Schedule 3

CATEGORIES OF ELIGIBLE EXPENSES FOR ODYSSEY AND ACCENT 2006-07

1. CANADA'S CONTRIBUTION

1.1. Canada's maximum contribution to the programs shall be nine million four hundred ninety-one thousand dollars ($9,491,000).

Transfers from the provinces and territories shall be nine hundred forty-four thousand nine hundred eighty dollars ($944,980), subject to prior agreement between the Canada and the Corporation.

The total amount of Canada's contribution for 2006-07 (April 1, 2006 to March 31, 2007) is ten million four hundred thirty-five thousand nine hundred eighty dollars ($10,435,980). The Corporation acknowledges that the period between April 1 and July 31, 2006, was covered within the final payment of the Corporation's fiscal year completed on July 31, 2006, and that the portion of the final payment for the period of April 1 to July 31, 2006, is considered the first payment of the 2006-07 fiscal year.

The amount of Canada's contribution for the period from August 1, 2006, to March 31, 2007 is therefore eight million three hundred ninety six thousand seven hundred ninety two dollars ($8,396,792). The difference of two million thirty nine thousand one hundred eighty eight dollars ($2,039,188) between the budgeted revenue and expenses is due to the change in the Odyssey and Accent fiscal year.

2. APPROVED BUDGET

2.1 The Corporation agrees to apply the contribution to the following eligible expenses:

2.1.1 Salaries

For the period of September 1, 2006, to March 31, 2007, a maximum amount of $4,160 shall be paid to employers for the salaries of each Accent language assistant (part-time). For the period of September 1, 2006, to March 31, 2007, a maximum amount of $17,800 shall be paid to employers for the salaries of each Odyssey language assistant (full-time).

2.1.2 Transportation

A budget of $486,030 shall be used for an allowance to compensate for part of the travel cost of one return trip for each Accent language assistant (part-time) and two return trips for each Odyssey language assistant (full-time) between the language assistant's province or territory of permanent residence and the province or territory in which the language assistant is working, where the language assistant's permanent residence is located more than 200 km from his or her workplace.

A budget of $34,522 for exceptional cases to compensate for the commuting costs of some Accent language assistants (part-time).

2.1.3 Training

A maximum amount of $368,010 to reimburse expenses incurred for training of language assistants.

2.1.4 Administration

A maximum amount of $515,518 to reimburse the Corporation for expenses it incurs for administration of the Programs (including coordinators' meetings, development of working documents, etc.).

2.1.5 Promotion and Development

A maximum amount of $460,000 to reimburse expenses for promotion ($260,000) and development of the following project: database ($200,000).

2.1.6 Goods and Services Tax (GST) Refund

An approximate amount of $70,000 from the GST refund is deducted because that amount is included in categories of eligible expenses 2.1.1 to 2.1.5.

2.2 Expenses other than those provided for in paragraphs 2.1.1 to 2.1.5 of Schedule 3 of this Agreement that are incurred by the provincial and territorial governments and their departments and agencies to implement the Programs are not the responsibility of the Corporation, and the Corporation may not claim reimbursement from Canada for such expenses as expenses under this Agreement. Such expenses nevertheless contribute to the effective operation of the Programs.