----

| Title of each class                         | Name of each exchange on which registered |
|---------------------------------------------|-------------------------------------------|
| Subordinate Voting Shares without par value | NASDAQ                                    |
| Subordinate Voting Shares without par value | TSX                                       |

----

| Large accelerated filer      ☐ | Accelerated filer      ☒ | Non-accelerated filer      ☐ |
|-----------------------------------------------------|-----------------------------------------------|---------------------------------------------------|
| U.S. GAAP      ☐ | International Financial Reporting Standards as issued by the      ☒International Accounting Standards Board | Other      ☐ |
|---------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|

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TABLE OF CONTENTS

EXPLANATORY NOTE

DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION

PART I.

| Item 1. | Identity of Directors, Senior Management and Advisers |
|---------|-------------------------------------------------------|

| Item 2. | Offer Statistics and Expected Timetable |
|---------|-----------------------------------------|

| Item 3. | Key Information |
|---------|-----------------|

|  | A. | Selected Financial Data |
|--|----|-------------------------|

|  | B. | Capitalization and Indebtedness |
|--|----|---------------------------------|

|  | C. | Reasons for the Offer and Use of Proceeds |
|--|----|-------------------------------------------|

|  | D. | Risk Factors |
|--|----|--------------|

| Item 4. | Information on the Company |
|---------|----------------------------|

|  | A. | History and Development of the Company |
|--|----|----------------------------------------|

|  | B. | Business Overview |
|--|----|-------------------|

|  | C. | Organizational Structure |
|--|----|--------------------------|

|  | D. | Property, Plants and Equipment |
|--|----|--------------------------------|

Item 4A. Unresolved Staff Comments

| Item 5. | Operating and Financial Review and Prospects |
|---------|----------------------------------------------|

| Item 6. | Directors, Senior Management and Employees |
|---------|--------------------------------------------|

|  | A. | Directors and Senior Management |
|--|----|---------------------------------|

|  | B. | Compensation |
|--|----|--------------|

|  | C. | Board Practices |
|--|----|-----------------|

|  | D. | Employees |
|--|----|-----------|

|  | E. | Share Ownership |
|--|----|-----------------|

| Item 7. | Major Shareholders and Related Party Transactions |
|---------|---------------------------------------------------|

|  | A. | Major Shareholders |
|--|----|--------------------|

|  | B. | Related Party Transactions |
|--|----|----------------------------|

|  | C. | Interests of Experts and Counsel |
|--|----|----------------------------------|

| Item 8. | Financial Information |
|---------|-----------------------|

|  | A. | Consolidated Statements and Other Financial Information |
|--|----|---------------------------------------------------------|

|  | B. | Significant Changes |
|--|----|---------------------|

| Item 9. | The Offer and Listing |
|---------|-----------------------|

|  | A. | Offer and Listing Details |
|--|----|---------------------------|

|  | C. | Markets |
|--|----|---------|

----

| Item 10. | Additional Information |
|----------|------------------------|

|  | A. | Share Capital |
|--|----|---------------|

|  | B. | Memorandum and Articles of Association |
|--|----|----------------------------------------|

|  | C. | Material Contracts |
|--|----|--------------------|

|  | D. | Exchange Controls |
|--|----|-------------------|

|  | E. | Taxation |
|--|----|----------|

|  | F. | Dividends and Paying Agents |
|--|----|-----------------------------|

|  | G. | Statement by Experts |
|--|----|----------------------|

|  | H. | Documents on Display |
|--|----|----------------------|

|  | I. | Subsidiary Information |
|--|----|------------------------|

| Item 11. | Qualitative and Quantitative Disclosures about Market Risk |
|----------|------------------------------------------------------------|

| Item 12. | Description of Securities Other than Equity Securities |
|----------|--------------------------------------------------------|

PART II.

| Item 13. | Defaults, Dividend Arrearages and Delinquencies |
|----------|-------------------------------------------------|

| Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
|----------|------------------------------------------------------------------------------|

| Item 15. | Controls and Procedures |
|----------|-------------------------|

| Item 16. | [Reserved] |
|----------|------------|

| Item 16A. | Audit Committee Financial Expert |
|-----------|----------------------------------|

| Item 16B. | Code of Ethics |
|-----------|----------------|
| Item 16C. | Principal Accountant Fees and Services |
|-----------|----------------------------------------|
| Item 16D. | Exemptions from the Listing Standards for Audit Committees |
|-----------|------------------------------------------------------------|
| Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
|-----------|------------------------------------------------------------------------|
| Item 16F. | Change in Registrant's Certifying Accountant |
|-----------|----------------------------------------------|
| Item 16G. | Corporate Governance |
|-----------|----------------------|
| Item 16H. | Mine Safety Disclosure |
|-----------|------------------------|

PART III

| Item 17. | Financial Statements |
|----------|----------------------|

| Item 18. | Financial Statements |
|----------|----------------------|

| Item 19. | Exhibits |
|----------|----------|

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Table of Contents

| Item 1. | Identity of Directors, Senior Management and Advisers |
|---------|-------------------------------------------------------|

| Item 2. | Offer Statistics and Expected Timetable |
|---------|-----------------------------------------|

----

Table of Contents

| Item 3. | Key Information |
|---------|-----------------|

| A. | Selected Financial Data |
|----|-------------------------|

|                                                                                  |   | Years ended August 31,                                       |    |
|---------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|---------|
|                                                                                  |   | 2016 (6)                                                     |    |   | 2015 (6) |   |   | 2014 (6) |   |   | 2013 (3) |   |   | 2012 (4) |   |
|                                                                                  |   | (in thousands of US dollars, except shareand per share data) |    |
| Consolidated Statements of Earnings Data:                                             |   |                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                                                            |   | $                                                            | 232,583 |   |   | $ | 222,089 |   |   | $ | 230,806 |   |   | $ | 242,150 |   |   | $ | 249,966 |   |
|                                                                                  |   |                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales (1)                                                                |   |                                                         | 87,066  |   |   |   | 85,039 |   |   |   | 86,836 |   |   |   | 92,469 |   |   |   | 91,792 |   |
| Selling and administrative (2)                                                   |   |                                                         | 82,169  |   |   |   | 82,200 |   |   |   | 86,429 |   |   |   | 88,756 |   |   |   | 94,139 |   |
| Net research and development                                                     |   |                                                         | 42,687  |   |   |   | 44,003 |   |   |   | 44,846 |   |   |   | 45,444 |   |   |   | 49,854 |   |
| Depreciation of property, plant and equipment                                         |   |                                                         | 3,814   |   |   |   | 4,835 |   |   |   | 4,995 |   |   |   | 6,028 |   |   |   | 6,169 |   |
| Amortization of intangible assets                                                |   |                                                         | 1,172   |   |   |   | 2,883 |   |   |   | 4,398 |   |   |   | 6,643 |   |   |   | 7,819 |   |
| Changes in fair value of cash contingent consideration                                |   | ─                                                      |    |   | ─ |   |   | ─ |   |   | ─ |   |   |   | (311 | ) |
| Interest and other income                                                        |   |                                                         | (828    | ) |   |   | (155 | ) |   |   | (326 | ) |   |   | (113 | ) |   |   | (131 | ) |
| Foreign exchange (gain) loss                                                     |   |                                                         | (161    | ) |   |   | (7,212 | ) |   |   | (1,634 | ) |   |   | (4,082 | ) |   |   | 657 |   |
| Unusual charge (6)                                                               |   | ─                                                      |    |   |   | 603 |   |   |   | 720 |   |   |   | 540 |   |   |   | 220 |   |
| Earnings (loss) before income taxes                                                   |   |                                                         | 16,664  |   |   |   | 9,893 |   |   |   | 4,542 |   |   |   | 6,465 |   |   |   | (242 | ) |
| Income taxes                                                                     |   |                                                         | 7,764   |   |   |   | 5,036 |   |   |   | 4,286 |   |   |   | 5,519 |   |   |   | 3,512 |   |
| Net earnings (loss) for the year                                                 |   | $                                                            | 8,900   |   |   | $ | 4,857 |   |   | $ | 256 |   |   | $ | 946 |   |   | $ | (3,754 | ) |
| Basic net earnings (loss) per share                                                   |   | $                                                            | 0.17    |   |   | $ | 0.09 |   |   | $ | 0.00 |   |   | $ | 0.02 |   |   | $ | (0.06 | ) |
| Diluted net earnings (loss) per share                                                 |   | $                                                            | 0.16    |   |   | $ | 0.08 |   |   | $ | 0.00 |   |   | $ | 0.02 |   |   | $ | (0.06 | ) |
| Basic weighted average number of shares used in per share calculations (000's)   |   |                                                         | 53,863  |   |   |   | 56,804 |   |   |   | 60,329 |   |   |   | 60,323 |   |   |   | 60,453 |   |
| Diluted weighted average number of shares used in per share calculations (000's) |   |                                                         | 54,669  |   |   |   | 57,457 |   |   |   | 61,015 |   |   |   | 61,110 |   |   |   | 60,453 |   |
| Other Consolidated Statements of Earnings Data:                                       |   |                                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross research and development                                                   |   | $                                                            | 47,875  |   |   | $ | 50,148 |   |   | $ | 52,423 |   |   | $ | 54,334 |   |   | $ | 59,282 |   |
| Net research and development                                                     |   | $                                                            | 42,687  |   |   | $ | 44,003 |   |   | $ | 44,846 |   |   | $ | 45,444 |   |   | $ | 49,854 |   |

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|                                             |   | As at August 31,             |    |
|--------------------------------------------------|--------|------------------------------|---------|
|                                             |   | 2016 (6)                     |    |   | 2015 (6) |   |   | 2014 (5) (6) |   |   | 2013 (3) |   |   | 2012 (4) |   |
|                                             |   | (in thousands of US dollars) |    |
| Consolidated Balance Sheets Data:                |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                        |   | $                            | 43,208  |   |   | $ | 25,864 |   |   | $ | 54,121 |   |   | $ | 45,386 |   |   | $ | 58,868 |   |
| Short-term investments                      |   |                         | 4,087   |   |   |   | 1,487 |   |   |   | 5,726 |   |   |   | 4,868 |   |   |   | 8,236 |   |
| Total assets                                |   |                         | 237,793 |   |   |   | 217,478 |   |   |   | 276,948 |   |   |   | 280,982 |   |   |   | 306,522 |   |
| Long-term debt (excluding current portion)  |   | ─                      |    |   | ─ |   |   | ─ |   |   | ─ |   |   |   | 282 |   |
| Share capital                               |   |                         | 85,516  |   |   |   | 86,045 |   |   |   | 111,491 |   |   |   | 109,837 |   |   |   | 110,965 |   |
| Shareholders' equity                        |   | $                            | 181,401 |   |   | $ | 169,227 |   |   | $ | 230,287 |   |   | $ | 235,896 |   |   | $ | 253,120 |   |

| (1) | The cost of sales is exclusive of depreciation and amortization, shown separately. |
|-----|------------------------------------------------------------------------------------|

| (2) | Selling and administrative is exclusive of unusual charge, shown separately, which represents the adjustment to bad debt expenses arising from the revision (see Note 1 to the consolidated financial statements included in this Annual Report on Form 20-F/A). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes adjustments for the revision which decreased earnings before income taxes by $540,000, net earnings by $395,000, and total assets and shareholders' equity by $556,000. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes adjustments for the revision which increased loss before income taxes by $220,000 and net loss by $161,000, and decreased total assets and shareholders' equity by $161,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Includes adjustments for the revision which decreased total assets and shareholders' equity by $1,083,000. |
|-----|------------------------------------------------------------------------------------------------------------|

| (6) | See "Note 1, Revision of Consolidated Financial Statements" to our consolidated financial statements for the year ended August 31, 2016 included in this Annual Report on Form 20-F/A for additional information. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Capitalization and Indebtedness |
|----|---------------------------------|

| C. | Reasons for the Offer and Use of Proceeds |
|----|-------------------------------------------|

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Table of Contents

| D. | Risk Factors |
|----|--------------|

| · | difficulty in forecasting, budgeting and planning due to the uncertain spending plans of current or prospective customers; |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | increased competition for fewer network projects and sales opportunities; |
|--------|---------------------------------------------------------------------------|

| · | increased pricing pressure that may adversely affect revenue and gross margin; |
|--------|--------------------------------------------------------------------------------|

| · | higher cost structure compared to revenue level; |
|--------|--------------------------------------------------|

| · | increased risk of charges related to excess and obsolete inventories, write-offs of deferred tax assets and tax credits, and impairment of intangible assets and goodwill; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | customers' financial difficulties and increased difficulty in collecting accounts receivable; and |
|--------|---------------------------------------------------------------------------------------------------|

| · | additional restructuring costs. |
|--------|---------------------------------|

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| · | increased competition for business; |
|--------|-------------------------------------|

| · | reduced demand; |
|--------|-----------------|

| · | limited number of potential customers; |
|--------|----------------------------------------|

| · | competition from companies with lower production costs, including companies operating in lower-cost environments; |
|--------|-------------------------------------------------------------------------------------------------------------------|

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| · | introduction of new products by competitors; |
|--------|---------------------------------------------------|

| · | greater economies of scale for higher-volume competitors; |
|--------|-----------------------------------------------------------|

| · | large customers, who buy in high volumes, can exert substantial negotiating leverage over us; and |
|--------|---------------------------------------------------------------------------------------------------|

| · | resale of used equipment. |
|--------|---------------------------|

| · | issue shares that would dilute individual shareholder percentage ownership; |
|--------|-----------------------------------------------------------------------------|

| · | incur debt; |
|--------|-------------|

| · | assume liabilities and commitments; |
|--------|-------------------------------------|

| · | incur significant expenses related to acquisition costs; |
|--------|----------------------------------------------------------|

| · | incur significant expenses related to amortization of additional intangible assets; |
|--------|-------------------------------------------------------------------------------------|

| · | incur significant impairment losses of goodwill and intangible assets related to such acquisitions; and |
|--------|---------------------------------------------------------------------------------------------------------|

| · | incur losses from operations. |
|--------|-------------------------------|

| · | the risk of not realizing the expected benefits or synergies from such acquisitions or alliances; |
|--------|---------------------------------------------------------------------------------------------------|

| · | problems integrating the acquired operations, technologies, products and personnel; |
|--------|-------------------------------------------------------------------------------------|

| · | risks associated with the transfer of acquired know-how and technology; |
|--------|-------------------------------------------------------------------------|

| · | unanticipated costs or liabilities; |
|--------|-------------------------------------|

| · | diversion of management's attention from our core business; |
|--------|-------------------------------------------------------------|

| · | adverse effects on existing business relationships with suppliers and customers; |
|--------|----------------------------------------------------------------------------------|

| · | risks associated with entering markets in which we have no or limited prior experience; and |
|--------|---------------------------------------------------------------------------------------------|

| · | potential loss of key employees, particularly those of acquired organizations. |
|--------|--------------------------------------------------------------------------------|

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| · | challenges in staffing and managing foreign operations due to the limited number of qualified candidates, employment laws and business practices in foreign countries, any of which could increase the cost and reduce the efficiency of operating in foreign countries; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | fluctuations among currencies; |
|--------|--------------------------------|

| · | our inability to comply with import/export, environmental and other trade compliance regulations of the countries in which we do business, together with unexpected changes in such regulations; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | measures to ensure that we design, implement and maintain adequate and effective controls over our financial processes and reporting in the future; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | failure to adhere to laws, regulations and contractual obligations relating to customer contracts in various countries; |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| · | difficulties in establishing and enforcing our intellectual property rights; |
|--------|------------------------------------------------------------------------------|

| · | inability to maintain a competitive list of distributors for indirect sales; |
|--------|------------------------------------------------------------------------------|

| · | tariffs and other trade barriers; |
|--------|-----------------------------------|

| · | economic instability in foreign markets, including Britain's decision to exit the European Union and the impact this choice may have on doing business in Europe; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | wars, acts of terrorism and political unrest; |
|--------|-----------------------------------------------|

| · | language and cultural barriers; |
|--------|---------------------------------|

| · | lack of integration of foreign operations; |
|--------|--------------------------------------------|

| · | potential foreign and domestic tax consequences; |
|--------|--------------------------------------------------|

| · | technology standards that differ from those on which our products are based, which could require expensive redesign and retention of personnel familiar with those standards; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | longer accounts receivable payment cycles and possible difficulties in collecting payments which may increase our operating costs and hurt our financial performance; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | failure to meet certification requirements. |
|--------|---------------------------------------------|

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| · | difficulty in hiring and retaining appropriate engineering and manufacturing resources due to intense competition for such resources and resulting wage inflation; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | exposure to misappropriation of intellectual property and proprietary information; |
|--------|------------------------------------------------------------------------------------|

| · | heightened exposure to changes in the economic, regulatory, security, and political conditions of these countries; |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| · | fluctuations in currency exchange rates; |
|--------|------------------------------------------|

| · | changes in tax laws and regulations in India and China, including transfer pricing policies; |
|--------|----------------------------------------------------------------------------------------------|

| · | cash management and repatriation of profit; and |
|--------|-------------------------------------------------|

| · | high inflation rates which could increase our operating costs. |
|--------|----------------------------------------------------------------|

| · | properly identify and anticipate customer needs; |
|--------|--------------------------------------------------|

| · | innovate and develop new products on a timely basis; |
|--------|------------------------------------------------------|

| · | gain timely market acceptance for new products; |
|--------|-------------------------------------------------|

| · | manufacture and deliver our new products on time, in sufficient volume and with adequate quality; |
|--------|---------------------------------------------------------------------------------------------------|

| · | price our products competitively; |
|--------|-----------------------------------|

| · | continue investing in our research and development programs; |
|--------|--------------------------------------------------------------|

| · | anticipate competitors' announcements of new products; and |
|--------|------------------------------------------------------------|

| · | successfully transform the company into an end-to-end service assurance and analytics supplier. |
|--------|-------------------------------------------------------------------------------------------------|

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| · | costly repairs; |
|--------|-----------------|

| · | additional development and support costs; |
|--------|-------------------------------------------|

| · | product returns or recalls; |
|--------|-----------------------------|

| · | sales cancellations; |
|--------|----------------------|

| · | damage to our brand reputation; |
|--------|---------------------------------|

| · | loss of customers, failure to attract new customers or achieve market acceptance; |
|--------|-----------------------------------------------------------------------------------|

| · | diversion of development and engineering resources; |
|--------|-----------------------------------------------------|

| · | legal actions by our customers, including claims for consequential damages and loss of profits; and |
|--------|-----------------------------------------------------------------------------------------------------|

| · | legal actions by governmental entities, including actions to impose product recalls and/or forfeitures. |
|--------|---------------------------------------------------------------------------------------------------------|

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| · | length of the sales cycle for certain products, especially those that are higher priced and more complex; |
|--------|-----------------------------------------------------------------------------------------------------------|

| · | sales cycle prolonged by lengthy customer acceptance; |
|--------|-------------------------------------------------------|

| · | timing of product launches and market acceptance of our new products as well as those of our competitors; |
|--------|---------------------------------------------------------------------------------------------------------------------|

| · | our ability to sustain product volumes and high levels of quality across all product lines; |
|--------|---------------------------------------------------------------------------------------------|

| · | timing of shipments for large orders; |
|--------|---------------------------------------|

| · | effect of seasonality on sales and bookings; and |
|--------|--------------------------------------------------|

| · | losing key accounts and not successfully developing new ones. |
|--------|---------------------------------------------------------------|

| · | fluctuating demand for test, service assurance and analytics solutions; |
|--------|-------------------------------------------------------------------------|

| · | changes in the capital spending and operating budgets of our customers, which may cause seasonal or other fluctuations in product mix, volume, timing and number of orders we receive from our customers; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | order cancellations or rescheduled delivery dates; |
|--------|----------------------------------------------------|

| · | pricing changes by our competitors or suppliers; |
|--------|--------------------------------------------------|

| · | insufficient or excess inventory; |
|--------|-----------------------------------|

| · | variations in the mix between higher and lower-margin products and services; |
|--------|------------------------------------------------------------------------------|

| · | customer bankruptcies and difficulties in collecting accounts receivable; |
|--------|---------------------------------------------------------------------------|

| · | restructuring and impairment charges; |
|--------|---------------------------------------|

| · | foreign exchange rate fluctuations; |
|--------|-------------------------------------|

| · | general economic conditions, including a slowdown or recession; |
|--------|-----------------------------------------------------------------|

| · | distorted effective tax rate due to non-taxable/deductible elements and unrecognized deferred tax assets; and |
|--------|--------------------------------------------------------------------------------------------------------------------|

| · | effects of recent acquisitions of businesses. |
|--------|-----------------------------------------------|

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| Item 4. | Information on the Company |
|---------|----------------------------|

| A. | History and Development of the Company |
|----|----------------------------------------|

| B. | Business Overview |
|----|-------------------|

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| · | evolve into a trusted advisor; |
|--------|--------------------------------|

| · | increase our presence with wireless operators; |
|--------|------------------------------------------------|

| · | expand our share of wallet with tier-1 service providers, as well as with data center, cloud and web-scale operators; and |
|--------|---------------------------------------------------------------------------------------------------------------------------|

| · | accelerate profitability. |
|--------|---------------------------|

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| · | performance monitoring and analysis; |
|--------|--------------------------------------|

| · | advanced data correlation and analysis engine; |
|--------|------------------------------------------------|

| · | VoIP and VoLTE service assurance; |
|--------|-----------------------------------|

| · | IP/MPLS service assurance; |
|--------|----------------------------|

| · | mobile backhaul and metro Ethernet service assurance; |
|--------|-------------------------------------------------------|

| · | IP video service assurance; |
|--------|-----------------------------|

| · | advanced analytics and reports; and |
|--------|-------------------------------------|

| · | custom solutions and back-office integration services. |
|--------|--------------------------------------------------------|

| · | Voice quality (VoIP, VoLTE, VoWiFi) and performance management; |
|--------|-----------------------------------------------------------------|

| · | IP/MPLS and carrier Ethernet (mobile backhaul and metro Ethernet) service quality monitoring; |
|--------|-----------------------------------------------------------------------------------------------|

| · | IP video (IPTV, OTT) quality and performance management; |
|--------|----------------------------------------------------------|

| · | FLEX: Adapted analytics and customized dashboards for integrated operations with operator back-office and NOC systems. |
|--------|------------------------------------------------------------------------------------------------------------------------|

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| · | market study and research feasibility; |
|--------|----------------------------------------|

| · | product definition; |
|--------|---------------------|

| · | development feasibility; |
|--------|--------------------------|

| · | development; |
|--------|--------------|

| · | qualification; and |
|--------|--------------------|

| · | transfer to production. |
|--------|-------------------------|

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| · | Customer Relationship Management (CRM) Administration – Business ownership of our CRM toolset and evolution; |
|--------|-------------------------------------------------------------------------------------------------------------------------|

| · | Sales Support – Leverage the effectiveness of our sales force by providing pre-sales and demo support, as well as guiding customers in purchasing the correct equipment for their respective applications, issuing quotations, and promoting our extended warranty service and support program; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Order Management – Accurately process customer orders from entry through fulfillment and delivery, and manage order changes; |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| · | Customer Service – Serve as a primary interface for inbound and outbound customer communication. Provide customers with one central point of contact and work with the customer from purchasing equipment to helping them arrange for service, if necessary; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Field Support – Provide expert technical support and deliver product service worldwide. Support our Worldwide Service Centers and directly manage the Service Partner Program. Where applicable, furnish installation and on-site servicing for more complex equipment and applications; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Systems Services – Provide pre-sale, delivery, post-sale technical support, and systems actualization of customer's network monitoring and converged service assurance systems; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Education Services – Aggregate expertise, develop material, and deliver free and fee-based training; |
|--------|------------------------------------------------------------------------------------------------------------|

| · | Professional Services – Provide value-added solution services for our test and system customers. |
|--------|--------------------------------------------------------------------------------------------------------|

| · | Production. From production planning to product shipment, our production department is responsible for manufacturing high-quality products on time. Factories are organized in work cells; each cell consists of specialized technicians with equipment and has full responsibility over a product family. Technicians are cross-trained and versatile enough, so that they can carry out specific functions in more than one cell. This allows shorter lead times by alleviating bottlenecks. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Manufacturing and Test Engineering. This department, which supports our production cells, acts like a gatekeeper to ensure the quality of our products and the effectiveness of our manufacturing processes. It is responsible for the transfer of products from research and development to manufacturing, product improvement, documentation, metrology, and the quality control and regulatory compliance process. Quality control represents a key element in our manufacturing operations. Quality is assured through product testing at numerous stages in the manufacturing process to ensure that our products meet both stringent industry and customer performance requirements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Supply-Chain Management. This department is responsible for sales forecasting, raw material procurement, material-cost reduction and vendor performance management. Our products consist of optical, electronic and mechanical parts, which are purchased from suppliers around the world. Approximately one-third of our parts are manufactured to our specifications. Materials represent the largest portion of our cost of goods. Our performance is tightly linked to vendor performance, requiring greater emphasis on this critical aspect of our business. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | level of technical compliance and alignment to use-case; |
|--------|----------------------------------------------------------|

| · | product performance and reliability; |
|--------|--------------------------------------|

| · | solution's contribution to productivity; |
|--------|------------------------------------------|

| · | price and quality of products; |
|--------|--------------------------------|

| · | level of technological innovation; |
|--------|------------------------------------|

| · | product lead times; |
|--------|---------------------|

| · | breadth of product offerings; |
|--------|-------------------------------|

| · | ease of use; |
|--------|--------------|

| · | brand-name recognition; |
|--------|-------------------------|

| · | customer service and technical support; |
|--------|-----------------------------------------|

| · | strength of sales and distribution relationships; and |
|--------|-------------------------------------------------------|

| · | financial stability of supplier. |
|--------|----------------------------------|

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| · | a method and apparatus for improved characterization of loss-inducing "events" along an optical fiber using an Optical Time Domain Reflectometer (OTDR).  This invention describes how, by a judicious combination of OTDR data corresponding to different optical-pulse durations, the location and loss characteristics of an event can be quantified with much better accuracy and/or more rapidly than via conventional approaches.  This invention is offered as an option for almost all of the current EXFO OTDR-based products; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a method for determining the optical signal-to-noise ratio employing an optical spectrum analyzer, which is particularly advantageous for use with tightly-filtered DWDM signals used in high-bandwidth optical networks.  This invention is a key value-added option to our FTB-5240-S series of portable optical spectrum analyzers; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | a method and apparatus to determine the theoretical and practical data rates for a cable under test. This invention uses a single test device to predict the performance of a pair of ADSL (Asymmetric Digital Subscriber Line) modems, and in case of problems, analyze the cause of the modems' failure to synchronize. It is a key functionality of our FTB-610, FTB-635, MaxTester 610, MaxTester 635 and MaxTester 635G; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a scalable system for monitoring network elements, for which only a non-redundant subset of the identified network information is stored, thereby enabling monitoring of a much larger group of network elements than is possible with conventional memory-constrained monitoring systems. Furthermore, this system employs a multi-threaded architecture that dynamically spawns an array of multi-technology monitoring sub-systems.  This invention forms the basis of the web-based EXFO Xtract Open Analytics Platform, enabling the user, among other things, to leverage data from a multitude of sources and to define a sequence of activities based on templates in order to accomplish a given task; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a method for actively analyzing a data packet delivery path to provide diagnostics and root cause analysis of network delivery path issues, which is embedded in certain software applications of the EXFO Worx System of EXFO Service Assurance; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a distributed protocol analyzer for quality-of-service measurement. This invention underlies the combined QoS measurements offered in the NetHawk iPro and NetHawk M5 products; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | a communication methodology used to perform independent bi-directional protocol testing over a connection or connectionless network between two test instruments, wherein the transfer mechanism of status and intermediate test results during an active test and the transmission of the final results to one of the instruments enables the user to perform a bidirectional single-ended test. This invention is at the heart of the EXFO Datacom product families, including applications in conformity with our EtherSAM standard test suite. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| C. | Organizational Structure |
|----|--------------------------|

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| D. | Property, Plant and Equipment |
|----|-------------------------------|

| Location                                                                                          | Use of Space                                                                                                                                    | Square Footage          | % of Utilization | Type of Interest   |
|---------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|------------------|--------------------|
|  436 Nolin StreetQuebec (Quebec) G1M 1E7                                                |  Occupied for manufacturing of products                                                                                               |  44,000       |  90%   |  Owned   |
|  400 Godin AvenueQuebec (Quebec) G1M 2K2                                                |  Occupied for research and development, customer services, repair/calibration services, manufacturing, management and administration  |  129,000 (1)  |  90%   |  Owned   |
|  2500 Alfred-NobelMontreal (Quebec) H4S 2C3                                        |  Occupied for research and development, management and administration                                                                 |  75,000       |  60%   |  Owned   |
|  2500 Alfred-NobelMontreal (Quebec) H4S 2C3                                        |  Available for rent                                                                                                                   |  50,000       |  0%    |  Owned   |
|  160 Drumlin CircleConcord (Ontario) L4K 3E5                                            |  Occupied for research and development, product management and administration                                                         |  23,500       |  40%   |  Owned   |
|  270 Billerica RoadChelmsford, MA 01824 United States                                   |  Occupied for research and development, manufacturing, management and administration                                                  |  29,000       |  75%   |  Leased  |
|  Winchester HouseSchool LaneChandlers Ford, EastleighHampshire SO53 4DG United Kingdom  |  Occupied for European customer service, repair/calibration services, sales management and administration                             |  13,000       |  80%   |  Leased  |

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| Location | Use of Space | Square Footage | % of Utilization | Type of Interest |
|----------|--------------|----------------|------------------|------------------|

|  3rd Floor, Building 10Yu Sheng Industrial Park(Gu Shu Crossing)No. 467, National Highway 107Xixiang, Bao An DistrictShenzhen 518126 China  |  Occupied for manufacturing of products, repair/calibration services                  |  64,000  |  80%   |  Leased  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|--------------------|------------------|--------------------|
|  Offices No 602, 603, 604, 701 and 702Tower S-4 CybercityMagarpatta , HadapsarPune 411 013 India                                       |  Occupied for research and development                                           |  33,981  |  85%   |  Owned   |
|  Offices No 102Tower S-4 CybercityMagarpatta , HadapsarPune 411 013 India                                                                   |  Leased to a third party                                                              |  5,979   |  100%  |  Owned   |
|  Elektroniikkatie 2FI-90590 Oulu Finland                                                                                                    |  Occupied for research and development, manufacturing, management and administration  |  30,338  |  100%  |  Leased  |

| (1) | Including the warehouse space. Premises without the warehouse are approximately 115,000 square feet. |
|-----|------------------------------------------------------------------------------------------------------|

| Item 4A. | Unresolved Staff Comments |
|----------|---------------------------|

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| Item 5. | Operating and Financial Review and Prospects (revised – January 9, 2017) |
|---------|-------------------------------------------------------------------------------------|

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| Consolidated statements of earnings data (1):         |   | 2016   |    |   | 2015   |   |    | 2014   |   |   | 2016    |   |   | 2015   |    |   | 2014   |   |
|-------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
| Sales                                                 |   | $      | 232,583 |   |   | $      | 222,089 |   |   | $      | 230,806 |   |   |   | 100.0   | %      |   |   | 100.0 | % |   |   | 100.0 | % |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cost of sales (2)                                     |   |   | 87,066  |   |   |   | 85,039  |   |   |   | 86,836  |   |   |   | 37.4    |   |   |   | 38.3 |   |   |   | 37.6 |   |
| Selling and administrative (3)                        |   |   | 82,169  |   |   |   | 82,200  |   |   |   | 86,429  |   |   |   | 35.3    |   |   |   | 37.0 |   |   |   | 37.4 |   |
| Net research and development                          |   |   | 42,687  |   |   |   | 44,003  |   |   |   | 44,846  |   |   |   | 18.4    |   |   |   | 19.8 |   |   |   | 19.4 |   |
| Depreciation of property, plant and equipment         |   |   | 3,814   |   |   |   | 4,835   |   |   |   | 4,995   |   |   |   | 1.6     |   |   |   | 2.2 |   |   |   | 2.2 |   |
| Amortization of intangible assets                     |   |   | 1,172   |   |   |   | 2,883   |   |   |   | 4,398   |   |   |   | 0.5     |   |   |   | 1.3 |   |   |   | 1.9 |   |
| Interest and other income                             |   |   | (828    | )      |   |   | (155    | )      |   |   | (326    | )      |   |   | (0.4    | )      |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Foreign exchange gain                                 |   |   | (161    | )      |   |   | (7,212  | )      |   |   | (1,634  | )      |   |   | – |   |   |   | (3.2 | ) |   |   | (0.7 | ) |
| Unusual charge (3)                                    |   |   | – |   |   |   | 603     |   |   |   | 720     |   |   |   | – |   |   |   | 0.3 |   |   |   | 0.3 |   |
| Earnings before income taxes                          |   |   | 16,664  |   |   |   | 9,893   |   |   |   | 4,542   |   |   |   | 7.2     |   |   |   | 4.4 |   |   |   | 2.0 |   |
| Income taxes                                          |   |   | 7,764   |   |   |   | 5,036   |   |   |   | 4,286   |   |   |   | 3.4     |   |   |   | 2.2 |   |   |   | 1.9 |   |
| Net earnings for the year                             |   | $      | 8,900   |   |   | $      | 4,857   |   |   | $      | 256     |   |   |   | 3.8     | %      |   |   | 2.2 | % |   |   | 0.1 | % |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic net earnings per share                     |   | $      | 0.17    |   |   | $      | 0.09    |   |   | $      | 0.00    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Diluted net earnings per share                   |   | $      | 0.16    |   |   | $      | 0.08    |   |   | $      | 0.00    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Other selected information:                           |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Gross margin before depreciation and amortization (4) |   | $      | 145,517 |   |   | $      | 137,050 |   |   | $      | 143,970 |   |   |   | 62.6    | %      |   |   | 61.7 | % |   |   | 62.4 | % |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Research and development data:                        |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Gross research and development                        |   | $      | 47,875  |   |   | $      | 50,148  |   |   | $      | 52,423  |   |   |   | 20.6    | %      |   |   | 22.6 | % |   |   | 22.7 | % |
| Net research and development                          |   | $      | 42,687  |   |   | $      | 44,003  |   |   | $      | 44,846  |   |   |   | 18.4    | %      |   |   | 19.8 | % |   |   | 19.4 | % |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Restructuring charges included in:                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cost of sales                                         |   | $      | – |   |   | $      | 290     |   |   | $      | – |   |   |   | – | %      |   |   | 0.1 | % |   |   | – | % |
| Selling and administrative expenses                   |   | $      | – |   |   | $      | 586     |   |   | $      | – |   |   |   | – | %      |   |   | 0.3 | % |   |   | – | % |
| Net research and development expenses                 |   | $      | – |   |   | $      | 761     |   |   | $      | – |   |   |   | – | %      |   |   | 0.3 | % |   |   | – | % |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA (4)                                   |   | $      | 22,039  |   |   | $      | 13,779  |   |   | $      | 14,391  |   |   |   | 9.5     | %      |   |   | 6.2 | % |   |   | 6.2 | % |
|                                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Consolidated balance sheets data (1):                 |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total assets                                          |   | $      | 237,793 |   |   | $      | 217,478 |   |   | $      | 276,948 |   |   |   |    |   |   |   |   |   |   |   |   |   |

| (1) | Consolidated statements of earnings and balance sheets data has been derived from our consolidated financial statements prepared according with IFRS, as issued by the IASB, except for non-IFRS measures (4). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The cost of sales is exclusive of depreciation and amortization, shown separately. |
|-----|------------------------------------------------------------------------------------|

| (3) | Selling and administrative is exclusive of unusual charge, shown separately, which represents bad debt expenses arising from the revision (see Note 1 to the consolidated financial statements included in this Annual Report on Form 20-F/A). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Refer to page 52 for non-IFRS measures. |
|-----|-----------------------------------------|

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|                                                  |   | Years ended August 31, |    |
|-------------------------------------------------------|--------|------------------------|---------|
|                                                  |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |
| Physical-layer product line                           |   | $                      | 151,910 |   |   | $ | 144,060 |   |   | $ | 132,097 |   |
| Protocol-layer product line                           |   |                   | 83,324  |   |   |   | 80,591 |   |   |   | 99,618 |   |
|                                                  |   |                   | 235,234 |   |   |   | 224,651 |   |   |   | 231,715 |   |
| Foreign exchange losses on forward exchange contracts |   |                   | (2,651  | ) |   |   | (2,562 | ) |   |   | (909 | ) |
| Total sales                                           |   | $                      | 232,583 |   |   | $ | 222,089 |   |   | $ | 230,806 |   |
|                                                  |   | Years ended August 31, |    |
|-------------------------------------------------------|--------|------------------------|---------|
|                                                  |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |
| Physical-layer product line                           |   | $                      | 155,320 |   |   | $ | 144,673 |   |   | $ | 137,166 |   |
| Protocol-layer product line                           |   |                   | 87,631  |   |   |   | 80,948 |   |   |   | 104,148 |   |
|                                                  |   |                   | 242,951 |   |   |   | 225,621 |   |   |   | 241,314 |   |
| Foreign exchange losses on forward exchange contracts |   |                   | (2,651  | ) |   |   | (2,562 | ) |   |   | (909 | ) |
| Total bookings                                        |   | $                      | 240,300 |   |   | $ | 223,059 |   |   | $ | 240,405 |   |

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|     |   | Years ended August 31, |   |
|----------|--------|------------------------|--------|
|     |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|     |   |                   |   |   |   |   |   |   |   |
| Americas |   |                   | 55     | % |   |   | 54 | % |   |   | 53 | % |
| EMEA     |   |                   | 25     |   |   |   | 26 |   |   |   | 28 |   |
| APAC     |   |                   | 20     |   |   |   | 20 |   |   |   | 19 |   |
|     |   |                   | 100    | % |   |   | 100 | % |   |   | 100 | % |

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| Expiry dates                    |   | Contractualamounts |       |   | Weighted averagecontractualforward rates |   |
|---------------------------------|--------|--------------------|------------|--------|------------------------------------------|--------|
|                            |   |               |       |   |                                     |   |
| September 2016 to August 2017   |   | $                  | 22,200,000 |   |                                     |   | 1.2784 |   |
| September 2017 to August 2018   |   |               | 9,900,000  |   |                                     |   | 1.3367 |   |
| September 2018 to December 2018 |   |               | 1,900,000  |   |                                     |   | 1.3639 |   |
| Total                           |   | $                  | 34,000,000 |   |                                     |   | 1.3002 |   |
| Expiry dates                  |   | Contractualamounts |      |   | Weighted averagecontractualforward rate |   |
|-------------------------------|--------|--------------------|-----------|--------|-----------------------------------------|--------|
|                          |   |               |      |   |                                    |   |
| September 2016 to August 2017 |   | $                  | 3,800,000 |   |                                    |   | 70.92 |   |

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| (a) | Determination of functional currency |
|-----|--------------------------------------|

| (b) | Determination of cash generating units and allocation of goodwill |
|-----|-------------------------------------------------------------------|

| (a) | Inventories |
|-----|-------------|

| (b) | Income taxes |
|-----|--------------|

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| (c) | Tax credits recoverable |
|-----|-------------------------|

| (d) | Impairment of non-financial assets |
|-----|------------------------------------|

|   | EXFO CGU |   | $      | 8,663,000  |   |
|--------|----------|--------|--------|------------|--------|
|   | Brix CGU |   |   | 13,265,000 |   |
|   | Total    |   | $      | 21,928,000 |   |

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|                                          |   | Years ended August 31, |    |
|-----------------------------------------------|--------|------------------------|---------|
|                                          |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                          |   |                   |    |   |   |   |   |   |   |
| IFRS net earnings for the year                |   | $                      | 8,900   |   |   | $ | 4,857 |   |   | $ | 256 |   |
|                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Add (deduct):                                 |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Depreciation of property, plant and equipment |   |                   | 3,814   |   |   |   | 4,835 |   |   |   | 4,995 |   |
| Amortization of intangible assets             |   |                   | 1,172   |   |   |   | 2,883 |   |   |   | 4,398 |   |
| Interest and other income                     |   |                   | (828    | ) |   |   | (155 | ) |   |   | (326 | ) |
| Income taxes                                  |   |                   | 7,764   |   |   |   | 5,036 |   |   |   | 4,286 |   |
| Restructuring charges                         |   |                   | – |   |   |   | 1,637 |   |   |   | – |   |
| Unusual charge (1)                            |   |                   | – |   |   |   | 603 |   |   |   | 720 |   |
| Stock-based compensation costs                |   |                   | 1,378   |   |   |   | 1,295 |   |   |   | 1,696 |   |
| Foreign exchange gain                         |   |                   | (161    | ) |   |   | (7,212 | ) |   |   | (1,634 | ) |
| Adjusted EBITDA for the year                  |   | $                      | 22,039  |   |   | $ | 13,779 |   |   | $ | 14,391 |   |
|                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA in percentage of total sales  |   |                   | 9.5     | % |   |   | 6.2 | % |   |   | 6.2 | % |

| (1) | We have amended the calculation of adjusted EBITDA to include an adjustment for the unusual charge associated with bad debt expense, as described in Note 1, Revision to Consolidated Financial Statements, to our consolidated financial statements on the basis that the charge is not considered typical for our historical or future operating performance. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 6. | Directors, Senior Management and Employees |
|---------|--------------------------------------------|

| A. | Directors and Senior Management |
|----|---------------------------------|

| Name and Municipality of Residence                |   | Position with EXFO                                       |
|-------------------------------------------------------------|--------|--------------------------------------------------------------------|
| PIERRE-PAUL ALLARD Pleasanton, California              |   | Independent Director                                          |
| STEPHEN BULL Quebec City, Quebec                       |   | Vice-President, Research and Development                      |
| STÉPHANE CHABOT Quebec City, Quebec               |   | Vice-President, Test and Measurement                          |
| FRANÇOIS CÔTÉ Montreal, Quebec          |   | Independent Director                                          |
| DARRYL EDWARDS Weston Under Wetherley, United Kingdom  |   | Independent Director                                          |
| LUC GAGNON St-Augustin-de-Desmaures, Quebec            |   | Vice-President, Manufacturing Operations and Global Services  |
| GERMAIN LAMONDE St-Augustin-de-Desmaures, Quebec       |   | Chairman of the Board, President and Chief Executive Officer  |
| CLAUDIO MAZZUCA LaSalle, Quebec                        |   | Vice-President, Systems and Services                          |
| PHILIPPE MORIN Senneville, Quebec                      |   | Chief Operating Officer                                       |
| PIERRE PLAMONDON Quebec City, Quebec                   |   | Vice-President, Finance and Chief Financial Officer           |
| BENOIT RINGUETTE Boischatel, Quebec                    |   | General Counsel and Corporate Secretary                       |
| SYLVAIN ROULEAU Kirkland, Quebec                       |   | Vice-President, Human Capital                                 |
| MICHAEL SCHEPPKE Singapore, Singapore                  |   | Vice-President, Sales — Asia-Pacific                    |
| CLAUDE SÉGUIN Westmount, Quebec                   |   | Independent Director                                          |
| LEE HUAT (JOSEPH) SOO Singapore, Singapore             |   | Vice-President, Sales — Asia-Pacific                    |
| WILLEM JAN TE NIET Harfsen, Netherlands                |   | Vice-President, Sales — EMEA                            |
| RANDY E. TORNES Frisco, Texas                          |   | Independent Director                                          |
| DANA YEARIAN Lake Forest, Illinois                     |   | Vice-President, Sales — Americas                        |

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| B. | Compensation |
|----|--------------|

| · | Mr. François Côté (Chairman) |
|--------|---------------------------------------------|

| · | Mr. Pierre-Paul Allard |
|--------|------------------------|

| · | Mr. Darryl Edwards |
|--------|--------------------|

| · | Mr. Claude Séguin |
|--------|------------------------|

| · | Mr. Randy E. Tornes |
|--------|---------------------|

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|  Meeting            |  Main Activities of the Human Resources Committee                                                                                                                                                                                             |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    October 7, 2015  |  ●                                                                                                                                                                                                                                           |  Review of the Business Performance Measures results for the financial year ended August 31, 2015; |
| ●                       | Review of the Business Performance Measures for the financial year started September 1, 2015;                                                                                                                                                           |
| ●                       | Review of the Short-Term Incentive Plan results for the financial year ended August 31, 2015;                                                                                                                                                           |
| ●                       | Review of the Short-Term Incentive Plan for the financial year started September 1, 2015;                                                                                                                                                               |
| ●                       | Review of the proposed salary scales and salary increases for the year started September 1, 2015;                                                                                                                                                       |
| ●                       | Review of the compensation plans of executive officers for the financial year started September 1, 2015 being the Base Salary, the Short-Term Incentive Plan and the stock-based compensation delivered through the Long-Term Incentive Plan; |
| ●                       | Review and approval of the stock-based compensation plan for the sales force delivered through the Long-Term Incentive Plan for the financial year started September 1, 2015;                                                                           |
| ●                       | Review and approval of the quantum for the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2015;                                                  |
| ●                       | Review and approval of the executive compensation section of the Management proxy circular for the financial year ended August 31, 2015;                                                                                                                |
| ●                       | Review and approval of the CEO objectives and compensation plan;                                                                                                                                                                                        |
| ●                  | Review of the Risk Assessment of Executive Compensation disclosure obligations.                                                                                                                                                                    |
|    January 6, 2016  |  ●                                                                                                                                                                                                                                           |  Review and approval of the Business Performance Measures for the financial year started September 1, 2015; |
| ●                       | Review and approval of the Short-Term Incentive Plan of some executive officers for the financial year started September 1, 2015, including the CEO objectives;                                                                                         |
| ●                       | Review of the Short-Term Incentive Plan results for the financial year ended August 31, 2015;                                                                                                                                                           |
| ●                       | Review of the quarterly results under the Short-Term Incentive Plan for the financial year started September 1, 2015 and being part of the Short-Term Incentive Plan;                                                                         |
| ●                       | Review and approval of the stock-based compensation for performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2015;                                                                           |
| ●                       | Global Compensation Review;                                                                                                                                                                                                                             |
| ●                       | Leadership program;                                                                                                                                                                                                                                     |
| ●                  | Talent Management.                                                                                                                                                                                                                                 |
|    March 29, 2016   |  ●                                                                                                                                                                                                                                           |  Review of the quarterly results under the Short-Term Incentive Plan for the financial year started September 1, 2015 and being part of the Short-Term Incentive Plan; |
| ●                       | Succession Planning;                                                                                                                                                                                                                                    |
| ●                       | Review and approval of the Short-Term Incentive Plan of some executive officers for the financial year started September 1, 2015;                                                                                                                  |
| ●                       | Review of the Key Human Capital Initiatives;                                                                                                                                                                                                            |
| ●                       | Executive Compensation Review;                                                                                                                                                                                                                          |
| ●                       | Leadership program;                                                                                                                                                                                                                                     |
| ●                       | Review of the selection criteria for Board Members;                                                                                                                                                                                                     |
| ●                  | Review of the Talent Management.                                                                                                                                                                                                                   |
|    June 29, 2016    |  ●                                                                                                                                                                                                                                           |  Review of the quarterly results under the Short-Term Incentive Plan for the financial year started September 1, 2015 and being part of the Short-Term Incentive Plan; |
| ●                       | Review and approval of the Short-Term Incentive Plan of the remaining executive officers for the financial year started September 1, 2015;                                                                                                              |
| ●                       | Update on the Global Compensation Review;                                                                                                                                                                                                               |
| ●                       | Update on the Management Structure Review;                                                                                                                                                                                                              |
| ●                       | Update on the Talent Management Review;                                                                                                                                                                                                                 |
| ●                  | Review of the Key Human Capital Initiatives.                                                                                                                                                                                                       |
|    October 12, 2016 |  ●                                                                                                                                                                                                                                           |  Review of the Business Performance Measures results for the financial year ended August 31, 2016; |
| ●                       | Review of the Business Performance Measures for the financial year started September 1, 2016;                                                                                                                                                           |
| ●                       | Review of the Short-Term Incentive Plan results for the financial year ended August 31, 2016;                                                                                                                                                           |
| ●                       | Update on the Short-Term Incentive Plan for the financial year started September 1, 2016;                                                                                                                                                               |
| ●                       | Review of the proposed salary scales and salary increases for the year started September 1, 2016;                                                                                                                                                       |
| ●                       | Review of the compensation plans of executive officers for the financial year started September 1, 2016 being the Base Salary, the Short-Term Incentive Plan and the stock-based compensation delivered through the Long-Term Incentive Plan;      |
| ●                       | Review and approval of the stock-based compensation plan for the sales force delivered through the Long-Term Incentive Plan for the financial year started September 1, 2016;                                                                           |
| ●                       | Review and approval of the quantum for the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2016;                                                  |
| ●                       | Review and approval of the executive compensation section of the Management proxy circular for the financial year ended August 31, 2016;                                                                                                                |
| ●                       | Review and approval of the CEO objectives and compensation plan;                                                                                                                                                                                        |
| ●                  | Review of the Risk Assessment of Executive Compensation disclosure obligations.                                                                                                                                                                    |

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|  Type of Fee                         |  Financial 2015 Fees  |  Percentage of Financial 2015 Fees  |  Financial 2016 Fees  |  Percentage of Financial 2016 Fees  |
|----------------------------------------------------------|-------------------------------------------|--------------------------------------------------------------|-------------------------------------------|--------------------------------------------------------------|
|    Executive Compensation - Related Fees  |  CA$0,00                        |                                                         |  0%                             |                                                         |  CA$28,734  |   |  28%  |   |
|    All Other Fees                         |  CA$115,333                     |                                                         |  100%                           |                                                         |  CA$175,202  |   |  72%  |   |
|    Total                                  |  CA$115,333                     |                                                         |  100%                           |                                                         |  CA$203,936  |   |  100%  |   |

| · | Canada executives: For the executives based in Canada, the Corporation used the following comparator group: 5N Plus Inc., ACCEO Solutions, AgJunction Inc, Atos IT Services and Solutions, Inc., Avigilon Corporation, Callian Technologies Ltd., Ciena, COM DEV International Ltd., Constellation Software inc., Evertz Technologies Ltd., GTECH, Open Text Corporation, Redline Communications Group Inc., Sandvine Corporation, Sierra Wireless Inc., Smart Technologies Inc., Vecima Networks Inc., Vidéotron Ltée and Wi-Lan Inc. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | United States executives: For the executives based in the United States, the Corporation used the following comparator group: AMETEK, Avangate, BMC Software, CDK Global, Communications Systems, Crown Castle, Intelsat, Itron, Keysight Technologies, Laird Technologies, MTS Systems, Plexus, SAS Institute, SunGard Data Systems, Teradata, TomTom, Total System Services, Truphone, Verint Systems. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | United Kingdom executives: For the executives based in the United Kingdom, the Corporation used the following comparator group: BAE Systems Applied Intelligence, COLT Telecom, Flextronics, Fujitsu, Irdeto, McCain Foods, PepsiCo, Premier Food Group, QinetiQ, Qualcomm, Rentokil Initial, Talk Talk Group, Viacom. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Asia executives: For the executives based in Asia, the Corporation used a broader comparator group, based on general industry data: A.Menarini Asia-Pacific, Abbott Laboratories, AbbVie, Accenture, ACE Asia Pacific Services, ACE Insurance, ACE Life Insurance Company Ltd, ACR Capital Holdings, AIA Company, Aimia, Alcatel-Lucent, Amazon.com, ANZ Banking Group, ASML, AstraZeneca, Avanade, Aviva Ltd, AXA Insurance Singapore, AXA Life Insurance Singapore, Bank of New York Mellon, Baxter, Beckman Coulter, Becton Dickinson, BHP Billiton, Bio-Rad Laboratories, Biosensors, BT Global Services, Cerebos Pacific Limited, Chubb Pacific Underwriting, Cigna, CommScope, DHL, DHL Express, DHL GBS, DHL Global Forwarding, DHL Mail, DHL Supply Chain, Discovery Communications, Experian, Federal Insurance Company, Fujitsu, GE Energy, GE Healthcare, General Electric, Great Eastern Life Insurance, Hap Seng Consolidated, HSBC Holdings, IHS Global, IMI, Ingenico, Intel, Intercontinental Hotels Group, International Flavors & Fragrances, ITT Corporation, Johnson & Johnson, Lexmark, Liberty Insurance, M1 Limited, Manulife, MasterCard, Merck KGaA, Microsoft, Molex, MSD International GMBH (Singapore Branch), National Australia Bank, NBC Universal, NCR, Overseas Assurance Corporation, Pfizer, Pramerica Financial Asia HQ, Proximus, Prudential Assurance Company, Prudential Services, QBE Insurance, Qualcomm, Reinsurance Group of America, RELX Group, Rio Tinto, Roche Pharmaceuticals, Sabre Holdings, Sealed Air, Smiths Group, Spirax Sarco, Standard Chartered Bank, StarHub, Starwood Hotels & Resorts, Straits Developments, Swiss Reinsurance International, Teva Pharmaceutical Industries, Thermo Fisher Scientific, Trayport, TUI, UBS, Unilever, United Overseas Bank, Verizon, Zurich Insurance Company, Zurich Life Insurance. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a) | Similar industry: Technology Hardware and Equipment, Telecommunications Equipment and Services or Software and Services; and |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

| b) | Comparable in size: revenues under CA$1 billion. Only one publicly traded company had revenues above the equivalent of CA$1 billion. The compensation market comparison is done using the regression analysis which is a method to predict the "size-adjusted" competitive level of compensation to reflect the size of the Corporation in relation to that of the other companies of the reference group. This method mitigates the impact that larger companies may have on the competitive compensation levels for the Corporation. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Performance-based: Executive compensation levels reflect both the results of the Corporation and individual results based on specific quantitative and qualitative objectives established at the beginning of each financial year in keeping with the Corporation's long-term strategic objectives. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Aligned with shareholder interests: An important portion of incentive compensation for executives is composed of equity awards to ensure that executives are aligned with the principles of sustained long-term shareholder value growth. |
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| · | Market competitive: Compensation of executives is designed to be externally competitive when compared against executives of comparable peer companies, and in consideration of the Corporation's results. |
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| · | Individually equitable: Compensation levels are also designed to reflect individual factors such as scope of responsibility, experience, and performance against individual measures. |
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|  Name & Position                                          |  Annual Incentive Target as % of Base Salary  |
|-------------------------------------------------------------------------|---------------------------------------------------------|
|    Germain Lamonde, CEO                                  |  65.0%                                        |
|    Philippe Morin, COO                                   |  50.0%                                        |
|    Pierre Plamondon, Vice-President, Finance and CFO     |  42.5%                                        |
|    Jon Bradley, Vice-President, Sales — EMEA       |  70.0%                                        |
|    Dana Yearian, Vice-President, Sales — Americas  |  89.0%                                        |

|        Base Salary | X | Annual Incentive Target (%) | X | Business Performance Measures (%) | X | Individual Performance Measures (%) |
|--------------------------------------------------|---|-----------------------------|---|-----------------------------------|---|-------------------------------------|

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|  Business Performance Measures (1)  |  Weight  |  Result in % of the Weight  |  Result of the Metrics  |
|-----------------------------------------------|--------------------|---------------------------------------|-----------------------------------|
|    Consolidated revenues (2)   |  30%     |                                  |  17.85%                 |   |  US$232.6 million  |
|    Adjusted EBITDA (3)         |  45%     |                                  |  30.52%                 |   |  US$22.0 million  |
|    Quality (4)                 |  15%     |                                  |  12.75%                 |   |  95%  |
|    Net Promoter Score (5)      |  5%      |                                  |  5.88%                  |   |  70%  |
|    On-time delivery (4)        |  5%      |                                  |  4.22%                  |   |  96.5%  |
|    Total                       |  100%    |                                  |  71.22%                 |   |   |
|                                          |               |
|                                          |               |

| (1) | The corporate Adjusted EBITDA result for the year must be positive (above 0) for the whole Business Performance Measure to trigger a payout. Adjusted EBITDA represents net earnings before interest, income taxes, depreciation and amortization, restructuring charges, stock-based compensation costs and foreign exchange gain. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | For consolidated revenues metric, results will be based on the achievement from 25% to 125%, calculated on a pro-rated basis, from the revenues attained in the previous financial year (US$222.1 million) up to the target defined at the beginning of the financial year (US$252.5 million). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | For Adjusted EBITDA metric, results will be based on the achievement from 25% to 125%, calculated on a pro-rated basis, from the Adjusted EBITDA attained in the previous financial year (US$13.8 million) up to the target defined at the beginning of the financial year (US$33.1 million). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | For quality and on-time delivery metrics, results will range from nil to 100% of the weight upon attainment of a minimum threshold of 50% and 91.7%, respectively, up to the annual target defined at the beginning of the financial year and from 100% to 150% of the weight from such annual target to the maximum threshold of 125% and 99.7%, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | For Net Promoter Score metrics, results will range from nil to 100% of the weight upon attainment of a minimum threshold of 45% up to the annual target defined at the beginning of the financial year and from 100% to 150% of the weight from such annual target to the maximum threshold of 72%. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    Germain Lamonde, CEO                                                                                                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|    Elements of Individual Performance Measures1                                                                                         |  Weight (from 0% to 160%)  |  Result (%)  |
|    Financial objectives                                                                                                                 |
|    Corporate revenues                                                                                                                   |  From 0% to 35%  |  25.70%  |   |
|    Corporate EBITDA                                                                                                                     |  From 0% to 55%  |  17.85%  |   |
|    Strategic contribution                                                                                                               |
|    Merger and Acquisition activities aiming towards a Solutions oriented company                                                        |  From 0% to 20%  |  18.00%  |   |
|   Establishment and implementation of a strategic plan that will result in revenue growth in identified services and   products family  |  From 0% to 20%  |  15.50%  |   |
|    Customer Satisfaction                                                                                                                |  From 0% to 15%  |  11.63%  |   |
|    Employee Satisfaction                                                                                                                |  From 0% to 15%  |  13.50%  |   |
|    Total                                                                                                                                |   |  102.18%  |   |
|    Total of Business Performance Measures (71.22%)   X   Individual Performance Measures (102.18%)                  |   |  72.77%  |   |
|                                                                                                                                                   |   |
|                                                                                                                                                   |   |

| (1) | If the minimum level of the Corporate EBITDA, as determined at the beginning of the financial year, is not achieved, payment of any variable compensation to the CEO will be at the discretion of the Human Resources Committee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|    Philippe Morin, COO                                                                                                  |
|----------------------------------------------------------------------------------------------------------------------------------------|
|    Elements of Individual Performance Measures                                                                          |  Weight (from 0% to 150%)  |  Result (%)  |
|    Financial objectives                                                                                                 |  Weight  |  From 0% to 70%  |  49.30%  |   |
|    Corporate EBITDA                                                                                                     |  40%  |
|    Corporate revenues                                                                                                   |  30%  |
|    Strategic contribution                                                                                               |  Weight  |  From 0% to 80%  |  52.27%  |   |
|    Expending corporate revenues, profitability and positioning in selected strategic markets                            |  30% |
|   Delivering the strategies and objectives under the NEO's responsibility as set forth in the Corporation'sstrategic plan    |  30%  |
|  Positioning and transforming the Corporation to allow significant growth in Corporate EBITDAand revenues                    |  20%  |
|    Total                                                                                                                |   |   |  101.57%  |   |
|    Total of Business Performance Measures (71.22%)   X   Individual Performance Measures (101.57%)  |   |  72.34%  |   |

|    Pierre Plamondon, Vice-President, Finance and CFO                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    Elements of Individual Performance Measures                                                                                                                              |  Weight (from 0% to 150%)  |  Result (%)  |
|    Financial objectives                                                                                                                                                     |  Weight  |  From 0% to 70%  |  49.64%  |   |
|    Corporate EBITDA                                                                                                                                                         |  40%  |
|    Corporate revenues                                                                                                                                                       |  30%  |
|    Strategic contribution                                                                                                                                                   |  Weight  |  From 0% to 80%  |  73.10%  |   |
|    Delivering the strategies and objectives under the NEO's responsibility as set forth in the  Corporation's strategic plan                                           |  30%  |
|  Maintaining the highest standard and compliance in the Corporation's financial reporting; internalcontrols and corporate governance; corporate development and risk management  |  30%  |
|  Delivering a Strategic Contribution and Support in the Corporation's information technologymanagement, investors relations and legal services                                   |  20%  |
|    Total                                                                                                                                                                    |   |   |  122.74%  |   |
|    Total of Business Performance Measures (71.22%)   X   Individual Performance Measures (122.74%)                                                      |   |  87.41%  |   |

|    Jon Bradley, Vice-President, Sales — EMEA  |
|--------------------------------------------------------------------|
|  Business Performance Measures                 |  Incentive Targets (US$)  |  Results (US$)  |
|    Contribution Margin Bonus (1)                    |  73,382  |   |  68,245  |   |
|    Bonus on Billings (2)                            |  20,013  |   |  19,188  |   |
|    Bonus on Strategic Sales Objectives (3)          |  30,020  |   |  26,210  |   |
|    Long-Term Expansion Bonus (4)                    |  10,007  |   |  9,376  |   |
|    Total                                            |  133,422  |   |  123,019  |   |
|                                                               |   |
|                                                               |   |

| (1) | The amount of bonus for the attainment of the quarterly contribution margin targets for the territory of the EMEA is based on the percentage of achievement from above 35% to 100% of the quarterly contribution margin targets defined at the beginning of the financial year. An accelerated amount of bonus based on the percentage of attainment of the quarterly contribution margin targets above 100% is also payable. |
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| (2) | The amount of bonus for the attainment of the billings targets for the territory of the EMEA is based on the percentage of achievement from above 50% to 100% of the quarterly billings targets defined at the beginning of the financial year. An additional amount of bonus based on the percentage of attainment from above 100% to 125% of the quarterly billings targets is also payable. Upon percentage of achievement above 125% of the quarterly billings targets, such corresponding exceeding portion of percentage achievement is added to the next quarter for the calculation of the amount of bonus and capped to 150% of achievement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The amount of bonus for the attainment of the specific product lines bookings targets for the territory of the EMEA is based on the percentage of achievement from above 50% to 100% of the annual bookings targets of the specific product lines defined at the beginning of the financial year. An accelerated amount of bonus based on the percentage of attainment of the specific product lines bookings targets for the territory of the EMEA above 100% is also payable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The amount of bonus for the contribution margin growth targets for the territory of the EMEA in fiscal year 2017 is based on the percentage of such growth from above 5% to 15%. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    Dana Yearian, Vice-President, Sales — Americas  |
|-------------------------------------------------------------------------|
|  Business Performance Measures                      |  Incentive Targets (US$)  |  Results (US$)  |
|    Contribution Margin Bonus (1)                         |  124,979  |   |  113,142  |   |
|    Bonus on Billings (2)                                 |  31,245  |   |  30,628  |   |
|    Bonus on Strategic Sales Objectives (3)               |  33,849  |   |  19,470  |   |
|    Long-Term Expansion Bonus (4)                         |  18,226  |   |  18,226  |   |
|    Total                                                 |  208,299  |   |  181,465  |   |
|                                                                    |   |
|                                                                    |   |

| (1) | The amount of bonus for the attainment of the quarterly contribution margin targets for the territory of the Americas is based on the percentage of achievement from above 35% to 100% of the quarterly contribution margin targets defined at the beginning of the financial year. An accelerated amount of bonus based on the percentage of attainment of the quarterly contribution margin targets above 100% is also payable. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The amount of bonus for the attainment of the billings targets for the territory of the Americas is based on the percentage of achievement from above 50% to 100% of the quarterly billings targets defined at the beginning of the financial year. An additional amount of bonus based on the percentage of attainment from above 100% to 125% of the quarterly billings targets is also payable. Upon percentage of achievement above 125% of the quarterly billings targets, such corresponding exceeding portion of percentage achievement is added to the next quarter for the calculation of the amount of bonus and capped to 150% of achievement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The amount of bonus for the attainment of the specific product lines bookings targets for the territory of the Americas is based on the percentage of achievement from above 50% to 100% of the annual bookings targets of the specific product lines defined at the beginning of the financial year. An accelerated amount of bonus based on the percentage of attainment of the specific product lines bookings targets for the territory of the Americas above 100% is also payable. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The amount of bonus for the contribution margin growth targets for the territory of the Americas in fiscal year 2017 is based on the percentage of such growth from above 5% to 15%. |
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|  Name & Position                                          |  Grant Levels (1) (% of Previous Year Base Salary)  |
|-------------------------------------------------------------------------|---------------------------------------------------------------|
|    Philippe Morin, COO                                   |  50.0%                                              |  (2)  |
|    Pierre Plamondon, Vice-President, Finance and CFO     |  42.5%                                              |   |
|    Jon Bradley Vice-President, Sales ─ EMEA        |  42.5%                                              |   |
|    Dana Yearian, Vice-President, Sales ─ Americas  |  42.5%                                              |   |
|                                                                    |                                                          |
|                                                                    |                                                          |

| (1) | Actual grant value may differ from the grant level guidelines as the stock price may vary between the time of the grant and its approval. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Current year base salary since he did not have a base salary for the previous year. |
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|  Financial Year Ended  |  Grant Date    |  RSUsGranted (#)  |  Fair Valueat the Timeof Grant (US$/RSU)  |  Vesting Schedule                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------------------------------|-------------------------------|-----------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    August 31, 2016          |    October 15, 2015 |  36,900                |                                                                    |  3.23                                                                                                                                                                                                                                                                                                                                                                                                              |  50% on each of the third and fourth anniversary dates of the grant. |
|    November 9, 2015         |  109,890                 |                        |  3.43                                                              |
|    January 13, 2016         |  151,400                 |                        |  3.00                                                              |
|    July 7, 2016             |  2,500                   |                        |  3.30                                                              |
|    August 15, 2016          |  10,000                  |                        |  3.33                                                              |
|    October 15, 2015         |  206,373                 |                        |  3.23                                                              |  100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.  |
|    November 9, 2015         |  54,945                  |                        |  3.43                                                              |
|                                  |   Total                  | 572,008                     |                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|    August 31, 2015          |    October 16, 2014 |  29,150                |                                                                    |  3.71                                                                                                                                                                                                                                                                                                                                                                                                              |  50% on each of the third and fourth anniversary dates of the grant. |
|    January 14, 2015         |  163,400                 |                        |  3.55                                                              |
|    March 31, 2015           |  5,000                   |                        |  3.78                                                              |
|    July 2, 2015             |  12,299                  |                        |  3.27                                                              |
|    October 16, 2014         |  197,726                 |                        |  3.71                                                              |  100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.  |
|    July 2, 2015             |  1,946                   |                        |  3.27                                                              |
|                                  |   Total                  | 409,521                     |                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|    August 31, 2014          |    October 16, 2013 |  36,950                |                                                                    |  5.28                                                                                                                                                                                                                                                                                                                                                                                                              |  50% on each of the third and fourth anniversary dates of the grant. |
|    January 15, 2014         |  132,000                 |                        |  4.36                                                              |
|    July 3, 2014             |  29,502                  |                        |  4.77                                                              |
|    October 16, 2013         |  138,233                 |                        |  5.28                                                              |  100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.  |
|                                  |   Total                  | 336,685                     |                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|    August 31, 2013          |    October 16, 2012 |  30,006                |                                                                    |  5.06                                                                                                                                                                                                                                                                                                                                                                                                              |  50% on each of the third and fourth anniversary dates of the grant. |
|    January 16, 2013         |  145,750                 |                        |  5.61                                                              |
|    October 16, 2012         |  140,404                 |                        |  5.06                                                              |  100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.  |
|                                  |   Total                  | 316,160                     |                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|    August 31, 2012          |    October 18, 2011 |  23,000                |                                                                    |  5.43                                                                                                                                                                                                                                                                                                                                                                                                              |  50% on each of the third and fourth anniversary dates of the grant. |
|    January 17, 2012         |  8,321                   |                        |  6.61                                                              |
|    January 18, 2012         |  122,000                 |                        |  6.47                                                              |
|    January 23, 2012         |  7,576                   |                        |  6.55                                                              |
|    April 3, 2012            |  2,571                   |                        |  7.06                                                              |
|    October 18, 2011         |  163,651                 |                        |  5.43                                                              |  100% on the fifth anniversary date of the grant subject to early vesting of up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation, are fully attained.  |
|    January 23, 2012         |  6,330                   |                        |  6.55                                                              |
|    April 3, 2012            |  1,429                   |                        |  7.06                                                              |
|                                  |   Total                  | 334,878                     |                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |   |

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|  Name                     |  RSUsGranted (#)  |  Percentage of TotalRSUs Granted toEmployees inFinancial Year (%) (1)  |  Fair Valueat the Timeof Grant(US$/RSU) (2)  |  Grant Date                                                                                                                                                                                                                                                                                                                                                                                    |  Vesting Schedule (3)                                                                                                                                                                                                                                                                                                                                                                |
|-------------------------------------|-----------------------------|--------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    Philippe Morin    |  109,890          |  19.21%                                                                                                        |  3.43                                                                 |  November 9, 2015                                                                                                                                                                                                                                                                                                                                                                              |  50% on each of the third and fourth anniversary dates of the grant.                                                                                                                                                                                                                                                                                                                           |
|  54,945                   |  9.61%            |  3.43                                                                                                          |  November 9, 2015                                                     |  100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (4)  |
|    Pierre Plamondon  |  29,046           |  5.08%                                                                                                         |  3.23                                                                 |  October 15, 2015                                                                                                                                                                                                                                                                                                                                                                              |  100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (4)  |
|    Jon Bradley       |  26,575           |  4.65%                                                                                                         |  3.23                                                                 |  October 15, 2015                                                                                                                                                                                                                                                                                                                                                                              |  100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (4)  |
|    Dana Yearian      |  30,058           |  5.25%                                                                                                         |  3.23                                                                 |  October 15, 2015                                                                                                                                                                                                                                                                                                                                                                              |  100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (4)  |

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|   |   |
|--------|--------|

| (1) | Such percentage does not include any cancelled RSUs. |
|-----|------------------------------------------------------|

| (2) | The fair value at the time of grant of a RSU is equal to the market value of Subordinate Voting Shares at the time RSUs are granted. The grant date market value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | All RSUs first vesting cannot be earlier than the third anniversary date of their grant. |
|-----|------------------------------------------------------------------------------------------|

| (4) | Those RSUs granted in the financial year ended August 31, 2016 vest on the fifth anniversary date of the grant but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives, as determined by the Board of Directors of the Corporation. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. The early vesting shall be subject to the attainment of performance objectives. Such performance objectives are based on the attainment of a sales growth metric combined with profitability metric. The sales growth metric is determined by the Compound Annual Growth Rate of sales of the Corporation for the period described below (SALES CAGR). The profitability metric is determined as the Cumulative Corporation's IFRS net earnings before interest, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, foreign exchange gain or loss, change in fair value of cash contingent consideration, and extraordinary gain or loss over the Cumulative Sales for the same period (LTIP EBITDA). Accordingly, the first early vesting performance objectives will be attained, calculated on a pro-rated basis as follows: i) 100% for a SALES CAGR of 20% or more and 0% for a SALES CAGR of 5% or less for the three-year period ending on August 31, 2018; cumulated with ii) 100% for a LTIP EBITDA of 15% and 0% for a LTIP EBITDA of 7.5% or less for the three-year period ending on August 31, 2018. The second early vesting performance objectives will be attained on the same premises as described above but for the four-year period ending on August 31, 2019. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                           |  Number of RSUs (#)  |  % of Issued and Outstanding RSUs  |  Weighted Average Fair Value at the Time of Grant ($US/RSU)  |
|--------------------------------------------------------------------------------|------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|    President and CEO (one (1) individual)                       |  53,261                        |                                                             |  3.43%                                                                                               |   |  5.43  |   |
|    Board of Directors (five (5) individuals)                    |  –                       |                                                             |  –                                                                                             |   |  –  |   |
|    Management and Corporate Officers (twelve (12) individuals)  |  893,467                       |                                                             |  57.59%                                                                                              |   |  4.11  |   |

----

Table of Contents

|  DSUs Granted (#)  |  Weighted Average Fair Value at the Time of Grant (US$/DSU)  |  Total of the Fair Value at the Time of Grant (US$)  |  Vesting                                                                                             |
|-----------------------------------|----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|  44,970                 |  3.33                                                                                                |  149,750                                                                                          |    At the time director ceases to be a member of the Board ofDirectors of the Corporation  |

|                                                         |  Number of DSUs (#)  |  % of Issued and Outstanding DSUs  |  Total of the Fair Value at the Time of Grant (US$)  |  Weighted Average Fair Value at the Time of Grant (US$/DSU)  |
|--------------------------------------------------------------|------------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|    Board of Directors (five (5) individuals)  |  159,127                       |  100%                                                  |  636,508                                                                                          |  4.00                                                                                                |

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Table of Contents

|    Long-Term Incentive Plan (LTIP) - RSUs  |                         |
|-----------------------------------------------------------|------------------------------|
|  Date of Grant                                  |  Vesting Date      |  % of Early Vesting Achievement (1)  |
|  October 16, 2012                               |  October 17, 2016  |  0%  |
|  October 16, 2013                               |  October 17, 2016  |  0%  |
|                                                      |                         |
|                                                      |                         |

| (1) | The vesting schedules are provided in the table under the heading "Long-Term Incentive Plan". |
|-----|-----------------------------------------------------------------------------------------------|

|  |  |
|--|--|

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Table of Contents

|    Compensation Elements                                           |  2016          |  2015  |  2014        |  Three-Year Total  |
|-----------------------------------------------------------------------------------|--------------------------|------------------|------------------------|------------------------------|
|    Cash                                                            |                     |             |                   |                         |   |   |   |   |
|    Base Salary                                                     |  CA$700,000    |             |  CA$615,332  |                         |  CA$557,767  |   |  CA$1,873,099  |   |
|    Short-Term Incentive                                            |  CA$331,115    |             |  CA$101,022  |                         |  CA$214,300  |   |  CA$646,437  |   |
|    Equity                                                          |                     |             |                   |                         |   |   |   |   |
|    Long-Term Incentive                                             |  –       |             |  –     |                         |  –  |   |  –  |   |
|   Total Direct Compensation                                             |  CA$1,031,115       |             |  CA$716,354       |                         |  CA$772,067 |   |  CA$2,519,536 |   |
|    Pension Value                                                   |  –       |             |  –     |                         |  –  |   |  –  |   |
|    All Other Compensation                                          |  –       |             |  –     |                         |  –  |   |  –  |   |
|    Total Compensation                                              |  CA$1,031,115  |             |  CA$716,354  |                         |  CA$772,067  |   |  CA$2,519,536  |   |
|    Annual Average                                                  |  –       |             |  –     |                         |  –  |   |  CA$839,845  |   |
|    Total Market Capitalization (CA$ millions) as at August 31 (1)  |  231.9         |             |  217.6       |                         |  286.6  |   |  245.4  |   |
|    Total Cost as a % of Market Capitalization                      |  0.44%         |             |  0.33%       |                         |  0.27%  |   |  0.34%  |   |
|   |   |   |
|--------|--------|--------|
|   |   |   |

| (1) | In fiscal year 2015, the Corporation redeemed 6,521,739 subordinate voting shares under the Substantial Issuer Bid. |
|-----|---------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|  Name and Principal Position                                     |  Financial Year           |  Salary (1) (2) ($)                   |  Share-BasedAwards (2) (3) ($)   |  Option-BasedAwards ($)                 |  Non-Equity Incentive Plan Compensation ($)  |  PensionValue ($)       |  All OtherCompensation($) (2) (5)  |  TotalCompensation ($)                  |
|--------------------------------------------------------------------------------------|-------------------------------------|------------------------------------------------------|------------------------------------------------------|---------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------|---------------------------------------------------|---------------------------------------------------|
|  AnnualIncentivePlans (2) (4)                                              |  Long-TermIncentive Plan  |
|    Germain Lamonde,   President and CEO                          |  2016                     |                                                 |  527,188 (US)700,000 (CA)                  |  – –                        |    (US)  (CA)                                     |  –                |  249,371 331,115                        |    (US)  (CA)                 |  –  |  –  |  –  |   |  776,559 1,031,115  |    (US)  (CA)  |
|  2015                                                                      |                                |  508,833 (US)615,332 (CA)                  |  – –                           |    (US)  (CA)                 |  –                                                    |  83,537 101,022         |    (US)  (CA)                 |  –                                |  –  |  –  |   |  592,370 716,354  |    (US)  (CA)  |
|  2014                                                                      |                                |  517,313 (US)557,767 (CA)                  |  – –                           |    (US)  (CA)                 |  –                                                    |  198,757 214,300        |    (US)  (CA)                 |  –                                |  –  |  –  |   |  716,070 772,067  |    (US)  (CA)  |
|    Philippe Morin,   COO                                         |  2016                     |                                                 |  296,905 (US) (6)394,231 (CA)              |  564,844 749,999                        |    (US)  (CA)                                     |  –                |  107,388 142,589                        |    (US)  (CA)                 |  –  |  –  |  6,879 9,135  |    (US)  (CA)  |  976,016 1,295,954  |    (US)  (CA)  |
|    Pierre Plamondon,  Vice-President,   Finance and CFO     |  2016                     |                                                 |  221,502 (US)294,110 (CA)                  |  91,220 121,122                         |    (US)  (CA)                                     |  –                |  82,291 109,266                         |    (US)  (CA)                 |  –  |  –  |  9,064 12,035  |    (US)  (CA)  |  404,077 536,533  |    (US)  (CA)  |
|  2015                                                                      |                                |  235,665 (US)284,990 (CA)                  |  95,847 115,907                            |    (US)  (CA)                 |  –                                                    |  31,095 37,603          |    (US)  (CA)                 |  –                                |  –  |  12,212 14,768  |    (US)  (CA)  |  374,819 453,268  |    (US)  (CA)  |
|  2014                                                                      |                                |  252,938 (US)272,718 (CA)                  |  100,465 108,321                           |    (US)  (CA)                 |  –                                                    |  69,448 74,879          |    (US)  (CA)                 |  –                                |  –  |  11,667 12,579  |    (US)  (CA)  |  434,518 468,497  |    (US)  (CA)  |
|    Jon Bradley,  Vice-President,   Sales — EMEA       |  2016                     |                                                 |  179,973 (US)238,968 (CA)124,739 (£)  |  85,837113,975 59,494                   |    (US)  (CA)  (£)                      |  –                |  123,019163,344 85,264                  |    (US)  (CA)  (£)  |  –  |  –  |  –  |   |  388,829516,287 269,497  |    (US)  (CA)  (£)  |
|  2015                                                                      |                                |  193,664 (US)234,198 (CA)124,739 (£)  |  83,579101,072 53,833                      |    (US)  (CA)  (£)  |  –                                                    |  78,31594,706 50,442    |    (US)  (CA)  (£)  |  –                                |  –  |  –  |   |  355,558429,976 229,014  |    (US)  (CA)  (£)  |
|  2014                                                                      |                                |  200,594 (US)216,280 (CA)121,459 (£)  |  71,40276,986 45,740                       |    (US)  (CA)  (£)  |  –                                                    |  116,563125,678 70,579  |    (US)  (CA)  (£)  |  –                                |  –  |  –  |   |  388,559418,944 237,778  |    (US)  (CA)  (£)  |
|    Dana Yearian,  Vice-President,   Sales — Americas  |  2016                     |                                                 |  233,465 (US)309,995 (CA)                  |  97,087 128,913                         |    (US)  (CA)                                     |  –                |  181,465 240,949                        |    (US)  (CA)                 |  –  |  –  |  7,049 9,360  |    (US)  (CA)  |  519,066 689,217  |    (US)  (CA)  |
|  2015                                                                      |                                |  228,439 (US)276,251 (CA)                  |  95,369 115,330                            |    (US)  (CA)                 |  –                                                    |  156,372 189,100        |    (US)  (CA)                 |  –                                |  –  |  7,049 8,525  |    (US)  (CA)  |  487,229 589,206  |    (US)  (CA)  |
|  2014                                                                      |                                |  224,400 (US)241,948 (CA)                  |  93,329 100,627                            |    (US)  (CA)                 |  –                                                    |  140,579 151,573        |    (US)  (CA)                 |  –                                |  –  |  7,049 7,601  |    (US)  (CA)  |  465,357 501,749  |    (US)  (CA)  |
|                                                                                 |                                |                                                 |
|                                                                                 |                                |                                                 |

| (1) | Base salary earned in the financial year, regardless when paid. |
|-----|-----------------------------------------------------------------|

| (2) | The compensation information for Canadian residents has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.3278 = US$1.00 for the financial year ended August 31, 2016, CA$1.2093 = US$1.00 for the financial year ended August 31, 2015 and CA$1.0782 = US$1.00 for the financial year ended August 31, 2014. The compensation information for UK resident has been converted from British Pounds to US dollars based upon an average foreign exchange rate of £0.6931 = US$1.00 for the financial year ended August 31, 2016, £0.6441 = US$1.00 for the financial year ended August 31, 2015 and £0.6055 = US$1.00 for the financial year ended August 31, 2014 and the conversion from US dollars to Canadian dollars is made as described above. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Indicates the dollar amount based on the grant date fair value of the RSUs awarded under the LTIP for the financial year. The grant date fair value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars. Grants of RSUs to NEOs are detailed under section "Compensation Discussion and Analysis – Long-Term Incentive Plan". |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (4) | Indicates the total bonus earned during the financial year whether paid during the financial year or payable on a later date: |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   |  Name                     |  Paid during theFinancial Year EndedAugust 31, 2016 (i) ($)  |  Paid in the First Quarterof the Financial YearEnding on August 31, 2017 (i) ($)  |  Total Bonus Earned duringthe Financial YearEnded August 31, 2016 (i) ($)  |
|--------|-------------------------------------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|   |    Germain Lamonde   |  ‒ ‒                                                                           |    (US)  (CA)                                                                                                                  |  249,371 331,115                                                                                                        |    (US)  (CA)  |  249,371 331,115  |    (US)  (CA)  |
|   |    Philippe Morin    |  ‒ ‒                                                                           |    (US)  (CA)                                                                                                                  |  107,388 142,589                                                                                                        |    (US)  (CA)  |  107,388 142,589  |    (US)  (CA)  |
|   |    Pierre Plamondon  |  ‒ ‒                                                                           |    (US)  (CA)                                                                                                                  |  82,291 109,266                                                                                                         |    (US)  (CA)  |  82,291 109,266  |    (US)  (CA)  |
|   |    Jon Bradley       |  63,59184,436 44,075                                                                       |    (US)  (CA)  (£)                                                                                                   |  59,42878,908 41,189                                                                                                    |    (US)  (CA)  (£)  |  123,019163,344 85,264  |    (US)  (CA)  (£)  |
|   |    Dana Yearian      |  98,141 130,312                                                                            |    (US)  (CA)                                                                                                                  |  83,324 110,637                                                                                                         |    (US)  (CA)  |  181,465 240,949  |    (US)  (CA)  |
|   |                                |                                                                                                 |
|   |                                |                                                                                                 |

| (5) | Indicates the amount contributed by the Corporation during the financial year to the DPSP as detailed under section "Compensation Discussion and Analysis – Deferred Profit-Sharing Plan", the 401K plan as detailed under section "Compensation Discussion and Analysis – 401K plan", as applicable, for the benefit of the NEOs. Mr. Lamonde is not eligible to participate in the DPSP and Mr. Bradley did not participate. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | This amount represents the salary paid to Mr. Philippe Morin from November 9, 2015 to August 31, 2016 which is based on an annual salary of US$376,563 (CA$500,000) for the financial year ended August 31, 2016. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Name                                                      |  Outstanding Option-Based Awards (Options)  |  Outstanding Share-Based Awards (RSUs)  |
|----------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------|
|  Number ofSecuritiesUnderlyingUnexercisedOptions (#)  |  OptionExercise Price                       |  OptionExpiration Date                  |  Value ofUnexercised"in-the-money" Options  |  Number ofSharesor Units ofSharesthat Have Not Vested (#)  |  Market orPayout Value ofShare-BasedAwards thatHave Not Vested(US$) (1)  |  Market orPayout Value ofVested Share-Based AwardsNot Paid Out orDistributed (US$)  |
|    Germain Lamonde                                    |  –                                    |  –                                |  –  |  –  |  53,261  |   |  175,761  |  –  |
|    Philippe Morin                                     |  –                                    |  –                                |  –  |  –  |  164,835  |   |  543,956  |  –  |
|    Pierre Plamondon                                   |  –                                    |  –                                |  –  |  –  |  113,679  |   |  375,141  |  –  |
|    Jon Bradley                                        |  –                                    |  –                                |  –  |  –  |  88,547  |   |  292,205  |  –  |
|    Dana Yearian                                       |  –                                    |  –                                |  –  |  –  |  106,756  |   |  352,295  |  –  |
|                                                                 |                                                  |                                              |
|                                                                 |                                                  |                                              |

| (1) | The value of unvested RSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|  Name                     |  Share-Based Awards – ValueVested during the Year (US$) (1)  |  Non-Equity Incentive Plan Compensation –Value Earned during the Year (US$) (2)  |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|    Germain Lamonde   |  132,457                                                                                                   |                                                                                                                                               |  249,371  |   |
|    Philippe Morin    |  ‒                                                                                                   |                                                                                                                                               |  107,388  |   |
|    Pierre Plamondon  |  64,581                                                                                                    |                                                                                                                                               |  82,291  |   |
|    Jon Bradley       |  51,214                                                                                                    |                                                                                                                                               |  123,019  |   |
|    Dana Yearian      |  61,406                                                                                                    |                                                                                                                                               |  181,465  |   |
|                                |                                                                                                                 |
|                                |                                                                                                                 |

| (1) | The aggregate dollar value realized is equivalent to the market value of the Subordinate Voting Shares underlying the RSUs at vesting. This value, as the case may be, has been converted from Canadian dollars to US dollars based upon the noon buying rate of the Bank of Canada on the day of vesting. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes total non-equity incentive plan compensation earned by each NEO in respect to the financial year ended on August 31, 2016 (as indicated under the "Summary Compensation Table"). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|  Named Executive Officer         |  Termination Payment Event                    |
|------------------------------------------------------|-------------------------------------------------------------------|
|  Without Cause ($) (1) (2)  |  Change of Control ($) (2) (3) (4)  |  Voluntary ($)  |
|    Germain Lamonde                    |  1,748,061 2,292,850                                    |    (US) (5)  (CA)  |  1,748,061 2,292,850  |    (US)  (CA)  |  175,761 230,620  |    (US) (6)  (CA)  |
|    Philippe Morin                     |  496,315 651,026                                        |    (US)  (CA)  |  925,170 1,213,736  |    (US)  (CA)  |  –  |   |
|    Pierre Plamondon                   |  419,202 549,926                                        |    (US)  (CA)  |  836,459 1,097,294  |    (US)  (CA)  |  –  |   |
|    Jon Bradley                        |  306,092401,544 233,035                                 |    (US)  (CA)  (£)  |  705,963926,094 537,467  |    (US)  (CA)  (£)  |  –  |   |
|    Dana Yearian                       |  411,503 539,821                                        |    (US)  (CA)  |  974,690 1,278,586  |    (US)  (CA)  |  –  |   |
|                                                 |                                                              |
|                                                 |                                                              |

| (1) | The aggregate amount disclosed includes an evaluation of the amount that the NEO would have been entitled to should a termination of employment without cause have occurred on August 31, 2016 and includes, as the case may be for each NEO, the base salary that would have been received and total value of RSUs and options that would have vested (with the exception of Mr. Lamonde's evaluation which is described in note 6 below and includes: the base salary, STIP compensation, and total value of RSUs and options that would have vested). The amount for base salary compensation is calculated according to those amounts provided under the section entitled "Summary Compensation Table" included in this Annual Report. The amount for the total value attached to the vesting of RSUs and options determined pursuant to the LTIP as described in the section entitled "Long-Term Incentive Compensation – Long-Term Incentive Plan" for termination without cause. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | The aggregate amount for Canadian residents has been converted from Canadian dollars to US dollars based upon a foreign exchange rate of CA$1.3116 = US$1.00 as of August 31, 2016. The aggregate amount for UK resident has been converted from British Pounds to US dollars based upon a foreign exchange rate of £0.7613 = US$1.00 as of August 31, 2016. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | "Change of Control" is defined as a merger or an acquisition by a third party of substantially all of the Corporation's assets or of the majority of its share capital. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The aggregate amount disclosed includes, as the case may be for each NEO, an evaluation of the amount that the NEO would have been entitled to should a termination of employment for Change of Control have occurred on August 31, 2016 and includes, as the case may be, namely, the base salary, STIP or SIP compensation and total value of RSUs and options that would have vested. The amount for base salary and STIP or SIP compensation are calculated according to those amounts provided under the section entitled "Summary Compensation Table" included in this Annual Report, the total value attached to the vesting of RSUs and options is calculated according to those amounts provided in the columns named "Value of unexercised "in-the-money" options" and "Market or payout value of share-based awards that have not vested" of the table included under the heading entitled "Outstanding share-based awards and option-based awards". |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The aggregate amount disclosed includes an evaluation of the amount that Mr. Lamonde would have been entitled to should a termination of employment without cause have occurred on August 31, 2016 and includes: the base salary, STIP compensation, and total value of RSUs and options that would have vested. The amount for base salary and STIP compensation are calculated according to those amounts provided under the section entitled "Summary Compensation Table" included in this Annual Report; the total value attached to the vesting of RSUs and options are calculated according to those amounts provided in the columns named "Value of unexercised "in-the-money" options" and "Market or payout value of share-based awards that have not vested" of the table included under the heading entitled – "Outstanding share-based awards and option-based awards". |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The aggregate amount disclosed includes an evaluation of the amount that Mr. Lamonde would have been entitled to should a voluntary termination of employment have occurred on August 31, 2016 and includes: the total value of RSUs and options that would have vested. The amount for the total value attached to the vesting of RSUs and options are calculated according to those amounts provided in the columns named "Value of unexercised "in-the-money" options" and "Market or payout value of share-based awards that have not vested" of the table included under the heading entitled "Outstanding share-based awards and option-based awards". |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    Annual Retainer for Directors (1)                       |  CA$57,000  |    (2)  |  US$42,928  |    (3)  |
|---------------------------------------------------------------------------|-----------------------|------------------------|-----------------------|------------------------|
|    Annual Retainer for Lead Director                       |  CA$8,000   |                   |  US$6,025   |    (3)  |
|    Annual Retainer for Audit Committee Chairman            |  CA$8,000   |                   |  US$6,025   |    (3)  |
|    Annual Retainer for Audit Committee Members             |  CA$4,000   |                   |  US$3,013   |    (3)  |
|    Annual Retainer for Human Resources Committee Chairman  |  CA$6,000   |                   |  US$4,519   |    (3)  |
|    Annual Retainer for Human Resources Committee Members   |  CA$3,000   |                   |  US$2,259   |    (3)  |
|                                                                      |                  |
|                                                                      |                  |

| (1) | All the Directors elected to receive 50% of their Annual Retainer for Directors in form of DSUs except Mr. Randy E. Tornes who elected to receive 100% of his Annual Retainer in form of DSUs. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The Annual Retainer for Mr. Pierre-Paul Allard and Mr. Randy E. Tornes is US$57,000 (CA$75,685). |
|-----|--------------------------------------------------------------------------------------------------|

| (3) | The compensation information has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.3278 = US$1.00 for the financial year ended August 31, 2016. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Name                                 |  FeesEarned (1) ($)  |  Share-BasedAwards ($)   |  Option-BasedAwards ($)  |  Non-EquityIncentive PlanCompensation ($)  |  PensionValue ($)  |  All OtherCompensation ($)  |  Total ($)  |
|-------------------------------------------------|-------------------------------------|------------------------------------|------------------------------------|-----------------------------------------------------------|------------------------------|--------------------------------------------|-----------------------|
|    Pierre-Paul Allard            |  62,272 82,684            |    (US)  (CA)  |  –                 |  –                                        |  –           |  –                         |  –    |  62,272 82,684  |    (US)  (CA)  |
|    François Côté  |  54,366 72,187            |    (US)  (CA)  |  –                 |  –                                        |  –           |  –                         |  –    |  54,366 72,187  |    (US)  (CA)  |
|    Darryl Edwards                |  50,318 66,813            |    (US)  (CA)  |  –                 |  –                                        |  –           |  –                         |  –    |  50,318 66,813  |    (US)  (CA)  |
|    Claude Séguin            |  51,212 68,000            |    (US)  (CA)  |  –                 |  –                                        |  –           |  –                         |  –    |  51,212 68,000  |    (US)  (CA)  |
|    Randy E. Tornes               |  62,272 82,685            |    (US)  (CA)  |  –                 |  –                                        |  –           |  –                         |  –    |  62,272 82,685  |    (US)  (CA)  |
|                                            |                                |
|                                            |                                |

| (1) | The compensation information has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$1.3278 = US$1.00 for the financial year ended August 31, 2016 except for compensation amounts paid to Mr. Pierre-Paul Allard and Mr. Randy E. Tornes which were paid in US dollars for the portion of their annual retainer for Directors. The fees are always payable in cash, but executives are provided the opportunity to elect to exchange all or a portion of their Annual Retainer for Directors into DSUs. The following table identifies the portion of the fees earned by the directors that were paid in DSUs and the portion that were paid in cash. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  Name                                      |  Fees Earned  |
|--------|------------------------------------------------------|------------------------------|
|   |  DSUs ($) (i)                    |  Cash ($)     |  Total ($)  |
|   |    Pierre-Paul Allard (ii)            |  28,500 37,842     |    (US)  (CA)  |  33,772 44,842  |    (US)  (CA)  |  62,272 82,684  |    (US)  (CA)  |
|   |    François Côté (ii)  |  21,464 28,500     |    (US)  (CA)  |  32,902 43,687  |    (US)  (CA)  |  54,366 72,187  |    (US)  (CA)  |
|   |    Darryl Edwards (ii)                |  21,464 28,500     |    (US)  (CA)  |  28,854 38,313  |    (US)  (CA)  |  50,318 66,813  |    (US)  (CA)  |
|   |    Claude Séguin (ii)            |  21,464 28,500     |    (US)  (CA)  |  29,748 39,500  |    (US)  (CA)  |  51,212 68,000  |    (US)  (CA)  |
|   |    Randy E. Tornes (iii)              |  57,000 75,685     |    (US)  (CA)  |  5,272 7,000  |    (US)  (CA)  |  62,272 82,685  |    (US)  (CA)  |
|   |                                                 |                         |
|   |                                                 |                         |

| (i) | The estimated value at the time of grant of a DSU is determined based on the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars, as required. The value at vesting of a DSU is equivalent to the market value of a Subordinate Voting Share when a DSU is converted to such Subordinate Voting Share. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Elected to receive 50% of his Annual Retainer for Directors in form of DSUs. |
|------|------------------------------------------------------------------------------|

| (iii) | Elected to receive 100% of his Annual Retainer for Directors in form of DSUs. |
|-------|-------------------------------------------------------------------------------|

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|  Name                                                                                                      |  Outstanding Share-Based Awards (DSUs)                                                                                  |
|----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|  Number of Shares or Units ofShares that Have Not Vested (#)  |  Market or Payout Value ofShare-Based Awards thatHave Not Vested(US$) (1)  |  Market or Payout Value ofVested Share-Based AwardsNot Paid Out or Distributed (US$)  |
|    Pierre-Paul Allard                                                                                 |  48,883                                                                                                                 |   |  161,314  |   |  ‒  |
|    François Côté                                                                       |  10,809                                                                                                                 |   |  35,670  |   |  –  |
|    Darryl Edwards                                                                                     |  28,217                                                                                                                 |   |  93,116  |   |  –  |
|    Claude Séguin                                                                                 |  21,755                                                                                                                 |   |  71,792  |   |  –  |
|    Randy E. Tornes                                                                                    |  49,463                                                                                                                 |   |  163,228  |   |  –  |
|                                                                                                                 |                                                                                                                              |
|                                                                                                                 |                                                                                                                              |

| (1) | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Name                   |  Number of DSUs Converted  |  Aggregate Value Realized (US$) (1)  |
|-----------------------------------|--------------------------------------|------------------------------------------------|
|    Guy Marier (2)  |  653                       |  1,955                               |
|                              |                                 |
|                              |                                 |

| (1) | The aggregate value realized is equivalent to the market value of the securities underlying the DSUs at conversion. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (2) | Mr. Marier ceased to be a member of the Board of Directors as of January 7, 2015. |
|-----|-----------------------------------------------------------------------------------|

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|  Plan Category                                 |  Number of Securities to BeIssued upon Exercise ofOutstanding Options,RSUs and DSUs (#) (a)  |  Weighted-Average ExercisePrice of Outstanding Options,RSUs and DSUs (US$) (b)  |  Number of Securities RemainingAvailable for Future Issuance underEquity Compensation Plans (ExcludingSecurities Reflected in Column (a)) (#) (c)  |
|----------------------------------------------------------|--------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    LTIP – RSUs                      |  1,551,555                                                                                   |                                                                                      |  n/a (1)                                                                                                                                           |   |  867,716  |
|    LTIP – Options                   |  –                                                                                     |                                                                                      |  –                                                                                                                                           |   |
|    Deferred Share Unit Plan – DSUs  |  159,127                                                                                     |                                                                                      |  n/a (1)                                                                                                                                           |   |
|                                                     |                                                                                                   |
|                                                     |                                                                                                   |

| (1) | The value of RSUs and DSUs will be equal to the market value of the Subordinate Voting Shares of the Corporation on the date of vesting. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | August 31, |   |
|----------------------------------------------------|--------|------------|--------|
|                                               |   | 2011       |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | 2015 |   |   | 2016 |   |
| EXFO Subordinate Voting Shares (CA$)               |   | $          | 100    |   |   | $ | 70 |   |   | $ | 70 |   |   | $ | 70 |   |   | $ | 59 |   |   | $ | 63 |   |
| S&P/TSX Composite Index (CA$)                  |   | $          | 100    |   |   | $ | 94 |   |   | $ | 100 |   |   | $ | 123 |   |   | $ | 109 |   |   | $ | 115 |   |
| NEOs' total compensation (in millions of CA$) |   | $          | 2.7    |   |   | $ | 2.5 |   |   | $ | 2.3 |   |   | $ | 2.6 |   |   | $ | 2.6 |   |   | $ | 4.1 |   |

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| · | The Corporation's share performance decreased from the financial year that began on September 1, 2011 to the financial year ended August 31, 2012. Total compensation received by the NEOs during this period was aligned with the decrease in the Corporation's share price. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Despite the relative stability of the Corporation's share price as at August 31, 2013 compared to the previous financial year, total compensation to the NEOs decreased. This decrease in NEOs compensation reflected financial results below expectations for financial 2013 and consequently was aligned with shareholders' interests. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Corporation's share price remained relatively flat as at August 31, 2014 compared to the previous financial year, but total NEO compensation increased for that year. This rise in NEO compensation can be explained mainly by the progressive adjustment of the CEO's base salary, as he no longer received equity-based compensation, as well as adjustments to align executive compensation with the Target Compensation Positioning offered within a reference market of comparable companies similar in size to the Corporation. This was deemed necessary to maintain a competitive position within the marketplace and retain key executives. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Corporation's share price decreased as at August 31, 2015 compared to the previous financial year, while total NEO compensation as expressed in Canadian dollars remained flat for the same period. It should be noted, however, three out of five NEOs were remunerated in currencies other than the Canadian dollar. On a constant currency basis, total NEO compensation would have decreased by about CA$100,000 year-over-year. As a result, total compensation received by the NEOs for this period was aligned with share price performance. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Corporation's share performance increased from September 1, 2015 to August 31, 2016. Total compensation received by the NEOs during this period also increased but at a higher rate than the Corporation's share price. It should be noted that the Corporation hired an executive to the newly created position of Chief Operating Officer in the early part of the financial year, which also contributed to the increase in total compensation received by the NEOs during this period. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| C. | Board Practices |
|----|-----------------|

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|    GERMAIN LAMONDE  |
|------------------------------------|
|                          |    St-Augustin-de-Desmaures,   Quebec, Canada  Director since September 1985  Not Independent (Management)  Principal Occupation:  Chairman of the Board of Directors,  President and Chief Executive Officer   of the Corporation  |  Germain Lamonde, a founder of EXFO, has been President and Chief Executive Officer of EXFO since its inception in 1985. He has also been Chairman of the Board since EXFO went public in 2000. Responsible for the overall management and strategic direction of EXFO, Mr. Lamonde has grown the company from the ground up into a global leader in the test, service assurance and analytics markets. Mr. Lamonde has served on the board of directors of several organizations such as the Canadian Institute for Photonic Innovations, the POLE QCA Economic Development Corporation, the National Optics Institute of Canada (INO) and Université Laval in Quebec City, to name a few. Mr. Lamonde has also been involved in numerous charity organizations such as United Way and served as honorary President for the Leucan Shaved Head initiative for the Quebec City Region. Germain Lamonde holds a bachelor's degree in engineering physics from the University of Montreal's School of Engineering (École Polytechnique), a master's degree in optics from Université Laval, and is also a graduate of the Ivey Executive Management Program offered by the University of Western Ontario.  |
|    Board/Committee Membership          |  Attendance (1)                 |    Board Memberships of Another Reporting Issuer  |
|-------------------------------------------------------|-------------------------------------------|------------------------------------------------------------------|
|    Chairman of the Board of Directors  |  6/6                            |  100%                                                  |    –  |
|  Securities Held                            |
|  As at                                      |  Subordinate Voting Shares (#)  |  Multiple Voting Shares (#)                            |  RSUs (#)  |  Total Shares (2) and RSUs (#)  |  Total Market Value (3)of Shares (2) and RSUs (US$)  |
|  August 31, 2016                            |  4,316,247 (4)                  |  31,643,000 (5)                                        |  53,261  |  36,012,508  |  118,841,276  |
|   |   |
|--------|--------|
|   |   |

| (1) | From September 1, 2015 until November 1, 2016, Mr. Lamonde attended five (5) board meetings in person and one (1) board meeting by telephone. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes both Subordinate Voting Shares and Multiple Voting Shares. |
|-----|---------------------------------------------------------------------|

| (3) | The value of unvested RSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares and Multiple Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of RSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Lamonde exercises control over 4,000,000 of Subordinate Voting Shares through G. Lamonde Investissements Financiers Inc., a company controlled by Mr. Lamonde. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Lamonde exercises control over this number of Multiple Voting Shares through G. Lamonde Investissements Financiers Inc., a company controlled by Mr. Lamonde and through Fiducie Germain Lamonde, a family trust for the benefit of Mr. Lamonde's family. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|    PIERRE-PAUL ALLARD                                                                                              |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |  Pleasanton, California, USADirector since September 2008IndependentPrincipal Occupation:Senior Vice-President, Worldwide Sales andPresident Global Field Operations,Check Point Software Technologies Inc. (1)  |  Pierre-Paul Allard was appointed a member of our Board of Directors in September 2008 and has been a board member of many other technology companies in Canada and in the US. Mr. Allard is Senior Vice-President, Worldwide Sales and President Global Field Operations at Check Point Software Technologies Inc. As Chief Revenue Officer, Mr. Allard is responsible for all go-to-market at Check Point. Prior to joining Check Point in July 2016, Mr. Allard led the go to market and sales teams at Avaya Inc. for 4 years. Prior to this, he worked for nineteen (19) years at Cisco Systems, Inc., where he most recently held the position of Vice-President, Sales and Operations, Global Enterprise. Previously, Mr. Allard was President of Cisco Systems Canada, and before that he held various management roles at IBM Canada for twelve (12) years. In 2002, Mr. Allard co-chaired the Canadian e-Business Initiative, a private-public partnership aiming to measure the role e-Business plays in increasing productivity levels, job creation and competitive position. In 1998, he was the laureate of the Arista-Sun life Award, for Top Young Entrepreneur in Large Enterprise, conferred by the Montreal Chamber of Commerce. In 2003, he received the Queen's Golden Jubilee Medal, which highlights significant contributions to Canada. In the same year, he was also awarded the prestigious Trudeau Medal from the University of Ottawa, Telfer School of Management. Pierre-Paul Allard holds a bachelor's and masters' degree in business administration from the University of Ottawa, Canada.  |
|    Board/Committee Membership                                                                                      |  Attendance (2)  |    Board Memberships of Another Reporting Issuer  |
|    Board of Directors  Audit Committee  Human Resources Committee   Independent Board of Directors  |  5/64/54/5 4/5  |  83%80%80% 80%  |    –  |
|  Securities Held  |
|-----------------------------|
|  As at            |  Subordinate Voting Shares (#)  |  DSUs (#)  |  Total Shares and DSUs (#)  |  Total Market Value (3)of Shares (4) and DSUs (US$)  |
|  August 31, 2016  |  8,000  |  48,883  |  56,883  |  187,714  |
|   |   |
|--------|--------|
|   |   |

| (1) | Check Point Software Technologies Inc. is an international provider of software products for IT security, including network security, endpoint security, data security and security management |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | From September 1, 2015 until November 1, 2016, Mr. Allard attended four (4) board meetings in person and one (1) board meeting by telephone. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Refers to Subordinate Voting Shares. |
|-----|--------------------------------------|

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|    FRANÇOIS CÔTÉ                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |    Montreal, Quebec, Canada  Director since January 2015  Lead Director  Independent  Principal Occupation:   Director |  François Côté is a director as a full-time occupation, for corporations in the public, private and non-profit sectors, bringing his expertise in strategy, M&A, governance and passion for growth. Mr. Côté held a variety of executive positions at Bell Canada prior to becoming President and Chief Executive Officer of Emergis. Following the acquisition of Emergis by TELUS in January 2008, he was appointed President of TELUS Quebec, TELUS Health and TELUS Ventures. In this role, Mr. Côté was responsible for broadening TELUS Quebec's presence and driving the company's national health strategy through timely investments in information technology and innovative wireless solutions. Mr. Côté holds a Bachelor's degree in Industrial Relations from Laval University. In 2007, he was named Entrepreneur of the Year by Ernst & Young, in the Corporate Restructuring category for the province of Quebec. Mr. Côté serves on the boards of Alithya and Lumenpulse Inc. (LMP) as well as the Advisory Board of the McGill Centre for the Convergence of Health and Economics (MCCHE). He is also Chairman of the Board for Norda Stelo, Vice-President of the Board of the Foundation Dr. Julien and Board member of the Fondation Martin Matte. In June 2013, Mr. Côté was named Honourary Lieutenant-Colonel of the Canadian Armed Forces' 34th Signal Regiment.  |
|    Board/Committee Membership                                                                                      |  Attendance (2)  |    Board Memberships of Another Reporting Issuer  |
|    Board of Directors  Audit Committee  Human Resources Committee   Independent Board of Directors  |  5/65/55/5 5/5  |  83%100%100% 100%  |    Lumenpulse Inc.  |

|  Securities Held  |
|-----------------------------|
|  As at            |  Subordinate Voting Shares (#)  |  DSUs (#)  |  Total Shares and DSUs (#)  |  Total Market Value (3)of Shares (4) and DSUs (US$)  |
|  August 31, 2016  |  3,000  |  10,809  |  13,809  |  45,570  |

|   |   |
|--------|--------|
|   |   |

| (1) | From September 1, 2015 until November 1, 2016, Mr. Côté attended five (5) board meetings in person and no board meeting by telephone. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Refers to Subordinate Voting Shares. |
|-----|--------------------------------------|

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|    ANGELA LOGOTHETIS                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |    Bath   United Kingdom  Proposed nominee for Director to the  January 2017 shareholders' meeting  Independent  Principal Occupation:  Vice-President, Head of Technology  and Services  Amdocs (1)  |  Angela Logothetis has more than 25 years of international experience in the telecommunications industry. She has been strategically engaged in the industry's major network transformations. Ms. Logothetis has an outstanding software pedigree having worked for market-leading software companies including Amdocs, Cramer, PricewaterhouseCoopers and Accenture as well as start-up software companies Clarity and Time Quantum Technology. She has held senior leadership positions in ANZ, APAC and EMEA and has held global responsibility for the past 10 years. Ms. Logothetis is the Head of Network Strategy, Technology and Services for Amdocs. Amdocs is the market leader in customer experience software solutions and services for the world's largest communications, entertainment and media service providers. Ms. Logothetis has held several senior leadership positions at Amdocs including Head of OSS Product and Technology, Vice-President of OSS Product Management and Executive Site Lead for Amdocs Bath. She has chaired high-caliber software forums in Amdocs including the Divisional Leadership Team, the Technical Advisory Council, and has served as an executive on the Product Business Management Team and the Product Leadership Forum. Ms. Logothetis holds a Bachelor of Science degree, with first class honors, in Business Information Technology from the University of NSW, Australia. She completed dual majors in accountancy and information technology.  |
|    Board/Committee Membership                                                                                      |  Attendance (2)  |    Board Memberships of Another Reporting Issuer  |
|    Board of Directors  Audit Committee  Human Resources Committee   Independent Board of Directors  |  N/AN/AN/A N/A  |  N/AN/AN/A N/A  |    –  |
|  Securities Held  |
|-----------------------------|
|  As at            |  Subordinate Voting Shares (#)  |  DSUs (#)  |  Total Shares and DSUs (#)  |  Total Market Value (3)of Shares (4) and DSUs (US$)  |
|  August 31, 2016  |  –  |  –  |  –  |  –  |
|   |   |
|--------|--------|
|   |   |

| (1) | Amdocs is a market leader in software solutions and services for communications, media and entertainment service providers. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (2) | Ms. Logothetis, if elected, will join our Board of Directors on January 11, 2017. Hence, from September 1, 2015 until November 1, 2016, Ms.  Logothetis did not attend any meetings. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|    CLAUDE SÉGUIN                                                                                              |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |    Westmount, Quebec,   Canada  Director since February 2013  Independent  Principal Occupation:  Special Advisor to the Founder and  Executive Chairman,  CGI Group Inc. (1)  |  Claude Séguin was appointed a member of EXFO's Board of Directors in February 2013. He brings to EXFO nearly forty (40) years of corporate, financial, executive and provincial government experience gained through senior management positions in major corporations and government departments. Mr. Séguin is currently Special advisor to the Founder and Executive Chairman at CGI Group Inc., a global leader in information technology and business process services. He was, until October 2016, Senior Vice-President, Corporate Development and Strategic Investments. In this position, he was responsible for all merger and acquisition activities. Prior to joining CGI in 2003, he served as President of CDP Capital—Private Equity, and prior to this position, he served as Teleglobe Inc.'s Executive Vice-President, Finance and Chief Financial Officer, a position that he held from 1992 to 2000. Mr. Séguin also has extensive senior-level government experience, having served as Deputy Finance Minister of the Province of Québec from 1987 to 1992, in addition to Assistant Deputy Finance Minister. Prior to that, he has been Director of Planning and Assistant Director of Social Programs at the Province of Quebec Treasury Board. Mr. Séguin is a member of the boards of HEC-Montréal and Centraide of Greater Montreal Foundation as well as being Chairman of the Board of Finance – Montreal, an organization regrouping financial institutions in the Province of Quebec. Claude Séguin graduated from HEC-Montréal and earned a master's and a Ph.D. in public administration from Syracuse University in New York State. He also followed the Advanced Management Program at Harvard Business School.  |
|    Board/Committee Membership                                                                                      |  Attendance (2)  |    Board Memberships of Another Reporting Issuer  |
|    Board of Directors  Audit Committee  Human Resources Committee   Independent Board of Directors  |  6/65/55/5 5/5  |  100%100%100% 100%  |    –  |
|  Securities Held  |
|-----------------------------|
|  As at            |  Subordinate Voting Shares (#)  |  DSUs (#)  |  Total Shares and DSUs (#)  |  Total Market Value (3)of Shares (4) and DSUs (US$)  |
|  August 31, 2016  |  –  |  21,755  |  21,755  |  71,792  |
|   |   |
|--------|--------|
|   |   |

| (1) | CGI Group Inc. is an information technology consulting, systems integration, outsourcing and solutions company. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (2) | From September 1, 2015 until November 1, 2016, Mr. Séguin attended five (5) board meetings in person and one (1) board meeting by telephone. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Refers to Subordinate Voting Shares. |
|-----|--------------------------------------|

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|    RANDY E. TORNES                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |    Frisco, Texas, USA    Director since February 2013  Independent  Principal Occupation:   Vice-President, Strategic Alliances,  Juniper Networks (1)  |  Randy E. Tornes was appointed a member of EXFO's Board of Directors in February 2013. He brings to EXFO over thirty (30) years of telecommunications experience gained through senior management positions at leading network equipment manufacturers. Mr. Tornes is Vice-President, Strategic Alliances at Juniper Networks, a worldwide leader in high-performance networking and telecommunications equipment. Prior to his current role at Juniper, he was the Operating Area Leader for AT&T and responsible for all sales, service and support of Juniper products and services. Prior to joining Juniper Networks in May 2012, he spent two (2) years at Ericsson, where he was Vice-President Sales (AT&T account). Previous to that position, he worked for Nortel for twenty-six (26) years, holding various sales management positions, including Vice-President Sales, GSM Americas. Mr. Tornes also served as member of the Board of Governors at 3G Americas LLC. Randy E. Tornes holds a Bachelor of Science degree in business—organizational development and production and operations management, from the University of Colorado in Colorado Springs.  |
|    Board/Committee Membership                                                                                      |  Attendance (2)  |    Board Memberships of Another Reporting Issuer  |
|    Board of Directors  Audit Committee  Human Resources Committee   Independent Board of Directors  |  5/65/55/5 4/5  |  83%100%100% 80%  |    –  |
|  Securities Held  |
|-----------------------------|
|  As at            |  Subordinate Voting Shares (#)  |  DSUs (#)  |  Total Shares and DSUs (#)  |  Total Market Value (3)of Shares (4) and DSUs (US$)  |
|  August 31, 2016  |  –  |  49,463  |  49,463  |  163,228  |
|   |   |
|--------|--------|
|   |   |

| (1) | Juniper Networks is a manufacturer of networking equipment. |
|-----|-------------------------------------------------------------|

| (2) | From September 1, 2015 until November 1, 2016, Mr. Tornes attended four (4) board meetings in person and one (1) board meeting by telephone. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2016, which was US$3.30 (CA$4.33). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2016 using the noon buying rate of the Bank of Canada to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Refers to Subordinate Voting Shares. |
|-----|--------------------------------------|

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| a) | is, as at the date hereof, or has been, within ten (10) years before the date hereof, a director, chief executive officer or chief financial officer of any company that (i) was subject to an order that was issued while such individual was acting in the capacity as director, chief executive officer or chief financial officer, or (ii) was subject to an order that was issued after such individual 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; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | is, as at the date hereof, or has been within ten (10) years before the date hereof, a director or executive officer of any company that, while such individual was acting in that capacity, or within a year of that individual ceasing to act in that capacity, became 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; |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | has, within the ten (10) years before the date hereof, 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 assets; or |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | has been subject to (i) 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 (ii) 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 such individual. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| D. | Employees |
|----|-----------|

| E. | Share Ownership |
|----|-----------------|

|  Name                                                   |  Subordinate VotingShares Owned  |  Currently Exercisable OptionsOwned as at November 1, 2016  |  Total SubordinateVoting SharesBeneficially Owned (1)  |  Multiple Voting Shares Beneficially Owned (1)  |  Total Percentageof Voting Power  |
|-------------------------------------------------------------------|--------------------------------------------|-----------------------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------|---------------------------------------------|
|  "In-the-money"                                         |  Out-the-money                   |
|  Number                                                 |                                       |  Percent                                                    |  Number                                                |  Percent                                             |  Number                           |  Percent  |  Number  |  Percent  |  Number  |   |  Percent  |  Percent  |
|  Germain Lamonde                                        |  4,316,247                       |    (2)                                                 |  18.93                                                 |  –                                             |  *                                |  –  |  *  |  4,316,247  |  18.93  |  31,643,000  |    (3)  |  100  |  94.55  |
|  Philippe Morin                                         |  –                         |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  –  |  *  |  –  |   |  –  |  *  |
|  Pierre Plamondon                                       |  127,951                         |    (4)                                                 |  *                                                     |  –                                             |  *                                |  –  |  *  |  127,951  |  *  |  –  |   |  –  |  *  |
|  Pierre-Paul Allard                                     |  8,000                           |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  8,000  |  *  |  –  |   |  –  |  *  |
|  François Côté                           |  3,000                           |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  3,000  |  *  |  –  |   |  –  |  *  |
|  Darryl Edwards                                         |  –                         |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  –  |  *  |  –  |   |  –  |  *  |
|  Claude Séguin                                     |  –                         |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  –  |  *  |  –  |   |  –  |  *  |
|  Randy E. Tornes                                        |  –                         |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  –  |  *  |  –  |   |  –  |  *  |
|  Jon Bradley                                            |  –                         |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  –  |  *  |  –  |   |  –  |  *  |
|  Dana Yearian                                           |  34,181                          |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  34,181  |  *  |  –  |   |  –  |  *  |
|  Other executive officers as a group                    |  66,463                          |                                                                  |  *                                                     |  –                                             |  *                                |  –  |  *  |  66,463  |  *  |  –  |   |  –  |  *  |
|  All of our Directors and executive officersas a group  |  4,555,842                       |                                                                  |  19.98                                                 |  –                                             |  *                                |  –  |  *  |  4,555,842  |  19.98  |  31,643,000  |   |  100  |  94.62  |

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Table of Contents

|   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| * | Less than 1%. |
|---|---------------|

| (1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Options that are currently exercisable or exercisable within sixty (60) days as at November 1, 2016 (including options that have an exercise price above the market price) are deemed to be outstanding and to be beneficially owned by the person holding such options for the purpose of computing the percentage ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. Accordingly, DSUs and RSUs are not included. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The number of shares held by Germain Lamonde includes 4,000,000 subordinate voting shares held of record by G. Lamonde Investissements financiers Inc. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The number of shares held by Germain Lamonde includes 1,900,000 multiple voting shares held of record by Fiducie Germain Lamonde and 29,743,000 multiple voting shares held of record by G. Lamonde Investissements Financiers Inc. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The number of shares held by Pierre Plamondon includes 6,874 subordinate voting shares held of record by Fiducie Pierre Plamondon. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

|                                | DSUs    |        | RSUs       |
|-------------------------------------|---------|-------------|------------|
|  Name                          | Number  |        | Percentage | Estimated AverageValue at the time ofgrant US$/DSU (1) |   | Number |   | Percentage | Fair Value at thetime of grantUS$/RSU (2) |
| Germain Lamonde                     | – |        | –    |   | – |   |   | 53,261 |   (3) | 3.13 | % | 5.43 |   |
| Philippe Morin                      | – |        | –    |   | – |   |   | 109,890 |   (4) | 6.46 | % | 3.43 |   |
| –                             |    | –     |       | – |   |   | 54,945 |   (5) | 3.23 | % | 3.43 |   |
| –                             |    | –     |       | – |   |   | 47,529 |   (6) | 2.79 | % | 4.01 |   |
| Pierre Plamondon                    | – |        | –    |   | – |   |   | 19,740 |   (7) | 1.16 | % | 5.06 |   |
| –                             |    | –     |       | – |   |   | 19,839 |   (8) | 1.17 | % | 5.28 |   |
| –                             |    | –     |       | – |   |   | 27,729 |   (9) | 1.63 | % | 3.71 |   |
| –                             |    | –     |       | – |   |   | 29,046 |   (10) | 1.71 | % | 3.23 |   |
| –                             |    | –     |       | – |   |   | 25,162 |   (6) | 1.48 | % | 4.01 |   |
| Pierre-Paul Allard                  | 48,883  |   (11) | 30.72      | % | 4.31 |   |   | – |   | – |   | – |   |
| François Côté        | 10,809  |   (11) | 6.79       | % | 3.32 |   |   | – |   | – |   | – |   |
| Darryl Edwards                      | 28,217  |   (11) | 17.73      | % | 4.25 |   |   | – |   | – |   | – |   |
| Claude Séguin                  | 21,755  |   (11) | 13.67      | % | 3.86 |   |   | – |   | – |   | – |   |
| Randy E. Tornes                     | 49,463  |   (11) | 31.09      | % | 3.75 |   |   | – |   | – |   | – |   |
| Jon Bradley                         | – |        | –    |   | – |   |   | 271 |   (3) | 0.02 | % | 5.43 |   |
| –                             |    | –     |       | – |   |   | 3,140 |   (7) | 0.18 | % | 5.06 |   |
| –                             |    | –     |       | – |   |   | 5,961 |   (8) | 0.35 | % | 5.28 |   |
| –                             |    | –     |       | – |   |   | 14,028 |   (9) | 0.82 | % | 3.71 |   |
| –                             |    | –     |       | – |   |   | 21,848 |   (10) | 1.28 | % | 3.23 |   |
| Dana Yearian                        | – |        | –    |   | – |   |   | 15,322 |   (3) | 0.90 | % | 5.43 |   |
| –                             |    | –     |       | – |   |   | 17,994 |   (7) | 1.06 | % | 5.06 |   |
| –                             |    | –     |       | – |   |   | 17,676 |   (8) | 1.04 | % | 5.28 |   |
| –                             |    | –     |       | – |   |   | 25,706 |   (9) | 1.51 | % | 3.71 |   |
| –                             |    | –     |       | – |   |   | 30,058 |   (10) | 1.77 | % | 3.23 |   |
| –                             |    | –     |       | – |   |   | 24,744 |   (6) | 1.45 | % | 4.01 |   |
| Other executive officers as a group | – |        | –    |   | – |   |   | 26,801 |   (3) | 1.57 | % | 5.43 |   |
| –                             |    | –     |       | – |   |   | 109,834 |   (6) | 6.45 | % | 4.01 |   |
| –                             |    | –     |       | – |   |   | 70,626 |   (7) | 4.15 | % | 5.06 |   |
| –                             |    | –     |       | – |   |   | 69,470 |   (8) | 4.08 | % | 5.28 |   |
| –                             |    | –     |       | – |   |   | 98,804 |   (9) | 5.80 | % | 3.71 |   |
| –                             |    | –     |       | – |   |   | 120,694 |   (10) | 7.09 | % | 3.23 |   |
| –                             |    | –     |       | – |   |   | 6,330 |   (12) | 0.37 | % | 6.55 |   |
| –                             |    | –     |       | – |   |   | 1,429 |   (13) | 0.08 | % | 7.06 |   |
| –                             |    | –     |       | – |   |   | 2,200 |   (14) | 0.13 | % | 5.61 |   |
| –                             |    | –     |       | – |   |   | 3,850 |   (15) | 0.23 | % | 4.36 |   |
| –                             |    | –     |       | – |   |   | 5,000 |   (16) | 0.29 | % | 3.55 |   |
| –                             |    | –     |       | – |   |   | 1,946 |   (17) | 0.11 | % | 3.27 |   |
| –                             |    | –     |       | – |   |   | 2,500 |   (18) | 0.15 | % | 3.00 |   |
| –                             |    | –     |       | – |   |   | 10,000 |   (19) | 0.59 | % | 3.33 |   |
| –                             |    | –     |       | – |   |   | 4,000 |   (20) | 0.23 | % | 4.01 |   |
| Total                               | 159,127 |        | 100        | % | 4.00 |   |   | 1,097,373 |   | 64.46 | % | 4.11 |   |

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Table of Contents

|                                                   | DSUs    |   | RSUs       |
|--------------------------------------------------------|---------|--------|------------|
|  Name                                             | Number  |   | Percentage | Estimated AverageValue at the time ofgrant US$/DSU (1) |   | Number |   | Percentage | Fair Value at thetime of grantUS$/RSU (2) |
| All of the directors and executive officers as a group | – |   | –    |   | – |   |   | 95,655 |   (3) | 5.62 | % | 5.43 |   |
|                                                   | – |   | –    |   | – |   |   | 109,890 |   (4) | 6.46 | % | 3.43 |   |
|                                                   | – |   | –    |   | – |   |   | 54,945 |   (5) | 3.23 | % | 3.43 |   |
|                                                   | – |   | –    |   | – |   |   | 207,269 |   (6) | 12.18 | % | 4.01 |   |
|                                                   | – |   | –    |   | – |   |   | 111,500 |   (7) | 6.55 | % | 5.06 |   |
|                                                   | – |   | –    |   | – |   |   | 112,946 |   (8) | 6.63 | % | 5.28 |   |
|                                                   | – |   | –    |   | – |   |   | 166,267 |   (9) | 9.77 | % | 3.71 |   |
|                                                   | – |   | –    |   | – |   |   | 201,646 |   (10) | 11.84 | % | 3.23 |   |
|                                                   | – |   | –    |   | – |   |   | 6,330 |   (12) | 0.37 | % | 6.55 |   |
|                                                   | – |   | –    |   | – |   |   | 1,429 |   (13) | 0.08 | % | 7.06 |   |
|                                                   | – |   | –    |   | – |   |   | 2,200 |   (14) | 0.13 | % | 5.61 |   |
|                                                   | – |   | –    |   | – |   |   | 3,850 |   (15) | 0.23 | % | 4.36 |   |
|                                                   | – |   | –    |   | – |   |   | 5,000 |   (16) | 0.29 | % | 3.55 |   |
|                                                   | – |   | –    |   | – |   |   | 1,946 |   (17) | 0.11 | % | 3.27 |   |
|                                                   | – |   | –    |   | – |   |   | 2,500 |   (18) | 0.15 | % | 3.00 |   |
|                                                   | – |   | –    |   | – |   |   | 10,000 |   (19) | 0.59 | % | 3.33 |   |
|                                                   | – |   | –    |   | – |   |   | 4,000 |   (20) | 0.23 | % | 4.01 |   |
| Total                                                  | 159,127 |   | 100        | % | 4.00 |   |   | 1,097,373 |   | 64.46 | % | 4.11 |   |
|                                                   |    |   |       |   |   |   |   |   |   |   |   |   |   |
|                                                   |    |   |       |   |   |   |   |   |   |   |   |   |   |

| (1) | The estimated average value at the time of grant of a DSU is the average of the estimated value at the time of grant of a DSU which is determined based on the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Bank of Canada on the grant date to convert either the NASDAQ National Market closing price to Canadian dollars or the Toronto Stock Exchange closing price to United States dollars, as required. The value at vesting of a DSU is equivalent to the market value of a Subordinate Voting Share when a DSU is converted to such Subordinate Voting Share. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The fair value at the time of grant of a RSU is equal to the market value of Subordinate Voting Shares at the time RSUs are granted. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Those RSUs will vest on the fifth anniversary date of the grant in October 2011 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in November 2015. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (5) | Those RSUs will vest on the fifth anniversary date of the grant in November 2015 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Those RSUs will vest on the fifth anniversary date of the grant in October 2016 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Those RSUs will vest on the fifth anniversary date of the grant in October 2012 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Those RSUs will vest on the fifth anniversary date of the grant in October 2013 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Those RSUs will vest on the fifth anniversary date of the grant in October 2014 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Those RSUs will vest on the fifth anniversary date of the grant in October 2015 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Those DSUs will vest at the time Director ceases to be a member of the Board of the Corporation. |
|------|--------------------------------------------------------------------------------------------------|

| (12) | Those RSUs will vest on the fifth anniversary date of the grant in January 2012 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (13) | Those RSUs will vest on the fifth anniversary date of the grant in April 2012 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2013. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (15) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2014. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (16) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2015. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (17) | Those RSUs will vest on the fifth anniversary date of the grant in July 2015 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2016. |
|------|-----------------------------------------------------------------------------------------------------------------------|

| (19) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in August 2016. |
|------|----------------------------------------------------------------------------------------------------------------------|

| (20) | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in October 2016. |
|------|-----------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Item 7. | Major Shareholders and Related Party Transactions |
|---------|---------------------------------------------------|

| A. | Major Shareholders |
|----|--------------------|

|                                           |   | Multiple Voting Shares Beneficially Owned (1) |       |   | Subordinate Voting Shares Beneficially Owned (1) |   |    | Total Percentage of Voting Power |   |
|------------------------------------------------|--------|-----------------------------------------------|------------|--------|--------------------------------------------------|--------|---------|----------------------------------|--------|
|                                           |   |                                          |       |   |                                             |   |    |                             |   |
| Name                                           |   | Number                                        |       |   | Percent                                          |   |    | Number                           |   |   | Percent |   |   | Percent |   |
|                                           |   |                                          |       |   |                                             |   |    |                             |   |   |   |   |   |   |   |
| Germain Lamonde (2)                            |   |                                          | 31,643,000 |   |                                             |   | 100.00  | %                                |   |   | 4,316,247 |   |   |   | 18.93 | % |   |   | 94.55 | % |
| Fiducie Germain Lamonde (3)                    |   |                                          | 1,900,000  |   |                                             |   | 6.00    | %                                |   |   | – |   |   |   | – |   |   |   | 5.60 | % |
| G. Lamonde Investissements Financiers Inc. (4) |   |                                          | 29,743,000 |   |                                             |   | 94.00   | %                                |   |   | 4,000,000 |   |   |   | 17.54 | % |   |   | 88.86 | % |
| EdgePoint Investment Group, Inc.               |   |                                          | –    |   |                                             |   | – |                             |   |   | 4,193,500 |   |   |   | 18.39 | % |   |   | 1.24 | % |
| Renaissance Technologies                       |   |                                          | –    |   |                                             |   | – |                             |   |   | 1,282,700 |   |   |   | 5.63 | % |   |   | * |   |

|        |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |

| * | Less than 1% |
|---|--------------|

| (1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Options that are currently exercisable within 60 days of November 1, 2016 (including options that have an exercise price above the market price) are deemed to be outstanding and to be beneficially owned by the person holding such options for the purpose of computing the percentage ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The number of shares held by Germain Lamonde includes 1,900,000 multiple voting shares held of record by Fiducie Germain Lamonde, 29,743,000 multiple voting shares held of record by G. Lamonde Investissements Financiers Inc. and 4,000,000 subordinate voting shares held of record by G. Lamonde Investissements Financiers Inc. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Fiducie Germain Lamonde is a family trust for the benefit of Mr. Lamonde and members of his family. |
|-----|-----------------------------------------------------------------------------------------------------|

| (4) | G. Lamonde Investissements Financiers Inc. is a company controlled by Mr. Lamonde. |
|-----|------------------------------------------------------------------------------------|

----

Table of Contents

| B. | Related Party Transactions |
|----|----------------------------|

| C. | Interests of Experts and Counsel |
|----|----------------------------------|

----

Table of Contents

| Item 8. | Financial Information |
|---------|-----------------------|

| A. | Consolidated Statements and Other Financial Information |
|----|---------------------------------------------------------|

|           |   | Years ended August 31, |    |
|----------------|--------|------------------------|---------|
|           |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export Sales   |   | $                      | 214,566 |   |   |   | 92 | % |   | $ | 202,367 |   |   |   | 91 | % |   | $ | 211,324 |   |   |   | 92 | % |
| Domestic Sales |   |                   | 18,027  |   |   |   | 8 |   |   |   | 19,722 |   |   |   | 9 |   |   |   | 19,482 |   |   |   | 8 |   |
|           |   | $                      | 232,583 |   |   |   | 100 | % |   | $ | 222,089 |   |   |   | 100 | % |   | $ | 230,806 |   |   |   | 100 | % |

| B. | Significant Changes |
|----|---------------------|

----

Table of Contents

| Item 9. | The Offer and Listing |
|---------|-----------------------|

| A. | Offer and Listing Details |
|----|---------------------------|

|                                                           | NASDAQ (US$) |    TSX (CA$) |
|----------------------------------------------------------------|--------------|------------------------|
|                                                           | High         | Low                    | High | Low |
|                                                           |         |                   |   |   |
| September 1, 2011 to August 31, 2012                           | 8.23         | 4.56                   | 8.24 | 4.59 |
| September 1, 2012 to August 31, 2013                           | 5.90         | 4.00                   | 5.86 | 4.14 |
| September 1, 2013 to August 31, 2014                           | 5.70         | 4.13                   | 5.88 | 4.51 |
| September 1, 2014 to August 31, 2015                           | 4.40         | 2.45                   | 4.92 | 3.32 |
| September 1, 2015 to August 31, 2016                           | 4.32         | 2.57                   | 5.44 | 3.61 |
|                                                           |         |                   |   |   |
| September 1, 2014 to November 30, 2014 (2015 1st Quarter) | 4.40         | 3.26                   | 4.80 | 3.63 |
| December 1, 2014 to February 28, 2015 (2015 2nd Quarter)  | 3.80         | 3.17                   | 4.70 | 3.68 |
| March 1, 2015 to May 31, 2015 (2015 3rd Quarter)     | 3.94         | 3.29                   | 4.92 | 3.99 |
| June 1, 2015 to August 31, 2015 (2015 4th Quarter)   | 3.54         | 2.45                   | 4.40 | 3.32 |
|                                                           |         |                   |   |   |
| September 1, 2015 to November 30, 2015 (2016 1st Quarter) | 3.43         | 2.77                   | 4.55 | 3.61 |
| December 1, 2015 to February 29, 2016 (2016 2nd Quarter)  | 3.42         | 2.57                   | 4.51 | 3.70 |
| March 1, 2016 to May 31, 2016 (2016 3rd Quarter)     | 4.32         | 2.85                   | 5.44 | 3.85 |
| June 1, 2016 to August 31, 2016 (2016 4th Quarter)   | 4.08         | 3.16                   | 5.25 | 4.12 |
|                                                           |         |                   |   |   |
| May 2016                                                       | 4.18         | 3.70                   | 5.23 | 4.94 |
| June 2016                                                      | 4.08         | 3.46                   | 5.25 | 4.47 |
| July 2016                                                      | 3.61         | 3.27                   | 4.53 | 4.27 |
| August 2016                                                    | 3.70         | 3.16                   | 4.48 | 4.12 |
| September 2016                                                 | 3.72         | 3.42                   | 4.90 | 4.41 |
| October 2016                                                   | 4.40         | 3.75                   | 5.83 | 4.98 |
| November 2016                                                  | 4.45         | 4.15                   | 6.00 | 5.69 |
| (until November 14)                                            |         |                   |   |   |

| C. | Markets |
|----|---------|

----

Table of Contents

| Item 10. | Additional Information |
|----------|------------------------|

| A. | Share Capital |
|----|---------------|

| B. | Memorandum and Articles of Association |
|----|----------------------------------------|

| C. | Material Contracts |
|----|--------------------|

| D. | Exchange Controls |
|----|-------------------|

| E. | Taxation |
|----|----------|

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| (a) | an individual citizen or resident of the United States; |
|-----|---------------------------------------------------------|

| (b) | a corporation created or organized under the laws of the United States or any state thereof and the District of Columbia; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (c) | an estate the income of which is subject to United States federal income taxation regardless of its source; |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (d) | a trust if (1) a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons as described in Section 7701 (a) (30) of the Code have authority to control all substantial decisions of the trust or (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | any other person whose worldwide income or gain is otherwise subject to U.S. federal income taxation on a net income basis. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| · | the Code; |
|--------|-----------|

| · | U.S. judicial decisions; |
|--------|--------------------------|

| · | administrative pronouncements; |
|--------|--------------------------------|

| · | existing and proposed Treasury regulations; and |
|--------|-------------------------------------------------|

| · | the Canada – U.S. Income Tax Treaty. |
|--------|--------------------------------------------|

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| · | the holder's holding period for the subordinate voting shares, with a preferential rate available for subordinate voting shares held for more than one year; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the holder's marginal tax rate for ordinary income. |
|--------|-----------------------------------------------------|

| · | such gain is effectively connected with the conduct by such Non-U.S. Holder of a trade or business in the United States; or |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

| · | in the case of any gain realized by an individual Non-U.S. Holder, such Non-U.S. Holder is present in the United States for 183 days or more in the taxable year of such sale and certain other conditions are met. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| · | at least 75% of our gross income for the taxable year is passive income; or |
|--------|-----------------------------------------------------------------------------|

| · | at least 50% of the average value of our assets is attributable to assets that produce or are held for the production of passive income. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | dividends; |
|--------|------------|

| · | interest; |
|--------|-----------|

| · | rents or royalties, other than certain rents or royalties derived from the active conduct of trade or business; |
|--------|----------------------------------------------------------------------------------------------------------------------|

| · | annuities; and |
|--------|----------------|

| · | gains from assets that produce passive income. |
|--------|------------------------------------------------|

| · | any gain realized on the sale or other disposition of subordinate voting shares; and |
|--------|--------------------------------------------------------------------------------------|

| · | any "excess distribution" by us to the U.S. Holder. |
|--------|-----------------------------------------------------|

| · | the gain or excess distribution would be allocated ratably over the U.S. Holder's holding period for the subordinate voting shares; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| · | the amount allocated to the taxable year in which the gain or excess distribution was realized and to taxable years prior to the first year in which we were classified as a PFIC would be taxable as ordinary income; and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the amount allocated to each other prior year would be subject to tax as ordinary income at the highest tax rate in effect for that year, and the interest charge generally applicable to underpayments of tax would be imposed in respect of the tax attributable to each such year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | is resident in the United States and not resident in Canada; |
|--------|--------------------------------------------------------------|

| · | holds the subordinate voting shares as capital property; |
|--------|----------------------------------------------------------|

| · | does not have a "permanent establishment" or "fixed base" in Canada, as defined in the Convention; and |
|--------|--------------------------------------------------------------------------------------------------------|

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| · | deals at arm's length with us. Special rules, which are not discussed below, may apply to "financial institutions", as defined in the ITA, and to non-resident insurers carrying on an insurance business in Canada and elsewhere. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F. | Dividends and Paying Agents |
|----|-----------------------------|

| G. | Statement by Experts |
|----|----------------------|

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| H. | Documents on Display |
|----|----------------------|

| I. | Subsidiary Information |
|----|------------------------|

----

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| Item 11. | Qualitative and Quantitative Disclosures about Market Risk |
|----------|------------------------------------------------------------|

|                                                                                |   | Years ending August 31, |   |
|-------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                |   | 2017                    |   |   | 2018 |   |   | 2019 |   |
|                                                                                |   |                    |   |   |   |   |   |   |   |
| Forward exchange contracts to sell US dollars in exchange for Canadian dollars |   |                    |   |   |   |   |   |   |   |
| Contractual amounts                                                            |   | $                       | 22,200 |   |   | $ | 9,900 |   |   | $ | 1,900 |   |
| Weighted average contractual forward rates                                          |   |                    | 1.2784 |   |   |   | 1.3367 |   |   |   | 1.3639 |   |
|                                                                        |   | Year ending August 31, 2017 |   |
|-----------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                        |   |                        |   |
| Forward exchange contracts to sell US dollars in exchange for Indian rupees |   |                        |   |
| Contractual amounts                                                    |   | $                           | 3,800  |   |
| Weighted average contractual forward rate                              |   |                        | 70.92  |   |

----

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|                                             |   | Carrying/nominalamount(in thousandsof US dollars) |   |   | Carrying/nominalamount(in thousandsof euros) |    |
|--------------------------------------------------|--------|---------------------------------------------------|--------|--------|----------------------------------------------|---------|
|                                             |   |                                              |   |   |                                         |    |
| Financial assets                                 |   |                                              |   |   |                                         |    |
| Cash                                             |   | $                                                 | 13,090 |   |                                         | € | 2,927 |   |
| Accounts receivable                              |   |                                              | 30,141 |   |                                         |    | 5,963 |   |
|                                             |   |                                              | 43,231 |   |                                         |    | 8,890 |   |
| Financial liabilities                            |   |                                              |   |   |                                         |    |   |   |
| Accounts payable and accrued liabilities         |   |                                              | 14,251 |   |                                         |    | 1,081 |   |
| Forward exchange contracts (nominal amount) |   |                                              | 4,000  |   |                                         | ‒ |   |
|                                             |   |                                              | 18,251 |   |                                         |    | 1,081 |   |
| Net exposure                                     |   | $                                                 | 24,980 |   |                                         | € | 7,809 |   |

| · | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by and $2.7 million, or $0.05 per diluted share, as at August 31, 2016. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $830,000 or $0.02 per diluted share, as at August 31, 2016. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) comprehensive income by $2.2 million as at August 31, 2016. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Current                                                                     |   | $      | 38,411 |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|
| Past due, 0 to 30 days                                                      |   |   | 1,286  |   |
| Past due, 31 to 60 days                                                     |   |   | 868    |   |
| Past due, more than 60 days, less allowance for doubtful accounts of $3,752 |   |   | 2,428  |   |
| Total trade accounts receivable                                             |   | $      | 42,933 |   |

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|                                     |   | 0-12months |    |   | 13-24months |   |    | 25-36Months |   |
|------------------------------------------|--------|------------|---------|--------|-------------|--------|---------|-------------|--------|
|                                     |   |       |    |   |        |   |    |        |   |
| Accounts payable and accrued liabilities |   | $          | 36,099  |   |        | $      | – |        |   | $ | – |   |
| Forward exchange contracts               |   |       |    |   |        |   |    |        |   |   |   |   |
| Outflow (nominal amount)                 |   |       | 26,000  |   |        |   | 9,900   |        |   |   | 1,900 |   |
| Inflow                                   |   |       | (25,653 | )      |        |   | (10,089 | )           |   |   | (1,976 | ) |
| Total                                    |   | $          | 36,446  |   |        | $      | (189    | )           |   | $ | (76 | ) |

| Item 12. | Description of Securities Other than Equity Securities |
|----------|--------------------------------------------------------|

| Item 13. | Defaults, Dividend Arrearages and Delinquencies |
|----------|-------------------------------------------------|

| Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
|----------|------------------------------------------------------------------------------|

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| Item 15. | Controls and Procedures |
|----------|-------------------------|

| (a) | Disclosure Controls and Procedures |
|-----|------------------------------------|

| (b) | Management's Annual Report on Internal Control over Financial Reporting (restated) |
|-----|------------------------------------------------------------------------------------|

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| (c) | Attestation Report of the Independent Auditor |
|-----|-----------------------------------------------|

| (d) | Changes in Internal Control over Financial Reporting |
|-----|------------------------------------------------------|

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| Item 16. | [Reserved] |
|----------|------------|

| Item 16A. | Audit Committee Financial Expert |
|-----------|----------------------------------|

| Item 16B. | Code of Ethics |
|-----------|----------------|

| · | Code of Ethics for our Principal Executive Officer and Senior Financial Officers; |
|--------|-----------------------------------------------------------------------------------|

| · | Board of Directors Corporate Governance Guidelines; |
|--------|-----------------------------------------------------|

| · | Ethics and Business Conduct Policy; |
|--------|-------------------------------------|

| · | Statement of Reporting Ethical Violations (Whistleblower). |
|--------|------------------------------------------------------------|

| Item 16C. | Principal Accountant Fees and Services |
|-----------|----------------------------------------|

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| Item 16D. | Exemptions from the Listing Standards for Audit Committees |
|-----------|------------------------------------------------------------|

| Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
|-----------|------------------------------------------------------------------------|

----

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| Period                                    | (a) Total Numberof Shares(or Units) Purchased (#) | (b) Average Price Paid per Share (or Units) | (c) Total Number ofShares (or Units)Purchased as Part ofPublicly AnnouncedPlans or Programs (#) | (d) Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (#) |
|-------------------------------------------|---------------------------------------------------|---------------------------------------------|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| NASDAQ (US$)                              | TSX (CA$)                                         |
|    From September 1, 2015  | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 1,265,851 |   |
|    To September 30, 2015   |
|    From October 1, 2015    | 200                                               |                                        | 3.00                                                                                            |                                                                                              | ‒ |   | 200 |   | 1,265,651 |   |
|    To October 31, 2015     |
|    From November 1, 2015   | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 1,265,651 |   |
|    To November 30, 2015    |
|    From December 1, 2015   | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 1,265,651 |   |
|    To December 31, 2015    |
|    From January 1, 2016    | 41,291                                            |                                        | 2.87                                                                                            |                                                                                              | 4.05 |   | 41,291 |   | 1,224,360 |   |
|    To January 31, 2016     |
|    From February 1, 2016   | 21,151                                            |                                        | 2.99                                                                                            |                                                                                              | 4.16 |   | 21,151 |   | 1,203,209 |   |
|    To February 29, 2016    |
|    From March 1, 2016      | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 1,203,209 |   |
|    To March 26, 2016       |
|    From March 27, 2016     | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | ‒ |   |
|    To March 31, 2016       |
|    From April 1, 2016      | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 900,000 |   |
|    To April 30, 2016       |
|    From May 1, 2016        | 54,369                                            |                                        | 3.94                                                                                            |                                                                                              | 5.06 |   | 54,369 |   | 845,631 |   |
|    To May 31, 2016         |
|    From June 1, 2016       | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 845,631 |   |
|    To June 30, 2016        |
|    From July 1, 2016       | 213,840                                           |                                        | 3.41                                                                                            |                                                                                              | 4.47 |   | 213,840 |   | 631,791 |   |
|    To July 31, 2016        |
|    From August 1, 2016     | 121,699                                           |                                        | 3.38                                                                                            |                                                                                              | 4.42 |   | 121,699 |   | 510,902 |   |
|    To August 31, 2016      |
|    From September 1, 2016  | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 510,902 |   |
|    To September 30, 2016   |
|    From October 1, 2016    | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 510,902 |   |
|    To October 31, 2016     |
|    From November 1, 2016   | ‒                                           |                                        | ‒                                                                                         |                                                                                              | ‒ |   | ‒ |   | 510,902 |   |
|    To November 14, 2016    |
|    Total                   | 452,550                                           |                                        |                                                                                            |                                                                                              |   |   | 452,550 |   | 510,902 |   |

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| Item 16F. | Change in Registrant's Certifying Accountant |
|-----------|----------------------------------------------|

| Item 16G. | Corporate Governance |
|-----------|----------------------|

| Item 16H. | Mine Safety Disclosure |
|-----------|------------------------|

| Item 17. | Financial Statements |
|----------|----------------------|

| Item 18. | Financial Statements |
|----------|----------------------|

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| Item 19. | Exhibits |
|----------|----------|

| Number | Exhibit |
|--------|---------|

|  1.1  |  Amended Articles of Incorporation of EXFO (incorporated by reference to Exhibit 3.1 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                      |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.2        | Amended By-laws of EXFO (incorporated by reference to Exhibit 1.2 of EXFO's Annual Report on Form 20F dated January 15, 2003, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                      |
| 1.3        | Amended and Restated Articles of Incorporation of EXFO (incorporated by reference to Exhibit 1.3 of EXFO's Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                                                                                                                                                                                                                      |
| 1.4        | Certificate of Amendment, Canada Business Corporations Act (incorporated by reference to Exhibit 10.1 of EXFO's Annual Report on Form 20-F dated November 25, 2009, File No. 000-30895).                                                                                                                                                                                                                                                                                                |
| 1.5        | Certificate of Amendment (Change of Name), Canada Business Corporations Act (incorporated by reference to Exhibit 1.5 of EXFO's Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                                                                                                                                                                                                                                                                                |
| 2.1        | Form of Subordinate Voting Share Certificate (incorporated by reference to Exhibit 4.1 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                         |
| 2.2        | Form of Registration Rights Agreement between EXFO and Germain Lamonde dated July 6, 2000) (incorporated by reference to Exhibit 10.13 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                         |
| 3.1        | Form of Trust Agreement among EXFO, Germain Lamonde, GEXFO Investissements Technologiques Inc., Fiducie Germain Lamonde and G. Lamonde Investissements Financiers Inc. (incorporated by reference to Exhibit 4.2  of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                         |
| 4.1        | Agreement of Merger and Plan of Reorganization, dated as of November 4, 2000, by and among EXFO, EXFO Sub, Inc., EXFO Burleigh Instruments, Inc., Robert G. Klimasewski, William G. May, Jr., David J. Farrell and William S. Gornall (incorporated by reference to Exhibit 4.1 of EXFO's Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                                       |
| 4.2        | Amendment No. 1 to Agreement of Merger and Plan of Agreement, dated as of December 20, 2000, by and among EXFO, EXFO Sub, Inc., EXFO Burleigh Instruments, Inc., Robert G. Klimasewski, William G. May, Jr., David J. Farrell and William S. Gornall (incorporated by reference to Exhibit 4.2 of EXFO's Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                        |
| 4.3        | Agreement of Merger, dated as of August 20, 2001, by and among EXFO, Buyer Sub, and Avantas Networks Corporation and Shareholders of Avantas Networks corporation (incorporated by reference to Exhibit 4.3 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                           |
| 4.4        | Amendment No. 1 dated as of November 1, 2002 to Agreement of Merger, dated as of August 20, 2001, by and among EXFO, 3905268 Canada Inc., Avantas Networks Corporation and Shareholders of Avantas Networks (incorporated by reference to Exhibit 4.4 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                 |
| 4.5        | Offer to purchase shares of Nortech Fibronic Inc., dated February 6, 2000 among EXFO, Claude Adrien Noel, 9086-9314 Québec Inc., Michel Bédard, Christine Bergeron and Société en Commandite Capidem Québec Enr. and Certificate of Closing, dated February 7, 2000 among the same parties (including summary in English) (incorporated by reference to Exhibit 10.2 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).  |
| 4.6        | Share Purchase Agreement, dated as of March 5, 2001, among EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation (incorporated by reference to Exhibit 4.1 of EXFO's Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).                                                                                                                                                                                                  |

----

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|  Number |  Exhibit |
|--------------|---------------|

|  4.7  |  Amendment Number One, dated as of March 15, 2001, to Share Purchase Agreement, dated as of March 5, 2001, among EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation. (incorporated by reference to Exhibit 4.2 of EXFO's Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).            |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.8        | Share Purchase Agreement, dated as of November 2, 2001 between JDS Uniphase Inc. and 3905268 Canada Inc. (incorporated by reference to Exhibit 4.8 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                          |
| 4.9        | Intellectual Property Assignment and Sale Agreement between EFOS Inc., EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation. (incorporated by reference to Exhibit 4.3 of EXFO's Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).                                                           |
| 4.10       | Offer to acquire a building, dated February 23, 2000, between EXFO and Groupe Mirabau Inc. and as accepted by Groupe Mirabau Inc. on February 24, 2000 (including summary in English) (incorporated by reference to Exhibit 10.3 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                     |
| 4.11       | Lease Agreement, dated December 1, 1996, between EXFO and GEXFO Investissements Technologiques Inc., as assigned to 9080-9823 Québec Inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.4 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                        |
| 4.12       | Lease Agreement, dated March 1, 1996, between EXFO and GEXFO Investissements Technologiques Inc., as assigned to 9080-9823 Québec Inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.5 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                           |
| 4.13       | Lease renewal of the existing leases between 9080-9823 Québec Inc. and EXFO, dated November 30, 2001(incorporated by reference to Exhibit 4.13 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                         |
| 4.14       | Loan Agreement between EXFO and GEXFO Investissements Technologiques Inc., dated May 11, 1993, as assigned to 9080-9823 Québec Inc. on September 1, 1999 (including summary in English)  (incorporated by reference to Exhibit 10.9 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                   |
| 4.15       | Resolution of the Board of Directors of EXFO, dated September 1, 1999, authorizing EXFO to acquire GEXFO Distribution Internationale Inc. from GEXFO Investissements Technologiques Inc. (including summary in English) (incorporated by reference to Exhibit 10.10 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).  |
| 4.16       | Form of Promissory Note of EXFO issued to GEXFO Investissements Technologiques Inc. dated June 27, 2000 )  (incorporated by reference to Exhibit 10.12 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                     |
| 4.17       | Term Loan Offer, dated March 28, 2000, among EXFO and National Bank of Canada as accepted by EXFO on April 3, 2000 (including summary in English) (incorporated by reference to Exhibit 10.11 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                        |
| 4.18       | Employment Agreement of Germain Lamonde dated May 29, 2000 (incorporated by reference to Exhibit 10.15 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                               |
| 4.19       | Employment Agreement of Bruce Bonini dated as of September 1, 2000 (incorporated by reference to Exhibit 4.24 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                               |
| 4.20       | Employment Agreement of Juan-Felipe Gonzalez dated as of September 1, 2000 (incorporated by reference to Exhibit 4.25 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                       |

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|  Number |  Exhibit |
|--------------|---------------|

|  4.21  |  Employment Agreement of David J. Farrell dated as of December 20, 2000 (incorporated by reference to Exhibit 4.26 of EXFO's Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                  |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.22        | Deferred Profit Sharing Plan, dated September 1, 1998 (incorporated by reference to Exhibit 10.6 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.23        | Stock Option Plan, dated May 25, 2000 (incorporated by Reference to Exhibit 10.7 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.24        | Share Plan, dated April 3, 2000 (incorporated by reference to Exhibit 10.8 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.25        | Directors' Compensation Plan (incorporated by reference to Exhibit 10.17 of EXFO's Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.26        | Restricted Stock Award Plan, dated December 20, 2000 (incorporated by reference to Exhibit 4.21 of EXFO's Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.27        | Asset Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., EXFO Gnubi Products Group Inc., gnubi communications, L.P., gnubi communications General Partner, LLC, gnubi communications Limited Partner, LLC, gnubi communications, Inc., Voting Trust created by The Irrevocable Voting Trust Agreement Among Carol Abraham Bolton, Paul Abraham and James Ray Stevens, James Ray Stevens and Daniel J. Ernst dated September 5, 2002 (incorporated by reference to Exhibit 4.30 of EXFO's Annual Report on Form 20-F dated January 15, 2003, File No. 000-30895).  |
| 4.28        | EXFO Protocol Inc. Executive Employment Agreement with Sami Yazdi signed November 2, 2001 (incorporated by reference to Exhibit 4.28 of EXFO's Annual Report on Form 20-F dated January 15, 2003, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                |
| 4.29        | Second Amending Agreement to the Employment Agreement of Bruce Bonini dated as of September 1, 2002, (incorporated by reference to Exhibit 4.29 of EXFO's Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                          |
| 4.30        | Severance and General Release Agreement with Bruce Bonini dated August 8, 2003, (incorporated by reference to Exhibit 4.30 of EXFO's Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                               |
| 4.31        | Separation Agreement and General Release with Sami Yazdi dated April 1, 2003, (incorporated by reference to Exhibit 4.31 of EXFO's Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.32        | Executive Employment Agreement of James Stevens dated as of October 4, 2003, (incorporated by reference to Exhibit 4.32 of EXFO's Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.33        | Termination Terms for John Holloran Jr. dated May 28, 2003, (incorporated by reference to Exhibit 4.33 of EXFO's Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.34        | Employment Agreement of Pierre Plamondon dated as of September 1, 2002, (incorporated by reference to Exhibit 4.34 of EXFO's Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.35        | Long-Term Incentive Plan, dated May 25, 2000, amended in October 2004 and effective January 12, 2005 (incorporated by reference to Exhibit 4.35 of EXFO's Annual Report on Form 20-F dated November 29, 2005, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                         |
| 4.36        | Deferred Share Unit Plan, effective January 12, 2005 (incorporated by reference to Exhibit 4.36 of EXFO's Annual Report on Form 20-F dated November 29, 2005, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                                         |

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| Number |  Exhibit |
|--------|---------------|

|  4.37  |  Asset Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., Consultronics Limited., Andre Rekai, Consultronics Europe Limited, Consultronics Development Kft. and Consultronics Inc. dated January 5, 2006 (incorporated by reference to Exhibit 4.37 of EXFO's Annual Report on Form 20-F dated November 23, 2006, File No. 000-30895).                      |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.38        | Share Repurchase Program by Way of Normal Course Issuer Bid dated November 6, 2007 (incorporated by reference to EXFO's report on Form 6-K dated November 6, 2007, file No. 000-30895).                                                                                                                                                                                              |
| 4.39        | Share Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., Navtel Communications Inc. and Vengrowth Investment Fund, BDC Capital Inc. and others, dated March 26, 2008 (incorporated by reference to Exhibit 4.38 of EXFO's Annual Report on Form 20-F dated November 26, 2008, File No. 000-30895).                                                               |
| 4.40        | Agreement and Plan of Merger by and among Gexfo Distribution Internationale Inc., EXFO Service Assurance Inc. and Brix Networks, Inc. and Charles River Ventures, LLC dated April 2, 2008 (incorporated by reference to EXFO's Material Change Report on Form 6-K dated May 2, 2008, File No. 000-30895).                                                                            |
| 4.41        | Issuer Tender Offer, Letter of Transmittal and Notice of Guaranteed Delivery dated November 10, 2008 (incorporated by reference as Exhibits (a) (1) (i), (a) (1) (ii) and (a) (1) (iii) to EXFO's Schedule TO dated November 10, 2008, File No. 000-30895).                                                                                                                          |
| 4.42        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated November 6, 2008 (incorporated by reference to EXFO's report on Form 6-K dated November 6, 2008, file No. 000-30895).                                                                                                                                                                            |
| 4.43        | Final results of Issuer Bid Tender Offer, dated December 18, 2009 (incorporated by reference to EXFO's Material Change Report on Form 6-K dated December 19, 2008, file No. 000-30895).                                                                                                                                                                                              |
| 4.44        | Share Transfer Agreement by and among GEXFO Distribution Internationale Inc. and AWS Holding AB (PicoSolve AB) and Patent Transfer Agreement by and among EXFO Electro-Optical Engineering Inc. and Starta Eget Boxen 11629 AB dated February 5, 2009 (incorporated by reference to Exhibit 4.44 of EXFO's Annual Report on Form 20-F dated November 25, 2009, File No. 000-30895).  |
| 4.45        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated November 10, 2009 (incorporated by reference to EXFO's report on Form 6-K dated November 6, 2009, file No. 000-30895).                                                                                                                                                                           |
| 4.46        | Share Purchase Agreement by and among EXFO Finland Oy and NetHawk Oyj's majority shareholders dated March 12, 2010 (incorporated by reference to EXFO's Material Change Report on Form 6-K dated March 19, 2010, File No. 000-30895).                                                                                                                                                |
| 4.47        | Share Purchase Agreement by and among EXFO Inc. and Photonic Acquisition Inc. dated October 1, 2010 (incorporated by reference to EXFO's Material Change Report on Form 6-K dated October 8, 2010, File No. 000-30895).                                                                                                                                                              |
| 4.48        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated November 5, 2010 (incorporated by reference to EXFO's report on Form 6-K dated November 5, 2010, file No. 000-30895).                                                                                                                                                                            |
| 4.49        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated November 7, 2011 (incorporated by reference to EXFO's report on Form 6-K dated November 7, 2011, file No. 000-30895).                                                                                                                                                                            |
| 4.50        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated November 7, 2012 (incorporated by reference to EXFO's report on Form 6-K dated November 7, 2012, file No. 000-30895).                                                                                                                                                                            |
| 4.51        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated January 8, 2014 (incorporated by reference to EXFO's report on Form 6-K dated January 9, 2014, file No. 000-30895).                                                                                                                                                                              |

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| Number |  Exhibit |
|--------|---------------|

|  4.52  |  Final results of Issuer Bid Tender Offer, dated February 20, 2015 (incorporated by reference to EXFO's Material Change Report on Form 6-K dated February 24, 2015, file No. 000-30895).                                 |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.53        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated March 25, 2015 (incorporated by reference to EXFO's report on Form 6-K dated March 25, 2015, file No. 000-30895).                         |
| 4.54        | Nomination of Mr. Philippe Morin as Chief Operation Officer, dated August 26, 2015 (incorporated by reference to EXFO's Material Change Report on Form 6-K dated August 28 2015, file No. 000-30895).                         |
| 4.55        | Long-Term Incentive Plan, dated May 25, 2000, amended in October 2004 and effective January 12, 2005 (incorporated by reference to Exhibit 4.55 of EXFO's Annual Report on Form 20-F dated November 28, 2016, File No. 000-30895). |
| 4.56        | Renewal of EXFO's Share Repurchase Program by Way of Normal Course Issuer Bid dated April 1, 2016 (incorporated by reference to EXFO's report on Form 6-K dated March 30, 2016, file No. 000-30895).                          |
| 8.1         | Subsidiaries of EXFO (list included in Item 4C of this Annual Report).                                                                                                                                                        |
| 11.1        | Code of Ethics for our Principal Executive Officer and Senior Financial Officers (incorporated by reference to Exhibit 11.1 of EXFO's Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                |
| 11.2        | Board of Directors Corporate Governance Guidelines (incorporated by reference to Exhibit 11.2 of EXFO's Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                                              |
| 11.3        | Ethics and Business Conduct Policy (incorporated by reference to Exhibit 11.3 of EXFO's Annual Report on Form 20-F dated November 25, 2013, File No. 000-30895).                                                              |
| 11.4        | Statement of Reporting Ethical Violations (Whistleblower) (incorporated by reference to Exhibit 11.4 of EXFO's Annual Report on Form 20-F dated November 25, 2013, File No. 000-30895).                                       |
| 11.5        | Audit Committee Charter (incorporated by reference to Exhibit 11.5 of EXFO's Annual Report on Form 20-F dated November 28, 2016, File No. 000-30895).                                                                         |
| 11.6        | Human Resources Committee Charter (incorporated by reference to Exhibit 11.6 of EXFO's Annual Report on Form 20-F dated November 24, 2014, File No. 000-30895).                                                               |
| 11.7        | Corporate Governance Practices (incorporated by reference to Exhibit 11.7 of EXFO's Annual Report on Form 20-F dated November 28, 2016, File No. 000-30895).                                                                  |
| 11.8        | Majority Voting Policy (incorporated by reference to Exhibit 11.8 of EXFO's Annual Report on Form 20-F dated November 28, 2016, File No. 000-30895).                                                                          |
| 11.9        | Independent Members Committee Charter (incorporated by reference to Exhibit 11.9 of EXFO's Annual Report on Form 20-F dated November 23, 2011, File No. 000-30895).                                                           |
| 11.10       | Agent Code of Conduct (incorporated by reference to Exhibit 11.10 of EXFO's Annual Report on Form 20-F dated November 25, 2013, File No. 000-30895).                                                                          |
| 11.11       | Policy Regarding Conflict Minerals (incorporated by reference to Exhibit 11.11 of EXFO's Annual Report on Form 20-F dated November 25, 2013, File No. 000-30895).                                                             |
| 11.12       | Director Share Ownership Policy (incorporated by reference to Exhibit 11.12 of EXFO's Annual Report on Form 20-F dated November 25, 2013, File No. 000-30895).                                                                |
| 12.1        | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                       |
| 12.2        | Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                       |
| 13.1        | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                       |
| 13.2        | Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                       |

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|                                               |   | As at August 31, |    |
|----------------------------------------------------|--------|------------------|---------|
|                                               |   | 2016             |    |   | 2015 |   |
| Assets                                             |   |             |    |   |   |   |
|                                               |   |             |    |   |   |   |
| Current assets                                     |   |             |    |   |   |   |
| Cash                                               |   | $                | 43,208  |   |   | $ | 25,864 |   |
| Short-term investments (note 5)                    |   |             | 4,087   |   |   |   | 1,487 |   |
| Accounts receivable (note 5)                       |   |             |    |   |   |   |   |   |
| Trade                                              |   |             | 42,993  |   |   |   | 45,985 |   |
| Other                                              |   |             | 2,474   |   |   |   | 2,384 |   |
| Income taxes and tax credits recoverable (note 18) |   |             | 4,208   |   |   |   | 3,855 |   |
| Inventories (note 6)                               |   |             | 33,004  |   |   |   | 27,951 |   |
| Prepaid expenses                                   |   |             | 3,099   |   |   |   | 2,801 |   |
|                                               |   |             |    |   |   |   |   |   |
|                                               |   |             | 133,073 |   |   |   | 110,327 |   |
|                                               |   |             |    |   |   |   |   |   |
| Tax credits recoverable (note 18)                  |   |             | 34,594  |   |   |   | 35,625 |   |
| Property, plant and equipment (notes 7 and 20)     |   |             | 35,978  |   |   |   | 35,695 |   |
| Intangible assets (notes 8 and 20)                 |   |             | 3,391   |   |   |   | 4,096 |   |
| Goodwill (notes 8 and 20)                          |   |             | 21,928  |   |   |   | 21,860 |   |
| Deferred income tax assets (note 18)               |   |             | 8,240   |   |   |   | 9,459 |   |
| Other assets                                       |   |             | 589     |   |   |   | 416 |   |
|                                               |   |             |    |   |   |   |   |   |
|                                               |   | $                | 237,793 |   |   | $ | 217,478 |   |
| Liabilities                                        |   |             |    |   |   |   |   |   |
|                                               |   |             |    |   |   |   |   |   |
| Current liabilities                                |   |             |    |   |   |   |   |   |
| Accounts payable and accrued liabilities (note 10) |   | $                | 37,174  |   |   | $ | 34,126 |   |
| Provisions                                         |   |             | 299     |   |   |   | 427 |   |
| Income taxes payable                               |   |             | 971     |   |   |   | 779 |   |
| Deferred revenue                                   |   |             | 9,486   |   |   |   | 7,647 |   |
|                                               |   |             |    |   |   |   |   |   |
|                                               |   |             | 47,930  |   |   |   | 42,979 |   |
|                                               |   |             |    |   |   |   |   |   |
| Deferred revenue                                   |   |             | 5,530   |   |   |   | 2,957 |   |
| Deferred income tax liabilities (note 18)          |   |             | 2,857   |   |   |   | 1,524 |   |
| Other liabilities                                  |   |             | 75      |   |   |   | 791 |   |
|                                               |   |             |    |   |   |   |   |   |
|                                               |   |             | 56,392  |   |   |   | 48,251 |   |
| Commitments (note 11)                              |   |             |    |   |   |   |   |   |
|                                               |   |             |    |   |   |   |   |   |
| Shareholders' equity                               |   |             |    |   |   |   |   |   |
| Share capital (note 12)                            |   |             | 85,516  |   |   |   | 86,045 |   |
| Contributed surplus                                |   |             | 18,150  |   |   |   | 17,778 |   |
| Retained earnings                                  |   |             | 126,309 |   |   |   | 117,409 |   |
| Accumulated other comprehensive loss (note 13)     |   |             | (48,574 | ) |   |   | (52,005 | ) |
|                                               |   |             |    |   |   |   |   |   |
|                                               |   |             | 181,401 |   |   |   | 169,227 |   |
|                                               |   |             |    |   |   |   |   |   |
|                                               |   | $                | 237,793 |   |   | $ | 217,478 |   |

| On behalf of the Board      |                      |
|-----------------------------|---------------------------|
| /s/ Germain Lamonde         | /s/ Claude Séguin    |
| Germain Lamonde             | Claude Séguin        |
| Chairman, President and CEO | Chairman, Audit Committee |

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|                                                                         |   | Years ended August 31, |    |
|------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                         |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |
| Sales (note 20)                                                              |   | $                      | 232,583 |   |   | $ | 222,089 |   |   | $ | 230,806 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cost of sales (1) (note 16)                                                  |   |                   | 87,066  |   |   |   | 85,039 |   |   |   | 86,836 |   |
| Selling and administrative (2) (note 16)                                     |   |                   | 82,169  |   |   |   | 82,200 |   |   |   | 86,429 |   |
| Net research and development (note 16)                                  |   |                   | 42,687  |   |   |   | 44,003 |   |   |   | 44,846 |   |
| Depreciation of property, plant and equipment (note 16)                      |   |                   | 3,814   |   |   |   | 4,835 |   |   |   | 4,995 |   |
| Amortization of intangible assets (note 16)                                  |   |                   | 1,172   |   |   |   | 2,883 |   |   |   | 4,398 |   |
| Interest and other income                                                    |   |                   | (828    | ) |   |   | (155 | ) |   |   | (326 | ) |
| Foreign exchange gain                                                        |   |                   | (161    | ) |   |   | (7,212 | ) |   |   | (1,634 | ) |
| Unusual charge (note 1)                                                      |   |                   | – |   |   |   | 603 |   |   |   | 720 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Earnings before income taxes                                                 |   |                   | 16,664  |   |   |   | 9,893 |   |   |   | 4,542 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Income taxes (note 18)                                                       |   |                   | 7,764   |   |   |   | 5,036 |   |   |   | 4,286 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Net earnings for the year                                                    |   | $                      | 8,900   |   |   | $ | 4,857 |   |   | $ | 256 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Basic net earnings per share                                                 |   | $                      | 0.17    |   |   | $ | 0.09 |   |   | $ | 0.00 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Diluted net earnings per share                                               |   | $                      | 0.16    |   |   | $ | 0.08 |   |   | $ | 0.00 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Basic weighted average number of shares outstanding (000's)             |   |                   | 53,863  |   |   |   | 56,804 |   |   |   | 60,329 |   |
|                                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Diluted weighted average number of shares outstanding (000's) (note 19) |   |                   | 54,669  |   |   |   | 57,457 |   |   |   | 61,015 |   |

| (1) | The cost of sales is exclusive of depreciation and amortization, shown separately. |
|-----|------------------------------------------------------------------------------------|

| (2) | Selling and administrative is exclusive of unusual charge, which represents bad debt expenses. |
|-----|------------------------------------------------------------------------------------------------|

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|                                                                                    |   | Years ended August 31, |   |
|-----------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                    |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                                                                    |   |                   |   |   |   |   |   |   |   |
| Net earnings for the year                                                               |   | $                      | 8,900  |   |   | $ | 4,857 |   |   | $ | 256 |   |
| Other comprehensive income (loss), net of income taxes                                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Items that will not be reclassified subsequently to net earnings                        |   |                   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                 |   |                   | 707    |   |   |   | (39,175 | ) |   |   | (7,086 | ) |
| Items that may be reclassified subsequently to net earnings                             |   |                   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains/losses on forward exchange contracts                                   |   |                   | 862    |   |   |   | (5,583 | ) |   |   | (618 | ) |
| Reclassification of realized gains/losses on forward exchange contracts in net earnings |   |                   | 2,797  |   |   |   | 2,107 |   |   |   | 959 |   |
| Deferred income tax effect of gains/losses on forward exchange contracts                |   |                   | (935   | ) |   |   | 905 |   |   |   | (91 | ) |
|                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss)                                                       |   |                   | 3,431  |   |   |   | (41,746 | ) |   |   | (6,836 | ) |
|                                                                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss) for the year                                                |   | $                      | 12,331 |   |   | $ | (36,889 | ) |   | $ | (6,580 | ) |

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|                                                                                            |   | Year ended August 31, 2014 |    |
|-------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                                            |   | Share capital              |    |   | Contributed surplus |   |   | Retained earnings |   |   | Accumulatedothercomprehensive loss |   |   | Totalshareholders' equity |   |
|                                                                                            |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at September 1, 2013                                                                 |   | $                          | 109,837 |   |   | $ | 17,186 |   |   | $ | 112,296 |   |   | $ | (3,423 | ) |   | $ | 235,896 |   |
| Exercise of stock options (note 12)                                                             |   |                       | 225     |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 225 |   |
| Redemption of share capital (note 12)                                                           |   |                       | (831    | ) |   |   | (106 | ) |   |   | – |   |   |   | – |   |   |   | (937 | ) |
| Reclassification of stock-based compensation costs (note 12)                          |   |                       | 2,260   |   |   |   | (2,260 | ) |   |   | – |   |   |   | – |   |   |   | – |   |
| Stock-based compensation costs                                                                  |   |                       | – |   |   |   | 1,683 |   |   |   | – |   |   |   | – |   |   |   | 1,683 |   |
| Net earnings for the year                                                                       |   |                       | – |   |   |   | – |   |   |   | 256 |   |   |   | – |   |   |   | 256 |   |
| Other comprehensive income (loss)                                                               |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                         |   |                       | – |   |   |   | – |   |   |   | – |   |   |   | (7,086 | ) |   |   | (7,086 | ) |
| Changes in unrealized losses on forward exchange contracts, net of deferred income taxes of $91 |   |                       | – |   |   |   | – |   |   |   | – |   |   |   | 250 |   |   |   | 250 |   |
|                                                                                            |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive loss for the year                                                           |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,580 | ) |
|                                                                                            |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2014                                                                   |   | $                          | 111,491 |   |   | $ | 16,503 |   |   | $ | 112,552 |   |   | $ | (10,259 | ) |   | $ | 230,287 |   |
|                                                                                             |   | Year ended August 31, 2015 |    |
|--------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                                             |   | Share capital              |    |   | Contributed surplus |   |   | Retained earnings |   |   | Accumulatedothercomprehensive loss |   |   | Totalshareholders' equity |   |
|                                                                                             |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at September 1, 2014                                                                  |   | $                          | 111,491 |   |   | $ | 16,503 |   |   | $ | 112,552 |   |   | $ | (10,259 | ) |   | $ | 230,287 |   |
| Redemption of share capital (note 12)                                                            |   |                       | (26,827 | ) |   |   | 1,333 |   |   |   | – |   |   |   | – |   |   |   | (25,494 | ) |
| Reclassification of stock-based compensation costs (note 12)                           |   |                       | 1,381   |   |   |   | (1,381 | ) |   |   | – |   |   |   | – |   |   |   | – |   |
| Stock-based compensation costs                                                                   |   |                       | – |   |   |   | 1,323 |   |   |   | – |   |   |   | – |   |   |   | 1,323 |   |
| Net earnings for the year                                                                        |   |                       | – |   |   |   | – |   |   |   | 4,857 |   |   |   | – |   |   |   | 4,857 |   |
| Other comprehensive loss                                                                         |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                          |   |                       | – |   |   |   | – |   |   |   | – |   |   |   | (39,175 | ) |   |   | (39,175 | ) |
| Changes in unrealized losses on forward exchange contracts, net of deferred income taxes of $905 |   |                       | – |   |   |   | – |   |   |   | – |   |   |   | (2,571 | ) |   |   | (2,571 | ) |
|                                                                                             |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive loss for the year                                                            |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (36,889 | ) |
|                                                                                             |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2015                                                                    |   | $                          | 86,045  |   |   | $ | 17,778 |   |   | $ | 117,409 |   |   | $ | (52,005 | ) |   | $ | 169,227 |   |
|                                                                                                   |   | Year ended August 31, 2016 |    |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                                                   |   | Share capital              |    |   | Contributed surplus |   |   | Retained earnings |   |   | Accumulatedothercomprehensive loss |   |   | Totalshareholders' equity |   |
|                                                                                                   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at September 1, 2015                                                                        |   | $                          | 86,045  |   |   | $ | 17,778 |   |   | $ | 117,409 |   |   | $ | (52,005 | ) |   | $ | 169,227 |   |
| Redemption of share capital (note 12)                                                                  |   |                       | (1,768  | ) |   |   | 217 |   |   |   | – |   |   |   | – |   |   |   | (1,551 | ) |
| Reclassification of stock-based compensation costs (note 12)                                 |   |                       | 1,239   |   |   |   | (1,239 | ) |   |   | – |   |   |   | – |   |   |   | – |   |
| Stock-based compensation costs                                                                         |   |                       | – |   |   |   | 1,394 |   |   |   | – |   |   |   | – |   |   |   | 1,394 |   |
| Net earnings for the year                                                                              |   |                       | – |   |   |   | – |   |   |   | 8,900 |   |   |   | – |   |   |   | 8,900 |   |
| Other comprehensive income (loss)                                                                      |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                |   |                       | – |   |   |   | – |   |   |   | – |   |   |   | 707 |   |   |   | 707 |   |
| Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $935 |   |                       | – |   |   |   | – |   |   |   | – |   |   |   | 2,724 |   |   |   | 2,724 |   |
|                                                                                                   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income for the year                                                                |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 12,331 |   |
|                                                                                                   |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2016                                                                          |   | $                          | 85,516  |   |   | $ | 18,150 |   |   | $ | 126,309 |   |   | $ | (48,574 | ) |   | $ | 181,401 |   |

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|                                                          |   | Years ended August 31, |    |
|---------------------------------------------------------------|--------|------------------------|---------|
|                                                          |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
| Cash flows from operating activities                          |   |                   |    |   |   |   |   |   |   |
| Net earnings for the year                                     |   | $                      | 8,900   |   |   | $ | 4,857 |   |   | $ | 256 |   |
| Add (deduct) items not affecting cash                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| Stock-based compensation costs                                |   |                   | 1,378   |   |   |   | 1,295 |   |   |   | 1,696 |   |
| Depreciation and amortization                                 |   |                   | 4,986   |   |   |   | 7,718 |   |   |   | 9,393 |   |
| Unusual charge                                                |   |                   | – |   |   |   | 603 |   |   |   | 720 |   |
| Deferred revenue                                              |   |                   | 4,238   |   |   |   | 396 |   |   |   | (804 | ) |
| Deferred income taxes                                         |   |                   | 1,578   |   |   |   | 403 |   |   |   | 698 |   |
| Changes in foreign exchange gain/loss                         |   |                   | (332    | ) |   |   | (3,842 | ) |   |   | (491 | ) |
|                                                          |   |                   | 20,748  |   |   |   | 11,430 |   |   |   | 11,468 |   |
| Changes in non-cash operating items                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                           |   |                   | 2,682   |   |   |   | (10,828 | ) |   |   | 3,578 |   |
| Income taxes and tax credits                                  |   |                   | 939     |   |   |   | (2,062 | ) |   |   | 1,447 |   |
| Inventories                                                   |   |                   | (4,713  | ) |   |   | 820 |   |   |   | (734 | ) |
| Prepaid expenses                                              |   |                   | (280    | ) |   |   | (982 | ) |   |   | 210 |   |
| Other assets                                                  |   |                   | 170     |   |   |   | 61 |   |   |   | 92 |   |
| Accounts payable and accrued liabilities and provisions       |   |                   | 4,882   |   |   |   | 8,132 |   |   |   | 3,832 |   |
| Other liabilities                                             |   |                   | (65     | ) |   |   | (87 | ) |   |   | (107 | ) |
|                                                          |   |                   | 24,363  |   |   |   | 6,484 |   |   |   | 19,786 |   |
| Cash flows from investing activities                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Additions to short-term investments                           |   |                   | (3,546  | ) |   |   | (20,067 | ) |   |   | (34,222 | ) |
| Proceeds from disposal and maturity of short-term investments |   |                   | 873     |   |   |   | 23,685 |   |   |   | 33,208 |   |
| Purchases of capital assets (notes 7 and 8)                   |   |                   | (4,356  | ) |   |   | (5,933 | ) |   |   | (7,931 | ) |
|                                                          |   |                   | (7,029  | ) |   |   | (2,315 | ) |   |   | (8,945 | ) |
| Cash flows from financing activities                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Repayment of long-term debt                                   |   | ‒                |    |   | ‒ |   |   |   | (307 | ) |
| Exercise of stock options (note 12)                           |   | ‒                |    |   | ‒ |   |   |   | 225 |   |
| Redemption of share capital (note 12)                         |   |                   | (1,551  | ) |   |   | (25,494 | ) |   |   | (937 | ) |
|                                                          |   |                   | (1,551  | ) |   |   | (25,494 | ) |   |   | (1,019 | ) |
|                                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Effect of foreign exchange rate changes on cash               |   |                   | 1,561   |   |   |   | (6,932 | ) |   |   | (1,087 | ) |
|                                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Change in cash                                                |   |                   | 17,344  |   |   |   | (28,257 | ) |   |   | 8,735 |   |
| Cash – Beginning of year                                |   |                   | 25,864  |   |   |   | 54,121 |   |   |   | 45,386 |   |
| Cash – End of year                                      |   | $                      | 43,208  |   |   | $ | 25,864 |   |   | $ | 54,121 |   |
|                                                          |   |                   |    |   |   |   |   |   |   |   |   |   |
| Supplementary information                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Income taxes paid                                             |   | $                      | 2,015   |   |   | $ | 1,491 |   |   | $ | 1,272 |   |

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| 1 | Nature of Activities and Incorporation |
|---|----------------------------------------|

|                                         |   | As at August 31, 2016 |    |
|----------------------------------------------|--------|-----------------------|---------|
|                                         |   | As reported           |    |   | Adjustment |   |   | Revised |   |
| Revision to Consolidated Balance Sheet  |   |                  |    |   |   |   |   |   |   |
| Accounts receivable - Trade                  |   | $                     | 45,076  |   |   | $ | (2,083 | ) |   | $ | 42,993 |   |
| Deferred income tax assets                   |   | $                     | 7,681   |   |   | $ | 559 |   |   | $ | 8,240 |   |
| Retained earnings                            |   | $                     | 127,833 |   |   | $ | (1,524 | ) |   | $ | 126,309 |   |
| Total assets                                 |   | $                     | 239,317 |   |   | $ | (1,524 | ) |   | $ | 237,793 |   |
| Shareholders' equity                         |   | $                     | 182,925 |   |   | $ | (1,524 | ) |   | $ | 181,401 |   |
|                                         |   |                  |    |   |   |   |   |   |   |   |   |   |

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|                                                                                                           |   | As at and for the year ended August 31, 2015 |    |
|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                           |   | As reported                                  |    |   | Adjustment |   |   | Revised |   |
| Revision to Consolidated Balance Sheet                                                                    |   |                                         |    |   |   |   |   |   |   |
| Accounts receivable - Trade                                                                                    |   | $                                            | 48,068  |   |   | $ | (2,083 | ) |   | $ | 45,985 |   |
| Deferred income tax assets                                                                                     |   | $                                            | 8,900   |   |   | $ | 559 |   |   | $ | 9,459 |   |
| Retained earnings                                                                                              |   | $                                            | 118,933 |   |   | $ | (1,524 | ) |   | $ | 117,409 |   |
| Total assets                                                                                                   |   | $                                            | 219,002 |   |   | $ | (1,524 | ) |   | $ | 217,478 |   |
| Shareholders' equity                                                                                      |   | $                                            | 170,751 |   |   | $ | (1,524 | ) |   | $ | 169,227 |   |
| Revision to Consolidated Statement of Earnings and Consolidated Statement of Comprehensive Income (Loss)  |   |                                         |    |   |   |   |   |   |   |   |   |   |
| Unusual charge (1)                                                                                             |   | $                                            | – |   |   | $ | 603 |   |   | $ | 603 |   |
| Earnings before income taxes                                                                                   |   | $                                            | 10,496  |   |   | $ | (603 | ) |   | $ | 9,893 |   |
| Deferred income tax expense                                                                                    |   | $                                            | 565     |   |   | $ | (162 | ) |   | $ | 403 |   |
| Net earnings for the year                                                                                      |   | $                                            | 5,298   |   |   | $ | (441 | ) |   | $ | 4,857 |   |
| Basic net earnings per share for the year                                                                      |   | $                                            | 0.09    |   |   | $ | – |   |   | $ | 0.09 |   |
| Diluted net earnings per share for the year                                                                    |   | $                                            | 0.09    |   |   | $ | (0.01 | ) |   | $ | 0.08 |   |
| Comprehensive loss for the year                                                                                |   | $                                            | (36,448 | ) |   | $ | (441 | ) |   | $ | (36,889 | ) |

| (1) | Adjustment to recognize bad debt expense in connection with a past due trade receivable balance, for which, upon correction of the aging, management would have provided an allowance in accordance with the company's credit provision policies. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                           |   | As at and for the year ended August 31, 2014 |    |
|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                                                                           |   | As reported                                  |    |   | Adjustment |   |   | Revised |   |
|  Revision to Consolidated Balance Sheet                                                              |   |                                         |    |   |   |   |   |   |   |
| Retained earnings                                                                                         |   | $                                            | 113,635 |   |   | $ | (1,083 | ) |   | $ | 112,552 |   |
| Revision to Consolidated Statement of Earnings and Consolidated Statement of Comprehensive Income (Loss)  |   |                                         |    |   |   |   |   |   |   |   |   |   |
| Unusual charge (2)                                                                                             |   | $                                            | – |   |   | $ | 720 |   |   | $ | 720 |   |
| Earnings before income taxes                                                                                   |   | $                                            | 5,262   |   |   | $ | (720 | ) |   | $ | 4,542 |   |
| Deferred income tax expense                                                                                    |   | $                                            | 891     |   |   | $ | (193 | ) |   | $ | 698 |   |
| Net earnings for the year                                                                                      |   | $                                            | 783     |   |   | $ | (527 | ) |   | $ | 256 |   |
| Basic and diluted net earnings per share for the year                                                          |   | $                                            | 0.01    |   |   | $ | (0.01 | ) |   | $ | 0.00 |   |
| Comprehensive loss for the year                                                                                |   | $                                            | (6,053  | ) |   | $ | (527 | ) |   | $ | (6,580 | ) |

| (2) | Adjustment to recognize bad debt expense in connection with a past due trade receivable balance, for which, upon correction of the aging, management would have provided an allowance in accordance with the company's credit provision policies. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | As at August 31, 2013 |    |
|----------------------------------------------------|--------|-----------------------|---------|
|                                               |   | As reported           |    |   | Adjustment |   |   | Revised |   |
|  Revision to Consolidated Balance Sheet  |   |                  |    |   |   |   |   |   |   |
| Retained earnings (3)                              |   | $                     | 112,852 |   |   | $ | (556 | ) |   | $ | 112,296 |   |

| (3) | Adjustment  to opening retained earnings as at September 1, 2013 in connection with a past due trade receivable balance, for which, upon correction of the aging, management would have provided an allowance in accordance with the company's credit provision policies. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Basis of Presentation |
|---|-----------------------|

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| Cash                   | Loans and receivables |
|------------------------|-----------------------|
| Short-term investments | Available for sale    |
| Accounts receivable    | Loans and receivables |
| Other assets           | Loans and receivables |

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| Accounts payable and accrued liabilities | Other financial liabilities |
|------------------------------------------|-----------------------------|

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|  | Level 1: | Quoted prices (unadjusted) in active market for identical assets or liabilities; |
|--|----------|----------------------------------------------------------------------------------|

|  | Level 2: | Inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly; |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | Level 3: | Unobservable inputs for the asset or liability. |
|--|----------|-------------------------------------------------|

|                   | Term                                               |
|------------------------|----------------------------------------------------|
| Land improvements      | 15 years                                           |
| Buildings              | 20 to 60 years                                     |
| Equipment              | 3 to 15 years                                      |
| Leasehold improvements | The lesser of useful life and remaining lease term |

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| (a) | Determination of functional currency |
|-----|--------------------------------------|

| (b) | Determination of cash generating units and allocation of goodwill |
|-----|-------------------------------------------------------------------|

| (a) | Inventories |
|-----|-------------|

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| (b) | Income taxes |
|-----|--------------|

| (c) | Tax credits recoverable |
|-----|-------------------------|

| (d) | Impairment of non-financial assets |
|-----|------------------------------------|

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| 3 | Restructuring Charges |
|---|-----------------------|

| 4 | Capital Disclosures |
|---|---------------------|

| · | To maintain a flexible capital structure that optimizes the cost of capital at acceptable risk; |
|--------|-------------------------------------------------------------------------------------------------|

| · | To sustain future development of the company, including research and development activities, market development and potential acquisitions of complementary businesses or products; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | To provide the company's shareholders with an appropriate return on their investment. |
|--------|---------------------------------------------------------------------------------------|

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| 5 | Financial Instruments |
|---|-----------------------|

|                                     |   | As at August 31, 2016 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | Loans and receivable  |    |   | Available for sale |   |   | Otherfinancial liabilities |   |   | Derivativesused for hedging |   |   | Total |   |
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial assets                         |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                     |   | $                     | 43,208  |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 43,208 |   |
| Short-term investments                   |   | $                     | – |   |   | $ | 4,087 |   |   | $ | – |   |   | $ | – |   |   | $ | 4,087 |   |
| Accounts receivable                      |   | $                     | 45,467  |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 45,467 |   |
| Other assets                             |   | $                     | 35      |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 35 |   |
| Forward exchange contracts               |   | $                     | – |   |   | $ | – |   |   | $ | – |   |   | $ | 980 |   |   | $ | 980 |   |
| Financial liabilities                    |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | – |   |   | $ | – |   |   | $ | 36,099 |   |   | $ | – |   |   | $ | 36,099 |   |
| Forward exchange contracts               |   | $                     | – |   |   | $ | – |   |   | $ | – |   |   | $ | 1,120 |   |   | $ | 1,120 |   |

|                                     |   | As at August 31, 2015 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | Loans and receivable  |    |   | Available for sale |   |   | Otherfinancial liabilities |   |   | Derivativesused for hedging |   |   | Total |   |
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial assets                         |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                     |   | $                     | 25,864  |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 25,864 |   |
| Short-term investments                   |   | $                     | – |   |   | $ | 1,487 |   |   | $ | – |   |   | $ | – |   |   | $ | 1,487 |   |
| Accounts receivable                      |   | $                     | 48,369  |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 48,369 |   |
| Other assets                             |   | $                     | 103     |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 103 |   |
| Financial liabilities                    |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | – |   |   | $ | – |   |   | $ | 29,029 |   |   | $ | – |   |   | $ | 29,029 |   |
| Forward exchange contracts               |   | $                     | – |   |   | $ | – |   |   | $ | – |   |   | $ | 4,154 |   |   | $ | 4,154 |   |

|                       |   | As at August 31, 2016 |    |   | As at August 31, 2015 |   |
|----------------------------|--------|-----------------------|---------|--------|-----------------------|--------|
|                       |   | Level 1               |    |   | Level 2               |   |   | Level 1 |   |   | Level 2 |   |
| Financial assets           |   |                  |    |   |                  |   |   |   |   |   |   |   |
| Short-term investments     |   | $                     | 4,087   |   |                  | $      | – |   |   | $ | 1,487 |   |   | $ | – |   |
| Forward exchange contracts |   | $                     | – |   |                  | $      | 980 |   |   | $ | – |   |   | $ | – |   |
|                       |   |                  |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities      |   |                  |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Forward exchange contracts |   | $                     | – |   |                  | $      | 1,120 |   |   | $ | – |   |   | $ | 4,154 |   |

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| Expiry dates                    |   | Contractual amounts |   |   | Weighted average contractual forward rates |   |
|---------------------------------|--------|---------------------|--------|--------|--------------------------------------------|--------|
|                            |   |                |   |   |                                       |   |
| As at August 31, 2015           |   |                |   |   |                                       |   |
| September 2015 to August 2016   |   | $                   | 20,200 |   |                                       |   | 1.1180 |   |
| September 2016 to August 2017   |   |                | 8,000  |   |                                       |   | 1.1530 |   |
| September 2017 to December 2017 |   |                | 1,600  |   |                                       |   | 1.2135 |   |
| Total                           |   | $                   | 29,800 |   |                                       |   | 1.1326 |   |
|                            |   |                |   |   |                                       |   |   |   |
| As at August 31, 2016           |   |                |   |   |                                       |   |   |   |
| September 2016 to August 2017   |   | $                   | 22,200 |   |                                       |   | 1.2784 |   |
| September 2017 to August 2018   |   |                | 9,900  |   |                                       |   | 1.3367 |   |
| September 2018 to December 2018 |   |                | 1,900  |   |                                       |   | 1.3639 |   |
| Total                           |   | $                   | 34,000 |   |                                       |   | 1.3002 |   |
| Expiry dates                  |   | Contractual amounts |   |   | Weighted average contractual forward rates |   |
|-------------------------------|--------|---------------------|--------|--------|--------------------------------------------|--------|
|                          |   |                |   |   |                                       |   |
| As at August 31, 2015         |   |                |   |   |                                       |   |
| September 2015 to July 2016   |   | $                   | 3,900  |   |                                       |   | 66.41 |   |
|                          |   |                |   |   |                                       |   |   |   |
| As at August 31, 2016         |   |                |   |   |                                       |   |   |   |
| September 2016 to August 2017 |   | $                   | 3,800  |   |                                       |   | 70.92 |   |

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|                                 |   | Years ended August 31, |   |
|--------------------------------------|--------|------------------------|--------|
|                                 |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                 |   |                   |   |   |   |   |   |   |   |
| Losses on forward exchange contracts |   | $                      | 2,651  |   |   | $ | 2,562 |   |   | $ | 909 |   |
|                                                 |   | As at August 31,                                   |   |
|------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                 |   | 2016                                               |   |   | 2015 |   |
|                                                 |   |                                               |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | Carrying/nominalamount (in thousandsof US dollars) |   |   | Carrying/nominalamount (in thousandsof euros) |   |   | Carrying/nominalamount (in thousandsof US dollars) |   |   | Carrying/nominalamount (in thousandsof euros) |   |
|                                                 |   |                                               |   |   |   |   |   |   |   |   |   |   |
| Financial assets                                     |   |                                               |   |   |   |   |   |   |   |   |   |   |
| Cash                                                 |   | $                                                  | 13,090 |   |   | € | 2,927 |   |   | $ | 9,226 |   |   | € | 3,448 |   |
| Accounts receivable                                  |   |                                               | 30,141 |   |   |   | 5,963 |   |   |   | 37,019 |   |   |   | 4,488 |   |
|                                                 |   |                                               | 43,231 |   |   |   | 8,890 |   |   |   | 46,245 |   |   |   | 7,936 |   |
| Financial liabilities                                |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities             |   |                                               | 14,251 |   |   |   | 1,081 |   |   |   | 12,873 |   |   |   | 1,047 |   |
| Forward exchange contracts (nominal value) |   |                                               | 4,000  |   |   |   | – |   |   |   | 3,800 |   |   |   | – |   |
|                                                 |   |                                               | 18,251 |   |   |   | 1,081 |   |   |   | 16,673 |   |   |   | 1,047 |   |
| Net exposure                                         |   | $                                                  | 24,980 |   |   | € | 7,809 |   |   | $ | 29,572 |   |   | € | 6,889 |   |

----

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| · | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $2,677,000, or $0.05 per diluted share, and $2,342,000, or $0.04 per diluted share, as at August 31, 2015 and 2016 respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $834,000, or $0.01 per diluted share, and $830,000 or $0.02 per diluted share, as at August 31, 2015 and 2016 respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) other comprehensive income by $2,066,000 and $2,176,000 as at August 31, 2015 and 2016 respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                |   | As at August 31 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|
|                                                                                                                                                                                                                                                                |   | 2016            |   |   | 2015 |   |
|                                                                                                                                                                                                                                                                |   |            |   |   |   |   |
| Term deposit denominated in Canadian dollars, bearing interest at an annual rate of 1.5%, maturing in May 2017                                                                                                                                                      |   | $               | 2,668  |   |   | $ | – |   |
| Term deposits denominated in Indian rupees, bearing interest at annual rates of 6.0% to 7.3% in 2016 and 4.5% to 8.5% in 2015, maturing on different dates between November 2016 and October 2018 in 2016 and November 2015 and October 2018 in 2015 |   |            | 1,419  |   |   |   | 1,487 |   |
|                                                                                                                                                                                                                                                                |   | $               | 4,087  |   |   | $ | 1,487 |   |

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|                                                                                                                                       |   | As at August 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                       |   | 2016             |   |   | 2015 |   |
|                                                                                                                                       |   |             |   |   |   |   |
| Current                                                                                                                                    |   | $                | 38,411 |   |   | $ | 36,723 |   |
| Past due, 0 to 30 days                                                                                                                     |   |             | 1,286  |   |   |   | 5,164 |   |
| Past due, 31 to 60 days                                                                                                                    |   |             | 868    |   |   |   | 1,027 |   |
| Past due, more than 60 days, net of allowance for doubtful accounts of $2,935 and $3,752 as at August 31, 2015 and 2016, respectively |   |             | 2,428  |   |   |   | 3,071 |   |
|                                                                                                                                       |   | $                | 42,993 |   |   | $ | 45,985 |   |
|                                |   | Years ended August 31, |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   | 2016                   |   |   | 2015 |   |
|                                |   |                   |   |   |   |   |
| Balance – Beginning of year   |   | $                      | 2,935  |   |   | $ | 1,876 |   |
| Addition charged to earnings        |   |                   | 817    |   |   |   | 1,107 |   |
| Write-off of uncollectible accounts |   | ‒                |   |   |   | (48 | ) |
| Balance – End of year         |   | $                      | 3,752  |   |   | $ | 2,935 |   |

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|                                     |   | As at August 31, 2016 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   | 0-12 months           |    |   | 13-24 months |   |   | 25-36 months |   |
|                                     |   |                  |    |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | 36,099  |   |   | $ | ‒ |   |   | $ | ‒ |   |
| Forward exchange contracts               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Outflow                                  |   |                  | 26,000  |   |   |   | 9,900 |   |   |   | 1,900 |   |
| Inflow                                   |   |                  | (25,653 | ) |   |   | (10,089 | ) |   |   | (1,976 | ) |
| Total                                    |   | $                     | 36,446  |   |   | $ | (189 | ) |   | $ | (76 | ) |
|                                     |   | As at August 31, 2015 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   | 0-12 months           |    |   | 13-24 months |   |   | 25-36 months |   |
|                                     |   |                  |    |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | 29,029  |   |   | $ | ‒ |   |   | $ | ‒ |   |
| Forward exchange contracts               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Outflow                                  |   |                  | 24,100  |   |   |   | 8,000 |   |   |   | 1,600 |   |
| Inflow                                   |   |                  | (21,082 | ) |   |   | (7,011 | ) |   |   | (1,476 | ) |
| Total                                    |   | $                     | 32,047  |   |   | $ | 989 |   |   | $ | 124 |   |

| 6 | Inventories |
|---|-------------|

|             |   | As at August 31, |   |
|------------------|--------|------------------|--------|
|             |   | 2016             |   |   | 2015 |   |
|             |   |             |   |   |   |   |
| Raw materials    |   | $                | 18,692 |   |   | $ | 15,972 |   |
| Work in progress |   |             | 1,067  |   |   |   | 998 |   |
| Finished goods   |   |             | 13,245 |   |   |   | 10,981 |   |
|             |   | $                | 33,004 |   |   | $ | 27,951 |   |

----

Table of Contents

| 7 | Property, Plant and Equipment |
|---|-------------------------------|

|                                                       |   | Land and landimprovements |   |   | Buildings |   |   | Equipment |   |   | Leaseholdimprovements |   |   | Total  |   |
|------------------------------------------------------------|--------|---------------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------------------|--------|--------|--------|--------|
|                                                       |   |                      |   |   |      |   |   |      |   |   |                  |   |   |   |   |
| Cost as at September 1, 2014                               |   | $                         | 5,222  |   |      | $      | 35,597 |      |   | $      | 38,970                |   |   | $      | 2,442  |   |   | $ | 82,231 |   |
| Additions                                                  |   | ‒                   |   |   |      | 153    |   |      |   | 3,638  |                  |   |   | 1,443  |   |   |   | 5,234 |   |
| Disposals                                                  |   | ‒                   |   |   |      | (12    | )      |      |   | (4,999 | )                     |   |   | (753   | )      |   |   | (5,764 | ) |
| Foreign currency translation adjustment                    |   |                      | (913   | )      |      |   | (6,266 | )         |   |   | (6,400                | )      |   |   | (338   | ) |   |   | (13,917 | ) |
| Cost as at August 31, 2015                                 |   |                      | 4,309  |   |      |   | 29,472 |      |   |   | 31,209                |   |   |   | 2,794  |   |   |   | 67,784 |   |
| Additions                                                  |   | ‒                   |   |   |      | 201    |   |      |   | 3,626  |                  |   |   | 226    |   |   |   | 4,053 |   |
| Disposals                                                  |   | ‒                   |   |   |      | (11    | )      |      |   | (4,280 | )                     |   |   | (121   | )      |   |   | (4,412 | ) |
| Foreign currency translation adjustment                    |   |                      | 13     |   |      |   | 93     |      |   |   | 162                   |   |   |   | 19     |   |   |   | 287 |   |
| Cost as at August 31, 2016                                 |   | $                         | 4,322  |   |      | $      | 29,755 |      |   | $      | 30,717                |   |   | $      | 2,918  |   |   | $ | 67,712 |   |
|                                                       |   |                      |   |   |      |   |   |      |   |   |                  |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation as at September 1, 2014 |   | $                         | 1,327  |   |      | $      | 6,984  |      |   | $      | 29,888                |   |   | $      | 1,252  |   |   | $ | 39,451 |   |
| Depreciation for the year                                  |   |                      | 51     |   |      |   | 485    |      |   |   | 3,919                 |   |   |   | 380    |   |   |   | 4,835 |   |
| Disposals                                                  |   | ‒                   |   |   |      | (12    | )      |      |   | (4,999 | )                     |   |   | (753   | )      |   |   | (5,764 | ) |
| Foreign currency translation adjustment                    |   |                      | (236   | )      |      |   | (1,514 | )         |   |   | (4,595                | )      |   |   | (88    | ) |   |   | (6,433 | ) |
| Accumulated depreciation as at August 31, 2015   |   |                      | 1,142  |   |      |   | 5,943  |      |   |   | 24,213                |   |   |   | 791    |   |   |   | 32,089 |   |
| Depreciation for the year                                  |   |                      | 45     |   |      |   | 639    |      |   |   | 2,811                 |   |   |   | 319    |   |   |   | 3,814 |   |
| Disposals                                                  |   | ‒                   |   |   |      | (11    | )      |      |   | (4,258 | )                     |   |   | (121   | )      |   |   | (4,390 | ) |
| Foreign currency translation adjustment                    |   |                      | 5      |   |      |   | 31     |      |   |   | 136                   |   |   |   | 49     |   |   |   | 221 |   |
| Accumulated depreciation as at August 31, 2016   |   | $                         | 1,192  |   |      | $      | 6,602  |      |   | $      | 22,902                |   |   | $      | 1,038  |   |   | $ | 31,734 |   |
|                                                       |   |                      |   |   |      |   |   |      |   |   |                  |   |   |   |   |   |   |   |   |   |
| Net carrying value as at:                                  |   |                      |   |   |      |   |   |      |   |   |                  |   |   |   |   |   |   |   |   |   |
| August 31, 2015                                            |   | $                         | 3,167  |   |      | $      | 23,529 |      |   | $      | 6,996                 |   |   | $      | 2,003  |   |   | $ | 35,695 |   |
| August 31, 2016                                            |   | $                         | 3,130  |   |      | $      | 23,153 |      |   | $      | 7,815                 |   |   | $      | 1,880  |   |   | $ | 35,978 |   |

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Table of Contents

| 8 | Intangible Assets and Goodwill |
|---|--------------------------------|

|                                                          |   | Core technology |   |   | Customer relationships |    |    | Brand name |    |   | Software |   |   | Total  |   |
|---------------------------------------------------------------|--------|-----------------|--------|--------|------------------------|---------|---------|------------|---------|--------|----------|--------|--------|--------|--------|
|                                                          |   |            |   |   |                   |    |    |       |    |   |     |   |   |   |   |
| Cost as at September 1, 2014                                  |   | $               | 12,686 |   |                   | $       | 5,979   |       |    | $      | 596      |   |   | $      | 12,925 |   |   | $ | 32,186 |   |
| Additions                                                     |   |            | 153    |   |                   | ‒ |    |       | ‒ |   |     |   | 567    |   |   |   | 720 |   |
| Disposals                                                     |   |            | (93    | )      |                   | ‒ |    |       | ‒ |   |     |   | (652   | )      |   |   | (745 | ) |
| Foreign currency translation adjustment                       |   |            | (2,225 | )      |                   |    | (1,044  | )          |    |   | (104     | )      |   |   | (2,112 | ) |   |   | (5,485 | ) |
| Cost as at August 31, 2015                                    |   |            | 10,521 |   |                   |    | 4,935   |       |    |   | 492      |   |   |   | 10,728 |   |   |   | 26,676 |   |
| Additions                                                     |   |            | 147    |   |                   | ‒ |    |       | ‒ |   |     |   | 313    |   |   |   | 460 |   |
| Disposals                                                     |   |            | (6,414 | )      |                   |    | (4,935  | )          |    |   | (492     | )      |   |   | (310   | ) |   |   | (12,151 | ) |
| Foreign currency translation adjustment                       |   |            | 48     |   |                   | ‒ |    |       | ‒ |   |     |   | 112    |   |   |   | 160 |   |
| Cost as at August 31, 2016                                    |   | $               | 4,302  |   |                   | $       | ‒ |       |    | $      | ‒  |   |   | $      | 10,843 |   |   | $ | 15,145 |   |
|                                                          |   |            |   |   |                   |    |    |       |    |   |     |   |   |   |   |   |   |   |   |   |
| Accumulated amortization as at September 1, 2014    |   | $               | 8,062  |   |                   | $       | 5,346   |       |    | $      | 534      |   |   | $      | 10,951 |   |   | $ | 24,893 |   |
| Amortization for the year                                     |   |            | 808    |   |                   |    | 569     |       |    |   | 57       |   |   |   | 1,449  |   |   |   | 2,883 |   |
| Disposals                                                     |   |            | (93    | )      |                   | ‒ |    |       | ‒ |   |     |   | (652   | )      |   |   | (745 | ) |
| Foreign currency translation adjustment                       |   |            | (865   | )      |                   |    | (980    | )          |    |   | (99      | )      |   |   | (2,507 | ) |   |   | (4,451 | ) |
| Accumulated amortization as at August 31, 2015      |   |            | 7,912  |   |                   |    | 4,935   |       |    |   | 492      |   |   |   | 9,241  |   |   |   | 22,580 |   |
| Amortization for the year                                     |   |            | 700    |   |                   | ‒ |    |       | ‒ |   |     |   | 472    |   |   |   | 1,172 |   |
| Disposals                                                     |   |            | (6,414 | )      |                   |    | (4,935  | )          |    |   | (492     | )      |   |   | (297   | ) |   |   | (12,138 | ) |
| Foreign currency translation adjustment                       |   |            | 109    |   |                   | ‒ |    |       | ‒ |   |     |   | 31     |   |   |   | 140 |   |
| Accumulated amortization as at August 31, 2016      |   | $               | 2,307  |   |                   | $       | ‒ |       |    | $      | ‒  |   |   | $      | 9,447  |   |   | $ | 11,754 |   |
|                                                          |   |            |   |   |                   |    |    |       |    |   |     |   |   |   |   |   |   |   |   |   |
| Net carrying value as at:                                     |   |            |   |   |                   |    |    |       |    |   |     |   |   |   |   |   |   |   |   |   |
| August 31, 2015                                               |   | $               | 2,609  |   |                   | $       | ‒ |       |    | $      | ‒  |   |   | $      | 1,487  |   |   | $ | 4,096 |   |
| August 31, 2016                                               |   | $               | 1,995  |   |                   | $       | ‒ |       |    | $      | ‒  |   |   | $      | 1,396  |   |   | $ | 3,391 |   |
|                                                          |   |            |   |   |                   |    |    |       |    |   |     |   |   |   |   |   |   |   |   |   |
| Remaining amortization period as at August 31, 2016 |   | 3 years         |   |   | ‒                |    |    | ‒    |    |   | 4 years  |   |   |   |   |   |

|                                    |   | Years ended August 31, |   |
|-----------------------------------------|--------|------------------------|--------|
|                                    |   | 2016                   |   |   | 2015 |   |
|                                    |   |                   |   |   |   |   |
| Balance – Beginning of year       |   | $                      | 21,860 |   |   | $ | 26,488 |   |
| Foreign currency translation adjustment |   |                   | 68     |   |   |   | (4,628 | ) |
| Balance – End of year             |   | $                      | 21,928 |   |   | $ | 21,860 |   |

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|     |   | As at August 31, |   |
|----------|--------|------------------|--------|
|     |   | 2016             |   |   | 2015 |   |
|     |   |             |   |   |   |   |
| EXFO CGU |   | $                | 8,663  |   |   | $ | 8,636 |   |
| Brix CGU |   |             | 13,265 |   |   |   | 13,224 |   |
| Total    |   | $                | 21,928 |   |   | $ | 21,860 |   |

| 9 | Credit Facilities |
|---|-------------------|

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Table of Contents

| 10 | Accounts Payable and Accrued Liabilities |
|----|------------------------------------------|

|                                |   | As at August 31, |   |
|-------------------------------------|--------|------------------|--------|
|                                |   | 2016             |   |   | 2015 |   |
|                                |   |             |   |   |   |   |
| Trade                               |   | $                | 16,940 |   |   | $ | 14,402 |   |
| Salaries and social benefits        |   |             | 16,188 |   |   |   | 11,088 |   |
| Forward exchange contracts (note 5) |   |             | 1,075  |   |   |   | 3,460 |   |
| Restructuring charges (note 3)      |   | ‒          |   |   |   | 1,637 |   |
| Other                               |   |             | 2,971  |   |   |   | 3,539 |   |
|                                |   | $                | 37,174 |   |   | $ | 34,126 |   |

| 11 | Commitments |
|----|-------------|

|                                        |   | As at August 31, |   |
|---------------------------------------------|--------|------------------|--------|
|                                        |   | 2016             |   |   | 2015 |   |
|                                        |   |             |   |   |   |   |
| No later than 1 year                        |   | $                | 3,337  |   |   | $ | 2,112 |   |
| Later than 1 year and no later than 5 years |   |             | 3,876  |   |   |   | 3,620 |   |
| Later than 5 years                          |   |             | 1,037  |   |   |   | 1,766 |   |
|                                        |   | $                | 8,250  |   |   | $ | 7,498 |   |

| 12 | Share Capital |
|----|---------------|

| Authorized – unlimited as to number, without par value |
|--------------------------------------------------------------|
|                                                         | Subordinate voting and participating, bearing a non-cumulative dividend to be determined by the Board of Directors, ranking pari passu with multiple voting shares |
|                                                         | Multiple voting and participating, entitling to 10 votes each, bearing a non-cumulative dividend to be determined by the Board of Directors, convertible at the holder's option into subordinate voting shares on a one-for-one basis, ranking pari passu with subordinate voting shares |

----

Table of Contents

|                                                                                              |   | Multiple Voting Shares |       |   | Subordinate Voting Shares |    |    |   |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|---------------------------|---------|---------|--------|--------|
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |
|                                                                                              |   | Number                 |       |   | Amount                    |    |    | Number |   |   | Amount |   |   | Totalamount |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |
| Balance as at September 1, 2013                                                                   |   |                   | 31,643,000 |   |                      | $       | 1       |   |   |   | 28,401,790 |   |   | $ | 109,836 |   |   | $ | 109,837 |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of stock options (note 14)                                                               |   | ‒                |       |   |                      | – |    |   |   | 52,800 |   |   |   | 225 |   |   |   | 225 |   |
| Redemption of restricted share units (note 14)                                          |   | ‒                |       |   |                      | – |    |   |   | 425,620 |   |   |   | – |   |   |   | – |   |
| Redemption of deferred share units (note 14)                                                 |   | ‒                |       |   |                      | – |    |   |   | 38,010 |   |   |   | – |   |   |   | – |   |
| Redemption of share capital                                                                       |   | ‒                |       |   |                      | – |    |   |   | (214,470 | ) |   |   | (831 | ) |   |   | (831 | ) |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards |   | ‒                |       |   |                      | – |    |   |   | – |   |   |   | 2,260 |   |   |   | 2,260 |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2014                                                                     |   |                   | 31,643,000 |   |                      |    | 1       |   |   |   | 28,703,750 |   |   |   | 111,490 |   |   |   | 111,491 |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redemption of restricted share units (note 14)                                          |   | ‒                |       |   |                      | – |    |   |   | 229,559 |   |   |   | – |   |   |   | – |   |
| Redemption of deferred share units (note 14)                                                 |   | ‒                |       |   |                      | – |    |   |   | 48,697 |   |   |   | – |   |   |   | – |   |
| Redemption of share capital                                                                       |   | ‒                |       |   |                      | – |    |   |   | (6,889,972 | ) |   |   | (26,827 | ) |   |   | (26,827 | ) |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards |   |                   | –    |   |                      |    | – |   |   |   | – |   |   |   | 1,381 |   |   |   | 1,381 |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2015                                                                     |   |                   | 31,643,000 |   |                      |    | 1       |   |   |   | 22,092,034 |   |   |   | 86,044 |   |   |   | 86,045 |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redemption of restricted share units (note 14)                                          |   |                   | –    |   |                      |    | – |   |   |   | 277,805 |   |   |   | – |   |   |   | – |   |
| Redemption of deferred share units (note 14)                                                 |   |                   | –    |   |                      |    | – |   |   |   | 653 |   |   |   | – |   |   |   | – |   |
| Redemption of share capital                                                                       |   |                   | –    |   |                      |    | – |   |   |   | (452,550 | ) |   |   | (1,768 | ) |   |   | (1,768 | ) |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards |   |                   | –    |   |                      |    | – |   |   |   | – |   |   |   | 1,239 |   |   |   | 1,239 |   |
|                                                                                              |   |                   |       |   |                      |    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2016                                                                     |   |                   | 31,643,000 |   |                      | $       | 1       |   |   |   | 21,917,942 |   |   | $ | 85,515 |   |   | $ | 85,516 |   |

| a) | On January 8, 2014, the company announced that its Board of Directors had approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 10% of its issued and outstanding subordinate voting shares, representing 2,043,101 subordinate voting shares at the prevailing market price. The normal course issuer bid started on January 13, 2014, and ended on January 12, 2015. All shares repurchased under the bid were cancelled. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| b) | On January 7, 2015, the company announced that its Board of Directors had authorized a substantial issuer bid (the "Offer") to purchase for cancellation up to 7,142,857 subordinate voting shares for an aggregate purchase price not to exceed CA$30,000,000. On February 20, 2015, pursuant to the Offer, the company purchased for cancellation 6,521,739 subordinate voting shares for an aggregate purchase price of CA$30,000,000 (US$24,027,000), plus related fees of $223,000. The company used cash to fund the purchase of shares. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | On March 25, 2015, the company announced that its Board of Directors had approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 10% of the issued and outstanding subordinate voting shares, representing 1,397,598 subordinate voting shares at the prevailing market price. The normal course issuer bid started on March 27, 2015, and ended on March 26, 2016. All shares repurchased under the bid were cancelled. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d) | On March 29, 2016, the company announced that its Board of Directors had approved the renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 6.6% of the issued and outstanding subordinate voting shares, representing 900,000 subordinate voting shares at the prevailing market price. The normal course issuer bid started on April 1, 2016, and will end on March 31, 2017, or on an earlier date if the company repurchases the maximum number of shares permitted under the bid. The program does not require that the company repurchases any specific number of shares, and it may be modified, suspended or terminated at any time and without prior notice. All shares repurchased under the bid are cancelled. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13 | Accumulated Other Comprehensive Loss |
|----|--------------------------------------|

|                                                                                           |   | Foreigncurrencytranslationadjustment |    |   | Cash-flowhedge |    |    | Accumulatedothercomprehensiveloss |   |
|------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|--------|----------------|---------|---------|-----------------------------------|--------|
|                                                                                           |   |                                 |    |   |           |    |    |                              |   |
| Balance as at September 1, 2013                                                                |   | $                                    | (3,582  | )      |           | $       | 159     |                              |   | $ | (3,423 | ) |
| Foreign currency translation adjustment                                                        |   |                                 | (7,086  | )      |           |    | – |                              |   |   | (7,086 | ) |
| Changes in unrealized losses on forward exchange contracts, net of deferred income taxes       |   |                                 | – |   |           |    | 250     |                              |   |   | 250 |   |
|                                                                                           |   |                                 |    |   |           |    |    |                              |   |   |   |   |
| Balance as at August 31, 2014                                                                  |   |                                 | (10,668 | )      |           |    | 409     |                              |   |   | (10,259 | ) |
| Foreign currency translation adjustment                                                        |   |                                 | (39,175 | )      |           |    | – |                              |   |   | (39,175 | ) |
| Changes in unrealized losses on forward exchange contracts, net of deferred income taxes       |   |                                 | – |   |           |    | (2,571  | )                                 |   |   | (2,571 | ) |
|                                                                                           |   |                                 |    |   |           |    |    |                              |   |   |   |   |
| Balance as at August 31, 2015                                                                  |   |                                 | (49,843 | )      |           |    | (2,162  | )                                 |   |   | (52,005 | ) |
| Foreign currency translation adjustment                                                        |   |                                 | 707     |   |           | ‒ |    |                              |   | 707 |   |
| Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes |   | ‒                              |    |   |           | 2,724   |    |                              |   | 2,724 |   |
|                                                                                           |   |                                 |    |   |           |    |    |                              |   |   |   |   |
| Balance as at August 31, 2016                                                                  |   | $                                    | (49,136 | )      |           | $       | 562     |                              |   | $ | (48,574 | ) |

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Table of Contents

| 14 | Stock-Based Compensation Plans |
|----|--------------------------------|

|                                                             |   | Years ended August 31, |   |
|------------------------------------------------------------------|--------|------------------------|--------|
|                                                             |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                                             |   |                   |   |   |   |   |   |   |   |
| Stock-based compensation costs arising fromequity-settled awards |   | $                      | 1,394  |   |   | $ | 1,323 |   |   | $ | 1,683 |   |
| Stock-based compensation costs arising fromcash-settled awards   |   |                   | (16    | ) |   |   | (28 | ) |   |   | 13 |   |
|                                                             |   | $                      | 1,378  |   |   | $ | 1,295 |   |   | $ | 1,696 |   |
|                                       |   | Years ended August 31, |    |
|--------------------------------------------|--------|------------------------|---------|
|                                       |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                       |   | Number                 |    |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |
|                                       |   |                   |    |   | (CA$) |   |   |   |   |   | (CA$) |   |   |   |   |   | (CA$) |   |
| Outstanding – Beginning of year |   |                   | 17,099  |   |   | $ | 6 |   |   |   | 87,454 |   |   | $ | 6 |   |   |   | 201,254 |   |   | $ | 6 |   |
| Exercised                                  |   |                   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (52,800 | ) |   |   | 5 |   |
| Forfeited                                  |   |                   | – |   |   |   | – |   |   |   | (2,000 | ) |   |   | 6 |   |   |   | (4,500 | ) |   |   | 6 |   |
| Expired                                    |   |                   | (17,099 | ) |   |   | 6 |   |   |   | (68,355 | ) |   |   | 6 |   |   |   | (56,500 | ) |   |   | 6 |   |
| Outstanding – End of year            |   |                   | – |   |   | $ | – |   |   |   | 17,099 |   |   | $ | 6 |   |   |   | 87,454 |   |   | $ | 6 |   |
| Exercisable – End of year            |   |                   | – |   |   | $ | – |   |   |   | 17,099 |   |   | $ | 6 |   |   |   | 87,454 |   |   | $ | 6 |   |

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Table of Contents

|                                  |   | Years ended August 31, |      |
|---------------------------------------|--------|------------------------|-----------|
|                                  |   | 2016                   |      |   | 2015 |   |   | 2014 |   |
|                                  |   |                   |      |   |   |   |   |   |   |
| Outstanding – Beginning of year |   |                   | 1,299,958 |   |   |   | 1,225,135 |   |   |   | 1,333,092 |   |
| Granted                               |   |                   | 572,008   |   |   |   | 409,521 |   |   |   | 336,685 |   |
| Redeemed                              |   |                   | (277,805  | ) |   |   | (229,559 | ) |   |   | (425,620 | ) |
| Forfeited                             |   |                   | (42,606   | ) |   |   | (105,139 | ) |   |   | (19,022 | ) |
| Outstanding – End of year       |   |                   | 1,551,555 |   |   |   | 1,299,958 |   |   |   | 1,225,135 |   |
|                                  |   | Years ended August 31, |    |
|---------------------------------------|--------|------------------------|---------|
|                                  |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                  |   |                   |    |   |   |   |   |   |   |
| Outstanding – Beginning of year |   |                   | 114,810 |   |   |   | 117,701 |   |   |   | 119,908 |   |
| Granted                               |   |                   | 44,970  |   |   |   | 45,806 |   |   |   | 35,803 |   |
| Redeemed                              |   |                   | (653    | ) |   |   | (48,697 | ) |   |   | (38,010 | ) |
| Outstanding – End of year       |   |                   | 159,127 |   |   |   | 114,810 |   |   |   | 117,701 |   |

----

Table of Contents

|                                       |   | Years ended August 31, |    |
|--------------------------------------------|--------|------------------------|---------|
|                                       |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                       |   | Number                 |    |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |
| Outstanding – Beginning of year |   |                   | 42,324  |   |   | $ | 1 |   |   |   | 39,874 |   |   | $ | 2 |   |   |   | 37,224 |   |   | $ | 3 |   |
| Granted                                    |   |                   | 7,800   |   |   |   | – |   |   |   | 6,150 |   |   |   | – |   |   |   | 7,150 |   |   |   | – |   |
| Exercised                                  |   |                   | (12,927 | ) |   |   | 5 |   |   |   | (500 | ) |   |   | 6 |   |   |   | – |   |   |   | – |   |
| Expired                                    |   |                   | (1,500  | ) |   |   | 7 |   |   |   | (2,000 | ) |   |   | 5 |   |   |   | (4,500 | ) |   |   | 5 |   |
| Forfeited                                  |   |                   | (2,197  | ) |   |   | – |   |   |   | (1,200 | ) |   |   | 6 |   |   |   | – |   |   |   | – |   |
| Outstanding – End of year            |   |                   | 33,500  |   |   | $ | 1 |   |   |   | 42,324 |   |   | $ | 1 |   |   |   | 39,874 |   |   | $ | 2 |   |
| Exercisable – End of year            |   |                   | 14,000  |   |   | $ | 3 |   |   |   | 22,924 |   |   | $ | 3 |   |   |   | 22,374 |   |   | $ | 3 |   |

|   |                              |   |   | Stock appreciation rights outstanding |   | Stock appreciation rights exercisable       |   |
|--------|-----------------------------------|--------|--------|---------------------------------------|--------|---------------------------------------------|--------|
|   |                              |   |   |                                  |   |                                        |   |   |   |
|   | Exercise price                    |   |   | Number                                |   | Weighted average remaining contractual life |   | Number |   |
|   |                              |   |   |                                  |   |                                        |   |   |   |
|   | $     – |   |   |                                  |   | 19,500                                      |   | 8 years |   |   | – |   |
|   | $2.36                             |   |   |                                  |   | 8,250                                       |   | 2 years |   |   | 8,250 |   |
|   | $3.74                             |   |   |                                  |   | 4,000                                       |   | 3 years |   |   | 4,000 |   |
|   | $6.28                             |   |   |                                  |   | 1,750                                       |   | 1 year |   |   | 1,750 |   |
|   |                              |   |   |                                  |   | 33,500                                      |   | 6 years |   |   | 14,000 |   |

----

Table of Contents

| 15 | Related-Party Disclosures |
|----|---------------------------|

|                                      |   | Years ended August 31, |   |
|-------------------------------------------|--------|------------------------|--------|
|                                      |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                      |   |                   |   |   |   |   |   |   |   |
| Salaries and short-term employee benefits |   | $                      | 3,701  |   |   | $ | 3,025 |   |   | $ | 3,627 |   |
| Stock-based compensation costs            |   |                   | 826    |   |   |   | 617 |   |   |   | 906 |   |
|                                      |   | $                      | 4,527  |   |   | $ | 3,642 |   |   | $ | 4,533 |   |
|                                      |   |                   |   |   |   |   |   |   |   |   |   |   |

| 16 | Statements of Earnings |
|----|------------------------|

|                                               |   | Years ended August 31, |   |
|----------------------------------------------------|--------|------------------------|--------|
|                                               |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                               |   |                   |   |   |   |   |   |   |   |
| Gross research and development expenses            |   | $                      | 47,875 |   |   | $ | 50,148 |   |   | $ | 52,423 |   |
| Research and development tax credits and grants    |   |                   | (5,188 | ) |   |   | (6,145 | ) |   |   | (7,577 | ) |
| Net research and development expenses for the year |   | $                      | 42,687 |   |   | $ | 44,003 |   |   | $ | 44,846 |   |

----

Table of Contents

|                                                           |   | Years ended August 31, |   |
|----------------------------------------------------------------|--------|------------------------|--------|
|                                                           |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                                           |   |                   |   |   |   |   |   |   |   |
| Cost of sales                                                  |   |                   |   |   |   |   |   |   |   |
| Depreciation of property, plant and equipment                  |   | $                      | 1,290  |   |   | $ | 1,519 |   |   | $ | 1,522 |   |
| Amortization of intangible assets                              |   |                   | 702    |   |   |   | 1,540 |   |   |   | 2,087 |   |
|                                                           |   |                   | 1,992  |   |   |   | 3,059 |   |   |   | 3,609 |   |
|                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Selling and administrative expenses                            |   |                   |   |   |   |   |   |   |   |   |   |   |
| Depreciation of property, plant and equipment                  |   |                   | 501    |   |   |   | 524 |   |   |   | 951 |   |
| Amortization of intangible assets                              |   |                   | 75     |   |   |   | 790 |   |   |   | 1,534 |   |
|                                                           |   |                   | 576    |   |   |   | 1,314 |   |   |   | 2,485 |   |
|                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net research and development expenses                          |   |                   |   |   |   |   |   |   |   |   |   |   |
| Depreciation of property, plant and equipment                  |   |                   | 2,023  |   |   |   | 2,792 |   |   |   | 2,522 |   |
| Amortization of intangible assets                              |   |                   | 395    |   |   |   | 553 |   |   |   | 777 |   |
|                                                           |   |                   | 2,418  |   |   |   | 3,345 |   |   |   | 3,299 |   |
|                                                           |   | $                      | 4,986  |   |   | $ | 7,718 |   |   | $ | 9,393 |   |
|                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |
| Depreciation of property, plant and equipment                  |   | $                      | 3,814  |   |   | $ | 4,835 |   |   | $ | 4,995 |   |
| Amortization of intangible assets                              |   |                   | 1,172  |   |   |   | 2,883 |   |   |   | 4,398 |   |
| Total depreciation and amortization expenses for the year |   | $                      | 4,986  |   |   | $ | 7,718 |   |   | $ | 9,393 |   |
|                                     |   | Years ended August 31, |    |
|------------------------------------------|--------|------------------------|---------|
|                                     |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                     |   |                   |    |   |   |   |   |   |   |
| Salaries and benefits                    |   | $                      | 112,569 |   |   | $ | 114,868 |   |   | $ | 121,515 |   |
| Restructuring charges                    |   | ‒                |    |   |   | 1,637 |   |   | ‒ |   |
| Stock-based compensation costs           |   |                   | 1,378   |   |   |   | 1,295 |   |   |   | 1,696 |   |
| Total employee compensation for the year |   | $                      | 113,947 |   |   | $ | 117,800 |   |   | $ | 123,211 |   |

|                                     |   | Years ended August 31, |    |
|------------------------------------------|--------|------------------------|---------|
|                                     |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                                     |   |                   |    |   |   |   |   |   |   |
| Cost of sales                            |   | $                      | ‒ |   |   | $ | 290 |   |   | $ | ‒ |   |
| Selling and administrative expenses      |   |                   | ‒ |   |   |   | 586 |   |   |   | ‒ |   |
| Net research and development costs       |   |                   | ‒ |   |   |   | 761 |   |   |   | ‒ |   |
| Total restructuring charges for the year |   | $                      | ‒ |   |   | $ | 1,637 |   |   | $ | ‒ |   |

----

Table of Contents

|                                              |   | Years ended August 31, |   |
|---------------------------------------------------|--------|------------------------|--------|
|                                              |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                              |   |                   |   |   |   |   |   |   |   |
| Cost of sales                                     |   | $                      | 107    |   |   | $ | 159 |   |   | $ | 191 |   |
| Selling and administrative expenses               |   |                   | 972    |   |   |   | 791 |   |   |   | 1,140 |   |
| Net research and development expenses             |   |                   | 299    |   |   |   | 345 |   |   |   | 365 |   |
| Total stock-based compensation costs for the year |   | $                      | 1,378  |   |   | $ | 1,295 |   |   | $ | 1,696 |   |

| 17 | Other Disclosures |
|----|-------------------|

| · | Canadian defined contribution pension plan |
|--------|--------------------------------------------|

| · | US defined contribution pension plan (401K plan) |
|--------|--------------------------------------------------|

----

Table of Contents

| 18 | Income Taxes |
|----|--------------|

|                                                                                              |   | Years ended August 31, |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                              |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                                                                              |   |                   |   |   |   |   |   |   |   |
| Income tax provision at combined Canadian federal and provincial statutory tax rate (27%)         |   | $                      | 4,499  |   |   | $ | 2,671 |   |   | $ | 1,226 |   |
|                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) due to:                                                                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Foreign income/loss taxed at different rates                                                      |   |                   | (1,025 | ) |   |   | 482 |   |   |   | (20 | ) |
| Non-taxable (income)/loss                                                                         |   |                   | 5      |   |   |   | 2,540 |   |   |   | (540 | ) |
| Non-deductible expenses                                                                           |   |                   | 411    |   |   |   | 664 |   |   |   | 1,011 |   |
| Foreign exchange effect of translation of foreign subsidiaries in the functional currency    |   |                   | 566    |   |   |   | (3,641 | ) |   |   | (547 | ) |
| Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses |   |                   | 3,702  |   |   |   | 2,556 |   |   |   | 3,013 |   |
| Other                                                                                             |   |                   | (394   | ) |   |   | (236 | ) |   |   | 143 |   |
| Income tax provision for the year                                                                 |   | $                      | 7,764  |   |   | $ | 5,036 |   |   | $ | 4,286 |   |
|                                                                                              |   | Years ended August 31, |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                              |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                                                                              |   |                   |   |   |   |   |   |   |   |
| The income tax provision consists of the following:                                               |   |                   |   |   |   |   |   |   |   |
|                                                                                              |   |                   |   |   |   |   |   |   |   |
| Current                                                                                           |   |                   |   |   |   |   |   |   |   |
| Current income taxes                                                                              |   | $                      | 6,186  |   |   | $ | 4,633 |   |   | $ | 3,588 |   |
|                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Deferred                                                                                          |   |                   |   |   |   |   |   |   |   |   |   |   |
| Deferred income taxes relating to the origination and reversal of temporary differences           |   |                   | (2,124 | ) |   |   | (2,153 | ) |   |   | (2,315 | ) |
|                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Unrecognized deferred income tax assets on temporary deductible differences and unused tax losses |   |                   | 3,702  |   |   |   | 2,556 |   |   |   | 3,013 |   |
|                                                                                              |   |                   | 1,578  |   |   |   | 403 |   |   |   | 698 |   |
| Income tax provision for the year                                                                 |   | $                      | 7,764  |   |   | $ | 5,036 |   |   | $ | 4,286 |   |

----

Table of Contents

|                                                     |   | As at August 31, |   |
|----------------------------------------------------------|--------|------------------|--------|
|                                                     |   | 2016             |   |   | 2015 |   |
|                                                     |   |             |   |   |   |   |
| Deferred income tax assets                               |   |             |   |   |   |   |
| Deferred income tax assets recoverable within 12 months  |   | $                | 4,224  |   |   | $ | 3,512 |   |
| Deferred income tax assets recoverable after 12 months   |   |             | 4,016  |   |   |   | 5,947 |   |
|                                                     |   |             | 8,240  |   |   |   | 9,459 |   |
|                                                     |   |             |   |   |   |   |   |   |
| Deferred income tax liabilities                          |   |             |   |   |   |   |   |   |
| Deferred income tax liabilities payable within 12 months |   |             | 645    |   |   |   | 398 |   |
| Deferred income tax liabilities payable after 12 months  |   |             | 2,212  |   |   |   | 1,126 |   |
|                                                     |   |             | 2,857  |   |   |   | 1,524 |   |
| Deferred income tax assets net                           |   | $                | 5,383  |   |   | $ | 7,935 |   |

|                                 |   | Balance as atSeptember 1, 2014 |    |   | Credited(charged) to thestatement of earnings |   |   | Credited(charged) toshareholders' equity |   |    | Foreigncurrencytranslation adjustment |   |    | Balance as atAugust 31, 2015 |   |
|--------------------------------------|--------|--------------------------------|---------|--------|-----------------------------------------------|--------|--------|------------------------------------------|--------|---------|---------------------------------------|--------|---------|------------------------------|--------|
|                                 |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |
| Deferred income tax assets           |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |
| Long-lived assets                    |   | $                              | 2,837   |   |                                          | $      | 468    |                                     |   | $       | ‒                               |   |    | $                            | (456   | ) |   | $ | 2,849 |   |
| Provisions and accruals              |   |                           | 4,335   |   |                                          |   | 422    |                                     |   |    | 905                                   |   |    |                         | (638   | ) |   |   | 5,024 |   |
| Deferred revenue                     |   |                           | 1,638   |   |                                          |   | (156   | )                                        |   | ‒ |                                  |   |    | (174                         | )      |   |   | 1,308 |   |
| Research and development expenses    |   |                           | 2,732   |   |                                          |   | (17    | )                                        |   | ‒ |                                  |   |    | (475                         | )      |   |   | 2,240 |   |
| Losses carried forward               |   |                           | 7,406   |   |                                          |   | (819   | )                                        |   | ‒ |                                  |   |    | (36                          | )      |   |   | 6,551 |   |
|                                 |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   |   |   |   |
| Deferred income tax liabilities      |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   |   |   |   |
| Long-lived assets                    |   |                           | (41     | )      |                                          |   | 41     |                                     |   | ‒ |                                  |   | ‒ |                         |   | ‒ |   |
| Research and development tax credits |   |                           | (11,781 | )      |                                          |   | (342   | )                                        |   | ‒ |                                  |   |    | 2,086                        |   |   |   | (10,037 | ) |
| Total                                |   | $                              | 7,126   |   |                                          | $      | (403   | )                                        |   | $       | 905                                   |   |    | $                            | 307    |   |   | $ | 7,935 |   |
|                                 |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   |   |   |   |
| Classified as follows:               |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   |   |   |   |
| Deferred income tax assets           |   | $                              | 10,213  |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   | $ | 9,459 |   |
| Deferred income tax liabilities      |   |                           | (3,087  | )      |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   |   | (1,524 | ) |
|                                 |   | $                              | 7,126   |   |                                          |   |   |                                     |   |    |                                  |   |    |                         |   |   |   | $ | 7,935 |   |

----

Table of Contents

|                                 |   | Balance as atSeptember 1, 2015 |    |   | Credited(charged) to thestatement of earnings |   |   | Credited(charged) toshareholders' equity |   |    | Foreigncurrencytranslation adjustment |   |   | Balance as atAugust 31, 2016 |   |
|--------------------------------------|--------|--------------------------------|---------|--------|-----------------------------------------------|--------|--------|------------------------------------------|--------|---------|---------------------------------------|--------|--------|------------------------------|--------|
|                                 |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |
| Deferred income tax assets           |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |
| Long-lived assets                    |   | $                              | 2,849   |   |                                          | $      | (595   | )                                        |   | $       | ‒                               |   |   | $                            | 1      |   |   | $ | 2,255 |   |
| Provisions and accruals              |   |                           | 5,024   |   |                                          |   | 177    |                                     |   |    | (935                                  | )      |   |                         | (20    | ) |   |   | 4,246 |   |
| Deferred revenue                     |   |                           | 1,308   |   |                                          |   | 1,015  |                                     |   | ‒ |                                  |   |   | 7                            |   |   |   | 2,330 |   |
| Research and development expenses    |   |                           | 2,240   |   |                                          |   | 112    |                                     |   | ‒ |                                  |   |   | 9                            |   |   |   | 2,361 |   |
| Losses carried forward               |   |                           | 6,551   |   |                                          |   | (1,951 | )                                        |   | ‒ |                                  |   |   | (2                           | )      |   |   | 4,598 |   |
|                                 |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   |   |   |   |
| Deferred income tax liabilities      |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   |   |   |   |
| Research and development tax credits |   |                           | (10,037 | )      |                                          |   | (336   | )                                        |   | ‒ |                                  |   |   | (34                          | )      |   |   | (10,407 | ) |
| Total                                |   | $                              | 7,935   |   |                                          | $      | (1,578 | )                                        |   | $       | (935                                  | )      |   | $                            | (39    | ) |   | $ | 5,383 |   |
|                                 |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   |   |   |   |
| Classified as follows:               |   |                           |    |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   |   |   |   |
| Deferred income tax assets           |   | $                              | 9,459   |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   | $ | 8,240 |   |
| Deferred income tax liabilities      |   |                           | (1,524  | )      |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   |   | (2,857 | ) |
|                                 |   | $                              | 7,935   |   |                                          |   |   |                                     |   |    |                                  |   |   |                         |   |   |   | $ | 5,383 |   |

|                              |   | As at August 31, |   |
|-----------------------------------|--------|------------------|--------|
|                              |   | 2016             |   |   | 2015 |   |
|                              |   |             |   |   |   |   |
| Temporary deductible differences  |   | $                | 1,676  |   |   | $ | 1,433 |   |
| Losses carried forward            |   |             | 38,287 |   |   |   | 34,693 |   |
| Research and development expenses |   | ‒          |   |   |   | 221 |   |
|                              |   | $                | 39,963 |   |   | $ | 36,347 |   |

----

Table of Contents

|           |   |    |   |   |          |   |
|----------------|--------|---------|--------|--------|---------------|--------|
| Year of expiry |   | Finland |   |   | United States |   |
|           |   |    |   |   |          |   |
| 2017           |   | $       | 3      |   |          | $      | ‒ |   |
| 2018           |   |    | 418    |   |          |   | 741 |   |
| 2019           |   | ‒ |   |   |          | 3,470  |   |
| 2020           |   |    | 7,387  |   |          |   | 7,991 |   |
| 2021           |   |    | 6,400  |   |          |   | 2,211 |   |
| 2022           |   |    | 11,097 |   |          |   | 7,435 |   |
| 2023           |   |    | 7,189  |   |          |   | 1,972 |   |
| 2024           |   |    | 5,550  |   |          |   | 1,351 |   |
| 2025           |   |    | 6,918  |   |          |   | 1,351 |   |
| 2026           |   |    | 237    |   |          |   | 1,351 |   |
| 2027           |   | ‒ |   |   |          | 1,351  |   |
| 2028           |   | ‒ |   |   |          | 2,447  |   |
| 2030           |   | ‒ |   |   |          | 2,713  |   |
| 2031           |   | ‒ |   |   |          | 109    |   |
| 2033           |   | ‒ |   |   |          | 4,681  |   |
| 2034           |   | ‒ |   |   |          | 4,851  |   |
| 2035           |   | ‒ |   |   |          | 2,616  |   |
| 2036           |   | ‒ |   |   |          | 8,528  |   |
|           |   | $       | 45,199 |   |          | $      | 55,169 |   |

| (1) | Undistributed profits of its foreign subsidiaries will not be distributed in the foreseeable future; and |
|-----|----------------------------------------------------------------------------------------------------------|

| (2) | Undistributed profits of its domestic subsidiaries will not be taxable when distributed. |
|-----|------------------------------------------------------------------------------------------|

----

Table of Contents

| 19 | Earnings per Share |
|----|--------------------|

|                                                                                                                                                                                                        |   | Years ended August 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                        |   | 2016                   |   |   | 2015 |   |   | 2014 |   |
|                                                                                                                                                                                                        |   |                   |   |   |   |   |   |   |   |
| Basic weighted average number of shares outstanding (000's)                                                                                                                                                 |   |                   | 53,863 |   |   |   | 56,804 |   |   |   | 60,329 |   |
| Plus dilutive effect of (000's):                                                                                                                                                                            |   |                   |   |   |   |   |   |   |   |   |   |   |
| Restricted share units                                                                                                                                                                                      |   |                   | 675    |   |   |   | 549 |   |   |   | 574 |   |
| Deferred share units                                                                                                                                                                                        |   |                   | 131    |   |   |   | 104 |   |   |   | 103 |   |
| Stock options                                                                                                                                                                                               |   | ‒                |   |   | ‒ |   |   |   | 9 |   |
| Diluted weighted average number of shares outstanding (000's)                                                                                                                                          |   |                   | 54,669 |   |   |   | 57,457 |   |   |   | 61,015 |   |
|                                                                                                                                                                                                        |   |                   |   |   |   |   |   |   |   |   |   |   |
| Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares (000's) |   |                   | 75     |   |   |   | 57 |   |   |   | 77 |   |

| 20 | Segment Information |
|----|---------------------|

|     |   | Years ended August 31, |    |
|----------|--------|------------------------|---------|
|     |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|     |   |                   |    |   |   |   |   |   |   |
| Products |   | $                      | 205,371 |   |   | $ | 193,427 |   |   | $ | 201,724 |   |
| Services |   |                   | 27,212  |   |   |   | 28,662 |   |   |   | 29,082 |   |
|     |   | $                      | 232,583 |   |   | $ | 222,089 |   |   | $ | 230,806 |   |

----

Table of Contents

|                           |   | Years ended August 31, |    |
|--------------------------------|--------|------------------------|---------|
|                           |   | 2016                   |    |   | 2015 |   |   | 2014 |   |
|                           |   |                   |    |   |   |   |   |   |   |
| United States                  |   | $                      | 95,388  |   |   | $ | 82,227 |   |   | $ | 83,172 |   |
| Canada                         |   |                   | 18,027  |   |   |   | 19,722 |   |   |   | 19,482 |   |
| Other                          |   |                   | 14,129  |   |   |   | 17,547 |   |   |   | 19,195 |   |
| Americas                       |   |                   | 127,544 |   |   |   | 119,496 |   |   |   | 121,849 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| United Kingdom                 |   |                   | 11,032  |   |   |   | 9,151 |   |   |   | 12,736 |   |
| Other                          |   |                   | 46,140  |   |   |   | 48,123 |   |   |   | 51,243 |   |
| Europe, Middle-East and Africa |   |                   | 57,172  |   |   |   | 57,274 |   |   |   | 63,979 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| China                          |   |                   | 25,281  |   |   |   | 21,526 |   |   |   | 22,468 |   |
| Other                          |   |                   | 22,586  |   |   |   | 23,793 |   |   |   | 22,510 |   |
| Asia-Pacific                   |   |                   | 47,867  |   |   |   | 45,319 |   |   |   | 44,978 |   |
|                           |   | $                      | 232,583 |   |   | $ | 222,089 |   |   | $ | 230,806 |   |
|          |   | As at August 31, 2016       |   |   | As at August 31, 2015 |   |
|---------------|--------|-----------------------------|--------|--------|-----------------------|--------|
|          |   |                        |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          |   | Property,plant andequipment |   |   | Intangibleassets      |   |   | Goodwill |   |   | Property,plant andequipment |   |   | Intangibleassets |   |   | Goodwill |   |
|          |   |                        |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Canada        |   | $                           | 27,048 |   |                  | $      | 1,330 |   |   | $ | – |   |   | $ | 27,174 |   |   | $ | 1,310 |   |   | $ | – |   |
| United States |   |                        | 1,174  |   |                  |   | 1,637 |   |   |   | 13,265 |   |   |   | 948 |   |   |   | 1,255 |   |   |   | 13,224 |   |
| Finland       |   |                        | 572    |   |                  |   | 354 |   |   |   | 8,663 |   |   |   | 295 |   |   |   | 1,433 |   |   |   | 8,636 |   |
| India         |   |                        | 3,602  |   |                  |   | 37 |   |   |   | – |   |   |   | 4,011 |   |   |   | 65 |   |   |   | – |   |
| China         |   |                        | 2,657  |   |                  |   | 33 |   |   |   | – |   |   |   | 2,500 |   |   |   | 30 |   |   |   | – |   |
| Other         |   |                        | 925    |   |                  |   | – |   |   |   | – |   |   |   | 767 |   |   |   | 3 |   |   |   | – |   |
|          |   | $                           | 35,978 |   |                  | $      | 3,391 |   |   | $ | 21,928 |   |   | $ | 35,695 |   |   | $ | 4,096 |   |   | $ | 21,860 |   |

| 21 | Subsequent Event |
|----|------------------|