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Notice of Meeting and Management Information CircularCANACCORD GENUITY GROUP INC.

This booklet contains important information for shareholders.

For the annual general meeting of shareholders to be held at: TMX Broadcast Centre, 130 King Street West, Toronto, Ontario on Wednesday, August 6, 2014 at 10:00 a.m. (Toronto time)

Canaccord Genuity Group Inc.Annual General Meeting of Shareholders

THIS BOOKLET CONTAINS:

• Thenoticeoftheannualgeneralmeetingofshareholders• TheManagementInformationCircular• InstructionsonhowtoensureyoursharesarevotedattheMeeting

Shareholdersareinvitedtoattendtheannualgeneralmeeting(the“Meeting”)oftheholders(“Shareholders”) of Common shares (the“Common shares”)ofCanaccordGenuityGroupInc.(the“Company”)onAugust6,2014.Immediatelyfollowingtheterminationoftheformalmeeting,managementwillreportontheCompany’sperformanceinthefinancialyearendedMarch31,2014(“fiscal 2014”).

TheMeetingwilldealwiththeelectionofdirectorsandtheappointmentofauditors.

Yourpresence(oryourproxyifyouareunabletoattendinperson)isimportanttousandwewouldlikeyoursupportforallmatterstobedecidedattheMeeting.

If you have any questions about the Management Information Circular, or how to vote, please contact Canaccord Genuity Investor Relations at +1 (888) 250-3375.

Registered Shareholders

PLEASE NOTE: If your shares are registered in your name (and you are therefore a registered Shareholder),thenaproxyformissenttoyouwiththenoticeofmeeting.ThisproxyformmaybeusedtovoteyourCommonsharesifyouareunabletoattendtheMeetinginperson.Instructionsonhowtovoteusingthisproxyformarefoundstartingonpage3oftheManagementInformation Circular.

Non-Registered Beneficial Shareholders

PLEASE NOTE:IfyouarenotaregisteredShareholderandyourCommonsharesareheldonyourbehalf,orforyouraccount,byabroker,securitiesdealer,bank,trustcompanyorsimilarentity(an“Intermediary”),thenaproxyformisnotusuallysenttoyouwiththenoticeofmeeting.Instead,avotinginstructionform(alsoknownasaVIF)isusuallysent.YoumaynotbeabletovoteunlessyoucarefullyfollowtheinstructionsprovidedbytheIntermediarywiththenoticeofmeetingorintheVIF.Pleasealsorefertopage4oftheManagementInformationCircular.

Wehopethatyouwillfindtheformatoftheseproxymaterialseasytoreadand,mostimportantly,easytounderstand.Wewouldwelcomeyourcommentsandanysuggestionsforimprovements.

CANACCORDGENUITYGROUPINC.2014MANAGEMENTINFORMATIONCIRCUlAR 1

Notice of Annual General MeetingTAKENOTICEthattheBoardofDirectorsofCanaccordGenuityGroupInc.(the“Company”) has called the 2014 annual general meeting(the“Meeting”)oftheshareholdersoftheCompanyfor10:00a.m.(Torontotime)onWednesday,August6,2014attheTMXBroadcastCentre,130KingStreetWest,Toronto,Ontario.

TheCompanyprovidesyouwithelectronicaccesstotheinformationcircularfortheMeetinginsteadofsendingyouapapercopy.ThismeansofdeliveryismoreenvironmentallyfriendlyasitwillhelpreducepaperuseandwillalsoreducethecostofprintingandmailingmaterialstoShareholders.ThenoticeyoureceivedgivesyouinstructionsonhowtoaccessandreviewanelectroniccopyoftheCompany’sManagementInformationCircular(the“Circular”)andhowtorequestapapercopy.ThenoticealsoprovidesinstructionsonvotingbyproxyattheMeeting.IfyouwouldliketoreceiveapapercopyoftheCircular,pleasefollowtheinstructions in the notice.

AsaholderofCommonshares,youareentitledtoattendtheMeetingandtocastonevoteforeachCommonsharethatyouown.IfyouarearegisteredshareholderandareunabletoattendtheMeeting,youwillstillbeabletovotebycompletingtheproxyorvotinginstructionform(alsoknownasaVIF)senttoyouwiththenotice.TheCircularexplainshowthevotingprocessworks. In order to be assured of a vote at the Meeting, registered shareholders must submit the proxy or VIF to the Company’s transfer agent, Computershare Investor Services Inc., at its Toronto offices no later than 5:00 p.m. (Toronto time) on Friday, August 1, 2014.

If you are a non-registered beneficial shareholder, you must follow the instructions provided by your intermediary in order to vote your shares.

ThefollowingbusinesswillbeconductedattheMeeting:

(a) electionofdirectorsforthecomingyear;(b) appointmentofauditorsforthecomingyearandauthorizationforthedirectorstosettheauditors’remuneration;(c) anyotherbusinessasmayproperlycomebeforetheMeetingoranypostponementoradjournmentoftheMeeting.

Immediatelyfollowingtheterminationoftheformalmeeting,therewillbepresentationbytheChiefExecutiveOfficer.

Dated on June 9, 2014.

ByorderoftheBoardofDirectorsMartinl.MaclachlanCorporateSecretary

2 CANACCORDGENUITYGROUPINC.2014MANAGEMENTINFORMATIONCIRCUlAR

Information for Shareholders aboutthe 2014 Annual General Meeting of ShareholdersAll information in this Management Information Circular is current as of May 31, 2014, unless otherwise indicated. All amounts inthisManagementInformationCircularareexpressedinCanadiandollarsunlessotherwiseindicated.Unlessotherwiseindicatedorthecontextotherwiserequires,the“Company”referstoCanaccordGenuityGroupInc.and“Canaccord Genuity”, the “Canaccord Genuity Group”andthe“Group”refertotheCompanyanditsdirectandindirectsubsidiaries.

AdditionalinformationrelatingtotheCompanyisonSEDARatwww.sedar.com.

FinancialinformationoftheCompanyisprovidedintheCompany’sfinancialstatementsandmanagement’sdiscussionandanalysis(MD&A)foritsmostrecentlycompletedfinancialyear.ShareholdersmaycontacttheCompanytorequestcopiesoftheCompany’sfinancialstatementsandMD&Abysendinganemailwiththatrequesttoinvestor.relations@canaccordgenuitygroup.com.

ThepurposeofthisManagementInformationCircular(referredtoasthe“Circular”) is:

• toexplainhowyou,asashareholderoftheCompany,canvoteattheannualgeneralmeetingoftheshareholdersofCanaccordGenuityGroupInc.(the“Meeting”),eitherinpersonorbytransferringyourvotetosomeoneelsetovoteonyourbehalf;

• toinformyouaboutthebusinesstobeconductedattheMeeting,includingtheelectionofdirectorsandtheappointmentofauditorsforthecomingyear;and

• togiveyouimportantbackgroundinformationtoassistyouindecidinghowtovote.

NopersonhasbeenauthorizedtogiveanyinformationortomakeanyrepresentationinconnectionwiththematterstobeconsideredattheMeetingotherthanthosecontainedinthisCircularand,ifgivenormade,anysuchinformationorrepresentationmustnotberelieduponashavingbeenauthorized.ThisCirculardoesnotconstituteanoffertobuy,orasolicitationofanoffertosell,anysecurities,orthesolicitationofaproxy,byanypersoninanyjurisdictioninwhichsuchanofferorsolicitationisnotauthorizedorinwhichthepersonmakingsuchofferorsolicitationisnotqualifiedtodosoortoanypersontowhomitisunlawfultomakesuchanofferorsolicitationofanofferoraproxysolicitation.NeitherthedeliveryofthisCircularnoranydistributionofthesecuritiesreferredtointhisCircularwill,underanycircumstances,createanimplicationthattherehasbeennochangeintheinformationsetforthinthisCircularsincethedateasofwhichsuchinformationisgiveninthisCircular.

ShareholdersshouldnotconstruethecontentsofthisCircularastax,financialorlegaladviceandshouldconsultwiththeirowntax,financial,legalorotherprofessionaladvisorsastotherelevanttax,financial,legalorothermattersinconnectionherewith.

Forward-Looking Statements

ThisCircular,includingthedocumentsincorporatedbyreferenceinthisCircular,maycontain“forward-lookingstatements”(asdefinedunderapplicablesecuritieslaws).Thesestatementsrelatetofutureeventsorfutureperformanceandreflectmanagement’sexpectations,beliefs,plans,estimates,intentionsandsimilarstatementsconcerninganticipatedfutureevents,results,circumstances,performanceorexpectationsthatarenothistoricalfacts,includingbusinessandeconomicconditionsandCanaccordGenuity’sgrowth,resultsofoperations,performanceandbusinessprospectsandopportunities.Suchforward-lookingstatementsreflectmanagement’scurrentbeliefsandarebasedoninformationcurrentlyavailabletomanagement.Insomecases,forward-lookingstatementscanbeidentifiedbyterminologysuchas“may”,“will”,“should”,“expect”,“plan”,“anticipate”,“believe”,“estimate”,“predict”,“potential”,“continue”,“target”,“intend”,“could”orthenegativeofthesetermsorothercomparableterminology.Bytheirverynature,forward-lookingstatementsinvolveinherentrisksanduncertainties,bothgeneralandspecific,andanumberoffactorscouldcauseactualeventsorresultstodiffermateriallyfromtheresultsdiscussedintheforward-lookingstatements.Inevaluatingthesestatements,readersshouldspecificallyconsidervariousfactorsthatmaycauseactualresultstodiffermateriallyfromanyforward-lookingstatement.Thesefactorsinclude,butarenotlimitedto,marketandgeneraleconomicconditions,thenatureofthefinancialservicesindustryandtherisksanduncertaintiesdiscussedfromtimetotimeintheCompany’sinterimcondensedandannualconsolidatedfinancialstatementsanditsannualreportandannualinformationform(AIF)filedonwww.sedar.comaswellasthefactorsdiscussedinthesectionsentitled“RiskManagement”and“RiskFactors”intheAIF,whichincludemarket,liquidity,credit,operational,legalandregulatoryrisks.MaterialfactorsorassumptionsthatwereusedbytheCompanytodeveloptheforward-lookinginformationcontainedinthisdocumentinclude,butarenotlimitedto,thosesetoutintheFiscal2015OutlooksectionintheannualMD&AandthosediscussedfromtimetotimeintheCompany’sinterimcondensedandannualconsolidatedfinancialstatementsanditsannualreportandAIFfiledonwww.sedar.com.Theprecedinglistisnotexhaustiveofallpossibleriskfactorsthatmayinfluenceactualresults.Readersarecautionedthattheprecedinglistofmaterialfactorsorassumptionsisnotexhaustive.


Althoughtheforward-lookinginformationcontainedinthisdocumentisbaseduponwhatmanagementbelievesarereasonableassumptions,therecanbenoassurancethatactualresultswillbeconsistentwiththeseforward-lookingstatements.Theforward-looking statements contained in this document are made as of the date of this document and should not be relied upon as representingtheCompany’sviewsasofanydatesubsequenttothedateofthisdocument.Certainstatementsincludedinthisdocumentmaybeconsidered“financialoutlook”forpurposesofapplicableCanadiansecuritieslaws,andsuchfinancialoutlookmaynotbeappropriateforpurposesotherthanthisdocument.Exceptasmayberequiredbyapplicablelaw,theCompanydoesnotundertake,andspecificallydisclaims,anyobligationtoupdateorreviseanyforward-lookinginformation,whetherasaresultofnewinformation,furtherdevelopmentsorotherwise.

Notice and Access

TheCompanyissendingproxy-relatedmaterialstoregisteredholdersandbeneficialownersusingnoticeandaccess.ManagementoftheCompanydoesnotintendtopayforintermediariestoforwardtoobjectingbeneficialownersunderNI54-101theproxy-relatedmaterialsandForm54-101F7(RequestforVotingInstructionsMadebyIntermediary)and,inthecaseofanobjectingbeneficialowner,theobjectingbeneficialownerwillnotreceivethematerialsunlesstheobjectingbeneficialowner’sintermediaryassumesthecostofdelivery.

Solicitation of Proxies

YOuR VOTE IS BEING SOLICITEd BY THE MANAGEMENT OF THE COMPANY

Solicitationofproxieswillbeprimarilybymail,butmayalsobeundertakenbywayoftelephone,fax,emailororalcommunicationbythedirectors,officersandemployeesoftheCompanyanditssubsidiaries,atnoadditionalcompensation.AllcostsassociatedwiththesolicitationofproxiesbytheCompanyanditssubsidiarieswillbebornebytheCompanyanditssubsidiaries.

VOTING ANd APPOINTMENT OF PROXY

YourrightstoattendandvoteattheMeetingdependonwhetheryouarearegistered Shareholder(thatis,theCommonsharesoftheCompanyareactuallyregisteredinyourname)oranon-registered beneficial shareholder(forexample,apersonwhoholdsCommonsharesoftheCompanythroughabrokerorabank).

Registered Shareholders

IfyouarearegisteredShareholder,youmayattendtheMeetinginperson.Youmayalsoappointsomeone(knownasaproxyholder)torepresentyouattheMeetingandvoteonyourbehalf.Ifyoucompleteandsubmittheproxyformwithoutalteration,thenyouwillhaveappointedtheCompany’sChairman(orhisalternate)toattendtheMeetingandvoteonyourbehalf.

You have the right to appoint a person or company to represent you at the Meeting other than the persons designated in the proxy form. IfyouwishtoappointsomeotherpersonorcompanytorepresentyouattheMeeting,youmaydosobystrikingoutthenamesofthepersonsdesignatedintheproxyformandinsertingthenameofthepersonorcompanytobeappointedintheblankspaceprovidedandsigningtheproxyform.

IfyouwishtovoteattheMeetingbyproxy,youmusteither(a)completeandsigntheproxyandreturnittotheCompany’stransferagent,ComputershareInvestorServicesInc.(Computershare)or(b)followtheinstructionsintheproxytovotebytelephoneorontheInternet.Inordertobevalid,thetelephoneorInternetvotingmustbecompletedortheproxymustbereceivedbyComputershareat100UniversityAvenue,9thFloor,Toronto,OntarioM5J2Y1,Attention:ProxyDepartment,orbyfaxat+1(866)249-7775(tollfreeinCanadaandtheUnitedStates)or+1(416)263-9524(outsideCanadaandtheUnitedStates),nolaterthan5:00p.m.(Torontotime)onFriday,August1,2014,orinthecaseofanyadjournmentorpostponementoftheMeeting,nolaterthan48hours(excludingSaturdays,Sundaysandholidays)beforethetimeofsuchreconvenedmeeting.ThechairoftheMeetinghasthediscretiontoacceptproxiesfiledafterthesedeadlines.

Evenifyougiveaproxy,asaregisteredShareholder,youmaystillattendandvoteinpersonattheMeeting.

Revoking your proxyAproxyisrevocable.Ifyouhavegivenaproxy,you(oryourattorneyauthorizedinwriting)mayrevoketheproxybygivingnoticeoftherevocationinwritingattheCompany’sregisteredoffice,locatedat1000–840HoweStreet,Vancouver,BritishColumbiaV6Z2M1,atanytimeuptoandincludingthelastbusinessdaybeforetheMeetingortothechairoftheMeetingbeforeanyvoteinrespectofwhichtheproxyisgiven.Thenoticeoftherevocationmustbesignedasfollows:(a)ifyouareanindividual,thenthenoticemust besignedbyyouoryourlegalpersonalrepresentativeortrusteeinbankruptcyand(b)ifyouareacorporation,thenthenoticemustbe signedbythecorporationorbyarepresentativeappointedforthecorporationinaccordancewiththearticlesoftheCompany.


Non-registered beneficial shareholders

IfyourCommonsharesarenotregisteredinyourownname,thentheyarebeingheldinthenameofanintermediary(whichisusuallyatrustcompany,asecuritiesdealerorbroker,abankoranotherfinancialinstitution)orinthenameofaclearingagencysuchastheCanadianDepositoryforSecuritieslimited.Youareusuallycalledeitheranon-registeredorabeneficialshareholderorowner.Securityholdermaterialsaresenttobothregisteredandnon-registeredownersofthesecurities.Ifyouareanon-registeredowner,andtheissueroritsagenthassentthematerialsdirectlytoyou,yournameandaddressandinformationaboutyourholdingsofsecuritieshavebeenobtainedinaccordancewithapplicablesecuritiesregulatoryrequirementsfromtheintermediaryholdingonyourbehalf.

TherearevariousproceduresforthevotingofyourCommonshares,andtheseproceduresmayvaryamongintermediariesandclearingagenciesinwaysoverwhichtheCompanyhasnocontrol.If you are a beneficial shareholder, you should carefully follow the instructions of the intermediary or clearing agency, including instructions regarding when and where any voting instruction form or proxy form is to be delivered. unless you follow these instructions you are not entitled to attend the Meeting in person and your attendance will be solely at the discretion of the Company.

Typically,youwillreceiveoneofthefollowing:

1. A Computershare voting instruction form (VIF).IfyoureceiveaComputershareVIFandwishtovoteattheMeeting,youmusteither(a)completetheVIFandreturnittoComputershareor(b)followtheinstructionsintheVIFtovotebytelephoneorontheInternet.ThetelephoneorInternetvotingshouldbecompletedortheVIFshouldbereceivedbyComputershareat100UniversityAvenue,9thFloor,Toronto,OntarioM5J2Y1,Attention:ProxyDepartment,orbyfaxat+1(866)249-7775(tollfreeinCanadaandtheUnitedStates)or+1(416)263-9524(outsideCanadaandtheUnitedStates),nolaterthan5:00p.m.(Torontotime)onFriday,August1,2014,orinthecaseofanyadjournmentorpostponementoftheMeeting,nolaterthan48hours(excludingSaturdays,Sundaysandholidays)beforethetimeofsuchreconvenedmeeting.Ifyouwishalso to attend theMeetinginpersonandvote(orhaveanotherpersonattendandvoteonyourbehalf),youmustfollowtheinstructionsintheVIF.unless you follow these instructions you are not entitled to attend the Meeting in person and your attendance will be solely at the discretion of the Company.

2. A Broadridge voting instruction form (VIF). ThisisaformprovidedbyBroadridgeFinancialSolutions(“Broadridge”) in accordancewitharrangementsoftenmadebybrokerstodelegatetheresponsibilityforobtainingvotinginstructionstoBroadridge.IfyoureceiveaBroadridgeVIFandwishtovoteattheMeeting,youmusteither(a)completetheVIFandreturnittoBroadridgeor(b)followtheinstructionsintheVIFtovotebytelephoneorontheInternet.BroadridgewilltabulatetheresultsandthenprovideinstructionstoComputersharerespectingthevotingofsharestoberepresentedattheMeeting.YoumustreturntheVIFtoBroadridgeorgivethetelephoneorInternetvotinginstructionswellinadvanceoftheMeetinginordertohaveyoursharesvoted.IfyouwishalsotoattendtheMeetinginpersonandvote(orhaveanotherpersonattendandvoteonyourbehalf),simplystrikeoutthenamesofthepersonsindicatedintheproxyformandinsertyour(orsuchotherperson’s)nameintheblankspaceprovided.unless you follow these instructions you are not entitled to attend the Meeting in person and your attendance will be solely at the discretion of the Company.

If you have any questions about this Circular or how to vote, please contact Canaccord Genuity Investor Relations at +1 (888) 250-3375.

Revoking your proxyAnon-registeredshareholdermayrevokeaproxyorvotinginstructionformwhichhasbeengiventoanintermediarybywrittennoticetotheintermediary.Inordertoensurethatanintermediaryactsuponarevocationofaproxyformorvotinginstructionform,thewrittennoticeshouldbereceivedbytheintermediarywellinadvanceoftheMeeting.

PROVISIONS RELATING TO VOTING OF PROXIES

IfyouarearegisteredShareholderandsubmitaproxyintheformoftheproxyformsenttoregisteredShareholders(the“Proxy”), thenthesharesrepresentedbytheProxywillbevotedfor,againstorwithheldfromvoting,asapplicable,inaccordancewithyourinstructionsonanyballotthatmaybecalledforand,ifyouspecifyachoicetovotefor,againstorwithholdfromvoting,asapplicable,withrespecttoanymattertobeactedupon,theshareswillbevotedaccordingly.Ifyoureturnaformofproxybutdonotgiveanyinstructionsorspecifyhowyouwouldlikeyoursharestobevoted,thenyourshareswillbevotedinfavourofallproposalssetoutintheProxyandfortheelectionofdirectorsandtheappointmentoftheauditorsassetoutinthisCircular.

TheProxygivesthepersonnamedinitthediscretiontovoteasheorsheseesfitonanyamendmentsorvariationstomattersidentifiedinthenoticeofmeetingandonanyothermatterswhichmayproperlycomebeforetheMeeting.AtthedateofthisCircular,themanagementoftheCompanyisnotawareofanyofthoseamendments,variationsorothermatterswhichmaycomebeforetheMeetingotherthanthosereferredtointhenoticeofmeeting.


SIGNIFICANT EquITY RESTRICTIONS

PursuanttorulesestablishedbycertainsecuritiesregulatoryauthoritiesinCanadaandtheUnitedStates,theownershipofsharesofaninvestmentdealerorbrokerdealerissubjecttocertainrestrictions.ToenabletheCompanyanditssubsidiariestocomplywiththeserequirements,thearticlesoftheCompanycontainthefollowingprovisions.

Atanytimeifproxiesaresolicitedfromshareholdersatanymeetingofshareholdersorbeforesuchameeting,theCompanymayrequireadeclarationwithrespecttotheholdingofsharesoftheCompanyasbeneficialownerandanyothermatterthatthedirectorsconsiderrelevanttodetermineiftheholdingofsharesbyanypersoncouldviolatethearticlesorapplicablelegislativeorregulatoryrequirements.

TheCompanyhasthepowertowithdrawthevotingrightsofanyshareofanyclassif:

(a) apersonbeneficiallyownsorcontrols,directlyorindirectly,a“significantequityinterest”intheCompanyandhasnotobtainedtherequiredapprovalsfromallrelevantsecuritiesregulatoryauthorities;

(b) apersonwhowishestoexercisevotingrights,inpersonorbyproxy,refusestosignanddeliver,withrespecttohisorherbeneficialownershipofsharesoftheCompany,adeclarationorotherinformationreasonablynecessarytoassistthedirectorsinmakingtheirdeterminationsunderthearticles;or

(c) ifthedirectorshavedetermined,onthebasisofthedeclarationorinformationprovidedbyapersonwhowishestoexercisevotingrights,thatsuchpersonmayownorcontrol,directlyorindirectly,a“significantequityinterest”intheCompanyandhasnotobtainedtherequiredapprovalsfromallrelevantsecuritiesregulatoryauthorities.

Forthesepurposes,a“significantequityinterest”inthecontextoftheCompanymeans:

(a) inrespectoftheapplicablerulesoftheInvestmentIndustryRegulatoryOrganizationofCanadaInc.(IIROC)andtheTSXVentureExchangeInc.,theholdingof:(i)votingsecuritiescarrying10%ormoreofthevotescarriedbyallvotingsecuritiesoftheCompany,(ii)10%ormoreoftheoutstandingparticipatingsecuritiesoftheCompanyor(iii)aninterestof10%ormoreofthetotalequityinCanaccordGenuityCorp.(awhollyownedsubsidiaryoftheCompany);

(b) inrespectoftheapplicablerulesoftheTorontoStockExchange,theholding,directlyorindirectlyandaloneorincombinationwithanyotherperson,ofsecurities:(i)carrying20%ormoreofthevotescarriedbyallvotingsecurities,(ii)carryingtherighttoreceive20%ormoreofanydistributionofearningsor(iii)accountingfor20%ormoreofthetotalcapitalorequityoftheCompany;

(c) inrespectoftheapplicablerulesoftheBoursedeMontréalInc.(whereasignificantequityinterestisreferredtoasa“majorposition”),havingthepowertodirectorcausethedirectionofthemanagementorpoliciesofCanaccordGenuityCorp.whetherthroughownershipofsecurities,bycontractorotherwise,andapersonisconsideredtoholdamajorpositioninthecapitaloftheCompanypursuanttotherulesoftheBourseifsuchperson,directlyorindirectly:(i)hastherighttovote10%ormoreofthevotingsecuritiesor(ii)isentitledtoreceive10%ormoreofthenetprofitsoftheCompany;

(d) inrespectoftheapplicablerulesoftheAutoritédesmarchésfinanciersinQuébec,thedirectorindirectownershiporholdingofmorethan10%ofthevotingrightsattachedtosecuritiesissuedbytheCompany;and

(e) inrespectoftheapplicablerulesoftheFinancialIndustryRegulatoryAuthority(FINRA)intheUnitedStates,achangeintheequityownershipoftheCompanythatresultsinonepersonorentitydirectlyorindirectlyowningorcontrolling25%ormoreoftheequity.

AstheCompanyistheparentcompanyofCanaccordGenuitylimitedandothersubsidiarieswhichareregulatedbytheFinancialConductAuthority(FCA)intheUK,theFinancial Services and Markets Act 2000(UK)placesanobligationoncontrollersandproposedcontrollersofsuchsubsidiariestoobtaintheapprovaloftheFCAbeforebecomingacontrollerorincreasingthelevelofcontrolheld(incertaincircumstances).FailuretoobtainapprovalisanoffenceundertheFinancial Services and Markets Act 2000 (UK).A“controller”inthecontextofCanaccordGenuitylimitedandtheotherFCAregulatedsubsidiariesisapersonwho(alongwithhisorherassociates)holds10%ormoreofthesharesorvotingrightsintheCompanyorisabletoexercisesignificantinfluenceoverthemanagementoftheCompanythroughhisorhershareholdingintheCompany.

SimilarobligationsandoffencesexistunderthelawsofHongKong,SingaporeandJerseyandGuernseyintheChannelIslandsinrelationtothesubsidiariesoftheCompanywhichareregulatedbythesecuritiesandfuturesregulatoryauthoritiesinthosejurisdictions.


quORuM

ThearticlesoftheCompanyprovidethataquorumforthetransactionofbusinessattheMeetingistwopersonswhoare,orwhorepresentbyproxy,Shareholderswho,intheaggregate,holdatleast5%oftheissuedsharesentitledtobevotedattheMeeting.

Voting Securities and Principal Holders of Voting Securities

ThedirectorsoftheCompanyhavesetJune9,2014astherecorddatefordeterminingwhichShareholdersareentitledtovoteattheMeeting.OnlyregisteredShareholdersonJune9,2014areentitledtovoteattheMeetingoratanyadjournmentorpostponementoftheMeeting.EachregisteredShareholderhasonevoteforeachCommonshareheldatthecloseofbusinessonJune9,2014.Onthatdate,theCompanyhad101,824,388Commonsharesoutstanding.

TotheknowledgeofthedirectorsandexecutiveofficersoftheCompany,asofJune9,2014,therewasnopersonorcompanywhichbeneficiallyowned,orcontrolledordirected,directlyorindirectly,Commonsharescarrying10%ormoreofthevotingrightsattached to the Common shares.

Election of directors

ThedirectorsoftheCompanyareelectedbyitsshareholdersateachannualgeneralmeetingandserveforaone-yeartermuntilthenextannualgeneralmeetingoruntiltheyresignortheirsuccessorsaredulyelectedorappointed.

ThemanagementoftheCompanyproposestonominatethepersonslistedinthefollowingtableforelectionasdirectorsoftheCompanytoserveuntilthenextannualgeneralmeetingortheyresignortheirsuccessorsaredulyelectedorappointed.Intheabsenceofinstructionstothecontrary,proxiesgivenpursuanttothesolicitationbythemanagementoftheCompanywillbevotedfor the nominees listed in this Circular. Management does not contemplate that any of the nominees will be unable to serve as a director. If any vacancies occur in the slate of nominees listed in the following table before the Meeting, management will exercise discretion to vote the Proxy for the election of any other person or persons as directors.


Thefollowingtablesetsoutthenamesofthenomineesforelectionasdirectors,theofficestheyholdwithintheCompany,theirprincipaloccupations,thelengthoftimetheyhaveservedasdirectorsoftheCompany,themembersofeachstandingcommitteeoftheBoardofDirectorsandthenumberofCommonsharesoftheCompanyanditssubsidiariesbeneficiallyowned,directlyorindirectly,orcontrolledordirectedbyeachproposeddirector.

Theinformationastosharesandothersecuritiesbeneficiallyownedhasbeenprovidedbythedirectorsthemselvesand,unlessotherwiseindicated,iscurrentasofMay31,2014.

Nameandresidence PositionwiththeCompany Principaloccupation Directorsince Sharesowned

Charles N. Bralver Director Corporatedirectorandadvisor 2010 50,500(2)

Westport, Connecticut

Massimo C. Carello(1) Director Corporatedirectorandprivate 2008 55,000(2)

london,England investorinpubliccompanies

Kalpana desai Proposeddirector Corporatedirectorandadvisor — —

HongKong

William J. Eeuwes(1,3) Director SeniorVicePresident&GlobalHead, 2002 Nil(2)

Burlington,Ontario PrivateEquity,ManulifeFinancial

Michael d. Harris(3,4) Director Seniorbusinessadvisorof 2004 79,000(2)

EastYork,Ontario FaskenMartineauDuMoulinllP

david J. Kassie(5) Chairmananddirector ChairmanoftheCompanyand 2010 3,553,181(6)

Toronto,Ontario CanaccordGenuityCorp.

Terrence A. Lyons(1,3,7) leadDirector Corporatedirectorandadvisor 2004 31,413(2)

Vancouver,BritishColumbia

Paul d. Reynolds ChiefExecutiveOfficer ChiefExecutiveOfficeroftheCompany 2005 1,151,797(8)

Vancouver,BritishColumbia anddirector

dipesh J. Shah Director Corporate director 2012 Nil(3)

Middlesex,UnitedKingdom

(1) MemberoftheAuditCommittee.(2) Inaddition,effectivefromApril1,2011,eachoftheindependentdirectorshasreceiveddeferredshareunits(DSUs).Seenote(c)tothetableundertheheading“Compensationofdirectors”

onpage26and“Deferredshareunits”onpage29.ForthosewhoweredirectorsbeforeApril1,2011,eachofMessrs.Eeuwes,Harrisandlyonshasbeengrantedoptionstopurchaseupto100,000CommonsharesoftheCompany(ofwhich25,000haveexpired).Mr.BralveronlybecameadirectorinFebruary2010andhasbeengrantedoptionstopurchaseupto25,000CommonsharesoftheCompany.Mr.CarelloonlybecameadirectorinAugust2008andhasbeengrantedoptionstopurchaseupto75,000CommonsharesoftheCompany.Mr.ShahonlybecameadirectorinNovember2012andhasnotbeengrantedanyoptions.TheDSUsandoptionsheldbyMr.EeuwesareheldasabaretrusteeonbehalfofTheManufacturerslifeInsuranceCompany.

(3) MemberoftheCorporateGovernanceandCompensationCommittee.(4) Mr.HarriswasadirectorofNaturade,Inc.,acompanypubliclytradedintheUnitedStates,untilAugust2006.Withinayearafterhisresignationasadirector,thatcompanyfiledforreorganization

underChapter11oftheUSBankruptcyCode.Mr.HarriswasadirectorofGrantForestProductsInc.OnJune25,2009,theOntarioSuperiorCourtofJustice(Commerciallist)madeanorderunderthe Companies’ Creditors Arrangement Act(CCAA)inrespectofGrantForestProductsInc.Mr.HarrisremainedadirectorofGrantForestProductsInc.untilJune30,2010toassistwiththeorderlycompletion of the arrangement under the CCAA.

(5) Mr.KassiewasChairmanandadirectorofSkyPowerCorporationatthetimewhen,onAugust12,2009,theOntarioSuperiorCourtofJustice(Commerciallist)madeanorderundertheCCAAinrespectofSkyPowerCorporation.Therealizationsintheestateofthecorporation(nowcalledInterwindCorp.)areongoingandanyshortfalltothecreditorsisunknownatthistime.Mr.KassiewasalsoadirectorofACEAviationHoldingsInc.atthetimewhen,onApril25,2012,itpassedashareholderresolutionapprovingliquidationofthecompanypursuanttotheCanada Business Corporations Act.Theliquidationprocessiscontinuing.

(6) Oftheseshares,169,120areownedbyatrustofwhichMr.Kassieisoneofthebeneficiaries.Inaddition,Mr.KassieparticipatesintheCompany’slTIP.See“longTermIncentivePlan(lTIP)”onpage30.Mr.Kassieholds185,776restrictedshareunits.

(7)Mr.lyonswasadirectorandexecutiveofficerofFTCapitalltd.(FTCapital)whichwassubjecttoceasetradeordersinJulyandAugust2003ineachoftheprovincesofManitoba,OntarioandQuébecduetothefailureofFTCapitaltofilefinancialstatementssincethefinancialyearendedDecember31,2002.FTCapitalwaswoundupanddissolvedonJune30,2009andMr.lyonsceasedtobeadirector.UntilJanuary1,2014,Mr.lyonswasalsoadirectorofRoyalOakVenturesInc.(RoyalOak),whichwassubjecttoceasetradeordersineachoftheprovincesofBritishColumbia,Alberta,OntarioandQuébecduetothefailureofRoyalOaktofilefinancialstatementssincethefinancialyearendedDecember31,2003.Mr.lyonswasadirectorofInternationalUtilitiesStructuresInc.(IUSI),whichonOctober17,2003wasgrantedcreditorprotectionbytheCourtofQueen’sBenchinAlbertaundertheCCAA.OnMarch31,2005anorderwasgrantedapprovingthefinalIUSIrestructuringplanundertheCCAAatwhichtimeMr.lyonsresignedasadirector.Mr.lyonswaselectedtotheboardsofdirectorsofeachofFTCapital,RoyalOakandIUSIlargelybecauseofhisvaluableexperienceandexpertiseinfinancialrestructuringsintheinsolvencycontext.

(8) Inaddition,Mr.ReynoldsparticipatesintheCompany’slTIP.See“longTermIncentivePlan(lTIP)”onpage30.Mr.Reynoldsholds167,659restrictedshareunits.Mr.Reynoldshasalsobeengrantedoptionstoacquireanadditional117,318CommonsharesoftheCompany.See“Shareoptionplan”onpage32.

MAJORITY VOTING

Underapplicablecorporatelaw,shareholderscanonlyvote“for”or“withhold”theirvotefordirectors,butmaynotvote“against”them.Asaresult,asingle“for”votecanresultintheelectionofadirector,irrespectiveofthenumberof“withhold”votes.InconnectionwiththeMeeting,theproxyformsusedfortheelectionofdirectorswillenableshareholderstovoteinfavourof,orwithholdtheirvotefor,eachdirectornomineeseparately.TheBoardhasvoluntarilyadoptedamajorityvotingpolicyrequiringdirectorstosubmittheirresignationincircumstances(excludingcontestedelections)wherethenumberofvoteswithheldisgreaterthanthenumberofvotescastforthedirector.Thispolicybecameeffectiveinrespectoftheelectionstakingplaceatthe2011 annual general meeting of shareholders.


Intheeventofacontestedelection,wherethenumberofnomineesfordirectorexceedsthenumberofdirectorstobeelected,subjecttoapplicablelaw,thevotingmethodtobeappliedforpurposesofelectingdirectorsatthemeetingwillbedeterminedbythechairofthemeetinginhisorhersolediscretion.Forgreatercertainty,thechairofthemeetingmay,inthecontextofacontestedelection,useslatevotingfordirectorelections.

BACKGROuNd OF THE NOMINEES

SetforthbelowisabriefprofileofeachofthenomineesforelectionasadirectoroftheCompany.Otherthanassetforthbelow,eachnomineehasheldthesameprincipaloccupationforthelastfiveyears.

Charles N. Bralver isafinancialservicesexecutivewithover30yearsofcapitalmarketsexperience.Formorethan23years–from1984to2007–Mr.BralverwasafounderandViceChairmanofmanagementconsultancyOliver,Wyman&Co.wherehespecializedinstrategy,riskandoperationalworkforleadinginvestmentbanks,assetmanagers,exchangesandothermarketutilities.HecontinuestoserveasamemberofthesenioradvisoryboardofOliverWyman.Mr.BralverservedasSeniorAssociateDeanforInternationalBusinessandFinanceattheFletcherSchooloflawandDiplomacyfrom2007to2010,from2007to2009asastrategicadvisortoWarburgPincusllCandfrom2011to2012asaManagingDirectorofMassifPartnersllC.Mr.BralverservesasadirectoroftheCompany,asadirectorandmemberoftheriskcommitteeofNewStarFinancial,Inc.andontheBoardofVisitorsoftheFletcherSchool.Mr.BralverstartedhiscareeratBoozAllenHamilton.HeisaUScitizenandagraduateoftheFletcherSchooloflawandDiplomacyandDartmouthCollege.

InadditiontoCanaccordGenuityGroupInc.,Mr.Bralverisadirectorofthefollowingpubliccompany:NewStarFinancial,Inc.Mr.BralverattendedallofthesixmeetingsoftheBoardofDirectorsheldbetweenApril1,2013andJune9,2014.

Massimo Carello, K.C.F.O.,isacorporatedirectorandaprivateinvestorinpubliccompanies.

Mr.CarellowastheChairmanandChiefExecutiveOfficerofDinersClubUKltd.from2001to2004andwastheChairmanandChiefExecutiveOfficerofFiatUKltd.from1990to2001.Mr.CarelloservedasamemberoftheConfederationofBritishIndustry(CBI)President’sCommitteefrom1998to2003andwasamemberoftheCBIEuropeanCommittee.HewasVicePresidentoftheItalianChamberofCommerceintheUKfrom1998to2005.

InadditiontoCanaccordGenuityGroupInc.,Mr.CarelloisadirectorandamemberoftheAuditCommitteesofthefollowingpubliccompanies:CanadianOverseasPetroleumlimitedandOrsuMetalsCorporation.UntilDecember2010,hewasalsoadirectorandamemberoftheAuditCommitteeofUraniumOneInc.OfthemeetingsoftheBoardofDirectorsandthecommitteeonwhichheservedheldbetweenApril1,2013andJune9,2014,Mr.CarelloattendedallofthesixmeetingsoftheBoardofDirectorsandallofthefivemeetingsoftheAuditCommittee.

Kalpana desai isacorporatedirectorandadvisor.Shehasover22yearsofinternationalinvestmentbankingexperience.ShewasHeadofMacquarieCapitalAsia,theinvestmentbankingdivisionofMacquarieGroup,from2010to2013,havingjoinedthatfirmin2009.From2002to2009shewasHeadoftheAsia-PacificMergers&AcquisitionsGroupandaManagingDirectorintheInvestmentBankingDivisionofMerrilllynch(nowcalledBankofAmericaMerrilllynch)basedinHongKong,havingjoinedthatfirmin1998.Earlier,Ms.DesaihadworkedatBarclaysdeZoeteWeddinlondonandHongKongandJ.HenrySchroderWaggandCoopers&lybrandConsultinginlondon.Ms.DesaiwasamemberoftheTakeoversandMergersPaneloftheSecuritiesandFuturesCommissioninHongKongfrom2007to2014.

BorninKenyaandeducatedintheUnitedKingdom,Ms.DesaihaslivedinHongKongsince1997.ShehasaB.Sc.withHonoursfromtheUniversityoflondon(londonSchoolofEconomicsandPoliticalScience)andtrainedasaCharteredAccountant(ACA)withCoopers&lybrand(nowPricewaterhouseCoopers)inlondon.

Ms.Desaiisnotcurrentlyadirectorofanypubliccompanies.

William (Bill) EeuwesisSeniorVicePresident&GlobalHead,PrivateEquity,ManulifeFinancial.HehasexecutiveresponsibilityforRegionalPowerInc.,NAlResourceslimited(oilandgas)andtwoprivateequityteams,ManulifeCapitalinCanadaandHancockCapitalManagementintheUS.BeforejoiningManulifein1999,Mr.Eeuweswasacareerbankerwith25yearsofexperienceinunderwritingandthemanagementofabroadrangeoffinancingincludinglBOs,corporatelendingandprojectfinance.Mr.EeuwesisagraduateoftheRichardIveySchoolofBusinessattheUniversityofWesternOntario.Mr.EeuwesisadirectorofseveralprivatecompaniesinCanada,andisamemberoftheInstituteofCorporateDirectors.

Mr.EeuwesisnotadirectorofanypubliccompaniesotherthanCanaccordGenuityGroupInc.OfthemeetingsoftheBoardofDirectorsandthecommitteesonwhichheservedheldbetweenApril1,2013andJune9,2014,Mr.EeuwesattendedallofthesixmeetingsoftheBoardofDirectors,allofthefivemeetingsoftheAuditCommitteeandallofthesixmeetingsoftheCorporateGovernanceandCompensationCommittee.


Michael Harris, ICd.d,isaseniorbusinessadvisorwiththelawfirmofFaskenMartineauDuMoulinllPinToronto,andthePresidentofhisownconsultingfirm,SteaneConsultingltd.,and,inthiscapacity,actsasaconsultanttovariousCanadiancompanies.BeforejoiningFaskenMartineauinSeptember2013,hewasaseniorbusinessadvisorwiththelawfirmofCasselsBrock&BlackwellinTorontofromMarch2010andbeforethataseniorbusinessadvisorwiththelawfirmofGoodmansllPinToronto.

Mr.HarriswasborninTorontoin1945andwasraisedinCallanderandNorthBay,Ontario.BeforehiselectiontotheOntariolegislaturein1981,MikeHarriswasaschoolteacher,aschoolboardtrusteeandchairandanentrepreneurintheNipissingarea.OnJune8,1995,Mr.Harrisbecamethe22ndPremierofOntariofollowingalandslideelectionvictory.In1999,hewasre-elected–makinghimthefirstOntarioPremierinover30yearstoformasecondconsecutivemajoritygovernment.

InadditiontosittingonseveralboardsofCanadiancorporations,healsoservesasadirectoroftheTimHortonChildren’sFoundation,theluminatoFestivalandtheManningCentreforBuildingDemocracy.HeistheHonoraryChairoftheNorthBayDistrictHospitalCapitalCampaignandtheNipissingUniversityandCanadoreCollegeCapitalCampaign.Mr.HarrisisalsoaSeniorFellowoftheFraserInstitute.HehasreceivedhisICD.DcertificationfromtheInstituteofCorporateDirectors.

InadditiontoCanaccordGenuityGroupInc.,Mr.Harrisisadirectorofthefollowingpubliccompanies:ChartwellRetirementResidences(Chair),ElementFinancialCorporation,FirstServiceCorporationandRoutelInc.(Chair).OfthemeetingsoftheBoardofDirectorsandthecommitteeonwhichheservedheldbetweenApril1,2013andJune9,2014,Mr.HarrisattendedallofthesixmeetingsoftheBoardofDirectorsandallofthesixmeetingsoftheCorporateGovernanceandCompensationCommittee.

david Kassie becameGroupChairmanandadirectoroftheCompanyontheclosingoftheacquisitionofGenuityCapitalMarkets,aCanadianinvestmentbank,onApril23,2010,andbecameChairmanonApril1,2012.HewasthePrincipal,ChairmanandChiefExecutiveOfficerofGenuityCapitalMarketsfrom2004untilMay9,2010,whentheintegrationofthebusinessesofGenuityCapitalMarketsandCanaccordFinancialltd.wascompletedunderthenameCanaccordGenuity.Before2004,hewasChairmanandChiefExecutiveOfficerofCIBCWorldMarketsandtheViceChairmanofCIBC.

Mr.Kassiehasextensiveexperienceasanadvisor,underwriterandprincipal.Hesitsonanumberofcorporateboards.Mr.KassieisactivelyinvolvedincommunityandcharitableorganizationsandisontheboardsoftheRichardIveySchoolofBusinessandtheTorontoInternationalFilmFestivalGroup,andwasformerlyontheBoardoftheHospitalforSickChildren.

Mr.KassieholdsaB.Comm.(Honours)inEconomicsfromMcGillUniversity(1977),andanMBAfromtheUniversityofWesternOntario(1979).

InadditiontoCanaccordGenuityGroupInc.,Mr.Kassieisadirectorofthefollowingpubliccompany:Reitmans(Canada)limited.Mr.KassieattendedallofthesixmeetingsoftheBoardofDirectorsheldbetweenApril1,2013andJune9,2014.

Terrence (Terry) Lyons, ICd.d,isthepastChairmanofNorthgateMineralsCorporation,whichwasacquiredbyAuRicoGoldInc.inlate2011,creatinganewmid-capgoldcompanywithavalueofover$3billion.

Mr.lyonsisaCivilEngineer(UBC)withanMBAfromtheUniversityofWesternOntario.HesitsontheAdvisoryBoardoftheRichardIveySchoolofBusinessandisactiveinsportsandcharitableactivities,isapastGovernoroftheOlympicFoundationofCanada,pastChairmanoftheMiningAssociationofBCandin2007wasawardedtheINCOMedalbytheCanadianInstituteofMiningandMetallurgyfordistinguishedservicetotheminingindustry.HehasreceivedhisICD.DcertificationfromtheInstituteofCorporateDirectors.

InadditiontoCanaccordGenuityGroupInc.,Mr.lyonsisadirectorofthefollowingpubliccompanies:MartinreaInternationalInc.,PolarisMineralsCorporationandSprottResourceCorp.HeisalsoadirectorofVerolubeInc.,aprivatecorporation.OfthemeetingsoftheBoardofDirectorsandthecommitteesonwhichheservedheldbetweenApril1,2013andJune9,2014,Mr.lyonsattendedallofthesixmeetingsoftheBoardofDirectors,allofthefivemeetingsoftheAuditCommitteeandallofthesixmeetingsoftheCorporateGovernanceandCompensationCommittee.

Paul ReynoldswasnamedthePresidentoftheCompanyinAugust2006andChiefExecutiveOfficeroftheCompanyinAugust2007andleadsthefirmfromCanaccordGenuity’sTorontooffice.Between1999and2007,hemanagedtheGroup’slondon,England,officeasPresidentandChiefOperatingOfficerofEuropeanoperationsandwasnamedGlobalHeadofCanaccordGenuity’scapitalmarketsdivisioninApril2005.

Mr.Reynoldshasover30yearsofexperienceinthesecuritiesindustrybeginningasanequitiestrader.In1985,hejoinedCanaccordGenuity,workingasanInvestmentAdvisorbeforemovingintoaseniorroleininstitutionalsales.Inthelate1990s,Mr.Reynoldsassumedaleadershiproleininvestmentbanking,wherehespecializedinfinancingemerginganddevelopingcompaniesintheresource,technologyandbiotechnologysectors.


Mr.ReynoldsalsoservesontheboardsoftheInternationalCrisisGroupandtheHospitalforSickChildreninToronto.Mr.ReynoldsisnotadirectorofanypubliccompaniesotherthanCanaccordGenuityGroupInc.Mr.ReynoldsattendedallofthesixmeetingsoftheBoardofDirectorsheldbetweenApril1,2013andJune9,2014.

dipesh Shah, O.B.E., F.R.S.A.,isadirectorontheboardsofThamesWaterandtheKembleWatergroupofcompanies,EquusPetroleumplc(whereheisSeniorIndependentDirectorandChairmanoftheNominationsCommittee),JKXOil&Gasplc(whereheisSeniorIndependentDirectorandChairmanoftheRemunerationCommittee),TheCrownEstateandthe2020EuropeanFundforEnergy,ClimateChangeandInfrastructure(the“EUMargueriteFund”,whereheisChairmanoftheInvestmentCommittee).HeisalsoaTrusteeoftheBritishYouthOperaandaGovernorofMerchantTaylors’School.

Mr.ShahwasformerlytheChiefExecutiveoftheUKAtomicEnergyAuthorityandofvariouslargebusinessesintheBPGroup,wherehewasamemberoftheGroupleadershipformorethanadecade.Mr.ShahwasChairman,interalia,ofViridianGroupplc,HgCapitalRenewablePowerPartnersllPandtheEuropeanPhotovoltaicIndustryAssociation.Inaddition,hehasbeenaDirectorofseveralmajororganizations,includingBabcockInternationalGroupPlcandlloyd’soflondon.HewasalsoamemberoftheUKGovernment’sRenewableEnergyAdvisoryCommitteefrom1994to2002.Earlier,Mr.ShahwastheChiefEconomistforBPOilUK.

BorninIndia,andbroughtupinUganda,Mr.ShahisagraduateoftheUniversityoflondon,theUniversityofWarwickandtheHarvardBusinessSchoolmanagementprogram.HewasappointedanOfficeroftheOrderoftheBritishEmpire(O.B.E.)inthe2007NewYearHonourslistandisalifeFellowoftheRoyalSocietyofArts(F.R.S.A.).

InadditiontoCanaccordGenuityGroupInc.,Mr.Shahisadirectorofthefollowingpubliccompanies:EquusPetroleumplcandJKXOil&Gasplc.Mr.ShahattendedallofthesixmeetingsoftheBoardofDirectorsheldbetweenApril1,2013andJune9,2014.

Appointment of Auditors

Ernst&YoungllPhavebeentheauditorsoftheCompanysinceJune21,2004.ThemanagementoftheCompanyintendstonominatethatfirmforre-appointment.FormsofproxygivenpursuanttothesolicitationofthemanagementoftheCompanywill,onanypoll,bevotedasdirectedand,ifthereisnodirection,forthere-appointmentofErnst&YoungllPataremunerationtobefixedbythedirectors.

ForthefinancialyearendedMarch31,2014,Ernst&YoungllPbilled$2,528,870inauditfees,$45,820inauditrelatedfees,$125,431infeesfortaxcomplianceandpreparationand$346,706infeesfortaxadvisoryservicesincludingadvisoryworkonvariouscorporatetaxmattersincludingacquisitionrelatedtaxadvisoryfees.ForthefinancialyearendedMarch31,2013,Ernst&YoungllPbilled$2,341,400inauditfees,$231,447inauditrelatedfees,$313,519infeesfortaxcomplianceandpreparationand$669,755infeesfortaxadvisoryservicesincludingadvisoryworkonvariouscorporatetaxmattersincludingacquisitionrelatedtaxadvisoryfees.

Corporate Governance Statement

TheCompanyisrequiredbytheDisclosureRulesandTransparencyRulesoftheUnitedKingdomlistingAuthority(DTR7.2)toincludeaCorporateGovernanceStatementinitsannualdirectors’report.ThissectionoftheCircularisthatreport.

Corporate governance regime – Canada

As a corporation incorporated under the Business Corporations Act(BC)anda“reportingissuer”forthepurposesofCanadiansecuritieslaws,CanaccordGenuityissubjecttothecorporategovernancerequirements,guidelinesandassociateddisclosurerequirements(asapplicable)oftheBusiness Corporations Act(BC),itsarticles,thechartersoftheBoard’scommitteesandotherpoliciesandapplicablelaws,includingNationalInstrument52-110(whichprovidesforanumberofmandatoryrequirementsinrespectofauditcommitteesofpubliclytradedcompanies),NationalPolicy58-201(whichoutlinesCanadiansecuritiesregulators’corporategovernanceguidelinesinrespectof,amongotherthings,boardcompositionandeffectiveness,theadoptionofawrittenboardmandateacknowledgingtheboard’sresponsibilityfortheidentificationoftheprincipalrisksofanissuer’sbusiness,andensuringtheimplementationofappropriatesystemstomanagetheserisks,theadoptionandmonitoringofwrittenstandardsaddressingvariousissues,includingconflictsofinterest,theappointmentofacompensationcommitteecomposedofindependentdirectorsandresponsibleforcertaincompensation-relatedmatters,andthedevelopmentofaneffectivecommunicationpolicy)andNationalInstrument58-101(whichrequirespubliccompaniestomakedisclosureregardinganumberofcorporategovernancematters).

The Business Corporations Act(BC)isavailableonthewebsiteoftheQueen’sPrinterforBritishColumbiaatwww.bclaws.ca.ThearticlesoftheCompanyandsummariesofthechartersoftheBoard’scommittees,theDisclosureControlsPolicy,the CanaccordGenuityWhistleblowerPolicyandtheCodeofBusinessConductandEthicsareavailableontheCompany’swebsiteatwww.canaccordgenuitygroup.com(under“InvestorRelations–CorporateDisclosure”and“–CorporateGovernance”).Applicable


CanadiansecuritieslawsincludingNationalInstruments52-110,58-201and58-101areavailableonthewebsiteoftheOntarioSecuritiesCommissionatwww.osc.gov.on.caunder“Securitieslaw&Instruments–Instruments,Rules&Policies”.

Corporate governance regime – uK

AsaconsequenceoftheCommonsharesoftheCompanybeingadmittedtotradingonthestandardsegmentoftheOfficiallist,theUKCorporateGovernanceCodepublishedbytheFinancialReportingCouncilwillnotapplytoCanaccordGenuity.InviewoftheapplicableCanadiancorporategovernancerequirementsalreadyoutlined,CanaccordGenuitydoesnotcurrentlyintendtovoluntarilycomplywiththeUKCorporateGovernanceCode.

BOARd OF dIRECTORS

TheCompanycurrentlyhaseightdirectors,amajorityofwhom(six)areindependentofmanagementasdeterminedunderapplicablesecuritieslegislation.InordertofacilitatetheexerciseofindependentjudgmentbytheBoardofDirectors,theBoardhasappointedaleaddirectorandholdsregularmeetingswithoutmanagementdirectorspresent.TheindependentdirectorsareCharlesBralver,MassimoCarello,WilliamEeuwes,MichaelHarris,TerrencelyonsandDipeshShah.Theotherdirectorsarenotindependent:DavidKassieandPaulReynoldsaremembersoftheexecutivemanagementofCanaccordGenuity.

Noneoftheindependentdirectorsworkintheday-to-dayoperationsoftheCompanyoranyofitssubsidiaries,arepartytoanymaterialcontractwiththeCompanyoranyofitssubsidiariesorreceiveanyfeesfromtheCompanyoritssubsidiaries,otherthandirectors’feesandexpenses.

Moreinformationabouteachdirectorwhoisstandingforelection,includinganyrelationshiptheyhavewiththeCompany,andotherdirectorships,canbefoundstartingonpage8ofthisCircular.

TheChairmanisnotanindependentdirector,buttheBoardofDirectorshasappointedTerrencelyons,whoisanindependentdirector,astheleadDirector.TherearewrittentermsofreferencefortheleadDirector.Ingeneral,heisresponsibletoactastheliaisonbetweenmanagementandtheBoardofDirectorstoensuretherelationshipsbetweenmanagementandtheBoardareconductedinaprofessionalandconstructivemanner.ThisincludesensuringthattheboundariesbetweentheBoardandmanagementareclearlyunderstoodandrespectedbybothmanagementanddirectorsandthattheBoardreceivesadequateandregularupdatesfromtheChiefExecutiveOfficerandothermembersofmanagementonallissuesimportanttotheBoard’swork.HeprovidessupporttotheCorporateGovernanceandCompensationCommitteeindevelopingdirectorcriteriaandpotentialcandidatestoberecommendedforappointmenttotheBoardandensuringanadequateorientationandtrainingprogramfornewboardmembers.HeensuresthattheBoardhasaprocessforassessingtheperformanceoftheChiefExecutiveOfficerandensuringthatappropriatesuccession,developmentandcompensationplansareinplaceforseniormanagement.Hereviewsdirectors’conflictofinterestissuesastheyarise.

TheleadDirectorisalsoresponsibletoreceiveand,ifappropriate,determineactiononanycommunicationsfrominterestedpartiesthatareaddressedtotheindependentdirectors.SuchcommunicationscanbesenttoMr.lyonsinwritingbymailto2039West35thAvenue,Vancouver,BCV6M1J1.

UndertheleadershipoftheleadDirector,ateachregularquarterlymeetingoftheBoardofDirectorsoroneofitscommittees,theindependentdirectorsmeetbythemselveswiththenon-independentdirectorsandmembersofmanagementnotinattendance.TheindependentdirectorshaveheldfivesuchmeetingsbetweenApril1,2013andJune9,2014.TheBoardissupportiveofindividualdirectorsandcommitteechairsengagingindependentadvisorsattheexpenseoftheCompanyinappropriate circumstances.

Board mandate and position descriptions

TheBoardofDirectorsassumesresponsibilityforthestewardshipoftheCompany,actingasawholeandthroughitscommittees,andhasapprovedaformalBoardGovernanceManual(the“Mandate”)includingawrittenmandatefortheBoardandwrittenpositiondescriptionsfortheChairman,theChiefExecutiveOfficer,theleadDirector,eachindividualdirector,eachBoardcommittee and the chair of each Board committee.

TheMandatefortheBoardofDirectorsoftheCompanyis:

I. Introduction

1. Theprimaryresponsibilityoftheboardofdirectors(“Board”)istofosterthelongtermsuccessoftheCompanyconsistentwiththeBoard’sresponsibilitytotheshareholderstomaximizeshareholdervalue.

2. ThesetermsofreferencearepreparedtoassisttheBoardandmanagementinclarifyingresponsibilitiesandensuringeffectivecommunicationbetweentheBoardandmanagement.


II. Composition and board organization

1. NomineesfordirectorsareinitiallyconsideredandrecommendedbytheBoard’sCorporateGovernanceandCompensationCommittee,approvedbytheentireBoardandelectedannuallybytheshareholdersoftheCompany.

2. CertainoftheBoard’sresponsibilitiesreferredtohereinmaybedelegatedtoBoardcommittees.Theresponsibilitiesofthosecommitteeswillbeassetforthintheirtermsofreference,asamendedfromtimetotime.

III. Duties and responsibilities

A. Managing the affairs of the Board

TheBoardoperatesbydelegatingcertainofitsauthorities,includingspendingauthorizations,tomanagementandbyreservingcertainpowerstoitself.SubjecttolegalobligationsandtothearticlesoftheCompany,theBoardretainstheresponsibilityformanagingitsownaffairs,including:

(a) planningitscompositionandsize; (b) selectingitsChair; (c) nominatingcandidatesforelectiontotheBoard; (d) appointingcommittees; (e) determiningcompensationforindependentdirectors;and (f ) assessingtheeffectivenessoftheBoard,committeesanddirectorsinfulfillingtheirresponsibilities.

B. Management and human resources

TheBoardhastheresponsibilityfor:

(a) theappointmentandsuccessionoftheChiefExecutiveOfficer(CEO)andmonitoringCEOperformance,approvingCEOcompensationandprovidingadviceandcounseltotheCEOintheexecutionoftheCEO’sduties;

(b) approvingtermsofreferencefortheCEO; (c) approvingthecorporateobjectivesthattheCEOisresponsibleformeeting; (d) reviewingCEOperformanceatleastannually,againstagreeduponobjectives; (e) totheextentfeasible,satisfyingitselfastotheintegrityoftheCEOandotherseniorofficers,andthattheCEO

andotherseniorofficerscreateacultureofintegrityandcompliancethroughouttheCompany; (f ) approvingcertaindecisionsrelatingtotheChiefExecutiveOfficerandthoseseniorofficersreportingdirectlyto

theChiefExecutiveOfficer,includingthe: (i) appointmentanddischargeofthoseofficers; (ii) compensationandbenefitsforthoseofficers;and (iii) acceptanceofoutsidedirectorshipsonpubliccompaniesbythoseofficers(otherthannot-for-profit

organizations); (g) ensuringsuccessionplanningprogramsareinplace,includingprogramstotrainanddevelopmanagement;and (h) approvingcertainmattersrelatingtoallemployees,including: (i) theannualsalarypolicy/programforemployees;and (ii) newbenefitprogramsormaterialchangestoexistingprograms.

C. Strategy and plans

TheBoardhastheresponsibilityto:

(a) adoptaprocesstodevelopastrategicplanfortheCompanythattakesintoaccount,amongotherthings,theopportunitiesandrisksofthebusiness;

(b) participatewithmanagementinthedevelopmentof,andultimatelyapprove,theCompany’sstrategicplan; (c) approveannualcapitalandoperatingplanswhichsupporttheCompany’sabilitytomeetitsstrategicplan; (d) approvetheenteringinto,orwithdrawingfrom,linesofbusinessthatare,orarelikelytobe,materialto

theCompany; (e) approvematerialdivestituresandacquisitions;and (f ) monitortheCompany’sprogresstowardsitsgoals,andreviseandalteritsdirectionthroughmanagementin

light of changing circumstances.


D. Financial and corporate issues


(a) takereasonablestepstoensuretheimplementationandintegrityoftheCompany’sinternalcontrolandmanagementinformationsystems;

(b) monitoroperationalandfinancialresults; (c) approveannualfinancialstatementsandquarterlyfinancialresults; (d) declaredividends; (e) approvefinancings,changesinauthorizedcapital,issueandrepurchaseofshares,issueofdebtsecurities,

listing of shares and other securities, issue of commercial paper, and related prospectuses and trust indentures;and

(f ) recommendappointmentofexternalauditorsandapproveauditors’fees.

E. Business and risk management


(a) ensuremanagementidentifiestheprincipalrisksoftheCompany’sbusinessandimplementsappropriatesystemstomanagetheserisks;

(b) assessandmonitormanagementcontrolsystems: (i) evaluateandassessinformationprovidedbymanagementandothers(e.g.,internalandexternalauditors)

abouttheeffectivenessofmanagementcontrolsystems; (ii) understandprincipalrisksandreviewwhethertheCompanyachievesaproperbalancebetweenriskand

returns,andthatmanagementensuresthatsystemsareinplacetoaddresstherisksidentified;and (iii) reviewanannualreportoftheChiefComplianceOfficerwhichwouldincluderesultsofIIROCaudit

changesinregulatoryenvironmentandothercomplianceinitiatives.

F. Policies and procedures


(a) reviewcompliancewithallsignificantpoliciesandproceduresbywhichtheCompanyisoperated; (b) directmanagementtoensuretheCompanyoperatesatalltimeswithinapplicablelawsandregulations;and (c) reviewsignificantnewcorporatepoliciesormaterialamendmentstoexistingpolicies(including,forexample,

policiesregardingbusinessconduct,conflictofinterestandotherregulatoryrequirements).

G. Compliance reporting and corporate communications


(a) ensuretheCompanyhaseffectivestatutoryandregulatorycompliancereportingandsystems; (b) ensuretheCompanyhasinplaceeffectivecommunicationprocesseswithshareholdersandother

stakeholdersandfinancial,regulatoryandotherrecipients,includingtheadoptionofacommunicationpolicyfortheCompany;

(c) approveinteractionwithshareholdersonallitemsrequiringshareholderapproval; (d) ensuretheCompany’sfinancialperformanceisadequatelyreportedtoshareholders,othersecurityholdersand

regulatorsonatimelyandregularbasis; (e) ensurethefinancialresultsarereportedfairlyandinaccordancewithgenerallyacceptedaccountingprinciples; (f ) reportannuallytoshareholdersontheBoard’sstewardshipfortheprecedingyear(theAnnualReport).

IV. General legal obligations of the board of directors

1. The Board is responsible for:

(a) directingmanagementtoensurelegalrequirementshavebeenmet,anddocumentsandrecordshavebeenproperlyprepared,approvedandmaintained;and

(b) approvingchangesinthearticles,mattersrequiringshareholderapprovalandagendasforshareholdermeetings.


2. InBritishColumbialaw,thedirectorsoftheCompanyaresubjecttofiduciarydutiesandobligationsthataredefinedpartlybycommonlawandpartlybystatute.Itisnotpossibletodefinecomprehensivelywhatthedutiesandobligationsare,butthemostimportantofthemarethefollowing:

(a) subjecttotheBusiness Corporations Act andthearticlesoftheCompany,thedirectorsmustmanageorsupervisethemanagementoftheaffairsandbusinessoftheCompany(s.136(1),Business Corporations Act);

(b) eachdirectormustacthonestly,ingoodfaithandinthebestinterestoftheCompany(s.142(1)(a),Business Corporations Act);

(c) eachdirectormustexercisethecare,diligenceandskillofareasonablyprudentpersonincomparablecircumstances(s.142(1)(b),Business Corporations Act);

(d) everydirectorwho,inanyway,directlyorindirectly,isinterestedinaproposedcontractortransactionwiththeCompanymustdisclosethenatureandextentoftheirinterestatameetingofthedirectorsandwillbeliabletoaccountforanyprofitmadeunlesstheproceduresintheBusiness Corporations Act and the articles are followed(ss.147and148,Business Corporations Act);and

(e) thedirectorswillbepersonallyliableunderanumberofprovincialandfederalstatutesforsuchthingsasunpaidwages,unpaidGSTandprovincialsocialservicetaxremittances,unpaidemploymentinsurancepremiums,unpaidCanadaPensionPlanremittancesandunpaidincometaxsourcedeductions.

3. SuchdutiesandobligationsmaybeenforcedbytheCompany,itsshareholdersorgovernmentagencies.BecausetheCompanyoperatesinahighlyregulatedenvironment,thespecialriskthatthedirectorsfaceisthatthesedutiesandobligationswillbetakenintoaccountbythesecuritiesregulatorsinthecontextofthefitnessofthedirectorsto act as directors or to continue to be registered under securities legislation.

TheChairmanhasfourprimaryroles:(a)toactasthechairofthemeetingsoftheshareholdersandasthepresidingdirectoratBoardmeetingsandtomanagetheactivitiesoftheBoard,includingensuringtheBoardisorganizedproperly,functionseffectivelyandmeetsitsobligationsandresponsibilities;(b)tofacilitateeffectivecommunicationsandrelationswithallstakeholdersandthegeneralpublicwithparticularemphasisonworkingwiththeBoardanditsappointeestofacilitatetimelydecision-making; (c)toworkasanadvisortotheChiefExecutiveOfficer(the“CEO”) and senior management team ensuring that the performance andinformationrequirementsoftheBoardaremet;and(d)toactasoneoftheprimaryspokespersonsforCanaccordGenuity.

TheCEOisaccountabletotheBoardforprovidingoverallleadershipanddirectiontoCanaccordGenuity.TheCEOhasdirectaccesstotheBoardofDirectors.TheCEOsupportstheBoardanditsmandateandisaccountableforensuringCanaccordGenuityoperateswithinthepolicyandstrategyframeworkestablishedbytheBoard.TheCEOprovidesadviceandcounseltotheBoardinallmattersimpactingCanaccordGenuityandprovideseffectiveoperationalleadershiptothemanagementandstaffoftheorganization.

director’s tenure and priorities

In2014,theBoardadoptedapolicyrelatingtoadirector’stenureandpriorities.Underthispolicy,uponadirectorreachingtheageof75,andoneachanniversarythereafterforsolongassuchindividualcontinuestoserveasadirector,suchdirectormusttenderhisorherwrittenresignationfromtheBoardtotheCorporateGovernanceandCompensationCommittee.TheCommitteewill,within30days,considertheresignationofferandwillrecommendtotheBoardwhetherornottoacceptit.TheBoardwillthereafteractontheCommittee’srecommendationwithin30days.Ifaresignationisaccepted,itwillbeeffectiveeither:(i)beforethecommencementofthenextannualgeneralmeetingoftheCompany’sshareholdersatwhichdirectorsaretobeelected;or(ii)uponacceptanceofsuchofferofresignationbytheBoard,asdeterminedbytheBoard.Inaddition,thepolicyprovidesthatuponinitiallybecomingadirectoroftheCompanyandateachBoardmeetingoccurringimmediatelybeforetheannualgeneralmeetingoftheCompany’sshareholdersatwhichdirectorsaretobeelected,eachdirectorwillrepresenttotheBoardthatmembershipontheBoardandthecarryingoutofsuchdirector’sBoardandcommitteedutiesisoneofsuchdirector’stopprioritiesandthatsuchdirector’spersonalorprofessionalcircumstancesdonotadverselyaffectsuchdirector’sabilitytoeffectivelyserveasadirectoroftheCompany.EachdirectorisexpectedtodemonstratethiscommitmentinpartbyahighlevelofattendanceatBoardandCommitteemeetings.

Orientation and continuing education

NewdirectororientationisexplicitlyaddressedinthewrittenBoardOperatingGuidelinesadoptedbytheBoardandisaresponsibilityoftheCorporateGovernanceandCompensationCommittee.NewdirectorsareprovidedwithsubstantialreferencematerialpertainingtotheCompany,itsstrategicfocus,financialandoperatinghistory,corporategovernancepracticesandcorporatevision.Alldirectorsreceiveamanualcontaining,amongotherthings,constatingdocuments,anorganizationchartoftheCompanyanditssubsidiaries,corporatefactsheets,listsofcommitteesandcommitteechartersandvariouscorporatepolicies.

OngoingdirectoreducationisalsoexplicitlyaddressedintheBoardOperatingGuidelinesandisalsoaresponsibilityoftheCorporateGovernanceandCompensationCommittee.RegularbackgroundbriefingsareaddedtotheagendasofmeetingsoftheBoardontopicsrelatingtosignificantaspectsoftheCompany’sbusinessandoperations,includingkeybusinessunitsandthelegal,regulatoryandindustryrequirementsandenvironmentinwhichtheCompanyoperates.


Onaregularbasis,theBoardvisitstheCompany’smajoroperatingcentresandreceivesbriefingsinareasofcriticalandstrategicimportance.TheBoardalsomeetseachyearinadedicatedboardeducationsession.

Annual performance evaluation of the Board

TheBoardhasapolicyforanannualperformanceevaluationoftheBoard,itscommitteesanditsindividualdirectors.Adetailedsurveycoveringboardorganization,theChairman,theleadDirector,managementandhumanresources,strategyandplans,financialandcorporateissues,shareholdercommunicationsandthefunctionofBoardcommitteesisdistributedannuallytoalldirectors.Thesurveyisstrictlyconfidentialtoencouragefullandfrankcomments.TheleadDirectorthenmeetswitheachdirectorindividuallytoreviewthesurveyandrecommendationsandtoreviewtheirroleontheBoardofDirectors.TheCorporateGovernanceandCompensationCommitteealsoreviewsthereportandrecommendations.

WiththerecommendationsoftheCorporateGovernanceandCompensationCommittee,thefullBoardofDirectorsthenassessestheeffectivenessoftheBoardasawhole,theBoardcommitteesandthecontributionsofindividualdirectors.ThefullBoardthentakeswhateverstepsarenecessary,basedonthefeedbackandsurveys,tomakeanychangesnecessarytoenhancetheperformance of the Board.

Ethical business conduct

TheBoardhasadoptedawrittenCodeofBusinessConductandEthics(the“Code”)fordirectors,officersandemployees.ItcanbefoundamongthedocumentsfiledbytheCompanyonSEDARatwww.sedar.comandontheCompany’swebsiteatwww.canaccordgenuitygroup.com(under“InvestorRelations–CorporateGovernance”).DirectorswillberequiredannuallytoacknowledgeinwritingtheiragreementtocomplywiththeCodeandasystemiscurrentlybeingimplementedtorequireallemployeestodolikewise.TotheknowledgeoftheBoard,therehavebeennodeparturesfromtheCodeduringfiscal2014thatwouldhaverequiredthefilingofamaterialchangereport.

Anydirector,officeroremployeewhobecomesawareofanyexistingorpotentialviolationoftheCodeisencouragedtonotifytheleadDirector(Terrylyons).Mr.lyonsreportstotheBoardoncompliancewiththeCode.Asanalternative,theCompanyhasengagedathirdpartyprovidertomanagethereportingofanyethicalconcernsorimproperconduct.Atelephonicandonlinehotlinewillbemadeavailableandthecontactinformationprovidedtoalldirectors,officersandemployees.Thehotlineisoperatedbyathird-partyproviderwhichspecializesinthistypeofservice.ToreportissuesviatheInternet,simplylogontothewebsiteandfillinimportantinformationfieldsregardingthenatureofthequestionorreport.Ifyouchoosetocallinstead,dialthehotlinenumbertospeakwithaliveoperatorwhowillaskthoseimportantquestions.Callsaretollfreeandbothmethodsareavailable24hoursaday,sevendaysaweek.Regardlessofwhichmethodischosen,thesystemwillprepareareportandforwardittotheappropriateethicscontactwithintheCanaccordGenuityGroupforreviewand,ifnecessary,investigation.Thesystemwillassignareportnumber,aPINandacontactdate.Inthiswaythereportercanremainanonymous.

InaccordancewiththeCodeandtheBusiness Corporations Act (BritishColumbia),anydirectorwhoisawareofamaterialtransactionorrelationshipthatcouldreasonablybeexpectedtogiverisetoaconflictofinterestmustdiscussthematterpromptlywiththeleadDirectorand,inthecaseofmattersconsideredbytheBoard,mustdisclosetheinteresttotheBoardandabstainfromvoting.

COMMITTEES OF THE BOARd OF dIRECTORS

TheBoardhasdelegatedcertainofitsresponsibilitiestotwostandingcommitteeswhichmeetregularlyandhavespecificrolesandresponsibilitiesasdefinedbytheBoard.Thesecommitteesaremadeupsolelyofnon-managementdirectors,amajorityofwhomareindependentofmanagementasdeterminedunderapplicablesecuritieslegislation.BoththeAuditCommitteeandtheCorporateGovernanceandCompensationCommitteearecomposedentirelyofindependentdirectors.

TheBoardhasalsodelegatedspecificresponsibilitiestotwocommitteeswhichmeetonlyasrequired.TheStockIssuanceCommitteeconsistsofthemembersoftheCorporateGovernanceandCompensationCommitteeandtheChiefExecutiveOfficer;itisdelegatedwiththeauthorityofthefullBoardtoissuesharesoftheCompany.TheBorrowingPowersCommitteeconsistsoftheChiefExecutiveOfficer;itisdelegatedwiththeauthorityofthefullBoardtoborrowmoneyandprovideguaranteesinrelationtotransactionsinthenormalcourseofthebusinessofoneormoreofthesubsidiariesoftheCompanywherethetransactionhasbeenapprovedbyoneoftheBoardofDirectors,executivecommittee,or“names”committeeofsuchsubsidiaryorsubsidiaries.

Audit Committee

TheAuditCommitteeassiststheBoardofDirectorsinfulfillingitsoversightresponsibilitiesbymonitoringtheCompany’sfinancialreportingpracticesandfinancialdisclosures.SpecificresponsibilitiesanddutiesoftheAuditCommitteeincludereviewingtheCompany’sannualandinterimconsolidatedfinancialstatements,annualandinterimmanagement’sdiscussionandanalysis


andpressreleasesrelatingtothembeforedisseminationtothepublic;assessingtheCompany’saccountingpoliciesincludingdiscussingtheappropriatenessofsuchpolicieswithmanagementandtheCompany’sexternalauditors;reviewingthesystemsofinternalcontrolstoensureintegrityinthefinancialreportingoftheCompany;assistingmanagementtoidentifytheCompany’sprincipalbusinessrisks;approvingriskmanagementpoliciesthatestablishtheappropriateapprovallevelsfordecisionsandotherchecksandbalancestomanagerisk;satisfyingitselfthatpoliciesareinplacetomanagetheriskstowhichtheCompanyisexposed,includingmarket,operational,liquidity,credit,regulatoryandlegal,andreputationalrisk;reviewingtheexternalauditors’plansforevaluatingandtestingtheCompany’sinternalfinancialcontrols;andoverseeingtheCompany’sexternalauditorsincludingapprovingtheexternalauditors’termsofengagement.MembersoftheAuditCommitteeareappointedannuallybytheBoardofDirectors.Thecommitteehasfullaccesstostaffandresources.Atallregularcommitteemeetingsduringtheyear,aportionofthemeetingisheldwithoutmanagementpresenttoallowamoreopendiscussion.

ThemembersoftheAuditCommitteeareTerrencelyons(Chair),WilliamEeuwesandMassimoCarello.Eachofthemisfinanciallyliterate;thatis,theyareabletoreadandunderstandasetoffinancialstatementsthatpresentabreadthandlevelofcomplexityofaccountingissuesthataregenerallycomparabletothebreadthandcomplexityoftheissuesthatcanreasonablybeexpectedtoberaisedbytheCompany’sfinancialstatements.AllofthemembersoftheAuditCommitteeareindependentofmanagementasdeterminedunderapplicablesecuritieslegislation.TheAuditCommitteemetfivetimesintheperiodfromApril1,2013toJune 9, 2014.

TheAuditCommitteehasadoptedacharterwhichspecificallydefinestherolesandresponsibilitiesoftheAuditCommittee.TheAuditCommitteehasdirectcommunicationchannelswiththeexternalauditorsandtheChiefFinancialOfficerandseniorfinancestaffanddiscussesandreviewsissueswitheachofthemonaregularbasis.

TheAuditCommitteeisresponsibletoensuremanagementhasdesignedandimplementedaneffectivesystemofinternalcontrol.

TheexternalauditorsarerecommendedbytheAuditCommitteeandappointedannuallybytheCompany’sshareholders.TheyreportdirectlytotheAuditCommittee.Afterconsultationwithmanagement,theAuditCommitteeisresponsibleforsettingtheexternalauditors’compensation.TheexternalauditorsattendeachmeetingoftheAuditCommittee,andaportionofeachmeetingisheldwithoutthepresenceofmanagement.TheAuditCommitteereviewsandapprovesannuallytheexternalauditors’auditplanandmustapproveanynon-auditworkbytheexternalauditors.Thepoliciesforengagementofnon-auditservicesalsopermitthechairoftheAuditCommitteetoapproveminorexpendituresonnon-auditservicesbetweenmeetingsoftheAuditCommittee. The Chief Financial Officer and senior finance staff attend each meeting of the Audit Committee. The Audit Committee reviewsandapprovesannuallytheinternalauditplan.

Risk managementUncertaintyandriskareinherentinanyfinancialmarketsactivity.AsanactiveparticipantintheCanadianandinternationalcapitalmarkets,theCompanyisexposedtorisksthatcouldresultinfinanciallosses.TheCompanyhasidentifieditsprincipalrisksas:marketrisk,creditrisk,operationalriskandotherrisks.Accordingly,riskmanagementandcontrolofthebalancebetweenriskandreturnarecriticalelementsinmaintainingCanaccordGenuity’sfinancialstabilityandprofitability.Therefore,aneffectiveriskmanagementframeworkisintegraltothesuccessofCanaccordGenuity.

CanaccordGenuity’sdisciplinedriskmanagementprocessencompassesanumberoffunctionalareasandrequiresfrequentcommunication,judgmentandknowledgeofthebusiness,productsandmarkets.TheCompany’sseniormanagementisactivelyinvolvedintheriskmanagementprocessandhasdevelopedpoliciesandreportsthatrequirespecificadministrativeproceduresandactionstoassessandcontrolrisks.Thesepoliciesandproceduresaresubjecttoongoingreviewandmodificationasactivities,marketsandcircumstanceschange.

AspartofCanaccordGenuity’sriskphilosophy,thefirstlineofresponsibilityformanagingrisklieswithbranchmanagers,departmentheadsandtradingdeskmanagers(withinprescribedlimits).ThemonitoringandcontrolofCanaccordGenuity’sriskexposureisconductedthroughavarietyofseparate,butcomplementary,financial,credit,operational,complianceandlegalreportingsystems.

TheBoardofDirectors(theBoard)hasoversightofthecompany-wideriskmanagementframework.TheseresponsibilitiesaredelegatedtotheAuditandRiskManagementCommittees.TheAuditCommittee’smandatewasupdatedinfiscal2014tobetterreflectthecommittee’soversightoftheCompany’sriskmanagementfunction.

TheAuditCommitteeassiststheBoardinfulfillingitsoversightresponsibilitybymonitoringtheeffectivenessofinternalcontrolsandthecontrolenvironment.Italsoreceivesandreviewsvariousquarterlyandannualupdatesandreportsonkeyriskmetricsand theoverallriskmanagementprogram.


TheRiskManagementCommitteeassiststheBoardinfulfillingitsresponsibilitiesformonitoringriskexposuresagainstthedefinedriskappetiteandforgeneraloversightoftheriskmanagementprocess.TheRiskManagementCommitteeisledbytheCFO,andcommitteemembersincludetheCEOandseniormanagementrepresentationfromthekeyrevenue-producingbusinessesandfunctionalareasofCanaccordGenuity.TheCommitteeidentifies,measuresandmonitorstheprincipalrisksfacingthebusinessthroughreviewandapprovalofCanaccordGenuity’sriskappetite,policies,procedures,andlimits/thresholds.

ThesegregationofdutiesandmanagementoversightareimportantaspectsofCanaccordGenuity’sriskmanagementprocess.CanaccordGenuityhasanumberoffunctionsthatareindependentoftherevenue-producingbusinessesthatperformriskmanagementactivities,includingthemonitoring,evaluatingandanalyzingofrisk.ThesefunctionsincludeEnterpriseRiskManagement,Compliance,Operations,InternalControlsandFinancialAnalysis,Treasury,Financeandlegal.

Additional informationAdditionalinformationabouttheAuditCommitteeandinternalcontrolandriskmanagementsystems(includingdetailsofhowtheprincipalrisksoftheCompanyaremanaged,thecharteroftheAuditCommitteeanddetailsofexternalauditorservicefees)iscontainedintheCompany’sannualinformationform(AIF)whichcanbefoundonSEDARatwww.sedar.comandontheCompany’swebsiteatwww.canaccordgenuitygroup.com(under“InvestorRelations–FinancialReports”).Inparticular,seethesectionsoftheAIFheaded“BoardCommittees–AuditCommittee”and“ExternalAuditorServicesFees”andschedule“A”totheAIF.ThecharteroftheAuditCommitteecanalsobefoundontheCompany’swebsiteunder“InvestorRelations–CorporateGovernance–Boardof Directors”.

Corporate Governance and Compensation Committee

TheCorporateGovernanceandCompensationCommittee’smandateincludesthedevelopmentandrecommendationtotheBoardofDirectorsofappropriatecorporategovernanceguidelines;theidentificationoffutureBoardandcommitteemembersandtheannualreviewoftheBoard’sperformance;evaluatingtheChiefExecutiveOfficer’sperformanceanddetermininghiscompensation;reviewingandmakingrecommendationstotheBoardofDirectorswithrespecttothecompensationofallexecutiveofficers;fixinganddetermining(ordelegatingtheauthoritytofixanddetermine)awardstoemployeesofstockorstockoptionsundertheCompany’sincentiveplans;andreviewingkeyhumanresourcespoliciesandprograms.Thecommitteealsofunctionsasthenominating committee for the Board.

TheprocessbywhichtheBoarddeterminescompensationfordirectorsisdescribedinthisCircularundertheheading“Compensationofdirectors”onpage26andtheprocessbywhichtheBoarddeterminescompensationforofficersandemployeesisdescribedinthisCircularundertheheading“Compensationdiscussionandanalysis”onpage18.

Composition of the Corporate Governance and Compensation CommitteeTheCorporateGovernanceandCompensationCommitteemustbecomposedofatleastthreememberswhoareindependentofmanagement,eachofwhomisappointedannuallybytheBoardofDirectors.Thecommitteehasfullaccesstostaffandresources.Atallregularcommitteemeetingsduringtheyear,aportionofthemeetingisheldwithoutmanagementpresenttoallowamoreopendiscussion.

ThemembersoftheCorporateGovernanceandCompensationCommitteeareMichaelHarris(Chair),WilliamEeuwesandTerrencelyons.Eachofthemhassignificantanddirectexperienceinexecutivecompensationmatters,leadership,talentmanagement,governanceandriskmanagementthroughtheirtenuresasseniorleadersdirectinglargeandcomplexorganizations.All of the members of the Committee are independent of management as determined under applicable securities legislation. The CorporateGovernanceandCompensationCommitteemetsixtimesintheperiodfromApril1,2013toJune9,2014.

Nomination of directorsTheCorporateGovernanceandCompensationCommitteereviewsannuallythegeneralandspecificcriteriaapplicabletocandidatestobeconsideredfornominationtotheBoard.TheobjectiveofthisreviewistomaintainthecompositionoftheBoardinawaythatprovidesthebestmixofskillsandexperiencetoguidethelongtermstrategyandongoingbusinessoperationsoftheCompany.Thisreviewtakesintoaccountthedesirabilityofmaintainingareasonablediversityofbackgroundskillsandexperienceandpersonalcharacteristicsamongthedirectors,alongwiththekeycommoncharacteristicsrequiredforeffectiveBoardparticipation.TheCommitteehasexplicitlyconsideredthelevelofrepresentationofwomenontheBoardinidentifyingatleast one suitable candidate for nomination as a director.

AlthoughitisthefullBoardthatisresponsibleforidentifyingsuitablecandidatestoberecommendedforelectiontotheBoardbytheshareholders,theCorporateGovernanceandCompensationCommitteehastheresponsibilitytogatherthenamesofpotentialnominees,screentheirqualificationsagainstthecurrentskillandexperienceneedsoftheBoardandmakerecommendationstothefullBoard.AlldirectorsareencouragedtosuggestpotentialcandidatesandtheChairmanandtheChiefExecutiveOfficerprovideadditionaldirectinputtotheprocess.


Compensation discussion and Analysis

PHILOSOPHY ANd OBJECTIVES

Compensationprogramsaredesignedtoattract,retainandmotivatetop-qualityprofessionalstosupportthesuccessoftheCompanyandenhanceshareholdervalue.

CanaccordGenuity’scompensationphilosophyprovidesthefoundationforalloftheCompany’semployeecompensationprograms,includingthoseforitsexecutiveofficers.ThephilosophyincludesthefollowingkeyobjectivesthatarethebasisfordesigningprogramstomotivatebehaviourthatdrivestheCompany’sperformance:

• establishperformance-basedcompensationprogramstiedtoannualandlongtermCompany,businessunit,businessgeographyandindividualgoals,whicharestructuredtoaligntheinterestsofemployeeswiththoseofshareholders;

• ensurethatcompensationopportunitiesarecomparabletothoseatmajorcompetitors,sothattheCompanycanattract,retainandmotivatetalentedemployeeswhoareessentialtotheCompany’slongtermsuccess;

• encouragesoundriskmanagementandcompliancewithinternalpoliciesandproceduresandtheapplicablelawandrulesandpoliciesofsecuritiesregulatorsandself-regulatoryorganizations;

• ensurethatcompensationisnotsolelybasedonrevenueattributabletoanindividual;thisisforseveralreasons:first,suchanapproachdoesnottakeaccountofriskmanagementandcompliancecosts,andsecond,thereistheinherentdifficultyindeterminingwhoisdirectlyresponsibleforgeneratingspecificrevenue;furthermore,sucharewardmechanismtendstodiscouragetheteamworkwhichisakeybehaviourthattheCompanyseekstofoster;and

• deliverasignificantportionoftotalcompensationinequitybasedawards,therebyfurtheraligningthefinancialinterestsofemployeeswiththoseofshareholdersandencouragingprudentlongtermstrategicdecisionsandriskmanagementandencouraginglongtermserviceandloyalty.

Individualperformanceismeasuredinanumberofwaysagainstagreedupongoalsandobjectivesandcompetenciesspecifictotheirrole,withannualappraisalsprovidingasignificantelementofperformanceassessment.Thevariableelementofremunerationincludestheuseofshareschemes,withawardsdeferredtoensurethatlongertermperformanceisconsidered,withsuitableclaw-backinplaceinappropriatecircumstances.

Thenatureofthesecuritiesindustryrequiresaworkforceofhighlyskilledprofessionals,whoareingreatdemandduetotherevenuetheycangenerateandthejudgmenttheyexerciseinmanagingrisk.Historically,competitiontoattractandretaintheseprofessionalsresultsinhighlevelsofcompensationrelativetootherindustries.

TheoverallobjectiveindeterminingtotalcompensationlevelsacrosstheCompanyistobalancecompetitivepressuresinthemarketforprofessionaltalentwithcostconsiderations.Sincethesecuritiesindustryisfundamentallyahumancapitalintensivebusiness,compensationandbenefitsareasignificantandcriticalexpense.Theseexpenses(oftenreferredtoasthecompensationratio)arealsoheavilyimpactedbyafirm’smixofbusiness.Higherratiosarefoundinretail/bankinggroups,whilelowerratiosarefoundinbusinesseswithalargetradingcomponent.Infiscal2014,theCompany’stotalcompensationexpensewas59.0%ofgrossrevenues.

Amongcompaniesinthesecuritiesindustry,themajorityofexecutivecompensationisprovidedintheformofavariable,performance-basedannualincentivethatisdeliveredinbothcashandequityawards.Thisapproachcreatesstrongalignmentofpaywithperformance.TheequityawardportionoftheCompany’sannualincentivecompensation,whichincludesvestingprovisions,createsemployeeownership,encouragesretentionandfurthertiesthecompensationtotheCompany’sfutureperformance.

WhiletheCompanydoesnotgenerallytieanyelementsofitscompensationtocompensationlevelsatotherfirms,whenmakingdecisionsconcerningcompensationandbenefits,theCompany’sCorporateGovernanceandCompensationCommitteehasreviewedanalysesofcompensationpracticesandfinancialperformanceamongapeergroupofotherfinancialservicesfirmsintheCompany’sprincipalgeographies.ThesefirmsareGMPCapitalInc.;RaymondJamesFinancial;CowenGroup;Evercore;ladenburgThalmann;Stifel;Oppenheimer;PiperJaffray;Greenhill;SWSGroup;FBR&Co.;andCohen&Steers.InadditiontothepubliclyheldcompaniesincludedinCanaccordGenuity’speergroup,thecapitalmarketsdivisionsoftheCanadiancharteredbanks(whereavailable)andotherfinancialservicesfirms,privatefirmsandpartnershipsthatoperatewithinitsindustry,includingassetmanagementandprivateequityfirms,alsoinfluencetheCompany’scompensationlevels.

IntheUnitedKingdomCanaccordGenuityWealthManagementdivision,thedivision’sboardofdirectorsreviewedanalysesof compensation practices and financial performance among a peer group of other portfolio management and stockbroking competitorsintheUnitedKingdom.ThesefirmsareBrooksMacdonaldAssetManagement,CharlesStanley&Co.,CheviotAssetManagement,Quilter,Rathbones,Smith&WilliamsonInvestmentManagement,HeartwoodWealthManagement,JOHambroInvestmentManagement,RufferllP,ThesisAssetManagement,BrewinDolphin,Investec(WilliamsdeBroe)andJMFinn&Co.


TheCorporateGovernanceandCompensationCommitteehasconsideredtheimplicationsoftherisksassociatedwiththeCompany’scompensationpoliciesandpracticesandbelievesthatsuchpoliciesandpracticesareunlikelytoexposeCanaccordGenuitytoinappropriateorexcessiverisks.

united Kingdom Remuneration Code

TheoperatingsubsidiariesoftheCompanywhichareregulatedbytheFinancialConductAuthority(FCA)intheUnitedKingdom(includingCanaccordGenuitylimitedandCanaccordGenuityWealthlimited)mustcomplywiththeFCA’sRemunerationCode.CanaccordGenuitylimitedconsidersthatitfallswithinTier3oftheFCA’stieredproportionalityframework.AsrequiredbytheCode,CanaccordGenuitylimitedhasidentifiedtheemployeessubjecttotheCode(knownas“Codestaff”)andhasadoptedawrittenremunerationpolicywhichisadministeredbyitsRemunerationCommitteeandwhichprovides,inpart,thatallstaffwillbesubjecttothepaymentofbetween10%and50%ofprofitshareandbonuscompensationintheformofarestrictedshareawardundertheCompany’slongTermIncentivePlan.

Executive compensation related fees

ForvariousprojectssinceJuly2006,theCompanyhasretainedJohnsonAssociatesInc.,aboutiquecompensationconsultingfirmspecializinginthefinancialservicesindustry.Ineachoffiscal2014,fiscal2013,fiscal2012andfiscal2011,JohnsonAssociatesInc.wasretainedtobenchmarkcompensationforandoftheCompany’sdirectorsandexecutiveofficers.Infiscal2014,theaggregatefeesbilledbyJohnsonAssociatesInc.fortheseserviceswasUS$8,929.Infiscal2013,theaggregatefeesbilledbyJohnsonAssociatesInc.fortheseserviceswasUS$5,122.Infiscal2012,theaggregatefeesbilledbyJohnsonAssociatesInc.fortheseserviceswasUS$14,145.Infiscal2011,theaggregatefeesbilledbyJohnsonAssociatesInc.forthesameserviceswas$42,586.

Infiscal2013,theCompanyretainedComPeerlimited,aspecialistinbusinessbenchmarking,competitoranalysisandresearchservicesintheUnitedKingdom,forareportonareviewofremunerationstructuresofportfoliomanagersandstockbrokersintheUnitedKingdomandpaidit£5,000.TheCompanyalsoretainedHassellBlampiedAssociates,ahumanresourcesconsultancyfirmintheChannelIslands,forareportonseniorpaybenchmarkingintheChannelIslandsandpaidit£4,825.

PRINCIPAL COMPONENTS OF EXECuTIVE COMPENSATION

Historically,executivecompensationhastwoprincipalcomponents:

• basesalary,whichisbasedonthemarketvalueoftherole,internalpayequityandtheindividual’sdemonstratedabilitytoperform;and

• incentivecompensation,whichislinkedtotheresultsoftheexecutive’sbusinessunitandbusinessgeographyortheCompanyasawhole,dependingontheirroleintheorganization,thestrategicpositioningoftheCompanyandtheleadershipprovidedtotheCompanyandindividualbusinessunitsandbusinessgeographies.

EquITY COMPENSATION

CanaccordGenuityhasarangeofcompensationrelatedarrangementswhichinvolveanequityparticipationcomponentavailabletoallemployeeswithanemphasisontopproducersandseniormanagement:

• fortheCanaccordGenuitycapitalmarketsdivisionglobally,seniorofficersinCanaccordGenuityWealthManagement(CGWM,thewealthmanagementdivision)globally,topproducersintheCGWMdivisionoutsideCanadaandsenioroperationsandadministrationmanagementglobally,todeferaportionoftheircashcompensationand,onanoccasionalbasis,tokeymanagementtoprovideretentionincentives,alongtermincentiveplanthatprovidesfortheawardofrestrictedshareunitswhichtypicallyvestoverthreeyears(the“Long Term Incentive Plan”or“LTIP”);

• forkeyemployeesglobally,onanoccasionalbasis,toprovideretentionincentives,forgivableequityincentiveloansforthepurchaseofCommonsharesoftheCompanyintheopenmarketwhichareforgivenoverathree-tofive-yearperiodsolongastheemployeecontinuestobeemployedbyCanaccordGenuityorisa“goodleaver”;

• fortopproducersintheCGWMdivisioninCanada,loansforthepurchaseofCommonsharesoftheCompanyintheopenmarketwhichareforgivenoverathree-yearperiodsolongastheproducercontinuestobeemployedbyCanaccordGenuity(knownvariouslyasthe“CWGM Appreciation Program”,the“CGWM Bonus Plan”andthe“CGWM Partnership Program”);

• fortheindependentdirectorsoftheCompany,adeferredshareunit(DSU)plantodeferaportionoftheircashcompensationtobepaidintheformofdeferredshareunitswhicharesettledincashatthetimeofceasingtobeadirector(the“director deferred Share unit Plan”or“dSu Plan”);and

• forallfull-timeemployeesinCanadaandtheUnitedStates,anemployercontributiontomatch(onaone-for-onebasisupto$3,000peryearforeachemployee)theemployee’scontributionforthepurchaseofCommonsharesoftheCompanyintheopenmarketpursuanttoanemployeesharepurchaseplan(the“ESPP”).


AsaresultoftheacquisitionofCollinsStewartHawkpointplc(“CSHP”)onMarch21,2012,twoshare-basedpaymentplans(the“Collins Stewart Hawkpoint Replacement Annual Bonus Equity deferral Plan”andthe“Collins Stewart Hawkpoint Replacement Long Term Incentive Plan”)wereintroducedtoreplacetheshare-basedpaymentplansthatexistedatCSHPatthetimeoftheacquisition.TheobligationsunderoneotherCSHPshare-basedpaymentplan(the“Corazon Plan”)wereassumedatthesametime.

Infiscal2013,theCompanyputinplacea£15millionretentionplanforkeyCSHPstaff.TheCompanyimplementedthisretentionplanbytheawardofupto1,581,701restrictedshareunitsunderthe“CSH Inducement Plan”,whichwouldvestonthethird,fourthandfifthanniversariesofthecompletionoftheacquisition,andtheawardof790,872restrictedshareunitsundertheexistinglTIP,whichwouldvestonthefirstandsecondanniversariesofthecompletionoftheacquisition.

CANACCORd GENuITY CAPITAL MARKETS COMPENSATION

CanaccordGenuitycapitalmarkets,thedivisionoftheCompanywhichconductsinvestmentbanking,researchandtradingactivitiesonbehalfofcorporate,institutionalandgovernmentclientsandprincipaltrading,hasoperationsinCanada,theUnitedKingdom,theUnitedStatesandinternationally.Compensationfortheseniorofficersofthisbusinessunitisbenchmarkedagainstaveragecompensationpaidtoseniorofficersofcomparablefinancialinstitutionswhoholdsimilarpositionsandisdesignedtobothrecruitandretainthemosttalentedindividualsinthemarketplace.EligibleemployeesofCanaccordGenuityparticipateinincentivecompensationprogramsthatarelinkedtoboththeperformanceofthecapitalmarketsgroupandtheoverallresultsoftheCompanyandwhichreflectcompensationpracticeswithintheindustryintheirgeographiclocation.Individualbonusesarebasedontheresultsofthebusinessunitandthecontributionoftheindividualtothatprofitability.

AllemployeesintheCanaccordGenuitycapitalmarketsdivisionareeligibletoparticipateintheCompany’slongtermincentiveplan.See“longTermIncentivePlan(lTIP)”onpage30.

CANACCORd GENuITY WEALTH MANAGEMENT COMPENSATION

CanaccordGenuityWealthManagement(CGWM),theCompany’swealthmanagementdivision,hasoperationsinCanada,intheUnitedKingdomandtheChannelIslandsandinAustralia.CompensationfortheseniorofficersoftheCGWMdivisionisbenchmarkedagainstaveragecompensationpaidtoseniorofficersofcomparablefinancialinstitutionswhoholdsimilarpositionsandisdesignedtobothrecruitandretainthemosttalentedindividualsinthemarketplace.

IndividualbonusesofseniorofficersoftheCGWMdivisionarebasedontheresultsofthebusinessunitwhichtheseniorofficeroverseesandthecontributionoftheseniorofficertotheprofitabilityofthatbusinessunit.SeniorofficersoftheCGWMdivisiongloballyandtopproducersinthedivisionoutsideCanadaareeligibletoparticipateintheCompany’slongtermincentiveplan.See“longTermIncentivePlan(lTIP)”onpage30.

TopproducersintheCGWMdivisioninCanadamaybegrantedloansforthepurchaseofCommonsharesoftheCompanyintheopenmarket,whichareforgivenoverathree-yearperiodsolongastheproducercontinuestobeemployedbyCanaccordGenuity.

OTHER BENEFITS

Broad-based benefit plans.Allemployees,includingtheexecutiveofficers,areeligibletoparticipateintheCompany’sbroad-basedbenefitsprogramconsistingofmedical,dental,lifeinsurance,disabilityandothersimilarbenefits.TheCompanyprovidesthesebenefitsinordertomeetthebasichealthandwelfareneedsofitsemployeesandtheirdependents.Employeecontributionsformedicalanddentalcoveragearehigherformorehighlypaidemployees.BenefitplansaredesignedtobemarketcompetitiveandconsistentacrosstheCompany,butvaryinternationallybasedonlocalpracticeandstatutoryrequirements.

Perquisites.TheCompanydoesnotgenerallyoffermaterialperquisitesorotherpersonalbenefitstoexecutiveofficersotherthanbenefitsthataregenerallyavailableonanon-discriminatorybasistoallemployees.

HEdGING OF ECONOMIC RISKS FOR PERSONAL EquITY OWNERSHIP

TheCompany’sdirectorsandemployees,includingNEOs,areprohibitedfrompurchasingfinancialinstrumentsthataredesignedtohedgeoroffsetadecreaseinmarketvalueofequitysecuritiesgrantedascompensationorheld,directlyorindirectly,bythedirectororemployee.


COMPENSATION OF NAMEd EXECuTIVE OFFICERS FOR FISCAL 2014

ThissectionprovidesadiscussionoftheCompany’sobjectiveswhencompensatingitsChiefExecutiveOfficer(CEO),PaulReynolds;itsChiefFinancialOfficer(CFO),BradKotush;DanDaviau,theChiefExecutiveOfficerofCanaccordGenuityInc.,theoperatingsubsidiaryoftheGroup’scapitalmarketsdivisionintheUnitedStates;AlexisdeRosnay,theChiefExecutiveOfficerofCanaccordGenuitylimited,theoperatingsubsidiaryoftheGroup’scapitalmarketsdivisionintheUnitedKingdom;andJohnGillespie,Jr.,theHeadoftheInternationalEquitiesGroupofCanaccordGenuityInc.inNewYork(collectively,the“Named Executive Officers” or“NEOs”)withrespecttofiscal2014andthepoliciestheCompanyhasimplementedtoachievethoseobjectives.Italsooutlineswhateachcompensationprogramisdesignedtoreward,eachelementofcompensation,whytheCompanyhaschosentopayeachelement,howtheCompanydeterminedtheamountitwouldpay,andhoweachcompensationelementfitsintotheCompany’soverallcompensationobjectives.

ThefollowingaddresseswhateachobjectiveoftheCompany’scompensationprogramisdesignedtoreward:

Performance-based

TheCompanyemphasizesvariablecompensationasthecoreofitscompensationstrategytoprovideapowerfulincentivetoitsNEOstofocusonfinancialperformanceandalsotohelpstabilizenetearningsasapercentageofrevenues.Alargepartofthevariablecompensationisbasedonafixedpercentageofnetincomegeneratedbythebusiness.AconsequenceoftheCompany’svariablecompensationpolicyisthatindividualcompensationformanyexecutivesoftheCompanyishighlyvariable.Inyearswithhighrevenues,aggregatecompensationcostsincreasewiththeCompany’sperformance.Conversely,whenrevenuesdecline,asubstantialportionoftheCompany’saggregatecompensationcostsdecreaseaswell.

Attract, motivate and retain talented employees

TheCompanyisengagedinahighlycompetitivebusiness,anditssuccessdependsontheleadershipofseniorexecutivesandthetalentofitskeyemployees.Inordertoattractandretainhighlycapableindividuals,theCompanyneedstoensurethatitscompensationprogramsprovidecompetitivelevelsofcompensation.Therefore,theCompanyreviewsinformationconcerningcompensationpaidtoexecutiveofficersofcomparablebusinessesincludinghowexecutivecompensationcorrelatestofinancialperformanceandhowtheCompany’sfinancialperformancecomparestothatofthepeergroup.

Encourage long term service and loyalty

TheCompanyencourageslongtermserviceandloyaltybyfosteringaculturewhereemployeesownsharesoftheCompany.ThisownershipencouragesitsemployeestoactinthebestlongterminterestoftheCompany.TheCompanyhasminimumshareownershipguidelinesforallpeoplewhoparticipateintheCompany’slongTermIncentivePlan(lTIP).

Elements of compensation

Forfiscal2014,thecompensationoftheCompany’sNEOsincludedthefollowingelements:

• basesalary;thepurposeistoattract,motivateandretain;• executiveprofitsharepool;thepurposesaretoattract,motivateandretainandtorewardindividualmeritandcontributionandcommitmenttocorporatestrategy,valuesandperformanceattheoverallcorporatelevel;

• CanaccordGenuitycapitalmarketscompensationpool;thepurposesaretoattract,retainandmotivateandtorewardindividualmeritandcontributionandcommitmenttocorporatestrategy,valuesandperformanceinrelationtotheCanaccordGenuitycapitalmarketsbusinessunitsinvariousgeographies;

• discretionaryannualbonus;thepurposesaretoattract,retainandmotivateandtorewardindividualmeritandcontributionandcommitmenttocorporatestrategy,valuesandperformanceattheoverallcorporatelevel;

• grantofrestrictedshareunitsandadvanceofforgivableequityincentiveloans;thepurposesaretoprovideadditionalretentionincentivestokeycapitalmarketsemployeesinordertobetteraligntheirinterestswiththelongterminterestsoftheCompany’sshareholders,toencouragesoundriskmanagementandcompliancewithapplicablelawsandtoencouragelongtermserviceandloyalty;

• forgivenessofequityincentiveloans;thepurposesaretoaligntheinterestsoftheNEOwiththelongterminterestsoftheCompany’sshareholders,toencouragesoundriskmanagementandcompliancewithapplicablelawsandtoencouragelongtermserviceandloyalty;

• otherbenefitsandperquisitesincludinghealthandwelfarebenefitsandtheESPP;thepurposesaretoaligntheinterestsoftheNEOwiththelongterminterestsoftheCompany’sshareholders,toencouragesoundriskmanagementandcompliancewithapplicablelawsandtoencouragelongtermserviceandloyalty.


Totheextentthatanyoftheseelementsofcompensationispaidinrestrictedshareunits(RSUs)underthelTIP,thepurposeisalsotoalignexecutiveandshareholderinterestsandtoencouragelongtermserviceandloyalty.

ThefollowingfurtherdescribeseachelementofcompensationincludinghowtheCompanydeterminestheamountandhoweachelementfitsintheCompany’soverallcompensationobjectives:

Base salary

CanaccordGenuityCorp.paystheCEOandtheCFO,CanaccordGenuityInc.paysMr.DaviauandMr.GillespieandCanaccordGenuitylimitedpaysMr.deRosnayabasesalaryasameanstoprovideanon-performance-basedelementofcompensationthatiscertainandpredictableandisgenerallycompetitivewithmarketpractices.

ThebasesalaryoftheCEOisreviewedannuallybytheCorporateGovernanceandCompensationCommittee.TheCEOisrequiredtoownatleastthreetimeshisbasesalaryinCommonsharesoftheCompany.

ThebasesalariesoftheCFOandMessrs.Daviau,deRosnayandGillespiearereviewedannuallybytheCEObasedonareviewofeachoftheirrolesandresponsibilitiesandexternalmarketdataforsimilarpositionsinwhichtheCompanycompetesforexecutivetalent.TheCompanybelievesthatprovidingapredictablebasesalaryisessentialtoattractandretaintalentedexecutivesandprovideacompensationpackagethatisperceivedasfair.Thedeterminationoftheappropriatelevelissubjectiveandnot formulaic.

Executive profit share pool

TheCompanyhasestablishedavariableincentive-basedcompensationpolicywherebyacertainpercentageoftheoperatingnetincome(beforetaxesandcertainotherincentivecompensationpaymentsandexcludingsignificantitemsincludingrestructuringcostsandacquisitionrelatedexpenseitems)oftheconsolidatedCanaccordGenuityGroupispaidtotheseniormanagementgroup(includingtheCEOandCFO)aspartofthediscretionarybonusdiscussedbelowandacertainpercentageoftheoperatingnetincome(beforetaxesandcertainotherincentivecompensationpaymentsandexcludingsignificantitemsincludingrestructuringcostsandacquisition-relatedexpenseitems)ofeachoperatingsubsidiaryispaidtotheseniormanagementgroupinthatsubsidiaryaspartofthediscretionarybonusdiscussedbelow.Mr.DaviaureceivedsuchabonusintheUnitedStatesandMr.deRosnayreceivedsuchabonusintheUnitedKingdom.

Canaccord Genuity capital markets compensation pool

TheCompanyhasestablishedadiscretionaryformulaicvariableincentive-basedcompensationpolicywherebyacertainpercentageofrevenueoradjustedoperatingprofit,adjustedbycertaindiscretionaryexpenditures,oftheCanaccordGenuitycapitalmarketsdivisionineachoftheprincipalgeographies(Canada,theUnitedKingdom,theUnitedStates,China,HongKong,SingaporeandAustralia)andoperatingunitwithinthegeography(suchastheInternationalEquitiesGroup(IEG)intheUnitedStates)isallocatedtotheCanaccordGenuitycapitalmarketscompensationpoolinthatgeographyandoperatingunittogetherwithsuchotheradjustments tothecompensationpoolasapprovedbyseniorexecutivemanagement.AfterthedeductionofthesalariesoftheemployeesofCanaccordGenuitycapitalmarketsinthegeographyandunitandcertainotherexpenses,thebalanceispaidtotheemployeesofCanaccordGenuitycapitalmarketsinthegeographyasdeterminedbyseniorCanaccordGenuitycapitalmarketsexecutivesinthegeographysubjecttoapprovalbytheCEOandtheCFO.Thepaymentsareallocatedbasedentirelyonmeritandcontributionandcommitmenttocorporatestrategy,valuesandperformanceinrelationtoCanaccordGenuitycapitalmarketsinthegeography.Advancesarepaidmonthlyagainstanticipatedsemi-annualpayments.Infiscal2014,theCEOparticipatedintheCanaccordGenuitycapitalmarketscompensationpoolforCanada,Mr.DaviauparticipatedintheCanaccordGenuitycapitalmarketscompensationpoolfortheUnitedStates,Mr.deRosnayparticipatedintheCanaccordGenuitycapitalmarketscompensationpoolfortheUnitedKingdomandMr.GillespieparticipatedintheCanaccordGenuitycapitalmarketscompensationpoolfortheInternationalEquitiesGroupintheUnitedStates.

Collins Stewart Hawkpoint legacy arrangements

Mr.GillespiewasemployedbyCollinsStewartllC,awhollyownedsubsidiaryofCSHP,atthetimeoftheCompany’sacquisitionofCSHP.HehadanagreementwithCollinsStewartllC(CSllC)whichwasenteredintoatthetimeheandhisgroupwereoriginallyhiredbyCSllCin2009andwhichwasdesignedtoinduceMr.GillespietoacceptemploymentwithCSllC;asamended,itcontinuesinforce.Thisagreementprovidesforcertainpayments,calculatedwithreferencetofuturecumulativeproductionamountsandminimumthresholdlevels,whicharesubjecttocertainrepaymentprovisionsintheeventofaterminationofemploymentandwhichdeclinerateablyovertheperiodtoMarch31,2015.Infiscal2014,Mr.Gillespiereceivedpaymentsinconnectionwiththisagreement.


discretionary bonus

AdiscretionarybonusforeachoftheNEOsisdeterminedannuallyonthebasisofanassessmentoftheperformanceoftheexecutiveandtheattainmentofgoalsandobjectivessetfortheexecutiveofficerandareviewoftheroleandresponsibilitiesoftheexecutiveofficerandexternalmarketdataforthesamepositioninthemarketsinwhichtheCompanycompetesforexecutivetalent.

ThebonusfortheCEOisdeterminedbytheCorporateGovernanceandCompensationCommittee.ThebonusesfortheCFOandtheotherNEOsaredeterminedbytheCEOandreviewedbytheCommittee.

Stock-based compensation

UnlessexemptedinaccordancewiththelongTermIncentivePlan,itismandatoryforthoseearningmorethanC$500,000(inCanadaandinternationallyotherthanintheUnitedStatesortheUnitedKingdom)orUS$500,000(intheUnitedStates)thatatleast20%ofprofitshareandbonuscompensationthatwouldotherwisebepaidincash(includingtheexecutiveprofitshare,theCanaccordGenuitycapitalmarketsprofitshare,theCanaccordGenuitycapitalmarketscompensationpoolandthediscretionarybonus)willbepaidintheformofarestrictedshareawardunderthelTIP.IntheUnitedKingdom,inaccordancewiththerequirementsoftheFCARemunerationCode,itismandatoryforthoseearningmorethan£200,000ofprofitshareandbonuscompensationthatatleast50%ofprofitshareandbonuscompensationthatwouldotherwisebepaidincashwillbepaidintheformofarestrictedshareawardunderthelTIP.Theamountofeachrestrictedshareawardis105%oftheamountthatwouldotherwisehavebeenpaidincash.

Employment and change in control agreements

Mr.Daviau,inconnectionwiththeacquisitionofGenuityCapitalMarketsinApril2010,enteredintoanemploymentagreementwhich,amongotherterms,providesthatinthecaseofhisterminationbyhisemployerwithoutjustcauseorhisresignationincircumstanceswheretheconductofhisemployerwouldconstituteconstructivedismissalatlaw,hewouldbepaid,inadditiontohisproratasalaryandbonusuptothedateoftermination,severanceinanamountequaltothe“SeveranceCompensation”foreach12-monthperiod(pro-ratedforanyperiodoflessthan12months)upuntiltheexpiryof24months,providedthattheCompanymay,atitsoption,andinlieuofpayingtheamountdescribedin(i)or(ii),within90daysofthedateofterminationchoosetoreducetheperiodofthenon-competitionandnon-solicitationrestrictionstooneyearbypayinganamountequaltooneyear’sSeveranceCompensation.TheSeveranceCompensationistheaggregateof(i)theexecutive’sannualbasesalaryasatthedateofterminationand(ii)theaverageoftheannualperformancebonusespaidorpayabletotheexecutivebytheCompanyforthetwofiscalyearsoftheCompanycompletedimmediatelypriortothedateoftermination(butforgreatercertainty,excludinganylongtermincentiveplan,stockoption,orequityawards,entitlements,andanypaymentsinrespectofanyoftheforegoing)providedthattheamountforeach12monthsafterthefirst12monthswillnotbelessthan$2.0million.Mr.Daviauwouldalsohavethebenefitofcertainplansorpoliciesinwhichheparticipatesuntiltheearlierof12monthsfromthedateofhisterminationorbeginningnewemploymentelsewhere.Underthisagreement,ifatriggeringeventhadtakenplaceonMarch31,2014,andtheCompanyhadnotexerciseditsoptiontoreducetheperiodofthenon-competitionandnon-solicitationrestrictionstooneyear,thenthetotalSeveranceCompensationfor24monthspayabletoMr.Daviauwouldhavebeen$6,381,491.HisunvestedrestrictedshareunitswouldhavecontinuedtovestinaccordancewiththelongTermIncentivePlan.

CanaccordGenuitydoesnothaveanyotherseveranceoremploymentagreementswithanyofitsNEOswhichprovideforincrementalpayments,payablesorbenefitsthataretriggeredby,orresultfrom,anytermination(whethervoluntary,involuntaryorconstructive),resignation,retirement,achangeincontroloftheCompanyorachangeintheNEO’sresponsibilities.However,anyunvestedrestrictedshareunitsorunvestedstockoptionsmaybevested,theforgivenessofforgivableloansacceleratedandotherliabilitiesorindebtednesswaivedorforgivenatanytimeatthediscretionoftheBoardofDirectors,theCorporateGovernanceandCompensationCommitteeor,subjecttoanyguidelinesdeterminedbytheCommittee,theCEOortheCFO.ItisexpectedthattheexerciseofthisdiscretionwouldbeconsideredinsuchcircumstancesasachangeofcontroloftheCompanyorwheretheimmediatevestingoftheunvestedrestrictedshareunitsisnegotiatedaspartofseverancearrangements.


SuMMARY COMPENSATION TABLE

ThefollowingtablesetsoutthecompensationfortheNEOsforeachoftheCompany’sthreemostrecentlycompletedfinancialyears:

Non-equityincentiveplan compensation ($) (f )

Annual longterm Nameand Share-based Option-based incentive incentive Pension Allother Total principalposition Year Salary awards awards plans plans value compensation compensation ($) ($) ($) ($) ($) ($) (a) (b) (c) (d) (e) (f1) (f2) (g) (h) (i)

Paul Reynolds 2014 $ 750,000 $1,771,591 $ —$3,070,000 $ — $ — $ 8,652 $5,600,243

CEO 2013 $ 750,000 $ 517,559 $ —$1,874,000 $ — $ — $ 10,176 $3,151,735

2012 $ 450,000 $ 594,970 $ —$2,097,190 $ — $ — $ 8,651 $3,150,811

Bradley Kotush 2014 $ 600,000 $ 229,511 $ — $ 840,000 $ — $ — $ 10,661 $1,680,172

CFO 2013 $ 600,000 $ 165,003 $ — $ 525,000 $ — $ — $ 8,652 $1,298,655

2012 $ 600,000 $ 159,313 $ — $ 527,622 $ — $ — $ 12,410 $1,299,345

daniel daviau 2014 $ 460,997$1,239,106$ — $3,765,270 $ — $ — $ —$5,465,373

ChiefExecutiveOfficer 2013 $ 332,863 $ 476,200$ —$1,694,227 $ — $ — $ — $2,503,290

CanaccordGenuityInc. 2012$ — $1,121,840 $ — $2,203,833$ — $ — $ —$3,325,673

(US)

Alexis de Rosnay(1) 2014 $ 841,528$2,109,429 $ — $1,617,740$ — $ — $ — $4,568,697

ChiefExecutiveOfficer 2013 $ 405,591$2,354,024$ — $ 715,044 $ — $ — $ — $3,474,659

CanaccordGenuity

limited(UK)

John Gillespie(2) 2014 $ 272,500 $ 260,510 $ — $2,644,860 $ — $ — $ — $3,177,870

HeadofInternational 2013 $ 250,917 $ 376,375$ — $2,735,315$ — $ — $ 7,145 $3,369,752

EquitiesGroup

(1) AlexisdeRosnaybecameanemployeeoftheCanaccordGenuityGroupduringfiscal2013onSeptember5,2012.

(2) JohnGillespiebecameanemployeeoftheCanaccordGenuityGroupontheacquisitionofCollinsStewartHawkpointplconMarch21,2012.HewasthereforeanemployeeoftheCompanyoroneofitssubsidiariesforlessthantwoweeksinfiscal2012.Theamountofcompensationforthatperiodisnotmeaningfulinthecontextofthistable.

(d) Theamountsinthiscolumnrepresentthegrantdatefairvalueoftherestrictedshareunits(RSUs)awardedtoNEOsinrespectofthefourquartersforeachfinancialyearplus,inthecaseofamountsthathavebeenaccruedforwhichRSUshavenotyetbeenawarded,theamounttobeawardedandplustheamountpaidasadividendequivalentonthevestingofRSUs.FordetailsofthelTIPandthematerialtermsofeachaward,see“longTermIncentivePlan(lTIP)”onpage30.ForMr.Gillespie,theRSUsinfiscal2013wereawardedundertheCSHInducementPlan;see“CSHInducementPlan”onpage37.ThegrantdatefairvalueforallRSUsexceptthosegrantedundertheCSHInducementPlanisthevolumeweightedaveragepriceontheTorontoStockExchangeforthe10tradingdaysimmediatelyprecedingthegrantdate.ThegrantdatefairvalueofRSUsgrantedundertheCSHInducementPlanis$8.50foreachRSU;thisistheminimumvaluethatanawardeewillreceiveonvesting.Thesemethodologiesrepresentmanagement’sbestestimateoffairvalueatthegrant dates.

TheRSUsawardedtoNEOsthatvestedduringthefinancialyearandthathadnotvestedasofMarch31,2014areshowninthefollowingtable.

MarketvalueofRSUsthat NumberofRSUs MarketvalueofRSUs vestedduringtheyear thathavenotvested thathavenotvested NEOname endedMarch31,2014 asofMarch31,2014 asofMarch31,2014 ($) (#) ($)

PaulReynolds $ 714,356 167,659 $ 1,374,804

BradleyKotush $ 111,599 49,012 $ 401,898

DanielDaviau $ 468,208 216,416 $ 1,774,611

AlexisdeRosnay $ 795,600 444,259 $ 3,642,924

JohnGillespie $ — 57,531 $ 471,754


ThemarketvalueofRSUsthatvestedduringtheyeariscalculatedbymultiplyingthenumberofRSUsthatvestedbytheclosingmarketpriceoftheunderlyingsharesonthevestingdate.ThemarketvalueofRSUsthathavenotvestedasofMarch31,2014iscalculatedbymultiplyingthenumberofRSUsthathavenotvestedbytheclosingmarketpriceoftheunderlyingsharesonMarch31,2014($8.20).AllRSUsaredistributedonvesting;thereforetheRSUsthathavenotvestedaretheonlyRSUsthathavenotbeenpaidoutordistributed.

(e) NooptionsawardedtoNEOsvestedduringthefinancialyear.TheoptionsthatwereunexercisedasofMarch31,2014areshowninthefollowingtable.Undercertaincircumstancestheoptionsmayexpireearlier.

Marketvalueof Numberof Valueofunexercised optionsthatvested sharesunderlying in-the-money duringtheyear unexercisedoptions Option Option optionsasof NEOname endedMarch31,2014 asofMarch31,2014 exerciseprice expirationdate March31,2014 ($) (#) ($) ($)

PaulReynolds $ — 117,318 $ 9.47 August31,2016 $ —

BradleyKotush $ — 117,318 $ 9.47 August31,2016 $ —

Themarketvalueofoptionsthatvestedduringtheyeariscalculatedbymultiplyingthenumberofsharesunderlyingtheunexercisedoptionsbytheexcess,ifany,oftheclosingmarketpriceoftheunderlyingsharesonthevestingdateandtheexercisepriceoftheoptions.Thevalueofunexercisedin-the-moneyoptionsasofMarch31,2014iscalculatedbymultiplyingthenumberofsharesunderlyingtheunexercisedoptionsbytheexcess,ifany,oftheclosingmarketpriceoftheunderlyingsharesonMarch31,2014($8.20)andtheexercisepriceoftheoptions.

(f1) Theamountsinthiscolumnrepresentprofitshareandincentive-basedcompensationpoolpaymentsandbonuses.Theamountsexcludeanyportionoftheprofitshareandincentive-basedcompensationpoolpaymentsandbonusesthatwouldotherwisehavebeenpaidincashinrespectofwhichtheNEOinsteadreceivedRSUsunderthelTIP.InthecaseofMr.Gillespie,theamountsinthiscolumnalsorepresentpaymentsunderthearrangementsdiscussedundertheheading“CollinsStewartHawkpointlegacyarrangements”onpage22.

(h) TheamountsinthiscolumnincludetheforgivenessofloansandtheCompany’scontributiontoanESPP.

PERFORMANCE GRAPH

Thefollowingperformancegraphshowsthecumulativereturnforthefivemostrecentlycompletedfinancialyears(fromApril1,2009toMarch31,2014)fortheCommonsharesoftheCompany(assumingreinvestmentofdividends)comparedtotheS&P/TSXCompositeIndex.Thegraphandtableshowwhata$100investmentintheindexandtheCommonshares,madeonApril1,2009,wouldbeworthattheendoffiscal2014.

Performance graph(C$)

90

130

210

170

$290

250

S&P/TSX Composite Index

CF Common shares

$100.00

March 31, 2009

$100.00

$138.04

March 31, 2010

$207.46

$161.87

March 31, 2011

$266.80

$142.10

March 31, 2012

$165.03

$146.20

March 31, 2013

$141.59

$164.38

March 31, 2014

$173.66

90

130

170

210

250

290


TheCorporateGovernanceandCompensationCommitteeusesabroaderanalysisthantotalreturnoninvestmentindeterminingtheannualcompensationoftheCompany’sexecutiveofficersbutcompensationlevelsfortheCEOandtheCFOhavebeengenerallyconsistentwiththetrendintotalreturnoninvestmentchartedintheperformancegraph.Asanexample,thetotalreturnoninvestmentincreased107.5%yearoveryearattheendoffiscal2010.Thiswasreflectedinanincreaseforfiscal2010intheCEO’stotalcompensationyearoveryearof44.0%andintheCFO’stotalcompensationyearoveryearof69.1%.TheCEO’stotalcompensationyearoveryeardecreased19.5%infiscal2011and49.7%infiscal2012andincreasedlessthan1.0%infiscal2013.However,itincreasedsignificantly(75.3%)infiscal2014toreflecttheimprovedperformanceoftheCompanyinthatyear.ForthefiscalyearendedMarch31,2009,theCEO’stotalcompensationwas$5,401,493.Histotalcompensationforfiscal2014is2.3%higherthanthat.TheincreaseinthecompensationoftheNEOs(otherthantheCEOandtheCFO)infiscal2014reflectsthesuccessoftheirbusinessunitsinthatyear.

COMPENSATION OF dIRECTORS

TheCorporateGovernanceandCompensationCommitteereviewsannuallythecompensationpaidtodirectorsasdirectors.Inassessingthecompensationofdirectors,thecommitteereviewsexternalsurveysandotherthirdpartyinformationpertainingtocompensationpaidbytheCompany’sindustrypeerstotheirdirectorsandtocorporatedirectorsinCanada.

ThefollowingtablesetsoutthecompensationforallthedirectorswhoarenotNEOsfortheCompany’smostrecentlycompletedfiscalyear(2014):

Non-equity Share-based Option-based incentiveplan Pension Allother Name Feesearned awards awards compensation value compensation Total ($) ($) ($) ($) ($) ($) ($) (a) (b) (c) (d) (e) (f ) (g) (h)

CharlesBralver $ 84,291$ 50,000$ — $ — $ — $ — $ 134,291

PeterBrown(1) $ —$ — $ — $ 154,773$ — $ 465,888$ 620,661

MassimoCarello $ 105,000 $ 25,000$ —$ — $ — $ — $ 130,000

WilliamEeuwes $ 72,500$ 50,000 $ —$ — $ — $ — $ 122,500

MichaelHarris $ 18,000$ 110,000$ —$ — $ — $ — $ 128,000

DavidKassie $ — $ 436,254 $ — $1,600,000$ — $ 450,000 $2,486,254

Terrencelyons $ 230,821$ 58,752$ —$ — $ — $ — $ 289,573

DipeshShah $ 91,875$ 50,000 $ —$ — $ — $ — $ 141,875

(1) PeterBrownresignedasadirectoroftheCompanyeffectiveonMay23,2014.

(b) Theamountsinthiscolumnincludetheannualfee,meetingfeesandtravelfees.InthecaseofMessrs.lyonsandBralver,theamountincludesfeesearnedinUSdollarsasdirectorsofCanaccordGenuityInc.InthecaseofMessrs.lyonsandShah,theamountincludesfeesearnedinUKpoundssterlingasdirectorsofCanaccordGenuitylimitedorCanaccordGenuityWealthlimited.

(c) Theamountsinthiscolumnfortheindependentdirectors(Messrs.Bralver,Carello,Eeuwes,Harris,lyonsandShah)representthegrantdatefairvalueofthedeferredshareunits(DSUs)awardedtodirectorsinrespectofthefourquartersforthefinancialyear.FordetailsoftheDSUs,see“Deferredshareunits”onpage29.ThegrantdatefairvalueisthevolumeweightedaveragepriceontheTorontoStockExchangeforthe10tradingdaysimmediatelyprecedingthegrantdate.Thismethodologyrepresentsmanagement’sbestestimateoffairvalueatthegrantdate.


TheDSUsawardedtodirectorsthatwereawardedduringthefinancialyearandthatwereoutstandingasofMarch31,2014areshowninthefollowingtable.ThesenumbersincludeadditionalDSUspaidinrespectofcashdividends.ThemarketvalueofDSUsawardedduringtheyeariscalculatedbymultiplyingthenumberofDSUsawardedbygrantdatefairvalueortheclosingpriceoftheunderlyingsharesonthedividendpaymentdate,asthecasemaybe.ThemarketvalueofDSUsthatareheldasofMarch31,2014,iscalculatedbymultiplyingthenumberofDSUsheldbytheclosingmarketpriceoftheunderlyingsharesonMarch31,2014($8.20).

NumberofDSUs MarketvalueofDSUs NumberofDSUs MarketvalueofDSUs awardedduringthe awardedduringthe heldasof heldasof Directorname yearendedMarch31,2014 yearendedMarch31,2014 March31,2014 March31,2014 (#) ($) (#) ($)

CharlesBralver 7,942 $ 53,690 21,211 $ 173,932

MassimoCarello 3,976 $ 26,880 10,749 $ 88,141

WilliamEeuwes 7,951 $ 53,745 21,489 $ 176,213

MichaelHarris 17,487 $ 118,211 47,264 $ 387,568

Terrencelyons 9,347 $ 63,185 25,483 $ 208,959

DipeshShah 7,629 $ 51,611 10,645 $ 87,287

Theamountsincolumn(c)forDavidKassierepresentthegrantdatefairvalueoftherestrictedshareunits(RSUs)awardedtodirectorsinrespectofthefourquartersforthefinancialyearplus,inthecaseofamountsthathavebeenaccruedforwhichRSUshavenotyetbeenawarded,theamounttobeawardedandplustheamountpaidasadividendequivalentonthevestingofRSUs.FordetailsofthelTIPandthematerialtermsofeachaward,see“longTermIncentivePlan(lTIP)”onpage30.ThegrantdatefairvalueisbasedonthevolumeweightedaveragepriceontheTorontoStockExchangeatthegrant date.

TheRSUsawardedtoMr.KassiethatvestedduringthefinancialyearandthathadnotvestedasofMarch31,2014areshowninthefollowingtable.

MarketvalueofRSUsthat NumberofRSUs MarketvalueofRSUs vestedduringtheyear thathavenotvested thathavenotvested Directorname endedMarch31,2014 asofMarch31,2014 asofMarch31,2014 ($) (#) ($)

DavidKassie $ 307,050 185,776 $ 1,523,363

ThemarketvalueofRSUsthatvestedduringtheyeariscalculatedbymultiplyingthenumberofRSUsthatvestedbytheclosingmarketpriceoftheunderlyingsharesonthevestingdate.ThemarketvalueofRSUsthathavenotvestedasofMarch31,2014iscalculatedbymultiplyingthenumberofRSUsthathavenotvestedbytheclosingmarketpriceoftheunderlyingsharesonMarch31,2014($8.20).AllRSUsaredistributedonvesting;thereforetheRSUsthathavenotvestedaretheonlyRSUsthathavenotbeenpaidoutordistributed.


(d) TheoptionsawardedtodirectorsthatvestedduringthefinancialyearandthatwereunexercisedasofMarch31,2014areshowninthefollowingtable.Undercertaincircumstancestheoptionsmayexpireearlier.

Marketvalue Numberof ofoptionsthat sharesunderlying Valueofunexercised vestedduringtheyear unexercisedoptions in-the-moneyoptions Directorname endedMarch31,2014 asofMarch31,2014 Optionexerciseprice Optionexpirationdate asofMarch31,2014 ($) (#) ($) ($)

CharlesBralver $ — 25,000 $ 8.39 March31,2017 $ —

MassimoCarello $ — 25,000 $ 7.87 March31,2015 $ 8,250

$ — 25,000 $ 7.21 March31,2016 $ 24,750

$ — 25,000 $ 8.39 March31,2017 $ —

WilliamEeuwes $ — 25,000 $ 9.48 March31,2015 $ —

$ — 25,000 $ 7.21 March31,2016 $ 24,750

$ — 25,000 $ 8.39 March31,2017 $ —

MichaelHarris $ — 25,000 $ 9.48 March31,2015 $ —

$ — 25,000 $ 7.21 March31,2016 $ 24,750

$ — 25,000 $ 8.39 March31,2017 $ —

Terrencelyons $ — 25,000 $ 9.48 March31,2015 $ —

$ — 25,000 $ 7.21 March31,2016 $ 24,750

$ — 25,000 $ 8.39 March31,2017 $ —

Themarketvalueofoptionsthatvestedduringtheyeariscalculatedbymultiplyingthenumberofsharesunderlyingtheunexercisedoptionsbytheexcess,ifany,oftheclosingmarketpriceoftheunderlyingsharesonthevestingdateandtheexercisepriceoftheoptions.Thevalueofunexercisedin-the-moneyoptionsasofMarch31,2014iscalculatedbymultiplyingthenumberofsharesunderlyingtheunexercisedoptionsbytheexcess,ifany,oftheclosingmarketpriceoftheunderlyingsharesonMarch31,2014($8.20)andtheexercisepriceoftheoptions.

(e) Theamountsinthiscolumnrepresentprofitshareandincentive-basedcompensationpoolpayments.

(g) Theamountsinthiscolumnincludebasesalary,commissions,theforgivenessofloansandtheCompany’scontributiontoan ESPP.

Forfiscal2014,non-executivedirectorswerepaidanannualfeeof$100,000peryearfortheirserviceasdirectorsofCanaccordGenuityGroupInc.Inaddition,non-executivedirectorswerepaidafeeof$1,500foreachmeetingattendedoftheBoardandofacommitteeofwhichtheyareamemberand$1,500fortravelinanydayinexcessoffourhours.TheleadDirectorwaspaidanadditionalfeeof$40,000peryear.ThechairoftheAuditCommitteewaspaidanadditionalfeeof$20,000peryearandthechairoftheCorporateGovernanceandCompensationCommitteewaspaidanadditionalfeeof$10,000peryear.

Messrs.Bralver,lyonsandShahwerealsonon-executivedirectorsofvarioussubsidiariesoftheCanaccordGenuityGroup.Mr.lyonswasadirectorofCanaccordGenuitylimitedandamemberofitsauditcommitteeand,inthosecapacities,forthefirstthreequartersoffiscal2013,waspaidanannualfeeof£45,000.Mr.BralverwasadirectorofCanaccordGenuityInc.and,inthatcapacity,forthefirstthreequartersoffiscal2013,waspaidUS$1,500foreachmeetingattendedofthatBoard(foraminimumoffourmeetingsperyear).

Duringtheyear,Mr.BralverbecamethechairoftheauditcommitteeofCanaccordGenuityInc.;Mr.lyonsbecameadirectorofCanaccordGenuityWealthlimited,CanaccordGenuityInc.andanumberoftheCanaccordGenuityGroupsubsidiariesinAsia;andMr.ShahbecameadirectorofCanaccordGenuitylimitedandamemberofitsauditcommittee.Asaresultoftheannualreviewofthecompensationpaidtodirectorsandinrecognitionoftheincreasedinvolvementonthesesubsidiaryboardsandcommittees,effectivefromJanuary1,2014,(a)non-executivedirectorswhoserveasdirectorsofCanaccordGenuitylimitedwillbepaidanannualfeeof£40,000andafeeof£1,000foreachmeetingattendedoftheboardofCanaccordGenuitylimitedorCanaccordGenuityWealthlimitedandofacommitteeofwhichtheyareamemberand£1,000fortravelinanydayinexcessoffourhours,(b)non-executivedirectorswhoserveasdirectorsofCanaccordGenuityInc.willbepaidanannualfeeofUS$50,000andafeeofUS$1,500foreachmeetingattendedoftheboardofCanaccordGenuityInc.andofacommitteeofwhichtheyareamemberandUS$1,500fortravelinanydayinexcessoffourhoursand(c)non-executivedirectorswhoserveasdirectorsoftheAustralianandAsiansubsidiariesoftheCanaccordGenuityGroupwillbepaidafeeof$1,500foreachmeetingattendedofeachboardofsuchsubsidiariesandofacommitteeofwhichtheyareamemberand$1,500fortravelinanydayinexcessoffourhours.Inaddition,effectivefromJanuary1,2014,Mr.BralverwillbepaidanadditionalfeeofUS$20,000asthechairoftheauditcommitteeofCanaccordGenuityInc.


deferred share units

EffectivefromApril1,2011,nofurtherstockoptionsweregrantedtodirectors.Theannualoptiongrantwasreplacedbyaquarterlyawardofdeferredshareunits(DSUs)wherebythedirectorscanelecttohavethefeespayabletothempaidintheformoftheissuanceofDSUs.Directorsmustelectannuallywhethertheywishtheirdirectors’feestobesousedandcanspecifyaportionoftheirdirectors’feestobeusedforDSUsandtheremainingamountoffeestobepaidincash.ADSUisabookkeepingentrythattracksthevalueofoneCommonshare.WhencashdividendsarepaidonCommonshares,eligibledirectorsarecreditedwithadditionalDSUs.ThenumberofadditionalDSUsiscalculatedbymultiplyingthecashdividendperCommonsharebythenumberofDSUsinthedirector’saccountasofthedateofrecorddividedbythefairmarketvalueofaCommonshareonthepaymentdateofthedividend.DSUsaccumulateoveradirector’stermofserviceandarenotpaidoutuntilthedirectorleavestheBoardofDirectors,providingthemwithanongoingstakeintheCompanyduringthetermofservice.Whenthedirectorleaves theBoardofDirectors,paymentfortheDSUsismadeincash.

Share ownership guidelines

Directorswillhavefiveyearsfromthedateoftheirelectionorappointmenttoacquireshareswithamarketvalueof$250,000.Unexercisedin-the-moneyoptionsdonotcounttowardstheshareownershipthreshold.Untiltheshareownershipthresholdismet,aminimumof$50,000oftheannualfeewillbeintheformofDSUs.Aftertheshareownershipthresholdismet,aminimumof$25,000oftheretainerwillbeintheformofDSUs.Directorsmayelecttotakeanypart(upto100%)ofthefeesintheformof DSUs.

Thedirectorsarealsoentitledtoreimbursementforout-of-pocketexpensesforattendanceatmeetingsoftheBoardandanycommittees of the Board.

Insurance coverage and indemnification

TheCompany’sdirectorsandofficersandthedirectorsandofficersofitsaffiliateentitiesarecoveredunderdirectors’andofficers’insurancepoliciesprovidinganaggregatelimitofliabilitytotheinsureddirectorsandofficersof$40million.

TheCompany’sarticlesalsoprovideformandatoryindemnificationofitsdirectorsandformerdirectorsfromandagainstliability andcostsinrespectofanyactionorsuitagainsttheminconnectionwiththeexecutionoftheirdutiesoroffice,eitherfortheCompanyoranyaffiliatedentity,subjecttocertaincustomarylimitations.TheCompanyhasenteredintoadirector’sindemnificationagreementwitheachofthedirectorswhichsupplementsthearticlesandprovides,amongotherthings,forpaymentofexpensesastheyareincurred(subjecttorepaymentifitislaterdeterminedthatthedirectorwasnotentitledtobeindemnified),thedeterminationofentitlementbyindependentlegalcounselandthemaintenanceofinsuranceatthecurrentlevelsifitisreasonablyavailable.

Securities Authorized for Issuance under Equity Compensation Plans

EquITY COMPENSATION PLAN INFORMATION(1)

Number of securities remainingavailable Numberofsecuritiestobe Weightedaverage forfutureissuance issueduponexercise exerciseprice underequitycompensation ofoutstandingoptions, ofoutstandingoptions, plans(excludingsecurities Plancategory warrantsandrights warrantsandrights reflectedincolumn(a)) (a) (b) (c)

Equitycompensationplansapprovedbysecurityholders:

lTIP(2) 5,714,216 $ 6.74 5,262,322

ShareOptionPlan 1,959,632 $ 9.27 12,934

Equitycompensationplansnotapprovedbysecurityholders:

CSHReplacementABED 99,231 $ 9.01 0

CSHReplacementlTIP 496,996 $ 9.01 0

CSHInducementPlan 1,450,480 $ 8.50 0

Total 9,720,555 Notapplicable

(1) TheinformationinthistableisgivenasofMarch31,2014.(2)ThisinformationrelatestothesharesissuablefromtreasuryunderthelongTermIncentivePlan(lTIP)forawardsinrespectofallfiscalquartersendedonorbeforeMarch31,2014.Itdoesnot

includethesharespurchasedforthelTIPbythekeyemployeebenefittrust.


CanaccordGenuityhasthefollowingshare-basedincentiveschemesforpurposesofrewardingitsexecutivesandemployeesandaligningtheirinterestswiththoseoftheCompany:

1. LONG TERM INCENTIVE PLAN (LTIP)

OnAugust2,2007,theCompanyadoptedthelongTermIncentivePlan(the“LTIP”).SetoutbelowisasummaryoftheprincipalrulesofthelTIPwhichisprovidedforinformationpurposesonlyandcannotberelieduponinsubstitutionoftherulesthemselves.

(a) Eligibility; grant of awards

EligibleparticipantsareemployeesintheCanaccordGenuitycapitalmarketsdivisionoftheCanaccordGenuityGroupandsenioroperationsandadministrationmanagementemployeesofcompaniesintheGroup.ThegeneraltermsofthelTIParethesameforeachcountrybut,becauseofjurisdictionaldifferences,historicallytheplanshavebeenimplementedinslightlydifferentwaysandthereareseparateplantextsforeachoftheUnitedKingdomandtheUnitedStatesandforelsewhere.ForemployeesoutsidetheUnitedKingdomandtheUnitedStates(principallyemployeesinCanadaofCanaccordGenuityCorp.),akeyemployeebenefittrusthasbeenestablished,andtheCompanyorCanaccordGenuityCorp.fundsthetrustwithcashwhichisusedbyatrusteetopurchaseCommonsharesontheopenmarketthatwillbeheldintrustbythetrusteeuntilrestrictedshareunitsvest,ortheCompanyissuesCommonsharesfromtreasurytoplanparticipantsfollowingvestingofrestrictedshareunits.Historically,foremployeesintheUnitedStatesandtheUnitedKingdom,atthetimeofeachrestrictedshareunitaward,theCompanyhasallottedCommonsharesandtheseshareshavebeenissuedfromtreasurytoplanparticipantsfollowingvestingofrestrictedshareunits.EffectivefromJune2014,keyemployeebenefittrustshavealsobeenestablishedintheUnitedStatesandtheUnitedKingdomandtheCompanyorCanaccordGenuityInc.orCanaccordGenuitylimited,asthecasemaybe,willfundthetrustswithcashwhichisusedbyatrusteetopurchaseCommonsharesontheopenmarketthatwillbeheldintrustsbytheirtrusteesuntilrestrictedshareunitsvest,ortheCompanywillissueCommonsharesfromtreasurytoplanparticipantsfollowingvestingofrestrictedshareunits.TheplantextsforeachoftheUnitedKingdomandtheUnitedStateshavebeenamendedtoreflectthischangeandtomakecertainotherconsequentialamendmentsandamendmentstoreflectchangesofnameintheCanaccordGenuityGroup.Inaddition,theplantextsforeachoftheUnitedKingdomandtheUnitedStateshavebeenamendedtoprovidethatthemaximumvestingperiodforanyawardisfiveyearsratherthanthreeyears.Thisamendmentdoesnotapplytoanyawardsthathavealreadybeengranted.TheseamendmentsarewithintheauthorityoftheCommittee,andshareholderapprovalisnotrequiredandhasnotbeenobtained.

Awardsaregrantedintheformofunvestedrestrictedshareunits(knownasRSUs).Uponvesting,therestrictedshareunitsentitletheparticipanttoreceive(bywayofissuancefromtreasuryand/ortransfer)anequivalentnumberofCommonshares.

ThelTIPisadministeredbytheBoardofDirectors,theCorporateGovernanceandCompensationCommittee(orsuchothercommitteeoftheBoardofDirectorsthattheBoardmayauthorizetoadministerthelTIP;the“Committee”) and the Chief ExecutiveOfficer,ChiefOperatingOfficer(ifany)andChiefFinancialOfficeroftheCompany(forthepurposesofthissection,the“Executive Officers”).

(b) Exercise price

ThepriceatwhichaparticipantmayacquireCommonsharesonthevestingofhisorherrestrictedshareunitsisnil.

(c) dividends

AnydividendspaidonCommonsharesduringthevestingperiodwillnotaccruetotheunderlyingrestrictedshareunits;however,participantswillbeentitledtoreceiveacashequivalentofanysuchdividendsaccruing(knownasadividendequivalent)uponvestingoftheirshareunits.

(d) Plan limits

ThemaximumnumberofCommonsharesthatmaybeissuedfromtreasuryunderthelTIPis10,000,000.Thisrepresentsapproximately9.8%ofthenumberofCommonsharesoutstandingasofthedateofthisCircular.InthemanagementinformationcircularfortheannualgeneralmeetingoftheCorporation’sshareholdersheldonAugust2,2007,atwhichthelTIPwasapprovedbyshareholders,theCompanysetoutthatthemaximumnumberofCommonsharesthatmaybesubjecttorestrictedshareunitawardsunderthelTIPinrespectofanyfourconsecutivefiscalquartersoftheCompanyis2,000,000.InMay2012,theCommitteeamendedthelTIPtoprovidethatthemaximumnumberofCommonsharesthatmaybeissuedfromtreasurypursuanttoawardsunderthelTIPinrespectofanyfourconsecutivefiscalquartersoftheCorporationis3,000,000andtomakeitclearthatthismaximumonlyappliestoawardsunderthelTIPandnotothershare-basedincentiveschemes.InNovember2012,theCommitteeamendedthelTIPtoreducetoamaximumof12monthsthenon-competitionperiodfollowingatermination.TheseamendmentsarewithintheauthorityoftheCommittee,andshareholderapprovalisnotrequiredandhasnotbeenobtained.


In addition,

(i) themaximumnumberofCommonshareswhichmaybereservedforissuancetoanypersonatanytimeunderthelTIPmaynotexceed2.5%oftheCommonsharesoutstandingatthetimeofanyawardtothatperson;and

(ii) theaggregatenumberofCommonshares(a)issuedtoinsidersoftheCompany,withinanyone-yearperiod;or(b)issuabletoinsidersoftheCompany,atanytime,underthelTIP,orwhencombinedwithalloftheCompany’sothersecurity-basedcompensationarrangements(asdefinedintheTorontoStockExchangeCompanyManual),maynotexceed10%oftheCommonsharesthenoutstanding.Forthepurposeoftheinterpretationoftheplanlimits,“insiders”meansthoseinsiderswhoarerequiredtofileinsiderreportsunderCanadiansecuritieslegislation.

(e) Vesting/exercise; termination of employment; change of control

DuringtheyearendedMarch31,2014,1,629,285Commonshareswereissuedonthevestingofawardsandawardsover749,110Commonshareswereforfeited.

TheCommitteehasabsolutediscretiontodeterminethevestingcriteriaofawardsgrantedunderthelTIP,providedthatthevestingperiodisnomorethanthreeyearsfollowingtheendofthecalendaryearinwhichtheawardisgranted.

AbsentanyotherdeterminationbytheCommitteeoroneoftheExecutiveOfficers,unvestedshareunitsshallvestasfollows:

(i) one-thirdshallvestonthefirstbusinessdayaftertheCompany’sfirst“earningsrelease”(asmoreparticularlydefinedinthelTIP)thatimmediatelyprecedesthefirstanniversaryofthedateofgrant;

(ii) one-thirdshallvestonthefirstbusinessdayaftertheCompany’sfirstearningsreleasethatimmediatelyprecedesthesecondanniversaryofthedateofgrant;and

(iii) one-thirdshallvestonthefirstbusinessdayaftertheCompany’sfirstearningsreleasethatimmediatelyprecedesthethirdanniversaryofthedateofgrant.

Evenaftervesting,50%ofthesharesacquiredunderthelTIPmaybesubjecttorestrictionsontransferthatarerelatedtocertainminimumshareownershipguidelinesforplanparticipantsasestablishedbytheBoard,theCommitteeortheExecutiveOfficers.Therestrictionsontransfermaybedisappliedorwaived,inwholeorinpart,atanytimebytheCommitteeoranyExecutiveOfficer.

TherearenoperformanceconditionsattachingtothelTIPawards.

IfaparticipantterminateshisorheremploymentoriftheCompanyterminatesaparticipant’semploymentfor“cause”(asmoreparticularlydefinedinthelTIP),hisorherunvestedshareunitsshallautomaticallylapseonthedateofsuchtermination.Inallothercircumstancesofcessationofemployment(otherthandeath),iftheparticipantdoesnotcompetewiththeCompanyforaperiodof12monthsfollowingthetermination,theparticipantisentitledtoretainhisorherunvestedshareunitsuntiltheapplicablevestingdateandtheywillcontinuetobegovernedbytherulesofthelTIPincludingthevestingcriteriareferredtoabove.Ifaparticipant’semploymentterminatesbyreasonofdeath,hisorherunvestedshareunitswillautomaticallyvestonthedateofsuchevent.

Notwithstandingtheforegoing,theCommitteeoroneoftheExecutiveOfficersmay,withoutamendingtherulesofthelTIP,determinethatalloranyproportionofanawardwillvestincircumstancesinwhichitwouldnothaveotherwisevestedorwouldhavevestedatalaterdate.

ItisexpectedthattheexerciseofthisdiscretionwouldbeconsideredinsuchcircumstancesasachangeofcontroloftheCompanyorwheretheimmediatevestingoftheunvestedrestrictedshareunitsisnegotiatedaspartofseverancearrangements.

(f ) Manner of vesting

ParticipantsmayretaintheirvestedsharesinthelTIPuntiltheychoosetovoluntarilywithdrawthem.Ifaparticipantceasestobeanemployeeforwhateverreason,heorshewillberequiredtowithdrawtheirvestedshareswithin90daysofsucheventoccurring.VestingisconditionalupontheparticipantpayingforanyincometaxandemployeeNationalInsurancecontributionsdue(orlocallawequivalents)orundertakingtomakesuchapayment.


(g) Variation of share capital

Intheeventofanyamalgamation,arrangement,capitalizationissueorofferbywayofrights(includinganopenoffer),oruponanyconsolidation,subdivision,reclassificationorreductionorothervariationoftheCompany’ssharecapitalorintheeventthattheCompanyisthesubjectofademerger,thenumberofCommonsharesthesubjectofanlTIPawardmaybeadjustedinsuchmannerastheCommitteeconsiderstobeequitable.

(h) Amendments and general

NorightsunderanlTIPawardmaybeassignedortransferredbyanawardholdertoanyotherpersonexceptintheeventofanawardholder’sdeath.AwardsgrantedunderthelTIPshallnotbepensionable.

TherulesofthelTIPmaybeamendedbytheCommitteeinanywayprovidedthat:

(i) noamendmentmaybemadewhichwouldmateriallyprejudicetheinterestsofparticipantsinrelationtoawardsalreadygrantedtothemunlessthesanctionofparticipantshasbeenobtained;and

(ii) allamendmentstothemaximumnumberofCommonsharesthatmaybeissuedfromtreasuryunderthelTIP,theeligibilitycriteriaofparticipantsandtheamendmentprovisionswillrequirethepriorconsentoftheCompany’sshareholdersatanannualorspecialmeetingunlesstheyareminoramendmentstobenefittheadministrationoftheplanortoobtainormaintainfavourabletax,exchangecontrolorregulatorytreatmentforawardholders,theCompanyoramemberoftheGroup.

2. SHARE OPTION PLAN

OnJune21,2004,theCompanyadoptedtheShareOptionPlan.SetoutbelowisasummaryoftheprincipalrulesoftheShareOptionPlanwhichisprovidedforinformationpurposesonlyandcannotberelieduponinsubstitutionoftherulesthemselves.


Directors,officers,consultantsandcertainkeyemployeesoftheGroupareeligibletoparticipateintheShareOptionPlan.AwardsaregrantedintheformofoptionstopurchaseCommonshares.TheplanisadministeredbytheBoardandoptionsaregrantedattheBoard’sabsolutediscretion.

(b) Exercise price

ThepriceatwhichanoptionholdermayacquireCommonsharesontheexerciseofanoptionisdeterminedbytheBoardatthetimeofgrant,butinnocasewillitbelessthanthe“fairmarketvalue”oftheCommonsharespriortothedateofgrant.

(c) dividends

AnydividendspaidonCommonsharesduringthevestingperiodwillnotaccruetotheunderlyingoptions.

(d) Plan limits

ThemaximumnumberofCommonsharesthatmaybeissuedundertheShareOptionPlanis2,612,927.Thisrepresentsapproximately2.6%ofthenumberofCommonsharesoutstandingasofthedateofthisCircular.ThemaximumnumberofCommonsharesthatmaybeissuedtoanyonepersonundertheplanis5%oftheCommonsharesthenoutstanding.Inaddition,themaximumnumberofCommonsharesthatmaybeissuedtoinsidersoftheCompany,withinanyone-yearperiodmaynotexceed10%oftheCommonsharesthenoutstanding.Forthepurposeoftheinterpretationoftheplanlimits,“insiders”doesnotincludedirectorsorofficersofasubsidiaryoftheCompany.


DuringtheyearendedMarch31,2014,noCommonshareswereissuedontheexerciseofoptionsandoptionsover309,636Commonsharesexpiredunexercised.

SubsistingoptionsthatweregrantedtoindependentdirectorsoftheGroupvestoverfouryearsorthefollowingearlierdatesinthefollowingcircumstances:(i)immediatelyonthedeathoftheoptionholder,(ii)atthediscretionofthemajorityofthedirectors(otherthanoptionholders)exercisedwithin10daysofachangeofcontrol,and(iii)atthediscretionofthemajorityofthedirectors(otherthantheoptionholder)onthepermanentdisabilityoftheawardholder.EachoptionexpiresonMarch31intheseventhyearfollowinggrant.


SubsistingoptionsthatweregrantedtoseniormanagersoftheGrouponAugust31,2009vestoverfiveyearsorimmediatelyonthedeathoftheoptionholderandexpireontheearliestof:(i)sevenyearsfromthedateofgrant,(ii)threeyearsfollowingdeathorterminationofemployment,(iii)whenanyotherunvestedsharesawardedtotheoptionholderarecancelledforanyreason(otherthanearlyretirementbutincludingresignationwithoutenteringintoaformalexitagreementandterminationforcause),and(iv)inthecaseofearlyretirement,ifitisdeterminedthattheoptionholderhascompetedwiththeGrouporbreachedanynon-compete,non-solicitornon-disclosureobligations.

TheBoardhasdiscretiontodeterminetheexerciseandvestingcriteriaapplicabletoanyfuturegrantsofoptionsundertheShareOptionPlan,butalloptionsmustexpirenotlessthan10yearsafterthedateofgrant.

Notwithstandingtheforegoing,theCommitteeoroneoftheExecutiveOfficersmay,withoutamendingtherulesoftheShareOptionPlan,determinethatalloranyproportionofanawardwillvestincircumstancesinwhichitwouldnothaveotherwisevestedorwouldhavevestedatalaterdate.Itisexpectedthattheexerciseofthisdiscretionwouldbeconsideredinsuchcircumstancesaswheretheimmediatevestingofoptionsisnegotiatedaspartofseverancearrangements.

(f ) Manner of exercise

Followingreceiptofanexercisenoticeinrespectofanoption,togetherwithpaymentfortheexercisepricedueandforanyincometaxandsocialsecuritycontributionsdue(orlocallawequivalent)oranundertakingtomakesuchapayment,theCommonsharesinrespectofwhichanoptionhasbeenexercisedmustbeissuedbytheCompanyortheCompanymustprocuretheirtransfertothe optionholder.

Asanalternativetotheabove,andsubjecttotheoptionshavingvested,theShareOptionPlanrulesprovidethattheBoardmayactivateshareappreciationrightsinwhichcaseoptionholdersshallbeentitledtoelecttoterminatetheiroptions(inwholeorinpart)andtoreceivethenumberofCommonshareshavingavaluethatisequaltothedifferencebetweentheexercisepricepershareofthenumberofCommonsharesforwhichtheoptionholderhascancelledhisorheroptionsandthemarketvalueofsuchnumber of Common shares.


Intheeventofanysubdivision,consolidation,reclassificationorotherreorganizationoftheCompany’ssharecapital,thenumberofCommonsharesthesubjectofanoptionwillbeadjustedinsuchmannerastheChiefFinancialOfficeroftheCompanyconsiderstobeequitable,sothattheaffectedoptionholdersmayacquirethesameshareintheequitycapitaloftheCompanyatthesametotalpriceafterthereorganizationastheywouldhavebeenabletoacquirepriortothereorganization.


OptionsawardedundertheShareOptionPlanarenotassignableortransferrabletoanyotherperson.

ApprovalofCanaccordGenuity’sshareholdersisrequiredforanyamendmentoftheShareOptionPlanandnoamendmentmayalterorimpairanyoptions,orrightspursuanttoanyoptions,previouslygrantedwithouttheconsentoftheholderofsuchoptions.

3. COLLINS STEWART HAWKPOINT REPLACEMENT ANNuAL BONuS EquITY dEFERRAL PLAN (THE “CSH REPLACEMENT ABEd”)

OnMarch19,2012,theCompanyadoptedtheReplacementABED,conditionalontheacquisitionofCSHPonMarch21,2012.SetoutbelowisasummaryoftheprincipalrulesoftheReplacementABEDwhichisprovidedforinformationpurposesonlyandcannotberelieduponinsubstitutionoftherulesthemselves.


ReplacementABEDawardsweregrantedonMarch21,2012toemployeesoftheCSHPgroupwhowereparticipantsoftheCollinsStewartHawkpointAnnualBonusEquityDeferralPlan(the“CSH ABEd”)asareplacementfortheiroriginalCSHABEDawards.

TheReplacementABEDawardsweregrantedintheformofnilcostawardstoacquireaspecifiednumberofCommonshares and/orarelatedpaymentofcash.

TherewillbenofutureReplacementABEDawardsgrantedundertheReplacementABED.


(b) Exercise price

ThepriceatwhichanawardholdermayacquireCommonsharesontheexerciseofaReplacementABEDawardisnil.

(c) dividends

AnydividendspaidonCommonsharesduringthevestingperiodwillnotaccruetotheunderlyingReplacementABEDawards.

(d) Plan limits

AsofMarch31,2014,amaximumnumberof99,231CommonsharesmaybeissuedbytheCompanytosatisfytheexerciseofReplacementABEDawards.Thisrepresentsapproximately0.1%ofthenumberofCommonsharesoutstandingasofthedateof this Circular.

(e) Vesting/exercise; termination of employment

DuringtheyearendedMarch31,2014,349,200CommonshareswereissuedontheexerciseofReplacementABEDawardsandawardsover18,214Commonshareswereforfeited.AllReplacementABEDawardsbecameexercisablebyMarch17,2014.

TherearenoperformanceconditionsattachingtotheReplacementABEDawards.

Ifanawardholderterminateshisorheremploymentwithnotice,hisorherReplacementABEDaward(whethervestedorunvested)shallautomaticallylapseandceasetobeexercisableonthedateofgivingsuchnotice.IftheCompanyterminatesanawardholder’semploymentwithnoticeincircumstanceswherethereasonforissuingsuchnoticeamountstogrossmisconductonthepartoftheawardholder(asdefinedintherulesoftheReplacementABED),hisorherReplacementABEDaward(whethervestedorunvested)shallautomaticallylapseandceasetobeexercisableonthedateofthegivingofsuchnotice.Inallothercircumstancesofcessationofemployment,theawardholderisentitledtoretainhisorherReplacementABEDawardanditwillcontinuetobegovernedbytherulesoftheReplacementABED.

NotwithstandingtheforegoingandotherthaninthecircumstancesinwhichtheReplacementABEDawardautomaticallylapses,acceleratedvestingmay,inthediscretionoftheCorporateGovernanceandCompensationCommitteeoftheBoard(the“Committee”),bepermitted,inwhichcasetheReplacementABEDawardmustbeexercisedwithin12monthsfromcessationofemployment,followingwhichitshalllapseandceasetobeexercisable.TheCommitteehasauthorizedanyoneoftheExecutiveOfficerstoexercisethisdiscretion.

(f ) Change of control

Fullorpartialacceleratedvestingisalsopermittedintheeventofachangeofcontrol(asdefinedintheReplacementABEDrules)intheBoard’sabsolutediscretion.Ifsuchdiscretionisnotexercised,thentheReplacementABEDawards(oranysuchportionthereof)willcontinuetosubsistinaccordancewiththerulesoftheReplacementABED.

(g) Manner of exercise

Within30daysofthereceiptofanexercisenoticeinrespectofaReplacementABEDaward,togetherwithapaymentforanyincometaxandemployeeandemployerNationalInsurancecontributionsdue(oranundertakingtomakesuchapayment),theCommonsharesinrespectofwhichtheawardhasbeenexercisedmustbeissuedbytheCompanyortheCompanymustprocuretheirtransfertotheawardholderandapaymentofthecashelementoftheaward(ifapplicable)willbepaidthroughtheapplicableGrouppayroll(subjecttoappropriatedeductionsforincometaxandemployeeandemployerNationalInsurancecontributions).

(h) Variation of share capital

Intheeventofanyamalgamation,arrangement,capitalizationissueorofferbywayofrights(includinganopenoffer),oruponanyconsolidation,subdivision,reclassificationorreductionorothervariationoftheCompany’ssharecapitalorintheeventthattheCompanyisthesubjectofademerger,thenumberofCommonsharesthesubjectofaReplacementABEDawardmaybeadjustedinsuchmannerastheBoard(followingconsultationwiththeCommittee)considerstobe,initsopinion,fairandreasonable.


(i) Amendments and general

NorightsunderaReplacementABEDawardmaybeassignedortransferredbyanawardholdertoanyotherpersonexceptintheeventofanawardholder’sdeath.AwardsgrantedundertheReplacementABEDshallnotbepensionable.

TherulesoftheReplacementABEDmaybeamendedbytheBoardortheCommitteeinanywayprovidedthat:

(i) noamendmentmaybemadewhichwouldmateriallyprejudicetheinterestsofawardholdersinrelationtoawardsalreadygrantedtothemunlessthesanctionofawardholdershasbeenobtained;and

(ii) allamendmentstothemaximumnumberofCommonsharesthatmaybeissuedundertheReplacementABED,thevestingperiod,thetransferprovisionsandtheamendmentprovisionswillrequirethepriorconsentoftheCompany’sshareholdersatanannualorspecialmeetingunlesstheyareminoramendmentstobenefittheadministrationoftheplanortoobtainormaintainfavourabletax,exchangecontrolorregulatorytreatmentforawardholders,theCompanyoramemberofthe Group.

Notwithstandingtheforegoing,theBoardortheCommitteemay,withoutamendingtherulesoftheReplacementABED,determinethatalloranyproportionofaReplacementABEDawardwillvestincircumstancesinwhichitwouldnothaveotherwisevestedorwouldhavevestedatalaterdate.

TheBoardmayamendtheReplacementABEDbywayofseparateschedulestoenableittobeoperatedoverseas.

4. COLLINS STEWART HAWKPOINT REPLACEMENT LONG TERM INCENTIVE PLAN (THE “CSH REPLACEMENT LTIP”)

OnMarch19,2012,theCompanyadoptedtheReplacementlTIP,conditionalontheacquisitionofCSHPonMarch21,2012.SetoutbelowisasummaryoftheprincipalrulesoftheReplacementlTIPwhichisprovidedforinformationpurposesonlyandcannotberelieduponinsubstitutionoftherulesthemselves.


ReplacementlTIPawardsweregrantedonMarch21,2012toemployeesoftheCSHPgroupwhowereparticipantsoftheCollinsStewartHawkpoint2010longTermIncentivePlan(the“CSH LTIP”)asareplacementfortheiroriginalCSHlTIPawards.

TheReplacementlTIPawardsweregrantedintheformofnilcostawardstoacquireaspecifiednumberofCommonshares.

TherewillbenofutureReplacementlTIPawardsgrantedundertheReplacementlTIP.

(b) Exercise price

ThepriceatwhichanawardholdermayacquireCommonsharesontheexerciseofaReplacementlTIPawardisnil.

(c) dividends

AnydividendspaidonCommonsharesduringthevestingperiodwillnotaccruetotheunderlyingReplacementlTIPawards.

(d) Plan limits

AsofMarch31,2014,amaximumnumberof496,996CommonsharesmaybeissuedbytheCompanytosatisfytheexerciseofReplacementlTIPawards.Thisrepresentsapproximately0.5%ofthenumberofCommonsharesoutstandingasofthedateofthis Circular.


(e) Vesting/exercise; termination of employment

DuringtheyearendedMarch31,2014,177,283CommonshareswereissuedontheexerciseofReplacementlTIPawardsandawardsover37,421Commonshareswereforfeited.AllReplacementlTIPawardswillhavebecomeexercisablebyMarch21,2015.

TherearenoperformanceconditionsattachingtotheReplacementlTIPawards.

Ifanawardholder’semploymentterminatesasaresultofdeath,hisorherReplacementlTIPawardshallimmediatelyvestandbecomeexercisable.Ifanawardholder’semploymentterminatesincertain“goodleaver”circumstancesincludingill-healthandotherthanfor“cause”(asmoreparticularlydefinedintheReplacementlTIPrules),thenhisorherReplacementlTIPawardshallcontinuetovestascontemplatedundertheReplacementlTIPrules.

Ifanawardholder’semploymentterminatesfor“cause”,thenanyunvestedpartofhisorherReplacementlTIPawardshallautomaticallylapseonthedateofsuchtermination.

NotwithstandingtheforegoingandotherthaninthecircumstancesinwhichtheunvestedpartofaReplacementlTIPawardautomaticallylapsesasaresultofterminationfor“cause”,acceleratedvestingmay,inthediscretionoftheCommittee,bepermitted,inwhichcasetheCommitteewilldeterminethetermsofsuchacceleratedvesting.TheCommitteehasauthorizedanyoneoftheExecutiveOfficerstoexercisethisdiscretion.

(f ) Change of control

Fullorpartialacceleratedvestingisalsopermittedintheeventofachangeofcontrol(asdefinedintheReplacementlTIPrules)intheBoard’sabsolutediscretion.Ifsuchdiscretionisnotexercised,thentheReplacementlTIPawards(oranysuchportionthereof)willcontinuetosubsistinaccordancewiththerulesoftheReplacementlTIP.

(g) Manner of exercise

Within30daysofthereceiptofanexercisenoticeinrespectofaReplacementlTIPaward,togetherwithapaymentforanyincometaxandemployeeNationalInsurancecontributionsdue(oranundertakingtomakesuchapayment),theCommonsharesinrespectofwhichtheawardhasbeenexercisedmustbeissuedbytheCompanyortheCompanymustprocuretheirtransfertotheawardholder.

(h) Variation of share capital

Intheeventofanyamalgamation,arrangement,capitalizationissueorofferbywayofrights(includinganopenoffer),oruponanyconsolidation,subdivision,reclassificationorreductionorothervariationoftheCompany’ssharecapitalorintheeventthattheCompanyisthesubjectofademerger,thenumberofCommonsharesthesubjectofaReplacementlTIPawardmaybeadjustedinsuchmannerastheBoard(followingconsultationwiththeCommittee)considerstobe,initsopinion,fairandreasonable.

(i) Amendments and general

NorightsunderaReplacementlTIPawardmaybeassignedortransferredbyanawardholdertoanyotherpersonexceptintheeventofanawardholder’sdeath.AwardsgrantedundertheReplacementlTIPshallnotbepensionable.

TherulesoftheReplacementlTIPmaybeamendedbytheBoardortheCommitteeinanywayprovidedthat:

(i) noamendmentmaybemadewhichwouldmateriallyprejudicetheinterestsofawardholdersinrelationtoawardsalreadygrantedtothemunlessthesanctionofawardholdershasbeenobtained;and

(ii) allamendmentstothemaximumnumberofCommonsharesthatmaybeissuedundertheReplacementlTIP,thevestingperiod,thetransferprovisionsandtheamendmentprovisionswillrequirethepriorconsentoftheCompany’sshareholdersatanannualorspecialmeetingunlesstheyareminoramendmentstobenefittheadministrationoftheplanortoobtainormaintainfavourabletax,exchangecontrolorregulatorytreatmentforawardholders,theCompanyoramemberofthe Group.

Notwithstandingtheforegoing,theBoardortheCommitteemay,withoutamendingtherulesoftheReplacementlTIP,determinethatalloranyproportionofaReplacementlTIPawardwillvestincircumstancesinwhichitwouldnothaveotherwisevestedorwouldhavevestedatalaterdate.

TheBoardmayamendtheReplacementlTIPbywayofseparateschedulestoenableittobeoperatedoverseas.


5. COLLINS STEWART HAWKPOINT OFFICER EMPLOYMENT INduCEMENT PLAN (THE “CSH INduCEMENT PLAN”)

OnMay22,2012,theCompanyadoptedtheCSHInducementPlan.InNovember2012,theCommitteeamendedthePlantoreducetoamaximumof12monthsthenon-competitionperiodfollowingatermination.ThisamendmentiswithintheauthorityoftheCommittee,andshareholderapprovalisnotrequiredandhasnotbeenobtained.SetoutbelowisasummaryoftheprincipalrulesoftheCSHInducementPlanwhichisprovidedforinformationpurposesonlyandcannotberelieduponinsubstitutionoftherulesthemselves.


Anyemployeeof(i)theCSHPgroupcompanypreviouslyknownasCollinsStewartEuropelimited,(ii)theCSHPgroupcompanypreviouslyknownasHawkpointPartnerslimitedand/or(iii)oneofthecompaniesoperatingunderthebusinessname“CollinsStewartWealthManagement”(together,the“CSH Companies”)whowasinfull-timeemploymentasanofficerbetweentheeffectivedateoftheacquisitionofCSHP(thatis,March21,2012)andthedateofgrantofanawardiseligibletoparticipateintheCSHInducementPlan.

Awardsaregrantedintheformof“unvestedrestrictedshareunits”.Uponvesting,therestrictedshareunitsentitletheparticipanttoreceive(bywayofissuancefromtreasuryand/ortransfer)anequivalentnumberofCommonshares.

TheCSHInducementPlanisadministeredbytheBoard,theCommitteeandtheExecutiveOfficers.

(b) Exercise price

ThepriceatwhichaparticipantmayacquireCommonsharesonthevestingofhisorherrestrictedshareunitsisnil.

(c) dividends

AnydividendspaidonCommonsharesduringthevestingperiodwillnotaccruetotheunderlyingrestrictedshareunits;however,participantswillbeentitledtoreceiveacashequivalentofanysuchdividendsaccruing(knownasadividendequivalent)uponvestingoftheirshareunits.

(d) Plan limits

ThemaximumnumberofCommonsharesthatmaybeissuedfromtreasuryundertheCSHInducementPlanis2,036,785.Thisrepresentsapproximately2.0%ofthenumberofCommonsharesoutstandingasofthedateofthisCircular.

In addition,

(i) themaximumnumberofCommonshareswhichmaybereservedforissuancetoanypersonatanytimeunderthePlanmaynotexceed2.5%oftheCommonsharesoutstandingatthetimeofanyawardtothatperson;and

(ii) theaggregatenumberofCommonshares(a)issuedtoinsidersoftheCompany,withinanyone-yearperiodor(b)issuabletoinsidersoftheCompany,atanytime,underthePlan,orwhencombinedwithalloftheCompany’sothersecurity-basedcompensationarrangements(asdefinedintheTorontoStockExchangeCompanyManual),maynotexceed10%oftheCommonsharesthenoutstanding.Forthepurposeoftheinterpretationoftheplanlimits,“insiders”meansthoseinsiderswhoarerequiredtofileinsiderreportsunderCanadiansecuritieslegislation.


DuringtheyearendedMarch31,2013,awardsweremadeundertheCSHInducementPlanfor1,612,559restrictedshareunits(RSUs)withone-halfofthe1,612,559RSUsvestingonthefourthanniversaryandtheremaininghalfonthefifthanniversary.DuringtheyearendedMarch31,2014,106,535RSUswereforfeited.Oneachvestingdate,theRSUsentitletheawardeetoreceivecashorCommonsharesoftheCompany.Ifatthevestingdatethesharepriceislessthan$8.50pershare,thentheCompany,atitselection,willeither(a)paycashtotheemployeeequalto$8.50multipliedbythenumberofRSUsvestingonsuchdateor(b)paycashtotheemployeeequaltothedifferencebetween$8.50andthevestingdateshareprice,multipliedbythenumberofRSUsvestingonthatdateplusthenumberofsharesequaltothenumberofRSUsvestingonsuchdate.

TherearenoperformanceconditionsattachingtotheCSHInducementPlanawards.


IfaparticipantterminateshisorheremploymentoriftheCompanyterminatesaparticipant’semploymentfor“cause”(asmoreparticularlydefinedintheCSHInducementPlan),hisorherunvestedshareunitsshallautomaticallylapseonthedateofsuchtermination.Inallothercircumstancesofcessationofemployment(otherthandeath),iftheparticipantdoesnotcompetewiththeCompanyforaperiodof12monthsfollowingthetermination,theparticipantisentitledtoretainhisorherunvestedshareunitsuntiltheapplicablevestingdateandtheywillcontinuetobegovernedbytherulesoftheCSHInducementPlanincludingthevestingcriteriareferredtoabove.Ifaparticipant’semploymentterminatesbyreasonofdeath,hisorherunvestedshareunitswillautomaticallyvestonthedateofsuchevent.

Notwithstandingtheforegoing,theCommitteeoroneoftheExecutiveOfficersmay,withoutamendingtherulesoftheCSHInducementPlan,determinethatalloranyproportionofaCSHInducementPlanawardwillvestincircumstancesinwhichitwouldnothaveotherwisevestedorwouldhavevestedatalaterdate.ItisexpectedthattheexerciseofthisdiscretionwouldbeconsideredinsuchcircumstancesasachangeofcontroloftheCompanyorwheretheimmediatevestingoftheunvestedrestrictedshareunitsisnegotiatedaspartofseverancearrangements.Onthedeathofanawardholder,allunvestedrestrictedshareunitswillvestimmediately.

(f ) Manner of vesting

ParticipantsmayretaintheirvestedsharesintheCSHInducementPlanuntiltheychoosetovoluntarilywithdrawthem.Ifaparticipantceasestobeanemployeeforwhateverreason,heorshewillberequiredtowithdrawtheirvestedshareswithin90daysofsucheventoccurring.VestingisconditionalupontheparticipantpayingforanyincometaxandemployeeNationalInsurancecontributionsdue(orundertakingtomakesuchapayment).


Intheeventofanyamalgamation,arrangement,capitalizationissueorofferbywayofrights(includinganopenoffer),oruponanyconsolidation,subdivision,reclassificationorreductionorothervariationoftheCompany’ssharecapitalorintheeventthattheCompanyisthesubjectofademerger,thenumberofCommonsharesthesubjectofaCSHInducementPlanawardmaybeadjustedinsuchmannerastheCommitteeconsiderstobeequitable.


NorightsunderaCSHInducementPlanawardmaybeassignedortransferredbyanawardholdertoanyotherpersonexceptintheeventofanawardholder’sdeath.AwardsgrantedundertheCSHInducementPlanshallnotbepensionable.

TherulesoftheCSHInducementPlanmaybeamendedbytheCommitteeinanywayprovidedthat:

(i) noamendmentmaybemadewhichwouldmateriallyprejudicetheinterestsofparticipantsinrelationtoawardsalreadygrantedtothemunlessthesanctionofparticipantshasbeenobtained;and

(ii) allamendmentstothemaximumnumberofCommonsharesthatmaybeissuedundertheCSHInducementPlan,theeligibilitycriteriaofparticipantsandtheamendmentprovisionswillrequirethepriorconsentoftheCompany’sshareholdersatanannualorspecialmeetingunlesstheyareminoramendmentstobenefittheadministrationoftheplanortoobtainormaintainfavourabletax,exchangecontrolorregulatorytreatmentforawardholders,theCompanyora member of the Group.


Indebtedness of directors and Executive Officers

Thefollowingtablesetsouttheaggregateindebtedness(otherthan“routineindebtedness”)outstandingasatMay31,2014,enteredintoinconnectionwithapurchaseofsecuritiesoftheCompanyandallotherindebtednessofallexecutiveofficers,directors,employeesandformerexecutiveofficers,directorsandemployeesoftheCanaccordGenuityGroup.

Aggregate indebtedness ($)

TotheCompanyor Purpose itssubsidiaries Toanotherentity (a) (b) (c)

Sharepurchases $ 18,648,673 0

Other $ 12,527,623 0

Thefollowingtablesetsouttheindebtedness(otherthan“routineindebtedness”)totheCompanyandanyofitssubsidiariesoutstandingasatMay31,2014,ofeachdirectorandexecutiveofficeroftheCompany,eachproposednomineeforelectionasadirectoroftheCompanyandeachassociateofsuchdirector,executiveofficerorproposednominee.

Indebtedness of directors and executive officers under securities purchase programs

Financially assisted largestamount Amount securities Involvementof outstanding outstanding purchasesduring Amountforgiven Nameand companyor during asat fiscal2014 Securityfor during principalposition subsidiary fiscal2013 May31,2014 (#ofCommon indebtedness fiscal2014 ($) ($) shares) ($) (a) (b) (c) (d) (e) (f ) (g)

BradleyKotush Subsidiaryis Shares

CFO thelender $ 1,205,462 $ 1,205,462 200,000 purchased $ 0

ScottDavidson Subsidiaryis Shares

ExecutiveVice-President thelender $ 602,731 $ 602,731 100,000 purchased $ 0

TheindebtednessoftheexecutiveofficerswasincurredinconnectionwithloanstopurchaseCommonsharesoftheCompanyinaprogramtargetedatkeyexecutive-levelemployeesoftheCompanytorecognizetheircontributiontotheCompany.TheloansareforgivableloansunderwhichtheCompanylenttotheexecutiveofficer,withoutinterest,theaggregatepurchasepriceofCommonsharesoftheCompanyandagreed,subjecttocertainterms,toforgivetheloansastoone-thirdonthethird,fourthandfifthanniversariesofthepurchaseofshares.Iftheexecutiveofficerresignsoristerminatedforcause,thenthatproportionofallsharespurchasedwhichtheunforgivenportionoftheloanbearstotheaggregatepurchasepricewillberepurchasedbytheCompany;thishastheeffectoflimitingtherecourseontheloantoaportionofthesharespurchased.Allsharespurchasedaresubjecttoasecurityinterestinfavouroftheemployer,areheldinescrowandbearalegendreflectingtherestrictionsontheshares.TheCompanyalsoprovidedanindemnitytoensurethattheexecutiveofficerdoesnotsufferalossonforgivenessifthetaxpayableatthattimeexceedsthemarketvalueatthattime.

Exceptasnotedinthissection,thereisnoindebtedness(otherthan“routineindebtedness”)totheCanaccordGenuityGroupoutstandingasatMay31,2014,ofanydirectororexecutiveofficeroftheCompany,anyproposednomineeforelectionasadirectoroftheCompanyoranyassociateofsuchdirector,executiveofficerorproposednominee.


Interest of Informed Persons in Material Transactions

TotheknowledgeoftheCompany,noinformedperson(asdefinedinNationalInstrument51-102–Continuous Disclosure Obligations)ofCanaccordGenuityandnoknownassociateoraffiliateofanysuchinformedperson,hasorhashadanymaterialinterest,directorindirect,inanytransactionsinceApril1,2012,orinanyproposedtransactionwhichhasmateriallyaffectedorwouldmateriallyaffecttheCanaccordGenuityGroup.

Interest of Certain Persons in Matters to Be Acted upon

NoneofthepersonswhoareorhavebeendirectorsorexecutiveofficersoftheCompanyatanytimesinceApril1,2012,theproposednomineesforelectiontotheBoardofDirectorsoftheCompanyortheassociatesoraffiliatesofthosepersonshaveanymaterialinterest,directorindirect,bywayofbeneficialownershipofsecuritiesorotherwise,inanymattertobeacteduponattheMeetingotherthantheelectionofdirectors.

Other Matters to Be Acted upon

ItisnotknownwhetheranyothermatterswillcomebeforetheMeetingotherthanthosesetforthaboveandinthenoticeofmeeting,butifanyothermattersdoarise,thepersonsnamedintheProxyintendtovoteonanypoll,inaccordancewiththeirbestjudgment,exercisingdiscretionaryauthoritywithrespecttoamendmentsorvariationsofmattersratifiedinthenoticeofmeetingandothermatterswhichmayproperlycomebeforetheMeetingoranyadjournmentorpostponementoftheMeeting.

Dated on June 9, 2014.

ByorderoftheBoardofDirectorsMartinl.MaclachlanCorporateSecretary

www.canaccordgenuitygroup.com

Documents

Notice of Meeting and Management Information Circular€¦ · Notice of Meeting and Management Information Circular ... , a voting instruction form ... document may be considered