CONTINGENCY PROPOSAL

This proposal is submitted to KPT Precision Inc. for compiling Projects for SR&ED and IRAP. For
fiscal years ending. All technical documentation, engineering technical reports and supporting
documentation to be provided.

The scope of this proposal will be two fold.

1. SR&ED

 Identifying and preparing R&D projects including necessary project descriptions for
SR&ED and ITC activities.
 Identifying and documenting expenditures that qualify as SR&ED expenditures and
those that qualify for an ITC claim.
 Identify personnel and prepare schedules on academic background, experience and
SR&ED activities performed.
 Prepare a detailed SR&ED cost schedule
 Prepare a claim for SR&ED and ITC and applicable Ontario SR&ED forms as required by
Canada Revenue Agency (CRA).

2. IRAP

 Preparing proposal including project description, cost schedules, preliminary risk

assessment for IRAP project grant of estimated $ 50, 000.
 Preparing of project overview and business rationale.
 Documenting detailed scope of project with emphasis on technical approach
undertaken.
 Submitting Preliminary Proposal as per IRAP guidelines and attending review meetings
with ITA, if required.
 Submitting pre project approval documentation.

Fees:

Commission of 15% based on amount of funding received. No payments required until receipt
of funds.
Miscellaneous Notes:

Given the company specific business details that are provided I agree to sign Non-Disclosure
Agreements to protect the business interests of KPT Precision Inc.

Supporting documentation must be made available to support the development of required

reports.

I look forward to the opportunity to work with you and trust this will be a mutually beneficial.