NOTES  TO CONSOLIDATED FINANCIAL STATEMENTS 4. LICENSES During the year ended December 31, 2012, the Company has entered into a new license agreement for a new technology to increase the concentration of avenanthramides in oats. The Company paid a fee of $44,439 to cover previous patent costs and will amortize the license over 15 years commencing in April 2012. Amortization of $2,222 has been included in general and administration for the year ended December 31, 2012 (2011 – $nil) (see note 19(d)). During the year ended December 31, 2011, the Company entered into a new licensing agreement with the University of Guelph for an exclusive variety of a mint plant. This agreement replaced the agreement the Company entered during the year ended December 31, 2008. The Company paid a licensing fee of $30,000 in 2008 and $15,000 in 2011 and will amortize the total license over 10 years, being the term of the amended licensing agreement. Amortization of $4,500 has been included in general and administration for the year ended December 31, 2012 (2011 – $3,000) (see note 19(c)). 40 CEAPRO Annual Report 2012 Cost of Licenses $ Balance – December 31, 2010 30,000 Additions 15,000 Balance – December 31, 2011 45,000 Additions 44,439 Balance – December 31, 2012 89,439 Accumulated amortization Balance – December 31, 2010 6,000 Amortization 3,000 Balance – December 31, 2011 9,000 Amortization 6,722 Balance – December 31, 2012 15,722 Net book value Balance – December 31, 2012 73,717 Balance – December 31, 2011 36,000