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Notes to Financial Statements

Year ended December 31, 2009

(Tabular amounts in Thousands of Dollars)

9. Commitments:

SD Tech Fund

During the year, the Foundation awarded grants for a maximum amount of $114 million (2008 - $105 million). Total disbursements to eligible recipients during the fiscal year were $46 million (2008 - $41 million). Since incorporation, the Foundation has awarded grants for a maximum of $463 million of which $172 million has been disbursed as of the end of the fiscal year. The balance of the awarded grants will be recorded as expense in subsequent years as funds are disbursed.

The Foundation has executed contracts for eligible projects through 2012 in the amount of $308 million, which are anticipated for disbursement over that period as recipients meet their pre-funding performance requirements. The Foundation also has commitments to lease office space as follows: 2010 - $821,000; 2011 - $811,000; 2012 - $759,000; 2013 - $759,000; 2014 - $759,000; and thereafter - $379,000.

NextGen Biofuels Fund:

The Foundation did not make funding allocations to eligible recipients during the year.

10. Fair value of financial instruments:

The fair values of cash and cash equivalents, goods and services tax refund receivable, other receivables and accounts payable and accrued liabilities approximate their carrying values due to the relatively short period to maturity.

Senior Management and Directors’ compensation*

In accordance with the Funding Agreement, SDTC Senior Management and Directors’ compensation for the fiscal year ending December 31, 2009, including salary, allowances and other benefits was within the annual compensation ranges listed below.

Positions Total Additional performance annual compensation based compensation President & CEO $ 250,000 - $ 340,000 $ 0 - $ 60,000 Senior Vice President & COO $ 200,000 - $ 245,000 $ 0 - $ 40,000 Senior Vice President $ 170,000 - $ 215,000 $ 0 - $ 25,000 Vice Presidents $ 150,000 - $ 190,000 $ 0 - $ 15,000 Directors & Senior Professionals $ 100,000 - $ 145,000 $ 0 - $ 12,500 Chairman of the Board $ 12,000 stipend** Vice Chair of the Board $ 9,000 stipend** Directors of the Board $ 5,000 stipend**

* Note: This information is not part of the audited statements.

** All Directors of the Board received a meeting fee of $550 per meeting day. The Directors of the Board who sit on the Investment and Project Review Committees received a meeting fee of $1,500 per meeting day.

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