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## RELATED PARTY TRANSACTIONS 

Capstone's related party transactions in 2013 primarily comprised management fees paid by Capstone's equity accounted investments and compensation to key management. 

Management fees earned from Capstone's equity accounted investments are reported in the consolidated statements of income as revenue. During 2013, Capstone earned fees of $115, primarily related to the management of Glen Dhu and Fitzpatrick. 

## Compensation of Key Management 

Key management includes the Corporation's directors, Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Compensation awarded to key management consisted of salaries, directors' fees and short-term employee benefits. Eligible directors and senior management of the Corporation also receive forms of stock-based compensation. Key management compensation is described in note 28 (Related Party Transactions) in the consolidated financial statements for the year ended December 31, 2013. 

## Linking Management Compensation to Performance 

Compensation plays an important role in achieving short- and long-term business objectives that ultimately drive the Corporation’s business success in alignment with long-term shareholder goals. The objectives of the Corporation’s compensation program are to: 

• Attract and retain highly qualified employees with a history of proven success; 

• Align the interests of employees with shareholders’ interests and with the execution of the Corporation’s business strategy; 

• Establish performance goals that, if met, are expected to improve long-term shareholder value; and 

• Tie compensation to those goals and provide meaningful rewards for achieving them. 

Financial performance targets are set each year to provide management with an incentive to improve upon yearly budgeted financial results and are therefore aligned with shareholder interests. 

The following table summarizes the link between the Corporation's executive and senior officer forms of compensation and performance: 

<img src='content_image/290129.jpg'>

For a comprehensive understanding of Capstone's compensation program please refer to the "Compensation Discussion and Analysis" section of the Corporation's most recently filed information circular. 

## SUMMARY OF QUARTERLY RESULTS 

The following table provides a summary of the previous eight quarters of Capstone’s financial performance. 

<img src='content_image/290128.jpg'>

(1) Net income (loss) attributable to the shareholders of Capstone. 

(2) Common dividends include amounts declared for both the common shares of the Corporation and the Class B exchangeable units. 

(3) Net income (loss) and earnings (loss) per share have been restated for changes required by IFRS to implement IAS 19 - Employee Benefits. This change, which became effective, retroactively, January 1, 2013, is described in note 2 of the consolidated financial statements for the year ended December 31, 2013. 

