Document:

EX-4.1

 Exhibit 4.1 

CANOPY GROWTH CORPORATION 

AMENDED AND RESTATED OMNIBUS INCENTIVE PLAN 
  

	Section 1.	 Purpose. 

The purpose of the Amended and Restated Canopy Growth Corporation Omnibus Incentive Plan is to attract, retain and reward those employees, directors and other
individuals who are expected to contribute significantly to the success of the Corporation and its Affiliates, to incentivize such individuals to perform at the highest level, to strengthen the mutuality of interests between such individuals and the
Corporation’s shareholders and, in general, to further the best interests of the Corporation and its shareholders. The Plan is intended to comply with Section 422 of the Code (as defined below), with respect to the U.S. employees
participating in the Plan, if and when applicable. 
  

	Section 2.	 Definition. 

As used in the Plan, the following terms shall have the meanings set forth below: 
  

	(a)	 “Affiliate” shall mean: (i) any entity that, directly or indirectly, controls (as well as
is controlled by or under common or joint control with) the Corporation; or (ii) any entity in which the Corporation has a significant equity interest, in either case as determined by the Committee; provided that, unless otherwise determined by
the Committee, the Shares subject to any Options or SAR that are granted to a service provider of an Affiliate constitutes “service recipient stock” for purposes of Section 409A of the Code or otherwise does not subject the Award to
the excise tax under Section 409A of the Code, provided that in respect of any Option granted to a Canadian Grantee, an Affiliate shall only include a corporation that deals at non-arm’s length,
within the meaning of the ITA, with the Company, and further provided that, in respect of any Deferred Share Unit granted to a Canadian Grantee, an Affiliate shall only include a corporation that is related to the Corporation, within the meaning of
the ITA. 

  

	(b)	 “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, Deferred Stock Unit, annual or long-term Performance Award or Other Stock-Based Award granted under the Plan, which may be denominated or settled in Shares, cash or in such other forms as provided for herein. 

 

	(c)	 “Award Agreement” shall mean the agreement (whether in written or electronic form) or other
instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant. 

  

	(d)	 “Beneficiary” shall mean a person or persons entitled to receive payments or other benefits or
exercise rights that are available under the Plan in the event of the Participant’s death. If no such person is named by a Participant, such individual’s Beneficiary shall be the individual’s estate. 

 

	(e)	 “Blackout Period” means a period when the Participant is prohibited from trading in the
Corporation’s securities pursuant to securities regulatory requirements or the Corporation’s insider trading policy or other applicable policy or requirement of the Corporation. 

 

	(f)	 “Board” shall mean the board of directors of the Corporation. 

 

	(g)	 “Canadian Award” shall mean an Award pursuant to which, as applicable: (i) the Exercise
Price 

	 	
is stated and payable in Canadian dollars or the basis upon which it is to be settled (whether in cash or in Shares) is stated in Canadian dollars); (ii) in the case of freestanding SARs (as
defined below), the base price is stated in Canadian dollars and any cash amount payable in settlement thereof shall be paid in Canadian dollars; (iii) in the case of Restricted Share Units, Deferred Share Units or Performance Awards, any cash
amount payable in settlement thereof shall be paid in Canadian dollars; or (iv) in the case of Other Stock-Based Awards the price or value of such Shares is stated in Canadian dollars. 

 

	(h)	 “Canadian Grantee” shall mean a Participant who is a resident of Canada for the purposes of
the ITA, or who is granted an Award under the Plan in respect of services performed in Canada for the Company or any of its Affiliates. 

  

	(i)	 “Cashless Exercise” shall have the meaning set out in Section 6(e) hereof.

  

	(j)	 “Change in Control” shall mean the occurrence of: 

 

	 	•	 	 any individual, entity or group of individuals or entities acting jointly or in concert (other than the
Corporation, its Affiliates or an employee benefit plan or trust maintained by the Corporation or its Affiliates, or any company owned, directly or indirectly, by the shareholders of the Corporation in substantially the same proportions as their
ownership of Shares of the Corporation) acquiring beneficial ownership, directly or indirectly, of more than 50% of the combined voting power of the Corporation’s then outstanding securities (excluding any “person” who becomes such a
beneficial owner (x) in connection with a transaction described in clause (A) of paragraph (ii) below; 

  

	 	•	 	 the consummation of (A) a merger or consolidation of the Corporation or any direct or indirect subsidiary of
the Corporation with any other corporation, other than a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior to such merger or consolidation continuing to represent (either by
remaining outstanding or being converted into voting securities of the surviving entity or any parent thereof) more than 30% of the combined voting power or the total fair market value of the securities of the Corporation or such surviving entity or
any parent thereof outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to implement a recapitalization of the Corporation (or similar transaction) in which no person (other than
those covered by the exceptions in paragraph (i) of this definition) acquires more than 50% of the combined voting power of the Corporation’s then outstanding securities shall not constitute a Change in Control of the Corporation; or

  

	 	•	 	 a complete liquidation or dissolution of the Corporation or the consummation of any sale, lease, exchange or
other transfer (in one transaction or a series of transactions) of all or substantially all of the assets of the Corporation; other than such liquidation, sale or disposition to a person or persons who beneficially own, directly or indirectly, more
than 30% of the combined voting power of the outstanding voting securities of the Corporation at the time of the sale. 

  

	 	•	 	 Notwithstanding the foregoing, with respect to any Award that is characterized as “nonqualified deferred
compensation” within the meaning of Section 409A of the Code, an event shall not be considered to be a Change in Control under the Plan for 

	 	 
purposes of payment of such Award unless such event is also a “change in ownership,” a “change in effective control” or a “change in the ownership of a substantial
portion of the assets” of the Corporation within the meaning of Section 409A of the Code. 

  

	(k)	 “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to time. Any
reference to any section of the Code shall also be a reference to any successor provision and any treasury regulation promulgated thereunder. 

  

	(l)	 “Committee” shall mean the Corporation’s Compensation and Governance Committee appointed
by the Board or such other committee as may be designated by the Board to administer the Plan. If the Board does not designate the Committee, references herein to the “Committee” shall refer to the Board. 

 

	(m)	 “Consultant” means a consultant as defined in section 2.22 of National Instrument 45-106 Prospectus Exempt Distributions engaged by the Corporation or its Affiliates and shall only include those persons who may participate in an “Employee Benefit Plan” as set forth in Rule
405 of the U.S. Securities Act. 

  

	(n)	 “Corporation” shall mean Canopy Growth Corporation. 

 

	(o)	 “Covered Employee” means an individual who is (i) a “covered employee” within
the meaning of Section 162(m)(3) of the Code, or any successor provision thereto and (ii) any individual who is designated by the Committee, in its discretion, at the time of any Award or at any subsequent time, as reasonably expected to
be a “covered employee” with respect to the taxable year of the Corporation in which any applicable Award will be paid. 

  

	(p)	 “Deferred Stock Unit” shall mean a contractual right to receive Shares or other Awards or a
combination thereof at the end of a specified deferral period, granted under Section 9. 

  

	(q)	 “Dividend Equivalent” means a right, granted to a Participant under the
plan, to receive cash, shares, other Awards or other property equal in value to dividends paid with respect to Shares. 

  

	(r)	 “Effective Date” shall mean June 13, 2018. 

 

	(s)	 “Fair Market Value” means, for purposes of the Plan, unless otherwise required by any
applicable provision of the Code, any regulations issued thereunder or other applicable law or by any applicable accounting standard for the Corporation’s desired accounting for Awards or by the rules of the applicable Stock Exchange, a price
that is determined by the Committee, provided that such price cannot be less than: 

  

	 	i.	 For Canadian Awards, as long as Shares are listed on the TSX, the greater of the volume weighted average
trading price of the Shares on the TSX for the five trading days immediately prior to the grant date or the closing price of the Shares on the TSX on the trading day immediately prior to the grant date. 

 

	 	ii.	 For U.S. Awards, as long as the Shares are listed on a U.S. Exchange, the greater

	 	
of the volume weighted average trading price of the Shares on the U.S. Exchange for the five trading days immediately prior to the grant date or the closing price of the Shares on the U.S.
Exchange on the trading day immediately prior to the grant date. 

  

	 	iii.	 Unless prohibited by applicable law or rules of a Stock Exchange, Canadian Awards or U.S. Awards may be made to
a Participant without regard to such Participant’s domicile or residence for tax purposes. Thus, for example, U.S. taxpayers that are Participants may receive Canadian Awards. The Corporation may take such actions with respect to its filings,
records and reporting, as it deems appropriate to reflect the conversion of Awards from Canadian dollars to U.S. dollars and vice versa. 

  

	 	iv.	 If the Shares are not traded, listed or otherwise reported or quoted, the Committee shall determine in good
faith the Fair Market Value in whatever manner it considers appropriate taking into account the requirements of the ITA, Section 409A of the Code and any other applicable law. 

 

	 	v.	 For purposes of the grant of any Award, the applicable date shall be the date on which the Award is granted.
For purposes of the exercise of any Award, the applicable date shall be the date a notice of exercise is received by the Committee or its designee, as applicable, or, if not a day on which the applicable market is open, the next day that it is open.
In the event that the Committee determines that the date of grant of an Award shall be a future date because the Corporation is in a Blackout Period, the applicable date shall be deemed to occur on the seventh day following the termination of the
Blackout Period and the Fair Market Value shall be the weighted average trading price of the Shares on the TSX or U.S. Exchange as applicable for a Canadian Award or U.S. Award, for the five most recent trading days preceding the applicable date
(e.g. trading days two to six following the lifting of the Blackout Period). In the event an additional Blackout Period commences such that six consecutive trading days (excluding weekends and statutory holidays) do not elapse following the expiry
of the initial Blackout Period, the applicable date and market price shall be determined by reference to the seventh consecutive trading day following the expiry of the subsequent Blackout Period. 

 

	(t)	 “Incentive Stock Option” shall mean an option representing the right to purchase Shares from
the Corporation, granted under and in accordance with the terms of Section 6, that is intended to be and is designated as an “Incentive Stock Option” within the meaning of Section 422 of the Code. 

 

	(u)	 “ITA” shall mean the Income Tax Act (Canada) and any regulations thereunder as amended from
time to time. 

  

	(v)	 “Non-Employee Director” shall mean an individual who
is a member of the Board but who is not otherwise an Employee or a Consultant of the Company or of any Affiliate at the date an Award is granted. 

  

	(w)	 “Non-Qualified Stock Option” shall mean an option
representing the right to purchase Shares from the Corporation, granted under and in accordance with the terms of Section 6, that is not an Incentive Stock Option. 

	(x)	 “Option” shall mean an Incentive Stock Option or a
Non-Qualified Stock Option. 

  

	(y)	 “Other Stock-Based Award” means an Award granted pursuant to Section 11 of the Plan.

  

	(z)	 “Participant” shall mean the recipient of an Award granted under the Plan.

  

	(aa)	 “Performance Award” means an Award granted pursuant to Section 10 of the Plan.

  

	(bb)	 “Performance Goals” means goals established by the Committee as contingencies for Awards to
vest and/or become exercisable or distributable based on one or more performance goals. Performance Goals may be applied to either the Corporation as a whole or to a business unit or to a single or group of Affiliates, either individually,
alternatively or in any combination, and measured either in total, incrementally or cumulatively over a specified performance period, on an absolute basis or relative to a pre-established target, to previous
years’ results or to a designated comparison group. 

  

	(cc)	 “Performance Period” means the period established by the Committee at the time any Performance
Award is granted or at any time thereafter during which any Performance Goals specified by the Committee with respect to such Award are measured or must be satisfied. 

 

	(dd)	 “Plan” shall mean this Amended and Restated Canopy Growth Corporation Omnibus Incentive Plan,
as the same may be amended or supplemented from time to time. 

  

	(ee)	 “Prior Option Plan” means the Corporation’s stock option plan as it existed prior to
August 4, 2017. 

  

	(ff)	 “Restricted Stock” shall mean any Share granted under Section 8. 

 

	(gg)	 “Restricted Stock Unit” shall mean a contractual right granted under Section 8 that is
denominated in Shares. Each Restricted Stock Unit represents a right to receive one Share or the value of one Share upon the terms and conditions set forth in the Plan and the applicable Award Agreement. 

 

	(hh)	 “SAR” or “Stock Appreciation Right” shall mean any right granted to a
Participant pursuant to Section 7 to receive, upon exercise by the Participant, the excess of (i) the Fair Market Value of one Share on the date of exercise over (ii) the grant price of the right on the date of grant, or if granted in
connection with an outstanding Option on the date of grant of the related Option, as specified by the Committee in its sole discretion, which, except in the case of Substitute Awards, shall not be less than the Fair Market Value of one Share on such
date of grant of the right or the related Option, as the case may be. 

  

	(ii)	 “Service” shall mean the active performance of services for the Corporation or an Affiliate by
a person who is an employee or director of the Corporation or an Affiliate. Notwithstanding the foregoing, with respect to any Award that is characterized as “nonqualified deferred compensation” within the meaning of Section 409A of
the Code, an event shall not be considered to be a termination of “Service” under the Plan for purposes of payment of such Award unless such event is also a “separation from service” within the meaning of Section 409A of the
Code. 

  

	(jj)	 “Shares” shall mean the common shares in the capital of the Corporation.

	(kk)	 “Stock Exchanges” shall mean the U.S. Exchange and the TSX. 

 

	(ll)	 “Subsidiary” shall mean any corporation of which shares representing at least 50% of the
ordinary voting power is owned, directly or indirectly, by the Corporation. 

  

	(mm)	 “Substitute Awards” shall mean Awards granted in assumption of, or in substitution for,
outstanding awards previously granted by a company acquired by the Corporation or with which the Corporation combines. 

  

	(nn)	 “Transfer” means: (a) when used as a noun, any direct or indirect transfer, sale,
assignment, pledge, hypothecation, encumbrance or other disposition (including the issuance of equity in any entity), whether for value or no value and whether voluntary or involuntary (including by operation of law), and (b) when used as a
verb, to directly or indirectly transfer, sell, assign, pledge, encumber, charge, hypothecate or otherwise dispose of (including the issuance of equity in any entity) whether for value or for no value and whether voluntarily or involuntarily
(including by operation of law). “Transferred” and “Transferable” shall have a correlative meaning. 

  

	(oo)	 “TSX” means the Toronto Stock Exchange and at any time the Shares are not listed and posted
for trading on the TSX, shall be deemed to mean such other stock exchange or trading platform in Canada upon which the Shares trade and which has been designated by the Committee. 

 

	(pp)	 “U.S. Award” shall mean an Award pursuant to which, as applicable: (i) in the case of
Options (including tandem SARs (as defined below)),the Exercise Price is stated and payable in United States dollars (and in the case of tandem SARs, any cash amount payable in settlement thereof shall be paid in United States dollars), (ii) in the
case of freestanding SARs (as defined below), the base price is stated in United States dollars and any cash amount payable in settlement thereof shall be paid in United States dollars; (iii) in the case of Restricted Share Units, Deferred
Share Units or Performance Awards, any cash amount payable in settlement thereof shall be paid in United States dollars; or (iv) in the case of Other Stock-Based Awards the price or value of such Shares is stated in United States dollars.

  

	(qq)	 “U.S. Exchange” shall mean the New York Stock Exchange or such other national securities
exchange or trading system on which the Corporation’s shares are listed in the United States. 

  

	(rr)	 “U.S. Securities Act” means the United States Securities Act of 1933, as amended.

  

	Section 3.	 Eligibility. 

(a)    Any employee, officer, director, Consultant or, subject to applicable securities laws, other advisor of, or any
other individual who provides services to, the Corporation or any Affiliate, shall be eligible to be selected to receive an Award under the Plan. All Awards shall be granted by an Award Agreement. Notwithstanding the foregoing, only eligible
employees of the Corporation, its subsidiaries and its parent (as determined in accordance with Section 422(b) of the Code in the case of US employees) are eligible to be granted Incentive Stock Options under the Plan. Eligibility for the grant
of Awards and actual participation in the Plan shall be determined by the Committee in its sole discretion. 
 (b)    An
individual who has agreed to accept employment by the Corporation or an Affiliate shall be deemed to be eligible for Awards hereunder as of the date of such acceptance; provided that vesting and exercise of Awards granted to such individual are
conditioned upon such individual actually becoming an employee of the Corporation or an Affiliate. 

 (c)    Holders of options and other types of incentive awards granted by
a company acquired by the Corporation or with which the Corporation combines are eligible for grant of Substitute Awards hereunder. 
  

	Section 4.	 Administration. 

(a)    The Plan shall be administered by the Committee. Subject to Section 15, the Committee shall have the authority
to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities (to the extent permitted by applicable law and applicable stock exchange rules),
as it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. The
Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any agreement relating thereto in the manner and to the extent it shall deem necessary to effectuate the purpose and intent of the Plan. The
Committee may adopt special guidelines and provisions for persons who are residing in or employed in, or subject to, the taxes of, any domestic or foreign jurisdictions to comply with applicable tax and securities laws of such domestic or foreign
jurisdictions. [To the extent applicable, the Plan and Awards intended to be “performance-based,” the applicable provisions of Section 162(m) of the Code, and the Plan shall be limited, construed and interpreted in a manner so as to
comply therewith. 
 (b)    Subject to the terms of the Plan and applicable law and the rules of the Stock Exchanges
that the Shares are listed at the relevant time and in addition to those authorities provided in Section 4(a), the Committee (or its delegate) shall have full power and authority to: (i) designate Participants; (ii) determine the type
or types of Awards (including Substitute Awards) to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights, or other matters are to be calculated in
connection with) Awards, including whether an Award shall be a Canadian Award or a U.S. Award; (iv) authorize and approve the applicable form and determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award
granted hereunder (including, but not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof, or any forfeiture restrictions or waiver thereof, regarding any Award and the
Shares relating thereto, based on such factors, if any, as the Committee shall determine, in its sole discretion); (v) determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other
securities, or other Awards, or canceled, forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (vi) determine whether, to what extent, and under what circumstances cash,
Shares, other securities, other Awards, and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee, taking into consideration the requirements
of Section 409A of the Code; (vii) determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of shares acquired pursuant to the exercise of an Award for a period of time as
determined by the Committee, in its sole discretion, following the date of the acquisition of such Award; (viii) to determine whether an Option is an Incentive Stock Option or Non-Qualified Option;
(ix) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (x) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for
the proper administration of the Plan; (xi) to permit accelerated vesting or lapse of restrictions of any Award at any time; and (xii) make any other determination and take any other action that the Committee deems necessary or desirable
for the administration of the Plan. 
 (c)    All decisions of the Committee shall be final, conclusive and binding upon
all parties, 

 
including the Corporation, the shareholders and the Participants. 

(d)    Notwithstanding the foregoing, the Committee shall not have any discretion under this Section 4 or any other
provision of the Plan that would modify the terms or conditions of any (i) Performance Goal or waive the satisfaction thereof with respect to any Award that is intended to qualify as “performance-based compensation” for purposes of
Section 162(m) of the Code if the exercise of such discretion would cause the Award not to so qualify, (ii) any other Award that is intended to be exempt from the definition of “salary deferral arrangement” in the ITA if the
exercise of such discretion would cause the Award to not be or cease to be exempt; or (iii) any Option granted to a Canadian Grantee if the exercise of such discretion would cause the Option to not be or cease to be governed by section 7 of the
ITA. The Committee will also exercise its discretion in good faith in accordance with the Corporation’s intention that the terms of Awards and the modifications or waivers permitted hereby are in compliance with applicable law and the rule of
the Stock Exchanges. 
 (e)    No member of the Committee or the Board generally shall be liable for any action or
determination made in good faith pursuant to the Plan or any instrument of grant evidencing any Award granted under the Plan. To the fullest extent permitted by law, the Corporation shall indemnify and save harmless, and shall advance and reimburse
the expenses of, each Person made, or threatened to be made, a party to any action or proceeding in respect of the Plan by reason of the fact that such Person is or was a member of the Committee or is or was a member of the Board in respect of any
claim, loss, damage or expense (including legal fees) arising therefrom. 
  

	Section 5.	 Shares Available for Awards; Per Person Limitations. 

(a)    Subject to adjustment as provided below, the maximum number of Shares available for issuance under the Plan shall
not exceed 15% of the issued and outstanding Shares from time-to-time when taken together with all other Security Based Compensation Arrangements of the Corporation;
provided that all Shares reserved and available under the Plan shall constitute the maximum number of Shares that can be issued for Incentive Stock Options. Every three years after the Effective Date of the Plan, all unallocated Awards under the
Plan shall be submitted for approval to the Board and the shareholders of the Corporation. With respect to Stock Appreciation Rights settled in Shares, upon settlement, only the number of Shares delivered to a Participant (based on the difference
between the Fair Market Value of the Shares subject to such Stock Appreciation Right on the date such Stock Appreciation Right is exercised and the exercise price of each Stock Appreciation Right on the date such Stock Appreciation Right was
awarded) shall count against the aggregate and individual share limitations set forth under this Section 5. If any Option, Stock Appreciation Right or Other Stock-Based Awards granted under the Plan expires, terminates or is canceled for any
reason without having been exercised in full, the number of Shares underlying any unexercised Award shall again be available for the purpose of Awards under the Plan. If any shares of Restricted Stock, Performance Awards or Other Stock-Based Awards
denominated in Shares awarded under the Plan to a Participant are forfeited for any reason, the number of forfeited shares of Restricted Stock, Performance Awards or Other Stock-Based Awards denominated in Shares shall again be available for
purposes of Awards under the Plan. Any Award under the Plan settled in cash shall not be counted against the foregoing maximum share limitations. On exercise of any Option, Stock Appreciation Right or Other Stock-Based Awards granted under the Plan,
the number of Shares underlying such Award shall again be available for the purpose of Awards under the Plan. Any Shares subject to any Award or award granted under a Prior Plan that is outstanding on the date which this Plan was approved by
shareholders of the Corporation (or any portion thereof) that has expired or is forfeited, surrendered, cancelled or otherwise terminated prior to, or that is otherwise settled so that there is no, issuance or transfer of such Shares shall not be
counted against the foregoing maximum share limitations 
 (b)    Any Shares delivered pursuant to an Award may consist,
in whole or in part, of 

 
authorized and unissued Shares or Shares acquired by the Corporation. 

(c)    To the extent required by Section 162(m) of the Code for Awards under the Plan to qualify as
“performance-based compensation,” the following individual Participant limitations shall apply: 

(i)    Subject to Section 21 below, the maximum number of Shares subject to any Award of Options, or Stock
Appreciation Rights, shares of Restricted Stock, Restricted Stock Units or Other Stock-Based Awards for which the grant of such Award or the lapse of the relevant restriction period is subject to the attainment of Performance Goals in accordance
with Section 10 which may be granted under the Plan during any fiscal year of the Corporation to any Participant shall be 1,000,000 Shares per type of Award (which shall be subject to any further increase or decrease pursuant to
Section 5(d)) provided that the maximum number of Shares for all types of Awards granted to any Participant does not exceed 1,000,000 Shares (which shall be subject to any further increase or decrease pursuant to Section 5(d) any fiscal
year of the Corporation. If a Stock Appreciation Right is granted in tandem with an Option, it shall apply against the Participant’s individual share limitations for both Stock Appreciation Rights and Options. 

(ii)    Subject to Section 5(g), Section 5(h) and Section 21, there are no annual individual share
limitations applicable to Participants on Options, Restricted Stock, Restricted Stock Units or Other Stock-Based Awards for which the grant, vesting or payment (as applicable) of any such Award is not subject to the attainment of Performance Goals.

 (iii)    The individual Participant limitations set forth in this Section 5(c) shall be cumulative; that is, to
the extent that Shares for which Awards are permitted to be granted to a Participant during a fiscal year are not covered by an Award to such Participant in a fiscal year, the number of Shares available for Awards to such Participant shall
automatically increase in the subsequent fiscal years during the term of the Plan until used. 
 (d)    Changes 

(i)    The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the
Board or the shareholders of the Corporation to make or authorize (a) any adjustment, recapitalization, reorganization or other change in the Corporation’s capital structure or its business, (b) any arrangement, merger or
consolidation of the Corporation or any Affiliate, (c) any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Shares (d) the dissolution or liquidation of the Corporation or any Affiliate,
(e) any sale or transfer of all or part of the assets or business of the Corporation or any Affiliate or (f) any other corporate act or proceeding. 

(ii)    If there shall occur any such change in the capital structure of the Corporation by reason of any stock split,
reverse stock split, stock dividend, extraordinary dividend, subdivision, combination or reclassification of shares that may be issued under the Plan, any recapitalization, any arrangement, any merger, any consolidation, any spin off, any
reorganization or any partial or complete liquidation, or any other corporate transaction or event having an effect similar to any of the foregoing (a “Corporate Event”), then (i) the aggregate number and/or kind of shares that
thereafter may be issued under the Plan, (ii) the number and/or kind of shares or other property (including cash) to be issued upon exercise of an outstanding Award granted under the Plan, and/or (iii) the purchase price thereof, shall be
appropriately adjusted. In addition, if there shall occur any change in the capital structure or the business of the Corporation that is not a Corporate Event (an “Other Extraordinary Event”), including by reason of any ordinary
dividend (whether cash or stock), any conversion, any adjustment, any issuance of any class of securities convertible or exercisable into, or exercisable for, any class of stock, or any sale or 

 
transfer of all or substantially all of the Corporation’s assets or business, then the Committee, in its sole discretion, may adjust any Award and make such other adjustments to the Plan.
Any adjustment pursuant to this Section 5(d) shall be consistent with the applicable Corporate Event or the applicable Other Extraordinary Event, as the case may be, and in such manner as the Committee may, in its sole discretion, deem
appropriate and equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants under the Plan. Any such adjustment determined by the Committee shall be final, binding and conclusive on the
Corporation and all Participants and their respective heirs, executors, administrators, successors and permitted assigns. Except as expressly provided in this Section 5(d) or in the applicable Award Agreement, a Participant shall have no rights
by reason of any Corporate Event or any Other Extraordinary Event. 
 (iii)    Fractional shares of Shares resulting
from any adjustment in Awards pursuant to Section 5(d)(i) or Section 5(d)(ii) shall be aggregated until, and eliminated at, the time of exercise by rounding-down for fractions less than one-half and rounding-up for fractions equal to or greater than one- half. No cash settlements shall be made with respect to fractional shares eliminated by rounding. Notice of any
adjustment shall be given by the Committee to each Participant whose Award has been adjusted and such adjustment (whether or not such notice is given) shall be effective and binding for all purposes of the Plan. 

(e)    Shares underlying Awards that can only be settled in cash shall not reduce the number of Shares remaining available
for issuance under the Plan. 
 (f)    Notwithstanding any provision of the Plan to the contrary, if authorized but
previously unissued Shares are issued under the Plan, such shares shall not be issued for a consideration that is less than as permitted under applicable law and the rules of the TSX. 

(g)    (i) The equity value of Options granted to a Non-Employee Director, within
a one-year period, pursuant to the Plan shall not exceed $100,000; and (ii) the aggregate equity value of all awards, that are eligible to be settled in Shares granted to a
Non-Employee Director, within a one-year period, pursuant to all Security Based Compensation Arrangements (including, for greater certainty, the Plan) shall not exceed
$150,000. 
 (h)    In the event that a Participant holds 20% or more of the issued and outstanding Shares or the
settlement of an Award in Shares would cause the Participant to hold 20% or more of the issued and outstanding Shares, such Participant shall only be granted Awards that can be settled in cash. 

 

	Section 6.	 Options. 

The Committee is hereby authorized to grant Options to Participants with the following terms and conditions and with such additional terms and
conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine: 

(a)    The purchase price per Share under an Option shall be determined by the Committee; provided, however, that, except
in the case of Substitute Awards, such purchase price shall not be less than 100% (or 110% in the case of an Incentive Stock Option granted to a person owning stock possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Corporation, its subsidiaries or its parent, determined in accordance with Section 422(b)(6)) of the Code) of the Fair Market Value of a Share on the date of grant of such Option. In the event that the Committee
determines and has authorized the Chief Executive Officer of the Corporation to grant such Options on a future date because the Corporation is in a Blackout Period, the date of grant shall be deemed to occur

 
on the second trading day following the termination of the Blackout Period and the Fair Market Value shall be the closing price on the first business day following the date on which the relevant
Blackout Period has expired, unless the relevant grant of Options occurs after the close of trading on the date of grant, in which case the Fair Market Value shall be equal to the closing price on the date of grant. In the event an additional
Blackout Period commences such that two consecutive trading days (excluding weekends and statutory holidays) do not elapse following the expiry of the initial Blackout Period, the grant date and Fair Market Value shall be determined by reference to
the second consecutive trading day following the expiry of the subsequent Blackout Period. 
 (b)    The term of each
Option shall be fixed by the Committee but shall not exceed 6 years from the date of grant thereof. Except as otherwise provided by the Committee in an Award Agreement, the term of each grant of Option shall be 6 years from the date of the
grant thereof. Notwithstanding the foregoing, if the term of an Option (other than an Incentive Stock Option) held by any Participant not subject to Section 409A of the Code would otherwise expire during, or within ten business days of the
expiration of a Blackout Period applicable to such Participant, then the term of such Option shall be extended to the close of business on the tenth business day following the expiration of the Blackout Period. 

(c)    The Committee shall determine the time or times at which an Option may be exercised in whole or in part. Except as
otherwise provided by the Committee in an Award Agreement, the Options will vest and become exercisable as follows: 

(i)    as to one-third on the first anniversary of the date of the grant thereof;

 (ii)    as to one-third on the second anniversary of the date of the grant
thereof; and 
 (iii)    as to the final one-third on the third anniversary of
the date of the grant thereof. 
 (d)    To the extent vested and exercisable, Options may be exercised in whole or in
part at any time during the Option term, by giving written notice of exercise to the Corporation specifying the number of Shares to be purchased. Such notice shall be accompanied by payment in full of the purchase price (the “Option
Price”) as follows: (i) by certified cheque, bank draft or money order payable to the order of the Corporation; (ii) solely to the extent permitted by applicable law, if the Shares are traded on a national securities exchange, and
the Committee authorizes, through a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver promptly to the Corporation an amount equal to the purchase price; or (iii) on
such other terms and conditions as may be acceptable to the Committee (including, without limitation, having the Corporation withhold Shares issuable upon exercise of the Option, or by payment in full or in part in the form of Shares owned by the
Participant, based on the Fair Market Value of the Shares on the payment date as determined by the Committee). No Shares shall be issued until payment therefor, as provided herein, has been made or provided for. 

(e)    Notwithstanding Section 6(d), with the approval of the Committee, in its sole and unfettered discretion, a
Participant may elect to exercise an Option, in whole or in part, without payment of the aggregate Option Price due on such exercise by electing to receive Shares equal in value to the difference between the Option Price and the Fair Market Value on
the date of exercise (any such exercise a “Cashless Exercise”) computed by using the following formula, with either a partial or full deduction of the number of underlying Shares from the Plan reserve: 

X =   Y (A-B)   

 A 
  

	Where	 X = the number of Shares to be issued to the Participant upon such Cashless Exercise; 

Y = the number of Shares purchasable under the Option (at the date of such calculation); 

A = Fair Market Value of one Share of the Corporation (at the date of such calculation, if greater than the Option Price); and 

B = Option Price (as adjusted to the date of such calculation) 

In the event that the Shares are not listed on the Exchange as at the date of an exercise of an Option, it shall be a condition precedent to the exercise of
any Option that the Participant agree to be bound by the terms of any unanimous shareholders agreement or similar agreements generally applicable to all of the shareholders of the Corporation then in force, and further that the Participant agree to
enter into voting trust generally applicable to employee shareholders of the Corporation then in force and provide a power of attorney in support of such voting trust 

(f)    The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of
Section 422 of the Code, or any successor provision thereto, and any regulations promulgated thereunder. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the Shares with respect to which Incentive Stock
Options are exercisable for the first time by a Participant Employee during any calendar year under the Plan and/or any other stock option plan of the Corporation, any subsidiary or any parent exceeds $100,000, such Options shall be treated as Non-Qualified Options. Should any provision of the Plan not be necessary in order for the Options to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may amend the
Plan accordingly, without the necessity of obtaining the approval of the shareholders of the Corporation, subject to the rules of the TSX. To the extent that any such Option does not qualify as an Incentive Stock Option (whether because of its
provisions or the time or manner of its exercise or otherwise), such Option or the portion thereof which does not so qualify shall constitute a separate Non- Qualified Stock Option. 

 

	Section 7.	 Stock Appreciation Rights. 

(a)    The Committee is hereby authorized to grant Stock Appreciation Rights (“SARs”) to Participants with
terms and conditions as the Committee shall determine not inconsistent with the provisions of the Plan. 
 (b)    SARs
may be granted hereunder to Participants either alone (“freestanding”) or in addition to other Awards granted under the Plan (“tandem”) and may, but need not, relate to a specific Options granted under Section 6. 

(c)    Any tandem SAR related to an Option may be granted at the same time such Option is granted to the Participant. In
the case of any tandem SAR related to any Option, the SAR or applicable portion thereof shall not be exercisable until the related Option or applicable portion thereof is exercisable and shall terminate and no longer be exercisable upon the
termination or exercise of the related Option, except that a SAR granted with respect to less than the full number of Shares covered by a related Option 

 
shall not be reduced until the exercise or termination of the related Option exceeds the number of Shares not covered by the SAR. Any Option related to any tandem SAR shall no longer be
exercisable to the extent the related SAR has been exercised. 
 (d)    A freestanding SAR shall not have a term of
greater than 10 years or, unless it is a Substitute Award, an exercise price less than 100% of Fair Market Value of the Share on the date of grant. Notwithstanding the foregoing, if the term of a SAR held by any Participant not subject to
Section 409A of the Code would otherwise expire during, or within ten business days of the expiration of a Blackout Period applicable to such Participant, then the term of such SAR shall be extended to the close of business on the tenth
business day following the expiration of the Blackout Period. 
  

	Section 8.	 Restricted Stock and Restricted Stock Units. 

(a)    The Committee is hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants.

 (b)    Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee
may impose (including, without limitation, any limitation on the right to receive any dividend or dividend equivalent or other right), which restrictions may lapse separately or in combination at such time or times, in such installments or
otherwise, as the Committee may deem appropriate. To the extent required by law, Participants holding Restricted Stock granted hereunder shall have the right to exercise full voting rights with respect to those Restricted Stocks during the any
period of restriction. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. 

(c)    Any share of Restricted Stock granted under the Plan may be evidenced in such manner as the Committee may deem
appropriate including, without limitation, book-entry registration or issuance of a share certificate or certificates. In the event any share certificate is issued in respect of shares of Restricted Stock granted under the Plan, such certificate
shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. If share certificates are issued in respect of shares of Restricted
Stock, the Committee may require that any share certificates evidencing such Shares be held in custody by the Corporation until the restrictions thereon shall have lapsed, and that, as a condition of any grant of Restricted Stock, the Participant
shall have delivered a duly signed stock power or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate by the Corporation, which would permit
transfer to the Corporation of all or a portion of the shares subject to the Restricted Stock Award in the event that such Award is forfeited in whole or part. 

(d)    The Committee may in its discretion, when it finds that a waiver would be in the best interests of the Corporation,
waive in whole or in part any or all restrictions with respect to Shares of Restricted Stock or Restricted Stock Units. 

(e)    The Committee, in its discretion, may award Dividend Equivalents with respect to Awards of Restricted Stock Units.
The entitlements on such Dividend Equivalents will not be available until the vesting of the Award of Restricted Stock Units. 

(f)    If the Committee intends that an Award under this Section 8 shall constitute or give rise to “qualified
performance based compensation” under Section 162(m) of the Code, such Award may be structured in accordance with the requirements of Section 10, including without limitation, the Performance Goals and the Award limitation set forth
therein, and any such Award shall be considered a Performance Award for purposes of the Plan. 

 (g)    No Restricted Stock Unit shall vest later than three years after
the date of grant. 
  

	Section 9.	 Deferred Stock Unit. 

The Committee is authorized to grant Deferred Stock Units to Participants, subject to the following terms and conditions: 

(a)    Deferred Stock Units shall be settled upon expiration of the deferral period specified for an Award of Deferred
Stock Unit by the Committee (or, if permitted by the Committee, as elected by the Participant). In addition, Deferred Stock Units shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as
the Committee may impose, which restrictions may lapse at the expiration of the deferral period or at earlier specified times (including based on achievement of performance goals and/or future service requirements), separately or in combination, in
installments or otherwise, and under such other circumstances as the Committee may determine at the date of grant or thereafter. Deferred Stock Units may be satisfied by delivery of Shares, other Awards, or a combination thereof, as determined by
the Committee at the date of grant or thereafter. 
 (b)    The Committee, in its discretion, may award Dividend
Equivalents with respect to Awards of Deferred Stock Units. The entitlements on such Dividend Equivalents will not be available until the expiration of the deferral period for the Award of Deferred Stock Units. 

(c)    Except as otherwise provided in the Award Agreement, each Participant shall be entitled to redeem his or her
Deferred Stock Units during the period commencing on the business day immediately following the Director Termination Date and ending on the 90th day following the Director Termination Date by
providing a written notice of redemption, on a prescribed form, to the Corporation (the “Redemption Date”). In the event of death of a Participant, the notice of redemption shall be filed by the administrator or liquidator of the
estate of the Participant. For greater certainty, the administrator shall have a maximum of 180 days following the Director Termination Date to provide such written notice. In the case of a U.S. Participant and except as otherwise provided in an
Award Agreement, however, the redemption will be deemed to be made on the earlier of (i) December 31 of the year following the year of a “separation from service” within the meaning of Section 409A of the Code, or
(ii) within 90 days of the U.S. Participant’s death, or retirement from, or loss of office or employment with the Company, within the meaning of paragraph 6801(d) of the regulations under the ITA, including the Participant’s
resignation, retirement, removal from the Board, death or otherwise. . 
  

	Section 10.	 Performance Awards. 

(a)    The Committee may grant a Performance Award to a Participant payable upon the attainment of specific Performance
Goals. The Committee may grant Performance Awards that are intended to qualify as “performance-based compensation” under Section 162(m) of the Code, as well as Performance Awards that are not intended to qualify as
“performance-based compensation” under Section 162(m) of the Code. If the Performance Award is payable in shares of Restricted Stock, such shares shall be transferable to the Participant only upon attainment of the relevant
Performance Goal in accordance with Section 8. If the Performance Award is payable in cash, it may be paid upon the attainment of the relevant Performance Goals either in cash or in shares of Restricted Stock (based on the then current Fair
Market Value of such shares), as determined by the Committee, in its sole and absolute discretion. Each Performance Award shall be evidenced by an Award Agreement in such form that is not inconsistent with the Plan and that the Committee may from
time to time approve. With respect to Performance Awards that are intended to qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee shall condition the right to payment of any Performance Award
upon 

 
the attainment of objective Performance Goals established pursuant to Section 10(b)(iii). 

(b)    Terms and Conditions. Performance Awards awarded pursuant to this Section 10 shall be subject to the
following terms and conditions: 
 (i)    Earning of Performance Award. At the expiration of the applicable
Performance Period, the Committee shall determine the extent to which the Performance Goals established pursuant to Section 10(b) are achieved and the percentage of each Performance Award that has been earned. 

(ii)    Non-Transferability. Subject to the applicable provisions of the
Award Agreement and the Plan, Performance Awards may not be Transferred during the Performance Period. 

(iii)    Objective Performance Goals, Formulae or Standards. With respect to Performance Awards that are intended
to qualify as “performance-based compensation” under Section 162(m) of the Code, the Committee shall establish the objective Performance Goals for the earning of Performance Awards based on a Performance Period applicable to each
Participant or class of Participants in writing prior to the beginning of the applicable Performance Period or at such later date as permitted under Section 162(m) of the Code and while the outcome of the Performance Goals are substantially
uncertain. Such Performance Goals may incorporate, if and only to the extent permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) the impact of any of the following that the Committee determines to be
appropriate: (i) corporate transactions (including, without limitation, dispositions and acquisitions) and other similar type events or circumstances, (ii) restructurings, discontinued operations, extraordinary items or events, and other
unusual or non-recurring charges as described in the Corporation’s Management Discussion & Analysis; (iii) an event either not directly related to the operations of the Corporation or any of
its Affiliates or not within the reasonable control of the Corporation’s management, (iv) a change in tax law or accounting standards required by generally accepted accounting principles, or (v) such other exclusions or adjustments as
the Committee specifies at the time the Award is granted. To the extent that any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section 162(m) of the Code, such provision shall be
of no force or effect, with respect to Performance Awards that are intended to qualify as “performance-based compensation” under Section 162(m) of the Code. 

(c)    Dividends. Unless otherwise determined by the Committee in an Award Agreement, amounts equal to dividends
declared during the Performance Period with respect to the number of Shares covered by a Performance Award will not be paid to the Participant. In all cases, such dividends would not become payable until the expiration of the applicable Performance
Period. 
 (d)    Payment. Following the Committee’s determination in accordance with Section 10(b)(i)
the Corporation shall settle Performance Awards, in such form (including, without limitation, in Shares or in cash) as determined by the Committee, in an amount equal to such Participant’s earned Performance Awards. Notwithstanding the
foregoing, the Committee may, in its sole discretion, award an amount less than the earned Performance Awards and/or subject the payment of all or part of any Performance Award to additional vesting, forfeiture and deferral conditions as it deems
appropriate. 
 (e)    Termination. Subject to the applicable provisions of the Award Agreement and the Plan,
upon a Participant’s termination of Service for any reason during the Performance Period for a given Performance Award, the Performance Award in question will vest or be forfeited in accordance with the terms and conditions established by the
Committee at grant. 
 (f)    Accelerated Vesting. Based on service, performance and/or such other factors or
criteria, if any, as the Committee may determine, the Committee may, at or after grant, due to such service, 

 
performance and/or such other factors or criteria relating to the Participant’s performance to date accelerate on a pro rata basis the vesting of all or any part of any Performance Award.

 (g)    When and if Performance Awards become payable, a Participant having received the grant of such units shall be
entitled to receive payment from the Company in settlement of such units in cash, Shares of equivalent value (based on the Fair Market Value), in some combination thereof, or in any other form determined by the Committee at its sole discretion. With
respect to any Canadian Participant, the Company shall deliver the payout in settlement of any Performance Award to such Canadian Participant by or before December 31 of the third year following the year of the grant. 

 

	Section 11.	 Other Stock-Based Awards. 

The Committee is authorized, subject to limitations under applicable law, the approval of the TSX and shareholder approval, if required, to grant to
Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares or factors that may influence the value of Shares, including, without limitation,
convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Corporation or business units thereof, Shares awarded
purely as a bonus and not subject to restrictions or conditions, or any other factors designated by the Committee. The Committee shall determine the terms and conditions of such Awards. Shares delivered pursuant to an Award in the nature of a
purchase right granted under this Section 11 shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Shares, other Awards, notes, or other property, as the
Committee shall determine. Unless otherwise determined by the Committee in an Award Agreement, the recipient of an Award under this Section 11 shall not be entitled to receive, currently or on a deferred basis, dividends or Dividend Equivalents
in respect of the number of Shares covered by the Award. In all cases, such dividends or Dividend Equivalents would not become payable until the expiration of any applicable performance period. 

 

	Section 12.	 Effect of Termination of Service on Awards. 

(a)    The Committee may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case,
the circumstances in which Awards shall be exercised, vested, paid or forfeited in the event a Participant ceases to provide Service to the Corporation or any Affiliate prior to the end of a performance period or exercise or settlement of such
Award. 
 (b)    Except as otherwise provided by the Committee in an Award Agreement: 

(i)    if a Participant resigns their office or employment, or the employment of a Participant is terminated, or a
Participant’s contract as a Consultant terminates, only the portion of the Options that have vested and are exercisable at the date of any such resignation or termination may be exercised by the participant during the period ending 90 days
after the date of resignation or termination, as applicable, after which period all Options expire; and 
 (ii)    any
Options, whether vested or unvested, will expire immediately upon the Participant being dismissed from their office or employment for cause or on a Participant’s contract as a Consultant being terminated before its normal termination date for
cause, including where a participant resigns their office or employment or terminates their contract as a Consultant after being requested to do so by the Corporation as an alternative to being dismissed or terminated by the Corporation for cause.

	Section 13.	 Change in Control Provisions. 

Except as otherwise provided by the Committee in an Award Agreement: 

(a)    the occurrence of a Change in Control will not result in the vesting of unvested Awards nor the lapse of any period
of restriction pertaining to any Restricted Stock or Restricted Stock Unit (such Awards collectively referred to as “Unvested Awards”), provided that: (i) such Unvested Awards will continue to vest in accordance with the Plan
and the Award Agreement; (ii) the level of achievement of performance goals prior to the date of the Change in Control shall be based on the actual performance achieved to the date of the Change in Control and the level of achievement of
performance goals for the applicable period completed following the date of the Change in Control shall be based on the assumed achievement of 100% of the performance goals; and (iii) any successor entity agrees to assume the obligations of the
Corporation in respect of such Unvested Awards. 
 (b)    For the period of 24 months following a Change in Control,
where a Participant’s employment or term of office or engagement is terminated for any reason, other than for Cause: (i) any Unvested Awards as at the date of such termination shall be deemed to have vested, and any period of restriction
shall be deemed to have lapsed, as at the date of such termination and shall become payable as at the date of termination; and (ii) the level of achievement of performance goals for any Unvested Awards that are deemed to have vested pursuant to
(i) above, shall be based on the actual performance achieved at the end of the applicable period immediately prior to the date of termination. . 

(c)    With respect to Awards for a U.S. Participant to the extent applicable, the Committee shall have the discretion to
unilaterally determine that all outstanding Awards shall be cancelled up on a Change in Control, and that the value of such Awards, as determined by the Committee in accordance with the terms of the Plan and the Award Agreements, shall be paid out
in cash in an amount based on the Change in Control Price within a reasonable time subsequent to the Change in Control; provided, however, that no such payment shall be made on account of an ISO using a value higher than the Fair Market Value of the
underlying Shares on the date of settlement. For purposes of this Section, “Change in Control Price” shall mean the highest price per Share paid in any transaction related to a Change in Control of the Corporation. 

(d)    Notwithstanding the above, no cancellation, acceleration of vesting, lapsing of restrictions, payment of an Award,
cash settlement or other payment shall occur with respect to any Award if the Committee reasonably determines in good faith prior to the occurrence of a Change in Control that such Award shall be honoured or assumed, or new rights substituted
therefor (with such honoured, assumed or substituted Award hereinafter referred to as an “Alternative Award”) by any successor to the Corporation or an Affiliate; provided, however, that any such Alternative Award must: (i) be based
on stock which is traded on the TSX and/or an established U.S. securities market; (ii) provide such Participant with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable under such
Award, including, but not limited to, an identical or better exercise or vesting schedule and identical or better timing and methods of payment; (iii) recognize, for the purposes of vesting provisions, the time that the Award has been held
prior to the Change in Control; (iv) have substantially equivalent economic value to such Award (determined prior to the time of the Change in Control); and (v) have terms and conditions which provide that in the event that the
Participant’s employment with the Corporation, an Affiliate or any successor is involuntarily terminated or constructively terminated at any time within at least twelve months following a Change in Control, any conditions on a
Participant’s rights under, or any restrictions on transfer or exercisability applicable to, each such Alternative Award shall be waived or shall lapse, as the case may be. 

 (e)    In the event that any accelerated Award vesting or payment
received or to be received by a Participant pursuant to the above (the “Benefit”) would (i) constitute a “parachute payment” within the meaning of and subject to Section 280G of the Code and (ii) but for this
Section, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Benefit shall be reduced to the extent necessary to that no portion of the Benefit will be subject to the Excise Tax, as
determined in good faith by the Committee; provided, however, that if, in the absence of any such reduction (or after such reduction), the Participant believes that the Benefit or any portion thereof (as reduced, if applicable) would be subject to
the Excise Tax, the Benefit shall be reduced (or further reduced) to the extent determined by the Participant in his or her discretion so that the Excise Tax would not apply. To the extent that such Benefit or any portion thereof is subject to
Section 409A of the Code, then such Benefit or portion thereof shall be reduced by first reducing or eliminating any payment or Benefit payable in cash and then any payment or Benefit not payable in cash, in each case in reverse order beginning
with payments or Benefits which are to be paid the further in time from the date of a Change in Control. If, notwithstanding any such reduction (or in the absence of such reduction), the Internal Revenue Service (“IRS”) determines that the
Participant is liable for Excise Tax as a result of the Benefit, then the Participant shall be obliged to return to the Corporation, within thirty days of such determination by the IRS, a portion of the Benefit sufficient such that none of the
Benefit retained by the Participant constitutes a “parachute payment” within the meaning of Section 280G of the Code that is subject to the Excise Tax. In no event shall the Corporation have any obligation to pay any Excise Tax
imposed on a Participant or to indemnify a Participant therefor. 
 (f)    Notwithstanding any other provision of this
Plan, this Section shall not apply with respect to any Deferred Stock Units held by a Canadian Participant where such Deferred Stock Units are governed under regulation 6801(d) of the ITA or any successor to such provision. 

 

	Section 14.	 General Provisions Applicable to Awards. 

(a)    Awards may be granted for no cash consideration or for such minimal cash consideration as may be required by
applicable law. 
 (b)    Awards may, in the discretion of the Committee, be granted either alone or in addition to or
in tandem with any other Award or any award granted under any other plan of the Corporation. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Corporation,
may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(c)    Subject to the terms of the Plan, payments or transfers to be made by the Corporation upon the grant, exercise or
payment of an Award may be made in the form of cash, Shares, other securities or other Awards, or any combination thereof, as determined by the Committee in its discretion at the time of grant, and may be made in a single payment or transfer, in
installments, or on a deferred basis, in each case in accordance with rules and procedures established by the Committee and in compliance with Section 409A of the Code. Such rules and procedures may include, without limitation, provisions for
the payment or crediting of reasonable interest (or no interest) on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments. 

(d)    Except as may be permitted by the Committee or as specifically provided in an Award Agreement, (i) no Award or
other benefit payable under the Plan shall, except as otherwise specifically provided by law or permitted by the Committee, be Transferable in any manner other than by will or the law of descent, and any attempt to Transfer any such benefit shall be
void, and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of any person who shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or

 
against such person, and (ii) each Award, and each right under any Award, shall be exercisable during the Participant’s lifetime only by the Participant or, if permissible under
applicable law, by the Participant’s guardian or legal representative. The provisions of this paragraph shall not apply to any Award which has been fully exercised, earned or paid, as the case may be, and shall not preclude forfeiture of an
Award in accordance with the terms thereof. 
 (e)    A Participant may designate a Beneficiary or change a previous
beneficiary designation at such times prescribed by the Committee by using forms and following procedures approved or accepted by the Committee for that purpose. If no Beneficiary designated by the Participant is eligible to receive payments or
other benefits or exercise rights that are available under the Plan at the Participant’s death, the Beneficiary shall be the Participant’s estate. 

(f)    All certificates for Shares and/or Shares or other securities delivered under the Plan pursuant to any Award or the
exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Ontario Securities Commission, any stock exchange upon
which such Shares or other securities are then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

(g)    It is a condition of each grant of an Award that if: (a) the Participant fails to comply with any obligation
to the Corporation or an Affiliate (A) to maintain the confidentiality of information relating to the Corporation or the Affiliate and/or its business, (B) not engage in employment or business activities that compete with the business of
the Corporation or the Affiliate, whether during or after employment with the Corporation of Affiliate, and whether such obligation is set out in an Award Agreement issued under the Plan or other agreement between the Participant and the Corporation
or Affiliate, including, without limitation, an employment agreement or otherwise; (C) not solicit employees or other service providers, customers and/or suppliers of the Corporation or the Affiliate, whether during or after employment with the
Corporation or Affiliate, and whether such obligation is set out in an Award Agreement issued under the Plan or other agreement between the Participant and the Corporation or Affiliate, including, without limitation, an employment agreement, or
otherwise (collectively, a “Restrictive Covenant”); (b) the Participant is terminated for cause, or the Board reasonably determines after employment termination that the Participant’s employment could have been terminated for
cause; (c) the Board reasonably determines that the Participant engaged in conduct that causes material financial or reputational harm to the Corporation or its Affiliates, or engaged in gross negligence, willful misconduct or fraud in respect
of the performance of the Participant’s duties for the Company or an Affiliate; or (d) the Corporation’s financial statements (the “Original Statements”) are required to be restated (other than as a result of a change
in accounting policy by the Corporation or under International Financial Reporting Standards applicable to the Corporation) and such restated financial statements (the “Restated Statements” disclose, in the opinion of the Board,
acting reasonably, materially worse financial results than those contained in the Original Statements, then the Board may, in its sole discretion, to the full extent permitted by governing law and to the extent it determines that such action is in
the best interest of the Corporation, and for a U.S. Participant, in a manner in accordance with Section 409A of the Code to the extent applicable, and in addition to any other rights that the Corporation or an Affiliate may have at law or
under any agreement, take any or all of the following actions, as applicable): (i) require the Participant to reimburse the Corporation for any amount paid to the Participant in respect of an Award in cash in excess of the amount that should
otherwise have been paid in respect of such Award had the determination of such compensation been based upon the Restated Statements in the event clause (d) above is applicable, or that was paid in the twelve (12) months prior to
(x) the date on which the Participant fails to comply with a Restrictive Covenant, (y) the date on which the Participant’s employment is terminated for cause, or the Board makes a determination under paragraph

 
(b) or (c) above, less, in any event, the amount of tax withheld pursuant to the ITA or other relevant taxing authority in respect of the amount paid in cash in the year of payment;
(ii) reduce the number or value of, or cancel and terminate, any one or more unvested grants of Options, Restricted Stock Units, Deferred Stock Units, Performance Awards or SARs on or prior to the applicable maturity or vesting dates, or cancel
or terminate any outstanding Awards which have vested in the twelve (12) months prior to (x) the date on which the Participant fails to comply with a Restrictive Covenant, (y) the date on which the Participant’s employment is
terminated for cause or the Board makes a determination under paragraph (b) or (c) above, or (z) the date on which the Board determines that the Corporation’s Original Statements are required to be restated, in the event paragraph
(d) above applies (each such date provided for in clause (x), (y) and (z) of this paragraph (ii) being a “Relevant Equity Recoupment Date”); and/or (iii) require payment to the Corporation of the value of any
Shares of the Corporation acquired by the Participant pursuant to an Award granted in the twelve (12) months prior to a Relevant Equity Recoupment Date (less any amount paid by the Participant) to acquire such Shares and less the amount of tax
withheld pursuant to the ITA or other relevant taxing authority in respect of such Shares). 
 (h)    All Awards issued
pursuant to the Plan which may be denominated or settled in Shares, and all such Shares issued pursuant to the Plan, will be issued pursuant to the registration requirements of the U.S. Securities Act or an exemption from such registration
requirements. 
  

	Section 15.	 Amendments and Termination. 

(a)    The Board may amend, alter, suspend, discontinue or terminate the Plan and any outstanding Awards granted hereunder,
in whole or in part, at any time without notice to or approval by the shareholders of the Corporation, for any purpose whatsoever, provided that all material amendments to the Plan shall require the prior approval of the shareholders of the
Corporation and must comply with the rules of the TSX. Examples of the types of amendments that are not material that the Board is entitled to make without shareholder approval include, without limitation, the following: 

(i)    ensuring continuing compliance with applicable law, the rules of the TSX or other applicable stock exchange rules
and regulations or accounting or tax rules and regulations; 
 (ii)    amendments of a “housekeeping” nature,
which include amendments to correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award Agreement in the manner and to the extent it shall deem desirable to carry the Plan into effect; 

(iii)    changing the vesting provision of the Plan or any Award (subject to the limitations for Awards subject to
Section 10(b)); 
 (iv)    waiving any conditions or rights under any Award (subject to the limitations for Awards
subject to Section 10(b)); 
 (v)    changing the termination provisions of any Award that does not entail an
extension beyond the original expiration date thereof; 
 (vi)    adding or amending a cashless exercise provision; 

(vii)    adding or amending a financial assistance provision; 

(viii)    changing the process by which a Participant who wishes to exercise his or her Award can do so, including the
required form of payment for the Shares being purchased, the form of written notice of exercise provided to the Corporation and the place where such payments and notices must be delivered; and 

 (ix)    delegating any or all of the powers of the Committee to
administer the Plan to officers of the Corporation. 
 (b)    Notwithstanding anything contained herein to the contrary,
no amendment to the Plan requiring the approval of the shareholders of the Corporation under any applicable securities laws or requirements shall become effective until such approval is obtained. In addition to the foregoing, the approval of the
holders of a majority of the Shares present and voting in person or by proxy at a meeting of shareholders shall be required for: 

(i)    an increase in the maximum number of Shares that may be made the subject of Awards under the Plan; 

(ii)    any adjustment (other than in connection with a stock dividend, recapitalization or other transaction where an
adjustment is permitted or required under Section 5(d)(i) or Section 5(d)(ii)) or amendment that reduces or would have the effect of reducing the exercise price of an Option or Stock Appreciation Right previously granted under the Plan,
whether through amendment, cancellation or replacement grants, or other means (provided that, in such a case, insiders of the Corporation who benefit from such amendment are not eligible to vote their Shares in respect of the approval); 

(iii)    an increase in the limits on Awards that may be granted to any Participant under Section 5(c) and
Section 5(g) or to Insiders under Section 21; 
 (iv)    an extension of the term of an outstanding Option or
Stock Appreciation Right beyond the expiry date thereof; 
 (v)    permitting Options granted under the Plan to be
Transferrable other than for normal estate settlement purposes; and 
 (vi)    any amendment to the plan amendment
provisions set forth in this Section 15 which is not an amendment within the nature of Section 15(a)(i) or Section 15(a)(ii), 
 unless the
change results from application of Section 5(d)(i) or Section 5(d)(ii). 
 Furthermore, except as otherwise permitted under the Plan, no change to
an outstanding Award that will adversely impair the rights of a Participant may be made without the consent of the Participant except to the extent that such change is required to comply with applicable law, stock exchange rules and regulations or
accounting or tax rules and regulations. 
  

	Section 16.	 Miscellaneous. 

(a)    The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With
respect to any payment as to which a Participant has a fixed and vested interest but which are not yet made to a Participant by the Corporation, nothing contained herein shall give any such Participant any right that is greater than those of a
general unsecured creditor of the Corporation. 
 (b)    No employee, Participant or other person shall have any claim
to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of employees, Participants, or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to
each recipient. Any Award granted under the Plan shall be a one-time Award which does not constitute a promise of future grants. The Corporation, in its sole discretion, maintains the right to make available
future grants hereunder. 
 (c)    The Corporation shall have the right to deduct from any payment to be made pursuant

 
to the Plan, or to otherwise require, prior to the issuance or delivery of Shares or the payment of any cash hereunder, payment by the Participant of, any federal, provincial, state or local
taxes required by law to be withheld. Upon the vesting of Restricted Stock (or other Award that is taxable upon vesting), or upon making an election under Section 83(b) of the Code, a Participant shall pay all required withholding to the
Corporation. Any statutorily required withholding obligation with regard to any Participant may be satisfied, subject to the consent of the Committee, by reducing the number of Shares otherwise deliverable or by delivering Shares already owned. Any
fraction of a Share required to satisfy such tax obligations shall be disregarded and the amount due shall be paid instead in cash by the Participant. 

(d)    Nothing contained in the Plan shall prevent the Corporation from adopting or continuing in effect other or
additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 

(e)    The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or
to continue to provide services to, the Corporation or any Affiliate. Further, the Corporation or the applicable Affiliate may at any time dismiss a Participant, free from any liability, or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award Agreement or in any other agreement binding the parties. The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth in such Award. 

(f)    If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in
any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so
construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any
such Award shall remain in full force and effect. 
 (g)    Neither the Plan nor any Award shall create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the Corporation and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Corporation pursuant to an Award,
such right shall be no greater than the right of any unsecured general creditor of the Corporation. 
 (h)    No
fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or
any rights thereto shall be canceled, terminated or otherwise eliminated. 
 (i)    No Award or other benefit payable
under the Plan shall, except as otherwise specifically provided by law or permitted by the Committee, be Transferable in any manner, and any attempt to Transfer any such benefit shall be void, and any such benefit shall not in any manner be liable
for or subject to the debts, contracts, liabilities, engagements or torts of any person who shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such person. 

(j)    Unless otherwise determined by the Committee, as long as the Shares are listed on a national securities exchange
including the TSX or system sponsored by a national securities association, the issuance of Shares pursuant to an Award shall be conditioned upon such shares being listed on such exchange or system. The Corporation shall have no obligation to issue
such Shares unless and until such Shares are so listed, and the right to exercise any Option or other Award with respect to such Shares shall be suspended until such listing has been effected. If at any time counsel to the Corporation shall be of
the opinion that any sale or delivery of Shares pursuant to an Option or other Award is or may in the circumstances be unlawful or result in the imposition of excise taxes on the Corporation under the

 
statutes, rules or regulations of any applicable jurisdiction, the Corporation shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any
qualification or registration with respect to Shares or Awards, and the right to exercise any Option or other Award shall be suspended until, in the opinion of said counsel, such sale or delivery shall be lawful or will not result in the imposition
of excise taxes on the Corporation. A Participant shall be required to supply the Corporation with certificates, representations and information that the Corporation requests and otherwise cooperate with the Corporation in obtaining any listing,
registration, qualification, exemption, consent or approval the Corporation deems necessary or appropriate. 
 (k)    No
Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Corporation or its Affiliates nor affect any benefit under any other benefit plan now or subsequently in effect
under which the availability or amount of benefits is related to the level of compensation. The provisions of Awards need not be the same with respect to each Participant, and such Awards to individual Participants need not be the same in subsequent
years. 
 (l)    The Plan shall be binding on all successors and permitted assigns of a Participant, including, without
limitation, the estate of such Participant and the executor, administrator or trustee of such estate. Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable of receipt thereof shall be deemed paid when
paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Committee, the Board, the Corporation, its Affiliates and their employees,
agents and representatives with respect thereto. 
  

	Section 17.	 Effective Date of the Plan. 

The Plan shall be effective as of the Effective Date, which is the date of adoption by the Board, subject to the approval of the Plan by the shareholders of
the Corporation in accordance with the requirements of the laws of the Province of Ontario. 
  

	Section 18.	 Term of the Plan. 

No Award shall be granted under the Plan after ten years from the Effective Date. However, unless otherwise expressly provided in the Plan or in an applicable
Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award, or to waive any conditions or rights under any such Award, and
the authority of the Board to amend the Plan, shall extend beyond such date. 
  

	Section 19.	 Section 409A of the Code. 

(a)    The Plan is intended to comply with the applicable requirements of Section 409A of the Code and shall be
limited, construed and interpreted in accordance with such intent. To the extent that any Award is subject to Section 409A of the Code, it shall be paid in a manner that will comply with Section 409A of the Code, including proposed,
temporary or final regulations or any other guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto. Notwithstanding anything herein to the contrary, any provision in the Plan that is inconsistent with
Section 409A of the Code shall be deemed to be amended to comply with Section 409A of the Code and to the extent such provision cannot be amended to comply therewith, such provision shall be null and

 
void. The Corporation shall have no liability to a Participant, or any other party, if an Award that is intended to be exempt from, or compliant with, Section 409A of the Code is not so
exempt or compliant or for any action taken by the Committee or the Corporation and, in the event that any amount or benefit under the Plan becomes subject to penalties under Section 409A of the Code, responsibility for payment of such
penalties shall rest solely with the affected Participants and not with the Corporation. Notwithstanding any contrary provision in the Plan or Award Agreement, any payment(s) of “nonqualified deferred compensation” (within the meaning of
Section 409A of the Code) that are otherwise required to be made under the Plan to a “specified employee” (as defined under Section 409A of the Code) as a result of such employee’s separation from service (other than a
payment that is not subject to Section 409A of the Code) shall be delayed for the first six (6) months following such separation from service (or, if earlier, the date of death of the specified employee) and shall instead be paid (in a
manner set forth in the Award Agreement) upon expiration of such delay period. 
 (b)    Notwithstanding the foregoing,
the Corporation does not make any representation to any Participant or Beneficiary as to the tax consequences of any Awards made pursuant to this Plan, and the Corporation shall have no liability or other obligation to indemnify or hold harmless the
Participant or any Beneficiary for any tax, additional tax, interest or penalties that the Participant or any Beneficiary may incur as a result of the grant, vesting, exercise or settlement of an Award under this Plan. 

 

	Section 20.	 Governing Law. 

This Plan shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable in the Province of
Ontario. 
  

	Section 21.	 TSX Requirements. 

The number of Shares issuable to Insiders, at any time, under all Security Based Compensation Arrangements of the Corporation, may not exceed 10% of the
Corporation’s issued and outstanding Shares; and the number of Shares issued to Insiders within any one-year period, under all Security Based Compensation Arrangements of the Corporation, may not exceed
10% of the Corporation’s issued and outstanding Shares. For the purpose of this Section 21, “Insider” shall mean any “reporting insiders” as defined in National Instrument
55-104 – Insider Reporting Requirements, and “Security Based Compensation Arrangement” shall mean any (i) any stock option plans for the benefit of employees, insiders, service
providers or any one of such groups; (ii) individual stock options granted to employees, service providers or insiders if not granted pursuant to a plan previously approved by the Corporation’s security holders; (iii) treasury based
share purchase plans where the Corporation provides financial assistance or where the Corporation matches the whole or a portion of the securities being purchased; (iv) stock appreciation rights involving issuances of securities from treasury;
any other compensation or incentive mechanism involving the issuance or potential issuances of securities of the Corporation; and (vi) security purchases from treasury by an employee, insider or service provider which is financially assisted by
the Corporation by any means whatsoever.EX-4.2

 Exhibit 4.2 

CANOPY GROWTH CORPORATION 

EMPLOYEE STOCK PURCHASE PLAN 
  

	1.	 Plan Description 

The Canopy Growth Corporation (the “Company”) Employee Stock Purchase Plan is intended to promote the interests of the Company and its
subsidiaries by providing eligible employees an opportunity to acquire a proprietary interest in the Company through a stock purchase plan. 
  

	2.	 Definitions. 

“Affiliate” has the meaning assigned by the Securities Act (Ontario), as amended from time to time; 

“Associate” has the meaning assigned by the Securities Act (Ontario), as amended from time to time. 

“Annual Compensation” means, for each Participant, the annualized gross salary of that Participant, i.e., regular compensation earned during
each payroll period, before any deductions or withholding, but excluding commissions overtime pay, bonuses, amounts paid as reimbursements of expenses and other additional compensation, under rules uniformly applied by the Committee (for Employees
who have a compensation plan with a base and incentive portion comprising a target, Annual Compensation shall mean the base for that individual). 

“Board of Directors” means the board of directors of the Company. 

“Business Day” means any day which is a trading day on the Exchange. 

“Change in Control” shall mean: 
  

	 	(i)	 when any person, together with any Affiliate or Associate of such person (other than the Company or its
subsidiaries, or an employee benefit plan of the Company or its subsidiaries, including any trustee of such plan acting as trustee) hereafter acquires, the direct or indirect “beneficial ownership”, as defined by the Canada
Business Corporations Act (the “CBCA”), of securities of the Company representing fifty (50%) percent or more of the combined voting power of the Company’s then outstanding securities; or 

 

	 	(ii)	 the occurrence of a transaction requiring approval of the Company’s shareholders involving the acquisition
of the Company or all or substantially all of its business by an entity through purchase of assets by amalgamation, arrangement or otherwise; 

“Commitment Date” means, with respect to any given Participant, the first Business Day of each Offering

  

Page 1 of 10 

 
Period or in the event of a Blackout Period pursuant to Sub-section 4(b) hereof, the tenth Business Day following the end of the Blackout Period, or such
other Business Day in an Offering Period approved by the Committee. 
 “Committee” means the compensation committee appointed by the
Board of Directors to administer the Plan. All references in the Plan to the Committee means the Board of Directors if no Committee has been appointed. 

“Common Shares” means common shares in the capital of the Company. 

“Director” means a person occupying the position of director on the Board of Directors and who is not an Employee. 

“Eligible Person” means an Employee who is eligible to participate in the Plan pursuant to Section 3. 

“Employee” means a full time permanent employee of the Company or any of its subsidiaries. 

“Exchange” means the Toronto Stock Exchange. 

“Fair Market Value” per Common Share at any date shall be the weighted average sale price for board lots of Common Shares on the Exchange on
the ten trading days immediately preceding the Purchase Date or the Commitment Date, as the case may be. 
 “Insider” means: 

 

	 	(i)	 an insider of the Company as defined by the Securities Act (Ontario) as amended from time to time; and

  

	 	(ii)	 an Associate or Affiliate of any person who is an Insider by virtue of clause (i) of this definition.

 “Leave of Absence” has the meaning ascribed thereto in Section 7 hereof.  

“Lump Sum Payment” has the meaning ascribed thereto in Sub-section 4(c) hereof. 

“Offering Period” means one of the six month periods commencing in each year either on the third Business Day after the first public
announcement of the Company’s first quarter financial results or on the third Business Day after the first public announcement of the Company’s third quarter financial results. 

“Participant” means an Eligible Person who is participating in the Plan pursuant to Section 4. 

“Payroll Deduction” has the meaning ascribed thereto in Sub-section 4(b) hereof.  

“Plan” means this Canopy Growth Corporation Employee Stock Purchase Plan. 

  

Page 2 of 10 

 “Plan Account” means, for each Participant, an account maintained by the Company or its
designated record keeper to which such Participant’s payroll deductions are credited and against which funds used to purchase Common Shares are charged and to which Common Shares purchased are credited. 

“Purchase Date” means the first Business Day which is six months following the first Business Day of each Offering Period in respect of any
Offering Period. 
 “Purchase Price” means the lesser of (i) 90% of the Fair Market Value of the Common Shares on the Commitment Date for
the Offering Period in which the Purchase Date falls, and (ii) 90% of the Fair Market Value of the Common Shares on the Purchase Date for that Offering Period. 

2.         Shares Subject to the Plan. Subject to Section 12, the aggregate number of Common Shares
which may be sold under the Plan is 400,000. The maximum number of Common Shares which may be issued under the Plan in any one fiscal year shall not exceed 200,000. No fractional shares may be purchased or issued hereunder. The following
restrictions shall also apply to this Plan as well as all other plans or stock option agreements to which the Company may be a party: 
  

	 	(i)	 the aggregate number of Common Shares issuable to Insiders, at any time, under all of the Company’s
security based compensation arrangements, cannot exceed 10% of the issued and outstanding Common Shares of the Company; and 

  

	 	(ii)	 Insiders shall not be issued, under this Plan and all of the Company’s other security based compensation
arrangements, within any one year period, a number of Common Shares which exceeds 10% of the issued and outstanding Common Shares of the Company. 

3.         Eligible Persons. Each Employee (an “Eligible Person”) who has provided
services to the Company or any of its subsidiaries for at least three months and who is continuing to provide such services may participate in the Plan. The Committee may exclude all, but not less than all, of the Employees of any subsidiary of the
Company located outside of Canada where participation by such Employees would be impractical. 
  

	4.	 Offering Periods and Participation in the Plan. 

 

	 	(a)	 Common Shares shall be offered for purchase under the Plan through a series of successive Offering Periods
until such time as: (i) the maximum number of Common Shares available for purchase under the Plan shall have been purchased; or (ii) the Plan shall have been terminated in accordance with the terms hereof. 

 

	 	(b)	 An Eligible Person who is an Employee may participate in the Plan by completing and filing with the Company or
its designated record keeper prior to the tenth day of an Offering 

  

Page 3 of 10 

	 	
Period a subscription agreement and an election form which authorizes payroll deductions (the “Payroll Deductions”) from such Employee’s pay for the purposes of acquiring
Common Shares, provided that in the event that such deadline for providing a subscription agreement and an election form which authorizes Payroll Deductions is during a period when the Eligible Person is prohibited by law, by the policies of the
Exchange or by the policies of the Company from trading in Common Shares (a “Blackout Period”), such deadline shall be automatically extended to the tenth trading day immediately following the end of the Blackout Period. Such
Payroll Deductions shall commence on the first regularly scheduled payroll day of the applicable Offering Period following the receipt by the Company of the election form. Such Payroll Deductions shall continue until such Employee terminates
participation in the Plan or the Plan is terminated prior to such time. Unless otherwise specified in an election form or a new election form is filed pursuant to Section 6 of the Plan or participation in the Plan is terminated pursuant to
Section 7 of the Plan, Employees who have filed a completed subscription agreement and election form shall be deemed to participate in the Plan in subsequent Offering Periods. 

 

	 	(c)	 Notwithstanding the foregoing, an Eligible Person shall not be entitled to purchase Common Shares under this
Plan on any Commitment Date if the purchase would not comply with the restrictions respecting the issuance/sale of Common Shares set forth in Section 2. 

  

	 	(d)	 If the aggregate number of Common Shares subscribed for pursuant to the Plan exceeds the total number of Common
Shares permitted to be issued under the Plan or the maximum number of Common Shares permitted to be issued under the Plan in respect of a fiscal year, the Common Shares available will be allocated by the Company on a pro rata basis in proportion to
each Participant’s balance in his or her Plan Account, and a cash payment for the balance remaining will be refunded to the Participant on the Purchase Date, such calculation and allotment by the Company to be final and binding on all
Participants. 

 5.         Limits on Payroll Deductions. Payroll Deductions shall be
made from the amounts paid to each Participant for each payroll period in such amounts as such Participant shall authorize in such Participant’s election form. The maximum Payroll Deduction for each Participant shall be 5% of the
Participant’s Annual Compensation. If a Participant’s Annual Compensation is insufficient in any pay period to allow the entire Payroll Deduction elected under the Plan, no deduction shall be made for such pay period. Payroll Deductions
will resume with the next regularly scheduled payroll period in which the Participant has pay sufficient to permit the Payroll Deduction. Payroll Deductions under the Plan shall be made in any period only after all other withholdings, deductions,
garnishments and the like have been made. 
 6.         Changes in Payroll Deductions. Subject to the
maximum deductions set forth above in Section 5, a Participant may change the amount of such Participant’s Payroll Deductions by filing a new election form with the Company or its designated record keeper during the first ten days of an
Offering Period, 

  

Page 4 of 10 

 
which change shall be effective for such Offering Period. 

7.         Termination of Participation in Plan. A Participant’s participation in the Plan shall be
terminated upon the termination of such Employee’s employment with the Company for any reason and such Participant shall cease to be an Eligible Person at such time. In the event that a Participant’s participation in the Plan is
voluntarily or involuntarily terminated, Payroll Deductions under the Plan shall cease and any payments credited to such Participant’s Plan Account prior to such time shall be returned to the Participant. For purposes of this Section 7,
the date of termination of an Employee’s employment shall be the date designated in writing by the Company (or by its subsidiary, as the case may be) as the effective date of termination, notwithstanding any period of notice or reasonable
notice that the Company (or subsidiary, as the case may be) may be required by contract or at law to provide to the Participant in connection with such termination. For greater clarity, a temporary leave of absence (whether with or without pay) of a
Participant from his or her employment with the Company (a “Leave of Absence”) shall not be treated as terminating such Participant’s participation in any Offering Period, provided, however, that in the event of any Leave of
Absence of a Participant without pay, such Participant’s Payroll Deductions under the Plan, if any, shall be suspended for the duration of such Leave of Absence, provided further, however, that any such suspension of Payroll Deductions shall
not be deemed to be a change made pursuant to Sections 6 or 7 hereof for the determination of the amount of the Purchase Price related to any Common Shares to be purchased in an Offering Period. 

8.         Purchase of Shares. 
  

	 	(a)	 On each Purchase Date, the Company shall apply the funds credited to each Participant’s Plan Account to
the purchase (without commissions or fees) of that number of whole Common Shares determined by dividing the Purchase Price into the balance in the Participant’s Plan Account on the Purchase Date. Any amount remaining shall be carried forward to
the next Purchase Date unless the Plan Account is closed. 

  

	 	(b)	 As soon as practicable after each Purchase Date, a statement shall be delivered to each Participant which shall
include the number of Common Shares purchased on the Purchase Date on behalf of such Participant under the Plan. 

  

	 	(c)	 When requested, a stock certificate for whole Common Shares in a Participant’s Plan Account purchased
pursuant to the Plan shall be issued in such Participant’s name or in the name of such Participant and another person as joint tenants with rights of survivorship or as tenants in common. When a Participant ceases to be an Eligible Person
pursuant to the provisions of Section 7 hereof, a share certificate for whole Common Shares in such Participant’s Plan Account shall be issued in the name of such Participant or in the name of such Participant and the name of another
person as joint tenants with right of survivorship or as tenants in common on the Purchase Date. A cash payment shall be made for any fraction of a Common Share in such account, if necessary to close the account. 

  

Page 5 of 10 

 9.         Rights as a Shareholder. As of the Purchase
Date, a Participant shall be treated as record owner of his/her Common Shares purchased pursuant to the Plan. 

10.       Rights Not Transferable. Rights under the Plan are not transferrable by a Participant other than by will
or the laws of succession, and are exercisable during the Participant’s lifetime only by the Participant or by the Participant’s guardian or legal representative. No rights or payroll deductions of a Participant shall be subject to
execution, attachment, levy, garnishment or similar process. 
 11.       Application of Funds. All funds of
Participant’s received or held by the Company under the Plan before purchase of the Common Shares shall be held by the Company without liability for interest or other increment. 

12.       Adjustments in Case of Changes Affecting Common Shares. In the event of a subdivision or consolidation of
outstanding Common Shares of the Company, or the payment of a stock dividend, the number of Common Shares approved for the Plan shall be increased or decreased proportionately, and such other adjustment shall be made as may be deemed equitable by
the Committee. In the event of any other change affecting the Common Shares, such adjustment shall be made as shall be deemed equitable by the Committee to give proper effect to such event. If the Committee determines that such change will
constitute a change requiring shareholder approval, it may refrain from making such adjustments. The Committee or the Board of Directors shall determine the adjustments to be made under this Section 12, and its determination shall be
conclusive. 
 13.       Administration of the Plan. The Plan shall be administered by the Committee. The
Committee shall have the authority to construe and interpret the provisions of the Plan and make rules and regulations for the administration of the Plan, and its interpretations and decisions with regard to the Plan and such rules and regulations
shall be final and conclusive on all persons affected thereby unless otherwise determined by the Board of Directors. The day-to-day administration of the Plan may be
delegated to such officers and employees of the Company or its subsidiaries as the Committee shall determine. 

14.       Amendments to the Plan. 
  

	 	(a)	 Subject to the rules and policies of any stock exchange on which the Common Shares are listed and applicable
law, the Board of Directors may, without notice or shareholder approval, at any time or from time to time, amend the Plan for the purposes of: 

  

	 	(i)	 making any amendments to the provisions set out in Section 7 of the Plan; 

 

	 	(ii)	 making any amendments to add covenants of the Company for the protection of Participants, provided that the
Board of Directors shall be of the good faith opinion that such additions will not be prejudicial to the rights or interests of the Participants; 

  

Page 6 of 10 

	 	(iii)	 making any amendments not inconsistent with the Plan as may be necessary or desirable with respect to matters
or questions, which in the good faith opinion of the Board of Directors, having in mind the best interests of the Participants, it may be expedient to make, provided that the Board of Directors shall be of the opinion that such amendments and
modifications will not be prejudicial to the interests of the Participants; or 

  

	 	(iv)	 making any such changes or corrections which, on the advice of counsel to the Company, are required for the
purpose of curing or correcting any ambiguity or defect or inconsistent provision or clerical omission or mistake or manifest error, provided that the Board of Directors shall be of the opinion that such changes or corrections will not be
prejudicial to the rights and interests of the Participants. 

  

	 	(b)	 Notwithstanding any other provision of this Plan, none of the following amendments shall be made to this Plan
without approval of the Exchange (to the extent the Company has any securities listed on such exchange) and the approval of shareholders: 

  

	 	(i)	 amendments to the Plan which would increase the number of Common Shares issuable under the Plan, otherwise than
in accordance with Section 12 of this Plan; 

  

	 	(ii)	 amendments to the Plan which would increase the number of Common Shares issuable to Insiders under the Plan,
otherwise than in accordance with Section 12 of this Plan; 

  

	 	(iii)	 amendments to the Plan which would increase the number of Common Shares issuable to Directors under the Plan,
otherwise than in accordance with Section 12 of this Plan; 

  

	 	(iv)	 amendments that would reduce the Purchase Price payable by Insiders; 

 

	 	(v)	 amendments that would increase the percentage discounts set forth in the definition of Purchase Price;

  

	 	(vi)	 increase the maximum percentage of the Annual Compensation that any Participant may direct be contributed,
pursuant to the Plan, towards the purchase of Common Shares on his or her behalf through Payroll Deductions; 

  

	 	(vii)	 the addition of any form of financial assistance to a Participant; and 

 

	 	(viii)	 the adoption of an employer matching contribution. 

  

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	 	(c)	 Subject to Sections 17 and 23, the Board of Directors shall not alter or impair any rights or increase any
obligation with respect to previously agreed upon terms under the Plan without the consent of the Participant. 

15.       Termination of the Plan. The Plan shall terminate upon the earlier of (a) the termination of the Plan
by the Board of Directors of the Company as specified below, or (b) the date no more Common Shares remain to be purchased under the Plan. The Board of Directors of the Company may terminate the Plan as of any date, and the date of termination
shall be deemed a Purchase Date. If on such Purchase Date Participants in the aggregate have options to purchase more Common Shares than are available for purchase under the Plan, each Participant shall be eligible to purchase a reduced number of
Common Shares on a pro rata basis, and any excess Payroll Deductions shall be returned to Participants, all as provided by rules and regulations adopted by the Committee. 

16.       Costs. All costs and expenses incurred in administering the Plan shall be paid by the Company. 

17.       Governmental Regulations. The Company’s obligation to sell and deliver its Common Shares pursuant to
the Plan is subject to: 
  

	 	(a)	 the satisfaction of all requirements under applicable securities law in respect thereof and obtaining all
regulatory approvals as the Company shall determine to be necessary or advisable in connection with the authorization, issuance or sale thereof, including shareholder approval, if required; 

 

	 	(b)	 the admission of such Common Shares to listing on any stock exchange on which Common Shares may then be listed;
and 

  

	 	(c)	 the receipt from the Participant of such representations, agreements and undertakings as to future dealings in
such Common Shares as the Company determines to be necessary or advisable in order to safeguard against the violation of the securities law of any jurisdiction. 

In this connection, the Company shall take all reasonable steps to obtain such approvals and registrations as may be necessary for the issuance of such Common
Shares in compliance with applicable securities law and for the listing of such Common Shares on any stock exchange on which such Common Shares are then listed. 

18.       Applicable Law. The Plan is established under the laws of the Province of Ontario and the rights of all
parties and the construction and effect of each provision of the Plan shall be according to the laws of the Province of Ontario and the laws of Canada applicable therein. 

19.       Effect on Employment. The provisions of this Plan shall not affect the right of the Company or any
subsidiary or any Participant to terminate the Participant’s employment with the Company or any subsidiary. 

  

Page 8 of 10 

 20.       Withholding. The Company reserves the right to withhold
from stock or cash distributed to a Participant any amounts which it is required by law to withhold. 

21.       Change in Control. In the event of a proposed or actual Change in Control, the Company shall require that
each outstanding right hereunder be assumed or an equivalent right be substituted by the successor or purchaser corporation, unless the Plan is terminated. 

22.       Approvals. The Plan shall be subject to acceptance by the Exchange in compliance with all conditions
imposed by the Exchange. Any rights to purchase Common Shares granted prior to such acceptance shall be conditional upon such acceptance being given and any conditions complied with and no such right may be exercised unless such acceptance is given
and such conditions are complied with. 
 23.       Corporate Action. Nothing contained in the Plan shall be
construed so as to prevent the Company or any subsidiary of the Company from taking corporate action which is deemed by the Company or any subsidiary of the Company to be appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan. 
 24.       Limitation on Sale of Common Shares Purchased Under the Plan. The Plan is
intended to provide Common Shares for investment and not for resale. The Company does not, however, intend to restrict or influence any Participant with respect to any dealings with Common Shares save and except as provided in Sub-section 17(c). A Participant may, therefore, sell Common Shares purchased under the Plan provided he/she complies with all applicable securities laws. Participants assume the risk of any market fluctuations in
the price of the Common Shares. 
 25.       Notices. All written notices to be given by Participants to the
Company may be delivered personally or by registered mail, postage prepaid, addressed as follows: 
 Canopy Growth Corporation 

1 Hershey Drive 
 Smiths Falls,
Ontario 
 K7A 0A8 
 Attention:
General Counsel 
 Any notice given by the Participant pursuant to the terms hereof shall not be effective until actually received by the Company at the
above address. Any notice to be given to the Participant shall be sufficiently given if delivered personally or by postage prepaid mail to the last address of the Participant on the records of the Company or the applicable subsidiary and shall be
effective seven days after mailing. 
 26.       Shareholder Approval. The Plan shall become effective on the date
it is adopted by the Board of Directors of the Company, provided that the shareholders of the Company approve it within 12 months after such date and then reapprove every five (5) years. 

  

Page 9 of 10 

	
	CANOPY GROWTH CORPORATION
	
	   

	Bruce Linton
	CEO

  

  

Page 10 of 10

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