RELATED PARTY TRANSACTIONS Linking Management Compensation to Performance SUMMARY OF QUARTERLY RESULTS 2013 ANNUAL REPORT  47 (1)  Net income (loss) attributable to the shareholders of Capstone. (2)  Common dividends include amounts declared for both the common shares of the Corporation and the Class B exchangeable units. (3)  Net income (loss) and earnings (loss) per share have been restated for changes required by IFRS to implement IAS 19 - Employee Benefits. This  change, which became effective, retroactively, January 1, 2013, is described in note 2 of the consolidated financial statements for the year  ended December 31, 2013. The following table provides a summary of the previous eight quarters of Capstone’s financial performance. For a comprehensive understanding of Capstone's compensation program please refer to the "Compensation Discussion and Analysis" section of the  Corporation's most recently filed information circular. Compensation plays an important role in achieving short- and long-term business objectives that ultimately drive the Corporation’s business success in alignment with long-term shareholder goals. The objectives of the Corporation’s compensation program are to: Financial performance targets are set each year to provide management with an incentive to improve upon yearly budgeted financial results and are  therefore aligned with shareholder interests. The following table summarizes the link between the Corporation's executive and senior officer forms of compensation and performance: Key management includes the Corporation's directors, Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Compensation awarded  to key management consisted of salaries, directors' fees and short-term employee benefits. Eligible directors and senior management of the  Corporation also receive forms of stock-based compensation. Key management compensation is described in note 28 (Related Party Transactions) in  the consolidated financial statements for the year ended December 31, 2013. Capstone's related party transactions in 2013 primarily comprised management fees paid by Capstone's equity accounted investments and compensation to key management. Management fees earned from Capstone's equity accounted investments are reported in the consolidated statements of income as revenue. During  2013, Capstone earned fees of $115, primarily related to the management of Glen Dhu and Fitzpatrick. Compensation of Key Management •  Attract and retain highly qualified employees with a history of proven success; •  Align the interests of employees with shareholders’ interests and with the execution of the Corporation’s business strategy; • Establish performance goals that, if met, are expected to improve long-term shareholder value; and •  Tie compensation to those goals and provide meaningful rewards for achieving them. ($000s, except for per share amounts) 2013 2012 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Revenue 110,291 91,418 93,539 94,255 94,654 84,951 85,849 92,156 Net income (loss)  (1 and 3) 10,441 8,887 10,015 12,019 12,909 5,836 (4,184) 13,681 Adjusted EBITDA 37,992 26,253 31,834 32,342 31,074 24,542 27,516 37,211 AFFO 13,930 3,346 9,014 13,644 13,560 3,381 3,707 14,915 Common dividends  (2) 7,208 5,720 5,709 5,696 5,579 5,655 10,231 12,299 Preferred dividends 938 938 938 938 938 938 938 938 Earnings Per Share – Basic  (3) c 0.099 0.104 0.119 0.145 0.147 0.065 (0.068) 0.171 Earnings Per Share – Diluted  (3) d 0.096 0.102 0.117 0.141 0.143 0.065 (0.068) 0.165 AFFO per share 0.145 0.044 0.119 0.180 0.179 0.045 0.049 0.200 Dividends declared per common share 0.075 0.075 0.075 0.075 0.075 0.075 0.135 0.165 Salary Short-term incentive plan ("STIP") Long-term incentive plan ("LTIP") Description Salary is a fixed component of compensation that provides income certainty by establishing a base level of compensation for executives fulfilling their roles and responsibilities. The STIP provides the possibility of an additional annual cash award based on the achievement of corporate and individual goals. The LTIP provides the possibility of an additional award linked to the Corporation's common shares. This award is paid in cash or common shares purchased on the open market after meeting certain vesting conditions. Purpose To attract and retain qualified executives. To motivate, attract and retain qualified executives. To reward long-term performance and align interests of executives with security holders. Link to performance No direct link. A significant portion of this award is based on actual business performance against Capstone's non-GAAP performance measures, Adjusted EBITDA and AFFO. A significant portion of this award is directly linked to the performance of the Corporation's shares over the vesting period, as well as the total shareholder return relative to a comparator group.