Dorel Industries Inc. — Proxy Solicitation & Information Statement 2022

Apr 14, 2022

Dorel Industries Inc. 1255 Greene Ave., Suite 300 Westmount, Québec H3Z 2A4 (514) 934-3034 www.dorel.com

NOTICE OF ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

NOTICE IS HEREBY GIVEN that an Annual and Special Meeting (the "Meeting") of holders of Class A Multiple Voting Shares and Class B Subordinate Voting Shares of Dorel Industries Inc. (the "Company") will be held at the Company's head office, 1255 Greene Ave., Suite 300, Westmount, Québec, on May 25, 2022 at 10:00 a.m. (eastern time). The purposes of the Meeting are to:

• 1. Receive and consider the consolidated financial statements of the Company for the fiscal year ended December 30, 2021 and the auditors' report thereon;
• 1. Elect directors;
• 1. Appoint auditors and authorize the directors to fix their remuneration;
• 1. Consider, and if deemed advisable, adopt a resolution in the form annexed as Schedule B to the Management Proxy Circular, approving an amendment to the 2004 Directors' Deferred Share Unit Plan of the Company;
• 1. Consider, and if deemed advisable, adopt a resolution in the form annexed as Schedule C to the Management Proxy Circular, approving an amendment to the 2009 Executive Deferred Share Unit Plan of the Company; and
• 1. Transact such other business as may properly be brought before the Meeting.

Only persons registered as shareholders on the records of the Company as of the close of business on April 12, 2022 (the "Record Date") are entitled to receive notice of, and to vote or act at, the Meeting. No person who becomes a shareholder after the Record Date will be entitled to vote or act at the Meeting or any adjournment(s) thereof.

In light of ongoing public health concerns related to the COVID-19 pandemic, the Company is requesting that shareholders not attend the Meeting in person. The Meeting will be webcast through the Company's website (www.dorel.com), on the home page under "Events", and the Company asks all shareholders to participate in that manner. While shareholders viewing the webcast will not be able to vote during the Meeting, they will be able to ask questions to the Company's management at its conclusion through the webcast platform.

Please vote your shares prior to the Meeting by returning your proxy form or voting instruction form, voting online or using the toll-free telephone number set out on the proxy or voting instruction form. Proxies to be used at the Meeting must be deposited with Computershare Investor Services Inc. (Attention: Proxy Department), 100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1 prior to 5:00 p.m. (eastern time) on Monday, May 23, 2022 or with the Secretary of the Company before the commencement of the Meeting or at any adjournment thereof.

DATED at Montréal, Québec April 12, 2022

BY ORDER OF THE BOARD OF DIRECTORS

Jeffrey Schwartz Executive Vice-President, Chief Financial Officer and Secretary

MANAGEMENT PROXY CIRCULAR

TABLE OF CONTENTS

SOLICITATION OF PROXIES BY MANAGEMENT 2
INTERNET AVAILABILITY OF PROXY-RELATED
MATERIALS 2
APPOINTMENT AND REVOCATION OF PROXIES 3
EXERCISE OF DISCRETION BY PROXIES 5
VOTING SHARES 5
PRINCIPAL SHAREHOLDERS 6
BUSINESS TO BE TRANSACTED AT THE
MEETING 7
COMPENSATION OF DIRECTORS 14
EXECUTIVE COMPENSATION 18
SECURITIES AUTHORIZED FOR ISSUANCE
UNDER EQUITY COMPENSATION PLANS 44
INFORMATION ON THE AUDIT COMMITTEE 44
INDEBTEDNESS OF DIRECTORS AND
OFFICERS 44
CORPORATE GOVERNANCE 44

INTEREST OF INFORMED PERSONS IN
MATERIAL TRANSACTIONS 45
SHAREHOLDER PROPOSALS 46
INTEREST OF CERTAIN PERSONS IN MATTERS
TO BE ACTED UPON 46
OTHER MATTERS 46
ADDITIONAL INFORMATION 46
DIRECTORS' APPROVAL 47
SCHEDULE A STATEMENT OF CORPORATE
GOVERNANCE PRACTICES 48
SCHEDULE B SHAREHOLDERS' RESOLUTION
AMENDMENT TO 2004 DIRECTORS'
DEFERRED SHARE UNIT PLAN 56
SCHEDULE C SHAREHOLDERS' RESOLUTION
AMENDMENT TO 2009 EXECUTIVE
DEFERRED SHARE UNIT PLAN 57

SOLICITATION OF PROXIES BY MANAGEMENT

This Management Proxy Circular (the "Circular") is furnished in connection with the solicitation by the management of Dorel Industries Inc. (the "Company") of proxies to be used at the Annual and Special Meeting of shareholders (the "Meeting") of the Company to be held on May 25, 2022, at the time, place and for the purposes set out in the Notice of Meeting. It is expected that the solicitation will be made primarily by mail. However, officers and employees of the Company may also solicit proxies by telephone, telecopier, e-mail or in person. The total cost of solicitation of proxies will be borne by the Company. Pursuant to National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer ("NI 54-101"), arrangements have been made with clearing agencies, brokerage houses and other financial intermediaries to forward proxy-related materials to certain beneficial owners of the shares. See "Appointment and Revocation of Proxies – Notice to Beneficial Shareholders" below.

Except as otherwise indicated, the information contained herein is given as of April 12, 2022. Although the Company uses the U.S. dollar as its reporting currency, all references to "dollars" and the symbol "\$" in this Circular are to Canadian dollars, unless otherwise indicated.

INTERNET AVAILABILITY OF PROXY-RELATED MATERIALS

Notice-and-Access

The Company has elected to use "notice-and-access" rules ("Notice-and-Access") under NI 54-101 for distribution of Proxy-Related Materials (as defined below) to shareholders who do not hold shares of the Company in their own names (referred to herein as "Beneficial Shareholders") and to shareholders who hold their shares directly in their respective names (referred to herein as "Registered Shareholders"). Notice-and-Access is a set of rules that allows issuers to post electronic versions of proxy-related materials on SEDAR and on one additional website, rather than mailing paper copies. "Proxy-Related Materials" refers to this Circular, the Notice of Meeting and a voting instruction form ("VIF") or a form of proxy, as applicable.

The use of Notice-and-Access is more environmentally friendly as it helps reduce paper use. It also reduces the Company's printing and mailing costs. Shareholders may obtain further information about Notice-and-Access by contacting: (i) for Registered Shareholders and Beneficial Shareholders with a 15-digit Control Number: Computershare Investor Services Inc. toll free at 1-866-964-0492 or on the internet at www.computershare.com/noticeandaccess; or (ii) for Beneficial Shareholders with a 16-digit Control Number: Broadridge Financial Solutions, Inc. toll free at 1-855-887-2244.

Websites Where Proxy-Related Materials are Posted

The Proxy-Related Materials are available on the Company's website at www.dorel.com and under the Company's profile on SEDAR at www.sedar.com.

Notice Package

Although the Proxy-Related Materials have been posted on-line as noted above, Beneficial Shareholders will receive paper copies of a notice package ("Notice Package") via prepaid mail, including the Notice of Meeting, containing information prescribed by NI 54-101 such as the date, time and location of the Meeting and the website addresses where the Proxy-Related Materials are posted, a VIF and a supplemental mail list return card for Beneficial Shareholders to request they be included in the Company's supplementary mailing list for receipt of the Company's interim financial statements for the 2022 fiscal year.

Registered Shareholders will receive copies of the Notice of Meeting and a form of proxy via prepaid mail.

How to Obtain Paper Copies of Proxy-Related Materials

Shareholders may obtain paper copies of this Circular free of charge by contacting: (i) for Registered Shareholders and Beneficial Shareholders with a 15-digit Control Number: Computershare Investor Services Inc. toll free at 1-866-962-0498 (within North America) or 514-982-8716 (outside North America); or (ii) for Beneficial Shareholders with a 16-digit Control Number: Broadridge Financial Solutions, Inc. toll free at 1-877-907-7643. Any request for paper copies which are required in advance of the Meeting should be sent so that the request is received by the Company by 5:00 p.m. (eastern time) on May 5, 2022 in order to allow sufficient time for shareholders to receive their paper copies and to return their VIF or form of proxy, as applicable, by its due date. After the Meeting date, shareholders may obtain paper copies of the Circular free of charge by contacting the Secretary of the Company at 514-934-3034.

APPOINTMENT AND REVOCATION OF PROXIES

Appointment of Proxy

A Registered Shareholder who is unable to attend the Meeting in person is requested to complete and sign the enclosed form of proxy and to deliver it to Computershare Investor Services Inc. (i) by mail or hand delivery to Proxy Department, 100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1, or (ii) by facsimile to 416-263-9524 or 1-866-249-7775. A Registered Shareholder may also vote using the internet at www.investorvote.com or telephone at 1-866-732-8683. In order to be valid and acted upon at the Meeting, the form of proxy must be received no later than 5:00 p.m. (eastern time) on Monday, May 23, 2022 or deposited with the Secretary of the Company before the commencement of the Meeting or any adjournment thereof.

The document appointing a proxy must be in writing and executed by the Registered Shareholder or his attorney authorized in writing or, if the Registered Shareholder is a corporation, under its corporate seal or by an officer or attorney thereof duly authorized.

A Registered Shareholder submitting a form of proxy has the right to appoint a person (who need not be a shareholder) to represent him or her at the Meeting other than the persons designated in the form of proxy furnished by the Company. To exercise that right, the name of the Registered Shareholder's appointee should be legibly printed in the blank space provided. In addition, the Registered Shareholder should notify the appointee of such person's appointment, obtain such person's consent to act as appointee and instruct the appointee on how the Registered Shareholder's shares are to be voted.

Shareholders who are not Registered Shareholders should refer to "Notice to Beneficial Shareholders" below.

Revocation of Proxy

A Registered Shareholder who has submitted a form of proxy as directed hereunder may revoke it at any time prior to the exercise thereof. If a Registered Shareholder who has given a proxy personally attends the Meeting at which that proxy is to be voted, that Registered Shareholder may revoke the proxy and vote in person. In addition to the revocation in any other manner permitted by law, a proxy may be revoked by instrument in writing executed by the Registered Shareholder or his attorney or authorized agent and deposited with (i) Computershare Investor Services Inc. at any time up to 5:00 p.m.

(eastern time) on Monday, May 23, 2022 by mail or by hand delivery to Proxy Department, 100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1, or by facsimile to 416-263-9524 or 1-866-249-7775, or (ii) with the Secretary of the Company on the day of the Meeting before the commencement thereof, or any adjournment thereof, and upon any such deposit, the proxy will be revoked.

Notice to Beneficial Shareholders

The information set out in this section is of importance to many shareholders, as a substantial number of shareholders are Beneficial Shareholders and do not hold shares of the Company in their own names. Beneficial Shareholders should note that only proxies deposited by Registered Shareholders (shareholders whose names appear on the records of the Company as the registered holders of shares) can be recognized and acted upon at the Meeting or any adjournment(s) thereof. If shares are listed in an account statement provided to a shareholder by a broker, then in almost all cases those shares will not be registered in the shareholder's name on the records of the Company. Those shares will more likely be registered under the name of the shareholder's broker or an agent of that broker. In Canada, the vast majority of such shares are registered under the name of CDS & Co. (the registration name for CDS Clearing and Depository Services Inc., which acts as nominee for many Canadian brokerage firms). Shares held by brokers or their nominees can be voted (for or against resolutions or withheld from voting) only upon the instructions of the Beneficial Shareholder. Without specific instructions, the broker/nominees are prohibited from voting shares for their clients. Subject to the following discussion in relation to NOBOs (as defined below), the Company does not know for whose benefit the shares of the Company registered in the name of CDS & Co., a broker or another nominee are held.

There are two categories of Beneficial Shareholders for the purposes of applicable securities regulatory policy in relation to the mechanism of dissemination to Beneficial Shareholders of proxy-related materials and other security holder materials and the request for voting instructions from such Beneficial Shareholders. Non-objecting beneficial owners ("NOBOs") are Beneficial Shareholders who have advised their intermediary (such as brokers or other nominees) that they do not object to their intermediary disclosing ownership information to the Company, consisting of their name, address, e-mail address, securities holdings and preferred language of communication. Securities legislation restricts the use of that information to matters strictly relating to the affairs of the Company. Objecting beneficial owners ("OBOs") are Beneficial Shareholders who have advised their intermediary that they object to their intermediary disclosing such ownership information to the Company.

In accordance with the requirements of NI 54-101, the Company is sending the Notice Package directly to NOBOs and indirectly through intermediaries to OBOs. NI 54-101 permits the Company, in its discretion, to obtain a list of its NOBOs from intermediaries and use such NOBO list for the purpose of distributing the Notice Package directly to, and seeking voting instructions directly from, such NOBOs. As a result, the Company is entitled to deliver the Notice Package to Beneficial Shareholders in two manners: (a) directly to NOBOs and indirectly through intermediaries to OBOs; or (b) indirectly to all Beneficial Shareholders through intermediaries. In accordance with the requirements of NI 54-101, the Company is sending the Notice Package directly to NOBOs and indirectly through intermediaries to OBOs. The cost of the delivery of the Notice Package by intermediaries to OBOs will be borne by the Company.

The Company has used a NOBO list to send the Notice Package directly to NOBOs whose names appear on that list. If the Company's transfer agent, Computershare Investor Services Inc., has sent these materials directly to a NOBO at the request of the Company, such NOBO's name and address and information about its holdings of shares of the Company have been obtained from the intermediary holding such shares on the NOBO's behalf in accordance with applicable securities regulatory requirements. As a result, any NOBO of the Company can expect to receive a VIF from Computershare Investor Services Inc. NOBOs should complete and return the VIF to Computershare Investor Services Inc. in the envelope provided. In addition, telephone voting and internet voting are available; instructions in respect of the procedure for telephone and internet voting can be found in the VIF. Computershare Investor Services Inc. will tabulate the results of VIFs received from NOBOs and will provide appropriate instructions at the Meeting with respect to the shares represented by such VIFs.

Applicable securities regulatory policy requires intermediaries, on receipt of Notice Packages that seek voting instructions from Beneficial Shareholders indirectly, to seek voting instructions from Beneficial Shareholders in advance of shareholders' meetings on Form 54-101F7 (Request for Voting Instructions Made by Intermediary). Every intermediary/broker has its own mailing procedures and provides its own return instructions, which should be carefully followed by Beneficial Shareholders in order to ensure that their shares are voted at the Meeting or any adjournment(s) thereof. Often, the form of request for voting instructions supplied to a Beneficial Shareholder by its broker is identical to the form of proxy provided to Registered Shareholders; however, its purpose is limited to instructing the Registered Shareholder how to vote on behalf of the Beneficial Shareholder. Beneficial Shareholders who wish to appear in person and vote at the Meeting should be appointed as their own representatives at the Meeting in accordance with the directions of their intermediaries and Form 54-101F7. Beneficial

Shareholders can also write the name of someone else whom they wish to appoint to attend the Meeting and vote on their behalf. Unless prohibited by law, the person whose name is written in the space provided in Form 54-101F7 will have full authority to present matters to the Meeting and vote on all matters that are presented at the Meeting, even if those matters are not set out in Form 54-101F7 or the Circular.

The majority of brokers now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions, Inc. ("Broadridge"). In forwarding the Notice Package to Beneficial Shareholders, Broadridge typically includes a VIF in lieu of the form of proxy that some intermediaries employ. Beneficial Shareholders are requested to complete and return the VIF to Broadridge by mail or facsimile. Alternatively, Beneficial Shareholders can call a toll-free telephone number to vote the shares held by them or access Broadridge's dedicated voting website at https://central-online.proxyvote.com to deliver their voting instructions. Broadridge will then provide aggregate voting instructions to the Company's transfer agent and registrar, which tabulates the results and provides appropriate instructions respecting the voting of shares to be represented at the Meeting or any adjournment(s) thereof.

EXERCISE OF DISCRETION BY PROXIES

Shares represented by properly-executed proxies in favour of the persons designated in the enclosed form of proxy, in the absence of any direction to the contrary, will be voted FOR the: (i) election of directors, (ii) appointment of auditors, (iii) resolution approving an amendment to the 2004 Directors' Deferred Share Unit Plan of the Company, and (iv) resolution approving an amendment to the 2009 Executive Deferred Share Unit Plan of the Company, as stated under such headings in this Circular. Instructions with respect to voting will be respected by the persons designated in the enclosed form of proxy. With respect to amendments or variations to matters identified in the Notice of Meeting and with respect to other matters that may properly come before the Meeting, such shares will be voted by the persons so designated in their discretion. As of the date hereof, management of the Company knows of no such amendments, variations or other matters to come before the Meeting.

VOTING SHARES

As at April 12, 2022, there were 4,149,365 Class A Multiple Voting Shares and 28,367,188 Class B Subordinate Voting Shares of the Company issued and outstanding. Each Class A Multiple Voting Share entitles the holder thereof to ten votes while each Class B Subordinate Voting Share entitles the holder thereof to one vote. The Company has fixed April 12, 2022 as the record date (the "Record Date") for the purpose of determining shareholders entitled to receive notice of the Meeting. Any registered shareholder of record as at the close of business on the Record Date will be entitled to vote at the Meeting.

The Company's Class B Subordinate Voting Shares are restricted securities in that the Company's Class A Multiple Voting Shares carry a greater vote per security than the Class B Subordinate Voting Shares. As set out above, the Class A Multiple Voting Shares entitle the holders thereof to ten votes per share while the Class B Subordinate Voting Shares entitle the holders thereof to one vote per share at meetings of shareholders of the Company, subject to the condition that the Class B Subordinate Voting Shares entitle the holders thereof to ten votes per share on any vote in respect of the liquidation, dissolution or windingup of the Company or the sale, lease or exchange of all or substantially all of its property. In the aggregate, all of the voting rights associated with the Class B Subordinate Voting Shares represented, as at April 12, 2022, 40.6% of the voting rights attached to all of the Company's issued and outstanding voting securities.

Only shareholders of record as at the close of business on the Record Date will receive notice of, and be entitled to attend and vote at, the Meeting. A shareholder of record on the Record Date will be entitled to vote those shares included in the list of shareholders entitled to vote at the Meeting prepared as at the Record Date, even though the shareholder may subsequently dispose of his or her shares. No shareholder who has become a shareholder after the Record Date will be entitled to attend or vote at the Meeting or any adjournment(s) thereof.

Take-over Bid Protection

In the event that an offer is made to purchase Class A Multiple Voting Shares and constitutes a "take-over bid" within the meaning of applicable securities legislation, each Class B Subordinate Voting Share will become convertible at the option of the holder, at any time while such offer is in effect, into one Class A Multiple Voting Share. The conversion right may be exercised only for the purpose of depositing the resulting Class A Multiple Voting Shares in response to the offer and the transfer agent and registrar of the Company will deposit the resulting Class A Multiple Voting Shares on behalf of the shareholder. No share certificates representing Class A Multiple Voting Shares will be delivered to the shareholder in such circumstances.

If: (i) Class A Multiple Voting Shares resulting from the conversion and deposited pursuant to the offer are subsequently withdrawn by the shareholder or are not taken up by the offeror; or (ii) the offer is abandoned or withdrawn by the offeror, the Class A Multiple Voting Shares will be re-converted into Class B Subordinate Voting Shares and a share certificate representing the Class B Subordinate Voting Shares will be sent to the shareholder by the transfer agent and registrar of the Company. All Class A Multiple Voting Shares resulting from the conversion which are taken up and paid for by the offeror will be deemed to be re-converted into Class B Subordinate Voting Shares at the time the offeror is required under the relevant securities legislation to take up and pay for such shares.

In the event that the offeror takes up and pays for the Class A Multiple Voting Shares resulting from conversion, the transfer agent and registrar of the Company will deliver to the holders thereof the consideration paid for such shares by the offeror.

In light of the foregoing, there will be no right to convert the Class B Subordinate Voting Shares into Class A Multiple Voting Shares in the following cases:

• (a) the offer to purchase Class A Multiple Voting Shares is not required under applicable securities legislation or the rules of a stock exchange on which the Class A Multiple Voting Shares are then listed to be made to all or substantially all holders of Class A Multiple Voting Shares who are in a province of Canada to which the legislation applies, that is, the offer is an "exempt take-over bid" within the meaning of the foregoing securities legislation or stock exchange rules;
• (b) an offer to purchase Class B Subordinate Voting Shares is made concurrently with the offer to purchase Class A Multiple Voting Shares and the two offers are identical with respect to price per share, percentage of outstanding shares for which the offer is made and in all other material respects. The offer to purchase the Class B Subordinate Voting Shares must be unconditional, subject to the exception that the offer for the Class B Subordinate Voting Shares may contain a condition to the effect that the offeror not be required to take up and pay for Class B Subordinate Voting Shares tendered in response to the offer if no shares are purchased pursuant to the contemporaneous offer for the Class A Multiple Voting Shares; or
• (c) holders of Class A Multiple Voting Shares representing, in the aggregate, more than 50% of the then-outstanding Class A Multiple Voting Shares (excluding shares owned immediately prior to the offer by the offeror and any "joint actor", as defined in the relevant securities legislation) certify to the transfer agent and registrar and to the Secretary of the Company that they will not tender any shares in response to the offer for the Class A Multiple Voting Shares.

PRINCIPAL SHAREHOLDERS

As at April 12, 2022, to the best knowledge of the Company, the following entity beneficially owned, or exercised control or direction over, directly or indirectly, more than 10% of the Class A Multiple Voting Shares of the Company:

Name and place of residence	Number of shares held	Percentage of class
Schwartz Segel G.P. (1) Westmount, Québec, Canada	3,999,960	96.4%

⁽¹⁾ Schwartz Segel G.P. is a partnership indirectly controlled in the aggregate by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel, each of whom is an executive officer and a director of the Company. The registered owner of the Class A Multiple Voting Shares is 12668521 Canada Inc., which also holds 2,055,139 Class B Subordinate Voting Shares. 12668521 Canada Inc. is wholly owned by Schwartz Segel G.P.

As at April 12, 2022, to the best knowledge of the Company, the following persons beneficially owned, directly or indirectly, or exercised control or direction over, more than 10% of the Class B Subordinate Voting Shares of the Company:

Name and place of residence	Number of shares held	Percentage of class
Brandes Investment Partners, L.P.(1) La Jolla, California, U.S.A.	4,234,785	14.93%
Letko, Brosseau & Associates Inc.(2) Montréal, Québec, Canada	3,667,881	12.93%

(1) The information is taken from an "alternative monthly report" filed on SEDAR by Brandes Investment Partners, L.P. on March 7, 2022. As disclosed in such report, Brandes Investment Partners has control but not ownership of these shares and acquired the shares in the ordinary course of its business of investing for and on behalf of investment advisory clients and not for the purpose of changing or influencing the control of the Company

(2) This information is taken from an "alternative monthly report" filed on SEDAR by Letko, Brosseau & Associates Inc. on July 8, 2021. As disclosed in such report, Letko, Brosseau & Associates Inc. maintains exclusive power to exercise investment control or direction over these shares, which are owned by accounts it manages, and which were acquired in the ordinary course of business, for investment purposes only and not for the purpose of exercising control or direction over the Company.

BUSINESS TO BE TRANSACTED AT THE MEETING

This Circular contains information relating to the receipt of the Company's audited consolidated financial statements, the election of directors, the appointment of auditors, and the approval by shareholders of amendments to the 2004 Directors' Deferred Share Unit Plan and 2009 Executive Deferred Share Unit Plan, respectively.

1. Financial Statements

The audited consolidated financial statements of the Company for the fiscal year ended December 30, 2021 and the report of the auditors thereon will be tabled at the Meeting. These audited consolidated financial statements form part of the 2021 Annual Report of the Company. Copies of the 2021 Annual Report may be obtained from the Secretary of the Company upon request and will be available at the Meeting.

2. Election of Directors

At the annual meeting held on May 26, 2021, shareholders elected ten directors to the Board of Directors of the Company. Dian Cohen, who served as a director of the Company since 2004, resigned from the Board of Directors on February 10, 2022. At the Meeting, shareholders will be asked to vote for the election of nine directors. The persons named in the enclosed form of proxy intend to vote for the election of the nine nominees whose names are set out below. All nominees are currently directors of the Company. Voting for directors will be made on an individual basis. Each director will hold office until the next annual meeting of shareholders or until the election of his or her successor, unless the director resigns or the office becomes vacant by removal, death or other cause.

The following table sets out the name, age and province of residence of each of the nine persons proposed to be nominated for election as director, all other positions and offices with the Company now held by such person, his or her principal occupation, the year in which such person became a director of the Company, the number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares of the Company that such person has advised are beneficially owned or over which control or direction is exercised, directly or indirectly, by such person as at the date indicated below, the number of Class B Subordinate Voting Shares in respect of which each such person holds options, the number of deferred share units ("DSUs") held and the total value of shares and DSUs. The table also sets out membership of the directors on the four committees of the Board of Directors, namely, the Audit Committee, Human Resources and Compensation Committee (the "HRCC"), Corporate Governance and Nominating Committee (the "CGNC") and Disclosure Committee. Other than as may be set out below, each director has held his or her principal occupation for the last five years.

				As at April 12, 2022
Name, province of residence, age and	First year as	Position(s) on		Number of shares beneficially owned or over which control is exercised	Number of Class B shares subject to	Number of	Total value of shares and DSUs(5)
principal occupation	director	the Board	Class A	Class B	option	DSUs held	(\$)
Martin Schwartz Québec, Canada Age: 73 President and Chief	1987	Director, Member of the Disclosure	—(1)	—(1)	—	158,096(3)	1,482,940
Executive Officer of the Company		Committee

Martin Schwartz is a co-founder of Ridgewood Industries Ltd., which was merged with several associated companies to create the Company, which subsequently went public in 1987. Originally Executive Vice-President of the Company, Mr. Schwartz has held the position of President and Chief Executive Officer since 1992.

Jeff Segel	1987	Director	—(2)	5,000(2)	—	208,572(3)	2,003,305
Québec, Canada Age: 71
Executive Vice-President, Sales
and Marketing of the
Company

Jeff Segel is a co-founder of Ridgewood Industries Ltd. Mr. Segel held the position of Vice-President, Sales and Marketing of the Company from 1987 to 2003. In 2003, Mr. Segel's title was changed to Executive Vice-President, Sales and Marketing.

Alan Schwartz Québec, Canada Age: 70 Executive Vice-President,	1987	Director	—(2)	200,000(2)	—	8,157(3)	1,952,513
Operations of the Company

Alan Schwartz is a co-founder of Ridgewood Industries Ltd. Mr. Schwartz held the position of Vice-President, Operations of the Company from 1989 to 2003. In 2003, Mr. Schwartz's title was changed to Executive Vice-President, Operations.

	Jeffrey Schwartz Ontario, Canada Age: 59 Executive Vice-President, Chief Financial Officer and Secretary of the Company	1987	Director, Member of the Disclosure Committee	—(1)	—(1)	—	202,353(3)	1,898,071
--	----------------------------------------------------------------------------------------------------------------------------------------------	------	----------------------------------------------------------	------	------	---	------------	-----------

Jeffrey Schwartz, previously Vice-President of the Juvenile Division of the Company, was the Company's Vice-President, Finance from 1989 to 2003. In 2003, his title was changed to Executive Vice-President, Chief Financial Officer and Secretary. Mr. Schwartz is a graduate of McGill University in Montréal, Québec, in the field of business administration.

				As at April 12, 2022
Name, province of residence, age and	First year as	Position(s) on		Number of shares beneficially owned or over which control is exercised	Number of Class B shares subject to	Number of	Total value of shares and DSUs(5)
principal occupation	director	the Board	Class A	Class B	option	DSUs held	(\$)
Alain Benedetti, FCPA, FCA, ICD.D Québec, Canada Age: 73	2004	Director, Member of the Audit Committee,	—	—	—	80,602(4)	756,047
Corporate Director		CGNC and
		HRCC

Alain Benedetti, FCPA, FCA, ICD.D, is the retired Vice-Chairman of Ernst & Young LLP, where he worked for 34 years, most recently as the Canadian area managing partner, overseeing all Canadian operations. Prior thereto, he was the managing partner for eastern Canada and the Montréal office. Mr. Benedetti has extensive experience with both public and private companies having served on numerous public company Boards. A former Chair of the Canadian Institute of Chartered Accountants, Mr. Benedetti has served on the Audit Committee of the Company since 2004 and was its Chair from 2005 to April 1, 2021.

Brad A. Johnson, CPA Massachusetts, U.S.A.	2019	Director, Member of	—	—	—	29,282(4)	274,665
Age: 60		the Audit
Lecturer at Babson		Committee,
College		CGNC and
		HRCC

Brad A. Johnson is currently a Lecturer at Babson College, a private business school in Wellesley, Massachusetts. He has extensive experience in e-commerce and business operations, including Vice President Operations at Wayfair, an online furniture retailer, and Chief Operating Officer of Intrepid Learning Solutions. He is a strategic advisor to Foundry Brands, Stitch Fix, Formio Sequoyah and several other organizations. Mr. Johnson holds an MBA degree from the Darden School of Business of the University of Virginia, a BBA degree from St. Bonaventure University, Allegany, New York, and a CPA designation from the State of New York.

Sharon Ranson, FCPA,	2019	Director,	—	—	—	27,372(4)	256,749
FCA, ICD.D		Chair of the
Québec, Canada		Audit
Age: 64		Committee
President and Founder of
The Ranson Group Inc.

Sharon Ranson is an experienced corporate director with in-depth financial expertise in accounting, capital markets and investments. She has provided strategic oversight to numerous Boards and Advisory Committees, and has chaired various Board committees including audit, governance, risk, human resources and compensation. Among her current mandates are Sprott Inc., IBI Group, Fire & Flower Holdings Corp., and ICPEI Holdings Inc.. Ms. Ranson is also President and Founder of The Ranson Group Inc., a company offering coaching and leadership work with senior executives. She has extensive experience in the Financial Services industry as a top-ranked Financial Services Analyst and Portfolio Manager. Ms. Ranson is an FCPA, FCA and holds the ICD.D designation. She graduated from Queen's University in Kingston, Ontario with a Bachelor of Commerce degree and holds an MBA degree from York University, Toronto, Ontario.

First				Number of Class B shares		Total value of shares and DSUs(5)
director	the Board	Class A	Class B	option	DSUs held	(\$)
2018	Co Chairperson of the Board, Director, Chair of the	—	2,200	—	52,421(4)	512,345
	year as	Position(s) on CGNC		Number of shares beneficially owned or over which control is exercised	As at April 12, 2022 subject to	Number of

Norman M. Steinberg is Vice-Chair of BFL Canada, where he also sits on the Board of Directors and chairs the Governance Committee. From April 2017 to July 2019, Mr. Steinberg was Chair Emeritus of Norton Rose Fulbright Canada. Previously, Mr. Steinberg was Co-Chair and then Chair of Norton Rose Fulbright and its predecessor firm, Ogilvy Renault. He was also Global Chair of Norton Rose. At Norton Rose Fulbright and its predecessor firms, Mr. Steinberg focused on mergers and acquisitions, corporate finance, privatization and corporate governance. Mr. Steinberg is also a member of the Board of Directors of Fiera Capital Corporation and chairs the Nominating and Governance Committee, member of the Board of Directors of Atco, Senior Advisor to Persistence Capital Partners, Chair of the Board of Governors of the Montreal Symphony Orchestra, Chair of The McGill University Hospital Centre Foundation, Co-Chair of Women in Governance, member of the Board of Directors and Organizing Committee of The Australia-Canada Economic Leadership Forum, Strategic Advisor of Voyager Metals Inc. and member of the Board of Advisors of Alexa Translations. Mr. Steinberg holds B.Sc. and B.C.L. degrees from McGill University in Montréal, Québec.

Maurice Tousson	1995	Co	1,301	—	—	103,378(4)	982,046
Ontario, Canada		Chairperson
Age: 73		of the Board,
Corporate Director		Chair of the
		HRCC

Maurice Tousson is the former President and Chief Executive Officer of CDREM Group Inc., a chain of retail stores known as Centre du Rasoir or Personal Edge. Mr. Tousson has held senior executive positions at some of Canada's well-known retailers including Chateau Stores of Canada, Consumers Distributing and Sports Experts. He was Chairman of the Board of Directors of DAVIDsTEA Inc. until June 14, 2018. Mr. Tousson holds an MBA degree from Long Island University in New York.

To the knowledge of the Company, none of the foregoing nominees for election as a director of the Company is or within the last ten years has been a director, chief executive officer or chief financial officer of any company that:

• (a) was subject to a cease trade or similar order, or an order that denied such company access to any exemption under applicable securities legislation that was in effect for a period of more than 30 consecutive days (an "Order") that was issued while the proposed director was acting in the capacity as director, chief executive officer or chief financial officer of such company; or
• (b) was subject to an Order that was issued after the proposed director ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer of such company.

To the knowledge of the Company, none of the foregoing nominees for election as a director of the Company:

(a) is, or has been within the last ten years, a director or executive officer of any company that, while the proposed director was acting in that capacity, or within a year of that person ceasing to act in that capacity, became

⁽¹⁾ Martin Schwartz and Jeffrey Schwartz do not directly own any voting securities of the Company. For details regarding their beneficial ownership of, or control or direction over, voting securities of the Company, see "Principal Shareholders" above.

⁽²⁾ Neither Alan Schwartz nor Jeff Segel directly owns any Class A Multiple Voting Shares. For details regarding their beneficial ownership of, or control or direction over, voting securities of the Company, see "Principal Shareholders" above.

⁽³⁾ The DSUs were issued under the 2009 Executive Deferred Share Unit Plan.

⁽⁴⁾ The DSUs were issued under the 2004 Directors' Deferred Share Unit Plan.

⁽⁵⁾ The total value of shares and DSUs is determined by multiplying the number of Class A Multiple Voting Shares by the closing price (\$9.50) on the Toronto Stock Exchange ("TSX") of the Class A Multiple Voting Shares, the number of Class B Subordinate Voting Shares by the closing price (\$9.38) on the TSX of the Class B Subordinate Voting Shares, and the number of DSUs by the closing price (\$9.38) on the TSX of the Class B Subordinate Voting Shares, in each case as at April 12, 2022, and adding the three products.

bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

(b) has within the last ten years become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or become subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold his or her assets.

Furthermore, to the knowledge of the Company, none of the nominees for election as a director of the Company has been subject to: (a) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or (b) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable security holder in deciding whether to vote for a proposed director.

Majority Voting for Directors

In March 2013, the Board of Directors adopted a majority-voting policy. Under this policy, in an uncontested election of directors, any nominee proposed for election as a director who receives a greater number of "withheld" votes than "for" votes is expected promptly following the date of the shareholders' meeting at which the election occurred to tender his or her resignation to the President and Chief Executive Officer for consideration by the CGNC, with the resignation to take effect upon acceptance by the Board of Directors. This policy applies only to "uncontested elections", that is, elections where the number of nominees for director is equal to the number of directors to be elected.

The Board of Directors will act on the CGNC's recommendation within 90 days following the date of the shareholders' meeting at which the election occurred. Following the Board of Directors' decision on the CGNC's recommendation, the Board of Directors will promptly disclose, by way of a press release, the Board of Directors' decision whether or not to accept the director's offer of resignation, together with an explanation of the process by which the decision was made and, if applicable, the Board of Directors' reason or reasons for rejecting the tendered resignation.

The CGNC will be expected to accept the resignation except in situations where extenuating circumstances would warrant that the director continue to serve on the Board of Directors. In considering whether or not to accept a resignation, the CGNC will consider all factors deemed relevant by the CGNC, including the stated reasons why shareholders "withheld" votes from the election of that nominee, the length of service and the qualifications of the director whose resignation has been tendered (including, for example, the impact the director's resignation would have on the Company's compliance with the requirements of applicable corporate and securities laws and the rules of any stock exchange on which the Company's securities are listed or posted for trading), such director's contributions to the Company, and whether the director's resignation from the Board of Directors would be in the best interests of the Company.

The CGNC will also consider a range of possible alternatives concerning the director's tendered resignation as the CGNC deems appropriate, including acceptance of the resignation, rejection of the resignation, or rejection of the resignation coupled with a commitment to seek to address and cure the underlying reasons reasonably believed by the CGNC to have substantially resulted in the "withheld" votes. A director who tenders his or her resignation will not participate in any meetings to consider whether the resignation will be accepted.

Shareholders should note that, as a result of the majority-voting policy, a ''withhold'' vote is effectively the same as a vote against a director nominee in an uncontested election.

Election of Directors - 2021

At the annual meeting of shareholders of the Company held on May 26, 2021, all ten candidates proposed as directors were duly elected to the Board of Directors of the Company by a majority of the votes cast by shareholders present or represented by proxy at such meeting, as follows:

Name of Nominee	Votes for	%	Votes Withheld	%
Martin Schwartz	54,459,179	94.75	3,020,104	5.25
Alan Schwartz	54,275,351	94.43	3,203,932	5.57
Jeffrey Schwartz	53,607,329	93.26	3,871,954	6.74
Jeff Segel	54,286,236	94.44	3,193,047	5.56
Alain Benedetti	54,365,650	94.58	3,113,633	5.42
Dian Cohen (1)	54,381,629	94.61	3,097,654	5.39
Brad A. Johnson	54,689,982	95.15	2,789,301	4.85
Sharon Ranson	54,526,741	94.86	2,952,542	5.14
Norman M. Steinberg	54,278,685	94.43	3,200,598	5.57
Maurice Tousson	54,393,791	94.63	3,085,492	5.37

____________________ (1) Dian Cohen resigned from the Board of Directors on February 10, 2022.

3. Appointment of Auditors

Except where authorization to vote with respect to the appointment of auditors is withheld, the persons named in the accompanying form of proxy intend to vote FOR the appointment of KPMG LLP, Chartered Professional Accountants, as the auditors of the Company until the next annual meeting of shareholders and to authorize the directors to fix their remuneration.

4. Amendment to the 2004 Directors' Deferred Share Unit Plan

In April 2004, the Board of Directors adopted and implemented the 2004 Directors' Deferred Share Unit Plan (the "DSU Plan") for the Company's external directors. The DSU Plan was ratified by shareholders at the Company's annual and special meeting held on May 18, 2005. The purpose of the DSU Plan is to assist the Company in attracting, retaining and motivating qualified individuals to serve as members of the Board of Directors of the Company and to promote a greater alignment of interests between the external directors and the shareholders of the Company. At an annual and special meeting held on May 26, 2016, shareholders approved two amendments to the DSU Plan, amending the amendment provisions of the DSU Plan and increasing from 175,000 to 350,000 the maximum number of Class B Subordinate Voting Shares issuable from treasury under the DSU Plan. The 350,000 Class B Subordinate Voting Shares issuable from treasury under the DSU Plan represent 1.2% of the issued and outstanding Class B Subordinate Voting Shares. The material terms of the DSU Plan are described below under "Compensation of Directors – DSU Plan".

As at the date hereof, a total of 102,280 Class B Subordinate Voting Shares have been issued and a total of 138,077 DSUs have been granted and are outstanding under the DSU Plan. Further, in connection with a special dividend paid by the Company on February 1, 2022, an aggregate of 154,978 DSUs were credited to the accounts of the Company's external directors as "dividend equivalents" in accordance with the DSU Plan. The total of 395,335 Class B Subordinate Voting Shares issued and DSUs granted or credited represents 1.4% of the issued and outstanding Class B Subordinate Voting Shares. However, the total of 395,335 Class B Subordinate Voting Shares issued and DSUs granted or credited exceeds the maximum of 350,000 Class B Subordinate Voting Shares issuable under the DSU Plan.

Accordingly, on March 10, 2022, the Board of Directors adopted an amendment to the DSU Plan so as to increase by 400,000 the number of Class B Subordinate Voting Shares which are available for issuance from treasury under the DSU Plan, from 350,000 to 750,000 Class B Subordinate Voting Shares. The 750,000 Class B Subordinate Voting Shares represent 2.6% of the issued and outstanding Class B Subordinate Voting Shares and 2.3% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares.

The Board of Directors believes that granting DSUs is an effective approach for meeting compensation objectives while conserving the Company's cash. In addition, the Board of Directors considers that an increase of 400,000 in the number of Class B Subordinate Voting Shares reserved for issuance from treasury under the DSU Plan is required in order to enable the Company to meet future director compensation needs in the event that members of the Board of Directors elect to receive all of their compensation in the form of DSUs and the Company elects to redeem such DSUs through an issuance of treasury

shares. The Board of Directors further believes that an increase of 400,000 in the number of Class B Subordinate Voting Shares reserved for issuance from treasury under the DSU Plan is reasonable and appropriate.

The foregoing amendment to the DSU Plan has been approved by the TSX, subject to approval by a simple majority of the votes cast by the holders of the Class A Multiple Voting Shares and Class B Subordinate Voting Shares, either present in person or represented by proxy at the Meeting. The text of the resolution with respect to the amendment to the DSU Plan is annexed as Schedule B to this Circular.

5. Amendment to the 2009 Executive Deferred Share Unit Plan

In 2009, the Board of Directors adopted and implemented the 2009 Executive Deferred Share Unit Plan (the "EDSU Plan") for the Company's executives. The EDSU Plan was ratified by shareholders at the Company's annual and special meeting held on May 27, 2009. The EDSU Plan was amended and restated effective January 1, 2016, and amended on December 21, 2021 and again on March 10, 2022. The purpose of the EDSU Plan is to assist the Company in attracting, retaining and motivating executives from various countries, to promote a greater alignment of interests between the executives and shareholders of the Company, and to ensure that the executives participating in the Plan attain certain share ownership levels as required by the Company. Prior to the amendment adopted on March 10, 2022 described below, a maximum of 750,000 Class B Subordinate Voting Shares were issuable from treasury under the EDSU Plan, representing 2.6% of the issued and outstanding Class B Subordinate Voting Shares. The material terms of the EDSU Plan are described below under "Executive Compensation".

As at the date hereof, a total of 112,661 Class B Subordinate Voting Shares have been issued and a total of 377,730 DSUs have been granted and are outstanding under the EDSU Plan. Further, in connection with the special dividend paid by the Company on February 1, 2022, an aggregate of 405,920 DSUs were credited to the accounts of the Company's executives as "dividend equivalents" in accordance with the EDSU Plan. The total of 896,311 Class B Subordinate Voting Shares issued and DSUs granted or credited represents 3.2% of the issued and outstanding Class B Subordinate Voting Shares. However, the total of 896,311 Class B Subordinate Voting Shares issued and DSUs granted or credited exceeds the maximum of 750,000 Class B Subordinate Voting Shares issuable under the EDSU Plan.

Accordingly, on March 10, 2022, the Board of Directors adopted an amendment to the EDSU Plan so as to increase by 1,000,000 the number of Class B Subordinate Voting Shares which are available for issuance from treasury under the EDSU Plan, from 750,000 to 1,750,000 Class B Subordinate Voting Shares. The 1,750,000 Class B Subordinate Voting Shares represent 6.2% of the issued and outstanding Class B Subordinate Voting Shares and 5.4% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares.

The Board of Directors believes that granting DSUs is an effective approach for meeting compensation objectives while conserving the Company's cash. In addition, the Board of Directors considers that an increase of 1,000,000 in the number of Class B Subordinate Voting Shares reserved for issuance from treasury under the EDSU Plan is required in order to enable the Company to meet future executive compensation needs. The Board of Directors further believes that an increase of 1,000,000 in the number of Class B Subordinate Voting Shares reserved for issuance from treasury under the EDSU Plan is reasonable and appropriate.

The foregoing amendment to the EDSU Plan has been approved by the TSX, subject to approval by a simple majority of the votes cast by the holders of the Class A Multiple Voting Shares and Class B Subordinate Voting Shares, either present in person or represented by proxy at the Meeting. The text of the resolution with respect to the amendment to the EDSU Plan is annexed as Schedule C to this Circular.

COMPENSATION OF DIRECTORS

In designing a compensation program for non-management directors, the objective is to ensure that the Company attracts and retains highly-qualified, committed and talented members, with an extensive level of experience as well as to align interests of directors with those of the Company's shareholders.

The CGNC reviews on an annual basis the compensation of the independent directors of the Company and recommends to the Board of Directors the level of compensation and any adjustments necessary to take into account the level of work and the responsibilities of the members of the Board of Directors and its committees.

Summary Compensation Table

The following table sets out information for the fiscal year ended December 30, 2021 regarding the compensation paid or earned by the independent directors of the Company, excluding dividend equivalents payable under the DSU Plan:

Name	Fees earned(1) (\$)	Share-based awards(2) (\$)	Option-based awards(3) (\$)	Non-equity incentive plan compensation (\$)	Pension value(4) (\$)	All other compensation (\$)	Total (\$)
Alain Benedetti	177,917	—	—	—	—	—	177,917
Cohen(5) Dian	167,500	—	—	—	—	—	167,500
Brad A. Johnson	167,500	—	—	—	—	—	167,500
Sharon Ranson	182,083	—	—	—	—	—	182,083
Norman M. Steinberg	197,917	—	—	—	—	—	197,917
Maurice Tousson	217,500	—	—	—	—	—	217,500

____________________ (1) This amount consists of the cash portion of the fees earned by the members of the Board of Directors. Each year, the directors must elect to receive their fees earned either in the form of DSUs issued under the DSU Plan, in cash, or a combination thereof (see below for discussion). The portion, if any, paid in DSUs is reported under the column "Share-based awards".

(2) This amount consists of the value of the fees, if any, earned in the form of DSUs elected by the directors under the DSU Plan (see below for discussion).

(3) The Company did not grant any option-based awards to its independent directors during the fiscal year ended December 30, 2021.

(4) The Company does not have a retirement plan or a retirement policy for members of the Board of Directors.

(5) Dian Cohen resigned from the Board of Directors on February 10, 2022.

Fees Earned

Members of the Board of Directors who are not employees or officers of the Company receive an annual fee for serving as directors as well certain additional fees, and are reimbursed for their travel and out-of-pocket expenses. In 2021, the Company paid the following directors' fees:

• annual director's fee: \$175,000;
• additional annual Co-Chair Director Fee: \$35,000;
• Audit Committee Chair fee: \$25,000;
• HRCC Chair fee: \$15,000; and
• CGNC Chair fee: \$10,000.

The following table sets out fees paid or earned by the independent directors during the fiscal year ended December 30, 2021, excluding dividend equivalents payable under the DSU Plan:

Annual director's fee (\$)	Other fees (\$)	Total fees (\$)
167,500	10,417	177,917
167,500	—	165,000
167,500	—	165,000
167,500	14,583	182,083
187,917	10,000	197,917
202,500	15,000	217,500

(1) Dian Cohen resigned from the Board of Directors on February 10, 2022.

Directors' Shareholding Requirements

The Board of Directors has determined that each director should hold a number of shares of the Company at least equivalent in value to four years of directors' annual fees. The purpose of this share ownership requirement is to promote greater alignment of interests between the Company's directors and shareholders. The minimum share ownership threshold must be reached within seven years of initial election or appointment to the Board of Directors. All of the members of the Board of Directors who have been directors for at least seven years currently comply with the minimum share ownership requirement.

The following table sets out information as at December 30, 2021 on the number and value of the Class A Multiple Voting Shares, Class B Subordinate Voting Shares and/or DSUs held by the independent directors of the Company:

Name	Number of Class A Shares	Number of Class B Shares	Total Value of Shares(1) (\$)	Number of DSUs	Total Value of DSUs(2) (\$)	Total Number of Shares and DSUs	Total Value of Shares and DSUs (\$)	Share Ownership Threshold Met(3)
Alain Benedetti	—	—	—	36,669	730,813	36,669	730,813	yes
Cohen(6) Dian	—	500	9,965	31,952	636,803	32,452	646,768	yes
Brad A. Johnson	—	—	—	11,293	225,069	11,293	225,069	no(4)
Sharon Ranson	—	—	—	11,293	225,069	11,293	225,069	no(4)
Norman M. Steinberg	—	2,200	43,846	23,849	475,311	26,049	519,157	no(5)
Maurice Tousson	1,301	—	25,708	46,248	921,723	47,549	947,431	yes

(1) The Total Value of Shares is determined by multiplying the number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares held at fiscal year-end (December 30, 2021) by, respectively, the closing price (\$19.76) of the Class A Multiple Voting Shares and the closing price (\$19.93) of the Class B Subordinate Voting Shares on the TSX on December 30, 2021, and adding the two products.

(2) The Total Value of DSUs is determined by multiplying the number of DSUs held at fiscal year-end (December 30, 2021) by the closing price (\$19.93) of the Class B Subordinate Voting Shares on the TSX on December 30, 2021.

(3) To assess whether the Share Ownership Threshold has been met, the Total Value of Shares and DSUs is deemed to be the greater of: (i) the Total Value arrived at by multiplying the number of DSUs credited to the independent director's account by the fair market value of the shares, plus the fair market value of shares owned by the director; and (ii) the annual director's fees converted into DSUs under the Plan at a particular date plus the cost to the director of shares owned.

(4) Brad A. Johnson and Sharon Ranson were appointed as directors on June 20, 2019 and consequently have until June 20, 2026 to meet the minimum share ownership requirement.

(5) Norman M. Steinberg was appointed as a director on July 9, 2018 and consequently has until July 9, 2025 to meet the minimum share ownership requirement.

(6) Dian Cohen resigned from the Board of Directors on February 10, 2022.

DSU Plan

To facilitate the acquisition of the minimum number of shares, the Board of Directors established the DSU Plan for the Company's independent directors. Under the DSU Plan, an independent director may elect annually to have his or her director's

fees paid in the form of DSUs. A participant in the DSU Plan may also receive dividend equivalents. The number of DSUs received by a director is determined by dividing the amount of the fees to be paid in the form of DSUs on that date or dividends to be paid on a payment date (the "Award Date"), as the case may be, by the fair market value of the Class B Subordinate Voting Shares on the Award Date. The Award Date is generally the last business day of each quarter of the Company's fiscal year in the case of fees and the date on which the dividends are payable in the case of dividends. The fair market value of the Class B Subordinate Voting Shares is equal to their average closing price on the TSX for the five trading days immediately preceding the Award Date. In the event that the TSX institutes "due bill trading" with respect to any dividend declared by the Company on the Class B Subordinate Voting Shares, the fair market value of the Class B Subordinate Voting Shares shall be equal to the weighted average trading price of the Class B Subordinate Voting Shares for the five trading days commencing with the first trading day after the dividend payment date. DSUs are credited to an account maintained for each director by the Company.

Under the DSU Plan, upon the end of a director's service with the Company, the director will receive either:

• (a) a cash amount equal to the number of DSUs in the director's account multiplied by the fair market value of the Class B Subordinate Voting Shares on the date on which a notice of redemption is filed with the Company by the director. The fair market value of the Class B Subordinate Voting Shares will be equal to their average closing price for the five trading days preceding the redemption date;
• (b) a number of Class B Subordinate Voting Shares equal to the number of DSUs in the director's account. Such Class B Subordinate Voting Shares will be purchased by the Company on the TSX or issued from treasury; or
• (c) a combination of cash and Class B Subordinate Voting Shares.

In the event of the death of a participant, provided that a notice of redemption is not filed with the Secretary of the Company in accordance with the terms of the DSU Plan, the Company will make a payment in cash, Class B Subordinate Voting Shares, or a combination thereof, as elected by the Board of Directors and calculated in accordance with the terms of the DSU Plan, within 15 days of the participant's death, in each case to or for the benefit of the beneficiary of the participant.

Subject to applicable law, a participant may designate in writing a person who is a dependent or relation as a beneficiary to receive any amount payable under the DSU Plan on the death of such participant, and may change such designation from time to time. Such designation must be in such form and executed and filed in such manner as the Board of Directors may from time to time determine. If no beneficiary is designated, the participant's legal representative will receive any amount payable under the DSU Plan.

The mode of payment to a participant will be determined by the Board of Directors in its discretion. All payments will be made net of applicable taxes. No financial assistance is provided by the Company to the independent directors in connection with the DSU Plan.

The rights or interests of participants under the DSU Plan, including DSUs, are not assignable or transferable otherwise than in case of death as set out in the DSU Plan, and such rights or interests cannot be encumbered by any means. Any attempt to assign, transfer or encumber any DSUs is void and of no force or effect.

The Board of Directors of the Company may make, without limitation, the following types of amendments to the DSU Plan without seeking approval from the shareholders of the Company: (i) amendments of a "housekeeping" or ministerial nature including, without limiting the generality of the foregoing, any amendment for the purpose of curing any ambiguity, error or omission in the DSU Plan or to correct or supplement any provision of the DSU Plan that is inconsistent with any other provision of the DSU Plan; (ii) amendments necessary to comply with the provisions of applicable law (including, without limitation, the rules, regulations and policies of the TSX); (iii) amendments necessary in order for DSUs to qualify for favourable treatment under applicable taxation laws; (iv) amendments respecting administration of the DSU Plan; (v) amendments to the definitions of "Applicable Withholding Taxes", "Award Date", "Beneficiary", "Election Notice", "Dividend Equivalent", "Eligible Director", "Participant", "Quarterly Remuneration" and "Termination Date", all as set out in Article 1.2 of the DSU Plan; (vi) amendments to Schedule A and Schedule B of the DSU Plan; (vii) amendments to the redemption provisions of the Plan or relating to any DSU; (viii) amendments necessary to suspend or terminate the DSU Plan; and (ix) any other amendment, whether fundamental or otherwise, not requiring shareholder approval under applicable law.

Shareholder approval will be required for the following types of amendments to the DSU Plan: (a) amendments to the maximum number of Class B Subordinate Voting Shares which may be issued from the Company's treasury in aggregate to all participants pursuant to the DSU Plan, including an increase to a fixed maximum number of Class B Subordinate Voting Shares or a change from a fixed maximum number of Class B Subordinate Voting Shares to a fixed maximum percentage; (b) any amendment which increases the number of DSUs that may be issued, or the number of Class B Subordinate Voting Shares that may be issued or paid upon redemption of DSUs, to a participant in the DSU Plan; and (c) amendments required to be approved by shareholders under applicable law (including, without limitation, the rules, regulations and policies of the TSX).

In the event of any conflict between clauses (i) to (ix) and (a) to (c) above, the latter will prevail.

The receipt of directors' fees in the form of DSUs has the effect of deferring receipt of directors' compensation until such time as the director's term expires or the director resigns, intended to better align the interests of the directors with those of the shareholders of the Company. In the fiscal year ended December 30, 2021, all six independent directors elected to receive 100% of their directors' fees in cash.

Prior to the amendment on March 10, 2022 to the DSU Plan described in this Circular, there were a maximum of 350,000 Class B Subordinate Voting Shares issuable under the DSU Plan, representing 1.08% of the aggregate number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares issued and outstanding on December 30, 2021, the end of the Company's most recently-completed fiscal year. As at December 30, 2021, there were 161,304 DSUs outstanding under the DSU Plan, representing 0.50% of the aggregate number of then-issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares, and 188,696 DSUs remained available for future grants under the DSU Plan, representing 0.58% of the aggregate number of then-issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares. The "annual burn rate" (ABR) under the DSU Plan (as described below), calculated in accordance with section 613(p) of the TSX Company Manual, was nil in each of the fiscal years ended December 30, 2021 and 2020 and 0.17% in the fiscal year ended December 30, 2019.

On March 10, 2022, the Board of Directors adopted an amendment to the DSU Plan so as to increase the number of Class B Subordinate Voting Shares which are available for issuance under the DSU Plan by an additional 400,000 Class B Subordinate Voting Shares, thereby bringing the maximum number of Class B Subordinate Voting Shares available for issuance from treasury under the DSU Plan to 750,000, representing 2.6% of the currently outstanding Class B Subordinate Voting Shares and 2.3% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares. See "Business to be Transacted at the Meeting – Amendment to the 2004 Directors' Deferred Share Unit Plan" above for additional information in respect of the amendment to the DSU Plan.

On March 23, 2022, the Board of Directors adopted an amendment to the DSU Plan to add an "insider participation limit", as prescribed by the TSX, to the DSU Plan. In light of the amending formula in the DSU Plan described above, the amendment does not require shareholder approval. The amendment provides in effect that the number of Class B Subordinate Voting Shares (i) issued to the Company's insiders within any one-year period, and (ii) issuable to the Company's insiders, at any time, under the DSU Plan, or when combined with all of the Company's other security based compensation arrangements, cannot exceed 10% of the Company's total issued and outstanding Class B Subordinate Voting Shares and Class A Multiple Voting Shares, respectively. The amendment also added a definition of "Insiders" to the DSU Plan, that is, collectively, those insiders who are "reporting insiders" of the Company as defined in National Instrument 55-104 - Insider Reporting Requirements and Exemptions. As a result of the amendment to the DSU Plan adopted by the Board of Directors on March 23, 2022, pursuant to the policies of the TSX the Company's five external directors and their respective associates are eligible to vote on the amendment to the DSU Plan to be considered at the Meeting and the Class A Multiple Voting Shares will carry ten votes per share for purposes of such vote.

Incentive Plan Awards - Value Vested or Earned During the Year

The following table sets out details regarding the value of the share-based awards earned by the Company's independent directors as at December 30, 2021:

Name	Share-based awards – value vested during the fiscal year ended December 30, 2021(1) (\$)	Share-based awards – market or payout value of vested share-based awards as at December 30, 2021 not paid out or distributed(2) (\$)
Alain Benedetti	––	730,813
Dian Cohen(3)	––	636,803
Brad A. Johnson	––	225,069
Sharon Ranson	––	225,069
Norman M. Steinberg	––	475,311
Maurice Tousson	––	921,723

(1) The share-based awards represent remuneration in the form of DSUs paid to the directors as directors' fees and as dividend equivalents. The DSUs vest at the date the remuneration and the date on which dividends are to be paid, respectively. The payment date is at the end of every quarter for fees and the date on which the dividends are payable in the case of dividends. Consequently, the vested amounts of the share-based payments consist of the value of the fees and the dividends earned in the form of DSUs elected by the directors under the DSU Plan; the fees earned are set out in the table under the section "Fees Earned'' above. This table represents the number of DSUs earned during the year multiplied by the closing price (\$19.93) of the Class B Subordinate Voting Shares on the TSX on December 30, 2021, the last day of the Company's most recently-completed fiscal year. Any amounts disclosed in this column have not been paid out or distributed.

(2) The aggregate dollar value of the share-based awards is determined by multiplying the number of DSUs vested at fiscal year-end, including awards granted before the most recently-completed fiscal year, by the closing price (\$19.93) of the Class B Subordinate Voting Shares on the TSX on December 30, 2021, the last day of the Company's most recently-completed fiscal year.

(3) Dian Cohen resigned from the Board of Directors on February 10, 2022.

There are no option-based awards or other non-equity incentive plans offered as compensation to the independent directors of the Company.

Bonus Awards for the Independent Directors

Effective October 1, 2021, the Company and each of the then-six independent directors entered into a Bonus Award Agreement which provides the independent directors with the opportunity to earn a shareholder return bonus ("Shareholder Return Bonus") and premium for the number of years of service as a director (the "Years of Service Premium") in the event of the sale by the Company of the Juvenile Segment, Home Furnishings Segment and Sports Segment (the "Three Segments") by December 31, 2026 (the "Term"). In the event that the sale of the Three Segments does not occur during the Term, no Shareholder Return Bonus will be earned or payable under the Bonus Award Agreements. In the event that a sale of the Three Segments occurs during the Term, each director will be entitled to receive a Shareholder Return Bonus based on the total shareholder return to the shareholders of the Company ("TSR") set out in the Bonus Award Agreement. The amount of any Shareholder Return Bonus will be multiplied by the Years of Service Premium as set out in the Agreement. The Shareholder Return Bonus payable to the director shall not in any circumstances exceed \$750,000.

EXECUTIVE COMPENSATION

1. Compensation Discussion and Analysis

Human Resources and Compensation Committee

The HRCC is comprised of three directors, namely, Maurice Tousson (Chair), Alain Benedetti and Brad A. Johnson, each of whom is an "independent" director within the meaning of National Instrument 52-110 Audit Committees. The Board of Directors is of the view that the HRCC collectively has the knowledge, experience and background to fulfill its mandate, and that each of the members of the HRCC has direct experience relevant to his responsibilities regarding executive compensation. These collective skills and extensive experience enable the HRCC to make decisions on the suitability of the Company's compensation policies and practices.

The HRCC Charter sets out that the mandate of the HRCC is to assume the responsibility for developing the Company's approach to matters of human resources and compensation and to review and make recommendations to the Board of Directors as to all such matters. The responsibilities of the HRCC generally include, but are not limited to, the following:

• (a) monitoring and evaluating the performance of the President and Chief Executive Officer and other members of senior management of the Company;
• (b) annually reviewing and making recommendations to the Board with respect to the Company's compensation and benefit programs for the President and Chief Executive Officer and other senior management of the Company, including base salaries, bonuses or other performance incentives, stock options and/or restricted share rights;
• (c) reviewing and making recommendations to the Board with respect to the implementation or variation of stock option plans, restricted share rights plans, share purchase plans, compensation and incentive plans and retirement plans. Further, the HRCC will ensure proper administration of the Company's existing share incentive plans, including making recommendations with respect to the granting of options or restricted share rights;
• (d) reviewing periodically the President and Chief Executive Officer's proposals for changes in the Company's overall management organizational structure;
• (e) making recommendations to the Board on appointments of Company officers (if any);
• (f) making recommendations to the Board with respect to any severance or similar termination payments proposed to be made to senior management of the Company;
• (g) retaining and replacing any independent firm to advise on executive compensation, including fixing such firm's fees and terms of retention;
• (h) providing an annual report on executive compensation to the shareholders of the Company in the management proxy circular prepared for the annual meeting of shareholders; and
• (i) carrying out any other duties or responsibilities expressly delegated to the HRCC by the Board.

In the assessment of the annual compensation of the President and Chief Executive Officer, the three Executive Vice-Presidents (including the Chief Financial Officer and Secretary of the Company) and the Senior Vice-President, Finance and Assistant-Secretary of the Company (collectively, the "Named Executive Officers" or "NEOs"), the HRCC consults with senior management to develop, recommend and implement compensation philosophy and policy. The HRCC also takes into consideration the competitiveness of the compensation package offered to the NEOs. Compensation decisions are usually made in the first half of each fiscal year, in respect of performance achieved in the prior fiscal year.

Comparative Group and External Compensation Consultant

To ensure the competitiveness and the appropriateness of the compensation offered to the NEOs and other senior executives of the Company, the HRCC retains, from time to time, the services of executive compensation consultants to provide advice on executive compensation. These services may include, but are not limited to, advice on base salary, annual incentives (bonus) and long-term incentive programs. In connection with these services, the executive compensation consultants may provide suggestions on choosing the companies forming part of the comparative groups, may make observations on the level of compensation compared to market and may make recommendations with regards to amendments where appropriate.

From 2016 to 2021, the HRCC retained Meridian Compensation Partners, LLC ("Meridian") to assist the Company in matters related to executive compensation such as peer group analysis, benchmarking and review of existing compensation programs and review of compensation trends and practices. The HRCC considers the executive compensation advice provided by Meridian to be independent as the executive compensation consultants reports are sent directly to the HRCC without management intervention. In addition, the HRCC has adopted protocols governing if and when the consultants' advice and recommendations can be shared with management. Furthermore, the HRCC evaluates the quality and objectivity of the services provided each year and determines whether to continue to retain the consultants.

In February 2019, Meridian reviewed the Company's peer group used for benchmarking the compensation of the Named Executive Officers. As part of the review process, the HRCC conducted an analysis to examine and compare the Company's compensation programs with a group of comparable companies to ensure the competitiveness and reasonableness of the compensation offered. The HRCC used this information to position the Company's compensation programs relative to the market. Although the HRCC may rely on the information and advice obtained from consultants, all of the decisions with respect to executive compensation are made by the HRCC and may reflect factors and considerations that differ from the information and recommendations provided by the consultants, such as merit and the need to retain high-performing executives. Other factors used in determining the compensation of the executives are their experience, their performance for the applicable period and their potential performance for future periods. When performing compensation reviews, the HRCC does not specifically identify a median or percentile for total compensation of the President and Chief Executive Officer, the three Executive Vice-Presidents or the Senior Vice-President, Finance and Assistant-Secretary.

As part of the benchmarking analysis, the group of comparable companies was reviewed by the HRCC and approved by the Board of Directors. When selecting the group, a mix of Canadian and U.S. companies was chosen, given that a large portion of the Company's revenues are generated, and an important portion of the Company's assets are located, in the United States. In addition, consideration was given to the size of the Company, location of the Company's main operations (the United States and Canada), the international focus of the Company, and companies operating in the same or similar industry as the Company (manufacturing and/or distribution of consumer products). The majority of the comparable companies were required to have revenues and assets that were between 0.3 times and 3.0 times those of the Company and to have market capitalization that was between 0.3 times and 5.0 times that of the Company. Assets and market capitalization were used as secondary measures in the establishment of the comparative group.

The comparative group used in the compensation benchmarking exercise of the Named Executive Officers for the fiscal year ended December 30, 2021 included the following companies:

	Comparative Group
Gildan Activewear Inc.	BRP Inc.	Lions Gate Entertainment Corp.
Quebecor Inc.	MDC Partners Inc.	Hasbro, Inc.
Tempur Sealy International, Inc.	Carter's, Inc.	Vista Outdoor Inc.
LCI Industries (formerly Drew Industries Incorporated)	Modine Manufacturing Company	Cott Corporation
La-Z-Boy Inc.	Linamar Corporation	Martinrea International Inc.
Revlon, Inc.	Uni-Sélect Inc.

President and Chief Executive Officer and Three Executive Vice-Presidents

The compensation of the President and Chief Executive Officer and each of the three Executive Vice-Presidents is determined in accordance with Company's objectives and policies and is developed, reviewed and recommended by the HRCC to the Board of Directors for annual approval. The Company relies on Board of Directors' decisions based upon the recommendations from the HRCC to determine the compensation package offered to these executives. See "Elements of Compensation" below for an explanation as to how base salary, annual incentives and long-term incentive levels are determined. It is important to note that the Company operates on a team structure, such that the four individuals are considered an executive group. It was agreed that any element of compensation be the same for each of the four individuals irrespective of their position. Meridian took this into consideration in the benchmarking analysis it performed, which focused on the aggregate compensation of the top four executives of the Company and its peers.

Senior Vice-President, Finance and Assistant-Secretary

The President and Chief Executive Officer of the Company and the three Executive Vice-Presidents are involved in determining the compensation offered to the Senior Vice-President, Finance and Assistant-Secretary of the Company because of their dayto-day involvement with him. The HRCC believes that the foregoing executives are in the best position to assess this individual's performance and to provide valuable input to the HRCC. They work jointly with the HRCC in recommending any salary adjustments, levels of payments of annual incentives as well as levels of option grants, as applicable. The HRCC will ultimately review and recommend the compensation to the Board of Directors.

Compensation Objectives and Policies

The objective of the executive compensation program is to attract, motivate and retain high-performing senior executives, align the immediate and long-term interests of the executive team with the annual and long-term interests of shareholders, and engage the leadership team by defining and rewarding performance for achieving a balance of Company-wide and business unit goals. The program is designed to reward and encourage individual and collective performance and motivate senior executives to achieve and surpass shorter and longer-term performance objectives set at the beginning of the year.

Elements of Compensation

The Company's total compensation program is comprised of a fixed and variable component with a particular emphasis on the use of at-risk pay in order to ensure the alignment of the interests of the senior executives with those of the shareholders. The total compensation program consists of four main components: (i) base salary determined in comparison with competitive benchmark positions; (ii) annual incentives linked to the financial performance of the Company and to objectives tied to the execution of certain strategic initiatives; (iii) long-term incentives including stock options, performance share units ("PSUs") and restricted share units ("RSUs"); and (iv) other perquisites.

In addition, when the HRCC oversees the executive compensation program, risks associated with the Company's compensation objectives and policies are considered.

Elements	Components	Form	Performance Period
Base Salary	Fixed	Cash or DSUs	One year
Annual Incentives	Variable	Cash or DSUs	One year
Long-Term Incentive	Variable	Stock options	Five years
Long-Term Incentive	Variable	PSUs (cash-settled)	Three years
Long-Term Incentive	Variable	RSUs (cash-settled)	Three years
Long-Term Incentive	Variable	Cash Incentive Plan	Three years

The table below sets out the key elements of compensation and their respective form and performance period:

An important objective of the executive compensation program is to take into account the advantages and risks associated with different compensation components. The HRCC has assessed the Company's compensation plans and programs for its executive officers to ensure alignment with the Company's business plan and to evaluate the potential risks associated with those plans and programs. The HRCC has concluded that the compensation policies and practices do not create any risks that are reasonably likely to have a material adverse effect on the Company. The HRCC considers the risks associated with executive compensation and corporate incentive plans when designing and reviewing such plans and programs.

The following table summarizes the applicable compensation components or policies and the relevant risk mitigation factors:

Compensation Component or Policy	Risk Mitigation Factor
Base Salary	 Base salaries are a fixed amount so as to provide steady income regardless of share price and therefore do not encourage unnecessary or excessive risks.
Annual Incentives	 The ability for short-term decisions to drive excessive compensation is limited because:
	— the maximum amount that a senior executive can receive is capped at two times the target payout;
	— a portion of the bonus is linked to the financial performance of the Company and is limited to predetermined percentages of cash conversion cycle ("CCC") metric and earnings before interest and taxes ("EBIT");

Compensation Component or Policy	Risk Mitigation Factor
	— another portion of the payout is based on a variety of objectives, including those tied to the execution of certain strategic initiatives, which are not disclosed in this Circular as they are confidential to the Company, thus diversifying the risk associated with any single objective; and
	 Consistent objectives for all management employees at all levels within each operating group, which creates alignment and encourages decision making that is in the best interest of the Company as a whole.
Long-Term Incentives: 2004 Stock Option Plan(1)	 Options vest over a four-year period starting on the first anniversary of the grant date, which aligns long-term performance with shareholders' interests; and
	 Stock options represent an incentive to enhance shareholder value by providing the executives with compensation which is realized only if the Company's share price increases over time.
Long-Term Incentives: PSUs – cash-settled	 PSUs vest over a three-year period starting on the grant date, which aligns long-term performance with shareholders' interests;
	 Performance objectives, based on the Company's target return on capital ("ROC") and EBIT as per strategic plans, are determined at the grant date by the HRCC and if:
	— the result is less than the threshold, the vesting percentage (multiplier) is nil; and
	— the target is exceeded, the vesting percentage is capped at 150%.
	 PSUs are also based on three-year share price performance; the ultimate value of the award is tied to the Company's share price, which encourages behavior focused on long-term goals, while discouraging behavior focused on short-term risks;
	 Annual grants with overlapping performance periods ensure that results in a single year impact currently-maturing grants as well as outstanding grants maturing in subsequent years, further encouraging continuous long term performance improvement; and
	 Beginning in 2019, the PSU award for the NEOs is based on a share price measurement where a price hurdle is established by the Board and must be met for 60 days during the last six months of the three-year performance measurement period and ROC.
Long-Term Incentives: RSUs – cash-settled	 RSUs vest in whole after a three-year period starting on the grant date, which aligns long-term performance with shareholders' interests; and
	 RSUs represent an incentive to achieve long-term growth of the Company and a key component in the retention of executives. The ultimate value of the award is tied to the Company's share price, which encourages behavior focused on long-term goals, while discouraging behavior focused on short term risks.
Long-Term Incentives: cash-settled	 A cash target award is granted and is subject to a three-year performance multiplier based on the Company's adjusted EBIT as per strategic plans, and as determined by the HRCC;
	 Value is delivered in cash and is not tied to the performance of the Company's shares;

Compensation Component or Policy	Risk Mitigation Factor
	 The cash target award vests over a three-year period starting on the first day of the award year and aligns long-term performance with shareholders' interest;
	 The settlement of the cash award will be as follows:
	— if the performance objectives are not achieved, no long-term incentive cash award will be paid;
	— if the performance objectives are achieved, the long-term incentive cash award will be paid in amounts at levels as determined by the HRCC; and
	— the maximum amount that can be paid is 150% of the cash award.
Executive Share Ownership Requirement(1)	 Since 2010, the senior executives of the Company are required to accumulate a certain level of share ownership in the Company; and
	 The share ownership requirement ensures that the interests of senior executives are aligned with the long-term interests of shareholders.
Pay Mix	 The Company offers various incentive plans which have variable compensation elements (short-term versus long-term) allowing risks to be spread over a broader time horizon; and
	 The variable compensation elements represent a percentage of overall compensation that is sufficient to motivate senior executives to produce superior short-term and long-term results while the fixed compensation element (base salary) is sufficient to discourage senior executives from taking unnecessary or excessive risks.
Discretion of the HRCC	 The HRCC retains the authority to recommend to the Board of Directors whether to reduce or increase incentive payouts, in its discretion, taking into consideration qualitative factors beyond the quantitative financial metrics.

____________________ (1) The Insider Trading and Blackout Periods Policy adopted by the Company prohibits senior executives, directors and all other insiders of the Company from purchasing financial instruments that are designed to hedge or offset a decrease in market value of equity securities granted as compensation or held, directly or indirectly, by the senior executives, directors and all other insiders.

Base Salary

Base salary provides an immediate cash incentive for the NEOs and is established through the recommendations of the HRCC and discussions with the Board of Directors with regard to the President and Chief Executive Officer and each of the three Executive Vice-Presidents. For the fiscal year ended December 30, 2021, the HRCC conducted a review of the compensation of the President and Chief Executive Officer and each of the three Executive Vice-Presidents and it was decided to increase their respective base salaries to \$1,098,373. In making this decision, the HRCC took into account the prior years benchmarking analysis performed by Meridian. The compensation of the President and Chief Executive Officer and each of the three Executive Vice-Presidents was set by reference to the results of the benchmarking analysis, although the HRCC did not aim at any particular positioning against this data.

The base salary of the Senior Vice-President, Finance and Assistant-Secretary is established based on a comparison with competitive benchmarking positions. The HRCC uses the information obtained in the benchmarking analysis, but also assesses other factors in determining the base salary. Other factors that the HRCC will consider include: the level of responsibilities and accountability, unique talents, capabilities and sustained performance, and the financial resources of the Company. Based upon the foregoing, the base salary of the Senior Vice-President, Finance and Assistant-Secretary for 2021 was increased to \$689,585.

Annual Incentives

The objective of the annual incentive program is to motivate employees to achieve and surpass corporate financial goals which are set at the beginning of the year by senior management and approved by the HRCC. The HRCC also considers non-financial goals based on the executive's achievements when determining the payout of the annual incentive.

Annual incentives are reviewed annually and designed around the fiscal year's business strategies and performance targets. They combine metrics that reflect a blend of financial and operational Company-wide and business unit goals. In 2021, the HRCC continued with its review of all of the Company's short-term and long-term programs and made certain changes to the incentive programs. For the fiscal year ended December 30, 2021, the corporate financial measures to be achieved were target levels of CCC metric and Earnings from Operations based on the annual budget which represented 75% of the overall bonus. These measures are intended to ensure that management's incentive-based compensation reflects the success in achieving and surpassing targets for profitability and how effectively net assets are utilized to generate revenue. In addition, objectives tied to the execution of certain strategic initiatives represented 25% of the overall bonus. These strategic initiatives are not disclosed in this Circular as they are confidential to the Company. These combined objectives represent the total performance factor which is applied to the targeted annual bonus percentage set yearly to calculate the annual incentive.

The Company has defined the CCC metric as the length of time, in days, that it takes the Company to sell its inventory, collect its receivables and pay its suppliers. The metric indicates how efficiently the Company is managing its working capital and generating cash flows. The metric is calculated as follows:

CCC metric is equal to the average of the monthly CCC metrics for the fiscal year calculated as follows: Days Inventory Outstanding ("DIOs") plus Days Sales Outstanding ("DSOs") less Days Payables Outstanding ("DPOs").

DIO refers to the number of days it takes to sell an entire inventory; DSO refers to the number of days needed to collect accounts receivable; and DPO refers to the Company's payment of its accounts payable.

Incentive bonuses vary in proportion to base salary, depending on whether or not the specified Earnings from Operations, CCC targets and/or objectives tied to the execution of certain strategic initiatives have been attained. When the performance targets are exceeded, bonuses are higher; when objectives are not attained, the incentive bonuses are lower or nil, depending on the circumstances. At the end of the year, the Company compares actual results against each performance goal and calculates the incentive compensation earned. The HRCC may also make a qualitative discretionary bonus award in recognition of an individual's special achievements or contributions to the Company in a particular financial year.

The following table sets out the respective weights given to each measure for all NEOs. Weights are expressed as a percentage of the bonus target:

Function	Earnings from Operations	CCC	Strategic Initiatives
	(%)	(%)	(%)
Named Executive Officers	60%	15%	25%

The actual bonus payout for the President and Chief Executive Offer and the three Executive Vice-Presidents can range from zero to 200% of their base salary. The actual bonus payout for the Senior Vice-President, Finance and Assistant-Secretary can range from zero to 150% of his base salary. The following tables illustrate the annual bonus payable at certain levels of performance versus target for fiscal 2021, expressed as a percentage of base salary:

Percentage of Earnings from Operations Target Achieved	Bonus Payable as Percentage of Base Salary
	President and Chief Executive Officer and the three Executive Vice-Presidents	Senior Vice-President, Finance and Assistant-Secretary
Less than 90%	Nil	Nil
90%	15%	11.25%
100%	60%	45%
125% and more	120%	90%

CCC Target Achieved	Bonus Payable as Percentage of Base Salary
	President and Chief Executive Officer and the three Executive Vice-Presidents	Senior Vice-President, Finance and Assistant-Secretary
95 days and more	Nil	Nil
85 days – 87 days	15%	11.25%
75 days and less	30%	22.5%

In the determination of the NEOs' 2021 annual incentive, the HRCC took into consideration the impact of the restructuring and other costs and other non-recurring costs in the calculation of the Company's EBIT in relation to this performance target. In 2021, the Company did not attain its EBIT performance target. However, it achieved its CCC performance metric at 85 days, met its strategic objectives and the Board awarded an ancillary benefit for the execution and realization of specific projects. The bonus payout to the NEOs was affected accordingly. See "Summary Compensation Table" below for the breakdown of the bonuses paid to each of the NEOs.

Long-Term Incentives

The objectives of the long-term incentive plan are to align the executive's interests with those of the shareholders of the Company by providing a form of compensation tied to increases in market value, to attract and retain talented individuals and recognize and reward the impact of longer-term growth strategies taken by management. In order to meet these long-term objectives, the Company uses the 2004 Stock Option Plan (the "Stock Option Plan") and implemented in 2014 long-term incentive plans comprised of a Performance Share Unit Plan (the "PSU Plan") and a Share Appreciation Rights Plan (the "SAR Plan") to reward its executives and certain employees.

On June 5, 2017, the Board approved the adoption by the Company of a Restricted Share Unit Plan (the "RSU Plan"). The RSU Plan is designed to ensure that the interests of key employees, who share primary responsibility for the management, growth and protection of the business, are aligned with the success of the Company, to furnish an incentive for the key employees to continue their services with the Company and to attract new key employees to the Company.

In accordance with the requirements of section 613 of the TSX Company Manual, companies listed on the TSX are required to disclose an "annual burn rate" ("ABR") for each of their security-based compensation arrangements as of the end of the financial year. ABR refers to the number of shares that are subject to awards that are granted during the year, expressed as a percentage of the total weighted average number of issued and outstanding shares for the applicable fiscal year. The weighted average number of common shares of the Company issued and outstanding in each of the last three fiscal years is as follows:

• Year ended December 30, 2021 32,505,967 shares;
• Year ended December 30, 2020 32,491,656 shares; and
• Year ended December 30, 2019 32,448,448 shares.

ABR for each of the Stock Option Plan, DSU Plan and EDSU Plan is set out in the respective sections above and below.

2. 2004 Stock Option Plan

Option Grant Process

Option grants are a component of the Company's executive compensation package and serve to align executive interests with those of shareholders, as grant recipients benefit only if shareholder value increases. Grant levels are reviewed and are approved by the Board of Directors based on recommendations of the HRCC. Except as regards certain specified holding restrictions set out in the Stock Option Plan, the number of outstanding options held by an employee is not taken into account when determining if and how many new options are to be awarded in the particular year. In assessing the level of option grants for executives, the HRCC will also take into account special achievements and/or the need for retention or motivation.

Material Terms and Conditions

In April 2004, the Board of Directors of the Company established the Stock Option Plan, which was ratified by shareholders at the Company's annual and special general meeting held on May 28, 2004. The objective of the Stock Option Plan is to provide directors, officers and employees of the Company and its subsidiaries with a proprietary interest through the granting of options to purchase Class B Subordinate Voting Shares of the Company. The Stock Option Plan is also intended to increase the interest in the Company's welfare of those directors, officers and employees who share primary responsibility for the management, growth and protection of the business of the Company, to furnish an incentive to such directors, officers and employees to continue their services for the Company and to provide a means through which the Company may attract able persons to enter its employment.

There are a maximum of 6,000,000 Class B Subordinate Voting Shares issuable under the Stock Option Plan, representing 18.5% of the aggregate number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares issued and outstanding on December 30, 2021, the end of the Company's most recently-completed fiscal year. As at December 30, 2021, there were no options outstanding to purchase Class B Subordinate Voting Shares and 4,657,750 Class B Subordinate Voting Shares remained available for future grants of stock options, representing 14.3% of the aggregate number of then-issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares. ABR for the Stock Option Plan, calculated in accordance with section 613(p) of the TSX Company Manual, was nil in each of the fiscal years ended December 30, 2021, 2020 and 2019.

The Stock Option Plan contains restrictions on the number of Class B Subordinate Voting Shares which may be issued to the Company's "insiders", that is, its directors and officers and those of its subsidiaries. Under the Stock Option Plan, no option may be granted if such grant could result, at any time, when taken together with all of the Company's other share compensation arrangements in:

• (a) the number of Class B Subordinate Voting Shares reserved for issuance pursuant to stock options granted to "insiders" exceeding 10% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares;
• (b) the issuance to "insiders" within a one-year period of a number of Class B Subordinate Voting Shares exceeding 10% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares; or
• (c) the issuance to any one "insider" and such insider's associates, within a one-year period, of a number of Class B Subordinate Voting Shares exceeding 5% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares.

No options were granted to the Named Executive Officers in fiscal 2021. Options that are outstanding are not exercisable during the first year following the date of grant and the holders may exercise only 25% of the total number of options held commencing each successive year. All of the outstanding options are valid for a five-year period from the effective date of the grant.

The following is a description of certain features of the Stock Option Plan, as required by the TSX:

• (a) the option price per share is set by the Board of Directors at the time of the granting of each option, but cannot be less than the closing price of the Class B Subordinate Voting Shares on the TSX on the trading day immediately preceding the date of the grant;
• (b) the maximum period during which an option is exercisable cannot, subject to the provisions of the Stock Option Plan, exceed ten years from the date the option is granted, after which the option will lapse. Unless otherwise determined by the Board of Directors, no option may be exercised during the first year following the grant thereof. An option may be exercised in whole or in part in respect of 25% of the Class B Subordinate Voting Shares subject to the option during each of the second, third, fourth and fifth years following the grant thereof;

• (c) if an option is to expire during a period when the optionee is prohibited by the Company from trading in its shares pursuant to its policies (a "Blackout Period"), or within ten business days of expiry of such Blackout Period, the term of such option will automatically be extended for a period of ten business days immediately following the end of the Blackout Period ("Blackout Extension Period");

• (d) options granted under the Stock Option Plan may not be assigned, except by will or by the laws of succession of the domicile of a deceased option holder;

• (e) the aggregate number of Class B Subordinate Voting Shares reserved for issuance to any one option holder, whether under the Stock Option Plan or any other share option plan, option for services or share purchase plan of the Company (if any), cannot exceed 5% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares;
• (f) upon an option holder's employment with the Company being terminated for cause, any option not exercised prior to the date of termination immediately lapses and becomes null and void;
• (g) if an option holder dies while employed by the Company or while a director thereof, or if an option holder's employment, office or directorship with the Company terminates otherwise than by reason of death or termination for cause, any option or unexercised part thereof held by the option holder may be exercised by the person to whom the option is transferred by will or the laws of succession, or by the option holder, as the case may be, for that number of shares only which the option holder was entitled to acquire under the option at the time of his death, termination or end of employment, office or directorship, as the case may be, within 30 days after such date or prior to the expiration of the term of the option, whichever occurs earlier;
• (h) the Stock Option Plan does not provide for financial assistance from the Company to option holders;
• (i) subject to the exceptions set out in paragraph (j) below, the Board of Directors may amend, suspend or terminate the Stock Option Plan, or any portion thereof, at any time, and may do so without shareholder approval, subject to those provisions of applicable law, if any, that require the approval of shareholders or any governmental or regulatory body. Without limiting the generality of the foregoing, the Board of Directors may make the following types of amendments to the Stock Option Plan without seeking shareholder approval:
• (i) amendments of a "housekeeping" or ministerial nature including, without limiting the generality of the foregoing, any amendment for the purpose of curing any ambiguity, error or omission in the Stock Option Plan or to correct or supplement any provision of the Stock Option Plan that is inconsistent with any other provision of the Stock Option Plan;
• (ii) amendments necessary to comply with the provisions of applicable law (including, without limitation, the rules, regulations and policies of the TSX);
• (iii) amendments necessary in order for options to qualify for favourable treatment under applicable taxation laws;
• (iv) amendments respecting administration of the Stock Option Plan;
• (v) any amendment to the vesting provisions of the Stock Option Plan or any option;
• (vi) any amendment which reduces the exercise price or purchase price of an option held by an optionee who is not an "insider" of the Company;
• (vii) any amendment to the early termination provisions of the Stock Option Plan or any option, whether or not such option is held by an "insider", provided such amendment does not entail an extension beyond the original expiry date;
• (viii) any amendment to the termination provisions of the Stock Option Plan or any option, other than an option held by an "insider" in the case of an amendment extending the term of an option, provided any such amendment does not entail an extension of the expiry date of such option beyond its original expiry date;

• (ix) the addition of any form of financial assistance by the Company for the acquisition by all or certain categories of eligible participants of shares under the Stock Option Plan, and the subsequent amendment of any such provisions;

• (x) the addition or modification of a cashless exercise feature, payable in cash or shares;

• (xi) amendments necessary to suspend or terminate the Stock Option Plan; and
• (xii) any other amendment, whether fundamental or otherwise, not requiring shareholder approval under applicable law (including, without limitation, the rules, regulations and policies of the TSX);
• (j) shareholder approval will be required for the following types of amendments:
• (i) amendments to the number of Class B Subordinate Voting Shares issuable under the Stock Option Plan, including an increase to a fixed maximum number of shares or a change from a fixed maximum number of shares to a fixed maximum percentage;
• (ii) any amendment to the Stock Option Plan that increases the length of the Blackout Extension Period;
• (iii) any amendment which reduces the exercise price or purchase price of an option held by an "insider" of the Company;
• (iv) any amendment extending the term of an option held by an "insider" beyond its original expiry date except as otherwise permitted by the Stock Option Plan; and
• (v) amendments required to be approved by shareholders under applicable law (including, without limitation, the rules, regulations and policies of the TSX);
• (k) in the event of any conflict between item (i) and (j) above, the latter shall prevail; and
• (l) notwithstanding anything contained to the contrary in the Stock Option Plan or in any resolution of the Board of Directors in the implementation thereof:
• (i) in the event the Company proposes to amalgamate, merge or consolidate with or into any other company (other than with a wholly-owned subsidiary of the Company) or to liquidate, dissolve or wind-up, or in the event an offer to purchase the Class B Subordinate Voting Shares of the Company or any part thereof is made to all holders of Class B Subordinate Voting Shares of the Company (other than the offeror or offerors), the Company will have the right: (A) upon written notice thereof to each optionee holding options under the Stock Option Plan who has been an employee or director of the Company for at least three years as at the date of such notice (collectively, the "Old Optionees"), to determine, in the Company's sole discretion, that all options held by Old Optionees may be exercised within the 20-day period next following the date of such notice, and that upon the expiry of such 20-day period, all rights of Old Optionees to options under the Stock Option Plan or to exercise same (to the extent not theretofore exercised) will terminate and that all such options will cease to have further force or effect whatsoever; and (B) upon written notice thereof to each optionee holding options under the Stock Option Plan who has not been an employee or director of the Company for at least three years as at the date of such notice (collectively, the "New Optionees"), to determine, in the Company's sole discretion, that upon the expiry of such 20-day period, all rights of New Optionees to options under the Stock Option Plan or to exercise same (to the extent not theretofore exercised) will terminate and that all such options, whether then vested or unvested, will cease to have further force or effect whatsoever;
• (ii) the Board of Directors may, by resolution, advance the date on which any option may be exercised in a manner to be set forth in such resolution. The Board of Directors will not, in the event of any such advancement, be under any obligation to advance the date on or by which any option may be exercised by any other optionee; and
• (iii) the Board of Directors may, by resolution, but subject to applicable regulatory requirements, decide that any of the provisions of the Stock Option Plan concerning the effect of termination for cause of the optionee's employment will not apply for any reason acceptable to the Board of Directors.

3. Performance Share Unit Plan and Restricted Share Unit Plan

Overview of the PSU Plan and RSU Plan

The long-term incentive plan ("LTIP") implemented in 2014 comprising the PSU Plan and SAR Plan was reviewed in 2016, at which time the HRCC determined that certain changes were required to the LTIP program. Upon the recommendation of the HRCC, on June 5, 2017, the Board adopted the RSU Plan so that the LTIP is now comprised of the PSU Plan and RSU Plan.

The LTIP represents a key component of the Company's compensation for senior executives and certain key employees. The LTIP is designed to:

• align pay with performance;
• clearly define what performance and accountability mean for the Company; and
• link the efforts of the Company's leadership with the achievement of the Company's and its segments' strategic business objectives.

The LTIP provides the Company's leadership with the opportunity to share in the Company's long-term success and establishes a foundation for the Company to source and retain top talent to support the Company's continued growth and profitability.

Senior executives and key employees are assigned a long-term incentive ("LTI") target, expressed as a percentage of their respective base salaries. Prior to 2017, LTI value was granted through two types of awards, namely, PSUs and SARs. Effective June 5, 2017, LTI value is now granted through PSU and RSU awards.

The LTI target and the weight of each award are determined based on the employee's responsibilities.

Performance Share Units (PSUs)

PSUs are notional shares that mirror the market value of the Company's Class B Subordinate Voting Shares. PSUs are granted at no purchase cost and provide immediate value upon vesting. The value of PSUs fluctuates with any change in the market price of the Class B Subordinate Voting Shares over the course of the vesting period. The payout ultimately received in cash from a PSU grant is tied to the market price of the Class B Subordinate Voting Shares, the amount of dividends paid on the shares, and a performance multiplier.

The percentage of PSUs that vest at the end of the vesting period is subject to the Company's or segment's performance compared to financial criteria. The table below sets out the key financial criteria that act as performance multipliers. The criteria applicable to each senior executive or key employee as well as their weighting vary depending on the employee's position and responsibilities.

Financial Criteria	Scope
	Company level
ROC (return on capital)	Segment level
EBIT (earnings before interest and taxes)	Company level
Earnings from Operations	Segment level

The Company has defined ROC as earnings before interest and taxes, excluding restructuring charges and non-recurring costs, divided by total assets less non-interest bearing liabilities, accumulated other comprehensive income and other equity. EBIT has been defined as earnings before interest and taxes, excluding restructuring charges and non-recurring costs adjustments. Earnings from Operations excludes restructuring charges and non-recurring costs adjustments. These financial criteria are based on attaining specific ROC, EBIT and Earnings from Operations targets, based on the fiscal year's business strategies.

Beginning in 2019, the PSU award for the NEOs is based on a share price measurement where a price hurdle is established by the Board and must be met for 60 days during the last six months of the three-year performance measurement period and ROC. The following table sets out the respective weights given to the PSUs granted to all the NEOs for each key financial criterion:

Function	Share Price (%)	ROC (%)
Named Executive Officers	67%	33%

The level of achievement of the target remains unchanged and can range from 0% to 125% and the performance multiplier can range from 0% to 150%.

Payout	% of financial objective achievement(1)	PSU performance multiplier(2)
Maximum	125% of objective	150%
Target	100% of objective	100%
Threshold	80% of objective	50%
Below Threshold	< 80% of objective	0%

(1) Performance levels can range from 0% to 125% of the target objective. For illustrative purposes only, <80%/80%/100%/125% have been used to demonstrate performance.

(2) The PSU performance multiplier between the performance levels set out in the table is calculated on a straight-line basis.

Restricted Share Units (RSUs)

RSUs are notional shares that mirror the market value of the Company's Class B Subordinate Voting Shares. RSUs are granted at no purchase cost and provide immediate value upon vesting. The value of RSUs fluctuates with any change in the market price of the Class B Subordinate Voting Shares over the course of the vesting period. The payout ultimately received in cash from a RSU grant is tied to the market price of the Class B Subordinate Voting Shares and the amount of dividends paid on the shares. The payout will not be subject to the Company's performance on specific measures as payouts are strictly based on market price.

Long Term Incentive Plan (LTIP) Vesting Schedule

Awards under the LTIP are made annually. PSUs vest after a three-year performance cycle contingent on the level of achievement of financial objectives. RSUs vest in whole after three years from the date of the grant.

The following is an illustration of the timing of grants and payouts based on the PSU and RSU vesting schedule:

		2019	2020	2021	2022
PSUs	2019 Grant	Three-year performance period			Vesting is contingent on three-year cliff performance
RSUs	2019 Grant	Time-vested			Vest in whole three years from the anniversary of the grant award

The following are descriptions of certain features of the two share-based plans comprising the LTIP.

PSU Plan

In 2014, the Board of Directors adopted the PSU Plan for the Company's senior executives and certain key employees and those of its subsidiaries; the PSU Plan entitles them to a cash payment. The purpose of the PSU Plan is to provide these employees with an interest in the performance of the Company through the granting of PSUs. The PSU Plan is also intended to increase the interest in the Company's welfare of those employees who share primary responsibility for the management, growth and protection of the business of the Company, to furnish an incentive to such employees to continue their services for the Company and to provide a means through which the Company may attract able persons to enter its employment.

Under the PSU Plan, the Board of Directors, in its sole discretion, may, at the time it approves the audited annual consolidated financial statements of the Company, approve the grant of PSUs to one or more employees, the number of PSUs to be granted and the terms and conditions of such PSUs.

PSUs are credited to an account maintained for the PSU participant by the Company. A PSU Plan participant may also receive dividend equivalents paid in the form of PSUs.

The PSUs vest based on non-market performance conditions. At the time of granting PSUs, the Board of Directors may, in its sole discretion, upon the recommendation of the HRCC, establish vesting conditions in respect of any PSUs, which vesting conditions may be based on corporate, financial and/or business objectives of the Company. The level of attainment of the performance objective(s), the number of PSUs earned and eligible to vest and the number of Class B Subordinate Voting Shares underlying such PSUs is determined by the Board of Directors on the date on which it approves the Company's consolidated financial statements for the financial year in respect of which the performance objective(s) have been set (or the last financial year in respect of which the performance objective(s) have been set in the case of objective(s) covering more than one financial year). Upon such determination by the Board of Directors, the Company delivers to the participant a letter ("PSU Grant Letter") confirming the number of PSUs granted to the participant and the number of Class B Subordinate Voting Shares underlying such PSUs. Any PSUs not earned in accordance with the terms and conditions of such PSUs will expire and the participant will not have any rights or entitlements whatsoever in respect of any such PSUs.

At the end of the third fiscal year of the Company following the fiscal year during which a PSU participant provided services to the Company in respect of which PSUs were granted to the PSU participant, known as a "Performance Cycle", provided that termination of employment of such PSU participant has not occurred prior to the Settlement Period (as defined below), other than by reason of death or long-term disability, as defined in the PSU Plan, a PSU participant (or, if deceased, the participant's estate, succession, heirs or legal representatives) will receive an amount in cash equal to the number of such vested PSUs multiplied by the fair market value of the Class B Subordinate Voting Shares calculated using their weighted average trading price on the TSX for the five trading days commencing two business days after the day on which the Company issues a press release announcing its financial results for its most recently-completed fiscal year. The vesting of PSUs granted is contingent on a three-year cliff performance.

Once a PSU is earned and has vested in accordance with the PSU Grant Letter and the PSU Plan, it will be settled by the Company within one month of the day on which the Company first issues a press release announcing its financial results for its most recently-completed fiscal year (the "Settlement Period"), but in all cases not later than the business day preceding December 31 of the third calendar year following the first year in which the participant rendered services in respect of the grant of PSUs.

Any PSU which is earned and has vested in accordance with the terms and conditions and has not been settled at the date of termination of the Settlement Period will be automatically settled on such date.

In the event of the termination of employment of a PSU participant by resignation or voluntarily termination of employment with the Company or one of its subsidiaries, or if a participant's employment with the Company or one of its subsidiaries is terminated for cause, all unvested PSUs are forfeited and all vested PSUs will be settled in accordance with the PSU Plan.

In the event a PSU participant's employment with the Company or one of its subsidiaries is terminated other than for cause, or if a participant ceases to be an employee as a result of permanent disability, as such term is defined in the PSU Plan, or death, each grant of unvested PSUs outstanding on the date that is the participant's last working day will be subject to prorated vesting (that is, vesting of a portion of each grant of unvested PSUs equal to the number of PSUs in such grant multiplied by a fraction, the numerator of which is the number of days elapsed from January 1 of the year of the grant to the last working day, and the denominator of which is 1,095, minus any vested PSUs in such grant, and forfeiture of remaining unvested PSUs) conditional upon subsequently being earned and eligible to vest in accordance with the level of attainment of the performance objective(s), the number of PSUs earned and eligible to vest and the number of Class B Subordinate Voting Shares underlying such PSUs, unless otherwise determined at the discretion of the Board of Directors, and will be settled in accordance with the PSU Plan.

No PSUs or any interest in the PSU Plan may be assignable or transferable by the participant other than by will or under the laws of succession.

The PSU Plan defines a "Material Transaction" as: (a) the sale by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel to one or more third parties dealing at arm's length with each of them of at least 75% of the aggregate number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares of the Company held by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel immediately prior to such sale; (b) a merger, amalgamation, arrangement or other similar transaction between the Company and one or more other persons dealing at arm's length with the Company, as a result of which the shareholders of the Company immediately prior thereto hold in the aggregate less than 50% of the issued and outstanding shares of the Company or other entity resulting from such merger, amalgamation, arrangement or other similar transaction; (c) the sale by the Company of all or substantially all of its assets to a third party dealing at arm's length with the Company, or (d) the sale by the Company, to a third party dealing at arm's length with the Company, of all of the assets of one or more of its segments, or a distinct business or geographical unit or units of any segment or segments, or of all of the shares of its subsidiary companies comprising any segment or segments or a distinct business or geographical unit or units. For greater certainty, "Material Transaction" does not include a sale, merger, amalgamation, arrangement or other similar transaction pursuant to or in connection with any reorganization of the Company or of any segment. In the event of a Material Transaction:

• (i) the Settlement Period of all vested PSUs will terminate on the closing date of the Material Transaction;
• (ii) as of the closing date of the Material Transaction, all unvested PSUs will be deemed to have attained 100% of the relevant performance objective(s) and to have vested on a pro rata basis (that is, vesting of a portion of each grant of unvested PSUs equal to the number of PSUs in such grant multiplied by a fraction, the numerator of which is the number of days elapsed from January 1 of the year of the grant to the closing date of the Material Transaction, and the denominator of which is 1,095, minus any vested PSUs in such grant, and forfeiture of remaining unvested PSUs); and
• (iii) in the case of (d) above, (i) and (ii) will apply mutatis mutandis to any participant who is an employee of such segment on the closing date of such sale, but not to any other participant.

In the event of any reorganization, change in the number of issued and outstanding Class B Subordinate Voting Shares by reason of any stock dividend, stock split, reverse stock split, recapitalization, merger, consolidation, combination or exchange of shares or other similar corporate change, an equitable adjustment will be made by the Board of Directors, by adjusting (i) the number and/or kind of Class B Subordinate Voting Shares underlying outstanding PSUs, (ii) the factors and manner in which the settlement amount of a PSU is to be determined, or (iii) any other term and condition of the PSUs.

The PSU Plan is under the direction of the Board of Directors. The Board of Directors, in its sole discretion, has full and complete authority to administer and interpret the PSU Plan and to prescribe such rules and regulations and make such other determinations as it deems necessary or useful for the administration of the PSU Plan, including the power and authority to:

• (a) approve the employees to whom PSUs may be granted from time to time;
• (b) determine the time or times of grant, the time or times of vesting and the Settlement Period of PSUs granted to participants;
• (c) determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the PSU Plan, of any PSU, which terms and conditions may differ among individual PSU grants and participants, and to approve forms of PSU Grant Letters under the PSU Plan;
• (d) determine the level of attainment of the performance objective(s) which must be attained for PSUs to be earned, and to modify or waive such objective(s) in whole or in part;
• (e) accelerate the vesting or settlement of any PSU; and
• (f) make all determinations it deems advisable for the administration of the PSU Plan, to decide all disputes arising in connection with the PSU Plan and to otherwise supervise the administration of the PSU Plan.

All decisions and interpretations of the Board of Directors are binding on all persons, including the Company and participants.

Notwithstanding any provision of the PSU Plan to the contrary, in order to comply with the laws in other jurisdictions in which the Company and its subsidiaries operate or have employees, the Board of Directors, in its sole discretion, has the power and authority to:

(a) determine which subsidiaries of the Company are covered by the PSU Plan;

• (b) determine which employees outside of Canada are eligible to participate in the PSU Plan;
• (c) modify the terms and conditions of any PSU granted to participants outside of Canada to comply with applicable foreign laws;
• (d) establish sub-plans and modify settlement procedures and other terms and procedures, to the extent the Board of Directors determines such actions to be necessary or advisable; and
• (e) take any action before or after a grant of PSUs is made that the Board of Directors determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals.

The Company did not grant any PSUs for the fiscal year ended December 30, 2021. As at December 30, 2021, there were 147,547 PSUs outstanding, none of the outstanding PSUs were vested and the weighted average remaining contractual life of these PSUs was nil.

RSU Plan

On June 5, 2017, the Board of Directors of the Company adopted the RSU Plan for its senior executives and certain key employees and those of its subsidiaries. The purpose of the RSU Plan is to provide these employees with an interest in the performance of the Company through the granting of RSUs. The RSU Plan is also intended to increase the interest in the Company's welfare of those employees who share primary responsibility for the management, growth and protection of the business of the Company, to furnish an incentive to such employees to continue their services for the Company and to provide a means through which the Company may attract able persons to enter its employment. A RSU is a right to receive a cash payment based on the value of the Class B Subordinate Voting Shares at the vesting date. RSUs will be settled in an amount equal to the number of Class B Subordinate Voting Shares underlying the vested RSUs multiplied by their weighted average trading price on the TSX for the five trading days immediately preceding the vesting date. RSUs granted vest in whole after three years from the date of the grant. RSUs vest based on service conditions and are not subject to performance conditions.

RSUs are credited to an account maintained for the RSU participant by the Company. A RSU Plan participant may also receive dividend equivalents paid in the form of RSUs.

The RSU Plan is under the direction of the Board of Directors. The Board of Directors, in its sole discretion, has full and complete authority to administer and interpret the RSU Plan and to prescribe rules and regulations and make other determinations, as it deems necessary or useful for the administration of the RSU Plan, including the power and authority to:

• (a) approve the employees to whom RSUs may be granted from time to time;
• (b) determine the time or times of grant, and the time or times of vesting and the settlement date of the RSUs granted to participants;
• (c) determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the RSU Plan, of any RSU, which terms and conditions may differ among individual grants and participants, and to approve forms of grant letters under the RSU Plan;
• (d) accelerate the vesting or settlement of any RSU; and
• (e) make all determinations it deems advisable for the administration of the RSU Plan, to decide all disputes arising in connection with the RSU Plan and to otherwise supervise the administration of the RSU Plan.

All decisions and interpretations of the Board of Directors are binding on all persons, including the Company and participants.

Notwithstanding any provision of the RSU Plan to the contrary, in order to comply with the laws in other jurisdictions in which the Company and its subsidiaries operate or have employees, the Board of Directors, in its sole discretion, has the power and authority to:

• (a) determine which subsidiaries of the Company are covered by the RSU Plan;

• (b) determine which employees outside of Canada are eligible to participate in the RSU Plan;

• (c) modify the terms and conditions of any RSU granted to participants outside of Canada to comply with applicable foreign laws;

• (d) establish sub-plans and modify settlement procedures and other terms and procedures, to the extent the Board of Directors determines such actions to be necessary or advisable; and
• (e) take any action, before or after a grant of RSUs is made, that the Board of Directors determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals.

The following is a description of certain features of the RSU Plan:

• (a) the Board of Directors, in its sole discretion, may at any time and from time to time approve the grant of RSUs to one or more participants, the number of RSUs to be granted and the terms and conditions of such RSUs;
• (b) each grant of RSUs is evidenced by a grant letter (the "RSU Grant Letter") from the Company addressed to the participant setting out the date of grant, the number of RSUs granted, the vesting conditions (if any), the settlement date and any other terms and conditions applicable to such RSUs;
• (c) RSUs vest in whole after three years from the date of the grant;
• (d) the settlement share value is a cash payment equal to the number of the Company's Class B Subordinate Voting Shares underlying the vested RSUs multiplied by the weighted average trading price on the TSX for the five trading days immediately preceding the vesting date;
• (e) if a participant resigns or voluntarily leaves his or her employment with the Company or one of its subsidiaries, or if a participant's employment with the Company or one of its subsidiaries is terminated for cause, all unvested RSUs are forfeited and all vested RSUs will be settled in accordance with the RSU Plan;
• (f) if a participant's employment with the Company or one of its subsidiaries is terminated other than for cause, or if prior to the vesting date a participant ceases to be an employee as a result of permanent disability, as such term is defined in the RSU Plan, or death, each grant of unvested RSUs outstanding on the date that is the participant's last working day will be subject to prorated vesting (that is, vesting of a portion of each grant of unvested RSUs equal to the number of RSUs in such grant multiplied by a fraction, the numerator of which is the total number of days elapsed from January 1 of the year of the grant to the last working day, and the denominator of which is 1,095, and forfeiture of remaining unvested RSUs);
• (g) no RSU or any interest may be assignable or transferable by the participant other than by will or under the laws of succession; and
• (h) participants in the RSU Plan who are also participants in the EDSU Plan shall have the right annually to elect to receive, in lieu of RSUs under this Plan, an equivalent number of DSUs under the EDSU Plan, in accordance with terms and conditions established time-to-time by the Company. An election must be received by the Company no later than December 31 of the year immediately preceding the year in which the RSUs would otherwise have been granted and shall specify the percentage of RSUs which the Participant wishes to receive in the form of DSUs under the EDSU Plan. Any DSUs granted to a participant further such election in lieu of RSUs shall be governed thereafter exclusively by the terms and conditions of the EDSU Plan. Any RSUs in participants account pursuant to this plan shall be included in the calculation of DSU value for purposes of determining "Share Ownership Value" under the EDSU Plan.

The RSU Plan defines a "Material Transaction" as: (a) the sale by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel to one or more third parties dealing at arm's length with each of them, of at least 75% of the aggregate number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares of the Company held by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel immediately prior to such sale; (b) a merger, amalgamation, arrangement or other similar transaction between the Company and one or more other persons dealing at arm's length with the Company, as a result of which the shareholders of the Company immediately prior thereto hold in the aggregate less than 50% of the issued and outstanding shares of the Company or other entity resulting from such merger, amalgamation, arrangement or other similar transaction; or (c) the sale by the Company of all or substantially all of its assets to a third party dealing at arm's length with the Company. For greater certainty, "Material Transaction" does not include a sale, merger, amalgamation, arrangement or other similar transaction pursuant to or in connection with any reorganization of the Company or of any segment. In the event of a Material Transaction:

• (a) the Settlement Period of all vested RSUs shall be the earlier of (i) the vesting date and (ii) the closing date of the Material Transaction;
• (b) as of the closing date of the Material Transaction, all unvested RSUs will be deemed to have vested on a pro rata basis (that is, vesting of a portion of each grant of unvested RSUs equal to the number of RSUs in such grant multiplied by a fraction, the numerator of which is the number of days elapsed from January 1 of the year of the grant to the closing date of the Material Transaction, and the denominator of which is 1,095, and forfeiture of remaining unvested RSUs); and
• (c) in the case of the sale by the Company of all or substantially all of its assets of one or more of its segments, or a distinct business or geographical unit or units of any segment or segments, or all of the shares of its subsidiary companies comprising any segment or segments or a distinct business or geographical units, (a) and (b) shall apply mutatis mutandis to any participant who is an employee of such segment on the closing date of such sale, but not to any other participant.

In the event of any reorganization, change in the number of issued and outstanding Class B Subordinate Voting Shares of the Company by reason of any stock dividend, stock split, reverse stock split, recapitalization, merger, consolidation, combination or exchange of shares or other similar corporate change, an equitable adjustment will be made by the Board of Directors, by adjusting (i) the number and/or kind of Class B Subordinate Voting Shares underlying outstanding RSUs, (ii) the factors and manner in which the settlement amount of an RSU is to be determined, or (iii) any other term and condition of the RSUs. Such adjustment will be final and binding on all parties.

The Board of Directors bears full responsibility with regard to the RSU Plan, which includes, but is not limited to, the power and authority to amend, suspend or terminate the RSU Plan, in whole or in part, or amend the terms and conditions of any outstanding RSUs, provided that such amendment, suspension or termination does not adversely alter or impair any RSU previously granted (provided further that the Board of Directors may at its discretion accelerate the vesting or settlement of any RSU regardless of any adverse or potentially adverse tax consequences resulting from such acceleration).

The Company did not grant any RSUs for the fiscal year ended December 30, 2021. As at December 30, 2021, there were 79,440 RSUs outstanding, none of the outstanding RSUs were vested and the weighted average remaining contractual life of these RSUs was 0.92 years.

2009 Executive Deferred Share Unit Plan

On March 11, 2009, the Board of Directors adopted the EDSU Plan for certain of the Company's executives, which was ratified by shareholders at the Company's annual and special general meeting held on May 27, 2009. The purpose of the EDSU Plan is to attract, retain and motivate qualified individuals to serve as executives of the Company and to promote a greater alignment of interests between the executives and shareholders of the Company. In addition, the EDSU Plan is designed to assist the executives in attaining prescribed levels of ownership of the Company's shares.

The following is a description of certain features of the EDSU Plan, as required by the TSX:

• (a) under the EDSU Plan, an executive of the Company may elect annually to have a portion of his or her annual salary and bonus paid in the form of DSUs;
• (b) a participant in the EDSU Plan may also receive dividend equivalents in the form of DSUs;
• (c) the number of DSUs received by an executive is determined by dividing the amount of the salary and bonus to be paid in the form of DSUs on that date or dividends to be paid on the payment date (the "Award Date") by the fair market value of the Class B Subordinate Voting Shares on the Award Date. The Award Date is the last business day of each month of the Company's fiscal year in the case of salary, the date on which the bonus is, or would otherwise be, paid to the participant in the case of bonus, and the date on which the dividends are payable in the case of dividends. The fair market value of the Class B Subordinate Voting

Shares is equal to their weighted average trading price on the TSX for the five trading days preceding the Award Date. In the event that the TSX institutes "due bill trading" with respect to any dividend declared by the Company on the Class B Subordinate Voting Shares, the fair market value of the Class B Subordinate Voting Shares shall be equal to the weighted average trading price of the Class B Subordinate Voting Shares for the five trading days commencing with the first trading day after the dividend payment date. DSUs are credited to an account maintained for each executive by the Company;

• (d) the EDSU Plan defines a "Material Transaction" as (i) the sale by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel to one or more third parties dealing at arm's length with each of them, of at least 75% of the aggregate number of Class A Multiple Voting Shares and Class B Subordinate Voting Shares of the Company held, directly or indirectly, by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel immediately prior to such sale; (ii) a merger, amalgamation, arrangement or other similar transaction between the Company and one or more other persons dealing at arm's length with the Company, as a result of which the shareholders of the Company immediately prior thereto hold in the aggregate less than 50% of the issued and outstanding shares of the Company or other entity resulting from such merger, amalgamation, arrangement or other similar transaction; or (iii) the sale by the Company of all or substantially all of its assets to a third party dealing at arm's length with the Company; or (iv) the sale by the Company, to a third party dealing at arm's length with the Company, of all of the assets of one or more of the Segments or a distinct business or geographical unit or units of any Segment or Segments, or all of the shares of its subsidiary companies comprising any Segment or Segments or a distinct business or geographical unit or units thereof. For greater certainty, "Material Transaction" does not include a sale, merger, amalgamation, arrangement or other similar transaction pursuant to or in connection with any reorganization of the Company or of any segment. In the event of a Material Transaction as defined in clause (iv) above:
• (i) the Termination Date of any Participant who is an employee of a distinct business or geographical unit or a subsidiary company referred to therein shall be deemed to be the closing date of such Material Transaction and upon such Material Transaction, an Eligible Termination of such Participant shall be deemed to have occurred for purposes of this Plan. Further, the Redemption Notice of such Participant shall be deemed to be filed on the closing date of the Material Transaction and the Redemption Date of such Participant shall be the closing date of the Material Transaction; and
• (ii) in regards to U.S. Participants, the EDSU Plan shall be deemed to be liquidated and of no further effect upon payment by the Company to such U.S. Participants;
• (e) upon the termination of an executive's service with the Company, the executive will receive either:
• (i) a cash amount equal to the number of DSUs in the executive's account multiplied by the fair market value of the Class B Subordinate Voting Shares on the date a notice of redemption is filed with the Company by the executive. The fair market value of the Class B Subordinate Voting Shares will be equal to their weighted average trading price on the TSX for the five trading days preceding the redemption date; or
• (ii) a number of Class B Subordinate Voting Shares equal to the number of DSUs in the executive's account. Such Class B Subordinate Voting Shares will be purchased by the Company on the TSX or issued from treasury; or
• (iii) a combination of cash and Class B Subordinate Voting Shares;
• (f) the mode of payment will be determined by the Board of Directors in its discretion. All payments will be made net of applicable taxes;
• (g) participants in the EDSU Plan, other than "insiders" of the Company, are entitled to receive additional DSUs in an amount equal to 10% of the number of DSUs awarded to them;

• (h) the Board of Directors can grant discretionary DSUs to participants in the EDSU Plan, other than "insiders" of the Company;

• (i) the Board of Directors can set vesting conditions for DSUs;

• (j) the Board of Directors can adopt specific provisions for participants in the EDSU Plan resident in a particular country;
• (k) DSUs may not be assigned or transferred. Each participant in the EDSU Plan may designate one or more beneficiaries to receive, in the event of the participant's death, the value of DSUs credited to such participant;
• (l) the EDSU Plan contains restrictions on the number of Class B Subordinate Voting Shares which may be issued thereunder to the Company's "insiders", that is, its directors and officers and those of its subsidiaries. Under the EDSU Plan, no DSU may be issued if such issuance could result, at any time, in the number of Class B Subordinate Voting Shares: (i) issued to "insiders" of the Company within any one-year period; and (ii) issuable to "insiders" of the Company at any time, under the EDSU Plan, or when combined with all of the Company's other security-based compensation arrangements (such as the Stock Option Plan), exceeding 10% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares of the Company;
• (m) subject to the exceptions set out in paragraphs (a) to (c) below, the Board of Directors may amend, suspend or terminate the EDSU Plan, or any portion thereof, at any time, and may do so without shareholder approval, subject to those provisions of applicable law, if any, that require the approval of shareholders or any governmental or regulatory body. Without limiting the generality of the foregoing, the Board of Directors may make the following types of amendments to the EDSU Plan without seeking shareholder approval:
• (i) amendments of a "housekeeping" or ministerial nature including, without limiting the generality of the foregoing, any amendment for the purpose of curing any ambiguity, error or omission in the EDSU Plan or to correct or supplement any provision of the EDSU Plan that is inconsistent with any other provision of the EDSU Plan;
• (ii) amendments necessary to comply with the provisions of applicable law (including, without limitation, the rules, regulations and policies of the TSX);
• (iii) amendments necessary in order for DSUs to qualify for favourable treatment under applicable taxation laws;
• (iv) amendments respecting administration of the EDSU Plan;
• (v) amendments to the definitions of certain terms in the EDSU Plan;
• (vi) amendments to the various forms set out in the schedules to the EDSU Plan;
• (vii) amendments to the redemption provisions of the EDSU Plan or relating to any DSU, whether or not such DSU is held by an "insider" of the Company;
• (viii) amendments necessary to suspend or terminate the EDSU Plan; and
• (ix) any other amendment, whether fundamental or otherwise, not requiring shareholder approval under applicable law (including, without limitation, the rules, regulations and policies of the TSX).

Shareholder approval will be required for the following types of amendments to the EDSU Plan:

• (a) amendments to the maximum number of Class B Subordinate Voting Shares which may be issued from the Company's treasury in aggregate to all participants pursuant to the EDSU Plan, including an increase to a fixed maximum number of shares or a change from a fixed maximum number of shares to a fixed maximum percentage;
• (b) any amendment which increases the number of DSUs that may be issued, or the number of Class B Subordinate Voting Shares that may be issued or paid upon redemption of DSUs, to a participant who is an "insider" of the Company; and

(c) amendments required to be approved by shareholders under applicable law (including, without limitation, the rules, regulations and policies of the TSX).

In the event of any conflict between paragraphs (i) to (ix) and paragraphs (a) to (c) above, the latter will prevail.

Prior to the amendment adopted on March 10, 2022, a maximum of 750,000 Class B Subordinate Voting Shares were issuable from treasury under the EDSU Plan, representing 2.3% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares as at December 30, 2021. As at December 30, 2021, there were an aggregate of 430,164 DSUs outstanding under the EDSU Plan held by an aggregate of 27 of the Company's executives, representing 1.32% of the aggregate number of then-issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares, and 319,836 DSUs remained issuable under the EDSU Plan, representing 0.98% of the aggregate number of then-issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares. ABR for the EDSU Plan, calculated in accordance with section 613(p) of the TSX Company Manual, was nil in each of the fiscal years ended December 30, 2021 and 2020 and 0.14% in the fiscal year ended December 30, 2019.

On March 10, 2022, the Board of Directors adopted an amendment to the EDSU Plan so as to increase the number of Class B Subordinate Voting Shares which are available for issuance under the EDSU Plan by an additional 1,000,000 Class B Subordinate Voting Shares, thereby bringing the maximum number of Class B Subordinate Voting Shares available for issuance from treasury under the EDSU Plan to 1,750,000, representing 6.2% of the currently outstanding Class B Subordinate Voting Shares of the Company and 5.4% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares. See "Business to be Transacted at the Meeting – Amendment to the 2009 Executive Deferred Share Unit Plan" above for additional information in respect of the amendment to the EDSU Plan.

Executive Share Ownership Policy

Under the Company's Executive Share Ownership Policy, each executive is expected to own and maintain ownership of a minimum value of Class B Subordinate Voting Shares and/or DSUs under the EDSU Plan and attain share ownership value within five years (or such later date as may be determined at the discretion of the Board of Directors) from the effective date of becoming a participant. Under the EDSU Plan, the share ownership requirements began in 2010. The value of the required holding in Class B Subordinate Voting Shares and/or DSUs under the EDSU Plan represents three times the annual salary for the President and Chief Executive Officer and the three Executive Vice-Presidents, and 0.75 times the annual salary for the Senior Vice-President, Finance and Assistant-Secretary. Each of the Named Executive Officers currently complies with the minimum share ownership value requirement.

Other Benefits and Perquisites

Other benefits and perquisites to which the President and Chief Executive Officer and three Executive Vice-Presidents are entitled include a \$25,000 taxable allowance for various expenses and a taxable benefit for travel expenditures, while the Senior Vice-President, Finance and Assistant-Secretary is entitled to a car allowance and related expenses. These benefits are designed to be competitive in light of market conditions and are reflected in the "Summary Compensation Table" below.

Deferred Profit Sharing Plan

The Senior Vice-President, Finance and Assistant-Secretary is eligible to join the Deferred Profit Sharing Plan ("DPSP") offered by the Company to certain of its employees. Under the DPSP, certain eligible employees can make contributions in an amount from 1% to 5% of earnings and the Company will contribute 50% of the employee's contributions; however, these amounts may be reduced under the rules of the Income Tax Act (Canada), which limit the amount of contributions to a taxdeferred retirement plan.

Executive Compensation-Related Fees

Executive Compensation-Related Fees

"Executive Compensation-Related Fees" consist of fees for professional services billed by each consultant or advisor, or any of its affiliates, that are related to determining compensation for any of the Company's directors and executive officers. For the fiscal years ended December 30, 2021, 2020 and 2019, Meridian billed the Company \$13,608, \$9,634, and \$26,715, respectively, in Executive Compensation-Related Fees.

"All Other Fees" consist of fees for services that are billed by each consultant or advisor mentioned above and which are not reported under "Executive Compensation-Related Fees". Meridian did not bill the Company for any other fees during the fiscal years ended December 30, 2021, 2020 and 2019.

4. Summary Compensation Table

The following table sets out all annual compensation for services in all capacities to the Company and its subsidiaries for the fiscal years ended December 30, 2021, 2020 and 2019 in respect of the NEOs:

					Non-equity incentive plan compensation (\$)
Name and principal position	Year	Salary (\$)	Share based awards (\$)	RSU awards(3) (\$)	Annual incentive plans(4)	Long term incentive plans(5)	Pension value(6) (\$)	Other annual compensation (\$)	Total compensation (\$)
Martin Schwartz President and	2021	1,084,715	—	—	650,828	549,187	—	25,000(7)	2,309,730
Chief Executive Officer	2020	719,680	910,966(1)	—	910,967	533,041	—	25,000(7)	3,099,654
	2019	1,055,490	399,780(2)	133,260	—	—	—	72,703(7)(9)	1,661,233
Jeff Segel Executive Vice	2021	1,084,715	150,000(1)	—	500,828	549,187	—	25,000(7)	2,309,730
President, Sales	2020	719,680	910,966(1)	—	910,967	533,041	—	25,000(7)	3,099,654
and Marketing	2019	1,055,490	399,780(2)	133,260	—	—	—	72,703(7)(9)	1,661,233
Alan Schwartz Executive Vice	2021	1,084,715	—	—	650,828	549,187	—	25,000(7)	2,309,730
President,	2020	719,680	—	—	1,821,933	533,041	—	25,000(7)	3,099,654
Operations	2019	1,055,490	399,780(2)	133,260	—	—	—	72,703(7)(9)	1,661,233
Jeffrey Schwartz Executive Vice	2021	1,084,715	—	—	650,828	549,187	—	25,000(7)	2,309,730
President, Chief Financial Officer and Secretary	2020	719,680	910,966(1)	—	910,967	533,041	—	25,000(7)	3,099,654
	2019	1,055,490	399,780(2)	133,260	—	—	—	72,703(7)(9)	1,661,233
Frank Rana Senior Vice	2021	681,010	130,000(1)	—	306,445	344,793	—	9,275(8)	1,471,523
President,	2020	684,600	—	—	848,038	334,750	—	9,072(8)	1,876,460
Finance and Assistant Secretary	2019	601,042	243,750(2)	81,250	—	—	—	34,711(8)(9)	960,753

(1) As part of the compensation for the fiscal year ended December 30, 2021, Jeff Segel and Frank Rana each elected to receive \$150,000 and \$130,000, respectively, under the annual incentive plan in the form of DSUs pursuant to the EDSU Plan. For the fiscal year ended December 30, 2020, Martin Schwartz, Jeff Segel and Jeffrey Schwartz each elected to receive \$910,966 under the annual incentive plan in the form of DSUs pursuant to the EDSU Plan.

(2) The Company granted PSUs pursuant to the PSU Plan during the fiscal year ended December 30, 2019; none were granted for the fiscal years ended December 30, 2021 and 2020. For more information, see the description of the PSU Plan above. The amount shown for the PSUs is the grant date target value. The amounts are equal to the number of PSUs granted on December 5, 2019 for the year 2019 multiplied by the weighted average trading price of the Class B Subordinate Voting Shares on the TSX for the five trading days preceding the grant dates (\$34.95 for the grant on December 5, 2019). These amounts do not reflect the current value of the PSUs or the value, if any, that may be received when the PSUs are settled.

(3) The Company granted RSUs pursuant to the RSU Plan during the fiscal year ended December 30, 2019; none were granted for the fiscal years ended December 30, 2020 and 2021. For more information, see the description of the RSU Plan above. The amount shown for the RSUs is the grant date target value. The amounts are equal to the number of RSUs granted on December 5, 2019 for the year 2019 multiplied by the weighted average trading price of the Class B Subordinate Voting Shares on the TSX for the five trading days preceding the grant date (\$31.61 for the grant on December 5, 2019). The amounts do not reflect the current value of the RSUs or the value that may be received when the RSUs are settled.

(4) In 2021, the Company did not attain its EBIT performance target but did achieve its CCC performance metric at 85 days and met its strategic objectives. In 2020, the Company achieved 116% of its EBIT performance target, surpassed its CCC performance metric at 80 days and its strategic objectives were substantially met. In 2019, as regards annual incentive payouts, the Company did not attain its EBIT target but did achieve its CCC performance metric at 100 days and strategic objectives were partially met. For 2019, each of the NEOs waived the annual incentive to which he was entitled.

(5) The Company granted long-term cash incentive awards during the fiscal year ended December 30, 2021 and 2020. The long-term cash incentive awards are contingent on the Company achieving annually-defined EBIT performance objectives as approved by the HRCC covering a three-year period. For 2021, the Company achieved 0% of the EBIT performance target and for year 2020, the Company achieved 116% of the EBIT performance target. For the year 2020, for each of the President and Chief Executive Officer and the three Executive Vice-Presidents, this resulted in earned compensation of

\$234,538, and for the Senior Vice-President, Finance and Assistant Secretary, resulted in earned compensation of \$147,290. The total amount of the payout can be determined only after the last year of the three-year performance cycle, when the Board of Directors approves the financial statements for the last fiscal year covered by the long-term cash incentive award. As a result, the final long-term cash incentive award payout will occur in 2023 for the long-term cash incentive award granted in 2020 and year 2024 for the long-term cash incentive award granted in 2021 and hence, the amounts paid may differ from those set out in the table above.

• (6) The Company does not have a retirement plan.
• (7) The amounts related to the President and Chief Executive Officer and three Executive Vice-Presidents include a \$25,000 taxable allowance for various expenses.
• (8) These amounts represent the Company's contribution to the DPSP. Perquisites and other personal benefits provided to this NEO, in aggregate, do not exceed the lesser of \$50,000 and 10% of his annual salary for the 2021, 2020 and 2019 fiscal years, respectively.
• (9) These amounts also include the value of the additional PSUs and RSUs credited to each NEO to account for the issuance of dividends during the year. This value is based on the weighted average trading price of the Class B Subordinate Voting Shares on the TSX for the five trading days preceding the date on which the dividends were payable.

5. Incentive Plan Awards

Outstanding Share-Based Awards

The following table sets out all share-based awards, consisting of RSUs and PSUs, held by the NEOs as at December 30, 2021. The NEOs do not hold any option-based awards.

		RSU awards		PSU awards
Name	Number of RSUs that have not vested (#)	Market or payout value of RSUs that have not vested(1) (\$)	Market or payout value of vested RSUs not paid out or distributed(3) (\$)	Number of PSUs that have not vested (#)	Market or payout value of PSUs that have not vested(2) (\$)	Market or payout value of vested PSUs not paid out or distributed(3) (\$)
Martin Schwartz	4,216	84,025	—	10,981	218,851	—
Jeff Segel	4,216	84,025	—	10,981	218,851	—
Alan Schwartz	4,216	84,025	—	10,981	218,851	—
Jeffrey Schwartz	4,216	84,025	—	10,981	218,851	—
Frank Rana	2,570	51,220	—	6,695	133,431	—

(1) This column sets out the market value of the unvested RSUs using the closing price (\$19.93) of the Class B Subordinate Voting Shares on the TSX on December 30, 2021, the last day of the Company's most recently-completed fiscal year. The market value is based on all RSUs granted including RSUs credited as dividend equivalents. This actual payment will depend on the value of the Class B Subordinate Voting Shares on the date on which the RSUs vest.

(2) This column sets out the market value of the unvested PSUs using the closing price (\$19.93) of the Class B Subordinate Voting Shares on the TSX on December 30, 2021, the last day of the Company's most recently-completed fiscal year. PSUs were valued based on the aggregate payout expected using a multiplier of 91% applied to PSUs granted in 2019 and vesting in 2022. The market value is based on all PSUs granted including PSUs credited as dividend equivalents. This value has not been, and may never be, realized.

(3) As at December 30, 2021, none of the outstanding RSUs and PSUs held by the NEOs had vested.

Incentive Plan Awards – Value Vested or Earned During the Year

The following table sets out, for each NEO, the value of incentive plan awards, consisting of RSUs and PSUs, that vested during the fiscal year ended December 30, 2021 and the amount of bonus and long-term incentive plan awards earned with respect to performance achieved during fiscal 2021:

		Non-equity incentive plan compensation – Value earned during the year(3)
Value vested during the year(1) (\$)	Value vested during the year(2) (\$)	Annual incentive plan (\$)	Long-term incentive plans (\$)
102,728	133,897	650,828	—
102,728	133,897	500,828	—
102,728	133,897	650,828	—
102,728	133,897	650,828	—
53,566	69,818	306,445	—
	RSU awards –	PSU awards –

• (1) This column sets out the value of RSUs that vested on July 4, 2021. The value is calculated by multiplying the number of RSUs vested at the vesting date by the weighted average trading price of the Class B Subordinate Voting Shares on the TSX for the five trading days immediately preceding the vesting date. The value represents the actual payout during the year, as the vested RSUs were settled on July 15, 2021.
• (2) This column sets out the value of the PSUs that vested on March 11, 2021. The value is calculated by multiplying the number of PSUs vested at the vesting date by the weighted average trading price of the Class B Subordinate Voting Shares on the TSX for the five trading days commencing two business days after March 11, 2021, the date on which the Company announced its financial results for the fiscal year ended December 30, 2021. The value represents the actual payout during the year, as the PSUs vested and were settled on July 15, 2021.
• (3) Corresponds to the amounts disclosed above in the "Summary Compensation Table" and in note 5 thereto.

Pension Plan Benefits

The Named Executive Officers are not participants in any defined benefit plan.

Termination and Change of Control Benefits

Frank Rana, Senior Vice-President, Finance and Assistant-Secretary

Effective December 1, 2016, the Company entered into an Employment Agreement (the "Employment Agreement") with Frank Rana, Senior Vice-President, Finance and Assistant-Secretary, one of the Company's NEOs. This section describes the benefits applicable in the event of termination of Mr. Rana's employment or a change of control of the Company.

The Employment Agreement is for an indeterminate term and provides that the Company may terminate Mr. Rana's employment at any time for cause without notice or any compensation in lieu of notice, or any other compensation whatsoever.

The Employment Agreement provides that if the Company terminates Mr. Rana's employment without cause, Mr. Rana will be entitled to the following payments and benefits, in addition to his base salary, bonus, benefits and expenses due and owing at the date of termination, subject to applicable withholding taxes:

• a salary continuance or a lump-sum payment in an amount equal to two times the average of the total annual compensation paid to Mr. Rana during the two-year period preceding his termination of employment, as set out under the "Summary Compensation Table" in the management proxy circular of the Company; and
• a continuance for a period of two years following termination of Mr. Rana's automobile benefit, and group insurance and RRSP/DPSP benefits.

All of Mr. Rana's rights and entitlements in respect of stock options, DSUs, PSUs, RSUs and long-term incentives will be governed exclusively by the terms of the relevant Stock Option Plan, EDSU Plan, PSU Plan, RSU Plan, LTIP or agreement or other applicable plan or agreement and any document or contract ancillary thereto.

The following table sets out the estimated incremental payment that Mr. Rana would have received had his employment been terminated without cause on December 30, 2021, the last business day of the Company's most recently-completed fiscal year. Mr. Rana would have been entitled to receive an incremental payment of approximately \$3,202,000, subject to applicable withholding taxes.

	Amounts Due on Termination
		Contractual Severance(1)			Long-Term Incentive Plans
Annual Other Annual Incentive Share-Based Compensation (2) Salary Bonus Awards RSU Awards (\$) (\$) (\$) (\$) (\$)					PSU and RSU Units Plans(3) (\$)	Non equity Incentive Plans(4) (\$)	Total (\$)
1,366,000	1,284,000	55,000	87,000	78,000	185,000	147,000	3,202,000

⁽¹⁾ The amounts stated under this caption represent two times the average of the total annual compensation paid to Mr. Rana in the years 2021 and 2020, as set out under the "Summary Compensation Table" in this Circular.

⁽²⁾ Automobile benefits, group insurance and RRSP/DPSP benefits have been included under "Other Annual Compensation".

⁽³⁾ PSU and RSU grants are reduced in proportion to the length of service between the award date and the date of departure to the length of the total vesting period, subject to meeting the performance objectives.

⁽⁴⁾ The Non-Equity Incentive Plans are reduced pro rata to the length of service from the award date to the date of departure compared to the length of the total vesting period, subject to meeting the performance objectives.

The Employment Agreement includes non-competition and non-solicitation clauses that are in effect for so long as Mr. Rana is an employee of the Company and for a period of twelve months immediately following the date on which he ceases to be an employee, for whatever reason. The Employment Agreement also includes a mutual non-disparagement clause. The Employment Agreement provides that the Company may waive a breach of any provision of the Employment Agreement by Mr. Rana, which waiver must be in writing and signed by the Company.

Change of Control

The Company and Mr. Rana have entered into an amended Capital Appreciation Bonus Agreement (the "Bonus Agreement") dated July 30, 2021 which provides that in the event of a material transaction, as defined in the Bonus Agreement, Mr. Rana will be entitled to a bonus payment in an amount equal to 1.15% of the increase in value, if any, between the value of the Company or of each Segment or any distinct business or geographical unit sold on the effective date of such transaction, as determined by the Board of Directors based on the recommendation of the Chief Executive Officer and Chief Financial Officer, acting together and in their discretion, and the specified value of the part(s) of such Segment or Segments sold as set out in the Bonus Agreement. Similarly, in the event that Mr. Rana's employment terminates by reason of his death, or in the event that Mr. Rana's employment is terminated at any time without cause, as that term is defined in the Employment Agreement, and a change of control of the Company, as defined in the Bonus Agreement, occurs at any time during a period of twelve months immediately following such death or termination without cause, Mr. Rana or his estate, as the case may be, will be entitled to receive the bonus, determined and paid in accordance with the provisions of the Bonus Agreement. The Company will pay 75% of the bonus to Mr. Rana or his estate, as the case may be, within five business days from the effective date of the change of control, and pay 25% of the bonus not later than one year after the effective date.

The Company cannot provide a reasonable estimate of the amount of the bonus payable to Mr. Rana, or a reasonable estimate of the range of amounts, in this Circular as the baseline amount for determining the amount of the bonus payable to Mr. Rana is considered by the Company to be confidential.

Other NEOs

Pursuant to the current employment practices of the Company, the compensation of each of the NEOs is reviewed and determined on an annual basis by the HRCC as described in the Executive Compensation Section "Compensation Discussion and Analysis" of this Circular.

Effective October 1, 2021, the Company and each of Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel entered into a Bonus Award Agreement which provides each with the opportunity to earn a Shareholder Return Bonus in the event of the sale by the Company of the Juvenile Segment, Home Furnishings Segment and Sports Segment (the "Three Segments") by December 31, 2026 (the "Term"). In the event that the sale of the Three Segments does not occur during the Term, no Shareholder Return Bonus will be earned or payable under the Bonus Award Agreements. In the event that a sale of the Three Segments occurs during the Term, each of the executives will be entitled to receive a Shareholder Return Bonus based on the total shareholder return to the shareholders of the Company ("TSR") resulting from the sale of the Three Segments. The amount of the Shareholder Return Bonus will be based on the levels of TSR attained and the Shareholder Return Bonus payout as set out in the Bonus Award Agreement.

As of the date of this Circular, the Company does not have employment, termination or severance agreements or arrangements, including change of control arrangements, with Messrs. Martin Schwartz, Alan Schwartz, Jeffrey Schwartz or Jeff Segel. If the employment of any of these NEOs is terminated, the NEO will be entitled to the same rights as those available to all employees under the laws applicable to their employment.

6. Performance Graph

The following graph compares the cumulative total shareholder return of a \$100 investment in the Class A Multiple Voting Shares (DII.A) and Class B Subordinate Voting Shares (DII.B) of the Company, respectively, made on December 31, 2016 with the cumulative return of the S&P/TSX Composite Index for the period from December 31, 2016 to December 30, 2021.

The above performance graph shows that the cumulative shareholder return for an investment in the shares of the Company has not followed a similar trend to the broad index over the past five years. In particular, the variation between the two was significant from May 2018 to March 2020, during which period the price of the Company's shares fell. Increases in base salaries in the past years have been limited so as to put more emphasis on variable compensation. Further, the annual incentives are based on the fiscal year's predetermined financial performance targets. In 2021, the Company did not attain its EBIT performance target but did achieve its CCC performance metric at 85 days and its strategic objectives were met. In 2020, the Company achieved 116% of its EBIT performance target, surpassed its CCC performance metric at 80 days and its strategic objectives were substantially met. In 2019, the Company did not achieve its EBIT performance target but did achieve its CCC performance metric at 100 days and strategic objectives were partially met. For 2019, each of the NEOs waived the annual incentive to which he was entitled. In 2018, the Company did not achieve its EBIT performance target while its CCC performance metric was achieved at 99 days and the strategic initiatives were met. In 2017, the Company achieved 90% of its EBIT performance target while its CCC performance metric was achieved at 105 days and the strategic initiatives were met. Finally, the value of the long-term incentives in the form of PSUs, SARs and RSUs are tied to increases in the market value of the Company's shares.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The following table sets out certain details as at December 30, 2021, the end of the Company's most recently-completed fiscal year, with respect to compensation plans pursuant to which equity securities of the Company are authorized for issuance.

Plan Category	Number of shares to be issued upon exercise of outstanding options, warrants and rights (a)	Weighted-average exercise price of outstanding options, warrants and rights (b)	Number of shares remaining available for future issuance under the Equity Compensation Plans (excluding securities reflected in column (a)) (c)
Equity compensation plans previously approved by shareholders - Options	—	—	4,657,750
Equity compensation plans previously approved by shareholders - Directors' DSUs	161,304	\$24.32	188,696
Equity compensation plans previously approved by shareholders - Executive DSUs	430,164	\$17.17	319,836

The options referred to in the table above are available under the Stock Option Plan. See "2004 Stock Option Plan" above for a description of the material features of the Stock Option Plan. The DSUs referred to in the table above were issued pursuant to the EDSU Plan and DSU Plan. See "Executive Compensation – 1. Compensation Discussion and Analysis – Executive Deferred Share Unit Plan" and "Compensation of Directors – Directors' Shareholding Requirements" above for a description of the material features of the EDSU Plan and DSU Plan, respectively.

INFORMATION ON THE AUDIT COMMITTEE

The Audit Committee of the Board of Directors is comprised of Sharon Ranson (Chair), Alain Benedetti and Brad A. Johnson, each of whom is an "independent" director within the meaning of National Instrument 52-110 Audit Committees. Reference is made to the section entitled "Information on the Audit Committee" of the Company's Annual Information Form dated March 30, 2022 for the fiscal year ended December 30, 2021 for required disclosure relating to the Audit Committee. The Annual Information Form is available under the Company's profile on SEDAR at www.sedar.com and a copy may be obtained upon request from the Company at 1255 Greene Ave., Suite 300, Westmount, Québec H3Z 2A4; telephone (514) 934-3034; fax (514) 934-9379; e-mail: info@dorel.com.

INDEBTEDNESS OF DIRECTORS AND OFFICERS

No person who is, or who was at any time during the fiscal year ended December 30, 2021, a director, executive officer or senior officer of the Company or a subsidiary thereof, and no person who is a nominee for election as a director of the Company, and no associate of such persons, is, or was at any time since the beginning of the fiscal year ended December 30, 2021, indebted to the Company or a subsidiary of the Company, nor has any such person been indebted at any time since the beginning of the fiscal year ended December 30, 2021 to any other entity where such indebtedness is the subject of a guarantee, support agreement, letter of credit or other similar arrangement or understanding provided by the Company or a subsidiary of the Company.

CORPORATE GOVERNANCE

The Board of Directors of the Company is committed to maintaining high standards of corporate governance. The Board of Directors has instituted and maintains the following policies:

• holding regular meetings of the independent directors without the presence of management or non-independent directors;

• ensuring that the Company's Lead Director, if any, is independent of management;

• all members of the Audit Committee, HRCC and CGNC are independent;

• a formal disclosure policy exists for all employees, including access to confidential information with respect to the Company, ensuring timely and accurate disclosure;
• a policy on financial reporting adhered to by applicable personnel;
• policies on "whistle-blowing" and "incident reporting" are to be followed throughout the Company;
• a policy on "Trade Control and Anti-Bribery" is to be followed throughout the Company;
• a policy on consulting services administered by the Audit Committee, including the exclusion of specific non-audit services that cannot be provided by the Company's external auditors;
• compliance with trading restrictions and blackout periods with respect to trading in the Company's shares is required for all employees and directors;
• a formal Code of Business Conduct that establishes a high standard for ethical behaviour among management, employees and directors is to be signed each year;
• matters requiring prior approval from the Board of Directors of the Company;
• ensuring that the Stock Option Plan restricts the number of options outstanding at any time to less than 10% of the number of issued and outstanding shares of the Company; and
• restricting options held by any one "insider" to less than 5% of the issued and outstanding shares of the Company.

Corporate Governance Guidelines

National Policy 58-201 Corporate Governance Guidelines and National Instrument 58-101 Disclosure of Corporate Governance Practices set out a series of guidelines for effective corporate governance. The guidelines address matters such as the composition and independence of corporate boards, the functions to be performed by boards and their committees, and the effectiveness and education of board members. Each reporting issuer, such as the Company, must disclose on an annual basis and in prescribed form, the corporate governance practices that it has adopted.

A complete description of the Company's approach to corporate governance, with a specific reference to each guideline, is set out in the "Statement of Corporate Governance Practices" annexed as Schedule A to this Circular. This disclosure statement has been approved by the CGNC and the Board of Directors.

INTEREST OF INFORMED PERSONS IN MATERIAL TRANSACTIONS

Other than as set out below, no "informed person" of the Company, that is: (a) the directors and executive officers of the Company; (b) any person who beneficially owns, or exercises control or direction over, directly or indirectly, more than 10% of the Company's outstanding voting shares; or (c) any director or executive officer of a person referred to in (a) above, or any proposed director or associate or affiliate of any "informed person" or proposed director of the Company, has any material interest, direct or indirect, in any transaction since December 31, 2020 or in any proposed transaction which has materially affected or would materially affect the Company or any of its subsidiaries.

The Company entered into an Arrangement Agreement dated November 12, 2020, as amended on January 31, 2021, with an affiliate (the "Purchaser") of funds managed by Cerberus Capital Management, L.P., which provided that a buyer group led by the Purchaser would acquire, for a purchase price of \$16.00 in cash per share, all of the Company's issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares, except for shares then owned by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz, Jeff Segel and certain members of their respective immediate families, by way of a statutory plan of arrangement under the Business Corporations Act (Québec). On February 15, 2021, the Arrangement Agreement was terminated by mutual agreement of Dorel and the Purchaser. Each of Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel is a director and executive officer of the Company. Schwartz Segel G.P., which beneficially owns, or exercises

control or direction over, directly or indirectly, more than 10% of the Class A Multiple Voting Shares of the Company, is a partnership indirectly controlled in the aggregate by Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel. See "Principal Shareholders" above.

SHAREHOLDER PROPOSALS

The Business Corporations Act (Québec) provides, in effect, that a registered holder or beneficial owner of shares that is entitled to vote at an annual meeting of the Company may submit to the Company notice of any matter that the person proposes to raise at the meeting (referred to as a "Proposal") and discuss at the meeting any matter in respect of which the person would have been entitled to submit a Proposal. The Business Corporations Act (Québec) further provides, in effect, that the Company must set out the Proposal in its management proxy circular along with, if so requested by the person who makes the Proposal, a statement in support of the Proposal by such person. However, the Company will not be required to set out the Proposal in its management proxy circular or include a supporting statement if, among other things, the Proposal is not submitted to the Company at least 90 days before the anniversary date of the notice of meeting that was sent to the shareholders in connection with the previous annual meeting of shareholders of the Company. As the notice in connection with the Meeting is dated April 12, 2022, the deadline for submitting a proposal to the Company in connection with the next annual meeting of shareholders is January 12, 2023.

The foregoing is a summary only; shareholders should carefully review the provisions of the Business Corporations Act (Québec) relating to Proposals and consult with a legal advisor.

INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON

The Company is not aware of any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, of (i) any person who has been a director or executive officer of the Company at any time since the beginning of the Company's last financial year, (ii) any nominee for election as director of the Company, or (iii) any associate or affiliate of the persons listed in (i) and (ii), in any matter to be acted upon at the Meeting, other than confirmation of the amendments to the DSU Plan and EDSU Plan, respectively.

OTHER MATTERS

Management of the Company knows of no other matter to come before the Meeting other than those referred to in the Notice of Meeting. However, if any other matters that are not known to management should properly come before the Meeting, the accompanying form of proxy confers discretionary authority upon the persons named therein to vote on such matters in accordance with their best judgment.

ADDITIONAL INFORMATION

Financial information regarding the Company is provided in the Company's comparative consolidated financial statements and Management's Discussion and Analysis for the fiscal year ended December 30, 2021 and additional information relating to the Company is available under the Company's profile on SEDAR at www.sedar.com. Copies of the annual comparative consolidated financial statements, Management's Discussion and Analysis and this Circular may be obtained upon request from the Company at 1255 Greene Ave., Suite 300, Westmount, Québec H3Z 2A4; telephone (514) 934-3034; fax (514) 934-9379; e-mail: info@dorel.com.

Corporate information is also available on the Company's website: www.dorel.com.

DIRECTORS' APPROVAL

The Board of Directors of the Company has approved the contents and the mailing of this Circular.

Jeffrey Schwartz Executive Vice-President, Chief Financial Officer and Secretary

DATED at Montréal, Québec April 12, 2022

SCHEDULE A STATEMENT OF CORPORATE GOVERNANCE PRACTICES

1. Board of Directors

The Board of Directors considers that five of the nine current directors are independent within the meaning of National Instrument 52-110 Audit Committees. Accordingly, a majority of the Board of Directors is independent.

The Board of Directors considers that Alain Benedetti, Brad A. Johnson, Sharon Ranson, Norman M. Steinberg and Maurice Tousson are independent within the meaning of National Instrument 52-110 Audit Committees, and that Martin Schwartz, Alan Schwartz, Jeff Segel and Jeffrey Schwartz are not independent within the meaning of National Instrument 52-110 Audit Committees in that each is an executive officer of the Company.

In addition, all three members of the Audit Committee are independent directors. The members of the Audit Committee are Sharon Ranson (Chair), Alain Benedetti and Brad A. Johnson.

If all persons nominated for election as directors at the Meeting are elected, the Board of Directors considers that five of the nine directors will be independent within the meaning of National Instrument 52-110 Audit Committees.

The following directors are currently director(s), trustee(s) or governor(s) of other issuers that are reporting issuers (or the equivalent) in a jurisdiction of Canada or a foreign jurisdiction:

Name of Director	Issuer
Jeffrey Schwartz	Tucows Inc.
Sharon Ranson	Fire & Flower Holdings Corp. IBI Group ICPEI Holdings Inc. Sprott Inc.
Norman M. Steinberg	Atco Fiera Capital Corporation

Effective April 1, 2021, the Board of Directors appointed Norman M. Steinberg and Maurice Tousson, each an independent director, as Co-Chairpersons of the Board of Directors. Prior thereto, the Company did not have a Chair; accordingly, Maurice Tousson, an independent director, served as "Lead Director". As each of the Co-Chairpersons is an independent director, the position of "Lead Director" is redundant and has been left vacant.

Previously, Mr. Tousson, as "Lead Director", chaired meetings of the Board of Directors. At present, meetings of the Board of Directors are chaired by either Mr. Steinberg or Mr. Tousson. As Co-Chairpersons, Messrs. Steinberg and Tousson provide leadership in ensuring Board effectiveness and are responsible for facilitating and encouraging open and effective communication between the management of the Company and the Board of Directors, consulting with the President and Chief Executive Officer in setting the agenda for Board meetings, ensuring Board committees function appropriately, and chairing meetings of the independent members of the Board of Directors.

At each meeting of the Board of Directors, the independent directors hold an in camera meeting at which the nonindependent directors and members of management are not in attendance. During the fiscal year ended December 30, 2021, the independent directors held 28 such meetings.

The Board of Directors has given the CGNC (chaired by Norman M. Steinberg, an independent director) the responsibility for ensuring that the Board of Directors functions independently of management.

From December 31, 2020 to the date hereof, the Board of Directors held 32 meetings, the Audit Committee held five meetings, the HRCC held eleven meetings and the CGNC held six meetings. The Company does not have an Executive Committee. Attendance of directors at the meetings is set out in the table below.

		Audit Committee	HRCC	CGNC
	Board Meetings	Meetings(3)	Meetings(6)	Meetings(4) (7)	Total
Schwartz(1) Martin	29/29	––	––	––	29/29
Segel(2) Jeff	29/29	––	––	––	29/29
Schwartz(2) Alan	29/29	––	––	––	29/29
Schwartz(1) Jeffrey	29/29	––	––	––	29/29
Alain Benedetti	28/32	5/5	11/11	1/1	45/49
Cohen(5) Dian	30/30	2/2	10/10	2/2	44/44
Brad A. Johnson	31/32	3/3	1/1	6/6	41/42
Sharon Ranson	32/32	5/5	––	––	37/37
Norman M. Steinberg	32/32	––	––	6/6	38/38
Maurice Tousson	32/32	––	11/11	3/3	46/46

(1) Member of the Disclosure Committee.

(2) Did not serve on any committees of the Board of Directors during the fiscal year ended December 30, 2021.

(3) Effective April 1, 2021, Brad A. Johnson was appointed as a member of the Audit Committee in replacement of Dian Cohen.

(4) Effective April 1, 2021, Dian Cohen was appointed as a member of the CGNC in replacement of Maurice Tousson.

(5) Dian Cohen resigned from the Board of Directors on February 10, 2022.

(6) Effective March 10, 2022, Brad A. Johnson was appointed as a member of the HRCC in replacement of Dian Cohen.

(7) Effective March 10, 2022, Alain Benedetti was appointed as a member of CGNC in replacement of Dian Cohen.

2. Board Mandate

The Board of Directors does not currently have a written mandate. The primary role and responsibility of the Board of Directors is to supervise the management of the business and affairs of the Company and to act in the best interests of the Company. In fulfilling its mandate, the Board of Directors' responsibilities include the following:

• (i) approving quarterly financial statements, the declaration of dividends, material press releases, annual reports, annual financial statements, annual information forms and management proxy circulars;
• (ii) appointing senior officers;
• (iii) appointing members to the Audit Committee, HRCC, CGNC, Disclosure Committee and, if applicable, other committees of the Board of Directors and determining their respective mandates;
• (iv) discussing and analyzing opportunities as they present themselves to the Company;
• (v) reviewing and authorizing material transactions; and
• (vi) approving transactions subject to the Board Approval Policy. The following are certain matters which require approval of the Board of Directors under the Board Approval Policy:
• the Company's corporate status;
• capital debt financing;
• issuance or repurchase of the Company's securities;
• dividends and other distributions;
• investments;
• material acquisitions and divestitures; and
• any other transactions which would materially affect the financial position of the Company.

3. Position Description

Effective April 1, 2021, the Board of Directors appointed Norman M. Steinberg and Maurice Tousson, each an independent director, as Co-Chairpersons of the Board of Directors. Prior thereto, the Company did not have a Chair; Maurice Tousson, an independent director, served as "Lead Director". As each of the Co-Chairpersons of the Board is an independent director, the position of "Lead Director" is redundant and has been left vacant.

The Board of Directors has not developed written position descriptions for the Co-Chairpersons of the Board of Directors or for the chairs of the committees of the Board of Directors and did not previously develop a written position description for the Lead Director.

The primary role and responsibility of the Co-Chairpersons of the Board are to provide leadership in ensuring Board effectiveness; the Co-Chairpersons are responsible for facilitating and encouraging open and effective communication between management of the Company and the Board of Directors, consulting with the President and Chief Executive Officer in setting the agenda for Board meetings, ensuring Board committees function appropriately, and chairing Board of Directors' meetings and meetings of the independent members of the Board of Directors. These tasks were previously carried out by the Lead Director.

The primary role and responsibility of the chair of each committee of the Board of Directors is to: (i) in general, ensure that the committee fulfills its mandate, as determined by the Board of Directors; (ii) chair meetings of the committee; (iii) report thereon to the Board of Directors; and (iv) act as liaison between the committee and the Board of Directors and, if necessary, management of the Company.

The Board of Directors and the President and Chief Executive Officer have not developed a written position description for the President and Chief Executive Officer. The primary role and responsibility of the President and Chief Executive Officer is to direct, supervise, coordinate and assume overall management responsibility for all areas of the Company's business. In particular, the President and Chief Executive Officer is responsible for: (i) developing the strategic direction for the business and evaluating alternative market strategies; (ii) identifying competitive issues; (iii) capitalizing on the core strengths of the Company; (iv) developing and implementing operating plans to achieve the Company's objectives; (v) motivating, measuring, coaching and mentoring the management staff and employee base to ensure optimum operating performance; (vi) working closely with the Board of Directors to keep it informed, thus enabling it to render effective counsel to the Company; and (vii) representing the Company, as appropriate, in its relationships with major customers, suppliers, the banking and financial community, and the public to promote a positive image in the industry and to promote business growth and success.

4. Orientation and Continuing Education

The Company provides an orientation program for new directors in the form of a documented orientation package, including committee charters, Company policies, related-party transaction confirmation, etc., and informal meetings with members of senior management, complemented by presentations on the main areas of the Company's business.

On an ongoing basis, directors receive updates on developments in the industry, economic developments in the geographical areas in which the Company is active and communications from the President and Chief Executive Officer to employees. In addition, the directors participate in the Company's annual two-day strategic planning session with Company executives from around the world to review and discuss market trends, challenges and opportunities. The directors are experienced members, including some who are directors of other reporting issuers. The Board of Directors relies on professional assistance when judged necessary in order to be educated or updated on a particular topic.

5. Ethical Business Conduct

The Company has adopted a Code of Ethics, referred to as the Code of Business Conduct (the "Code"), which is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website. A copy of the Code can also be obtained by contacting the Secretary of the Company.

The Board of Directors, through the Audit Committee, has the responsibility for periodically reviewing the Code; it monitors adherence thereto in part by an annual signed acknowledgment from virtually all employees, officers and directors of the Company. In 2021, the Company renewed the Code, which was reviewed and approved by the Board of Directors prior to distribution to the Company's employees, officers and directors. The Company did not file any material change reports since the beginning of its most recently-completed financial year that pertain to any conduct of a director or executive officer that constitutes a departure from the Code.

The Board of Directors ensures independent judgment through the enforcement of the Code, which contains the following excerpt detailing the Company's policy on conflicts of interest:

"It is essential to remain free of, or disclose, commitments and relationships that involve, or could involve actual, perceived or eventual conflicts of interest with the Company.

A conflict of interest can exist when one has a direct or indirect personal interest in a decision being made where that decision should be made objectively, free from bias and in the best interests of the Company. It is important that even the appearance of a conflict of interest be avoided.

Loans to you or guarantees of your obligations and your family members by the Company may create conflicts of interest and in certain instances are prohibited by law.

It is a conflict of interest for you to work for a competitor, customer or supplier. You should avoid any direct or indirect interest with the Company's customers, suppliers, contractors or competitors except as required on the Company's behalf.

Anything that could present a conflict of interest could also present a conflict of interest if it is passed on to a family member or a third party who is receiving benefits for you.

Common sense and good judgment must be exercised to avoid any perception of impropriety or conflict of interest.

If you believe that you may be affected by a conflict of interest, you must immediately disclose all relevant details to your supervisor who will then notify your President and/or Chief Financial Officer (or equivalents) in their role as certification officers for your division."

If such a potential transaction or agreement arises, any member of the Board of Directors who has a material interest therein does not participate during that part of the meeting of the Board of Directors at which the potential transaction or agreement is considered.

Additionally, on a quarterly basis, each director confirms in writing whether or not there exists a related-party transaction or relationship between the director and another party. Should such a transaction or relationship exist, it is reviewed by the Board of Directors to ensure it does not have any ramifications that could be considered as creating a conflict of interest.

Additionally, the Board of Directors has adopted the following policies, all of which provide for direct contact with specific members of the Board of Directors:

• Policy on Incident Reporting;
• Policy on Whistle Blowing;
• Policy on Financial Reporting; and
• Policy on Trade Control and Anti-Bribery.

The Board of Directors will continue to monitor the Code and the foregoing policies on an annual basis and revise them as necessary should the environment require such a change. Additionally, the Code stipulates the expectation that all consultants and suppliers of the Company comply therewith. As such, the Company has issued a Policy on Supplier's Code of Conduct, which specifies that the Company's suppliers must have the willingness and ability to conduct their business in conformity with all applicable legal requirements and ethical standards.

6. Nomination of Directors

In 2015, the Board of Directors constituted the CGNC. The CGNC is responsible for reviewing the qualifications of nominees for election or re-election as members of the Board of Directors, and monitoring the size, composition and profile of the Board of Directors, Audit Committee, HRCC and CGNC to ensure that they provide the best mix of skills and experience to guide the long-term strategy and ongoing business operations of the Company.

The CGNC is also responsible for reviewing and proposing to the Board of Directors criteria for selecting new directors to be recruited. Criteria may include, but are not limited to, age, gender, geographical representation, disciplines, and other factors that the CGNC considers appropriate.

The CGNC recommends to the Board of Directors suitable candidates for election to the Board of Directors by the shareholders. The CGNC members' networks or a third-party recruiter may be used to find the suitable candidate(s).

As a result of the most recent assessment of the performance of the Board of Directors by its members, and taking into account the number of directors standing for re-election at the Meeting, the CGNC and the Board of Directors are of the view that the size, composition and profile of the Board of Directors are well suited to the Company's current circumstances and needs, allow for efficient functioning of the Board of Directors as a decision-making body, and promote sound corporate governance.

The CGNC is composed entirely of independent directors. The members of the CGNC are Norman M. Steinberg (Chair), Brad A. Johnson and Alain Benedetti.

The CGNC is responsible for making recommendations to the Board of Directors on all matters relating to the composition of the Board of Directors.

7. Compensation

The CGNC reviews the compensation of the Company's directors annually and is mandated to review and recommend to the Board of Directors for approval the remuneration of directors. The CGNC considers time commitment, comparative fees and responsibilities in determining remuneration.

The HRCC is composed entirely of independent directors. The members of the HRCC are Maurice Tousson (Chair), Alain Benedetti and Brad A. Johnson.

The HRCC assumes responsibility for making recommendations to the Board of Directors on all matters relating to the compensation of certain employees of the Company.

The Board of Directors has adopted a share ownership policy under which certain executives are expected to own and maintain ownership of a minimum value of Class B Subordinate Voting Shares and/or DSUs under the EDSU Plan, and attain share ownership value within seven years (or such later date as may be determined at the discretion of the Board of Directors) from the effective date of becoming a participant. Under the EDSU Plan, the share ownership requirements began in 2010. The value of the required holding in Class B Subordinate Voting Shares and/or DSUs under the EDSU Plan represents a multiple of annual salary, which is a function of the position held.

In 2017, the HRCC retained the services of Meridian to provide short-term and long-term compensation advice for various positions in the Company for which new compensation plans were implemented in 2017.

In 2018, the HRCC retained the services of Meridian to review the long-term compensation plans that were implemented in 2017.

In February 2019, the HRCC retained the services of Meridian to provide a benchmarking analysis relating to the total compensation of the President and Chief Executive Officer and the three Executive Vice-Presidents and Senior Vice-President, Finance and Assistant-Secretary. As part of the review process, Meridian also conducted three and fiveyear lookback assessments of the relationship between the realizable compensation of the Chief Executive Officer and the Executive Vice-President and Chief Financial Officer, and Dorel's performance results, relative to realizable pay and performance at the Company's peer companies.

In July 2019 and in 2020, the HRCC retained the services of Meridian to review the annual incentive compensation and long-term incentive compensation programs of the President and Chief Executive Officer, the three Executive Vice-Presidents and the Senior Vice-President, Finance and Assistant-Secretary.

In 2021 the HRCC retained the services of Meridian to perform a market study of the board members compensation and to assist in the research and the design of the special award program that will provide the board members the opportunity to each earn a bonus payout in the event of the sale of all Three Segments by December 31, 2026. The HRCC considered that the executive compensation advice provided by Meridian is relevant and reliable and was therefore used in the current year.

8. Other Board Committees

Other than the Audit Committee, HRCC and CGNC, the Board of Directors has a Disclosure Committee that ensures that all disclosure made by the Company to its security holders or the investment community is accurate and complete and fairly presents the Company's financial condition and results of operations in all material respects, and is made on a timely basis as required by applicable laws, regulations and stock exchange requirements. The members of the Disclosure Committee are Martin Schwartz, Director, President and Chief Executive Officer; Jeffrey Schwartz, Director, Executive Vice-President - Chief Financial Officer and Secretary; Frank Rana, Senior Vice-President, Finance and Assistant-Secretary; and John Paikopoulos, CPA, CGA, Vice-President, Corporate Controller. The Disclosure Committee was established in 2007.

9. Assessments

The CGNC is responsible for preparing and reviewing with the Board of Directors an annual performance evaluation of directors, the Audit Committee, HRCC and CGNC, and comparing performance with requirements of the respective charters of the committees.

As part of this process, a Board of Directors' effectiveness survey and a director self-evaluation form, which cover a wide range of topics, are distributed to each director. The results of the survey and self-evaluation form are compiled on a confidential basis by the Chair of the CGNC to encourage full and frank commentary and are discussed at the next regular meeting of the CGNC. The Chair of the CGNC also presents the results of the survey and self-evaluation that are relevant to another Board committee to the Chair of that committee. Thereafter, the Chair of the CGNC reviews the results of the survey and the self-evaluation with the Board members.

The most recent annual evaluation showed that the Board of Directors and its committees, Chairs of the Board committees and individual directors were effectively fulfilling their respective responsibilities.

10. Director Term Limits and Other Mechanisms of Board Renewal

The Company has not adopted term limits for its directors or other mechanisms of Board of Directors renewal. The Company is aware of the positive impact of bringing new perspectives to the Board of Directors, and therefore adds new members from time-to-time; however, it values continuity on the Board of Directors and the in-depth knowledge of the Company held by those members who have a long-standing relationship with the Company. This topic is assessed and discussed annually by the CGNC when evaluating the Company's corporate governance practices compared to best practices.

11. Policies Regarding the Representation of Women on the Board

The Company has not adopted a written policy relating to the identification and nomination of women directors. Despite not having a formal policy, diversity, including gender, is an important component of the selection process for new members of the Board of Directors. The Board of Directors considers the presence of men and women on the Board as an added value.

12. Consideration of the Representation of Women in the Director Identification and Selection Process

Representation of women on the Board of Directors is one of the factors taken into consideration by the CGNC in the selection process for new members of the Board of Directors. This consideration is assessed annually by the CGNC when evaluating the Company's corporate governance practices compared to best practices. The CGNC has

emphasized recruiting women in recent years in the mandates it has given to search firms and by identifying candidates who are women in its selection process. During 2021, two of the Board members were women, representing 33% of the then-independent directors and 20% of the then-total number of directors.

13. Consideration Given to the Representation of Women in Executive Officer Appointments

The Company gives consideration to gender diversity in its executive-officer appointment process. The Company considers the presence of men and women on its executive team as an added value. At present, none of the Company's executive officers, as defined in National Instrument 58-101 Disclosure of Corporate Governance Practices, are women.

14. Targets Regarding the Representation of Women on the Board and in Executive Officer Positions

The Company has not adopted a "target" regarding women on the Board of Directors or in executive officer positions. The term "target" is defined in National Instrument 58-101 Disclosure of Corporate Governance Practices as, in effect, a number or percentage, or a range of numbers or percentages, adopted by the Company of women on the Board of Directors or in executive officer positions of the Company by a specific date. Although the Company has not adopted a target for the number of women on the Board of Directors or in executive officer positions, it has always supported and continues to pursue its efforts to promote female representation, as evidenced by the percentages set out in section 12 above. In its work related to the composition of the Board of Directors, representation of women on the Board of Directors is one of the factors taken into consideration by the CGNC.

15. Number of Women on the Board and in Executive Officer Positions

During 2021, of the ten members of the Board of Directors of the Company, two were women, representing 33% of the then-independent directors and 20% of the then-total number of directors.

Of the nine executive officers of the Company, as defined in National Instrument 58-101 Disclosure of Corporate Governance Practices, none are women.

16. Review of Corporate Governance Practices

On January 15, 2021, upon the recommendation of the CGNC, the Company adopted a new Trade Control and Anti-Bribery Policy. On April 1, 2021, also upon the recommendation of the CGNC, the Board of Directors appointed Norman M. Steinberg and Maurice Tousson, each an independent director, as Co-Chairpersons of the Board of Directors.

17. Information Security Management

The Company understands the importance of protecting the data it collects from its customers, employees and third parties, and has implemented security measures that include technological security maintained by teams distributed in different divisions as well as physical security with restricted areas and electronic visitor registration.

The Company maintains policies and ensures that its professionals, employees and third parties who provide services to the Company are aware of its policies and processes regarding information security and provides the necessary training to effectively protect data and maintain its integrity and confidentiality, including simulations of phishing to raise user awareness of the risks of opening emails containing malicious software.

These security measures and employee training were implemented to protect the information security and Company's network infrastructure. However, the Company's mitigation measures cannot guarantee absolute security, and the information technology infrastructure may be vulnerable to criminal cyberattacks or data security incidents due to employee or third party errors, misconduct, or other vulnerabilities.

Additionally, the Company relies on third party service providers for certain information technology applications, including recognized information security external teams. Whilst the Company performs due diligence and believes that these third-party service providers have adequate security measures in place, there is no guarantee that these security measures will prevent cyber events or computer viruses from affecting applications.

Violation of information security measures or controls could result in loss of material or confidential information, reputational consequences, financial damage, higher insurance premiums, violations of privacy laws, damage to assets, security issues, downtime or operational delays and lost revenue. The importance of these events of this type is difficult to qualify and quantify, but they may, in certain circumstances, be material to the company and could have an adverse effect on its business and financial condition.

The Company has also instituted data security incident and breach response processes that provide guidance to employees on the appropriate methods to properly investigate, verify, and assess data security incidents or breaches. The company mitigates the risk of such incidents or breaches by backing up data to offsite backup facilities and relying on encryption of critical data.

SCHEDULE B SHAREHOLDERS' RESOLUTION AMENDMENT TO 2004 DIRECTORS' DEFERRED SHARE UNIT PLAN

WHEREAS on March 10, 2022, the Board of Directors adopted an amendment to the DSU Plan so as to increase by 400,000 the number of Class B Subordinate Voting Shares which are available for issuance under the DSU Plan, from 350,000 Class B Subordinate Voting Shares to 750,000 Class B Subordinate Voting Shares, representing approximately 2.6% of the currently issued and outstanding Class B Subordinate Voting Shares and 2.3% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares;

WHEREAS the foregoing amendment to the DSU Plan has been approved by the Toronto Stock Exchange; and

WHEREAS pursuant to the policies of the Toronto Stock Exchange, the foregoing amendment to the DSU Plan must be approved by a simple majority of the votes cast by the holders of the Class A Multiple Voting Shares and Class B Subordinate Voting Shares, either present in person or represented by proxy at a shareholders' meeting, excluding the votes attached to shares held by eligible "insiders" of the Company under the DSU Plan and their respective associates;

IT IS RESOLVED:

THAT the amendment to the DSU Plan increasing to 750,000 the number of Class B Subordinate Voting Shares which are available for issuance from treasury thereunder, as approved by the Board of Directors of the Company and as described in the Management Proxy Circular of the Company dated April 12, 2022, is hereby ratified, confirmed and approved.

SCHEDULE C SHAREHOLDERS' RESOLUTION AMENDMENT TO 2009 EXECUTIVE DEFERRED SHARE UNIT PLAN

WHEREAS on March 10, 2022, the Board of Directors adopted an amendment to the 2009 Executive Deferred Share Unit Plan (the "EDSU Plan") so as to increase by 1,000,000 the number of Class B Subordinate Voting Shares which are available for issuance under the EDSU Plan, from 750,000 Class B Subordinate Voting Shares to 1,750,000 Class B Subordinate Voting Shares, representing approximately 6.2% of the currently issued and outstanding Class B Subordinate Voting Shares and 5.4% of the aggregate number of issued and outstanding Class A Multiple Voting Shares and Class B Subordinate Voting Shares;

WHEREAS the foregoing amendment to the EDSU Plan has been approved by the Toronto Stock Exchange; and

WHEREAS pursuant to the policies of the Toronto Stock Exchange, the foregoing amendment to the EDSU Plan must be approved by a simple majority of the votes cast by the holders of the Class A Multiple Voting Shares and Class B Subordinate Voting Shares, either present in person or represented by proxy at a shareholders' meeting;

IT IS RESOLVED:

THAT the amendment to the EDSU Plan increasing to 1,750,000 the number of Class B Subordinate Voting Shares which are available for issuance from treasury thereunder, respectively, as approved by the Board of Directors of the Company and as described in the Management Proxy Circular of the Company dated April 12, 2022, is hereby ratified, confirmed and approved.