Cogeco 2010 Annual Report Download - page 74

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Consolidated Financial Statements COGECO CABLE INC. 2010 73
Under the Management Agreement, the Corporation pays monthly fees equal to 2% of its total revenue to COGECO Inc. for the above-
mentioned services. In 1997, the management fee was capped at $7,000,000 per year, subject to annual adjustments based on increase in the
Consumer Price Index in Canada. The Audit Committee of the Corporation can increase the cap under certain circumstances upon request to
that effect by COGECO Inc. Accordingly, for fiscal year 2010 and 2009, the maximum amount of $9,019,000 was paid to COGECO Inc. In
addition, the Corporation reimburses COGECO Inc.’s out-of-pocket expenses incurred with respect to services provided to the Corporation
under the Management Agreement.
21. Non-monetary transactions
During fiscal year 2010 and 2009, the Corporation has entered into non-monetary transactions for amounts of $4,206,000. Related revenue
and operating costs of an equivalent amount were recorded.
22. Governmental assistance
In 2010, the Corporation recorded tax credits related to research and development costs in the amount of $921,000. These credits were
accounted for as a reduction of the fixed assets for an amount of $842,000 and as a reduction of operating costs for an amount of $79,000.
23. Comparative figures
Certain comparative figures have been reclassified to conform to the current year’s presentation.