Related Party and Other Transactions
The Company entered into the following transactions with related parties during the nine
month period ended September 30, 2009:
a) Paid underwriting fees of $nil (2008: $2.3 million) to Macquarie Capital
(Canada) Ltd. which retains the Chairman and CEO of the Company as an
employee.
b) Paid head office rent of $0.09 million (2008: $nil) under a subleasing
arrangement to Kingsway Capital of Canada Inc.; a subsidiary of a company
which retains the Chairman and CEO of the Company as a director.
c) In August 2009, KIH (Macau) Ltd, a subsidiary of a company which retains
the Chairman and CEO of the Company as a director, entered into an
agreement with the Company to provide advisory services until December 31,
2009 with a renewable clause for an extension of three months. The advisory
fee includes a work fee and a success fee which are only payable upon the
fulfilment of certain conditions. For the period ended September 30, 2009,
there was no advisory fee paid by the Company in relation to this advisory
agreement.