Rogers 2005 Annual Report Download - page 142

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138 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 21. Guarantees:
The Company has entered into agreements that contain features which meet the definition of a guarantee under GAAP.
A description of the major types of such agreements is provided below:
(a ) B US I N ES S S A LE A ND BU S IN E S S C OM B IN A T IO N A G RE E M EN T S:
As part of transactions involving business dispositions, sales of assets or other business combinations, the Company may
be required to pay counterparties for costs and losses incurred as a result of breaches of representations and warranties,
intellectual property right infringement, loss or damages to property, environmental liabilities, changes in laws and
regulations (including tax legislation), litigation against the counterparties, contingent liabilities of a disposed business
or reassessments of previous tax filings of the corporation that carries on the business.
The Company is unable to make a reasonable estimate of the maximum potential amount it could be required
to pay counterparties. The amount also depends on the outcome of future events and conditions, which cannot be
predicted. No amount has been accrued in the consolidated balance sheets relating to this type of indemnification or
guarantee at December 31, 2005 or 2004. Historically, the Company has not made any significant payments under these
indemnifications or guarantees.
(b ) SA L ES O F S ER V ICE S :
As part of transactions involving sales of services, the Company may be required to pay counterparties for costs and
losses incurred as a result of breaches of representations and warranties, changes in laws and regulations (including tax
legislation) or litigation against the counterparties.
The Company is unable to make a reasonable estimate of the maximum potential amount it could be
required to pay counterparties. No amount has been accrued in the consolidated balance sheets relating to this type of
indemnification or guarantee at December 31, 2005 or 2004. Historically, the Company has not made any significant
payments under these indemnifications or guarantees.
(c ) P U RCH A SE S A N D D E VE L OP M E NT OF AS S E TS :
As part of transactions involving purchases and development of assets, the Company may be required to pay counterparties
for costs and losses incurred as a result of breaches of representations and warranties, loss or damages to property,
changes in laws and regulations (including tax legislation) or litigation against the counterparties.
The Company is unable to make a reasonable estimate of the maximum potential amount the Company could
be required to pay counterparties. The amount also depends on the outcome of future events and conditions, which can-
not be predicted. No amount has been accrued in the consolidated balance sheets relating to this type of indemnification
or guarantee at December 31, 2005 or 2004. Historically, the Company has not made any significant payments under
these indemnifications or guarantees.
(d ) IN D EM N I FI C AT I ONS :
The Company indemnifies its directors, officers and employees against claims reasonably incurred and resulting from the
performance of their services to the Company, and maintains liability insurance for its directors and officers as well as
those of its subsidiaries.
Note 22. Contingent liabilities:
(a) On August 9, 2004, a proceeding under the Class Actions Act (Saskatchewan) was brought against Wireless
and other providers of wireless communications services in Canada. The proceeding involves allegations by
Wireless customers of breach of contract, misrepresentation and false advertising with respect to the system
access fee charged by Wireless to some of its customers. The plaintiffs seek unquantified damages from the
defendant wireless communications service providers. Wireless believes it has good defences to the allegations.
The proceeding has not been certified as a class action and it is too early to determine whether the proceeding