(in thousands of dollars)

Financing has been advanced to companies which were controlled or otherwise not independent of certain directors of Nova Scotia Business Inc. These investments totaled $37,058 (2007 - $39,023) and certain of these investments have specific allowances recorded against them totaling $6,211 (2007 - $5,515). Furthermore, payroll rebates in the amount of $4,515 (2007 - $4,515) were awarded to one or more of these companies.

These transactions were carried out in the normal course of operations and on terms and conditions that would be similar to those of non-related parties.

The Corporation occupies premises for which no rental fee is charged by the shareholder. Management estimates the annual cost to lease the premises is approximately $661 (2007 - $627).