3. The credit is eligible for a three year carry-back (if net deductible in the year earned) and ten year carry-fonvard.

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1 T2038 (CORP) (E) Flev. 95 INVESTMENT TAX CREDIT - CORPORATIONS (for taxation years starting after 1993) Note: Use T2038 (Corp)(E) Rev. 93 if your taxation year begins before 1994.) GENERAL INFORMATION 1. Use this for for a corporation that, during a taxation year: (a) eaed an investent tax credit ( the credit ); (b) is claiing a deduction against their Pari l tax payable; (c) is claiing a refund of credit eaed during the curent taxation year; (d) is claiing a carry-foward of credit fro preceding taxation years; (e) is transferring a credit following an aelgaation or wind-up of a subsidiaty, as described under subsections 87(i) and 88(l) of the Incoe Tax Act; (f) is requesting a credit carry-back. 2. References to parts, sections, and subsections on this for are fro the Incoe Tax Act and Regulations. References to Interpretation Bulletins and Inforation Circulars are to the latest version. 3. The credit is eligible for a three year carry-back (if net deductible in the year earned) and ten year carry-fonvard. 4. Investents or expenditures, as defined in subsection 127(g) and Part XLVI of the Incoe Tax Regulations, that earn the investent tax credit are: Qualified property Certified property Qualified expenditures in respect of scientific research and experiental developent (%&ED) * * Coplete and file For T661, Clat for Scientific Research and Experiental Developent Expenditures Carried on in Canada. 5. File a copleted copy of this for with the corporation%+ T2 Corporation Incoe Tax Retu. 6. For ore inforation on investent ta credits see the section called lnvestent Tax Credit For T2036(CORP) in the T2 Corporation Incoe Tax Guide, Inforation Circular IC 78-4 Investent Tax Credit Rates, and related Special R&ase. Also, Interpretation Bulletin IT-151, Scientific Research and Experiental Developent Expenditures. 7. For inforation on!%&ed, see Interpretation Bulletin IT-i 51, Scientiffc Research and Experfental Developent Expenditures, Inforation Circula IC 86-4, Scientiftc Research and Experiental Developent, T4052, Scientific Research and Experiental Developent - An Inforation Guide to the Tax Incentive Progra, and T4088, CMing Scientific Research and Experiental Developent Expenditures (guide to For T661). DETAILED INFORMATION 1. For the purpose of this for, investent eans: The capital cost of the property (excluding aounts added by an election under section 21) deterined without reference to subsections 13(7.1) and 13(7.4), inus the aount of any goveent assistance or non-goveent assistance that the corporation has received, is entitled to receive or cari reasonably be expected to receive for that property at the tie of filing the incoe tax return for the year in which the investent was ade. 2. An investent ta credit deducted or refunded in a taxation year for a depreciable property reduces the capital cost of that properly in the next taxation year. It also reduces the undepreciated capital cost of that clâss in the next taxation year. A credit deducted or refunded Will also reduce the balance in the SR&EO pool, the adjusted cost base (ACB) of an interest in a partnership and the ACB of a capital interest in a trust in the next taxation year. 3. SR&ED expenditures that are used to clair a refund of Part VIII tax are net eligible for an investent tax credit. 4. Property acquired has to be available for use to be eligible for an investent tax credit. 5. Qualified expenditures ust be identified by the claiant on fors T661 and T2038 at or before the tie the claiant s incoe tax return is due for the taxation year following that in which the expenditures were incurred. 6. For taxation years starting after 1993, a corporation cari clai the full aount of its investent tax credit against federal Part I tax that the corporation would otherwise bave to pay. For prier years, there is an annual liit. Page 1 of 6 Ce forulaire existe aussi en français.

2 ELIGIBLE INVESTMENTS FROM THE CURRENT TAXATION YEAR (PROPERTY FROM CODES 3A, 12 AND 14) List your investents below and record the totals for each code in the corresponding areas for each code in Part 1. section 4 on page 3 CCA Glass Location used (province, u Nuber counly or township) Aount of investent age 6 of 6 Printed in Canada

3 Investents or expenctitures, percentages and codes Specified 3ualified property acquired priarily to use in: percentage a) Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick or the Gaspé Peninsula..<<<<<<,...< 15%* b) a prescribed offshore region <<... 15%* Code c) for property described in a) or b) above acquired after o%* 14 Certifiedproperty... 30%* 3A 3ualified expenditures for scientific research and experiental developent (SR&ED) incurred by: a) A corporation that is a Canadian-controlled private corporation (CCPC) throughout the current taxation year; Taxable incoe for the preceding taxation year Plus: the taxable incoes of all associated corporations** (for taxation years ending in the sae calendar year as the corporation?. precedingtaxationyear)... Specified percentage Code Total (1) Business liit of the preceding taxation year (as deterined under section 125) Plus: Business liit of all the associated corporations for those preceding taxation years Total...<. (2) If aount fro line (2) ultiplied by 2 is greater than the aount froline(l),thencodellbayapplytoyou 35% IIB If aount fro line (2) is equal to or greater than the aount fro line (l), you are a qualifying corporation. If the cuvent year s qualified expenditures are ore than the corporation s expenditure liit, (see page 3, section 2) the excess is eligible for an investent tax credit calculated at the 20% or 30% rate, whichever applies. b) A CCPC that does not qualify for a) above and a corporation other than a CCPC for SR&ED carried out in: (i) Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick or the Gaspé Peninsula (before 1995) 30% * 3B (ii) any other area in Canada and after 1994 Will include (i) above 20% 46 artnership Allocations - Subsection 127(8) provides for the allocation of the aount that ay reasonably be considered to be a x#tner s share of the investent tax credits (the credits ) of the partnership at the end of the fiscal period of the partnership. An Wxation of credits is generally considered to be the partner s reasonable share of the credits if it is ade in the sae proportion in nhich the pariners bave aqreed to share any incoe or loss and if section 103 of the Act is not applicable for the agreeent to share ~ny inco~ or loss. See If-151 for ore deiails. * For qualified property acquired after 1994, Bill C-59, which received Royal Assent on March 26, 1995, reduces the rate fro 15% to 10%. This Bill also discontinues the 30% rate for certified property, and reduces the rate for qualified expenditures for SR&ED to be carried out in the Atlantic Provinces or Gaspé Peninsula fro 30% to 20%. For certain exceptions to these rate changes, see Bill C-59, under subsection 127(g), specified percentage and certified property, and the TZ Corporation Incoe Tax Guide. * Corporations that were associated with the CCPC in the current taxation year. Page 2 of 6

4 ART 3: CALCULATION OF CURRENT YEAR CREDIT AND ACCOUNT BALANCES nvestenf tax credif at end of preceding taxation year Ieduct: Credit expired after 10 years nvestent tax credit at beginning of taxation year E 446: Tofalcurrentyearcreditfroline452inPant Credit transferred upon aalgaation or wind-up of subsidiav (Note: Certain restrictions apply to aalgaation and wind-up investent tax credits. See IT-151 for deiails.) Subtotal Deduct: Credit deducted fro Part 1 tax (enter on line 221 of your TZ retu) l Credit carried back to the previous year(s) (sec Part 4 below). Credit deeed as a reittance of CO-op corporations only Credit transferred to offset Part VII tax liability E Subtotal Credit balance b&re r&.d Deduct: Refund of credit claied (aount Y or HH fro page 4) Investent tax C&i, &sing balance ART 4: REQUEST FOR CARRYBACK OF CREDIT, Coplete thi?. area to request a carry-back of investent tax credit earned in the current year., You cari apply a credif eaed in the taxation year against Par? I tax payable in any of the three preceding taxation years., You cari carry back the credit only if the credit was net deductible in the year in which the corporation earned it., You c apply refunds arising fro the credit carry-back adjustents to aounts owing for this or any other taxation year. I hereby request a carry-back of the credit the corporation earned in fhe current taxation year. to be applied as follows: 3rd preceding taxation year 19-2nd preceding taxation year 19 _ 1st wcediw taxation year 19- Total Il Refund Code enter one of the following: 1 Refund overpayent 2 Transfer overpayent 10 a Mer year s instalent account 3. Apply fo 0th~ liability (attach instructions) Page 5 of 6

5 Revenue Revenu Canada Canada INVESTMENT TAX CREDIT - CORPORATIONS (for taxation years starting after 1993) Nae Of corporation ACCO t n bedb siness ber Tauatio year-end Day MO W Year PART 1: Enter taxable incoe(s) fro line (1) on page 2. A Section 1 GUALIFIED EXPENDITURES FOR SR&ED ~urrentexpenditures...,...,. S :apitalexpenditures... C ~epayentsadeintheyear..,..,,..,..,..,..,...,...,..,...,...,..,...,..,..,...,,..,,..,... D rota1 (this us, equal the aount fro lin&! 296 on for T661). Section 2 CALCULATION OF SR&ED EXPENDITURE LIMIT FOR CCP& THROUGHOUT THE CURRENT TAXATION YEAR $4,000,000 Y.x$: the greater of line A above and $200,000 b x10 SR & ED expenditure lii, (if negative, enter 0) :If the corporafion s taxation year is shorter than 61 weeks. you bave to prorate the expenditure liit by the nuber of days in the taxation year Wided by 365)..ess: if you are associated with one or ore corporations. the aount of the expenditure lii, allocated to associated corporations as provided for on for T2013, Agreeenf Aong Associafed Corporations ~oursr&edexpenditureliit E Section 3 CALCULATION OF INVESTMENT TAX CREDITS ON SR&ED Vote: For corporations that are net CPPCs throughoul the year, enter nil on lines F & I below. The laser of: curren, expenditures (line S above) and line E above X36% F -ine B - line E = (if negative, enter 0) X %* G!f aount fro line E is greater than line S, enter the difference a, line H. The lesser of: capital expenditures (@ne C above) and aoun, H above d x 35%, -ine C - Line H =.I (if negative. enter 0) x 20% K Repayents (aount D above) [If a corporation akes a repayent of any goveen, assistance. non ~overnen, assistance or contrac, payents that reduced the aoun, of x 35% qualified expenditures for invesfent tax credit purposes, the aount of the x 30% repayent is eligible for a credi, at the rate that would bave been applicable to x 20% Ihe expenditure.) Total FL To,alcurren,yearSR&EDInves,entTaxCredits(totaloflinesF,G,I,KandL) Note: For SR&ED expenditures carried OU, in Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick or Gaspe Peninsula (before 1995), you should use 30% instead of 20%. Section 4 CALCULATION OF TOTAL CURRENT YEAR INVESTMENT TAX to Part 6 on page 6) Qualified Property (Code 12)x15%= M Qualified Property (Code 14)x lo%= N &flifiedprop&y (Code 3A) x 30% = 0 Subtota, PIus: Aount fro line 476 above Tota,... E Partnership Allocations (See page 2 for de,&) P Total curent year Investent Tax Credits (total of lines 473, M, N, 0 and P). Page 3 Of 6

6 PART 2: CALCULATION OF REFUND OF INVESTMENT TAX CREDITS FOR QUALIFYING CORPORATIONS Coplete this box only if you are a qualifying corporation as deterined on page 2. Credit balance before refund fro Part 3 on page 5 Q Current year investent tax credits (fro line 452 on page 3). R Refundabfe Credits (lesserof 0 and R above) S * AountFfrosection3onpage3 T Less: Lesser of aounts Sand T U Net aoun, (if negative. enter nil) V Aounf V X40% w Add:Ao ntu <<<... X Refund of investent tax credit (Ao~nt W + X, enter this or a lesser aant page5)...,... on fine 146 of your T2 Retu and in Par, 3 on Y If you are an excluded corporation (as defined in subsection 127.1(2)), this aount should be ultiplied by 40%. Clai this or a lesser aount as your Refund of Investenf tax credit a, line Y. CALCULATION OF REFUND OF INVESTMENT TAX CREDITS FOR CCP& THAT ARE NOT QUALIFYING CORPORATIONS Coplete this box only if you are a CCPC tnat is net a qualifying corporation as deterined on page 2. Credit balance before refund f Part 3 on page 5... AA AountFfrosection3onpage3... SS Less: Lesser of aounts AA and SS above... cc Netao nt... DD AountIfrosection3onpage3... EE Lesser of aounts DD and EE x40%.....f F Add:Ao n,cc~b~ e..,,,,,,,,,...,...,,,... GG l Refund of Investenf tax credit (Aount FF+ GG, enter this or a fesser aount on line 146 of your T2 Retu and in Par, 3 I onpage5) hh Page 4 of 6

INVESTMENT TAX CREDIT - CORPORATIONS (for taxation years starting after 1995)

Revenue Canada Revenu Canada INVESTMENT TAX CREDIT - CORPORATIONS (for taxation years starting after 1995) Note: Use T2038 (CORP)(E) Rev. 93 if your taxation year begins before 1994. Use Rev.95 if your