Notes toConsolidatedFinancial Statements (Unaudited) (Expressed in Canadian dollars) 

Year ended December 31, 2014 

## 20. Related parties (continued): 

As described in notes 1 and 18, on May 31, 2013 the Company completed the sale of its Saint Ambroise facility to 8439117 Canada Inc., a company controlled by the plant’s manager. 

During 2014 the Company paid fees of $ 847,285 (2013 – $21,863) to a legal firm where a current director of the Company is a partner. 

The Company’s President and CEO and one of the Company’s directors are co-founders and managing partners of Maxam Capital Corp (“Maxam”). The Company entered into a services agreement (the “Services Agreement”) with Maxam whereby Maxam provided, effective as of January 1, 2014, accounting, tax and public company compliance services, head office and infrastructure services and transaction support services to the Company. Pursuant to the Services Agreement, the Corporation paidMaxam a monthly service fee of approximately $30,000 plus reasonable out of pocket expenses.Effective September 29, 2014, this Services Agreement was terminated, and a new services agreement with Maxam was entered into whereby the monthly service fee was reduced to approximately $9,000 per month and includes only rent and administrative services . 

On September 29, 2014, the Company’s then CFO (a Vice President at Maxam Capital)entered into a consulting services agreement with the Company, pursuant to which, his holding company providedhis services as interim CFO to the Company for a period of three months, in return for a monthly fee of $12,500.This agreement was extended to January 31, 2015 and then terminated. 

On September 29, 2014, the Companyagreed to a services agreement with the Company’s CEO’s holding company(the “CEO Agreement”), pursuant to which, his holding company will provide his services as CEO to the Company in return for an annual service fee of $200,000 per annum until September 2015, and $287,500 per annum for the first two years thereafter, subject to adjustments. In addition, the CEO Agreement provides for payment of an incentive bonus based upon increases in the Company’s aggregate cash dividends, the grant of 250,000 RSU’s (note 12), and a lump sum signing bonus of $125,000. 

During 2013and in conjunction with the Company’s CEO joining the Company,a fund to be created by Maxam was granted a right to invest in the Company for an amount up to the lesser of ( i ) 10% of the total issued and outstanding common equity of the Company (or its successor) immediately following one or more transformational transactions, or ( ii ) $10 million. At the time this right was granted to Maxam, Maxam and theCompanywere not related. This right was exercised by Maxam Opportunities Fund II FW LP on September 26, 2014, whereby it acquired 5,240,964 shares in a private placement for proceeds to the Company of $8,700,000. 

