Document:

Exhibit 4.5

   

  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2020

   

  As used in this management’s discussion and analysis (“MD&A”), unless the context
      indicates or requires otherwise, all references to the “Company”, “Lightspeed”, “we”, “us” or “our” refer to Lightspeed POS Inc. together with our subsidiaries, on a consolidated basis as constituted on June 30, 2020.

   

  This MD&A dated August 6, 2020, for the three months ended June 30, 2020, should be
      read in conjunction with the Company’s unaudited condensed interim consolidated financial statements and the notes related thereto for the three months ended June 30, 2020, as well as with our audited annual consolidated financial statements and the
      notes related thereto for the year ended March 31, 2020. The financial information presented in this MD&A is derived from the Company’s unaudited condensed interim consolidated financial statements for the three months ended June 30, 2020, which
      has been prepared in accordance with International Financial Reporting Standards (“IFRS”) applicable to the preparation of interim financial statements, including International Accounting Standard (IAS) 34, Interim Financial Reporting, as issued by
      the International Accounting Standards Board (“IASB”). All amounts are in U.S. dollars except where otherwise indicated.

   

  Forward-looking information

   

  This MD&A contains “forward-looking information” and “forward-looking statements”
      (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward looking information may relate to our financial outlook and anticipated events or results and may include information regarding our financial
      position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance,
      achievements, prospects or opportunities or the markets in which we operate and the impact of the COVID-19 pandemic declared by the World Health Organization on March 11, 2020 (the "COVID-19 Pandemic") thereon is forward-looking information.

   

  In some cases, forward-looking information can be identified by the use of forward-looking
      terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “does not
      anticipate”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be taken”, “occur” or “be achieved”, the negative of these terms and similar
      terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not
      historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.

   

  This forward-looking information includes, among other things, statements relating to:
      expectations regarding industry trends; our growth rates and growth strategies; addressable markets for our solutions; the achievement of advances in and expansion of our platforms; expectations regarding our revenue and the revenue generation
      potential of our payment-related and other solutions; our business plans and strategies; and our competitive position in our industry.

   

  This forward-looking information and other forward-looking information is based on our
      opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the
      circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of our ability
      to build our market share and enter new markets and industry verticals; our ability to retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in
      infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; the changes and trends in our industry or the global economy; and the
      changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management’s expectations.

   

  Forward-looking information is necessarily based on a number of opinions, estimates and
      assumptions that we considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance
      or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the “Summary of Factors Affecting our Performance” section of this MD&A and in
      the “Risk Factors” section of our Annual Information Form dated May 21, 2020, which is available under our profile on SEDAR at www.sedar.com.

   

  
     

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  If any of these risks or uncertainties materialize, or if the opinions, estimates or
      assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and
      described in greater detail in “Summary of Factors Affecting our Performance” should be considered carefully by prospective investors.

   

  Although we have attempted to identify important risk factors that could cause actual
      results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ
      materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No
      forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this MD&A represents
      our expectations as of the date of hereof (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking
      information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

   

  All of the forward-looking information contained in this MD&A is expressly qualified
        by the foregoing cautionary statements.

   

  This MD&A includes certain trademarks, such as “Lightspeed”, “Flame Design”, “Show
      & Tell”, “Lightspeed Cloud”, “Lightspeed Pro”, "Kounta", "Gastrofix" and "Pepperkorn", which are protected under applicable intellectual property laws and are our property. Solely for convenience, our trademarks and trade names referred to in
      this MD&A may appear without the ® or TM symbol, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and trade names.

   

  Additional information relating to Lightspeed, including our most recently completed Annual
      Information Form, can be found on SEDAR at www.sedar.com.

   

  COVID-19 Impacts and Opportunities

   

  On March 11, 2020, the World Health Organization declared COVID-19 a pandemic as a result
      of the rapidly spreading corona virus. Subsequently, all of the jurisdictions in which Lightspeed has significant operations imposed increasingly strict measures in an attempt to slow the transmission of the virus, including travel restrictions,
      self-isolation measures, mandatory closures of nonessential services and businesses, and physical distancing practices. These measures have significantly impacted our retail and hospitality customers, including their GTV, overall demand for our
      services, and anticipated churn rates due to business closures and temporary business shutdowns. It is also limiting their ability to obtain inventory or ingredients and supplies, to generate sales, and to make timely payments to us.

   

  There continues to be uncertainty regarding the duration and magnitude of the COVID-19
      Pandemic and the possibility of a resurgence, making it difficult to assess the future impact on our customer base, the end markets we serve and the resulting effect on our business and operations, both in the short term and in the long term.

   

  Despite the ongoing risks and uncertainties, we believe the impact of the COVID-19 Pandemic
      on the retail and restaurant industries has accelerated the need for our solutions as SMBs look to augment traditional in-person selling models with online and digital strategies. The majority of our market is currently served by legacy on-premise
      systems that are expensive, complicated and poorly equipped to help SMB’s adapt to this immediate need. This represents a significant opportunity for us to grow our customer base. For the period ended June 30 2020, we grew our customer base to over
      77,000 customer locations from 51,000 a year ago and 75,500 at the end of April 2020. We believe this growth, despite a challenging macro-economic environment, is an early indicator of this accelerated shift to our cloud-based solutions. Lightspeed
      believes it is well-positioned to capitalize on this opportunity and will continue to leverage its privileged position at the point of sale to also seize the Lightspeed Payments opportunity as well.

   

  Seizing on the Lightspeed Payments opportunity means monetizing a larger portion of our
      customers’ GTV, which for the three months ended June 30, 2020 was $5.4 billion up 17% from the $4.6 billion we processed during the same quarter in the prior fiscal year. While GTV declined in March and April 2020 at the outset of the COVID-19
      Pandemic, it showed growth overall in the three months ended June 30, 2020 owing to a strong recovery throughout the quarter as customers found success using our products. We further saw the GTV processed through our eCommerce platform increase by
      nearly 100% in the first quarter, as compared to the same quarter a year ago.

   

  
     

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  Overall, the temporary measures we implemented at the onset of the COVID-19 Pandemic to
      help our customers navigate the uncertainty they were facing, including making our eCommerce platform available for free and making Lightspeed Payments available at no-margin pricing to help our customers save money and streamline operations, helped
      contribute to a significant increase in the volumes processed by our payments processing products throughout the three months ended June 30, 2020. In addition to U.S. retail customers, we have now made Lightspeed Payments available to our Canadian
      retail customers and our U.S. hospitality customers. Despite these new markets being in early stages of rollout, we saw comparable attach rates from our U.S retail customers and when including new markets that were recently launched, the overall
      portion of customers contracting for Lightspeed Payments remained strong at over 50% during the quarter ended June 30, 2020. We continue to see strong demand from our existing base as well.

   

  The health and safety of our employees continues to be paramount during this time. We were
      quick to enforce a work from home policy for our employees around the globe at the onset of the COVID-19 Pandemic, having been well-suited to do so given the modern tools we use to run our business and the virtual customer engagement model we already
      had in place. Our employees continue to work from home, and have adapted to doing so with the tools we have in place to allow them to continue to contribute in a safe and physically distant environment.

   

  For the three months ended June 30, 2020, Lightspeed saw revenue top $36.2 million, an
      increase of 51% compared to the same quarter a year ago. The scale and diversity of Lightspeed's customer base and the pace of recovery in reopening markets has helped mitigate the impact of the COVID-19 Pandemic on us thus far.

   

  We are continuing to monitor the impact of COVID-19 on our business,
      financial condition and operations, as further discussed below. Refer to the section of this MD&A entitled "Summary of Factors Affecting Our Performance" and to the “Risk Factors” section of our most recent Annual Information Form, which can be
      found on SEDAR at www.sedar.com, for a discussion about the risks with which we are faced relating to the COVID-19 Pandemic, seasonality and business continuity.

   

  Overview

   

  Lightspeed provides easy-to-use, omni-channel commerce-enabling SaaS platforms. Our
      software platforms provide our customers with the critical functionality they need to engage with consumers, manage their operations, accept payments, and grow their business. We operate globally in over 100 countries, empowering single- and
      multi-location small and medium-sized businesses ("SMBs") to compete successfully in an omni-channel market environment by engaging with consumers across online, mobile, social, and physical channels. We believe that our platforms are essential to
      our customers’ ability to run and grow their businesses. As a result, most of our revenue is recurring and we have a strong track-record of growing revenue per customer over time.

   

  Our cloud platforms are designed around three interrelated elements: front-end consumer
      experience, back-end operations management to improve our customers’ efficiency and insight, and the facilitation of payments. Key functionalities of our platforms include full omni-channel capabilities, point of sale (“POS”), product and menu
      management, inventory management, analytics and reporting, multi-location connectivity, loyalty, customer management and financial services. Our position at the point of commerce puts us in a privileged position for payment processing and allows us
      to collect transaction-related data insights. Lightspeed Payments, our payments processing solution, is now available to a wider customer base. We believe that the broader rollout of Lightspeed Payments will further align us with our customers’
      success and represents a significant growth opportunity for our Company.

   

  We sell our platform primarily through our direct sales force in North America, Europe and
      Australia, supplemented by indirect channels in other countries around the world. Our platform is well-suited for various types of SMBs, particularly single and multi-location retailers with complex operations, such as those with a high product
      count, diverse inventory needs or a service component, golf course operators and hospitality customers ranging from quick service and festivals to hotels and fine dining establishments. On average, the customers we serve generate Gross Transaction
      Volume (as defined herein) of approximately

  $600,000 annually, which is reflective of the success of their businesses. Our customers
      generate monthly ARPU (as defined herein) of approximately $245 per customer ($160 on a customer location basis) as of the month of June 2020 and collectively represented over 77,000 Customer Locations in over 100 countries. For the three months
      ended June 30, 2020, our cloud-based SaaS platforms processed GTV of $5.4 billion, which represents growth of over 17% relative to GTV of $4.6 billion processed during the three months ended June 30, 2019.

   

  
     

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  We generate revenue primarily from the sale of cloud-based software subscription licenses
      and other recurring revenue sources including payments solutions for both retail and hospitality segments. We offer pricing plans designed to meet the needs of our current and prospective customers that enable Lightspeed solutions to scale with SMBs
      as they grow. Our subscription plans vary from monthly plans to one-year and multi-year terms, with the majority of our Customer Locations contracted for at least 12 months as of June 30, 2020. In addition, our software is integrated with certain
      third parties that enable electronic payment processing and as part of integrating with these payment processors, we have entered into revenue share agreements with each of them. In the last quarter of Fiscal 2019, we launched Lightspeed Payments,
      our in-house payment processing solution, which provides our customers with full visibility into the final steps of their sale process. Our latest pricing plans, which rolled out in the third quarter of Fiscal 2020, are designed to encourage adoption
      of Lightspeed Payments. With this change we have become more accommodating of monthly payment plans for our customers who also sign up for Lightspeed Payments. For the three months ended June 30, 2020, software and payments revenue accounted for 92%
      of our total revenues (89% for the three months ended June 30, 2019).

   

  In addition, we offer a variety of hardware and other services to provide value-added
      support to our merchants and supplement our software and payments revenue solutions. These revenues are generally one-time revenues associated with the sale of hardware with which our solutions integrate and the sale of professional services in
      support of the installation and implementation of our solutions. For the three months ended June 30, 2020, this revenue accounted for 8% of our total revenues (11% for the three months ended June 30, 2019).

   

  We believe we have a distinct leadership position in SMB commerce given our scale, breadth
      of capabilities, and diversity of customers. As a result, our business has grown significantly. Our total revenue has increased to $36.2 million for the three months ended June 30, 2020 from $24.1 million for the three months ended June 30, 2019,
      representing year-over-year growth of 51%. No customer represented more than 1% of our revenue for the three months ended June 30, 2020 or 2019.

   

  Our business is growing rapidly and we plan to continue making investments to drive future
      growth. We believe that our future success depends on a number of factors, including our ability to expand our customer base, add more solutions to our platform increase revenue from existing customers, and our ability to selectively pursue
      acquisitions. As of March 31, 2020, approximately 40% of our customers (excluding customers acquired through the iKentoo S.A. ("iKentoo"), Kounta Holdings Pty Ltd ("Kounta") and Gastrofix GmbH ("Gastrofix") acquisitions) are paying for more than one
      Lightspeed product, up from approximately 34% the year before. We view this as an important measure of our ability to grow our ARPU and drive further value to our customers, which in turn will improve retention rates. We believe that we have
      significant opportunity to continue to expand ARPU and the number of customers adopting more Lightspeed products over time and that our continued investments will increase our revenue base, improve the retention of this base and strengthen our
      ability to increase sales to our customers.

   

  We have not been profitable to date, and if we are unable to successfully implement our
      growth strategies, we may not be able to achieve profitability. For the three months ended June 30, 2020, we incurred an operating loss of $21.3 million compared to an operating loss of $10.2 million for the three months ended June 30, 2019. Our
      operating cash outflow for the three months ended June 30, 2020 was $7.4 million compared to $6.3 million for the three months ended June 30, 2019.

   

  Key Performance Indicators

   

  We monitor the following key performance indicators to help us
      evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. These key performance indicators are also used to provide investors with supplemental measures of our
      operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use industry
      metrics in the evaluation of issuers. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.

   

  Average Revenue Per User. “Average Revenue Per User” or
      “ARPU” represents the total software and payments revenue of the Company in the period divided by the number of unique customers, or by the number of Customer Locations, as the context dictates, of the Company in the period.

   

  Customer Locations. “Customer Location” means a billing
      customer location for which the term of services have not ended, or with which we are negotiating a renewal contract. A single unique customer can have multiple Customer Locations including physical and eCommerce sites. We believe that our ability to
      increase the number of Customer Locations served by our platforms is an indicator of our success in terms of market penetration and growth of our business. We have successfully demonstrated a history of growing both the number of our Customer
      Locations and GTV per Customer Location through the increased use of our platforms. As of June 30, 2020 and June 30, 2019, over 77,000 and over 51,000 Customer Locations, respectively, were utilizing our platforms.

   

  
     

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  Gross Transaction Volume. “Gross Transaction Volume” or
      “GTV” means the total dollar value of transactions processed through our cloud-based SaaS platforms in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We believe GTV is an indicator of the success of
      our Customer Locations and the strength of our platforms. GTV does not represent revenue earned by us. GTV for the three months ended June 30, 2020 was $5.4 billion up 17% from the $4.6 billion we processed during the same quarter in the prior fiscal
      year. While GTV declined in March and April 2020 at the outset of the COVID-19 Pandemic, it showed growth overall owing to strong June numbers as customers found success using our products.

   

  Non-IFRS Measures and Reconciliation of Non-IFRS Measures

   

  The information presented within this MD&A includes certain financial measures such as
      “Adjusted EBITDA.” These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures
      are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a
      substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not
      otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in
      order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

   

  Adjusted EBITDA

   

  Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and
      amortization, or EBITDA, as adjusted for stock-based compensation and related expenses, compensation expenses relating to acquisitions completed, foreign exchange gains and losses and transaction-related expenses. The following table reconciles net
      loss to Adjusted EBITDA for the periods indicated:

   

   

  	 	 	
          Three months ended

          June 30,

        	 
	(In thousands of US dollars)	 	 	2020		 	 	2019	
	 	 	 	$	 	 	 	$	 
	Net loss	 	 	(20,116	)	 	 	(9,097	)
	Stock-based compensation and related payroll taxes(1)	 	 	7,216	 	 	 	2,879	 
	Depreciation and amortization	 	 	5,644	 	 	 	1,816	 
	Foreign exchange loss (gain)(2)	 	 	480	 	 	 	(330	)
	Net interest (income) expense	 	 	301	 	 	 	(1,019	)
	Acquisition-related compensation(3)	 	 	5,129	 	 	 	707	 
	Transaction-related costs(4)	 	 	659	 	 	 	28	 
	Income tax expense (recovery)	 	 	(1,519	)	 	 	(132	)
	Adjusted EBITDA	 	 	(2,206	)	 	 	(5,148	)

   

  		(1)	These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards under our equity incentive plans to our employees and
            directors as well as related payroll taxes given that they are directly attributable to stock-based compensation, are estimates and therefore subject to change. For the three months ended June 30, 2020, the stock based compensation expense was
            $5,529 (June 2019 - $912) and the related payroll taxes were $1,687 (June 2019 - $1,967).

   

  		(2)	These non-cash losses (gains) relate to foreign exchange translation.

   

  		(3)	These costs represent a portion of the consideration paid to acquired businesses that is associated with the ongoing employment obligations for certain key employees of
            such acquired businesses.

   

  		(4)	These expenses relate to professional, legal, consulting, accounting and other fees relating to our initial public offering, our acquisitions, our secondary offering in
            August 2019 and our bought deal in February 2020 that would otherwise not have been incurred.

   

  
     

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  Outlook

   

  A discussion of management's expectations as to the Company's outlook for Fiscal 2021 is
      contained in the Company's press release dated August 6, 2020 under the heading ‘Financial Outlook’. The press release is available on www.sedar.com.

   

  Summary of Factors Affecting Our Performance

   

  We believe that the growth and future success of our business depends on many factors,
      including those described below. While each of these factors presents significant opportunities for our business, they also pose important challenges, some of which are discussed below and in the “Risk Factors” section of our most recent Annual
      Information Form, which can be found on SEDAR at www.sedar.com.

   

  Market adoption of our platforms

   

  We intend to continue to drive adoption of our commerce-enabling platforms by scaling our
      solutions to meet the needs of both new and existing customers of all types and sizes. We believe that there is significant potential to increase penetration of our total addressable market and attract new customers and that this potential has become
      even greater due to the COVID-19 Pandemic accelerating the need for SMB's to move away from legacy on-premise systems towards cloud-based omni-channel solutions. We plan to do this by further developing our products and services as well as continuing
      to invest in marketing strategies tailored to attract new businesses to our platforms, both in our existing geographies and new markets around the world. We also intend to selectively evaluate opportunities to offer our solutions to businesses
      operating in industry verticals that we do not currently serve. We plan to continue to invest in our platforms to expand our customer base and drive market adoption and our operating cash flows may fluctuate as we make these investments.

   

  Customer adoption of Lightspeed Payments

   

  In January 2019, we released our payment processing solution, Lightspeed Payments, to our
      U.S. retail customers, and we believe that Lightspeed Payments will become an increasingly important part of our business as we make it available to our broader customer base and across multiple geographies. Lightspeed Payments is designed to be
      transparent and easy to understand, and we have priced our solution at market competitive rates based on a percentage of GTV electronically processed through our platforms. As an increasing proportion of our revenue is generated from Lightspeed
      Payments, we believe that while our total revenues may grow significantly, our gross margins will decrease over time due to the lower gross margin profile of our payments revenue stream relative to the higher gross margin profile of our software
      subscription revenue stream. Lightspeed Payments is now rolled out across North America to our retail customer base and the U.S. for our hospitality customer base.

   

  Cross-selling and up-selling with existing customers

   

  Our existing customers represent a significant opportunity to cross-sell and up-sell
      products and services with limited incremental sales and marketing expense. We use a “land and expand” approach, with many of our customers initially deploying one of our platforms for a specific use case. Once they realize the benefits and wide
      functionality of our platforms, they can expand the number of use cases including services such as Lightspeed Loyalty, Lightspeed Analytics, Lightspeed Payments and Lightspeed Capital. We plan to continually invest in product development, and in
      sales and marketing, to add more solutions to our platforms and to increase the usage and awareness of our solutions. Our future revenue growth and our ability to achieve and maintain profitability is dependent upon our ability to maintain existing
      customer relationships and to continue to expand our customers’ use of our comprehensive suite of our solutions.

   

  Scaling our sales and marketing team

   

  Our ability to achieve significant growth in future revenue will largely depend upon the
      effectiveness of our sales and marketing efforts, both domestically and internationally. The majority of our sales and marketing efforts are accomplished in-house, and we believe the strength of our sales and marketing team is critical to our
      success. We have invested and intend to continue to invest meaningfully in terms of expanding our sales force, and consequently, we anticipate that our headcount will continue to increase as a result of these investments.

   

  International sales

   

  We believe that global demand for our platform will continue to increase as SMBs seek out
      end-to-end solutions with omni-channel capabilities to enable their businesses to thrive and succeed in an increasingly complex operating environment.

   

  
     

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  Accordingly, we believe there is a significant opportunity to grow our international
      business. We have invested, and plan to continue to invest, ahead of this potential demand in personnel and marketing, and to make selective acquisitions outside of North America to support our international growth.

   

  Seasonality

   

  We believe our transaction-based revenues will begin to represent an increasing proportion
      of our overall revenue mix over time as a result of the recent introduction of Lightspeed Payments, and we expect seasonality of our quarterly results to increase. While rapid growth in our subscription base and upsells to existing customers has
      largely mitigated seasonal trends in our revenues to date, we expect our transaction-based revenues will become increasingly correlated with respect to the GTV processed by our customers through our platforms.

   

  Foreign currency

   

  Our presentation and functional currency is the U.S. dollar. We derive the largest portion
      of our revenues in U.S. dollars and a smaller proportion of our expenses in U.S. dollars. Our head office and a significant portion of our employees are located in Montréal, Canada, along with additional presence in Europe and Australia, and as such,
      a significant amount of our expenses are incurred in Canadian dollars and Euros with a smaller proportion of expenses incurred in Australian dollars, GBP, and Swiss Francs. As a result, our results of operations will be adversely impacted by a
      decrease in the value of the U.S. dollar relative to these currencies but primarily the Canadian dollar and the Euro. See the “Risk Factors” section of our most recent Annual Information Form, which can be found on SEDAR at www.sedar.com, for a
      discussion on exchange rate fluctuations.

   

  Selective pursuit of acquisitions

   

  We complement our organic growth strategies by taking a targeted and opportunistic approach
      to acquisitions. We identify possible acquisition targets with a view to accelerating our product roadmap, increasing our market penetration and creating value for our shareholders. Throughout our history, we have accrued significant sales and
      marketing expertise, which we leverage to facilitate our continued global expansion both organically and in integrating the companies we acquire.

   

  Our over 77,000 Customer Locations as at June 30, 2020 are almost evenly balanced between
      North America and the rest of world. Additionally, these merchants are well balanced between retail and hospitality, representing approximately 55% and 45% of our total Customer Locations respectively. We believe that we remain well-positioned to
      continue to grow organically around the globe and to selectively pursue new acquisitions given our experience and scale. However, such acquisitions and investments could divert management’s attention, result in operating difficulties due to a lack of
      timely and proper integration, or otherwise disrupt our operations and adversely affect our business, operating results or financial position.

   

  COVID-19 Pandemic

   

  Although the Company has shown a 51% increase in revenue in the past quarter compared to
      the same quarter last year in spite of the challenging macro-economic environment, the future impact of the COVID-19 Pandemic on our future business, financial condition, and results of operations remains uncertain. The measures attempting to contain
      and mitigate the effects of the virus such as travel restrictions, self isolation measures, mandatory closures of non-essential services and businesses, physical distancing practices, and the resulting effect on the operations of and spending by SMBs
      as well as consumers have disrupted and will continue to disrupt our normal operations and impact our employees, vendors, partners, and our customers and their consumers. We have had to change some of our business practices in response to the
      pandemic and we may be required by government authorities to, or determine it appropriate to, take further actions. However, there is no certainty that such measures will be sufficient to mitigate the direct and indirect effects of the virus and its
      impact on our business, financial condition and results of operations going forward. Additionally, the impact of new solutions and initiatives we have launched or will launch in response to the COVID-19 Pandemic on our business, financial condition
      and results of operations is uncertain and we may be subject to additional risks in connection with such solutions and initiatives.

   

  Many of the measures attempting to contain and mitigate the effect of the COVID-19 virus
      were implemented in March 2020, and thus have impacted our results for the three months ended June 30, 2020. We are uncertain of the impact of these measures in subsequent quarters as some jurisdictions that were allowed to reopen businesses are
      again being mandated by governments to close doors due to rising numbers of COVID-19 cases. The degree to which COVID-19 will continue to affect our business, operating results and financial condition will depend on future developments that are
      highly uncertain and cannot currently be predicted, including the duration and magnitude of the COVID-19 Pandemic, actions taken to contain the virus, the impact of the COVID-19 Pandemic and related restrictions on economic activity and domestic and
      international trade, and the extent of the impact of these and other factors on our employees, partners and vendors and our customers and their consumers.

   

  
     

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  The current global crisis has impacted and continues to impact our retail and hospitality
      customers, including their GTV, overall demand for our services, and anticipated churn rates due to business closures and temporary business shutdowns. It is also limiting their ability to obtain inventory or ingredients and supplies, to generate
      sales, or to make timely payments to us. In the three months ended June 30, 2020, we engaged in several customer-focused initiatives, such as subscription discounts and deferred payment arrangements, aimed at supporting our customers during the
      COVID-19 Pandemic. These initiatives had a negative impact on revenue and cash flows. We intend to continue such customer-focused initiatives in the verticals and jurisdictions that continue to be significantly impacted by the COVID-19 Pandemic and
      we expect this to continue to have a negative impact on our business, financial condition and results of operations as long as social distancing measures persist.

   

  COVID-19 has also caused heightened uncertainty in the global economy. If economic growth
      slows further, consumers may not have the financial means to make purchases from our customers and may delay or reduce discretionary purchases, negatively impacting our customers (which are SMBs that are more susceptible than larger businesses to
      general economic conditions) and our results of operations. Uncertain and adverse economic conditions may also lead to increased refunds and chargebacks, which could adversely affect our business and may require us to recognize an impairment related
      to our assets in our financial statements. No such impairment has been recognized as at June 30, 2020 although we have taken a $1.3 million increase in our provision for uncollectible accounts in the three months ended June 30, 2020 due to the
      heightened risk of bankruptcies and business closures amongst our customers.

   

  The COVID-19 Pandemic and related restrictions may also disrupt or delay the ability of
      employees to work because they become sick or are required to care for those who become sick, cause delays or disruptions in services provided by our vendors, increase our vulnerability and that of our partners and service providers to security
      breaches, denial of service attacks or other hacking or phishing attacks, or cause other unpredictable events. Additionally, although we have attempted to identify the COVID-19-related risks faced by our business, the uncertainty and lack of
      predictability around the COVID-19 Pandemic means there may be other risks not presently known to us or that we presently believe are not material that could also affect our business, financial condition and results of operations.

   

  We cannot currently estimate the overall severity, extent or duration of any resulting
      adverse impact on our business, financial condition or results of operations from COVID-19, though the impact may be material. A material adverse effect on our employees, customers, vendors, partners and/or other stakeholders could have a material
      adverse effect on us.

   

  Key Components of Results of Operations

   

  Revenues

   

  Software and payments revenue

   

  We principally generate subscription-based revenue through the sale of subscription
      licenses to our retail and hospitality software solutions and transaction-based revenue. We offer pricing plans designed to meet the needs of our current and prospective customers that enable Lightspeed solutions to scale with SMBs as they grow. Our
      subscription plans are sold as monthly, one-year or multi-year plans, with the majority of our Customer Locations contracted for at least 12 months as of June 30, 2020. Where customers elect to pay their full contract upfront, a deferred revenue
      balance is created on our balance sheet. Subscription plans

  for our cloud-based solutions include maintenance and support. Customers purchase
      subscription plans directly from us or through our channel partners.

   

  We also generate transaction-based revenues by providing our customers with the
      functionality to accept payments from consumers. Such revenues come in the form of payment processing fees and transaction fees and represent a percentage of GTV processed by our customers through our offered solutions. We have two sources of
      transaction-based revenues: our proprietary payments processing solution, Lightspeed Payments, and revenue sharing agreements with our integrated payment partners.

   

  
     

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  Lightspeed Payments allows our customers to accept electronic payments in-store, through
      connected terminals and online. Lightspeed Payments is now rolled out across North America to our retail customer base and the U.S. for our hospitality customer base. We expect it will become an increasingly important part of our business as it is
      made available to our broader customer base. Offering a fully integrated payment functionality is highly complementary to the platforms we offer our customers today and will allow us to monetize a greater portion of the over $23.1 billion in GTV,
      which represents approximately 48% growth in total GTV processed on our cloud-based SaaS platforms over the last 12 months.

   

  We have begun to transition the small group of customers on our legacy on-premise retail
      solution to our cloud platform, as we will no longer provide support to our legacy platform as of March 31, 2021.

   

  In addition, we generate revenues through referral fees and revenue sharing agreements from
      our partners to whom we direct business or who sell their applications through our apps and themes marketplace. Pursuant to the terms of our agreements with these partners, these revenues can be recurring or non-recurring.

   

  Hardware and other revenues

   

  These revenues are generally one-time revenues associated with the sale of hardware with
      which our solutions integrate and the sale of professional services in support of the installation and implementation of our solutions. We generate revenues through the sale of POS peripheral hardware such as our customer facing display, receipt
      printers, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories.

   

  Although our software solutions are intended to be turnkey solutions that can be used by
      the customer as delivered, we provide professional services to our hospitality customers in some circumstances in the form of on site installations and implementations. These implementation services are typically delivered through our internal
      integrations team or through a network of certified partners. Additionally, from time to time we earn one-time fees for integration work performed pursuant to certain strategic partnerships.

   

  Direct Cost of Revenues

   

  Cost of software and payments revenue

   

  Cost of software and payments revenue primarily includes employee expenses for the support
      team, direct costs related to our Lightspeed Payments business and costs associated with hosting infrastructure for our services. Significant expenses include costs of our support and onboarding department including total salaries and benefits, stock
      based compensation and related expenses, data center capacity costs and other third party direct costs such as cloud infrastructure, customer support and royalties. We expect that cost of software and payments revenue will increase on an absolute
      dollar basis and as a percentage of total revenues due to the lower gross margin profile of Lightspeed Payments relative to the higher gross margin profile of our software subscription revenue stream.

   

  Cost of hardware and other revenue

   

  Cost of these revenues primarily includes costs associated with our
      hardware solutions, such as the cost of acquiring the hardware inventory, including hardware purchase price, expenses associated with a third-party fulfillment company, shipping and handling and inventory adjustments, as well as expenses related to
      costs of implementation services provided to customers.

   

  Operating Expenses

   

  General and administrative

   

  General and administrative expenses comprise employee expenses, including stock-based
      compensation and related expenses, for finance, accounting, legal, administrative, human resources, information technology as well as payment operations. These costs also include other professional fees, transaction-related fees related to our
      acquisitions, costs associated with internal systems and general corporate expenses. We expect that general and administrative expenses will increase on an absolute dollar basis as we incur the costs of compliance associated with being a public
      company and costs incurred through M&A activity, including increased accounting and legal expenses. In the longer term, however, we expect general and administrative expenses to decrease as a percentage of total revenues as we focus on processes,
      systems and controls to enable our internal support functions to scale with the growth of our business.

   

  
     

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  Research and development

   

  Research and development expenses consist primarily of employee expenses, including
      stock-based compensation and related expenses, for product-related expenses including product management, core development, data, product design and development and other corporate overhead allocations. We continue to invest our research and
      development efforts on developing added features and solutions, as well as increasing the functionality and enhancing the ease of use of our platforms. Historically, these expenses have been reduced primarily by the Canadian Federal Scientific
      Research and Experimental Development Program and Tax Credit for the Development of e-business, or “SR&ED” and “e-business” tax credits respectively. As a public company, we are no longer eligible for federal refundable SR&ED tax credits,
      while e-business tax credits remain available. However, we remain eligible for non-refundable SR&ED credits under this program, which are eligible to reduce future income taxes payable. Given the Company’s recent losses in Canada, these credits
      have not been recognized. Upon recognition, they will reduce research and development expenses. Although not immediately, given that we are still scaling our technology group in line with anticipated growth, we expect research and development
      expenses to decline in proportion to total revenue as we achieve additional economies of scale from our expansion.

   

  Sales and marketing

   

  Sales and marketing expenses consist primarily of selling and marketing costs and employee
      expenses, including stock-based compensation and related expenses, for sales and business development, marketing as well as a small portion of onboarding for new customers. Other costs within sales and marketing include costs of acquisition of new
      customers, travel-related expenses and corporate overhead allocations. We plan to continue to expand sales and marketing efforts to attract new customers, retain existing customers and increase revenues from both new and existing customers. Over
      time, we expect sales and marketing expenses will decline as a percentage of total revenues as we achieve additional economies of scale from our expansion.

   

  Acquisition-related compensation

   

  Acquisition-related compensation expenses represent the portion of the purchase price from
      acquisitions which is payable contingent upon certain milestones as well as ongoing employment obligations of certain key employees of the acquired businesses. This portion of the cost is amortized over the related service period for those key
      employees.

   

  
     

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  Results of Operations

   

  The following table outlines our consolidated statements of loss for the three months ended
      June 30, 2020 and 2019: 

   

  	 	 	
          Three months ended

          June 30,

        	 
	
          (In thousands of US dollars,

          except per share data)

        	 	 	2020	 	 	 	2019	 
	 	 	 	$	 	 	 	$	 
	Revenues	 	 	 	 	 	 	 	 
	Software and payments	 	 	33,406	 	 	 	21,334	 
	Hardware and other	 	 	2,823	 	 	 	2,731	 
	 	 	 	36,229	 	 	 	24,065	 
	Direct cost of revenues	 	 	 	 	 	 	 	 
	Software and payments	 	 	12,070	 	 	 	5,967	 
	Hardware and other	 	 	2,545	 	 	 	2,553	 
	 	 	 	14,615	 	 	 	8,520	 
	Gross profit	 	 	21,614	 	 	 	15,545	 
	Operating expenses	 	 	 	 	 	 	 	 
	General and administrative	 	 	6,771	 	 	 	3,790	 
	Research and development	 	 	9,824	 	 	 	6,521	 
	Sales and marketing	 	 	15,100	 	 	 	13,289	 
	Depreciation of property and equipment	 	 	412	 	 	 	390	 
	Depreciation of right-of-use assets	 	 	827	 	 	 	414	 
	Foreign exchange loss (gain)	 	 	480	 	 	 	(330	)
	Acquisition-related compensation	 	 	5,129	 	 	 	707	 
	Amortization of intangible assets	 	 	4,405	 	 	 	1,012	 
	Total operating expenses	 	 	42,948	 	 	 	25,793	 
	 	 	 	 	 	 	 	 	 
	Operating loss	 	 	(21,334	)	 	 	(10,248	)
	Net interest income (expense)	 	 	(301	)	 	 	1,019	 
	Loss before income taxes	 	 	(21,635	)	 	 	(9,229	)
	Income tax expense (recovery)	 	 	 	 	 	 	 	 
	Current	 	 	55	 	 	 	20	 
	Deferred	 	 	(1,574	)	 	 	(152	)
	Total income tax recovery	 	 	(1,519	)	 	 	(132	)
	Net loss	 	 	(20,116	)	 	 	(9,097	)
	Net loss per share – basic and diluted	 	 	(0.22	)	 	 	(0.11	)

   

   

  
     

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  The following table outlines stock-based compensation and the related payroll taxes
      associated with these expenses included in the results of operations for the three months ended June 30, 2020 and 2019:

    

  	 	 	
          Three months ended

          June 30,

        	 
	(In thousands of US dollars)	 	 	2020		 	 	2019	
	 	 	 	$	 	 	 	$	 
	Direct cost of revenues	 	 	615	 	 	 	240	 
	General and administrative	 	 	1,842	 	 	 	962	 
	Research and development	 	 	2,251	 	 	 	577	 
	Sales and marketing	 	 	2,508	 	 	 	1,100	 
	 Total stock-based compensation and related costs	 	 	7,216	 	 	 	2,879	 

   

  For the three months ended June 30, 2020, the stock based compensation expense was $5,529
      (June 30, 2019 - $912) and the related payroll taxes were $1,687 (June 30, 2019 - $1,967).

   

  Results of Operations for the Three Months Ended June 30, 2020 and 2019

   

  Revenues

    

  	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	(In thousands of US dollars,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	except percentages)	 	 	2020	 	 	 	2019	 	 	 	Change	 	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Software and payments	 	 	33,406	 	 	 	21,334	 	 	 	12,072	 	 	 	56.6	 
	Hardware and other	 	 	2,823	 	 	 	2,731	 	 	 	92	 	 	 	3.4	 
	Total revenues	 	 	36,229	 	 	 	24,065	 	 	 	12,164	 	 	 	50.5	 
	Percentage of total revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Software and payments	 	 	92.2	%	 	 	88.7	%	 	 	 	 	 	 	 	 
	Hardware and other	 	 	7.8	%	 	 	11.3	%	 	 	 	 	 	 	 	 
	Total	 	 	100	%	 	 	100	%	 	 	 	 	 	 	 	 

   

  Software and Payments Revenue

   

  Software and payments revenue for the three months ended June 30, 2020 increased by $12.1
      million or 57% as compared to the three months ended June 30, 2019. The increase was primarily due to growth in our subscription customer base including customers from the acquisition of iKentoo, Kounta and Gastrofix, which combined accounted for
      $4.8 million of software and payments revenue for the three months ended June 30, 2020. Also contributing to the increase were higher payments revenue from continued adoption of Lightspeed Payments and payment referral fees earned through our
      partners. GTV processed through our platforms grew from $4.6 billion for the three months ended June 30, 2019 to $5.4 billion for the three months ended June 30, 2020. Customers adopting additional modules of our platforms also contributed to the
      increase in subscription license revenue. Partially offsetting these areas of growth was higher churn due to increased business failure in our customer base and software and payments pricing concessions made by the Company to help customers navigate
      the challenges brought on by the COVID-19 Pandemic. 

   

  Hardware & Other Revenue

   

  Hardware and other revenue for the three months ended June 30, 2020 increased by $0.1
      million or 3% as compared to the three months ended June 30, 2019. Hardware and other revenue's marginal increase was due primarily to discounts and incentives provided as well as the impact of the COVID-19 Pandemic on the customer acquisition in the
      three months ended June 30, 2020. This was offset by increased hardware and other revenue customer due to acquisitions made during Fiscal 2020.

   

   

  
     

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  Direct Cost of Revenues 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Direct cost of revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Software and payments	 	 	12,070	 	 	 	5,967	 	 	 	6,103	 	 	 	102.3	 
	Hardware and other	 	 	2,545	 	 	 	2,553	 	 	 	(8	)	 	 	(0.3	)
	Total costs of revenues	 	 	14,615	 	 	 	8,520	 	 	 	6,095	 	 	 	71.5	 
	Percentage of revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Software and payments	 	 	36.1	%	 	 	28.0	%	 	 	 	 	 	 	 	 
	Hardware and other	 	 	90.2	%	 	 	93.5	%	 	 	 	 	 	 	 	 
	Total	 	 	40.3	%	 	 	35.4	%	 	 	 	 	 	 	 	 

   

   

  Direct Cost of Software and Payments Revenue

   

  Direct cost of software and payments revenue for the three months ended June 30, 2020
      increased by $6.1 million or 102% as compared to the three months ended June 30, 2019. The increase was primarily due to increased costs associated with supporting a greater number of Customer Locations utilizing our platforms, as well as an increase
      in our Lightspeed Payments customers which carry higher direct costs than our subscription business. Overall, direct cost of software and payments revenue as a percentage of revenue increased from 28% to 36% for the three months ended June 30, 2020
      compared to the three months ended June 30, 2019.

   

  Direct Cost of Hardware and Other Revenue

   

  Direct cost of hardware and other revenue for the three months ended June 30, 2020
      decreased from 93.5% to 90.2% as compared to the three months ended June 30, 2019.

   

  Gross Profit

   

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Gross profit	 	 	21,614	 	 	 	15,545	 	 	 	6,069	 	 	 	39.0	 
	Percentage of total revenues	 	 	59.7	%	 	 	64.6	%	 	 	 	 	 	 	 	 

   

  Gross profit for the three months ended June 30, 2020 increased by $6.1 million or 39%
      compared to the three months ended June 30, 2019. The increase was primarily due to growth in our software and payments revenue as a result of increased Customer Locations using our platforms and increased GTV processed through our platforms. A
      higher mix of Lightspeed Payments revenue in the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 reduced gross profit as a percentage of revenue.

   

  
     

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  Operating Expenses

   

  General and Administrative  

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	General and administrative	 	 	6,771	 	 	 	3,790	 	 	 	2,981	 	 	 	78.7	 
	Percentage of total revenues	 	 	18.7	%	 	 	15.7	%	 	 	 	 	 	 	 	 

  

   

  General and administrative expenses for the three months ended June 30, 2020 increased by
      $3.0 million compared to the three months ended June 30, 2019. Included in general and administrative expense for the three months ended June 30, 2020 is $1.8 million of stock-based compensation expense and related payroll taxes compared to $1.0
      million for the three months ended June 30, 2019. The overall increase was primarily due to growth in our headcount and higher salary costs of $2.8 million which includes incremental employee costs of $0.7 million from the acquisitions of iKentoo,
      Kounta and Gastrofix and an increase of $0.9 million of stock-based compensation expense and related payroll taxes, $0.4 million related to an increase in transaction-related expenses, and $0.9 million from higher bad debt expense, offset by $1.1
      million received in respect of remuneration of eligible employees pursuant to government-sponsored COVID-19 wage subsidy programs globally. As a result of the above, our general and administrative expenses as a percentage of revenue increased to 19%
      from 16% between the three months ended June 30, 2020 and the three months ended June 30, 2019.

    

  Research and Development 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Research and development	 	 	9,824	 	 	 	6,521	 	 	 	3,303	 	 	 	50.7	 
	Percentage of total revenues	 	 	27.1	%	 	 	27.1	%	 	 	 	 	 	 	 	 

   

  Research and development expenses for the three months ended June 30, 2020 increased by
      $3.3 million or 51% compared to the three months ended June 30, 2019. Included in research and development expense for the three months ended June 30, 2020 is $2.3 million of stock-based compensation expense and related payroll taxes compared to $0.6
      million for the three months ended June 30, 2019. The overall increase was due primarily to additional salary and other employee costs resulting from increased headcount in our research and development teams of $5.1 million, which includes
      incremental employee costs of $2.3 million from the acquisitions of iKentoo, Kounta and Gastrofix and an increase of $1.7 million of stock-based compensation expense and related payroll taxes, offset by $2.0 million received in respect of
      remuneration of eligible employees pursuant to government-sponsored COVID-19 wage subsidy programs globally. Our research and development costs as a percentage of revenue remained consistent at 27% from the three months ended June 30, 2019 to the
      three months ended June 30, 2020.

   

  Sales and Marketing 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Sales and marketing	 	 	15,100	 	 	 	13,289	 	 	 	1,811	 	 	 	13.6	 
	Percentage of total revenues	 	 	41.7	%	 	 	55.2	%	 	 	 	 	 	 	 	 

   

   

  
     

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  Sales and marketing expenses for the three months ended June 30, 2020 increased by $1.8
      million or 14% as compared to the three months ended June 30, 2019. Included in sales and marketing expense for the three months ended June 30, 2020 is $2.5 million of stock-based compensation expense and related payroll taxes compared to $1.1
      million for the three months ended June 30, 2019. The overall increase was due primarily to additional salary and other employee costs resulting from increased headcount in our sales and marketing teams of $4.6 million, which includes incremental
      employee costs of $2.6 million from the acquisitions of iKentoo, Kounta and Gastrofix and an increase of $1.4 million of stock-based compensation expense and related payroll taxes, offset by $1.9 million received in respect of remuneration of
      eligible employees pursuant to government-sponsored COVID-19 wage subsidy programs globally, and a decrease in marketing spend of $0.9 million. Given that revenue growth was 51% for the three month period, sales and marketing costs as a percentage of
      revenue decreased from 55% to 42% from the three months ended June 30, 2019 to the three months ended June 30, 2020.

   

  Depreciation 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Depreciation of property and equipment	 	 	412	 	 	 	390	 	 	 	22	 	 	 	5.6	 
	Depreciation of right-of-use assets	 	 	827	 	 	 	414	 	 	 	413	 	 	 	100	 
	 	 	 	1,239	 	 	 	804	 	 	 	435	 	 	 	54.1	 
	Percentage of total revenues	 	 	3.4	%	 	 	3.3	%	 	 	 	 	 	 	 	 

   

  Depreciation of property and equipment expenses for the three months ended June 30, 2020 increased by 6% as
      compared to the three months ended June 30, 2019. The increase in the depreciation expense results from additions to property and equipment made throughout the prior fiscal year as well as in the three months ended June 30, 2020. The depreciation of
      right-of-use assets represents the depreciation of leases that were capitalized as a result of the adoption of IFRS 16. The increase in the depreciation of right-of-use assets is the result of new lease space signed in Fiscal 2020, the full impact of
      which is included in the three months ended June 30, 2020.

   

  Foreign Exchange Loss (Gain)

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Foreign exchange loss (gain)	 	 	480	 	 	 	(330	)	 	 	810	 	 	 	(245.5	)
	Percentage of total revenues	 	 	1.3	%	 	 	(1.4	)%	 	 	 	 	 	 	 	 

   

  Foreign exchange loss for the three months ended June 30, 2020 decreased to $0.5 million as
      compared to a foreign exchange gain of $0.3 million for the three months ended June 30, 2019. This was due to the strengthening of currencies, primarily the Canadian dollar, against the US dollar given that we have significant liabilities outstanding
      in currencies other than the US dollar, our functional currency. Items included in our results are measured in US dollars and foreign currency transactions are translated into US dollars using the exchange rates prevailing at the date of the
      transactions or when items are re-measured with resulting gains and losses subsequently recognized.

   

  Acquisition-related Compensation 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Acquisition-related compensation	 	 	5,129	 	 	 	707	 	 	 	4,422	 	 	 	625.5	 
	Percentage of total revenues	 	 	14.2	%	 	 	2.9	%	 	 	 	 	 	 	 	 

   

  
     

    (15)

    
      
 

  

   

  Acquisition related compensation expenses for the three months ended June 30, 2020
      increased by $4.4 million compared to the three months ended June 30, 2019. The increase was due to our acquisitions of iKentoo in July 2019, Kounta in November 2019 and Gastrofix in January 2020. We issued contingent consideration with the majority
      being tied to ongoing employment obligations in connection with these acquisitions. This contingent consideration was not included in the total purchase consideration, but rather was treated as an acquisition-related compensation expense for
      post-combination services.

   

  Amortization of Intangible Assets 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Amortization of intangible assets	 	 	4,405	 	 	 	1,012	 	 	 	3,393	 	 	 	335.3	 
	Percentage of total revenues	 	 	12.2	%	 	 	4.2	%	 	 	 	 	 	 	 	 

   

  Amortization of intangible assets for the three months ended June 30, 2020 increased by
      $3.4 million as compared to the three months ended June 30, 2019. The increase in amortization relates to intangibles acquired through the iKentoo, Kounta and Gastrofix acquisitions.

   

  Other Income (Expenses) 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Net interest income (expense)	 	 	(301	)	 	 	1,019	 	 	 	(1,320	)	 	 	(130	)
	Percentage of total revenues	 	 	(0.8	)%	 	 	4.2	%	 	 	 	 	 	 	 	 

    

  Interest expense relates to the interest arising from the loan draw-down made in connection
      with the acquisition of Gastrofix in January 2020, as well as interest expense on both the lease liabilities and acquisition-related compensation which combined totals $0.7 million of interest expense for the three months ended June 30, 2020, offset
      by interest income earned in the period on cash and cash equivalents of $0.4 million.

   

  Income Taxes 

  	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
          Three months ended

          June 30,

        	 	 	 	 	 	 	 
	
          (In thousands of US dollars,

          except percentages) 

        	 	
          2020

        	 	 	2019	 	 	Change	 	 	Change	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	%	 
	Income tax expense (recovery)	 	 	 	 	 	 	 	 	 	 	 	 
	Current	 	 	55	 	 	 	20	 	 	 	35	 	 	 	175	 
	Deferred	 	 	(1,574	)	 	 	(152	)	 	 	(1,422	)	 	 	935.5	 
	Total income tax recovery	 	 	(1,519	)	 	 	(132	)	 	 	(1,387	)	 	 	1,050.8	 
	Percentage of total revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current	 	 	0.2	%	 	 	0.1	%	 	 	 	 	 	 	 	 
	Deferred	 	 	(4.3	)%	 	 	(0.6	)%	 	 	 	 	 	 	 	 
	Total	 	 	(4.1	)%	 	 	(0.5	)%	 	 	 	 	 	 	 	 

   

   

  
     

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  Deferred income tax recovery for the three months ended June 30, 2020 increased by $1.4
      million as compared to the three months ended June 30, 2019. The increase in the recovery was primarily due to the amortization of acquired intangible assets during the period.

   

  Key Balance Sheet Information

  	
          (In thousands of US dollars) 

        	 	
          June 30,

          2020

        	 	 	
          March 31,

          2020

        	 
	 	 	 	$	 	 	 	$	 
	Cash and cash equivalents	 	 	203,521	 	 	 	210,969	 
	Total assets	 	 	470,762	 	 	 	478,428	 
	Total liabilities	 	 	129,113	 	 	 	134,290	 
	Total long-term liabilities	 	 	61,309	 	 	 	63,481	 

   

  See “Results of Operations” in this MD&A for a more detailed discussion of the
      year-over-year changes in revenues and net loss.

   

  Total Assets

   

  June 30, 2020 Compared to March 31, 2020

   

  Total assets decreased by $7.7 million or 2% from March 31, 2020 to June 30, 2020 with cash
      accounting for $7.4 million of the decrease, trade and other receivables accounting for $0.6 million of the decrease, intangibles and fixed assets accounting for $2.4 million of the decrease, lease right-of-use assets accounting for $0.6 million of
      the decrease, inventory and other current assets accounting of $1.2 million of the decrease, offset by an increase of $4.7 million in goodwill. The increase in goodwill results from a foreign exchange revaluation arising from entities whose
      functional currency is not the US dollar.

   

  Total Liabilities

   

  June 30, 2020 Compared to March 31, 2020

   

  Total long-term liabilities decreased by $2.2 million from March 31, 2020 to June 30, 2020.
      The main drivers of this amount were a decrease of $1.4 million in deferred revenue due to the shorter contract durations, and a decrease of $1.3 million in deferred tax liabilities primarily due to the amortization of acquired intangible assets
      during the period. This was offset by an increase in other long-term liabilities of $0.5 million.

   

  Total current liabilities decreased by $3.0 million from March 31, 2020 to June 30, 2020.
      The main drivers of the decrease were a decrease in deferred revenue of $3.7 million offset by a $0.5 million increase in accounts payable and accrued liabilities and a $0.2 million increase in lease liabilities.

   

  
     

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  Quarterly Results of Operations

   

  The following table sets forth selected unaudited quarterly statements of operations data
      for each of the eight quarters ended June 30, 2020 in accordance with IFRS. This data should be read in conjunction with our audited annual consolidated financial statements and the notes related thereto. These quarterly operating results are not
      necessarily indicative of our operating results for a full year or any future period. 

  

   

  	 	 	Three months ended	 
	
          (In thousands of US dollars,

          except per share data)

        	 	
          Sep. 30,

          2018

        	 	 	
          Dec. 31,

          2018

        	 	 	
          Mar. 31,

          2019

        	 	 	
          Jun. 30,

          2019

        	 	 	
          Sept. 30,

          2019

        	 	 	
          Dec. 31,

          2019

        	 	 	
          Mar. 31,

          2020

        	 	 	
          Jun. 30,

          2020

        	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Revenues	 	 	18,598	 	 	 	20,097	 	 	 	21,285	 	 	 	24,065	 	 	 	28,026	 	 	 	32,275	 	 	 	36,271	 	 	 	36,229	 
	Direct cost of revenues	 	 	5,345	 	 	 	6,061	 	 	 	7,066	 	 	 	8,520	 	 	 	9,689	 	 	 	11,926	 	 	 	13,799	 	 	 	14,615	 
	Gross profit	 	 	13,253	 	 	 	14,036	 	 	 	14,219	 	 	 	15,545	 	 	 	18,337	 	 	 	20,349	 	 	 	22,472	 	 	 	21,614	 
	operating expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	General and administrative	 	 	2,552	 	 	 	3,079	 	 	 	4,378	 	 	 	3,790	 	 	 	4,882	 	 	 	6,403	 	 	 	6,580	 	 	 	6,771	 
	Research and development	 	 	4,149	 	 	 	5,133	 	 	 	5,222	 	 	 	6,521	 	 	 	7,561	 	 	 	8,350	 	 	 	10,366	 	 	 	9,824	 
	Sales and marketing	 	 	9,178	 	 	 	10,136	 	 	 	11,525	 	 	 	13,289	 	 	 	12,316	 	 	 	15,354	 	 	 	15,539	 	 	 	15,100	 
	Depreciation of property and equipment	 	 	324	 	 	 	378	 	 	 	415	 	 	 	390	 	 	 	423	 	 	 	386	 	 	 	550	 	 	 	412	 
	Depreciation of right-of-use assets	 	 	—	 	 	 	—	 	 	 	—	 	 	 	414	 	 	 	609	 	 	 	648	 	 	 	821	 	 	 	827	 
	Foreign exchange loss (gain)	 	 	(9	)	 	 	240	 	 	 	637	 	 	 	(330	)	 	 	(80	)	 	 	315	 	 	 	(300	)	 	 	480	 
	Acquisition-related compensation	 	 	108	 	 	 	158	 	 	 	188	 	 	 	707	 	 	 	2,055	 	 	 	3,187	 	 	 	5,138	 	 	 	5,129	 
	Amortization of intangible assets	 	 	875	 	 	 	644	 	 	 	649	 	 	 	1,012	 	 	 	1,800	 	 	 	2,154	 	 	 	4,260	 	 	 	4,405	 
	Total operating expenses	 	 	17,177	 	 	 	19,768	 	 	 	23,014	 	 	 	25,793	 	 	 	29,566	 	 	 	36,797	 	 	 	42,954	 	 	 	42,948	 
	Operating loss	 	 	(3,924	)	 	 	(5,732	)	 	 	(8,795	)	 	 	(10,248	)	 	 	(11,229	)	 	 	(16,448	)	 	 	(20,482	)	 	 	(21,334	)
	Fair value loss on Redeemable Preferred Shares	 	 	(3,643	)	 	 	(52,489	)	 	 	(132,135	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Net interest income (expense)	 	 	33	 	 	 	9	 	 	 	81	 	 	 	1,019	 	 	 	690	 	 	 	283	 	 	 	(226	)	 	 	(301	)
	Loss before income taxes	 	 	(7,534	)	 	 	(58,212	)	 	 	(140,849	)	 	 	(9,229	)	 	 	(10,539	)	 	 	(16,165	)	 	 	(20,708	)	 	 	(21,635	)
	Income tax expense (recovery)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current	 	 	—	 	 	 	—	 	 	 	64	 	 	 	20	 	 	 	19	 	 	 	56	 	 	 	(46	)	 	 	55	 
	Deferred	 	 	662	 	 	 	12,916	 	 	 	(44,837	)	 	 	(152	)	 	 	(483	)	 	 	(459	)	 	 	(2,065	)	 	 	(1,574	)
	Total income tax expense (recovery)	 	 	662	 	 	 	12,916	 	 	 	(44,773	)	 	 	(132	)	 	 	(464	)	 	 	(403	)	 	 	(2,111	)	 	 	(1,519	)
	Net loss	 	 	(8,196	)	 	 	(71,128	)	 	 	(96,076	)	 	 	(9,097	)	 	 	(10,075	)	 	 	(15,762	)	 	 	(18,597	)	 	 	(20,116	)
	Net loss per share – basic and diluted	 	 	(0.27	)	 	 	(2.37	)	 	 	(2.21	)	 	 	(0.11	)	 	 	(0.12	)	 	 	(0.18	)	 	 	(0.21	)	 	 	(0.22	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

   

  Our overall revenues continue to grow as we grow our global customer base. Revenue for the
      three months ended June 30, 2020 was impacted by the COVID-19 Pandemic and its impact on customer churn, concessions we gave to customers, new customer adds at the onset of the quarter, as well as lower payment referral fees. Offsetting this was
      increases in subscription revenue from existing as well as new customers including the increased adoption of our add-ons, specifically Lightspeed Payments.

   

  Direct Cost of Revenues

   

  Our total quarterly costs of revenue increased successively for all
      periods presented. The aggregate increase was primarily due to increased costs associated with supporting a greater number of Customer Locations utilizing our platforms, as well as an increase in our Lightspeed Payments customers which carry higher
      direct costs than our subscription business.

   

  
     

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  Gross Profit

   

  Our total quarterly gross profit increased successively for all periods presented except
      for the three month period ended June 30, 2020 due primarily to the impact of the COVID-19 Pandemic outlined in the Revenues section of Quarterly Results of Operations above.

   

  Operating Expenses

   

  Total operating expenses generally increased sequentially for each period presented except
      for the three months ended June 30, 2020 where operating expenses remained constant due primarily to the cost containment measures taken by the Company in the quarter including taking advantage of government-sponsored COVID-19 wage subsidy programs
      available globally.

   

  Liquidity and Capital Resources

   

  Overview

   

  The general objectives of our capital management strategy reside in the preservation of our
      capacity to continue operating, in providing benefits to our stakeholders and in providing an adequate return on investment to our shareholders by selling our services at a price commensurate with the level of operating risk assumed by us.

   

  We thus determine the total amount of capital required consistent with risk levels. This
      capital structure is adjusted on a timely basis depending on changes in the economic environment and risks of the underlying assets. We are not subject to any externally imposed capital requirements.

   

  Credit Facility

   

  We have credit facilities with the Canadian Imperial Bank of Commerce (“CIBC”), which
      include a $25 million demand revolving operating credit facility (the “Revolver”) and a $50 million stand-by acquisition term loan (the “Acquisition Facility”) and together with the Revolver, the “Credit Facilities”). The Revolver will be available
      for draw at any time during the term of the Credit Facilities. The Acquisition Facility was drawn for $30 million in January 2020 for the acquisition of Gastrofix.

   

  Working Capital

   

  Our primary source of cash flow has been from raising capital totaling $417 million since
      Fiscal 2016. Our approach to managing liquidity is to ensure, to the extent possible, that we always have sufficient liquidity to meet our liabilities as they become due. We do so by monitoring cash flow and performing budget-to-actual analysis on a
      regular basis. In addition to the cash balances, we have a $25 million Revolver available to be drawn to meet ongoing working capital requirements and $20 million remaining on the Acquisition Facility for acquisitions. Our principal cash requirements
      are for working capital and acquisitions we may execute. Working capital surplus as at June 30, 2020 was $156.1 million. Given our existing cash and credit facilities, along with proceeds obtained from our initial public offering and our bought deal
      offering, we believe there is sufficient liquidity to meet our current and short-term growth requirements in addition to our long-term strategic objectives.

   

  Base Shelf Prospectus

   

  On July 29, 2019, we announced the filing of a preliminary short form base shelf prospectus
      with securities regulatory authorities in each of the provinces and territories of Canada to allow us and certain of our security holders to qualify the distribution by way of prospectus in Canada of up to C$500 million of subordinate voting shares,
      preferred shares, debt securities, warrants, subscription receipts, units, or any combination thereof, during the 25-month period that the base shelf prospectus is effective. Subsequently, on February 6, 2020, we announced that we had filed an
      amended and restated short form base shelf prospectus to allow us to offer up to an aggregate of C$1 billion subordinate voting shares, preferred shares, debt securities, warrants, subscription receipts, units, or any combination thereof, during the
      25-month period that the base shelf prospectus is effective.

   

  
     

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  Cash Flows

   

  The following table presents cash and cash equivalents as at June 30, 2020 and 2019, and
      cash flows from operating, investing, and financing activities for the three months ended June 30, 2020 and 2019:

   

  	 	 	
          Three months ended

          June 30,

        	 
	(In thousands of US dollars)	 	 	2020		 	 	2019	
	 	 	 	$	 	 	 	$	 
	Cash and cash equivalents	 	 	203,521	 	 	 	191,440	 
	Net cash provided by (used in) Operating activities	 	 	(7,411	)	 	 	(6,305	)
	Investing activities	 	 	(1,471	)	 	 	(9,464	)
	Financing activities	 	 	797	 	 	 	(729	)
	Effect of foreign exchange on cash and cash equivalents	 	 	637	 	 	 	235	 
	Net decrease in cash and cash equivalents	 	 	(7,448	)	 	 	(16,263	)

   

  Cash Flows Used in Operating Activities                

   

  Cash flows used in operating activities for the three months ended June 30, 2020 were $7.4
      million compared to $6.3 million for the three months ended June 30, 2019. Excluding transaction related costs of $0.5 million, as well as acquisition related compensation paid in the period of $0.5 million, cash flows used in operating activities
      were $6.4 million for the three months ended June 30, 2020. Excluding these adjustments as well as government-sponsored COVID-19 wage subsidies, cash flows used in operating activities were higher for the three months ended June 30, 2020 due
      primarily to incremental employee costs arising from the the acquisitions of iKentoo in July 2019, Kounta in November 2019 and Gastrofix in January 2020.

   

  Cash Flows Used in Investing Activities

   

  Cash flows used in investing activities for the three months ended
      June 30, 2020 were $1.5 million compared to $9.5 million for the three months ended June 30, 2019. The decrease in cash outflows for investing activities was primarily due to the acquisition of Chronogolf in May 2019.

   

  Cash Flows from Financing Activities

   

  Cash flows from financing activities for the three months ended June 30, 2020 increased
      $1.5 million compared to the three months ended June 30, 2019. The increase in cash inflows from financing activities was due to an increase of $1.7 million in proceeds from the exercise of stock options under our stock option plans as well as $0.6
      million less share issuance costs paid, offset by an increase in the payment of lease liabilities of $0.4 million and an increase of interest paid of $0.3 million.

   

  Based upon our current cash balance and available financing, we believe that cash flows
      from operations, together with credit available under the credit facility, will be adequate to meet the Company's future operating cash needs.

   

  Off-Balance Sheet Arrangements

   

  We have not entered into off-balance sheet financing arrangements, other than low value and
      short-term leases. From time to time, we may be contingently liable with respect to litigation and claims that arise in the normal course of operations.

   

  Related Party Transactions

   

  We have no material related party transactions, other than those noted in our unaudited
      condensed interim consolidated financial statements.

   

  
     

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  Financial Instruments and Other Instruments

   

  Credit and Concentration Risk

   

  Generally, the carrying amount in our consolidated statement of financial position exposed
      to credit risk, net of any applicable provisions for losses, represents the maximum amount exposed to credit risk.

   

  Our credit risk is primarily attributable to our cash and cash equivalents and trade
      receivables. We do not require guarantees from our customers. Credit risk with respect to cash and cash equivalents is managed by maintaining balances only with high credit quality financial institutions.

   

  Due to our diverse customer base, there is no particular concentration of credit risk
      related to our trade receivables. Moreover, balances for trade receivables are managed and analyzed on an ongoing basis to ensure expected credit losses are established and maintained at an appropriate amount.

   

  We maintain a provision for impairment of a portion of trade receivables when collection
      becomes doubtful. We estimate anticipated losses from doubtful accounts based upon the expected collectability of all trade receivables, which estimate takes into account the number of days past due, collection history, identification of specific
      customer exposure and current economic trends. As a result of the increased collectability risk, including the estimated impact of the COVID-19 Pandemic, the Company increased its expected credit loss at the end of June 30, 2020 by $1.3 million.

   

  The maximum exposure to credit risk at the reporting date is the carrying value of each
      class of receivables mentioned above. We do not hold any collateral as security.

   

  Foreign Currency Exchange Risk

   

  We are exposed to currency risk due to financial instruments denominated in foreign
      currencies. We have not entered into arrangements to hedge our exposure to currency risk.

   

  Interest Rate Risk

   

  Interest rate risk is the risk that changes in interest rates will negatively impact
      earnings and cash flows. Certain of our cash earns interest. Our trade receivables, accounts payable and accrued liabilities and lease liabilities do not bear interest. Our exposure to interest rate risk is related to our acquisition facility. We are
      not exposed to material interest rate risk.

   

  Share Price Risk

   

  Accrued payroll taxes on stock-based compensation (social costs) are payroll taxes
      associated with stock-based compensation that we are subject to in various countries in which we operate. Social costs are accrued at each reporting period based on the number of vested stock options and awards outstanding, the exercise price, and
      our share price. Changes in the accrual are recognized in direct cost of revenues and operating expenses. An increase in share price will increase the accrued expense for social costs, and when the share price decreases, the accrued expense will
      become a reduction in social costs expense, all other things being equal, including the number of vested stock options and exercise price remaining constant.

   

  Critical Accounting Policies and Estimates

   

  The preparation of our consolidated financial statements in conformity with IFRS requires
      management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We review these estimates on an ongoing basis based on management’s best knowledge of current events and
      actions that we may undertake in the future. Actual results could differ from these estimates. Areas requiring the most significant estimates and judgments are outlined below. Management has determined that we operate in a single operating and
      reportable segment.

   

  Recoverability of Deferred Tax Assets and Current and Deferred Income Taxes and Tax
          Credits

   

  Uncertainties exist with respect to the interpretation of complex tax regulations and the
      amount and timing of future taxable income. We establish provisions based on reasonable estimates for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience of previous
      tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

   

  
     

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  Deferred income tax assets are recognized for unused tax losses and deductible temporary
      differences to the extent it is probable that taxable income will be available against which the losses and deductible temporary differences can be utilized. Management’s judgment is required to determine the amount of deferred income tax assets that
      can be recognized, based upon the likely timing and the level of future taxable income together with future tax planning strategies.

   

  Share-Based Payments

   

  We measure the cost of equity-settled transactions with employees by reference to the fair
      value of the related instruments at the date at which they are granted. Estimating fair value for share-based payments requires determining the most appropriate valuation model for a grant, which depends on the terms and conditions of the grant. This
      also requires making assumptions and determining the most appropriate inputs to the valuation model including the expected life of the option, volatility and dividend yield.

   

  Business Combinations and Impairment of Non-financial Assets

   

  Business combinations are accounted for in accordance with the acquisition method. The
      consideration transferred and the acquiree’s identifiable assets, liabilities and contingent liabilities are measured at their fair value. We develop the fair value internally by using appropriate valuation techniques, which are generally based on a
      forecast of the total expected future net discounted cash flows. These evaluations are linked closely to the assumptions made by management regarding the future performance of the related assets and the discount rate. Contingent consideration is
      measured at fair value using a discounted cash flow model.

   

  Our impairment test for goodwill is based on internal estimates of fair value less costs of
      disposal calculations and uses valuation models such as the discounted cash flows model. Key assumptions on which management has based its determination of fair value less costs of disposal include estimated growth rates, discount rates and tax
      rates. These estimates, including the methodology used, can have a material impact on the respective values and ultimately the amount of any goodwill impairment.

   

  Whenever property and equipment and intangible assets are tested for impairment, the
      determination of the assets’ recoverable amount involves the use of estimates by management and can have a material impact on the respective values and ultimately the amount of any impairment.

   

  Provisions

   

  We have recorded provisions to cover cost exposures that could materialize in future
      periods. In determining the amount of the provisions, assumptions and estimates are made in relation to discount rates and the expected cost to settle such liabilities.

   

  COVID-19 Pandemic

   

  The uncertainties around COVID-19 required the use of judgments and estimates which
      resulted in no material impacts for the three months ended June 30, 2020 other than the impact on expected credit losses driven by the changes in the macro-economic environment due to COVID-19. The future impact of COVID-19 uncertainties could
      generate, in future reporting periods, a significant risk of material adjustment to the following: revenue recognition, estimated losses on revenue-generating contracts, goodwill and intangible impairment and other assets and liabilities.

   

  Recently Issued Accounting Standards Not Yet Adopted

   

  From time to time, new accounting pronouncements are issued by the International Accounting
      Standards Board (“IASB”) or other standards-setting bodies, and are adopted as of the specified effective date. No new accounting pronouncements are expected to materially impact Lightspeed as at June 30, 2020.

   

  Outstanding Share Information

   

  Lightspeed is a publicly traded company listed on the Toronto Stock Exchange (TSX: LSPD).
      Our authorized share capital consists of (i) an unlimited number of subordinate voting shares, (ii) an unlimited number of multiple voting shares and (iii) an unlimited number of preferred shares, issuable in series, of which 78,454,397 subordinate
      voting shares, 14,667,922 multiple voting shares and no preferred shares were issued and outstanding as of August 4, 2020.

   

  
     

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  As of August 4, 2020, there were 3,057,749 options outstanding under the Company’s Amended
      and Restated 2012 Stock Option Plan (of which 1,261,762 were vested as of such date), 53,396 options outstanding under the Company’s Amended and Restated 2016 Stock Option Plan (of which 53,396 were vested as of such date), 3,757,729 options
      outstanding under the Company’s Amended and Restated Omnibus Incentive Plan (of which 272,449 were vested as of such date) and 500,000 options outstanding which were issued in compliance with an allowance under the rules of the TSX as inducements for
      executive officers to enter into contracts of full-time employment with the Company (“Inducement Grants”) (of which none were vested as of such date). Each such option is or will become exercisable for one subordinate voting share.

   

  As of August 4, 2020, there were 12,033 DSUs outstanding under the Company’s Amended and
      Restated Omnibus Incentive Plan. Each such DSU will, upon the holder thereof ceasing to be a director, executive officer, employee or consultant of the Company in accordance with the Amended and Restated Omnibus Incentive Plan, be settled at the
      discretion of the board through (a) the delivery of shares issued from treasury or purchased on the open market, (b) cash, or (c) a combination of cash and shares.

   

  As of August 4, 2020, there were 253,732 RSUs outstanding under the Company’s Amended and
      Restated Omnibus Incentive Plan (of which 44,725 were vested as of such date) and 4,877 RSUs outstanding which were Inducement Grants (of which none were vested as of such date). Each such RSU, upon vesting, may be settled at the discretion of the
      board through (a) the delivery of shares issued from treasury or purchased on the open market, (b) cash, or (c) a combination of cash and shares.

   

  As of August 4, 2020, there were 150,364 PSUs outstanding under the Company’s Amended and
      Restated Omnibus Incentive Plan (of which none were vested as of such date). Each such PSU, upon vesting, may be settled at the discretion of the board through (a) the delivery of shares issued from treasury or purchased on the open market, (b) cash,
      or (c) a combination of cash and shares.

   

  Controls and Procedures

   

  Disclosure Controls and Procedures

   

  Disclosure controls and procedures are designed to provide reasonable assurance that
      information required to be disclosed in reports filed with the securities regulatory authorities are recorded, processed, summarized and reported in a timely fashion. The disclosure controls and procedures are designed to ensure that information
      required to be disclosed by the Company in such reports is then accumulated and communicated to the Company’s management to ensure timely decisions regarding required disclosure. Management regularly reviews disclosure controls and procedures;
      however, they cannot provide an absolute level of assurance because of the inherent limitations in control systems to prevent or detect all misstatements due to error or fraud. The CEO and the CFO, along with Management, have evaluated and concluded
      that the Company’s disclosure controls and procedures ("DC&P") as at June 30, 2020 provide reasonable assurance that significant information relevant to the Company, including that of its subsidiaries, is reported to them during the preparation
      of disclosure documents.

   

  Internal Controls over Financial Reporting

   

  The Chief Executive Officer and Chief Financial Officer are responsible for establishing
      and maintaining internal controls over financial reporting. The Company’s internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with IFRS. The Chief Executive Officer and Chief Financial Officer have been advised that the control framework the Chief Executive Officer and the Chief Financial Officer used to design the Company’s
      internal controls over financial reporting is recognized by the Committee of Sponsoring Organizations of the Treadway Commission.

   

  The Chief Executive Officer and the Chief Financial Officer have evaluated, or caused to be
      evaluated under their supervision, whether or not there were changes to its internal controls over financial reporting during the period ended June 30, 2020 that have materially affected, or are reasonably likely to materially affect the Company’s
      internal controls over financial reporting. No such changes were identified through their evaluation.

   

  Limitations of Controls and Procedures

   

  Management, including the Chief Executive Officer and Chief Financial Officer, believes
      that any disclosure controls and procedures or internal controls over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the control system are met. Further, the
      design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute
      assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the reality judgments in decision-making can be faulty, and that breakdowns can occur because of
      simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any system of controls is also based in part
      upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a
      cost-effective control system, misstatements due to error or fraud may occur and not be detected.

   

   

  
     

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  Limitation on Scope of Design

   

  The scope of design of internal controls over financial reporting and disclosure controls
      and procedures excluded the controls, policies, and procedures of Gastrofix, which was acquired on January 7, 2020.

   

  Gastrofix's contribution to our Condensed Interim Consolidated Statements of Loss and
      Comprehensive Loss for the three months ended June 30, 2020 was approximately 8.1% of total revenues and approximately 5.5% of total net loss. Additionally, as at June 30, 2020, Gastrofix's current assets and current liabilities were approximately
      1.5% and 0.4% of consolidated current assets and current liabilities, and its non-current assets and non-current liabilities were approximately 4.2% and 0.7% of consolidated non-current assets and non-current liabilities, respectively.

   

  The amounts recognized for the assets acquired and liabilities assumed at the date of
      acquisition are described in Note 5 of the audited consolidated financial statements for the fiscal year ended March 31, 2020.

   

   

  (24)Exhibit 4.6

   

   

   

  

  
     

    
      
 

  

   

  NOTICE OF ANNUAL MEETING OF

  SHAREHOLDERS

   

  To the shareholders of Lightspeed POS Inc. (the “Company”):

   

  NOTICE IS HEREBY GIVEN that the annual meeting of shareholders (the “Meeting”) of the Company will be held virtually at
    https://web.lumiagm.com/127276071, password “lightspeed2020” (case sensitive), on August 6, 2020 at 11 a.m. (ET), for the
    purposes of:

   

  		(i)	receiving the consolidated financial statements of the Company for the fiscal year ended March 31, 2020, together with the auditors’ report thereon;

   

  		(ii)	electing 6 directors for the ensuing year;

   

  		(iii)	appointing auditors for the ensuing year;

   

  		(iv)	considering and, if deemed advisable, adopting, with or without variation, an ordinary resolution approving the conversion of the Company’s Amended and Restated Omnibus Incentive Plan from a
          “fixed plan” to a “rolling plan”, whereby the maximum number of subordinate voting shares of the Company which may be reserved and set aside for issuance under the Company’s Amended and Restated Omnibus Incentive Plan and the 2012 and 2016 Legacy
          Option Plans (as defined in the accompanying management information circular (the “Circular”)) will be changed from a fixed number of subordinate voting shares to a maximum aggregate number of subordinate voting shares equal to 15% of all
          multiple voting shares and subordinate voting shares issued and outstanding from time to time on a non-diluted basis, as more fully described in the accompanying Circular; and

   

  		(v)	transacting such other business as may properly come before the Meeting.

   

  The Company’s board of directors has fixed the close of business on June 8, 2020 as the record date for determining shareholders entitled to receive notice of, and to vote at, the Meeting, or any postponement or adjournment thereof. No person who becomes a shareholder of record
      after that time will be entitled to vote at the Meeting or any postponement or adjournment thereof.

   

  A shareholder may attend the Meeting and vote in person or may be represented and vote by proxy. If you are unable to attend the Meeting in person,
      please complete, date, sign and return the accompanying form of proxy enclosed herewith for use at the Meeting or any adjournment thereof. To be effective, the attached proxy must be received not later than August 4, 2020 at 11 am (ET). Your shares
      will be voted in accordance with your instructions as indicated on the proxy.

   

  If you have any questions about or require assistance in completing your form of proxy, or about the information contained in this Circular, please
      contact the Company's Corporate Secretary: by email at dan.micak@lightspeedhq.com.

   

  Les actionnaires qui préféreraient recevoir la circulaire de sollicitation de procurations de la direction en français n’ont qu’à en aviser le
        secrétaire corporatif de Lightspeed POS Inc. ou écrire à gouvernance@lightspeedhq.com.

   

  Dated at Montréal, Québec, Canada, June 26, 2020.

   

  

  	 	By order of the Board of Directors,
	 	 
	 	 
	 	 
	 	Dax Dasilva
	 	Founder and Chief Executive Officer

  

   

  
     

    
      
 

  

   

  MANAGEMENT INFORMATION CIRCULAR

   

  Except as otherwise indicated, the information contained herein is given as of June 24, 2020. All
      references in this Circular to dollars, “$” or “US$” are to United States dollars and all references to Canadian dollars and “C$” are to Canadian dollars. 

   

  WHAT’S INSIDE

   

  	INVITATION TO SHAREHOLDERS	1
	 	 
	SUMMARY	2
	 	 
	VOTING AND PROXIES	3
	 	 
	BUSINESS OF THE MEETING	9
	 	 
	Election of Directors	9
	 	 
	Appointment of Auditors	13
	 	 
	Conversion of the Company’s Amended and Restated Omnibus Incentive Plan	14
	 	 
	COMPENSATION OF DIRECTORS	15
	 	 
	EXECUTIVE COMPENSATION	20
	 	 
	Introduction	20
	 	 
	Overview	20
	 	 
	Compensation Discussion and Analysis	20
	Compensation Philosophy and Objectives	20
	Compensation Governance	21
	Compensation-Setting Process	21
	 	 
	Principal Elements of Compensation	22
	 	 
	Equity Incentive Plans	24
	 	 
	Amended and Restated Omnibus Incentive Plan	26
	 	 
	Legacy Option Plans	30
	Securities Authorized for Issuance Under Equity Compensation Plans	33
	 	 
	Named Executive Officers' Compensation	34
	Summary Compensation Table	34
	CEO Performance-Based Compensation	35
	Employment Agreements, Termination and Change of Control Benefits	36
	Outstanding Option-Based Awards and Share-Based Awards	37
	Incentive Plan Awards – Value Vested or Earned During the Year	38
	 	 
	STATEMENT OF CORPORATE GOVERNANCE PRACTICES	39
	 	 
	Nomination of Directors and Majority Voting Policy	39
	 	 
	Independence of Directors	40

   

  

  
     

    
      
 

  

   

  	Director Term Limits and Other Mechanisms of Board Renewal	40
	 	 
	Charter of the Board	41
	 	 
	Committees of the Board	41
	 	 
	Code of Ethics	43
	 	 
	Diversity	43
	 	 
	Directors' and Officers' Liability Insurance	44
	 	 
	Director Orientation and Continuing Education	44
	 	 
	Risk Management	44
	 	 
	OTHER INFORMATION	46
	 	 
	Indebtedness of Directors and Senior Executives	46
	 	 
	Additional Information	46
	 	 
	Shareholder Proposals for Next Annual Meeting of Shareholders	46
	 	 
	APPROVAL OF MANAGEMENT INFORMATION CIRCULAR	46
	 	 
	SCHEDULE “A”	47
	 	 
	CHARTER OF THE BOARD OF DIRECTORS	47
	 	 
	SCHEDULE “B”	52
	 	 
	RESOLUTION IN RESPECT OF AMENDMENTS TO AMENDED AND RESTATED OMNIBUS INCENTIVE PLAN	52

  

   

  
     

    
      
 

  

   

  

  	 	INVITATION TO SHAREHOLDERS 

   

  

  	
          INVITATION TO SHAREHOLDERS

           

          Dear Shareholders:

           

          On behalf of the Board of Directors and management of the Company, we are pleased to invite you to attend the annual meeting of shareholders that will be held virtually this year on August 6, 2020 at 11 a.m. (ET).

           

          To join the virtual meeting, please login at https://web.lumiagm.com/127276071 using the password “lightspeed2020” (case sensitive).

           

          The Company’s subordinate voting shares are listed on the Toronto Stock Exchange (“TSX”) under the symbol “LSPD”. As at June 24,
            2020, there were 78,302,477 subordinate voting shares and 14,667,922 multiple voting shares of the Company issued and outstanding.

        	 

   

  This annual meeting is your opportunity to vote on a number of important matters as well as hear first-hand about our financial performance and strategic plans for the
    future. The enclosed management information circular describes the business to be conducted at the meeting and provides information on the Company’s executive compensation and corporate governance practices. If you attend in person, you will have the
    opportunity to interact with and to ask questions to members of the Board of Directors and management.

   

  Your participation in voting at the meeting is important to us. You can vote electronically during the virtual meeting, or alternatively by telephone, via the internet
    or by completing and returning the enclosed form of proxy or voting instruction form. Please refer to the “Voting and Proxies” section of this management information circular.

   

  We look forward to welcoming you at the meeting and thank you for your continued support.

   

  Sincerely,

   

  	 	 
	 	 
	
          Patrick Pichette 

          Chair of the Board of Directors 

        	
          Dax Dasilva 

          Founder and Chief Executive Officer 

        

   

  MANAGEMENT INFORMATION CIRCULAR 1

   

  
     

    
      
 

  

   

  

  	 	SUMMARY

   

  SUMMARY

   

  The following summary highlights some of the important information you will find in this management information circular (this “Circular”) of Lightspeed POS
    Inc. (the “Company” or “Lightspeed”).

   

  Shareholder Voting Matters

   

  	VOTING MATTER	BOARD VOTE RECOMMENDATION	INFORMATION
	Election of 6 directors	FOR each nominee	pages 9 to 13
	Appointment of PricewaterhouseCoopers LLP as auditors	FOR	page 13
	Conversion of the Company’s Amended and Restated Omnibus Incentive Plan from a “fixed plan” to a “rolling plan” 	FOR	pages 14 to 15

   

  Our Director Nominees 

  	NAME &REGION	AGE	DIRECTOR SINCE	POSITION	BOARD & 

            COMMITTEE 

            ATTENDANCE 

            IN FISCAL 

            2020	OTHER PUBLIC BOARDS	
          AREAS OF EXPERTISE 

          (Top 4) 

        	 
	 
	
          Patrick Pichette 

          London, UK 

          (Chair) 

          Independent 

        	57	2018	Corporate Director, Chair of the Board	100%	1	
           

          Executive Leadership 

          Accounting/Finance 

          Governance/Risk Management 

          Strategy/M&A 

           

        	 
	
          Dax Dasilva 

          Québec, Canada 

        	44	2005	Chief Executive Officer and Corporate Director	100%	0	
          Executive Leadership 

          Innovation/Technology 

          Retail/Hospitality Sales 

          Strategy/M&A 

        	 
	
          Jean Paul Chauvet 

          Québec, Canada 

        	47	2013	President and Corporate Director	100%	0	
          Executive Leadership 

          Marketing/Advertising 

          Retail/Hospitality Sales 

          Governance/Risk Management 

        	 
	
          Marie-Josée Lamothe 

          Québec, Canada 

           

          Independent

        	52	2018	Corporate Director	100%	1	
          Executive leadership 

          Retail/Hospitality Sales 

          Marketing/Advertising 

          Governance/Risk Management 

        	 
	
          Paul McFeeters 

          Ontario, Canada 

           

          Independent

        	65	2018	Corporate Director	100%	1	
          Executive Leadership 

          Accounting/Finance 

          Governance/Risk Management 

          Strategy/M&A 

        	 
	
          Rob Williams 

          Washington, United States 

           

          Independent

        	52	2018	Corporate Director	100% 	0	
          Executive Leadership 

          Retail/Hospitality Sales 

          Marketing/Advertising 

          Innovation/Technology 

        	 

   

  MANAGEMENT INFORMATION CIRCULAR 2

   

  
     

    
      
 

  

   

  

  	 	VOTING AND PROXIES

   

   

  VOTING AND PROXIES

   

  Voting at the Meeting

   

  Registered shareholders and duly appointed proxyholders will be able to attend the Meeting and vote in real time, provided they are connected to the internet and
    follow the instructions below. Non-registered shareholders who have not duly appointed themselves as proxyholder will be able to attend the virtual meeting as guests but will not be able to vote at the virtual meeting.’

   

  Shareholders who wish to appoint a person other than the management nominees identified in the form of proxy or voting instruction form (including a non-registered
    shareholder who wishes to appoint themselves to attend the virtual meeting) must carefully follow the instructions below and on their form of proxy or voting instruction form. These instructions include the additional step of registering such
    proxyholder with our transfer agent, AST Trust Company (Canada), after submitting the form of proxy or voting instruction form. Failure to register the proxyholder with AST Trust Company Canada will result in the proxyholder not receiving a control
    number to participate in the virtual meeting and only being able to attend as a guest. Guests will be able to listen to the virtual meeting but will not be able to vote.

   

  To vote by online ballot through the live webcast platform, follow the below instructions:

   

  		1.	Log in at https://web.lumiagm.com/127276071 on your browser at least 15 minutes before the Meeting starts

  

  		2.	Click on “I have a control number”

  

  		3.	Enter your control number

  

  		4.	Enter the password: “lightspeed2020” (case sensitive)

  

  		5.	When the ballots have been opened, you will see them appear on your screen

   

  If you use your control number to log in to the meeting, any vote you cast at the meeting will revoke any proxy you previously submitted. If you do not wish revoke a
    previously submitted proxy, you should not vote during the meeting.

   

  Proxyholders who have been duly appointed and registered with AST as described in the section titled “Appointment of Proxy” will receive a control number by email from
    AST after the proxy voting deadline has passed.

   

  Registered shareholders and duly appointed proxyholders (including non-registered shareholders who have duly appointed themselves as proxyholder) that attend the
    meeting online will be able to vote by completing a ballot online during the Meeting through the live webcast platform.

   

  Joining the Meeting as a Guest

   

  Guests (including non-registered shareholders who have not duly appointed themselves as proxyholder) can log into the meeting as set out below. Guests will be able to
    listen to the meeting but will not be able to vote during the meeting.

   

  Guests can also listen to the Meeting by following the instructions below:

   

  		1.	Log in at https://web.lumiagm.com/127276071 on your browser

  

  		2.	Click on “GUEST”

  

  		3.	Provide your name and email address (no password is required for guests)

   

  MANAGEMENT INFORMATION CIRCULAR 3

   

  

  
     

    
      
 

  

   

  

  	 	VOTING AND PROXIES

   

  It is your responsibility to ensure internet connectivity for the duration of the meeting and you should allow ample time to log in to the meeting online before it
    begins.

   

  Non-registered shareholders/Appointees obtaining a control number to vote during the meeting:

   

  You must complete the additional step of registering the proxyholder by calling AST at 1-866-751-6315 (within North America) or 212-235-5754 (outside of North America)
    by no later than 11 a.m. (ET) on August 4, 2020. Failing to register your proxyholder online will result in the proxyholder not receiving a control number, which is required to vote at the meeting.

   

  Non-registered shareholders who have not duly appointed themselves as proxyholder will not be able to vote at the meeting but will be able to participate as a guest.

   

  Solicitation of Proxies

   

  This Circular is sent in connection with the solicitation by the management of the Company of proxies to be used at the Meeting, at the time, place and for the
    purposes set forth in the Notice of Annual Meeting of shareholders (the “Notice of Meeting”), and at any adjournment thereof. The solicitation is being made primarily by email, but proxies may also be solicited by telephone, facsimile or other
    personal contact by officers or other employees of the Company. The cost of the solicitation will be borne by the Company.

   

  Notice-and-Access

   

  As permitted by Canadian securities regulators, Lightspeed is using notice-and-access (as defined in National Instrument 54-101 - Communication with Beneficial
      Owners of Securities of a Reporting Issuer) to deliver the Meeting materials, including this Circular, to both its registered and nonregistered shareholders. Lightspeed is also using notice-and-access to deliver its annual consolidated financial
    statements to its registered and non-registered shareholders. This means that the Circular and the annual consolidated financial statements of the Company are being posted online for shareholders to access, rather than being mailed out.
    Notice-and-access gives shareholders more choice, substantially reduces Lightspeed's printing and mailing costs, and is more environmentally friendly as it reduces materials and energy consumption.

   

  Shareholders will still receive a form of proxy or a voting instruction form in the mail (unless shareholders have chosen to receive proxy materials electronically) so
    they can vote their shares but, instead of automatically receiving a paper copy of this Circular and the annual consolidated financial statements of the Company, shareholders will receive a notice with information about how they can access the Circular
    and annual consolidated financial statements of the Company electronically and how to request a paper copy. This Circular and annual consolidated financial statements of the Company are available on Lightspeed's website at www.lightspeedhq.com and on
    SEDAR at www.sedar.com.

   

  Shareholders may request a paper copy of this Circular and/or the annual consolidated financial statements of the Company, at no cost, up to one year from the date
    this Circular was filed on SEDAR. Shareholders may make such a request at any time prior to the meeting (a) on the web at www.meetingdocuments.com/ASTCA/LSPD; (b) by contacting AST at 1-888-433-6443 (toll free in Canada and the United States) or
    416-682-3801 (other countries); (c) by contacting the Company's Corporate Secretary by email at dan.micak@lightspeedhq.com.

   

  MANAGEMENT INFORMATION CIRCULAR 4

   

  

  
     

    
      
 

  

   

  

  	 	VOTING AND PROXIES

   

  Appointment of Proxy

   

  The individuals named in the accompanying form of proxy (the "Management Appointees") are, for purposes of the Meeting, shareholders and officers and/or
    directors of the Company, as applicable. A shareholder wishing to appoint some other person to represent such shareholder at the Meeting has the right to do so, either by inserting such person's name in the blank space provided in the applicable
      form of proxy and striking out the names designated as appointees in such form of proxy or by completing another proxy. 

   

  The cost of the mailing and solicitation will be borne by the Company.

   

  A proxy will not be valid for the Meeting unless the completed form of proxy is delivered to AST Trust Company (Canada): (i) by internet at www.astvotemyproxy.com;
    (ii) by email at proxyvote@astfinancial.com; (iii) by mail addressed to AST Trust Company (Canada) Proxy Department, P.O. Box 721, Agincourt, Ontario M1S 0A1; (iv) by fax to 1-416-368-2502 or toll free in Canada and the United States to 1-866-781-3111;
    or (v) by touch-tone phone toll-free at 1-888-489-7352, in all cases received not later than August 4, 2020 at 11 a.m. (Eastern Time).

   

  Voting by Proxy at the Meeting 

   

  The person you appoint will need to contact AST Trust Company by calling 1-866-751-6315 (within North America) or 212-235-5754 (outside of North America) by no later
    than 11 a.m. (ET) on August 4, 2020 to request a control number to be represented or vote at the meeting. It is the responsibility of the shareholder or their proxy to contact AST Trust Company (Canada) to request a control number.

   

  Without the control number, proxyholders will not be able to participate at the Meeting.

   

  Revocation of Proxy

   

  In addition to revocation in any other manner permitted by law, a shareholder who has given a proxy may revoke it at any time before it is exercised, by instrument in
    writing executed by the shareholder or by the shareholder's attorney authorized in writing and deposited with AST Trust Company (Canada): (i) by internet at www.astvotemyproxy.com; (ii) by email at proxyvote@astfinancial.com; (iii) by mail
    addressed to AST Trust Company (Canada) Proxy Department, P.O. Box 721, Agincourt, Ontario M1S 0A1; (iv) by fax to 1-416-368-2502 or toll free in Canada and the United States to 1-866-781-3111; or (v) by touch-tone phone toll-free at 1-888-489-7352, at
    any time up to and including the last Business Day preceding the day of the Meeting at which the proxy is to be used, or with the chair of the Meeting on the day of the Meeting.

   

  MANAGEMENT INFORMATION CIRCULAR 5

   

  
     

    
      
 

  

   

  

  	 	VOTING AND PROXIES

   

  Exercise of Discretion by Proxies

   

  The persons named in the enclosed form of proxy will, on a show of hands or any ballot that may be called for, vote (or withhold from voting) the shares in respect of
    which they are appointed as proxies in accordance with the instructions of the shareholders appointing them. If a shareholder specifies a choice with respect to any matter to be acted upon, the shares will be voted accordingly. If no instructions
      are given, the shares will be voted FOR the election of the nominees of the board of directors of the Company (the “Board of Directors” or the “Board”) as directors, FOR the appointment of PricewaterhouseCoopers LLP as auditors, and FOR the
      conversion of the Company’s Amended and Restated Omnibus Incentive Plan (as defined herein) from a “fixed plan” to a “rolling plan” as more fully described herein. The enclosed form of proxy confers discretionary authority upon the persons named
      therein with respect to amendments or variations to matters identified in the Notice of Meeting, and with respect to other business which may properly come before the Meeting or any adjournment thereof. As of the date hereof, management of the
    Company knows of no such amendment, variation or other business to come before the Meeting. If any such amendment or other business properly comes before the Meeting, or any adjournment thereof, the persons named in the enclosed form of proxy will vote
    on such matters in accordance with their best judgement.

   

  Voting Shares and Principal Holders Thereof

   

  As of June 24, 2020, there were 78,302,477 subordinate voting shares and 14,667,922 multiple voting
    shares issued and outstanding. The subordinate voting shares are “restricted securities” within the meaning of such term under applicable Canadian securities laws in that they do not carry equal voting rights with the multiple voting shares. Each
    subordinate voting share entitles its holder to one vote with respect to the matters voted at the Meeting and each multiple voting share entitles its holder to four votes with respect to the matters voted at the Meeting. In aggregate, all of the voting
    rights associated with the subordinate voting shares represented, as at June 24, 2020, 57.17% of the voting rights
    attached to all of the issued and outstanding shares of the Company.

   

  The subordinate voting shares are not convertible into any other class of shares. Each outstanding multiple voting share may at any time, at the option of the holder,
    be converted into one subordinate voting share. Upon the first date that a multiple voting share shall be held by a person other than a Permitted Holder (each such term is defined in the Company’s articles), the Permitted Holder which held such
    multiple voting share until such date, without any further action, shall automatically be deemed to have exercised his, her or its rights to convert such multiple voting share into a fully paid and non-assessable subordinate voting share.

   

  In addition, all Multiple Voting Shares held by Permitted Holders will convert automatically into subordinate voting shares at such time that is the earlier to occur
    of the following (i) Permitted Holders that hold multiple voting shares no longer as a group beneficially own, directly or indirectly and in the aggregate, at least 12.5% of the issued and outstanding subordinate voting shares and multiple voting
    shares (on a non-diluted basis), and (ii) Dax Dasilva is no longer serving as a director or member of senior management of the Company.

   

  Under applicable Canadian securities laws, an offer to purchase multiple voting shares would not necessarily require that an offer be made to purchase subordinate
    voting shares. In accordance with the rules of the TSX designed to ensure that, in the event of a take-over bid, the holders of subordinate voting shares will be entitled to participate on an equal footing with holders of multiple voting shares, the
    holders of multiple voting shares have entered into a customary coattail agreement with Lightspeed and a trustee (the “Coattail Agreement”). The Coattail Agreement contains provisions customary for dual-class, TSX-listed corporations designed to
    prevent transactions that otherwise would deprive the holders of subordinate voting shares of rights under applicable Canadian securities laws to which they would have been entitled if the multiple voting shares had been subordinate voting shares.
    Additional information regarding the Coattail Agreement can be found in the Company’s annual information form, available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at investors.lightspeedhq.com.

   

  MANAGEMENT INFORMATION CIRCULAR 6

   

  

  
     

    
      
 

  

   

  

  	 	VOTING AND PROXIES

   

  To the knowledge of the directors and executive officers of Lightspeed, as of June 24, 2020, there are
    no persons who beneficially own, or exercise control or direction over, directly or indirectly, more than 10% of either class of subordinate voting shares and multiple voting shares other than the following:

   

  	 	SHARES OWNED	 
	NAME
              OF SHAREHOLDER	Number of Subordinate

            Voting Shares	Number of Multiple

            Voting Shares	Percentage of Outstanding Shares	Percentage of

            Total Voting Power(1)	 
	 
	Dax Dasilva(2)	—	14,667,922	15.8%(3)	42.8%(3)	 
	Caisse de dépôt et placement du Québec	25,936,219	—	27.9%(3)	18.9%(3)	 

   

  

  
  
     

  

  
  

  		(1)	Percentage of total voting power represents voting power with respect to all of our subordinate voting shares and multiple voting shares, as a single class. The holders of our multiple
            voting shares are entitled to four votes per share, and holders of our subordinate voting shares are entitled to one vote per share.

  

  		(2)	Represents shares held by DHIDasilva Holdings Inc., which shares Dax Dasilva beneficially owns and controls.

  

  		(3)	Figure represents ownership on a non-diluted basis. On a fully-diluted basis, Dax Dasilva and Caisse own 14.7% and 25.8% of the issued and outstanding shares and hold 40.7% and 18.0%
            of the total voting power attached to all of the issued and outstanding shares, respectively.

   

  Non-Registered Shareholders

   

  Only registered shareholders as of the close of business on June 8, 2020 (the “Record Date”) or
    the persons they appoint as their proxies are permitted to vote at the Meeting. However, in many cases, subordinate voting shares and multiple voting shares beneficially owned by a person (a “Non-Registered Holder”) are registered either: (i) in
    the name of an intermediary that the Non-Registered Holder deals with in respect of his or her subordinate voting shares or multiple voting shares (an “Intermediary”), such as securities dealers or brokers, banks, trust companies and trustees or
    administrators of self-administered RRSPs, TFSAs, RRIFs, RESPs and similar plans, or (ii) in the name of a clearing agency of which the Intermediary is a participant. In accordance with National Instrument 54-101 of the Canadian Securities
    Administrators entitled “Communication with Beneficial Owners of Securities of a Reporting Issuer”, the Company has distributed copies of the Notice of Meeting and this Circular (collectively, the “Meeting Materials”) to the clearing agencies
    and Intermediaries for distribution to Non-Registered Holders. Intermediaries are required to forward the Meeting Materials to Non-Registered Holders, and often use a service company (such as Broadridge in Canada) for this purpose.

   

  Non-Registered Holders will be provided with a computerized form (often called a “voting instruction form”) which is not signed by the Intermediary and which, when
    properly completed and signed by the Non-Registered Holder and returned to the Intermediary or its service company, will constitute voting instructions which the Intermediary must follow. The Non-Registered Holder may provide such voting instructions
    to the Intermediary or its service company through the Internet or through a toll-free telephone number. The purpose of this procedure is to permit Non-Registered Holders to direct the voting of the subordinate voting shares or multiple voting shares
    that they beneficially own.

   

  Should a Non-Registered Holder who receives a voting instruction form wish to vote at the Meeting in person (or have another person attend and vote on behalf of the
    Non-Registered Holder), the Non-Registered Holder should print his or her own name, or that of such other person, on the voting instruction form and return it to the Intermediary or its service company.

   

  MANAGEMENT INFORMATION CIRCULAR 7

   

  

  
     

    
      
 

  

   

  

  	 	VOTING AND PROXIES

   

  Non-Registered Holders should carefully follow the instructions of their Intermediary, including those regarding when, where and by what means the voting
      instruction form or proxy form must be delivered.

   

  A Non-Registered Holder may revoke voting instructions that have been given to an Intermediary at any time by written notice to the Intermediary.

   

  We are not sending proxy-related materials to beneficial owners who have declined to receive them in order to save mailing costs and abide by the instructions of its
    declining beneficial owners.

   

  Non-Objecting Beneficial Owners (NOBOs) 

   

  Under applicable securities legislation, a beneficial owner of securities is a "non-objecting beneficial owner" (or "NOBO") if such beneficial owner has or is
    deemed to have provided instructions to the intermediary holding the securities on such beneficial owner’s behalf not objecting to the intermediary disclosing ownership information about the beneficial owner in accordance with said legislation.

   

  These securityholder materials are being sent to both registered and non-registered owners of the securities. If you are a non-registered owner, and Lightspeed or its
    agent has sent these materials directly to you, your name and address and information about your holdings of securities, have been obtained in accordance with applicable securities regulatory requirements from the intermediary holding on your behalf.
    By choosing to send these materials to you directly, Lightspeed (and not the intermediary holding on your behalf) has assumed responsibility for (i) delivering these materials to you, and (ii) executing your proper voting instructions.

   

  If you are a NOBO and your name has been provided to AST, you can vote your shares by attending the Meeting in person by appointing yourself as proxyholder, or by
    appointing someone else as proxyholder to attend the Meeting and vote your Common Shares for you, by following the instructions set out in your voting instruction form (refer to your control number shown on your voting instruction form).

   

  Objecting Beneficial Owners (OBOs) 

   

  Under applicable securities legislation, a beneficial owner is an "objecting beneficial owner" (or "OBO") if such beneficial owner has or is deemed to have
    provided instructions to the intermediary holding the securities on such beneficial owner’s behalf objecting to the intermediary disclosing ownership information about the beneficial owner in accordance with such legislation.

   

  If you are an OBO, you received these materials from your intermediary or its agent (such as Broadridge), and your intermediary is required to seek your instructions
    as to how to vote your Common Shares. Lightspeed has agreed to pay for intermediaries to deliver to OBOs the proxy-related materials and the relevant voting instruction form. The voting instruction form that is sent to an OBO by the intermediary or its
    agent should contain an explanation as to how you can exercise your voting rights, including how to attend and vote directly at the Meeting. Please provide your voting instructions to your intermediary as specified in the enclosed voting instruction
    form. 

   

  MANAGEMENT INFORMATION CIRCULAR 8

   

  
     

    
      
 

  

   

  

  	 	ELECTION OF DIRECTORS - NOMINEES

   

   

  BUSINESS OF THE MEETING

   

  Election of Directors

   

  Under the Company's articles, the Board is to consist of a minimum of three and a maximum of 15 directors as determined from time to time by the directors. Currently,
    the Board consists of six directors: Patrick Pichette, Dax Dasilva, Jean Paul Chauvet, Marie-Josée Lamothe, Rob Williams and Paul McFeeters, all of whom are standing for election at this Meeting. Under the Canada Business Corporations Act ("CBCA"),

    a director may be removed with or without cause by a resolution passed by a majority of the votes cast by shareholders present in person or by proxy at a meeting and who are entitled to vote. The directors are appointed at the annual general meeting of
    shareholders and the term of office for each of the directors will expire at the time of our next annual shareholders meeting. Under the CBCA, at least one quarter of our directors must be resident Canadians as defined in the CBCA. Our articles provide
    that, between annual general meetings of shareholders, the directors may appoint one or more additional directors so appointed, but the number of additional directors so appointed may not at any time exceed one-third of the number of current directors
    who were elected or appointed other than as additional directors.

   

  Nomination Process

   

  The process to nominate the Company’s directors is described in the section entitled “Nomination of Directors and Majority Voting Policy” in the Statement of Corporate
    Governance Practices of this Circular.

   

  Nominees

   

  The following tables include profiles of each director nominee with a description of his or her experience, qualifications, areas of expertise, participation on the
    Board and its committees, if applicable, ownership of Lightspeed securities, as well as other public company board memberships. As you will note from the enclosed form of proxy or voting instruction form, shareholders may vote for each director
    individually.

   

  MANAGEMENT INFORMATION CIRCULAR 9

   

  
     

    
      
 

  

   

  

  	 	ELECTION OF DIRECTORS - NOMINEES

  

  

  

  

  

  

  	 	 	 
		Patrick Pichette
	
          Age 57

          London, UK

          Director since 2018

          Independent

        
	Mr. Pichette is a General Partner at Inovia Capital, a Montreal based venture firm, which he
            joined in April 2018. Mr. Pichette previously served as Senior Vice President and Chief Financial Officer of Google Inc. from August 2008 until May 2015. Prior to joining Google, from January 2001 until July 2008, Mr. Pichette served as an
            executive officer of Bell Canada Enterprises Inc., including, in his last position, as President, Operations for Bell Canada, and previously as Executive Vice President, Chief Financial Officer, and Executive Vice President of Planning and
            Performance Management. Prior to joining Bell Canada Enterprises Inc., from 1996 to 2000, Mr. Pichette was a principal at McKinsey & Company. Prior to that, from 1994 to 1996, he served as Vice President and Chief Financial Officer of
            Call-Net Enterprises Inc., a Canadian telecommunications company. Mr. Pichette has been a member of the board of directors of Twitter, Inc. since December 2017 and serves as its independent chair, the chair of its audit committee and a member
            of its compensation committee. Mr. Pichette was previously a director of Bombardier Inc. from October 2013 to November 2017 and of Amyris, Inc., a renewable products company, from March 2010 to May 2013. Mr. Pichette holds a Master of Arts
            degree in philosophy, politics, and economics from Oxford University, where he attended as a Rhodes Scholar, and a Bachelor of Arts degree in Business Administration from Université du Québec à Montréal.
	
          Areas of Expertise:

          Executive Leadership

          Accounting/Finance

          Governance/Risk Management

          Strategy/M&A

        	
          Board/Committee Membership

          Board of Directors, Chair

          CNG Committee, Chair

          Audit Committee

        	
          Public Board Memberships

          Twitter Inc.

        

  

  

  

  	Securities Held as at June 24, 2020
	Number of subordinate 

              voting shares	Number of multiple 

              voting shares	Number of options	Number of DSUs	Number of RSUs	Number of PSUs
	-	-	-	-	-	-

  

   

  	 	Dax Dasilva
	
          Age 44 

          Québec, Canada 

          Director since 2005 

          Not Independent (Management) 

        
	Mr. Dasilva has been the Chief Executive Officer and a director of Lightspeed since he founded the Company in 2005. Under Mr.
            Dasilva’s leadership, Lightspeed has grown into a global business with offices in Canada, the United States, Europe, and Australia. Mr. Dasilva has over 20 years of entrepreneurship experience and has received numerous awards and recognitions,
            including the 2019 Globe and Mail Innovator of the Year, the Ernst & Young Entrepreneur of the Year Award in 2012, Startup Canada’s Entrepreneur of the Year Award in 2016 for both Quebec and Canada and Start Proud’s Technology Leader Award
            in 2018. He was named one of the 100 Most Intriguing Entrepreneurs by Goldman Sachs at the 2017 Builders + Innovators Summit. In addition, in 2015, Mr. Dasilva founded Never Apart, a non-profit organization offering creative space for cultural
            programming with global reach and impact.
	
          Areas of Expertise: 

          Executive Leadership 

          Innovation/Technology 

          Retail/Hospitality Sales 

          Strategy/M&A 

        	
          Board/Committee Membership  

          Board of Directors 

        	
          Public Board Memberships 

          -

           

        
	Securities Held as at June 24, 2020
	Number of subordinate voting shares	Number of multiple voting shares	Number of options	Number of DSUs	Number of RSUs	Number of PSUs
	 -	14,667,922	148,579	-	31,485	-
	 	 	 	 	 	 	 

   

  MANAGEMENT INFORMATION CIRCULAR 10

   

  
     

    
      
 

  

   

  

  	 	ELECTION OF DIRECTORS - NOMINEES

   

  	 	Jean Paul Chauvet	 
	
          Age 47 

          Québec, Canada 

          Director since 2013 

          Not Independent (Management) 

        	 
	
          Mr. Chauvet has been our President since 2016. Having joined us in the role of Chief Revenue Officer in
              2012, he became a member of our board of directors in 2013. Prior to joining Lightspeed, Mr. Chauvet held various leadership positions at Atex Group across Europe and Asia where his last role was CEO, EMEA. Prior to joining Atex, Mr. Chauvet
              was the VP, Sales and Marketing of Nstein Technologies and from 2000 to 2005, he was the VP, Sales and Marketing of IXIASOFT Technologies Inc. Mr Chauvet also serves on the boards of directors of Coveo Solutions Inc., a provider of AI-based
              search technologies which he joined in 2016, and Alaya Care Inc., a cloud-based home care software solutions provider. 

        
	
          Areas of Expertise: 

          Executive Leadership 

          Marketing/Advertising 

          Retail/Hospitality Sales 

          Governance/Risk Management 

        	
          Board/Committee Membership 

          Board of Directors 

        	
          Public Board Memberships 

          - 

        	 
	Securities Held as at June 24, 2020
	Number of subordinate 

              voting shares	Number of multiple 

              voting shares	Number of options	Number of DSUs	Number of RSUs	Number of PSUs
	1,370	-	1,179,666	-	26,569	-
	 	 	 	 	 	 	 	 	 

  

  	 	Marie-Josée Lamothe	 
	
          Age 52 

          Québec, Canada 

          Director since 2018 

          Independent 

        	 
	
          Ms. Lamothe has over 25 years of experience in the competitive digital and consumer products world
              (Google, L’Oréal, Procter & Gamble, Clairol). She is best noted for her expertise in Global Product Management and Digital Transformation. Ms. Lamothe is the President of Tandem International, an advisory firm specialized in omnichannel
              profitability. She is also a Professor of Practice at McGill University (Desautels Business Faculty) and the Director of McGill's Dobson Center for Entrepreneurship. From 2014 to 2018, she was a Managing Director at Google Canada and held
              several executive positions at L’Oréal between 2002 and 2014, from International Marketing Director in France, to Chief Marketing Officer and Chief Corporate Communications Officer in Canada. Ms. Lamothe also serves on the boards of
              Alimentation Couche-Tard Inc., Desjardins Group and Eddify NDT. Ms. Lamothe was previously a Director of Jean Coutu Group PJC Inc. from July 2016 until the privatization of the company in May 2018. Ms. Lamothe has received many accolades and
              awards including the Desautels Achievement award by McGill University and was named one of Top 10 Women in Tech in Canada by the Boardlist. She completed INSEAD’s, L’Oréal management program in France and earned a dual bachelor’s degree in
              economics and mathematics, with honors, and, more recently, an honoree diploma, both from the University of Montréal. 

        
	
          Areas of Expertise: 

          Executive Leadership 

          Retail/Hospitality Sales 

          Marketing/Advertising 

          Governance/Risk Management 

        	
          Board/Committee Membership 

          Board of Directors 

          CNG Committee 

        	
          Public Board Memberships 

          Alimentation Couche-Tard Inc. 

        	 
	Securities Held as at June 24, 2020
	Number of subordinate 

              voting shares	Number of multiple 

              voting shares	Number of options	Number of DSUs	Number of RSUs	Number of PSUs
	15,620	-	15,574	1,949	-	-
	 	 	 	 	 	 	 	 	 

   

  MANAGEMENT INFORMATION CIRCULAR 11

   

  

  
     

    
      
 

  

   

  

  	 	ELECTION OF DIRECTORS - NOMINEES

   

  	 	Paul McFeeters	 
	
          Age 65 

          Ontario, Canada 

          Director since 2018 

          Independent 

        	 
	Mr. McFeeters retired from OpenText in September 2014 where he had served as the Chief Financial Officer
            since June 2006. Mr. McFeeters has more than thirty years of C-level business experience, including previous employment as Chief Financial Officer of Platform Computing Inc., a grid computing software vendor from 2003 to 2006, and of Kintana
            Inc., a privately-held IT governance software provider, from 2000 to 2003. Mr. McFeeters also held President and CEO positions at MD Private Trust from 1997 to 2000. Between 1981 and 1996 Mr. McFeeters worked at Municipal Financial Corporation
            and held various progressive positions there including Chief Financial Officer, Chief Operating Officer, President and Chief Executive Officer. Mr. McFeeters has been a member of the board of directors of Constellation Software Inc., a
            diversified software company, since October 2014 and serves on its audit committee. From 2015 to August 2019, Mr. McFeeters was a board advisor for Hootsuite, a social media management company. From 2007 to January 2016, Mr. McFeeters was a
            member of the board of Blueprint Software Systems Inc., an enterprise requirements software solutions provider. Mr. McFeeters holds a B.B.A (Honours) from Wilfrid Laurier University and a MBA from Schulich School of Business at York University
            and is a Chartered Professional Accountant. 	 
	
          Areas of Expertise: 

          Executive Leadership 

          Accounting/Finance 

          Governance/Risk Management 

          Strategy/M&A 

        	
          Board/Committee Membership 

          Board of Directors 

          CNG Committee 

          Audit Committee, Chair 

        	
          Public Board Memberships 

          Constellation Software Inc. 

        	 
	Securities Held as at June 24, 2020
	Number of subordinate

              voting shares	Number of multiple

              voting shares	Number of options	Number of DSUs	Number of RSUs	Number of PSUs
	250,000	-	15,574	4,830	-	-
	 	 	 	 	 	 	 	 	 

   

  	 	Rob Williams	 
	
          Age 52

            Washington, United States

            Director since 2018 

          Independent 

        	 
	Mr. Williams has over 20 years of online (Amazon), big box (Best Buy) and specialty
            retail (Magnolia Hi-Fi) experience. In his near decade at Amazon (2006 to 2015), Mr. Williams held five senior leadership positions on both the Retail and Seller teams. In his last role, Mr. Williams led Amazon’s Tier 1 Vendor team for Global
            Vendor Management. Prior to that, Mr. Williams led three business teams for Amazon’s Seller Fulfillment by Amazon (FBA) division: the Seller Reimbursement and Recovery/Liquidations team, the Contact Reduction team, and the Defect Reduction
            team. Previously, he led the FBA Product Development Roadmap team. Before that role, Mr. Williams led Product Management for Amazon’s Competitive Strategy and Negotiations Team. Prior to Amazon, Mr. Williams was on the leadership team of
            Magnolia Hi-Fi when they were acquired by Best Buy. Mr. Williams was promoted to National Director at Best Buy, where he led Sales Development for the Magnolia Home Theater store within a store project. Mr. Williams was at Magnolia Hi-Fi and
            Best Buy from September 1994 to June 2006. Prior to that in 1994 he was a criminal prosecutor under the City of Seattle’s Trial Advocacy Program. Mr. Williams holds his Bachelor of Arts degree in Business Administration from the University of
            Washington and his Juris Doctor, Law from the Willamette University College of Law. He is also a guest lecturer on International Business for the University of Washington School of Business Administration and a keynote speaker on how to build a
            company culture of Disruptive Innovation and consults worldwide on eCommerce, retail and technology. Caisse de dépôt et placement du Québec has confirmed to the Company that Rob Williams will be its nominee for election to the Board at the
            Meeting.	 
	
          Areas of Expertise: 

          Executive Leadership 

          Retail/Hospitality Sales 

          Marketing/Advertising 

          Innovation/Technology 

        	
          Board/Committee Membership 

          Board of Directors 

          Audit Committee 

        	
          Public Board Memberships 

          - 

        	 
	Securities Held as at June 24, 2020
	Number of subordinate 

              voting shares	Number of multiple 

              voting shares	Number of options	Number of DSUs	Number of RSUs	Number of PSUs
	93,915	-	15,574	3,442	-	-
	 	 	 	 	 	 	 	 	 

   

  MANAGEMENT INFORMATION CIRCULAR 12

   

  
     

    
      
 

  

   

  

   

  

  		ELECTION OF DIRECTORS - NOMINEES

  

   

  Corporate Cease Trade Orders and Bankruptcies

   

  To the knowledge of the Company and based upon information provided by
      the proposed director nominees, none of the Company’s proposed director nominees is, as at the date of this Circular, or has been within the 10 years before the date of this Circular: (a) a director, chief executive officer or chief financial officer
      of any company that was subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; (b) was subject to an order that was issued after the
      director or executive officer 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; or (c) a director or executive officer of any company that, while that person was acting in that capacity, or within a year of that person 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. For the purposes of this paragraph, “order”
      means a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation, in each case, that was in effect for a period of more than 30 consecutive days.

   

  Individual Bankruptcies

   

  To the knowledge of the Company and based upon information provided by
      the proposed director nominees, none of the Company’s proposed director nominees is, as at the date of this Circular, or has been within the 10 years before the date of this Circular, 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 the assets of that individual.

   

  Penalties or Sanctions

   

  To the knowledge of the Company and based upon information provided by
      the proposed director nominees, none of the Company’s proposed director nominees has been subject to 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 been subject to any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor making an investment decision.

   

  Appointment of Auditors

   

  PricewaterhouseCoopers LLP (“PwC”), chartered accountants, has
      served as auditors of the Company since the fiscal year ending on March 31, 2016. In the fiscal year ending on March 31, 2020 ("Fiscal 2020"), in addition to retaining PwC to report upon the annual consolidated financial statements of the
      Company, the Company retained PwC to provide various audit, audit-related, and non-audit services.

   

  Under its charter, the audit committee of the Company (the “Audit
        Committee”) is required to pre-approve all non -audit services to be performed by the external auditors in relation to the Company, together with approval of the engagement letter for such non-audit services and estimated fees thereof.
      Additional details regarding the Audit Committee and the above-mentioned fees can be found in the section entitled “Audit Committee” of the Company’s annual information form, available under the Company’s profile on SEDAR at www.sedar.com and on the
      Company’s website at investors.lightspeedhq.com.

   

  Except where authorization to vote with respect to the appointment
        of auditors is withheld, the persons designated in the enclosed form of proxy or voting instruction form intend to vote FOR the reappointment of PwC, as auditors of the Company, to hold office until the close of the next annual meeting of
        shareholders at such remuneration as may be recommended by the Audit Committee and fixed by the Board.

   

  MANAGEMENT INFORMATION CIRCULAR 13

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Conversion of the Company’s Amended and Restated Omnibus Incentive
        Plan

   

  The Company currently has three equity incentive plans in place,
      namely the option plan dated October 19 2012, as amended on January 1, 2015 and on March 15, 2019 (the “2012 Legacy Option Plan”), the 2016 option plan, as amended on March 15, 2019 (the “2016 Legacy Option Plan”; and collectively with the 2012
      Legacy Option Plan, the “Legacy Option Plans”) and the Amended and Restated Omnibus Incentive Plan dated March 15, 2019 as amended on November 18, 2019.

   

  The Legacy Option Plans were amended concurrently with closing of the
      IPO such that outstanding options granted thereunder are exercisable for subordinate voting shares, and no further awards can be made under the Legacy Option Plans. At the same time, the Company adopted an omnibus incentive plan which allows the
      Board of Directors of the Company to grant long -term equity-based awards to eligible participants. See “Executive Compensation – Equity Incentive Plans” for more details on the Company’s equity incentive plans.

   

  Equity incentives are a critical form of compensation for the Company,
      as they enable it to attract and retain top talent, align pay with both corporate performance and shareholder interests and support and sustain the organic growth of the Company and its employee base. Furthermore, the Company uses equity incentives
      to support its growth through selective acquisitions, particularly to retain designated key employees and as a way to incentivize such employees to remain with the Company following closing of the relevant acquisition. As a result of the foregoing,
      since its approval on March 7, 2019, a significant number of grants have been made by the Company under the Amended and Restated Omnibus Incentive Plan. As of March 31, 2020, the number of subordinate voting shares reserved for issuance under the
      Amended and Restated Omnibus Incentive Plan and the Legacy Option Plans, collectively, was 8,700,311 (representing approximately 9.44% of the issued and outstanding subordinate voting shares and multiple voting shares as at that date), of which only
      1,438,340 remained available for grant.

   

  In order for the Company’s equity incentive plans to continue to
      support the Company’s growth and compensation philosophy going forward, the Board of Directors and the CNG Committee, with the assistance of Hugessen Consulting Inc. (“Hugessen”), developed a new equity incentive plan reserve proposal. After a
      comprehensive review of equity granting practices of industry peers and a detailed forecast of future equity incentive requirements of the Company, taking into account, among other things, the Company’s growth strategy, it was determined that the
      Amended and Restated Omnibus Incentive Plan of the Company should be amended and restated so as to convert it from a “fixed plan” to a “rolling plan”, whereby the maximum number of subordinate voting shares which may be reserved and set aside for
      issuance under such plan and the Legacy Option Plans would be changed from a fixed maximum of 10,185,862 subordinate voting shares (in the aggregate) to a maximum aggregate number of subordinate voting shares equal to 15% of all subordinate voting
      shares and multiple voting shares issued and outstanding from time to time, on a non-diluted basis. Under the Amended and Restated Omnibus Incentive Plan, as further amended, the number of awards available for grant thereunder will increase as the
      number of issued and outstanding subordinate voting shares increases from time to time, including as a result of the issuance of subordinate voting shares upon exercise or settlement of awards granted under the Amended and Restated Omnibus Incentive
      Plan and the Legacy Option Plans. Similarly, should an outstanding award under the Legacy Option Plans or the Amended and Restated Omnibus Incentive Plan, as further amended, expire or be terminated, surrendered or cancelled for any reason without
      having been exercised or settled in full, or if subordinate voting shares acquired pursuant to an award subject to forfeiture are forfeited, the subordinate voting shares covered by such award, if any, will continue to be available for issuance under
      the Amended and Restated Omnibus Incentive Plan.

   

  On June 25, 2020, the Board of Directors approved the conversion of
      the Amended and Restated Omnibus Incentive Plan from a “fixed plan” to a “rolling plan” as described above and the related proposed amendments to the Amended and Restated Omnibus Incentive Plan. Subject to shareholder approval as set forth herein and
      in accordance with the rules of the TSX, the Amended and Restated Omnibus Incentive Plan will be amended to give effect to such conversion and proposed amendments. In connection therewith, the Company notes that the “insider participation limit” (as
      that expression is defined in the TSX Company Manual) set forth in the Amended and Restated Omnibus Incentive Plan and described herein under “Equity Incentive Plans – Amended and Restated Omnibus Incentive Plan – Insider Participation Limit” will
      remain unchanged.

   

  MANAGEMENT INFORMATION CIRCULAR 14

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Other than as described above, all other principal terms and
      conditions of the Amended and Restated Omnibus Incentive Plan will remain the same. See “Executive Compensation – Equity Incentive Plans” for a summary of the terms of the equity incentive plans of the Company.

   

  As mentioned above and in accordance with the rules of the TSX, to be
      effective, the proposed amendments to the Amended and Restated Omnibus Incentive Plan must be approved by an ordinary resolution of the shareholders of the Company, adopted by a majority of the votes cast by the shareholders attending the Meeting or
      represented by proxy). Attached as Schedule “B” of this Circular is the full text of the proposed resolution in respect of amendments to the Company’s Amended and Restated Omnibus Incentive Plan to be considered at the Meeting to convert the plan
      from a “fixed plan” to a “rolling plan”.

   

  If approval is obtained at the Meeting, the Company will not be
      required to seek further approval of the grant of unallocated awards under the Amended and Restated Omnibus Incentive Plan, as further amended, until the Company’s annual meeting of shareholders to be held in 2023 (provided that such meeting is held
      on or prior to August 6, 2023).

   

  The Board of Directors has determined that the proposed amendments
        to the Amended and Restated Omnibus Incentive Plan, as further detailed above, are in the best interests of the Company and its shareholders, and recommends that shareholders vote FOR the resolution set forth in Schedule “B” to this Circular
        approving the conversion of the Amended and Restated Omnibus Incentive Plan from a “fixed plan” to a “rolling plan”.

   

  COMPENSATION OF DIRECTORS

   

  The Company’s director compensation program is designed to attract and
      retain the most qualified individuals to serve on the Board.

   

  The Board, through the CNG Committee is responsible for reviewing and
      approving any changes to the directors' compensation arrangements. In consideration for serving on the Board, each director that is not an employee (an "Outside Director") will be paid an annual cash retainer and an annual equity retainer, and
      will be reimbursed for their reasonable out-of-pocket expenses incurred while serving as directors.

   

  In the fiscal year ended March 31, 2019 (“Fiscal 2019”), the
      CNG Committee retained Hugessen as independent advisor to review the compensation of Outside Directors. In its review, Hugessen benchmarked the Company’s Outside Director compensation structure against market compensation data gathered from the same
      Comparator Group (as defined in the section entitled "Market Positioning and Benchmarking") used to benchmark executive compensation. Based on the results of Hugessen's benchmarking studies, the CNG Committee then recommends to the Board any
      adjustments to the Outside Directors' compensation that may be necessary or appropriate to achieve the objectives of the Company's director compensation program.

   

  Annual Retainers

   

  Outside Directors will be entitled to be paid as members of the Board,
      and, if applicable, as members of any committee of the Board, the following annual retainers:

   

  MANAGEMENT INFORMATION CIRCULAR 15

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

    

    

  	Position	Type of
              Fee	Amount per Year
	Chair of the Board1	Cash Retainer2	$55,000
	 	Equity Retainer3	$115,000
	Member of the Board	Cash Retainer2	$40,000
	 	Equity Retainer4	$80,000
	Audit Committee Chair	Cash Retainer2	$15,000
	Audit Committee Member	Cash Retainer2	$7,500
	CNG Committee Chair	Cash Retainer2	$7,500
	CNG Committee Member	Cash Retainer2	$4,000

   

  	1.	The current Chair of the Board, Mr. Pichette, has elected to forego to receive his cash retainer and his equity retainer.

  	2.	Each Board member may elect to receive up to 100% of his or her cash retainer in the form of DSUs.

  	3.	The equity retainer of the Chair of the Board is comprised of $75,000 in the form of DSUs and $40,000 in the form of options.

  	4.	The equity retainer of each non-Chair Board member is comprised of $40,000 in the form of DSUs and $40,000 in the form of options.

   

  The Company does not offer a meeting attendance fee for Board members.
      The total retainer is deemed to be full payment for the role of Director. An exception to this approach can be made in the event of a special transaction or other special circumstance that would require more meetings than are typically required.

   

  The cash retainer and DSU portion of the equity retainer are paid on a
      quarterly basis with the number of DSUs to be issued based on the volume weighted average trading price on the TSX for the five trading days prior to such issuance. While the DSUs vest immediately, they are only paid out following the director
      ceasing to be on the Board. The options portion of the equity retainer is paid annually with the number of options to be issued based on the volume weighted average trading price on the TSX for the five trading days prior to such issuance. Options
      vest on the date of the first annual meeting of shareholders after their grant date.

   

  Messrs. Dasilva and Chauvet do not and will not receive additional
      compensation for serving as directors on the Board.

   

  A summary of the total compensation earned by each Outside Director
      during Fiscal 2020 can be found in the section entitled "Total Compensation of Outside Directors".

   

  Director Share Ownership Guidelines

   

  The Board has adopted share ownership guidelines pursuant to which
      each Outside Director is required to own, directly or indirectly, a minimum of securities of the Company representing an amount equivalent in value to four times his or her annual cash retainer, through shares or DSUs (options are not included in the
      calculation of each Outside Director's share ownership requirements). The value of the securities is based on the greater of the market value of the shares and/or DSUs and the purchase price of the securities. Such ownership must have been achieved
      within five years of the later of (i) March 22, 2019 and (ii) the date the director was first appointed or elected to the Board, and subsequently be maintained for the duration of his or her tenure as director. The Board has resolved to waive the
      application of the share ownership guidelines to Mr. Pichette for so long as he continues to forego to receive his equity retainer for service on the Board, including as its chair, and its committees.

   

  The below table describes the total equity holdings and compliance with the share ownership
      guidelines of each Outside Director as of the date hereof:

   

  MANAGEMENT INFORMATION CIRCULAR 16

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

  	Name	
          Subordinate

          Voting

          Shares

        	
          Stock

          Options

        	DSUs	
          Market

          Value of

          Equity1

          ($)

        	
          Minimum

          Ownership

          Requirement2

          ($)

        	% of Achievement3
	Patrick Pichette4	-	-	-	-	-	-
	Marie-Joseé Lamothe	15,620	15,574	1,949	235,799	176,000	134%
	Paul McFeeters	250,000	15,574	4,830	3,420,149	236,000	1,449%
	Rob Williams	93,915	15,574	3,442	1,306,657	190,000	688%

   

  	1.	Market value of equity is the sum of (a) the value of subordinate voting shares and (b) the value of DSUs that have not yet been paid out or
            distributed calculated based on the value of the subordinate voting shares, in each case where the value of the subordinate voting shares is based on a price of C$19.04 per subordinate voting share, being the closing price of the subordinate
            voting shares on the TSX on March 31, 2020, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020.
            Stock options are excluded from this calculation since we do not count them towards the calculation of an Outside Director's share ownership requirements.

  	2.	Each Outside Director is required to own, directly or indirectly, a minimum of securities of the Company representing an amount equivalent in value to four times his or her
            annual cash retainer.

  	3.	The percentage of achievement is calculated by dividing the sum of the market value of DSUs and the greater of (a) the market value of the
            subordinate voting shares and (b) the purchase price of the subordinate voting shares, then expressing the total as a percentage of the minimum ownership requirement applicable to such Outside Director. Stock options are excluded from the
            calculation of an Outside Director's share ownership requirements.

  	4.	The Board has resolved to waive the application of the share ownership guidelines to Mr. Pichette for so long as he continues to forego to receive his equity retainer for
            service on the Board, including as its chair, and its committees.

   

  Equity Incentive Plan

   

  The Company has adopted the Amended and Restated Omnibus Incentive Plan
      which allows for a variety of equity-based awards that provide different types of incentives to be granted to directors, executive officers, employees and consultants of the Company, including options, RSUs, PSUs and DSUs, collectively referred to as
      "awards". Detailed information about the Amended and Restated Omnibus Incentive Plan can be found in the Compensation Discussion and Analysis in the section entitled " Amended and Restated Omnibus Incentive Plan".

   

  Outstanding Share-Based Awards and Option-Based Awards

   

  The following table indicates all outstanding option-based and
      share-based awards granted to Outside Directors as of March 31, 2020:

   

  MANAGEMENT INFORMATION CIRCULAR 17

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

  	Name	Option-Based Awards	Share-Based Awards
	
          Number of

          Securities

          underlying

          Unexercised

          Options1

        	
          Option

          Exercise Price

        	Expiration Date	
          Value of

          Unexercised In-

          the-Money

          Options2

          ($)

        	
          Share Based

          Awards3

        	
          Value of Share-

          Based Awards Not

          Paid Out or

          Distributed4

          ($)

        
	Patrick Pichette5	-	-	-	-	-	-
	Marie-Josée Lamothe	7,5006	$5.00	August 3, 2025	63,160	1,2549	16,830
	4,2097	C$16.00	March 15, 2026	9,019
	3,8658	C$43.20	August 26, 2026	0
	Paul McFeeters	7,50010	$6.00	November 8, 2025	55,660	3,10813	41,713
	4,20911	C$16.00	March 15, 2026	9,019
	3,86512	C$43.20	August 26, 2026	0
	Rob Williams	7,50014	$5.00	August 3, 2025	63,160	2,74716	36,868
	4,20915	C$16.00	March 15, 2026	9,019
	3,86517	C$43.20	August 26, 2026	0

   

  	1.	The options reflected in this column represent grants of options under the 2012 Legacy Option Plan and the Amended and Restated Omnibus Incentive
            Plan. For a description of the terms of the options granted under the 2012 Legacy Option Plan and the Amended and Restated Omnibus Incentive Plan, see “Equity Incentive Plans”.

  	2.	The value of unexercised in-the-money options is calculated based on the difference between the strike price of the option and the closing price
            of the subordinate voting shares on the TSX on March 31, 2020, being C$19.04 per subordinate voting share, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for
            conversion of Canadian dollars into U.S. dollars on March 31, 2020.

  	3.	The awards reflected in this column represent quarterly grants of DSUs under the Amended and Restated Omnibus Incentive Plan. Quarterly DSU
            grants are made on the first business day immediately following the last day of each fiscal quarter of the Company and are made in respect of services provided by the Outside Director during the preceding fiscal quarter. For a description of
            the terms of the DSUs granted under the Amended and Restated Omnibus Incentive Plan, see “Equity Incentive Plans”.

  	4.	The value of share-based awards that have not yet been paid out or distributed is calculated based on the closing price of the subordinate voting
            shares on the TSX on March 31, 2020, being C$19.04 per subordinate voting share, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into
            U.S. dollars on March 31, 2020.

  	5.	Mr. Pichette has elected to forego to receive his cash retainer and equity retainer.

  	6.	On August 3, 2018, Ms. Lamothe received a grant of 30,000 options (7,500 options after giving effect to the 4-to-1 consolidation of the
            Company’s common shares which occurred in connection with its IPO) to acquire common shares under the 2012 Legacy Option Plan in connection with her appointment to the Board.

  	7.	On March 7, 2019, Ms. Lamothe received a grant of 4,209 options to acquire subordinate voting shares under the Amended and Restated Omnibus
            Incentive Plan in connection with the Company’s IPO.

  	8.	On August 26, 2019, Ms. Lamothe received a grant of 3,865 options to acquire common shares under the Amended and Restated Omnibus Incentive Plan
            on account of her annual retainer.

  	9.	On April 1, 2019, July 2, 2019, October 1, 2019 and January 2, 2020, Ms. Lamothe received grants of 114, 372, 416 and 352 DSUs, respectively,
            under the Amended and Restated Omnibus Incentive Plan on account of her annual retainer.

  	10.	On November 8, 2018, Mr. McFeeters received a grant of 30,000 options (7,500 options after giving effect to the 4-to-1 consolidation of the
            Company’s common shares which occurred in connection with its IPO) to acquire common shares under the 2012 Legacy Option Plan in connection with his appointment to the Board.

  	11.	On March 7, 2019, Mr. McFeeters received a grant of 4,209 options to acquire subordinate voting shares under the Amended and Restated Omnibus
            Incentive Plan in connection with the Company’s IPO.

  	12.	On August 26, 2019, Mr. McFeeters received a grant of 3,865 options to acquire subordinate voting shares under the Amended and Restated Omnibus
            Incentive Plan on account of his annual retainer.

  	13.	On April 1, 2019, July 2, 2019, October 1, 2019 and January 2, 2020, Mr. McFeeters received grants of 282, 922, 1,031 and 873 DSUs,
            respectively, under the Amended and Restated Omnibus Incentive Plan on account of her annual retainer.

  	14.	On August 3, 2018, Mr. Williams received a grant of 30,000 options (7,500 options after giving effect to the 4-to-1 consolidation of the
            Company’s common shares which occurred in connection with its IPO) to acquire common shares under the 2012 Legacy Option Plan in connection with his appointment to the Board.

  	15.	On March 7, 2019, Mr. Williams received a grant of 4,209 options to acquire subordinate voting shares under the Amended and Restated Omnibus
            Incentive Plan in connection with the Company’s IPO.

  	16.	On April 1, 2019, July 2, 2019, October 1, 2019 and January 2, 2020, Mr. Williams received grants of 250, 815, 911 and 771 DSUs, respectively,
            under the Amended and Restated Omnibus Incentive Plan on account of her annual retainer.

  	17.	On August 26, 2019, Mr. Williams received a grant of 3,865 options to acquire common shares under the Amended and Restated Omnibus Incentive
            Plan on account of his annual retainer.

   

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  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Total Compensation of Outside Directors

   

  The following table shows the total compensation paid to each Outside Director in Fiscal
      2020:

   

  	Name	
          Fees Paid

          ($)

        	
          Share Based

          Awards1

          ($)

        	
          Option-Based

          Awards2

          ($)

        	
          Non-Equity

          Incentive Plan

          Compensation 

        	
          Pension

          Value 

        	
          All Other

          Compensation

        	Total

              ($)
	Patrick Pichette3	-	-	-	-	-	-	 
	Marie-Josée Lamothe	34,956	31,778	40,000	-	-	-	106,734
	Paul McFeeters4	-	78,650	40,000	-	-	-	118,650
	Rob Williams5	-	69,514	40,000	-	-	-	109,514

   

  	1.	Share-based awards paid during Fiscal 2020 were DSUs granted on April 1, 2019, July 2, 2019, October 1, 2019 and January 2, 2020, respectively.
            The value of share-based awards paid during Fiscal 2020 is calculated based on the grant date fair value of the awards granted under the Amended and Restated Omnibus Incentive Plan. The grant date fair value of an award is equal to the volume
            weighted average trading price on the TSX for the five days prior to the grant date and differs from the accounting fair value determined in accordance with IFRS 2 Share-based Payment which is calculated based on the closing price of
            the shares on the TSX on the grant date.

  	2.	Option-based awards paid during Fiscal 2020 were stock options granted on August 26, 2019. The value of option-based awards paid during Fiscal
            2020 is calculated based on the grant date fair value of the awards granted under the Amended and Restated Omnibus Incentive Plan, which has been calculated using the Black-Scholes method based on the volume weighted average trading price on
            the TSX for the five trading days prior to the grant date. The fair value on the grant date is different from the value determined in accordance with IFRS 2 Share-based Payment because the accounting fair value determined in accordance
            therewith is calculated based on the closing price of the shares on the TSX on the grant date as opposed to the volume weighted average trading price on the TSX for the five trading days prior to the grant date.

  	3.	Mr. Pichette has elected to forego to receive his cash retainer and equity retainer.

  	4.	Mr. McFeeters elected to receive his cash retainer in the form of DSUs.

  	5.	Mr. Williams elected to receive his cash retainer in the form of DSUs.

   

  Outside Directors do not receive non-equity incentive plan compensation, pensions or any
      other compensation. In addition, each Outside Director is reimbursed for reasonable out of pocket expenses.

   

  MANAGEMENT INFORMATION CIRCULAR 19

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

   

  EXECUTIVE COMPENSATION

   

  Introduction

   

  The following discussion describes the significant elements of the
      compensation of the Chief Executive Officer, President, Chief Financial Officer, Chief Product Officer and Senior Vice President of Global Sales of the Company (collectively, the “named executive officers” or “NEOs”), namely:

   

  	 	●	Dax Dasilva, Chief Executive Officer;

  	 	●	Jean Paul Chauvet, President;

  	 	●	Brandon Nussey, Chief Financial Officer;

  	 	●	Jim Texier, Chief Product Officer; and

  	 	●	Julian Teixeira, Senior Vice President of Global Sales.

   

  Overview

   

  Lightspeed operates in a dynamic and rapidly evolving market. To
      succeed in this environment and to achieve its business and financial objectives, the Company needs to attract, retain and engage a highly talented team of executive officers. We expect our team to possess and demonstrate strong leadership and
      management capabilities, as well as foster our culture, which is at the foundation of our success and remains a pivotal part of our everyday operations.

   

  We will continue to evaluate our philosophy and compensation program
      as circumstances require and plan to continue to review compensation on an annual basis. As part of this review process, we expect to be guided by the philosophy and objectives outlined above, as well as other factors which may become relevant, such
      as the cost to us if we were required to find a replacement for a key employee.

   

  Compensation Discussion and Analysis

   

  Compensation Philosophy and Objectives

   

  Lightspeed seeks to attract, retain and engage long-term business
      builders, who, beyond compensation, are motivated by personal growth and development. Executive officers are expected to show exceptional leadership and consistently demonstrate company values. The compensation framework aims to ensure that a
      significant component of compensation is comprised of “at-risk” compensation which tracks factors that influence company performance and stakeholder value. Major components include base salary, and short-term and long-term incentive plans.

   

  The Lightspeed executive compensation program is designed to achieve the following
      objectives:

   

  	 	●	Provide market-competitive compensation opportunities to attract, retain and motivate high performing and experienced executive officers, whose
            knowledge, skills and level of impact are critical to our success;

  	 	●	Engage executive officers in the achievement of Lightspeed’s business objectives, encouraging teamwork, the building of a high performing organization, and nurturing
            company values; and

  	 	●	Align the interests of executive officers with those of the Company’s stakeholders by providing a meaningful portion of compensation tied to the short-term and long-term
            objectives of the business.

   

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  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Compensation Governance

   

  Hedging Prohibition

   

  The Company’s insider trading policy provides that all insiders of
      Lightspeed, including its directors and officers, are prohibited from buying, selling or entering into (i) any short sale of securities of Lightspeed, (ii) any put options, call options or other rights or obligations to buy or sell securities of
      Lightspeed, (iii) any derivative instruments, agreements or securities, the market price, value or payment obligations of which are derived from, referenced to or based on the value of securities of Lightspeed, and (iv) any other derivative
      instruments, agreements, arrangements or understandings (commonly known as equity monetization transactions) the effect of which is to alter, directly or indirectly, the director's or officer's economic interest in securities of Lightspeed or
      economic exposure to the Company.

   

  Clawback Policy

   

  The Company implemented a formal clawback policy concurrently with the
      closing of the IPO as an additional approach to mitigate compensation risk. The clawback policy enables the Board to require reimbursement of all or a portion of compensation received by an executive officer pursuant to awards made under the
      Company’s short-term and long-term incentive plans upon material financial restatements due to an executive officer engaging in prohibited conduct causing, in whole or in part, the need for the restatement.

   

  Compensation-Setting Process

   

  The compensation, nominating and governance committee (the "CNG
        Committee") is responsible for assisting the Board in fulfilling its governance and supervisory responsibilities, and overseeing the Company’s human resources, succession planning, and compensation policies, processes and practices. The CNG
      Committee also ensures that compensation policies and practices provide an appropriate balance of risk and reward consistent with the Company’s risk profile.

   

  The Board has established a written charter for the CNG Committee
      setting out its responsibilities for administering the Company’s compensation programs and reviewing and making recommendations to the Board concerning the level and nature of the compensation payable to the directors and executive officers of the
      Company. The CNG Committee's oversight will include setting objectives, evaluating performance, and ensuring that total compensation paid to the Company’s NEOs and various other key executive officers and key managers is fair, reasonable and
      consistent with the objectives of the Company’s philosophy and compensation program. The CNG Committee is responsible for reviewing and assessing at least annually the performance, effectiveness and contribution of the Board, Board committees and the
      directors themselves and reporting on such review and assessment to the Board. This shall include a review of the Board's mandate and the charters of each committee thereof. The CNG Committee will also be responsible for overseeing the onboarding of
      new directors and continuing education programs for the directors of the Company.

   

  At the end of the most recently completed fiscal year, the CNG
      Committee was composed of three directors, all of whom are independent directors, namely Patrick Pichette (Chair), Marie-Josée Lamothe and Paul McFeeters. None of the members of the Committee is an acting chief executive officer of another company.
      The Board of Directors believes that the Committee collectively has the knowledge, experience and background required to fulfill its mandate.

   

  Compensation Consultant

   

  In Fiscal 2019, the Company retained Hugessen, an independent
      consulting firm, to provide services to the Company in connection with executive officer and director compensation matters for Fiscal 2020, including, among other things, the following:

   

  MANAGEMENT INFORMATION CIRCULAR 21

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

   

  	 	●	establishing a peer comparator group of public companies with similar attributes to the Company for the purpose of benchmarking its compensation policies and plans;

  	 	●	designing a new equity-based, long-term incentive compensation framework for the executive officers and directors of the Company;

  	 	●	setting a compensation program for executives in Fiscal 2020; and

  	 	●	designing a compensation structure for non-executive directors.

   

  The Company incurred $55,961 in fees for services rendered by Hugessen
      in Fiscal 2019 and no fees in Fiscal 2020.

   

  Market Positioning and Benchmarking

   

  As part of the executive compensation review and design process, the
      CNG Committee established a peer group (the “Comparator Group”) to benchmark compensation. The companies forming part of the Comparator Group identified by the Company are expected to reflect the financial situation of Lightspeed as a
      publicly-listed organization and to have a complexity of operations and technologies comparable to Lightspeed.

   

  The selection criteria used to determine the composition of the Comparator Group are the
      following:

   

  	 	●	companies competing for executive and technical software development talent in North America;

  	 	●	companies with similar scope and complexity; and

  	 	●	companies of similar size, measured by revenue and market capitalization.

   

  The companies forming the Comparator Group meet all or some of the foregoing criteria and
      are listed below:

   

  	Comparator Group
	Agilysys, Inc.	Kinaxis Inc.
	Cardtronics plc	MINDBODY, Inc.
	Cass Information Systems, Inc.	Priority Technology Holdings, Inc.
	Everi Holdings Inc.	Solium Capital Inc.
	EVO Payments, Inc.	SPS Commerce, Inc.
	GreenSky, Inc.	The Descartes Systems Group Inc.
	Instructure, Inc.	 

   

  This Comparator Group, potentially supplemented by other sources of
      competitive pay information, is an important input in establishing compensation levels and structure for Fiscal 2020 and beyond. The CNG Committee, in accordance with its compensation philosophy, will periodically assess how competitive compensation
      is in order to make compensation-related decisions.

   

  Principal Elements of Compensation

   

  The compensation of the Company’s executive officers includes three
      major elements: (i) base salary; (ii) short-term incentives, consisting of annual bonuses or, for certain employment categories, commission-based payments; and (iii) long-term equity incentives, consisting of awards under our equity incentive plans.
      Perquisites and personal benefits are not a significant element of compensation of the executive officers of the Company. Each compensation component has a different function, but all elements are designed to work in concert to maximize Company and
      individual performance.

   

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  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Base Salary

   

  Base salary is provided as a fixed source of compensation for the
      Company’s executive officers. Base salaries for executive officers are established based on the scope of their responsibilities, competencies and their prior relevant experience, taking into account compensation paid in the market for similar
      positions and the market demand for such executive officers. An executive officer's base salary is determined by taking into consideration the executive officer’s total compensation package and the Company's overall compensation philosophy.

   

  Adjustments to base salaries will be determined annually and base
      salaries may be increased based on factors such as the executive officer's success in meeting or exceeding individual objectives and an assessment of the competitiveness of the then-current compensation. Additionally, base salaries can be adjusted as
      warranted throughout the year to reflect promotions or other changes in the scope or breadth of an executive officer's role or responsibilities, as well as to maintain market competitiveness.

   

  Short-Term Incentive Compensation

   

  The NEOs of the Company, other than Mr. Dasilva, our Chief Executive
      Officer (“CEO”), and other executive officers are entitled to annual bonuses or commission-based compensation, depending on employee function. Annual bonuses and commission plans are designed to motivate executive officers to meet the
      Company’s business and financial objectives generally and annual financial performance targets in particular.

   

  On account of his short-term incentive compensation for Fiscal 2020,
      our CEO, Mr. Dasilva, was granted a fixed number of performance-vesting stock options (the “Performance Options”) with a value equal to half of his then-current annual base salary of C$500,000. The Performance Options vest, upon the CNG
      Committee’s determination, in its sole discretion, as to Mr. Dasilva’s satisfaction of the performance criteria established therefor by the CNG Committee and in the number determined by the CNG Committee based on such satisfaction. This determination
      must be made prior to June 30, 2020 and any Performance Options that remain unvested from the grant after such determination by the CNG Committee are automatically cancelled and forfeited. Detailed information about the performance criteria
      established by the CNG Committee for the Performance Options can be found in the Compensation Discussion and Analysis in the section entitled "CEO Performance-Based Compensation".

   

  Long-Term Incentive Compensation

   

  Equity-based awards are a variable element of compensation that allows
      the Company to incentivize and retain its executive officers for their sustained contributions to the Company. Equity awards reward performance and continued employment by an executive officer, with associated benefits to us of attracting and
      retaining employees. We believe that options, restricted share units (“RSUs”) and performance share units (“PSUs”) provide executive officers with a strong link to long-term corporate performance and the creation of shareholder value.
      In connection with the grants of equity-based awards, the CNG Committee determines the grant size and terms to be recommended to the Board. As part of their annual review of the Company’s compensation practices, the CNG Committee and the Board
      determine the precise structure of long-term incentive compensation both in terms of quantum and instrument mix. For Fiscal 2020, the NEOs of the Company and other executive officers each received long-term incentive compensation grants equal to
      their base salary and comprised half of stock options and half of RSUs, except that Mr. Dasilva, the Company’s CEO, received a long-term incentive compensation grant equal to two times his then-base salary and comprised half of stock options and half
      of RSUs.

   

  CEO Share Ownership Guidelines

   

  The Board has adopted share ownership guidelines with effect as of May
      29, 2019 pursuant to which the CEO is required to own, directly or indirectly, a minimum of securities of the Company representing an amount equivalent in value to five times his or her annual base salary, through multiple voting shares, subordinate
      voting shares, or restricted share units (options are not included in the calculation of the CEO’s share ownership requirements), such ownership to be achieved within five years of the later of (i) the date these guidelines were adopted by the Board,
      (ii) the date the CEO was first appointed to the role of CEO, and (iii) solely with respect to any increase in the base salary of the CEO, the date such increase is effective. While at the time of the adoption of the CEO share ownership guidelines by
      the Board, our CEO, Mr. Dasilva, was earning an annual base salary of C$500,000, Mr. Dasilva agreed to a temporary and voluntary reduction of his annual base salary to C$1 in response to the global pandemic caused by COVID-19, which voluntary
      reduction was retroactive to January 1, 2020. Notwithstanding this voluntary reduction in his base salary, Mr. Dasilva continues to own, directly or indirectly, 14,667,922 multiple voting shares of the Company, putting him in excess of five times the
      annual base salary to which he was entitled at the time of the adoption of the CEO share ownership guidelines.

   

  MANAGEMENT INFORMATION CIRCULAR 23

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

   

  The below chart sets out the total market value of the equity owned, directly or
      indirectly, by Mr. Dasilva as of March 31, 2020.

   

  	
          Multiple

          of Base

          Salary1

        	
          Minimum

          Equity

          Ownership

          Level

          Required1

          ($)

        	
          Multiple

          Voting

          Shares

        	
          Market Value

          of Multiple

          Voting

          Shares2

          ($)

        	
          Stock

          Options

        	
          Market Value

          of

          Unexercised

          In-the-Money

          Options3

          ($)

        	RSUs	
          Market

          Value of

          RSUs2

          ($)

        	
          Market

          Value of

          Equity4

          ($)

        	
          % of

          Achievement5

        
	5x	1,762,250	14,667,922	196,862,523	78,8646	0	16,5127	221,612	197,084,135	11,184%

   

  	1.	Represents five times Mr. Dasilva’s base salary of C$500,000 converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the
            Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020.

  	2.	Based on a price of C$19.04 per subordinate voting share, being the closing price of the subordinate voting shares on the TSX on March 31, 2020, converted into U.S. dollars
            using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020.

  	3.	The value of unexercised in-the-money options is calculated based on the difference between the strike price of the option and the closing price of the subordinate voting
            shares on the TSX on March 31, 2020, being C$19.04 per subordinate voting share, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into
            U.S. dollars on March 31, 2020.

  	4.	Market value of equity is the sum of (a) the value of subordinate voting shares and (b) the value of RSUs that have not yet been paid out or distributed calculated based on
            the value of the subordinate voting shares, in each case where the value of the subordinate voting shares is based on a price of C$19.04 per subordinate voting share, being the closing price of the subordinate voting shares on the TSX on March
            31, 2020, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020. Stock options are excluded from this
            calculation since we do not count them towards the calculation of the CEO’s share ownership guidelines.

  	5.	The percent of achievement is calculated by dividing the market value of Mr. Dasilva’s multiple voting shares and RSUs by five times his annual salary of C$500,000, then
            expressing the total as a percentage of the minimum ownership requirement applicable to such Outside Director. Stock options are excluded from the calculation of the CEO share ownership requirements.

  	6.	On June 11, 2019, Mr. Dasilva received grants of (a) 52,576 options to acquire subordinate voting shares at an exercise price of C$30.28 per subordinate voting share as
            part of his annual long-term incentive plan grant, and (b) 26,288 performance-vesting options to acquire subordinate voting shares at an exercise price of C$30.28 per subordinate voting share as his annual short-term incentive plan. See
            “Executive Compensation – Compensation Discussion and Analysis – Principal Elements of Compensation – Short-Term Incentive Compensation” for a description of the performance-vesting stock options.

  	7.	On June 11, 2019, Mr. Dasilva received a grant of 16,512 RSUs as part of his annual long-term incentive plan grant.

    

  Equity Incentive Plans

   

  In 2012, the Company established its 2012 option plan (which was
      amended in 2015 and 2019) (the "2012 Legacy Option Plan"). In 2016, in connection with the grant of options to two senior executives of the Company, the Company established its 2016 option plan (which was amended in 2019) (the "2016 Legacy
        Option Plan" and, together with the 2012 Legacy Option Plan, the "Legacy Option Plans").

   

  The Legacy Option Plans were amended concurrently with the closing of
      the IPO such that outstanding options granted thereunder are exercisable for subordinate voting shares and no further awards can be made under the Legacy Option Plans. At the same time, the Company adopted an omnibus incentive plan which allows the
      Board to grant long-term equity-based awards to eligible participants. This omnibus incentive plan was amended and restated on November 18, 2019 to give effect to certain housekeeping amendments (the "Amended and Restated Omnibus Incentive Plan"). 

   

  MANAGEMENT INFORMATION CIRCULAR 24

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND
            ANALYSIS

    

  On May 29, 2019, the Board exercised its discretion under the 2012
      Legacy Option Plan to accelerate the vesting of 18,750 options previously granted to Jerome Laredo, then the Company’s Senior Vice-President of EMEA, so that they would vest on September 30, 2019, his last day of employment. Additionally, the Board
      granted an extension to the termination date of all options exercisable by Mr. Laredo as of his last date of employment so that all such options would remain exercisable by Mr. Laredo until December 31, 2019 instead of October 30, 2019. These
      measures were taken to incentivize Mr. Laredo to continue his employment through September 30, 2019. On the same date, the Board also waived the cancellation of 469 options under the 2012 Legacy Option Plan held by an employee, subject to the
      employee resuming employment with the Company prior to December 31, 2019.

   

  On February 17, 2020, the Company adopted a sub-plan to the Amended
      and Restated Omnibus Incentive Plan to facilitate future grants of awards to persons resident in the United Kingdom (the “UK Sub-Plan”).

   

  On February 28, 2020, the Board exercised its discretion under the
      Amended and Restated Omnibus Incentive Plan to amend the vesting schedules of an aggregate of 2,102,044 options that had been granted on March 7, June 11, August 19 and 26, and November 18, 2019 and of 68,125 RSUs that had been granted on June 11,
      August 19 and November 18, 2019, in each case under the Amended and Restated Omnibus Incentive Plan. Pursuant to these new vesting schedules, with respect to option, 25% of each grant of options vests on the first anniversary of their respective
      grant date and one thirty-six of the remaining options of each grant vest on each monthly anniversary of their respective grant dates thereafter, and with respect to RSUs, 30% of each grant of RSUs vests on the first anniversary of the relevant grant
      date and one eighth of the remaining RSUs vests on each quarterly anniversary of the relevant grant date thereafter.

   

  On June 1, 2020 the Board exercised its discretion under the Amended
      and Restated Omnibus Incentive Plan to amend: (i) the vesting schedules of 574,460 options granted on August 26, 2019, November 18, 2019 and February 28, 2020 to eligible participants, such that 20% of the options vest on the first anniversary of
      their respective grant date, 50% of the options vest in equal monthly installments on each of the next 24 monthly anniversaries of the grant date, and the remaining 30% of the options vest in equal monthly installments on each of the next 12 monthly
      anniversaries of the grant date; (ii) the performance criteria for vesting of an aggregate of 56,482 PSUs granted on February 28, 2020 to 4 non-insider employees that are eligible participants, such that a portion of these PSUs would vest upon the
      satisfaction of milestones relating to marketing and product integrations; and (iii) RSU agreements of an aggregate of 72,636 RSUs previously granted to eligible participants, to clarify the settlement date of these granted RSUs such that
      participants may request a settlement date for any number of vested RSUs by requesting settlement on the participant’s desired settlement date using the equity platform facilities provided from time to time by the Company, subject to certain
      conditions including acceptance of the request by the Company.

   

  The TSX has confirmed that the above-mentioned amendments are in
      compliance with the amendment provisions of the Amended and Restated Omnibus Incentive Plan, and that these amendments do not require security holder approval.

   

  At the Meeting, the Company proposes to further amend the Amended and
      Restated Omnibus Incentive Plan to convert it from a “fixed plan” to a “rolling plan”. See “Business of the Meeting – Conversion of the Company’s Amended and Restated Omnibus Incentive Plan”.

   

  In addition to the Amended and Restated Omnibus Incentive Plan and the
      Legacy Option Plans, the Company has granted equity -based awards without shareholder approval in compliance with an allowance under the rules of the TSX as an inducement for such individuals to enter into a contract of full-time employment with the
      Company. In connection with Mr. Texier joining the Company as Chief Product Officer, on August 19, 2019, he received grants of (a) 300,000 options to acquire subordinate voting shares at an exercise price of C$41.01 per subordinate voting share and
      (b) 4,877 RSUs. In connection with Mr. Valeriano joining the Company as Senior Vice President and Managing Director of EMEA, on February 28, 2020, he received a grant of 200,000 options to acquire subordinate voting shares at an exercise price of
      C$35.45 per subordinate voting share. The foregoing awards are subject to the terms and conditions of the Amended and Restated Omnibus Incentive Plan, though a separate share reserve is maintained for issuances in connection with the exercise or
      settlement of such awards. 

   

  MANAGEMENT INFORMATION CIRCULAR 25

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Amended and Restated Omnibus Incentive Plan

   

  The Amended and Restated Omnibus Incentive Plan allows for a variety
      of equity-based awards that provide different types of incentives to be granted to our directors, executive officers, employees and consultants, including options, RSUs, PSUs and deferred share units ("DSUs"), collectively referred to as
      "awards". The Board will initially be responsible for administering the Amended and Restated Omnibus Incentive Plan and may delegate its responsibilities thereunder. The following discussion is qualified in its entirety by the full text of the
      Amended and Restated Omnibus Incentive Plan.

   

  The Board, in its sole discretion, from time to time designates the
      directors, executive officers, employees and consultants to whom awards shall be granted and determine, if applicable, the number of subordinate voting shares to be covered by such awards and the terms and conditions of such awards.

   

  As at June 24, 2020, subordinate voting shares
      issuable pursuant to equity-based awards granted to employees and other eligible participants, excluding directors and executive officers of the Company, represented approximately 50.1% of the total number of subordinate voting shares issuable
      pursuant to all outstanding equity-based awards of the Company under the Amended and Restated Omnibus Incentive Plan and the Legacy Option Plans. During Fiscal 2020, employees and other eligible participants, excluding directors and executive
      officers of the Company, received equity-based awards pursuant to which were issuable subordinate voting shares representing approximately 57.2% of the total number of subordinate voting shares issuable pursuant to all equity-based awards of the
      Company granted in Fiscal 2020. In addition, the Company expects to continue to allocate a meaningful proportion of its equity -based awards to broad-based employees other than directors and executive officers of the Company as part of the Company’s
      ongoing annual granting activities and this is a core part of the Company’s compensation philosophy.

   

  Shares Reserved for Issuance

   

  The number of subordinate voting shares reserved for issuance under
      the Amended and Restated Omnibus Incentive Plan and the Legacy Option Plans, collectively, was 8,700,311 as of March 31, 2020 (representing approximately 9.44% of the issued and outstanding subordinate voting shares and multiple voting shares as at
      that date), of which 1,438,340 remained available for grant. In Fiscal 2020, an aggregate of 3,692,062 awards were granted under the Omnibus Incentive Plan or without shareholder approval in compliance with an allowance under the rules of the TSX as
      an inducement for certain individuals to enter into a contract of full-time employment with the Company, representing 4.00% of the issued and outstanding subordinate voting shares and multiple voting shares of the Company as of March 31, 2020.
      Subordinate voting shares underlying options terminated, surrendered or cancelled under the Legacy Option Plans are available for issuance under the Amended and Restated Omnibus Incentive Plan. If an outstanding award under the Legacy Option Plans or
      the Amended and Restated Omnibus Incentive Plan expires or is terminated, surrendered or cancelled for any reason without having been exercised or settled in full, or if subordinate voting shares acquired pursuant to an award subject to forfeiture
      are forfeited, the subordinate voting shares covered by such award, if any, will again be available for issuance under the Amended and Restated Omnibus Incentive Plan. Subordinate voting shares will not be deemed to have been issued pursuant to the
      Amended and Restated Omnibus Incentive Plan with respect to any portion of an award that is settled in cash. 

   

  MANAGEMENT INFORMATION CIRCULAR 26

   

  
     

    
      
 

  

   

  		COMPENSATION DISCUSSION AND ANALYSIS

   

  The following table sets out the annual burn rate for Fiscal 2020 for each
      of the Amended and Restated Omnibus Incentive Plan and the equity incentive plans not approved by security holders:

   

  	Burn Rate1	March 31. 2020
	Amended and Restated Omnibus Incentive Plan	3.71%
	Equity Incentive Plans not Approved by Securityholders2	0.59%

   

  	1.	The burn rates in the above table represent the number of equity incentives granted under the respective plans during Fiscal 2020 divided by the
            weighted average number of subordinate voting shares and multiple voting shares issued and outstanding for Fiscal 2020.

  	2.	The foregoing awards are subject to the terms and conditions of the Amended and Restated Omnibus Incentive Plan, though the awards were granted
            without shareholder approval in compliance with an allowance under the rules of the TSX as an inducement for such individuals to enter into a contract of full-time employment with the Company.

   

  At the Meeting, the Company proposes to amend the Amended and Restated
      Omnibus Incentive Plan to convert it from a “fixed plan” to a “rolling plan”, whereby the maximum number of subordinate voting shares which may be reserved and set aside for issuance under such plan and the Legacy Option Plans would be changed from a
      fixed maximum number of subordinate voting shares to a maximum aggregate number of subordinate voting shares equal to 15% of all subordinate voting shares and multiple voting shares issued and outstanding from time to time, on a non-diluted basis.
      See “Business of the Meeting – Conversion of the Company’s Amended and Restated Omnibus Incentive Plan” for additional details.

   

  Insider Participation Limit

   

  The aggregate number of subordinate voting shares issuable to insiders
      and their associates at any time under the Amended and Restated Omnibus Incentive Plan, the Legacy Option Plans or any other proposed or established share compensation arrangement, shall not exceed 10% of the issued and outstanding subordinate voting
      shares and multiple voting shares, and the aggregate number of subordinate voting shares issued to insiders and their associates under the Amended and Restated Omnibus Incentive Plan, the Legacy Option Plans or any other proposed or established share
      compensation arrangement within any one-year period shall not exceed 10% of the issued and outstanding subordinate voting shares and multiple voting shares.

   

  Non-Employee Director Participation Limit

   

  The aggregate number of subordinate voting shares issuable to
      non-employee directors at any time under the Amended and Restated Omnibus Incentive Plan, the Legacy Option Plans or any other proposed or established share compensation arrangement, shall not exceed 1% of the issued and outstanding subordinate
      voting shares and multiple voting shares.

   

  Options

   

  All options granted under the Amended and Restated Omnibus Incentive
      Plan have an exercise price determined and approved by the Board at the time of grant, which shall not be less than the market price of the subordinate voting shares on the date of the grant. For purposes of the Amended and Restated Omnibus Incentive
      Plan, the market price of the subordinate voting shares as at a given date shall be the volume weighted average trading price on the TSX for the five trading days before such date.

   

  Subject to any vesting conditions set forth in a participant’s grant
      agreement, an option shall be exercisable during a period established by the Board which shall not be more than ten years from the grant of the option. The Amended and Restated Omnibus Incentive Plan provides that the exercise period shall
      automatically be extended if the date on which it is scheduled to terminate shall fall during a blackout period. In such cases, the extended exercise period shall terminate ten business days after the last day of the blackout period. The Board may,
      in its discretion, provide for procedures to allow a participant to elect to undertake a "cashless exercise" or a "net exercise" in respect of options.

   

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  		COMPENSATION DISCUSSION AND ANALYSIS

   

  Share Units

   

  The Board is authorized to grant RSUs, PSUs and DSUs evidencing the
      right to receive subordinate voting shares (issued from treasury or purchased on the open market), cash based on the value of a subordinate voting share or a combination thereof at some future time to eligible persons under the Amended and Restated
      Omnibus Incentive Plan. Although DSUs may be available for grant to directors, executive officers, employees and consultants, the Company currently only grants DSUs as a form of non-executive director compensation.

   

  RSUs generally become vested, if at all, following a period of
      continuous employment. PSUs are similar to RSUs, but their vesting is, in whole or in part, conditioned on the attainment of specified performance metrics as may be determined by the Board. The terms and conditions of grants of RSUs and PSUs,
      including the quantity, type of award, grant date, vesting conditions, vesting periods, settlement date and other terms and conditions with respect to these awards will be set out in the participant’s grant agreement.

   

  Subject to the achievement of the applicable vesting conditions, the
      payout of an RSU or PSU will generally occur on the settlement date. The payout of a DSU will generally occur upon or following the participant ceasing to be a director, executive officer, employee or consultant of the Company, subject to
      satisfaction of any applicable conditions.

   

  Dividend Share Units

   

  If, as the case may be, dividends (other than share dividends) are
      paid on the subordinate voting shares and multiple voting shares, additional share unit equivalents ("Dividend Share Units") will be automatically granted to each participant who holds RSUs, PSUs or DSUs on the record date for such dividends,
      and be subject to the same vesting or other conditions applicable to the related RSUs, PSUs or DSUs, as applicable.

   

  Adjustments

   

  In the event of any subdivision, consolidation, reclassification,
      reorganization or any other change affecting the subordinate voting shares, or any merger or amalgamation with or into another corporation, or any distribution to all security holders of cash, evidences of indebtedness or other assets not in the
      ordinary course, or any transaction or change having a similar effect, the Board shall in its sole discretion, subject to the required approval of any stock exchange, determine the appropriate adjustments or substitutions to be made in such
      circumstances in order to maintain the economic rights of the participants in respect of awards under the Amended and Restated Omnibus Incentive Plan, including, without limitation, adjustments to the exercise price, the number and kind of securities
      subject to unexercised awards granted prior to such change and/or permitting the immediate exercise of any outstanding awards that are not otherwise exercisable.

   

  Change of Control

   

  A participant’s grant agreement or any other written agreement between
      a participant and us may provide, where applicable, that unvested awards be subject to acceleration of vesting and exercisability in certain circumstances, including in the event of certain change of control transactions. In the event of a change of
      control, the Board will have the power, in its sole discretion, to modify the terms of the Amended and Restated Omnibus Incentive Plan and/or the awards granted thereunder (including to cause the vesting of all unvested awards) to assist the
      participants to tender into a take -over bid or any other transaction leading to a change of control. In such circumstances, the Board shall be entitled to, in its sole discretion, provide that any or all awards shall terminate, provided that any
      such outstanding awards that have vested shall remain exercisable until consummation of such change of control, and/or permit participants to conditionally exercise awards.

   

  MANAGEMENT INFORMATION CIRCULAR 28

   

  
     

    
      
 

  

   

   

  

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  The Board may at its discretion accelerate the vesting, where applicable, of any outstanding awards notwithstanding the previously established vesting schedule,
    regardless of any adverse or potentially adverse tax consequences resulting from such acceleration or, subject to applicable regulatory provisions and shareholder approval, extend the expiration date of any award, provided that the period during which
    an option is exercisable does not exceed ten years from the date such option is granted or that the period relating to RSUs and PSUs does not exceed three years.

   

  Trigger Events

   

  The Amended and Restated Omnibus Incentive Plan provides that upon the termination for cause of a participant, any awards granted to such participant, whether vested
    or unvested, shall automatically terminate. The Amended and Restated Omnibus Incentive Plan further provides that upon a participant the termination without cause of a participant, or upon the resignation or retirement of a participant, (i) the Board
    may determine, in its sole discretion, that a portion of the PSUs, RSUs and/or DSUs granted to such participant shall immediately vest and be settled, (ii) all unvested option shall be forfeited, and (iii) vested options shall remain exercisable until
    the earlier of 90 days (30 days for a resignation or retirement) after the termination date or the expiry date of the options. Finally, upon a participant’s termination of employment as a result of death or disability, (i) all rights, title and
    interest in the options granted to such participant which are unvested will continue to vest in accordance with the terms of the Amended and Restated Omnibus Incentive Plan and the participant’s grant agreement, for a period of up to two years, (ii)
    vested options (including such options that vest during the period following the termination date) will remain exercisable until the earlier of (A) two years after the termination date, and (B) the expiry date of the options, and (iii) a portion of
    PSUs, RSUs and/or DSUs granted to the participant will immediately vest and be settled, as determined by the Board and subject to certain exceptions.

   

  Amendments and Termination 

   

  The Board is entitled to suspend or terminate the Amended and Restated Omnibus Incentive Plan at any time, or from time to time amend or revise the terms of the
    Amended and Restated Omnibus Incentive Plan or of any granted award, provided that no such suspension, termination, amendment or revision will be made, (i) except in compliance with applicable law and with the prior approval, if required, of the
    shareholders, the TSX or any other regulatory body having authority over the Company, and (ii) if it would adversely alter or impair the rights of any participant, without the consent of the participant except as permitted by the terms of the Amended
    and Restated Omnibus Incentive Plan, provided however, subject to any applicable rules of the TSX, the Board may from time to time, in its absolute discretion and without the approval of shareholders, make, amongst others, the following amendments to
    the Amended and Restated Omnibus Incentive Plan or any outstanding award:

   

  		●	any amendment to the vesting provisions, if applicable, or assignability provisions of awards;

  

  		●	any amendment to the expiration date of an award that does not extend the terms of the award past the original date of expiration for such award;

  

  		●	any amendment regarding the effect of termination of a participant’s employment or engagement;

  

  		●	any amendment to the terms and conditions of grants of PSUs, RSUs or DSUs, including the performance criteria, as applicable, the type of award, grant date, vesting periods, settlement date and other terms and
          conditions with respect to the awards;

  

  		●	any amendment which accelerates the date on which any award may be exercised or payable, as applicable, under the Omnibus Incentive Plan;

  

  		●	any amendment to the definition of an eligible participant under the Amended and Restated Omnibus Incentive Plan (other than with respect to eligible participants who are eligible to receive an award of options
          issued under the Amended and Restated Omnibus Incentive Plan as incentive stock options intended to meet the requirements of Section 422 of the U.S. Internal Revenue Code of 1986);

  

  		●	any amendment necessary to comply with applicable law or the requirements of the TSX or any other regulatory body;

   

  

  MANAGEMENT INFORMATION CIRCULAR 29

   

  
    
      
 

  

   

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  		●	any amendment of a "housekeeping" nature, including, without limitation, to clarify the meaning of an existing provision of the Amended and Restated Omnibus Incentive Plan, correct or supplement any provision of the
          Amended and Restated Omnibus Incentive Plan that is inconsistent with any other provision of the Amended and Restated Omnibus Incentive Plan, correct any grammatical or typographical errors or amend the definitions in the Amended and Restated
          Omnibus Incentive Plan;

  

  		●	any amendment regarding the administration of the Amended and Restated Omnibus Incentive Plan;

  

  		●	any amendment to add a provision permitting the grant of awards settled otherwise than with shares issued from treasury;

  

  		●	any amendment to add a cashless exercise feature or net exercise procedure;

  

  		●	any amendment to add a form of financial assistance; and

  

  		●	any other amendment that does not require the approval of the holders of subordinate voting shares pursuant to the amendment provisions of the Amended and Restated Omnibus Incentive Plan.

   

  For greater certainty, the Board is required to obtain shareholder approval to make the following amendments:

   

  		●	any increase in the maximum number of subordinate voting shares issuable pursuant to the Amended and Restated Omnibus Incentive Plan;

  

  		●	except for adjustments permitted by the Amended and Restated Omnibus Incentive Plan, any reduction in the exercise price of an option or any cancellation of an option and replacement of such option with an option
          with a lower exercise price, to the extent such reduction or replacement benefits an insider;

  

  		●	any extension of the term of an award beyond its original expiry date, to the extent such amendment benefits an insider;

  

  		●	any increase in the maximum number of subordinate voting shares that may be issuable to insiders pursuant to the insider participation limit;

  

  		●	any amendment which (i) increases the maximum number of shares that may be issuable upon exercises of options issued under the Amended and Restated Omnibus Incentive Plan as incentive stock options intended to meet
          the requirements of Section 422 of the U.S. Internal Revenue Code of 1986 or (ii) which modifies the definition of eligible participant used for purposes of determining eligibility for the grant of an incentive stock option; and

  

  		●	any amendment to the amendment provisions of the Amended and Restated Omnibus Incentive Plan.

   

  Except as specifically provided in a grant agreement approved by the Board, awards granted under the Amended and Restated Omnibus Incentive Plan are generally not transferable other than
    by will or the laws of succession. The Company currently does not provide any financial assistance to participants under the Amended and Restated Omnibus Incentive Plan.

   

  At the Meeting, the Company proposes to further amend the Amended and Restated Omnibus Incentive Plan to convert it from a “fixed plan” to a “rolling plan”. See
    “Business of the Meeting – Conversion of the Company’s Amended and Restated Omnibus Incentive Plan”.

   

  Legacy Option Plans

   

  The Company has previously granted options to acquire common shares to certain directors, officers, employees and consultants under the Legacy Option Plans. The terms
    and conditions of the Legacy Option Plans are substantially identical, save for certain minor variations in respect of, notably, eligible participants, shares reserved for issuance and change of control provisions. The Legacy Option Plans were amended
    such that options to acquire common shares constitute options to purchase an equal number of subordinate voting shares at the same exercise price, once applicable options are otherwise vested and exercisable. The following discussion is qualified in
    its entirety by the full text of the Legacy Option Plans. No additional options will be granted under the Legacy Option Plans.

   

  MANAGEMENT INFORMATION CIRCULAR 30

   

  
    
      
 

  

   

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  The 2012 Legacy Option Plan allows for the grant of options to the directors, officers, full-time, part-time and contract employees and consultants of the Company and
    its affiliates. The 2016 Legacy Option Plan only allows for the grant of options to directors and officers. The Board is responsible for administering the Legacy Option Plans and may delegate its responsibilities to a committee thereof. Under the
    Legacy Option Plans, the Board has the sole and complete authority, in its discretion, to determine the individuals to whom options may be granted and to grant options in such amounts and, subject to the provisions of the Legacy Option Plans, on such
    terms and conditions as it determines including: (i) the time or times at which options may be granted, (ii) the exercise price, (iii) the time or times when each option becomes exercisable and the duration of the exercise period (provided however that
    the exercise period may not exceed 10 years), (iv) whether restrictions or limitations are to be imposed on the shares underlying options and the nature of such restrictions or limitations and (v) any acceleration of exercisability or waiver of
    termination regarding any option.

   

  Unless otherwise specified by the Board, an option granted under the Legacy Option Plans expires on the seventh anniversary of the grant, provided however that the
    maximum exercise period for an option cannot exceed ten years after the date of grant. Unless otherwise specified by the Board, under the 2012 Legacy Option Plan, 25% of an option grant will vest on each of the first, second, third and fourth
    anniversary of the grant date, whereas under the 2016 Legacy Option Plan, 25% of an option grant will vest on the first anniversary of the grant date and a fraction equal to 1/48th of the balance will vest on the first day of each calendar month
    following the first anniversary of the grant date.

   

  Adjustments

   

  The Legacy Option Plans also provide that, in connection with a subdivision or consolidation of shares of the Company or any other capital reorganization or a payment
    of a stock dividend (other than a stock dividend that is in lieu of a cash dividend), or an amalgamation, combination, merger or other reorganization involving the Company by exchange of subordinate voting shares, including by sale or lease of assets
    or otherwise the Board may make certain adjustments to outstanding options and authorize such steps to be taken as may be equitable and appropriate to that end.

   

  Trigger Events; Change of Control 

   

  The Legacy Option Plans provides that certain events, including termination for cause, termination without cause, retirement, disability or death, may trigger
    forfeiture or reduce the exercise period, where applicable, of the option, subject to the terms of the participant’s agreement. The Board may, in its discretion, at any time prior to or following such events, permit the exercise of any or all options
    held by the participant in the manner and on the terms authorized by the Board. In the event of certain change of control transactions, the Board may (i) provide that all outstanding vested options shall be cancelled and terminated and that in
    connection therewith, participants will receive a cash payment equal to the difference, if any, between the consideration received by the shareholders of the Company in respect of a share in connection with such transaction and the purchase price per
    share, multiplied by the number of options held, (ii) extend the exercise period of outstanding vested options (but not beyond 10 years from the grant date), (iii) terminate any outstanding unvested options, (iv) accelerate the vesting of any or all
    outstanding options, (v) accelerate the vesting of any or all outstanding options and provide that such options are fully vested and conditionally exercisable upon (or prior to) the completion of the transaction, or (vi) take such steps as are
    necessary or desirable to cause the conversion or exchange of any outstanding options into substitute or replacement options of similar value or greater value from, or the assumption of outstanding options by, the entity participating in or resulting
    from the transaction. The 2016 Legacy Option Plan further provides that if at any time between the time the Company enters into a definitive agreement providing for a change of control and the closing thereof, or within 12 months thereafter, the
    participant is terminated without cause or resigns for good reason, 100% of the options held by such participant will accelerate and be deemed vested and exercisable, subject to the participant’s continuing compliance with his or her obligations to the
    Company. Upon a change of control, any vested options granted under the 2016 Legacy Option Plan will be sold or exchanged (or exercised and the shares issued on such exercise will be sold or exchanged) for substantially the same consideration as the
    shares for which the options are exercised, subject to appropriate adjustments to account for the exercise price thereof.

   

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  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  Amendments and Termination 

   

  The Board may, without notice, at any time from time to time, amend, suspend or terminate the Legacy Option Plans or any provisions thereof in such respects as it, in
    its sole discretion, determines appropriate, except that it may not without the consent of the participant (or the representatives of his or her estate) alter or impair any rights or obligations arising from any option previously granted to such
    participant under the Legacy Option Plans that remains outstanding.

   

  Options granted under the Legacy Option Plans are generally not transferable other than to limited permitted assigns. The Company currently does not provide any
    financial assistance to participants under the Legacy Option Plans.

   

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  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  Securities Authorized for Issuance Under Equity Compensation Plans

   

  The following table provides a summary, as at March 31, 2020, of the securities granted under each of the Company’s equity incentive plans:

   

  	Plan Category1	Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants
              and Rights	Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights	Number of Securities Remaining Available for Future
              Issuance Under Equity Incentive Plans (Including Securities Appearing in the First Column)
	Equity Incentive Plans Approved by Securityholders:	 	 	 
	Amended and Restated Omnibus Incentive Plan	3,376,4642	C$31.12	1,438,340 3
	Legacy Option Plans4	3,885,5075	$4.39	-
	Equity Incentive Plans not Approved by Securityholders6	504,877	C$38.41	-
	Total:	7,766,848	 	1,438,3403

   

  	1.	See “Executive Compensation – Compensation Discussion and Analysis – Equity Incentive Plans” for a description of the terms of the Amended and
            Restated Omnibus Incentive Plan, the Legacy Option Plans and the equity incentive plans not approved by securityholders.

  

  	2.	Represents approximately 3.66% of the issued and outstanding subordinate voting shares and multiple voting shares as at March 31, 2020.

  

  	3.	Assumes that all outstanding RSUs, PSUs and DSUs are settled in treasury shares. Represents approximately 1.56% of the issued and outstanding
            subordinate voting shares and multiple voting shares as at March 31, 2020. The subordinate voting shares reserved for issuance under the Amended and Restated Omnibus Incentive Plan are reserved for the exercise of options and the settlement of
            RSUs, PSUs and DSUs with subordinate voting shares issued from treasury.

  

  	4.	As part of the pre-closing capital changes effected in connection with closing of the IPO, each of the Legacy Option Plans was amended such
            that, as of March 15, 2019, no further awards would be made thereunder.

  

  	5.	Represents approximately 4.21% of the issued and outstanding subordinate voting shares and multiple voting shares as at March 31, 2020.

  

  	6.	In connection with Mr. Texier joining the Company as Chief Product Officer, on August 19, 2019, he received grants of (a) 300,000 options to
            acquire subordinate voting shares at an exercise price of C$41.01 per subordinate voting share and (b) 4,877 RSUs. In connection with Mr. Valeriano joining the Company as Senior Vice President and Managing Director of EMEA, on February 28,
            2020, he received a grant of 200,000 options to acquire subordinate voting shares at an exercise price of C$35.45 per subordinate voting share. The foregoing awards are subject to the terms and conditions of the Amended and Restated Omnibus
            Incentive Plan, though the awards were granted without shareholder approval in compliance with an allowance under the rules of the TSX as an inducement for such individuals to enter into a contract of full-time employment with the Company.

   

  The table above does not take into account the further amendments to the Amended and Restated Omnibus Incentive Plan to be considered at the Meeting for purposes of
    converting such plan from a “fixed plan” to a “rolling plan”, and whereby the maximum number of subordinate voting shares which may be reserved and set aside for issuance under such plan and the Legacy Option Plans would be changed from a fixed maximum
    number of subordinate voting shares to a maximum aggregate number of subordinate voting shares equal to 15% of all subordinate voting shares and multiple voting shares issued and outstanding from time to time, on a non-diluted basis (representing
    approximately 13,945,560 subordinate voting shares as at June 24, 2020). See “Business of the Meeting – Conversion of the Company’s Amended and Restated Omnibus Incentive Plan” for additional details.

   

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  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  Named Executive Officers’ Compensation

   

  Summary Compensation Table

   

  The following table sets out information concerning the Fiscal 2020 compensation paid to or awarded to the NEOs. The total cost of compensation of our NEOs represents
    5.98% of revenue in Fiscal 2020.

   

  	Name	Year	
          Salary

          

          1, 2

          

          ($)

          

        	
          Share-

                Based 

                Awards

          

          1, 3

          

          ($)

          

        	
          Option-

                Based Awards

          

          1, 4

          

          ($)

          

        	Non-Equity
              Incentive Plan 

              Compensation	Pension 

              Value	
          All Other

                Compensation

                  1, 6, 7

          

          ($)

        	Total
              Compensation
	
          Annual Incentive Plans1, 5

          

          ($)

          

        	
          Long-Term

                Incentive

                Plans1

          

          ($) 

        
	Dax Dasilva

          Chief Executive Officer	2020	238,364	352,450	528,6758	-	 	-	2,708	1,122,197
	 	2019	292,641	 	 	 	 	-	658	293,298
	 	2018	302,965	 	 	 	 	-	 	302,965
	 	2017	293,007	 	 	 	 	-	 	293,007
	 	2016	300,339	 	 	 	 	-	 	300,339
	Brandon Nussey

          Chief Financial Officer	2020	275,318	140,980	140,980	70,490	-	-	20,775	648,543
	 	2019	261,905	 	 	74,830	 	-	5,775	342,510
	Jean Paul Chauvet

          President	2020	238,514	123,358	123,358	181,869	-	-	3,540	670,639
	 	2019	228,951	 	1,866,805	234,251	 	-	860	2,330,867
	
          Jim Texier9

           

          Chief Product Officer

           

        	2020	139,489	140,980	3,484,25910	61,001	 	-	9,103	3,834,832
	Julian Teixeira	2020	144,925	79,301	565,87611	145,880	 	 	376	936,358
	Senior Vice President of Global Sales	2019	131,525	 	99,681	182,538	-	-	624	414,368

   

  	1.	The base salaries, share-based awards, option-based awards, annual incentive and all other compensation of our NEOs are paid in Canadian
            dollars. Except where noted below, the 2020 amounts reported in the above table have been converted to U.S. dollars using an exchange rate of 0.7049, being the average rate of exchange posted by the Bank of Canada for conversion of Canadian
            dollars into U.S. dollars on March 31, 2020. The 2019 amounts reported in the above table have been converted to U.S. dollars using an exchange rate of 0.7483, being the daily rate of exchange posted by the Bank of Canada for conversion of
            Canadian dollars into U.S. dollars on March 29, 2019. The 2018 amounts reported in the above table have been converted to U.S. dollars using an exchange rate of 0.7747, being the daily rate of exchange posted by the Bank of Canada for
            conversion of Canadian dollars into U.S. dollars on March 28, 2018. The 2017 amounts reported in the above table have been converted to U.S. dollars using an exchange rate of 0.7513, being the daily rate of exchange posted by the Bank of Canada
            for conversion of Canadian dollars into U.S. dollars on March 31, 2017. The 2016 amounts reported in the above table have been converted to U.S. dollars using an exchange rate of 0.7701, being the daily rate of exchange posted by the
            CanadianForex Limited. for conversion of Canadian dollars into U.S. dollars on March 31, 2016.

  

  	2.	The 2020 amounts reported in the table above represent a base salary of C$338,153 for Mr. Dasilva (which includes a voluntary reduction in
            salary taken by Mr. Dasilva in response to the COVID-19 pandemic, which voluntary reduction was retroactive to January 1, 2020), C$390,577 for Mr. Nussey, C$338,365 for Mr. Chauvet, C$1,197,885 for Mr. Texier and C$205,597 for Mr. Teixeira.

  

  	3.	Represents grants of RSUs made to Messrs. Dasilva, Chauvet, Nussey and Teixeira under the Amended and Restated Omnibus Incentive Plan, and with
            respect to Mr. Texier, in compliance with an allowance under the rules of the TSX, as an inducement for him to enter into a contract of full-time employment with the Company. Amounts shown in this column represent the grant date fair value of
            RSUs. The grant date fair value of an award is equal to the volume weighted average trading price on the TSX for the five days prior to the grant date and differs from the accounting fair value determined in accordance with IFRS 2 Share-based

            Payment which is calculated based on the closing price of the shares on the TSX on the grant date.

   

  MANAGEMENT INFORMATION CIRCULAR 34

   

  
    
      
 

  

   

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  	4.	Represents grants of options made to Messrs. Dasilva, Chauvet, Nussey and Teixeira under the Amended and Restated Omnibus Incentive Plan, and
            with respect to Mr. Texier, in compliance with an allowance under the rules of the TSX as an inducement for him to enter into a contract of full-time employment with the Company. Amounts shown have been calculated using the Black-Scholes method
            based on the volume weighted average trading price on the TSX for the five trading days prior to the grant date. The fair value on the grant date is different from the value determined in accordance with IFRS 2 Share-based Payment
            because the accounting fair value determined in accordance therewith is calculated based on the closing price of the shares on the TSX on the grant date as opposed to the volume weighted average trading price on the TSX for the five trading
            days prior to the grant date.

  

  	5.	The 2020 amounts reported in the table above represent bonuses of C$100,000 for Mr. Nussey and C$86,538 for Mr. Texier; and commission payments
            of C$258,006 for Mr. Chauvet and C$206,951 for Mr. Teixeira under the Company’s Sales Commission Plan.

  

  	6.	None of NEOs are entitled to perquisites or other personal benefits which, in the aggregate, are worth over $50,000 or over 10% of their base
            salary.

  

  	7	Amounts shown in this column for Fiscal 2020 include Company-paid life, accidental death and dismemberment, medical, dental and dependent life
            insurance premiums of C$3,842, C$5,024, C$5,022, C$2,913 and C$533 on behalf of Messrs. Dasilva, Nussey, Chauvet, Texier and Teixeira, respectively, which amounts were converted into U.S. dollars using an exchange rate of 0.7049, being the
            daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020. For Messrs. Nussey and Texier, the amount also includes a company contribution of C$5,248 and C$10,000, respectively, to
            a registered retirement savings plan. For Mr. Nussey, the amount also includes a includes a gross-up reimbursement of C$19,200 on account of payment of taxes.

  

  	8.	Represents a grant of 26,288 Performance Options at an exercise price of C$30.28 per subordinate voting share on account of Mr. Dasilva’s annual
            short-term incentive plan compensation, and a grant of 52,576 options at an exercise price of C$30.28 per subordinate voting share on account of Mr. Dasilva’s annual long-term incentive plan compensation, in each case on June 11, 2019. See
            “Executive Compensation – Compensation Discussion and Analysis – Principal Elements of Compensation – Short-Term Incentive Compensation” for a description of the performance-vesting stock options.

  

  	9.	Mr. Texier joined the Company September 9th, 2019.

  

  	10.	Represents a grant of 300,000 options made to Mr. Texier at an exercise price of C$41.01 per subordinate voting share on August 19, 2019 in
            compliance with an allowance under the rules of the TSX as an inducement for him to enter into a contract of full-time employment with the Company. This amount has been converted to U.S. dollars using an exchange rate of 0.751, being the
            average rate of exchange posted by the Thomson Reuters for conversion of Canadian dollars into U.S. dollars on August 19, 2019.

  

  	11.	Represents a grant of 11,829 options made to Mr. Teixeira at an exercise price of C$30.28 per subordinate voting share on account of his
            long-term incentive plan compensation on June 11, 2019 and an additional grant of 50,000 options made to Mr. Teixeira at an exercise price of C$35.45 per subordinate voting share on February 28, 2020. Amounts have been converted to U.S. dollars
            using exchange rates of 0.753 and 0.746, respectively, being the average rate of exchange posted by Thomson Reuters for conversion of Canadian dollars into U.S. dollars on June 11, 2019 and February 28, 2020, respectively.

   

  CEO Performance-Based Compensation

   

  On account of his short-term incentive compensation for Fiscal 2020, our CEO, Mr. Dasilva, was granted a fixed number Performance Options. The Performance Options
    vest, upon the CNG Committee’s determination, in its sole discretion, as to Mr. Dasilva’s satisfaction of the performance criteria established therefor by the CNG Committee and in the number determined by the CNG Committee based on such satisfaction.
    The performance criteria were aligned to the Company’s four strategic priorities for Fiscal 2020 – investing in our people, customer success, innovation and differentiation, and fiscal responsibility – with each priority being weighted equally in the
    determination of Mr. Dasilva’s satisfaction of the performance criteria. The performance criteria established by the CNG Committee for the vesting of Mr. Dasilva’s Performance Options are described below.

   

  	Invest in our People (25%)	 
	
          Mr. Dasilva’s achievement of this strategic objective is measured by reference to:

          

            i.    a target company net promoter score as
            attributed by its employees;

          

           ii.    a target employee voluntary turnover
            rate; and

          

          iii.    a discretionary performance review
            conducted by the Chair of the Board.

           

        
	Customer Success (25%)	 
	
          The company’s achievement of this strategic objective is measured by reference to:

          

            i.        a target customer churn rate;

          

           ii.        a target improvement of the
            company’s net promoter score as attributed by its customers; and

          

          iii.        a customer satisfaction survey
            score target.

           

        
	Innovate and Differentiate (25%)	 
	
          The Company’s achievement of this strategic objective is measured by reference to:

          

           i.        product feature advancements;

          

          ii.        the execution of the Company
            against its product roadmap; and

          

          

           

        

   

  MANAGEMENT INFORMATION CIRCULAR 35

   

  
    
      
 

  

   

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  	iii.        a discretionary evaluation of innovation and differentiation by
          the Company.
	 	 
	Fiscal Responsibility (25%) 	 
	
          The Company’s achievement of this strategic objective is measured by reference to:

          

           i.        target revenue;

          

           ii.        target EBITDA; and

          

          iii.        a target number of active
            Lightspeed Payments customers.

           

        

  Employment Agreements, Termination and Change of Control Benefits

   

  The Company has written employment agreements with each NEO and each executive is entitled to receive compensation established by the Company, as well as other
    benefits in accordance with plans available to the most senior employees.

   

  Each NEO is entitled to certain benefits in connection with the termination of their employment without cause or in the event of their resignation for good reason. If
    so terminated or if they resign for good reason, NEOs are entitled to a severance payment calculated as a function of base salary and annual incentive compensation multiplied by the greater of (i) in the case of our Chief Executive Officer, one month
    per year of service or 18 months, (ii) in the case of our President, our Chief Financial Officer and our Chief Product Officer, one month per year of service or 12 months, and (iii) in the case of our Senior Vice President of Global Sales, one month
    per year of service or nine months. Further, in the event that a NEO is terminated within a specified period of time following a change of control of the Company, such NEO will be entitled to severance payments as described above, in addition to full
    vesting of all equity-based awards. Payment of such termination benefits shall be subject to, among other things, the NEO executing a full and satisfactory release in favour of the Company (or any successor entity following a change of control of the
    Company).

   

  The table below shows the estimated incremental payments that would be made to the Company’s NEOs upon the occurrence of certain events as of March 31, 2020, the last
    business day of Fiscal 2020.

   

  	Name	Event	
          Severance1

          

          ($)

          

        	
          Equity-Based Awards2

          

          ($)

          

        	Other 

              Payments	
          Total

          

          ($)

          

        
	Dax Dasilva

          Chief Executive Officer	Termination other than for cause	 	793,013	 	-	 	-	793,013
	Change of control	 	793,013	 	221,612	 	-	1,014,625
	Brandon Nussey

          Chief Financial Officer	Termination other than for cause	 	422,940	 	-	 	-	634,410
	 	Change of control	 	422,940	 	5,662,624	 	-	6,085,464
	Jean Paul Chauvet

          President	Termination other than for cause	 	458,185	 	 	 	-	 
	Change of control	 	458,185	 	13,303,964	 	-	13,762,149
	
          Jim Texier 

          Chief Product Officer

           

        	Termination other than for cause	 	458,185	 	-	 	-	458,185
	Change of control	 	458,185	 	65,456	 	-	523,641
	
          Julian Teixeira

          Senior Vice President of Global Sales

           

        	Termination other than for cause	 	237,904	 	-	 	-	237,904
	Change of control	 	237,904	 	856,080	 	-	1,093,984

   

  		1.	Severance payments are calculated based on base salary as of March 31, 2020, the last business day of Fiscal 2020, and on account of at target
            annual incentive compensation pursuant to the applicable employment agreement of each NEO, reported above in U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian
            dollars into U.S. dollars on March 31, 2020.

   

  MANAGEMENT INFORMATION CIRCULAR 36

   

  
    
      
 

  

   

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  		2.	Based on a price of C$19.04 per subordinate voting share, being the closing price of the subordinate voting shares on the TSX on March 31, 2020,
            converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020.

   

  Outstanding Option-Based Awards and Share-Based Awards

   

  The following table shows all Option-based and Share-based awards outstanding to NEOs in Fiscal 2020:

   

  	Name	Option-Based Awards	Share-Based Awards
	Number of Subordinate
              Voting Shares Underlying Unexercised Options1	Option Exercise Price	Option Expiration Date	
          Value of Unexercised In-the-Money Options2

          ($) 

        	Number of Share Based
              Awards	Value of Share Based
              Awards3
	Dax Dasilva

          Chief Executive Officer	78,864	C$30.28	June 11, 2026	0	16,512	221,612
	
          Brandon Nussey

          Chief Financial Officer

           

        	640,580	$4.72	February 1, 2025	5,573,876	6,605	88,648
	 	21,030	C$30.28	June 11, 2026	0	 	 
	Jean Paul Chauvet

          President	190,880	C$3.68	November 1, 2022	2,066,708	5,779	77,562
	162,516	$2.96	March 31, 2023	1,700,128
	84,232	$2.96	March 31, 2023	881,176
	985,875	$4.72	April 30, 2025	8,578,390
	18,401	C$30.28	June 11, 2026	0
	
          Jim Texier

          Chief Product Officer

        	300,000	C$41.01	August 19, 2026	0	4,877	65,456
	Julian Teixeira

          Senior Vice President of Sales	6,250	$2.96	March 31, 2023	65,383	3,715	49,860
	12,500	$3.40	December 1, 2023	125,266
	25,000	$4.72	February 1, 2025	217,532
	36,250	$5.00	August 3, 2025	305,272
	12,500	$6.00	November 8, 2025	92,766
	11,829	C$30.28	June 11, 2026	0
	50,000	C$35.45	February 28, 2027	0

   

  	1.	Options granted under the Legacy Option Plans or the Amended and Restated Omnibus Incentive Plan, or, in the case of Mr. Texier, an allowance
            under the rules of the TSX as an inducement for him to enter into a contract of full-time employment with the Company, each of which options is exercisable for one subordinate voting share.

  

  	2.	The value of unexercised in-the-money options is calculated based on the difference between the strike price of the option and the closing price
            of the subordinate voting shares on the TSX on March 31, 2020, being C$19.04 per subordinate voting share, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for
            conversion of Canadian dollars into U.S. dollars on March 31, 2020.

  

  	3.	Based on a price of C$19.04 per subordinate voting share, being the closing price of the subordinate voting shares on the TSX on March 31, 2020,
            converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S. dollars on March 31, 2020.

   

  MANAGEMENT INFORMATION CIRCULAR 37

   

  
    
      
 

  

   

  	 	COMPENSATION DISCUSSION AND ANALYSIS

   

  Incentive Plan Awards – Value Vested or Earned During the Year

   

  The following table shows the value of incentive plan awards that vested or were earned for each Named Executive Officer during Fiscal 2020:

   

  	Name	
          Unexercised In-the-Money Value of Option-Based Awards -

          

          Vested During the Year1

           ($) 

        	
          Share-Based Awards -

          

          Value Vested During the Year

          

          ($)

          

        	
          Non-Equity Incentive Plan

          

          Compensation - Value Earned During the Year2

          

          ($) 

        	 
	Dax Dasilva	0	0	0
	Brandon Nussey	3,372,916	0	70,490
	Jean Paul Chauvet	3,544,059	0	181,869
	Jim Texier	0	0	61,001
	Julian Teixeira	626,009	0	145,880
	 	 	 	 	 	 

  	1.	The value of unexercised in-the-money options is calculated based on the difference between the strike price of the option and the closing price
            of the subordinate voting shares on the TSX on the day the options vested, converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for conversion of Canadian dollars into U.S.
            dollars on March 31, 2020.

  

  	2.	The amounts reported in the table above represent bonuses of C$100,000 for Mr. Nussey and C$86,538 for Mr. Texier; and commission payments of
            C$258,006 for Mr. Chauvet and C$206,951 for Mr. Teixeira under the Company’s Sales Commission Plan, in each case converted into U.S. dollars using an exchange rate of 0.7049, being the daily rate of exchange posted by the Bank of Canada for
            conversion of Canadian dollars into U.S. dollars on March 31, 2020.

   

  MANAGEMENT INFORMATION CIRCULAR 38

   

  
    
      
 

  

   

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

   

  STATEMENT OF CORPORATE GOVERNANCE PRACTICES

   

  The Canadian Securities Administrators have issued corporate governance guidelines pursuant to
      National Policy 58-201 – Corporate Governance Guidelines (“NP 58-201”) together with certain related disclosure requirements pursuant to NI-58-101. The corporate governance guidelines set forth in NP 58-201 are recommended as “best
      practices” for issuers to follow. We recognize that good corporate governance plays an important role in our overall success and in enhancing shareholder value and, accordingly, we have adopted certain corporate governance policies and practices. The
      disclosure set out below describes our approach to corporate governance.

   

  Nomination of Directors and Majority Voting Policy

   

  Our CNG Committee is responsible for, annually or as required, recruiting and identifying, and
      recommending to the Board for nomination, individuals qualified to become new Board members, as well as recommending individual directors to serve on the various Board committees. In making its recommendations, the CNG Committee considers the
      competencies that the Board considers to be necessary and desirable for the Board as a whole, and Board committees, to possess, the competencies and skills that the Board considers each existing director to possess, and the competencies, skills,
      perspective and experience each new nominee will bring to the boardroom. The CNG Committee also considers the amount of time and resources that nominees have available to fulfill their duties as a Board member.

   

  The CNG Committee is composed of independent directors within the meaning of the CSA
      Disclosure Instrument. The chair of the CNG Committee leads the nominating process in accordance with and pursuant to the criteria for Board membership as set forth in the Charter of the CNG Committee.

   

  In accordance with the requirements of the TSX, the Board has adopted a “Majority Voting
      Policy” to the effect that a nominee for election as a director who does not receive a greater number of votes “for” than votes “withheld” with respect to the election of directors by shareholders shall tender his or her resignation to the Chair of
      the Board promptly following the meeting of shareholders at which the director was elected. The CNG Committee will consider such offer and make a recommendation to the Board whether to accept it or not. The Board will promptly accept the resignation
      unless it determines that there are exceptional circumstances that should delay the acceptance of the resignation or justify rejecting it. The Board will make its decision and announce it in a press release within 90 days following the meeting of
      shareholders, giving the reasons for not accepting the resignation if such is the case. A director who tenders a resignation pursuant to the Majority Voting Policy will not participate in any meeting of the Board or the CNG Committee at which the
      resignation is considered.

   

  Director Nomination Rights

   

  Under an investor rights agreement (the “Investor Rights Agreement”) dated March 15,
      2019 among the Company, DHIDasilva Holdings Inc., a company controlled by the Company’s founder and Chief Executive Officer, and Caisse de dépôt et placement du Québec (“Caisse”), Caisse is entitled to certain director nomination rights. The
      Investor Rights Agreement provides that Caisse is entitled to nominate one of the Company’s directors as part of the slate of director candidates proposed by the Company in any management information circular, and will continue to be entitled to
      nominate such director for so long as it holds at least 20% of our subordinate voting shares and multiple voting shares (on a non-diluted basis). Moreover, for as long as Caisse holds at least 20% of our subordinate voting shares and multiple voting
      shares (on a non-diluted basis), the Company, acting reasonably, will consult Caisse in respect of any appointment or replacement of the Chair of the Board.

   

  The nominee of Caisse designated under the Investor Rights Agreement has to be considered
      independent within the meaning of National Instrument 52-110 – Audit Committees ("NI 52-110"). Quorum for meetings of the Board will need to include the nominee of Caisse, subject to customary exceptions. Pursuant to the Investor
      Rights Agreement, Caisse has confirmed to the Company that Rob Williams will be the Caisse nominee for election to the Board at the Meeting.

   

   MANAGEMENT INFORMATION CIRCULAR 39

  
     

    
      
 

  

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

  

   

  Independence of Directors

   

  Director Independence

   

  Under National Instrument 58-101 – Disclosure of Corporate Governance Practices ("NI

        58-101"), a director is considered to be independent if he or she is independent within the meaning of NI 52-110. Pursuant to NI 52-110, an independent director is a director who is free from any direct or indirect relationship which could, in
      the view of the Board, be reasonably expected to interfere with a director’s independent judgment. Based on information provided by each director concerning his or her background, employment and affiliations, the Board has determined that two of the
      six directors on the Board will not be considered independent as a result of their employment relationships with the Company.

   

  Our independent Board members are Patrick Pichette, Marie-Josée Lamothe, Rob Williams and Paul
      McFeeters. The non-independent members of our Board are Dax Dasilva, Lightspeed's Chief Executive Officer, and Jean Paul Chauvet, Lightspeed's President.

   

  Certain members of the Board are also members of the board of directors of other public
      companies. The Board has not adopted a director interlock policy but is keeping informed of other public directorships held by its members. No director serves on more than two other public company boards of directors.

   

  Independent Chair of the Board

   

  The Company’s Board is led by an independent Chair, which we believe contributes to the
      Board’s ability to function independently of management and provide effective oversight. Patrick Pichette has been a director of the Company since 2018 and became the Chair of the Board in 2019. As Chair of the Board, Mr. Pichette is principally
      responsible for overseeing the operations and affairs of the Board.

   

  Meetings of Independent Directors

   

  The Board will hold regularly-scheduled quarterly meetings as well as ad hoc meetings from
      time to time. In the course of meetings of the Board or of committees of the Board, the independent directors will from time to time hold meetings, or portions of such meetings, at which neither non-independent directors nor officers of the Company
      are in attendance.

   

  If a director or officer holds an interest in a transaction or agreement under consideration
      at a Board meeting or a Board committee meeting, that director or officer shall not be present at the time the Board or Board committee deliberates such transaction or agreement and shall abstain from voting on the matter, subject to certain limited
      exceptions provided for in the CBCA.

   

  Director Term Limits and Other Mechanisms of Board Renewal

   

  The Board has not adopted director term limits or other automatic mechanisms of board renewal.
      Rather than adopting formal term limits, mandatory age-related retirement policies and other mechanisms of board renewal, the CNG Committee seeks to maintain the composition of the Board in a way that provides, in the judgment of the Board, the best
      mix of skills and experience to provide for our overall stewardship. The CNG Committee also conducts an annual process for the assessment of the Board, each Board committee and each director regarding his, her or its effectiveness and performance,
      and reports evaluation results to the Board.

   

  MANAGEMENT INFORMATION CIRCULAR 40 

  
     

    
      
 

  

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

   

  Charter of the Board

   

  The Board has adopted a written charter (the “Board Charter”) describing, inter alia,
      the Board’s role and overall responsibility to supervise the management of the business and affairs of the Company. The Board, directly and through its Board committees and the Chair of the Board, provides direction to the executive officers of the
      Company, generally through the Chief Executive Officer. The Board has overall responsibility for the Company’s strategic planning, compliance and risk management (including crisis preparedness, information system controls, business continuity,
      cybersecurity and disaster recovery), matters relating to the Chief Executive Officer and other executive officers, corporate governance, and communications with the Company’s shareholders and other stakeholders. The text of the Board Charter is
      reproduced in its entirety in Appendix A.

   

  Skills and Experience of the Board

   

  As noted above, the Nominating and Governance Committee has developed a “competency”
      matrix in which directors indicate their experience in each competency identified as important for a company like Lightspeed. Each director must indicate which of these competencies he or she believes he or she possesses. The table below illustrates
      the mix of experiences in these competencies of our nominee directors.

   

  	 	FINANCE	INDUSTRY KNOWLEDGE	OTHER	
          Geography

        
	Executive

                Leadership	Governance/

                Risk Management	
          Accounting/

          Finance

        	Strategy/

                M&A	Retail/
                Hospitality Sales	Product
                Development/ Management	Marketing/

                Advertising	Innovation/

                Technology	Public
                Board Experience	Human
                Resources/ Compensation	Sustainability
	Patrick
            Pichette					 	 	 					Global
	Dax Dasilva			 	 					 	 		Global
	Jean Paul Chauvet			 	 		 			 	 	 	Global
	Marie-Josée Lamothe			 	 		 			 		 	Global
	Paul McFeeters					 	 	 			 	 	Global
	Rob Williams									 		 	Global

   

  Committees of the Board

   

  The Board has established two standing committees: the Audit Committee, which is required by
      Canadian securities laws for all reporting issuers, and the CNG Committee.

   

  The Board has adopted a written position description for each of our committee chairs which
      sets out each of the committee chair’s key responsibilities, including, among others, duties relating to setting committee meeting agendas, chairing committee meetings and working with the respective committee and management to ensure, to the
      greatest extent possible, the effective functioning of the committee.

   

  MANAGEMENT INFORMATION CIRCULAR 41 

  
     

    
      
 

  

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

   

  Audit Committee

   

  The Audit Committee consists of a minimum of three directors, all of whom are persons
      determined by the Board to be both independent directors and financially literate within the meaning of NI 52-110. The Audit Committee is currently comprised of Paul McFeeters, chair of the committee, Patrick Pichette and Rob Williams. Each of the
      Audit Committee members has an understanding of the accounting principles used to prepare financial statements and varied experience as to the general application of such accounting principles, as well as an understanding of the internal controls and
      procedures necessary for financial reporting. All members of the Audit Committee are Independent Directors. Paul McFeeters and Patrick Pichette have been determined by the Board to be the Audit Committee financial experts.

   

  The Board adopted a written charter, the text of which is reproduced in its entirety in
      Exhibit A to the Company’s annual information form, available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at investors.lightspeedhq.com, setting forth the purpose, composition, authority and responsibility of
      the Audit Committee, consistent with NI 52-110. The Audit Committee assists the Board in fulfilling its oversight of, among other things:

   

  		●	the quality and integrity of the Company’s financial statements and related information;

  

  		●	the qualifications, independence, appointment and performance of the external auditor;

  

  		●	the accounting and financial reporting policies, practices and procedures of the Company and its
            subsidiaries and affiliates;

  

  		●	the Company’s risk management practices and legal and regulatory compliance;

  

  		●	management’s design, implementation and effective conduct of internal controls over financial
            reporting and disclosure controls and procedures;

  

  		●	the performance of the Company’s internal audit function, if applicable; and

  

  		●	preparation of disclosures and reports required to be prepared by the Audit Committee by any law,
            regulation, rule or listing standard.

   

  It is the responsibility of the Audit Committee to maintain free and open means of
      communication between the Audit Committee, the external auditor and the management of the Company. The Audit Committee has full access to the Company’s management and records and external auditor as necessary to carry out these responsibilities. The
      Audit Committee has the authority to carry out such special investigations as it sees fit in respect of any matters within its various roles and responsibilities. The Company shall provide appropriate funding, as determined by the Audit Committee,
      for the payment of compensation to the external auditor for the purpose of rendering or issuing an audit report and to any advisors employed by the Audit Committee.

   

  Additional details regarding the Audit Committee can be found in the section entitled “Audit
      Committee” of the Company’s annual information form, available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at investors.lightspeedhq.com.

   

  Compensation, Nominating and Governance Committee

   

  The CNG Committee consists of a minimum of three directors, all of whom are independent
      directors, and are charged with overseeing executive compensation, management development and succession, director compensation and executive compensation disclosure. It also assists the Board in overseeing corporate governance, the composition of
      the Board and its committees, and the effectiveness of the Board, its committees and the directors themselves. The CNG Committee is currently comprised of Patrick Pichette, chair of the CNG Committee, Marie-Josée Lamothe and Paul McFeeters. No member
      of the CNG Committee is an executive officer of the Company, and as such, the Board believes that the CNG Committee is able to conduct its activities in an objective manner.

   

  MANAGEMENT INFORMATION CIRCULAR 42 

  
     

    
      
 

  

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

   

  The Board adopted a written charter setting forth the purpose, composition, authority and
      responsibility of the CNG Committee.

   

  The CNG Committee is responsible for, among other things:

   

  		●	the Company’s overall compensation philosophy;

  

  		●	overseeing matters related to executive and director compensation;

  

  		●	reviewing management’s assessment of existing management resources and succession plans;

  

  		●	reviewing executive compensation disclosure before the Company publicly discloses this information;

  

  		●	overseeing the Company’s corporate governance, including governance policies and processes;

  

  		●	reviewing and making recommendations regarding the composition of the Board and committees thereof;

  

  		●	identifying and selecting or recommending to the Board for selection qualified nominees for the Board
            and committees thereof; and

  

  		●	reviewing and assessing the performance, effectiveness and contribution of the Board, committees
            thereof and the directors themselves.

   

  The CNG Committee is responsible for reviewing and assessing at least annually the
      performance, effectiveness and contribution of the Board, Board committees and the directors themselves and reporting on such review and assessment to the Board. This shall include a review of the Board’s mandate and the charters of each committee
      thereof. The CNG Committee will also be responsible for overseeing the onboarding of new directors and continuing education programs for our directors.

   

  Code of Ethics

   

  We have adopted a written code of conduct and ethics (the “Code of Ethics”) that
      applies to all of our officers, directors, employees, contractors and agents acting on behalf of the Company. The objective of the Code of Ethics is to provide guidelines for maintaining our and our subsidiaries integrity, trust and respect.

   

  The Code of Ethics addresses compliance with laws, rules and regulations, conflicts of
      interest, confidentiality, commitment, preferential treatment, financial information, internal controls and disclosure, protection and proper use of our assets, communications, fair dealing, fair competition, due diligence, illegal payments, equal
      employment opportunities and harassment, privacy, use of Company computers and the internet, political and charitable activities and reporting any violations of law, regulation or the Code of Ethics. The Board has ultimate responsibility for
      monitoring compliance with the Code of Ethics and it monitors compliance through the CNG Committee.

   

  The Code of Ethics is distributed to and signed by each of the Company’s employees when they
      are hired. In addition, the Company conducts an annual certification process to monitor compliance with the Code of Ethics and the Corporate Secretary reports the results of such process to the Board on an annual basis.

   

  Diversity

   

  Having a diverse Board and senior management offers a depth of perspective that
      enhances Board and management operations and performance. Having a diverse and inclusive organization overall is beneficial to our success, and we are committed to diversity and inclusion at all levels to ensure that we attract, retain and promote
      the brightest and most talented individuals.

   

  The Board does not specifically define diversity nor set targets for specific
      designated groups, but values diversity of experience, perspective, education, background, race, gender and national origin as part of its overall evaluation of director nominees for election or re-election to the Board and as part of its evaluation
      of candidates for management positions. This is achieved through ensuring that diversity considerations are taken into account in Board and senior management succession planning, continuously monitoring the level of representation on our Board and in
      senior management positions of women, visible minorities, Aboriginal persons and persons with disabilities, continuing to broaden recruiting efforts to attract and interview qualified candidates, and committing to retention and training to ensure
      that our most talented employees are promoted from within our organization.

   

  MANAGEMENT INFORMATION CIRCULAR 43 

  
     

    
      
 

  

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

   

  Recommendations concerning director nominees and appointment of executive officers
      are based on competence, merit and performance, as well as expected contribution to the Board or management’s performance. Commitment to diversity is, and will remain a key priority and consideration, as it is beneficial that a diversity of
      backgrounds, views and experiences be present at the Board and management levels.

   

  The following chart sets out the representation of women, visible minorities, Aboriginal
      peoples and persons with disabilities on the Company’s board of directors and senior management as well as the percentage of the board of directors and senior management comprised of persons from each such designated group.

   

  	 	Women	Visible Minorities	Aboriginal peoples	Persons with disabilities
	 	Number	Percent	Number	Percent	Number	Percent	Number	Percent
	Board of Directors	1	17%	1	17%	0	-	0	-
	Executive Officers	4	27%	3	20%	0	-	0	-

   

  Directors' and Officers' Liability Insurance

   

  Our and our subsidiaries’ directors and officers are covered under our existing directors’ and
      officers’ liability insurance. Under this insurance coverage, we and our subsidiaries will be reimbursed for insured claims where payments have been made under indemnity provisions on behalf of our and our subsidiaries’ directors and officers,
      subject to a deductible for each loss, which will be paid by us. Our and our subsidiaries’ individual directors and officers will also be reimbursed for insured claims arising during the performance of their duties for which they are not indemnified
      by us or our subsidiaries. Excluded from insurance coverage are illegal acts, acts which result in personal profit and certain other acts.

   

  Director Orientation and Continuing Education

   

  New directors will meet with the Chair of the Board and executive officers. New directors will
      be provided with comprehensive orientation and education as to the nature and operation of the Company and our business, the role of the Board and Board committees, and the contribution that an individual director is expected to make.

   

  The CNG Committee is responsible for overseeing director continuing education designed to
      maintain or enhance the skills and abilities of the directors and to ensure that their knowledge and understanding of our business remains current. The chair of each Board committee is responsible for coordinating orientation and continuing director
      development programs relating to the committee’s mandate.

   

  The members of the Board are registered as members of the Institute of Corporate Directors
      (“ICD”). The ICD offers highly regarded professional development programs that provide flexible director education and learning opportunities and resources. In the November 2020, the CNG Committee mandated that each director participate in a minimum
      of one hour of continuing education courses offered by the ICD.

   

  Risk Management

   

  The Board implements its risk oversight function both as a whole and through its committees.
      The Board oversees both the processes in place to identify business risks and opportunities and the implementation of processes to manage such risks and opportunities.

   

  MANAGEMENT INFORMATION CIRCULAR 44 

  
     

    
      
 

  

   

  

  	 	STATEMENT OF CORPORATE
            GOVERNANCE PRACTICES

   

  The Board's responsibilities include:

   

  		●	Building a culture of honesty and accountability throughout the Company by reviewing on an annual
            basis the recommendations of the CNG Committee regarding changes to the Code of Business Conduct and Ethics and any waivers or violations thereof.

   

  		●	Overseeing legal and regulatory compliance and the effectiveness of the Company’s compliance and
            enterprise risk management practices, including reviewing reports provided at least annually by management on the risks inherent in the Company’s business (including crisis preparedness, information system controls, business continuity,
            cybersecurity and disaster recovery).

   

  		●	Identifying the principal risks of the Company’s business and ensuring the implementation of
            appropriate systems to manage these risks.

   

  		●	Monitoring the implementation of procedures and initiatives relating to corporate, social and
            environmental responsibilities, and health and safety rules and regulations.

   

  		●	Reviewing and approving, with the assistance of the CNG Committee, any recommended changes to the
            corporate governance policies and processes adopted by the Company.

   

  The Audit Committee oversees the Company’s policies with respect to risk assessment and risk
      management, the Company’s insurance coverage, as well as the Company’s major financial risk exposures and the steps management has undertaken to control them.

   

  MANAGEMENT INFORMATION CIRCULAR 45 

  
     

    
      
 

  

   

  

  	 	OTHER INFORMATION AND
            APPROVAL OF MANAGEMENT INFORMATION CIRCULAR

   

  OTHER INFORMATION

   

  Indebtedness of Directors and Senior Executives

   

  As at May 31, 2020, none of our directors or executive officers, and none of their respective
      associates, is indebted to us or any of our subsidiaries or another entity whose indebtedness is the subject of a guarantee, support agreement, letter of credit or other similar agreement or understanding provided to us or any of our subsidiaries.

   

  Additional Information

   

  The Company is a reporting issuer under the securities legislation of all provinces of Canada
      and is therefore required to file financial statements and management information circulars with the various securities regulatory authorities in such provinces. The Company also files an annual information form with such securities regulatory
      authorities. Copies of the Company’s latest annual information form, latest audited financial statements, interim financial statements and management’s discussion and analysis (“MD&A”) filed since the date of the latest audited financial
      statements, and latest management information circular may be obtained on request from the Corporate Secretary of the Company at dan.micak@lightspeedhq.com or at www.sedar.com, or on Lightspeed's investor relations website at https://investors.lightspeedhq.com/English/home/default.aspx. Financial information is provided in the Company’s comparative financial statements and MD&A for its most recently completed fiscal year. The Company may require
      the payment of a reasonable charge when the request is made by a person other than a holder of securities of the Company.

   

  Shareholder Proposals for Next Annual Meeting of Shareholders

   

  The Company will include proposals from shareholders that comply with applicable laws in next
      year’s management proxy circular for its next annual shareholder meeting to be held in respect of the fiscal year ending on March 31, 2021. Shareholder proposals must be received prior to the close of business on March 23, 2021 and be sent to
      the Company's Corporate Secretary by email at dan.micak@lightspeedhq.com.

   

  APPROVAL OF MANAGEMENT INFORMATION CIRCULAR

   

  The contents and the sending of this Circular have been approved by the Board of Directors.

   

  Dated at Montréal, Québec, Canada, June 26, 2020.

   

  MANAGEMENT INFORMATION CIRCULAR 46 

  
     

    
      
 

  

   

  

  	 	SCHEDULE “A”

   

  SCHEDULE “A”

   

  CHARTER OF THE BOARD OF DIRECTORS

   

  CHARTER OF the BOARD OF DIRECTORS 

   

  I.         GENERAL 

   

  1.        Mandate and Purpose 

   

  The board of directors (the “Board”) of Lightspeed POS Inc. (the “Company”) is
      responsible for supervising the management of the business and affairs of the Company. The Company’s officers and employees are responsible for day-to-day management and conduct of business and the implementation of any strategic or business plans
      approved by the Board. The Board shall guide management and oversee management’s execution of the Company’s strategic and business plans.

   

  Each director is responsible for:

   

  (a)       acting honestly and in good faith with a view to the Company’s best interests; and

   

  (b)       exercising the care, diligence and skill that a reasonably prudent person would
      exercise in comparable circumstances.

   

  2.        Authority 

   

  (a)       The Board has the authority to delegate to subcommittees, provided however that the
      Board shall not delegate any power or authority required by any law, regulation, rule or listing standard to be exercised by the Board as a whole.

   

  (b)       The Board has the authority, and the Company will provide it with proper funding to
      enable it, to:

   

  (i)        engage independent counsel and other advisors as it determines necessary or
      advisable to carry out its duties and to set and pay the compensation for any such advisors; and

   

  (ii)       communicate directly with the external auditors and to obtain information it
      requires from employees, officers, directors and external parties.

   

  II.        PROCEDURAL MATTERS 

   

  1.        Composition 

   

  The number of directors shall be not less than three and not more than 15 and is to be fixed
      by the Board in accordance with applicable laws, regulations, rules and listing standards upon the recommendation of the Compensation, Nominating and Governance Committee. The size of the Board should be one that can function effectively as a board.

   

  The Board will be comprised of a majority of “independent” directors as such term is defined
      by applicable laws, regulations, rules and listing standards. For a director to qualify as “independent”, the Board must affirmatively determine that the director has no relationship with the Company that would interfere with the exercise of
      independent judgment in carrying out the responsibilities of a director.

   

   MANAGEMENT INFORMATION 

  CIRCULAR 47

  
     

    
      
 

  

   

  

  	 	SCHEDULE “A”

   

  At least three directors shall be “financially literate” as such terms are defined by
      applicable laws, regulations, rules and listing standards and at least one director will have accounting or related financial management experience or expertise.

   

  2.        Board Chair 

   

  The Board shall appoint one member to act as its chair (the “Chair”), which Chair shall
      have the duties and responsibilities set out in the Board Chair Position Description.

   

  If at any point the Chair is not independent, the Board shall also appoint one member as a
      lead independent director, which lead independent director shall have the duties and responsibilities set out in the Lead Independent Director Position Description.

   

  The Chair may be removed from the position at any time at the discretion of the Board. The
      incumbent Chair will continue in office until a successor is appointed or he or she is removed by the Board or ceases to be a director of the Company. If the Chair is absent from a meeting, the Board will, by majority vote, select another director to
      preside at that meeting.

   

  3.        Board Committees 

   

  Subject to applicable laws, regulations, rules and listing standards, the Board shall
      determine the size, composition and role of its committees (including the type of committees to be established) and the methods by which the committees aid the Board in fulfilling its duties and responsibilities. All committees will operate pursuant
      to a written charter which sets forth the duties and responsibilities of the committee. Committee charters will be subject to periodic review and assessment by the relevant committee which shall recommend any proposed changes to the Board.

   

  The Board shall appoint the members of each committee of the Board promptly after each annual
      shareholders’ meeting upon the recommendation of the Compensation, Nominating and Governance Committee. Each committee member shall be appointed and hold office in accordance with the charter of the committee to which such member is appointed.

   

  4.        Meetings 

   

  The Chair is responsible for developing and setting the agenda for Board meetings and
      determining the time, place and frequency (which shall be at least quarterly) of Board meetings.

   

  Each director is responsible for attending and participating in Board meetings.

   

  The Board and the Chair may invite any officer or employee of the Company or any advisors as
      it deems appropriate from time to time to attend Board meetings (or any part thereof) and assist in the discussion and consideration of matters relating to the Board. The Board will meet in camera at each meeting and the independent
      directors shall decide, at each Board meeting, whether an in camera meeting without the non-independent directors and management present, as applicable, is appropriate at such meeting.

   

  5.        Board Performance and Charter Review 

   

  The Board will annually review and assess its performance, effectiveness and contribution,
      including an evaluation of whether this Charter appropriately addresses the matters that are and should be within its scope.

   

  MANAGEMENT INFORMATION 

  CIRCULAR 48 

  
     

    
      
 

  

   

  

  	 	SCHEDULE “A”

   

  The Board will conduct such review and assessment in such manner as it deems appropriate with the assistance of
      the Compensation, Nominating and Governance Committee.

   

  III.         RESPONSIBILITIES 

   

  In addition to such responsibilities as may be required by applicable laws, regulations, rules
      or listing standards, the responsibilities of the Board include:

   

  1.          Strategic Planning 

   

  		(a)	Reviewing and approving the short and long term strategic and business plans prepared by management
            for the Company and evaluating management’s progress in carrying out these strategic and business plans.

   

  		(b)	Reviewing and, where appropriate, approving the Company’s financial objectives, plans and actions,
            including significant capital allocations and expenditures.

   

  		(c)	Reviewing and approving material transactions not in the ordinary course of business.

   

  2.          Chief Executive Officer and other Executive Officers 

   

  		(a)	Appointing the Chief Executive Officer (“CEO”) and developing and maintaining a written
            position description for the role of CEO.

   

  		(b)	Developing corporate goals and objectives that the CEO is responsible for meeting, considering the
            Compensation, Nominating and Governance Committee’s evaluation of the CEO’s performance against such corporate goals and objectives and determining, on the basis of the Compensation, Nominating and Governance Committee’s recommendation, the
            CEO’s annual compensation.

   

  		(c)	Reviewing the Compensation, Nominating and Governance Committee’s recommendations concerning the goals
            and objectives of the Company’s executive compensation plans and, where appropriate, amending existing plans or adopting new ones.

   

  		(d)	Reviewing and, where appropriate, accepting the Compensation, Nominating and Governance Committee’s
            recommendations with respect to compensation of executive officers.

   

  		(e)	Taking steps to satisfy itself as to the integrity of the CEO and other executive officers and that
            the CEO and other executive officers foster a culture of integrity throughout the Company.

   

  		(f)	Reviewing, at least annually, with the assistance of the Compensation, Nominating and Governance
            Committee, appointment and succession plans for the CEO and management of the Company.

   

  3.          Reporting and Public Disclosure, Auditing and Internal Controls 

   

  		(a)	Approving, after they have been recommended for approval by the Audit Committee, the Company’s annual
            and interim financial statements, MD&A, prospectus-type documents, earnings press releases (including financial outlook, future-oriented financial information and other forward-looking information) and other disclosure material filed with
            any securities commission before the Company publicly discloses this information.

   

  MANAGEMENT INFORMATION 

  CIRCULAR 49 

  
     

    
      
 

  

   

  

  	 	SCHEDULE “A”

   

  		(b)	Approving, based on the recommendation of the Audit Committee, the external auditor to be nominated
            for the purpose of preparing or issuing an auditor’s report or performing other audit, review or attest services for the Company and the compensation of the external auditor.

   

  		(c)	Adopting a communication policy for the Company and overseeing communications with shareholders, other
            stakeholders, analysts and the public, including the adoption of measures for receiving feedback from stakeholders.

   

  		(d)	Reviewing and monitoring, with the assistance of the Audit Committee,

   

  		(i)	the quality and integrity of the Company’s financial statements and related information;

   

  		(ii)	the qualifications, independence, appointment and performance of the external auditor;

   

  		(iii)	the accounting and financial reporting policies, practices and procedures of the Company and its
            subsidiaries and affiliates; and

   

  		(iv)	adequacy and effectiveness of the Company’s system of internal controls over financial reporting,
            including any significant deficiencies and significant changes in internal controls, and its disclosure controls and procedures, in the latter case with a view to ensuring all public disclosures are timely, factual, accurate and broadly
            disseminated in accordance with applicable laws, regulations, rules and listing standards.

   

  4.          Compliance and Risk Management 

   

  		(a)	Building a culture of honesty and accountability throughout the Company by reviewing on an annual
            basis the recommendations of the Compensation, Nominating and Governance Committee regarding changes to the Code of Business Conduct and Ethics and any waivers or violations thereof.

   

  		(b)	Overseeing legal and regulatory compliance and the effectiveness of the Company’s compliance and
            enterprise risk management practices, including reviewing reports provided at least annually by management on the risks inherent in the Company’s business (including crisis preparedness, information system controls, business continuity,
            cybersecurity and disaster recovery).

   

  		(c)	Identifying the principal risks of the Company’s business, and ensuring the implementation of
            appropriate systems to manage these risks.

   

  		(d)	Monitoring the implementation of procedures and initiatives relating to corporate, social and
            environmental responsibilities, and health and safety rules and regulations.

   

  		(e)	Reviewing and approving, with the assistance of the Compensation, Nominating and Governance Committee,
            any recommended changes to the corporate governance policies and processes adopted by the Company.

   

  5.          Board Composition and Administration 

   

  (a)        Overseeing the recruitment and selection, having regard to evaluation criteria
      recommended by the Compensation, Nominating and Governance Committee, of new directors and retention of existing directors.

   

  MANAGEMENT INFORMATION 

  CIRCULAR 50 

  
     

    
      
 

  

   

  

  	 	SCHEDULE “A”

   

  (b)       Considering the recommendations of the Compensation, Nominating and Governance
      Committee as to the adequacy, amount and form of director compensation in light of retention objectives and director’s time commitments, responsibilities and risks faced.

   

  (c)       Determining, with the assistance of the Compensation, Nominating and Governance
      Committee, those individuals proposed to be director nominees for each annual meeting of shareholders, taking into consideration past performance and the competencies and skills it considers necessary for effective board operation, as well as
      diversity of candidates, particularly with respect to the representation of women on the Board.

   

  (d)       Receiving and reviewing the Compensation, Nominating and Governance Committee’s
      annual review and assessment of the performance, effectiveness and contributions of the Board, committees thereof and the directors themselves.

   

  (e)       Considering the recommendations of the Compensation, Nominating and Governance
      Committee regarding new director onboarding and continuing education of existing directors.

   

  6.        Advice and Counsel to Management 

   

  (a)       Providing advice and counsel to management, both in formal Board and committee
      meetings and through informal, individual director contacts with the CEO and other members of management.

   

  7.        Limitation on Duties of the Board 

   

  The Board shall discharge its responsibilities and shall assess the information provided by
      the Company’s management and any external advisors, including the external auditor, in accordance with its business judgment. Directors are entitled to rely, absent knowledge to the contrary, on the integrity of the persons from whom they receive
      information and the accuracy and completeness of the information provided.

   

  Nothing in this Charter is intended or may be construed as to impose on any director a
      standard of care or diligence that is in any way more onerous or extensive than the standard to which the directors are subject under applicable law. This Charter is not intended to change or interpret the Company’s amended articles of incorporation
      or by-laws or any law, regulation, rule or listing standard to which the Company is subject, and this Charter should be interpreted in a manner consistent with all such applicable laws, regulations, rules and listing standards. The Board may, from
      time to time, permit departures from the terms hereof, either prospectively or retrospectively, and no provision contained herein is intended to give rise to civil liability to Company securityholders or other liability whatsoever.

   

  ********

  MANAGEMENT INFORMATION 

  CIRCULAR 51 

  

   

  

  
     

    
      
 

  

   

  

  	 	SCHEDULE “B”

   

  SCHEDULE “B”

   

  RESOLUTION IN RESPECT OF AMENDMENTS TO AMENDED AND RESTATED OMNIBUS INCENTIVE PLAN

   

  

      WHEREAS the Company wishes to amend the Amended and Restated Omnibus Incentive Plan of the Company dated November 18, 2019 (the “Plan”) to convert the Plan from a “fixed plan” to a “rolling plan”, as more fully described in the
      management information circular of the Company dated June 26, 2020;

   

  WHEREAS the proposed amendments to the Plan require the approval of shareholders of
      the Company, as set forth in Section 613(a) of the TSX Company Manual; and

   

  WHEREAS the proposed amendments to the Plan have been approved by the board of
      directors of the Company on June 25, 2020;

   

  BE IT RESOLVED THAT:

   

  		1.	The conversion of the Plan from a “fixed plan” to a “rolling plan” (the "Amended Plan") be and
            is hereby approved, so that (i) the maximum number of subordinate voting shares of the Company which may be reserved and set aside for issuance, including for payments in respect of awards (as applicable), under the Amended Plan, the Amended
            and Restated 2012 Stock Option Plan dated March 15, 2019 and the Amended and Restated 2016 Stock Option Plan dated March 15, 2019, be changed from 10,185,862 subordinate voting shares of the Company to a maximum aggregate number of subordinate
            voting shares equal to 15% of all subordinate voting shares and multiple voting shares of the Company issued from time to time, on a non-diluted basis;

   

  		2.	The Company has the ability to continue granting options and awards, as applicable, under the Amended
            Plan until the date that is the third anniversary of the date of approval of this resolution, being August 6, 2023;

   

  		3.	Any director or officer of the Company be and is hereby authorized to make any and all additions,
            deletions and modifications to the Amended Plan as may be necessary or advisable to give effect to this resolution or as may be required by applicable regulatory authorities;

   

  		4.	Any director or officer of the Company be and is hereby authorized to do such things and to sign,
            execute and deliver all documents that such person may, in his or her discretion, determine to be necessary in order to give full effect to the intent and purpose of this resolution; and

   

  		5.	The board of directors of the Company be and is hereby authorized to abandon all or any part of this
            resolution at any time prior to giving effect thereto.

   

  MANAGEMENT INFORMATION 

  CIRCULAR 52

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