED
EMPLOYEE SHARE PURCHASE PLAN (CANADA)

Amendment to Plan terms and conditions effective as of November 5, 2013.

WHEREAS, Canadian Pacific Railway Limited (the “Company”) and certain of its majority controlled subsidiaries have adopted the Canadian Pacific Railway Limited Employee Share Purchase Plan (Canada) (the “ESPP” or “Plan”);

AND WHEREAS, effective April 3, 2009 the ESPP was amended to suspend the Company’s match;

AND WHEREAS, effective January 1, 2010 the ESPP was amended to restore the Company’s match for Canadian non-union employees (despite a typo in the amendment document dated December 22, 2009 which inadvertently and incorrectly referred to US employees (the “2009 Amendment”));

AND WHEREAS, on December 22, 2011 the President and CEO authorized the restoration of the Company’s match for Participants who are members of TC local 1976 of the United Steelworkers bargaining unit, with such match to vest only after eight (8) calendar quarters.

AND WHEREAS, the ESPP was amended effective January 6, 2012 as follows:

		
	1.
	The 2009 Amendment is hereby corrected, with retroactive effect, to change the words “the US” to “Canada”.

		
	2.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 6, 2012 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the TC local 1976 of the United Steelworkers bargaining unit, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	3.
	Section 8. Withdrawal/Sale of Shares.  Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested 

Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4).

		
	4.
	Section 9.7. Company Contributions upon Certain Terminations.  The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

AND WHEREAS, the ESPP is hereby amended effective January 1, 2013 as follows:

		
	1.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 1, 2013 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the Canadian Pacific Police Association, International Brotherhood Electrical Workers, Teamsters Canada Rail Conference Maintenance of Way Employees Division, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to include bargaining unit members as amended December 22, 2011 but does not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	2.
	Section 8. Withdrawal/Sale of Shares.  Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4).

		
	3.
	Section 9.7. Company Contributions upon Certain Terminations.  The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

NOW, THEREFORE, the ESPP is hereby amended effective November 5, 2013 as follows:

		
	1.
	The January 1, 2013 amendment is hereby corrected, with retroactive effect, to change the vesting period of the Company’s match for a CPR employee in Canada who is a member of International Brotherhood Electrical Workers (IBEW) bargaining unit.

		
	2.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 1, 2013 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the Canadian Pacific Police Association, 

International Brotherhood Electrical Workers, Teamsters Canada Rail Conference Maintenance of Way Employees Division, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to include bargaining unit members as amended December 22, 2011 but does not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	3.
	Section 8. Withdrawal/Sale of Shares Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4), notwithstanding the above, members of the IBEW shall be four (4) consecutive full calendar quarters instead of eight (8).

		
	4.
	Section 9.7. Company Contributions upon Certain Terminations.  The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

In all further respects the Plan will remain in full force and effect.

CANADIAN PACIFIC RAILWAY LIMITED

By:  /s/ Peter Edwards
Peter Edwards 
Vice President, Human 
Resources and Industrial Relations
                     
                     

AMENDMENT
TO 
CANADIAN PACIFIC RAILWAY LIMITED
EMPLOYEE SHARE PURCHASE PLAN (CANADA)

Amendment to Plan terms and conditions effective as of July 17, 2014.

WHEREAS, Canadian Pacific Railway Limited (the “Company”) and certain of its majority controlled subsidiaries have adopted the Canadian Pacific Railway Limited Employee Share Purchase Plan (Canada) (the “ESPP” or “Plan”);

AND WHEREAS, effective April 3, 2009 the ESPP was amended to suspend the Company’s match;

AND WHEREAS, effective January 1, 2010 the ESPP was amended to restore the Company’s match for Canadian non-union employees (despite a typo in the amendment document dated December 22, 2009 which inadvertently and incorrectly referred to US employees (the “2009 Amendment”));

AND WHEREAS, on December 22, 2011 the President and CEO authorized the restoration of the Company’s match for Participants who are members of TC local 1976 of the United Steelworkers bargaining unit, with such match to vest only after eight (8) calendar quarters.

AND WHEREAS, the ESPP was amended effective January 6, 2012 as follows:

		
	1.
	The 2009 Amendment is hereby corrected, with retroactive effect, to change the words “the US” to “Canada”.

		
	2.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 6, 2012 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the TC local 1976 of the United Steelworkers bargaining unit, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	3.
	Section 8. Withdrawal/Sale of Shares.  Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4).

		
	4.
	Section 9.7. Company Contributions upon Certain Terminations.  The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

AND WHEREAS, the ESPP was amended effective January 1, 2013 as follows:

		
	1.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 1, 2013 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the Canadian Pacific Police Association, International Brotherhood Electrical Workers, Teamsters Canada Rail Conference Maintenance of Way Employees Division, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to include bargaining unit members as amended December 22, 2011 but does not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	2.
	Section 8. Withdrawal/Sale of Shares.  Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4).

		
	3.
	Section 9.7. Company Contributions upon Certain Terminations.  The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

AND WHEREAS, the ESPP was amended effective November 5, 2013 as follows:

		
	1.
	The January 1, 2013 amendment is hereby corrected, with retroactive effect, to change the vesting period of the Company’s match for a CPR employee in Canada who is a member of International Brotherhood Electrical Workers (IBEW) bargaining unit.

		
	2.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 1, 2013 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the Canadian Pacific Police Association, International Brotherhood Electrical Workers, Teamsters Canada Rail Conference Maintenance of Way Employees Division, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to include bargaining unit members as amended December 22, 2011 but does not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	3.
	Section 8. Withdrawal/Sale of Shares Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4), notwithstanding the above, members of the IBEW shall be four (4) consecutive full calendar quarters instead of eight (8).

		
	4.
	Section 9.7. Company Contributions upon Certain Terminations.  The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

NOW, THEREFORE, the ESPP is hereby amended effective July 17, 2014, as follows:

		
	1.
	Section 5. Company Contributions.  Effective for Participant Contributions made January 1, 2013 and thereafter by a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, in each case provided such person is a member of the Canadian Pacific Police Association, International Brotherhood Electrical Workers, Teamsters Canada Rail Conference Maintenance of Way Employees Division, Teamsters Canada Rail Conference - Rail Traffic Controllers, the Company Contribution shall be restored in accordance with Section 5.1 Company Contributions as in effect prior to the April 2009 amendment to the Plan.  For purposes of Section 5.1, a “Participant” shall continue to include bargaining unit members as amended December 22, 2011 but does not include any other Eligible Bargaining Unit Representative or regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit.

		
	2.
	Section 8. Withdrawal/Sale of Shares.  Effective January 6, 2012 and thereafter, for a CPR employee in Canada who is an Eligible Bargaining Unit Representative or a regular full-time, part-time or seasonal employee in an Eligible Bargaining Unit, the holding period in Section 8.4 for Unvested Shares purchased after such date shall be eight (8) consecutive full calendar quarters instead of four (4), notwithstanding the above, members of the IBEW shall be four (4) consecutive full calendar quarters instead of eight (8).

		
	3.
	Section 9.7. Company Contributions upon Certain Terminations. The suspension of this Section is hereby lifted with respect to Participants eligible for the restoration of Company Contributions under paragraph 1 of this Amendment.

In all further respects the Plan will remain in full force and effect.

CANADIAN PACIFIC RAILWAY LIMITED

By:  /s/ Peter Edwards 
Peter Edwards 
Vice President, Human 
Resources and Industrial Relations

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