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ANNUAL INFORMATION FORM Fiscal Year Ended August 31, 2010 Corus

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ANNUAL INFORMATION FORM Fiscal Year Ended August 31, 2010 Corus ANNUAL INFORMATION FORM Fiscal year ended August 31, 2010 Corus Entertainment Inc. November 5, 2010 ANNUAL INFORMATION FORM ‐ CORUS ENTERTAINMENT INC. Table of Contents FORWARD‐LOOKING STATEMENTS ........................................................................................................ 3 INCORPORATION OF CORUS .................................................................................................................. 4 Organization and Name ............................................................................................................................ 4 Subsidiaries ............................................................................................................................................... 4 GENERAL DEVELOPMENT OF THE BUSINESS ........................................................................................... 5 Historical Background ............................................................................................................................... 5 Significant Acquisitions and Divestitures ................................................................................................. 5 DESCRIPTION OF THE BUSINESS ............................................................................................................. 6 Radio ......................................................................................................................................................... 6 Description of the Industry ................................................................................................................ 6 Competitive Conditions ..................................................................................................................... 7 Business Overview ............................................................................................................................. 7 Operating Strategy ............................................................................................................................. 10 Television .................................................................................................................................................. 10 Description of the Industry ................................................................................................................ 10 Competitive Conditions ..................................................................................................................... 13 Business Overview ............................................................................................................................. 14 Operating Strategy ............................................................................................................................. 17 ADDITIONAL INFORMATION CONCERNING CORUS’ BUSINESSES ............................................................ 19 Intangible Properties ................................................................................................................................ 19 Seasonality and Cycles .............................................................................................................................. 19 Economic Dependence ............................................................................................................................. 20 Environmental Protection ........................................................................................................................ 20 Employees ................................................................................................................................................ 20 Foreign Operations ................................................................................................................................... 20 Lending ..................................................................................................................................................... 20 Bankruptcy................................................................................................................................................ 20 Reorganizations ........................................................................................................................................ 20 Social or Environmental Policies .............................................................................................................. 20 Risk Factors ............................................................................................................................................... 21 Control of Corus by the Shaw family ........................................................................................................ 21 CANADIAN COMMUNICATIONS INDUSTRY – REGULATORY ENVIRONMENT .............................................. 21 Canadian Radio‐television and Telecommunications Commission .......................................................... 21 Industry Canada ........................................................................................................................................ 22 Restrictions on Non‐Canadian Ownership ............................................................................................... 22 Broadcasting Services ............................................................................................................................... 22 Radio Undertakings .................................................................................................................................. 23 Specialty and Premium Television Networks Undertakings ..................................................................... 23 Local Television Undertakings .................................................................................................................. 24 Canadian Content Requirement for Broadcasters ................................................................................... 25 Film and Television Tax Credits and Grants ............................................................................................. 25 International Treaty Co‐Productions ........................................................................................................ 25 Competition Act Requirements ................................................................................................................ 25 Investment Canada Act ............................................................................................................................ 26 Copyright Act Requirements .................................................................................................................... 26 CAPITAL STRUCTURE .............................................................................................................................. 26 Description of Capital Structure ............................................................................................................... 26 Share Constraints ..................................................................................................................................... 31 Ratings ...................................................................................................................................................... 31 2 MARKET FOR SECURITIES ....................................................................................................................... 32 Marketplaces ............................................................................................................................................ 32 Trading Price and Volume ........................................................................................................................ 32 DIVIDEND POLICY ................................................................................................................................... 32 DIRECTORS ............................................................................................................................................ 34 OFFICERS ............................................................................................................................................... 35 AUDIT COMMITTEE ................................................................................................................................ 36 Charter ...................................................................................................................................................... 36 Composition of the Audit Committee ...................................................................................................... 36 Principal Accounting Fees and Services – Independent Auditors ............................................................ 36 LEGAL AND REGULATORY ....................................................................................................................... 37 INTERESTS OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS ............................................ 38 TRANSFER AGENTS................................................................................................................................. 38 MATERIAL CONTRACTS .......................................................................................................................... 38 Senior Secured Credit Facility ................................................................................................................... 38 Trust Indenture for 7.25% Senior Unsecured Guaranteed Notes due 2017 ...........................................
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