Cogeco 2002 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2002 Cogeco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 45

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45

37
Cogeco Cable Inc.
17. Commitments and contingencies
a) As at August 31, 2002, the Corporation and its subsidiaries are committed under lease agreements to pay
annual rent as follows:
2008
and
2003 2004 2005 2006 2007 thereafter
$10,927 $ 10,402 $ 10,524 $ 10,561 $10,567 $13,856
b) The Corporation and its subsidiaries are involved in matters involving litigation arising out of the ordinary
course and conduct of its business. Although such matters cannot be predicted with certainty, management
does not consider the Corporation’s exposure to litigation to be material to these financial statements.
18. Related party transactions
Cogeco Cable Inc. is a subsidiary of COGECO Inc., which holds 39.4% of the Corporation's participating shares.
COGECO Inc. and the Corporation executed, on September 1, 1992, a management agreement under which
the parent company agreed to provide certain management, administrative, financial and strategic planning
services. Under this agreement, the Corporation pays management fees equal to 2% of its total revenue subject
to a maximum amount. Management fee payments, as at August 31, 2002, are limited to $7,710,000 ($7,518,000
in 2001) and are indexed annually based on the Consumer Price Index. This limit could be increased under certain
circumstances. During the year, the Corporation paid management fees amounting to $7,710,000 ($7,518,000
in 2001) to COGECO Inc.
19. Comparative figures
Certain comparative figures have been reclassified in order to conform to the presentation adopted in 2002.