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Notes to Financial Statements

Year ended December 31, 2009

(Tabular amounts in Thousands of Dollars)

7. Allocation of expenses:

Salaries, benefits, travel and administration expenses have been allocated as follows:

NextGen SD Tech Biofuelds

Fund Fund 2009 2008

Governance $ 414 $ 86 $ 500 $ 327 Mandatory reporting 833 33 866 820 Project screening and evaluation 1,662 345 2,007 1,505 Project contracting and monitoring 847 130 977 723 Infrastructure development and

outreach 844 33 877 580 General and administration 434 88 522 412

$ 5,034 $ 715 $ 5,749 $ 4,367

8. Capital management:

The Foundation defines capital as its deferred contributions related to expenses of future periods.

The Foundation’s objectives in managing capital are to safeguard its ability to continue as a going concern and pursue its strategy of promoting sustainable development technology and next-generation renewable biofuels to eligible projects that meet the mandate and criteria of its funder, the Government of Canada, and benefits to other stakeholders. Management continually monitors the impact of changes in economic conditions on its investment portfolio and its funding commitments.

The Foundation is not subject to any externally imposed capital requirements and its overall strategy with respect to capital remains unchanged from the year ended December 31, 2008.

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