Growing Forward. Growing Canadian Agri-Innovations Program. Developing Innovative Agri-Products Initiative. Proposal Guide

Growing Forward Growing Canadian Agri-Innovations Program Developing Innovative Agri-Products Initiative Proposal Guide

Her Majesty the Queen in Right of Canada, 2009 Cat. No. A22-488/2009E-PDF ISBN 978-1-100-12535-0 AAFC No.10919E Aussi offert en français sous le titre : Initiative de développement de produits agricoles innovateurs : Guide de présentation de projets.

Table of Contents 1. Developing Innovative Agri-Products Initiative... 3 1.1 Background... 3 1.2 Initiative Objective... 4 1.3 Expected Results of the Initiative... 4 1.4 Maximum Support... 4 1.5 Initiative Duration... 5 1.6 Submission of Proposals... 5 2. Stream A: Innovation Strategy Development... 6 2.1 Innovation Strategy Development Description... 6 2.2 Eligible applicants... 6 2.3 Proposal Requirements for Innovation Strategy Development... 6 2.3.1 Organization Name, Address and Description... 6 2.3.2 Project Leader... 7 2.3.3 Project Title... 7 2.3.4 Summary of the Proposal for Public Release... 7 2.3.5 Keywords... 7 2.3.6 Strategy... 7 2.3.7 Description of the Innovation Strategy Development Opportunity... 7 2.3.8 Project Risk Assessment... 8 2.3.9 Project Participants... 8 2.3.10 Workplan to Achieve Development Needs... 8 2.3.11 Future Development... 8 2.3.12 Letters of Acknowledgement... 9 2.3.13 Funding Sources and Requirements... 9 2.3.14 Budget... 9 2.3.15 Capacity to deliver the project... 10 3. Stream B: Implementation of Applied Science, Technology Development and Pilot Projects... 10 3.1 Implementation of Applied Science, Technology Development and Pilot Projects Description... 10 3.2 Eligible applicants... 11 3.3 Proposal Requirements for the Implementation of Applied Science, Technology Development and Pilot Projects... 11 3.3.1 Organization Name, Address and Description... 11 3.3.2 Project Leader... 11 3.3.3 Project Title... 11 3.3.4 Summary of the Proposal for Public Release... 12 3.3.5 Keywords... 12 3.3.6 Link to Innovation and Competitiveness... 12 3.3.7 Description of the New Product, Process, Practice or Technology... 12 3.3.8 Project Risk Assessment... 13 3.3.9 Project Participants... 13 3.3.10 Workplan to Achieve Development Needs... 14 3.3.11 Future Development... 14 Developing Innovative Agri-Products Proposal Guide Page 1 of 26

3.3.12 Short Biographies... 14 3.3.13 Letters of Acknowledgement... 14 3.3.14 Funding Sources and Requirements... 15 3.3.15 Budget... 15 3.3.16 Capacity to deliver the project... 16 4. Use of Funds and Operating Requirements... 16 4.1 Reporting Requirements... 16 4.2 Eligible Costs... 16 4.3 Intellectual Property... 17 4.4 Unpaid Debt... 17 5. General... 18 5.1 Security of Information... 18 5.2 Use of (In-house or External) Lobbyist... 18 5.3 M-30 Law (for Quebec organizations only)... 18 5.4 Environmental Assessment... 19 6. Submission Procedures and Checklist... 19 6.1 Submission Procedures... 19 6.2 Proposal Checklist... 20 7. Contact information... 20 Annex A - Declarations... 21 Annex B - Workplan Template... 23 Annex C - Selection Criteria... 24 Developing Innovative Agri-Products Proposal Guide Page 2 of 26

Growing Canadian Agri-Innovations Program DEVELOPING INNOVATIVE AGRI-PRODUCTS INITIATIVE Proposal Guide 1. Developing Innovative Agri-Products Initiative 1.1 Background The Developing Innovative Agri-Products (DIAP) initiative will help accelerate the precommercial development of new agri-products, processes and practices that require access to, and an understanding of, the application of science and technology. Developing Innovative Agri-Products will support industry-led projects and foster the enhancement and development of value chains by producers, processors, distributors, researchers and others to help bring to life new knowledge, new products and new market opportunities. Developing Innovative Agri-Products will address this by providing funding for two types of projects: Stream A: Innovation Strategy Development - to support collaboration and planning by stakeholders to create and expand agricultural, agri-food and agri-based opportunities to develop new innovative opportunities (see section 2 of this document); and Stream B: Implementation of Applied Science, Technology Development and Pilot Projects to transform innovative ideas into new agri-products, practices and processes by helping the private sector access applied science research and development resources (see section 3 of this document). There are three ways that proposals can receive funding under the Developing Innovative Agri-Products Initiative: 1. A proposal can be submitted under Stream A: the Innovation Strategy Development for a maximum contribution of $2 million in funding; or 2. A proposal can be submitted under Stream B: the Implementation of Applied Science, Technology Development and Pilot Projects for a maximum of $4 million in funding; or 3. An application can be submitted under both streams, the Innovation Strategy and Implementation of Applied Science, Technology Development and Pilot Projects Streams for a maximum of $4 million in funding. Developing Innovative Agri-Products Proposal Guide Page 3 of 26

1.2 Initiative Objective Proposals must demonstrate how they fulfill the Developing Innovative Agri-Products objectives: to encourage collaboration and value chain development that is national in scope and leading to new market opportunities for agricultural practices, processes and products; and/or to address specific issues or opportunities through access to government, university and other applied science and research resources required for product, process or practice development along value chains. The aim is to help pull new innovative agri-products, processes and practices through the development, technology feasibility and engineering prototype stages of the innovation continuum. 1.3 Expected Results of the Initiative The initiative will encourage the agricultural, agri-food and agri-based sector to develop new or expand existing value chains and to provide access to Canadian scientific and technical support to resolve pre-commercialization issues relating to agri-products, practices and processes development. 1.4 Maximum Support Applicants must determine and communicate clearly their required funding under this initiative. It should be targeted at 25% to 75% of eligible costs, up to the $2 million or $4 million maximum, depending on the Stream selected. Permitted stacking - which is the total amount of federal, provincial/territorial and municipal government funding - should be targeted at 75% of the total eligible project costs. The balance of the eligible costs must be met through a cash contribution from non-government organizations. Applicants in-kind contributions should not be used to cover part of the eligible costs of a project. The proportion of federal support requested will be reviewed during the approval process; the level of risk and the impact on the primary sector in the proposed project will be factors in assessing the appropriateness of the funding requested by the applicants. Under Stream A, not-for-profit agricultural, agri-food and agri-based product organizations may apply for up to $2M in contribution funding to facilitate Innovation Strategy Development including consultations, market research, business planning, communications, administration and coordination services. Developing Innovative Agri-Products Proposal Guide Page 4 of 26

Under Stream B, for profit and not-for-profit agricultural, agri-food and agri-based product organizations may apply for up to $4M in funding per eligible project (less any amount of contribution funding provided to the applicant for the project under Stream A) to implement applied science, technology development and piloting projects directly resulting in greater opportunities for, or competitiveness of the primary and value-added agriculture, agri-food and agri-based product sector in Canada. If the applicant believes the best resource for research and development work for the project is within AAFC, should AAFC agree to participate in the project, AAFC will negotiate a Collaborative Research and Development Agreement (CRADA) with the Applicant. Although the costs associated with AAFC s CRADA activities will be paid out of AAFC s operating resources, the amount will be deducted from the $4 million of maximum funding under this initiative as it includes not only contribution funding from AAFC but the value of any operational resources provided by AAFC. Applicants must respect their selected funding ratio (ranging between 25% and 75%). As such, part of their financial cash contribution must go towards CRADA activities. Annex C outlines the selection criterion used to assess individual proposals within their specific selected stream. 1.5 Initiative Duration All project activities must be completed by March 31, 2013. This includes invoices, auditing and reporting activities. It is strongly suggested that research and development activities be completed by January 31, 2013. 1.6 Submission of Proposals Developing Innovative Agri-Products will use an open system where proposals can be submitted for review at any point until the Initiative has fully allocated all available support, including funding, to accepted projects. Applications are considered as soon as they are received and found to be complete. Proposals will be reviewed by AAFC. However, AAFC may seek external expertise if it does not have the necessary expertise to properly evaluate the proposal. Applications will be reviewed to ensure that the objectives and selection criteria (see Annex C) are adequately addressed. Decisions reached during the review process will be final. Applicants may submit more than one proposal if projects are independent of each other. A public report may be made available containing the proposal summary for each applicant approved for funding. Applicants will receive a written notification from the Developing Innovative Agri- Products Office, acknowledging receipt of the proposal. Subsequently, a letter will be sent indicating AAFC s final decision pursuant to its review process. Successful applicants will be required to enter into a Contribution and/or Collaborative Research and Development Agreement. Developing Innovative Agri-Products Proposal Guide Page 5 of 26

Selected projects will be required to report on results, including those mentioned above in section 1.3. 2. Stream A: Innovation Strategy Development 2.1 Innovation Strategy Development Description The Innovation Strategy Development stream will provide non-repayable contribution funding of up to $2 million for activities which facilitate national value chain development including: key stakeholder value chain consultations; investigations of market opportunities; business planning and development; workshops; communications; and project management, administration and coordination services. Examples of types of activities considered for funding: activities that develop new or expand existing agricultural value chains; activities developing and exploring new agricultural, agri-food and agri-based product and/or process innovation opportunities; 2.2 Eligible applicants Eligible applicants include: Canadian not-for-profit agricultural, agri-food and agri-based organizations involved in developing national agricultural value chains, agri-practices, products and processes; Note: Successful applicants must be legal entities and capable of entering into legally binding agreements. 2.3 Proposal Requirements for Innovation Strategy Development The proposal must be developed in collaboration with all relevant stakeholders. It must include all sub-sections listed in this section 2.3. It is strongly recommended that you include a one-page executive summary and that you follow the structure indicated in 2.3 to organize and present your proposal for ease of evaluation. A proposal under Developing Innovative Agri-Products must be signed by the applicant at the President / CEO or equivalent level and will require the following: 2.3.1 Organization Name, Address and Description Identify the legal entity, including its legal status and operating name, date of organization formation, type of business structure, address and phone number, and GST/HST number. Please attach a copy of the articles or certificate of incorporation. Developing Innovative Agri-Products Proposal Guide Page 6 of 26

2.3.2 Project Leader Indicate the name, mailing address, telephone and fax numbers, and, e-mail address for the proposed project leader within the applicant s organization. The proposal must identify a single leader. 2.3.3 Project Title Indicate the name of the project as it will be used for publication and communication purposes, including any short forms or acronyms. 2.3.4 Summary of the Proposal for Public Release Provide up to a one-page non-confidential summary describing the project, its proposed activities, and expected impact on the industry and Canada. Write for a general audience using plain language, as the summary may be used for communication purposes if the project is approved. Note: At AAFC s expense, AAFC will have the Summary of the Proposal for Public Release translated into the other Official Language, in order to meet all bilingualism requirements. It is understood that by submitting the Summary of the Proposal for Public Release, the applicant authorizes its translation and its reproduction and publication by AAFC. 2.3.5 Keywords List up to 10 keywords related to the proposal. This may be used to aid review committee members if they wish to conduct additional research relating to the proposal during the review. 2.3.6 Strategy Applicants are requested to submit proposals that will develop and expand on the strategies of their sector and industry s shared needs over the next five to ten years; the major challenges and barriers to that strategy; and how the proposed activities will address these challenges and barriers to enhance their innovativeness and competitiveness; how the sector strategies will contribute to accelerating the pace of innovation. 2.3.7 Description of the Innovation Strategy Development Opportunity Provide a clear description of the opportunities and benefits resulting from creating and developing the national value chain such as: the identification and development of new national strategic and innovative opportunities that combine knowledge and applied science to transform existing and new commodities to address newly identified market opportunities; the identification of products derived from primary agricultural products which move producers/rural communities up the value chain and increase their share of agri-sector income; Developing Innovative Agri-Products Proposal Guide Page 7 of 26

Describe any pre-commercialization challenges along the value chain that must be addressed by the project. Resulting benefits to the sector, industry and Canada must be fully described for a project proposal to be considered complete. 2.3.8 Project Risk Assessment Identifies the foreseeable potential risks that could affect or endanger the completion of the project, including for each risk: an explanation of the risk and its likelihood; possible impacts on the project; measures that will be put in place to mitigate the risk. Potential risks may include financial risk, project technical risk, commercial risk, freedom to operate, etc. 2.3.9 Project Participants Who are the organization s personnel that will participate in the project? Identify project leader and location and role in the project; if more than one organization is involved, please identify affiliation and location. Other project participants (if applicable): Identify other contributors to the value chain development and their role in the proposed project. 2.3.10 Workplan to Achieve Development Needs Develop a clear and narrative description of the following: activities, sub-activities and by whom; deliverables; comment clearly on how the proposal s results/deliverables will provide solutions to those development opportunities outlined in section 2.3.7; activity s objectives; timelines with key milestones; performance indicators; Note: Please consult Annex B for an example of a Workplan template and email this address infoagriproducts@agr.gc.ca to obtain an electronic copy of the template for completion. 2.3.11 Future Development In addition to the development work covered by this Proposal, outline those activities or elements that would remain (if any) before benefits could be realized by the sector and by Canada and plans for addressing these gaps. Developing Innovative Agri-Products Proposal Guide Page 8 of 26

2.3.12 Letters of Acknowledgement Provide letters from each sector organization identified in section 2.3.9 confirming the work plan commitments from section 2.3.10 and budget commitments from section 2.3.15 should the project be selected. The letter must make explicit reference to the proposed project, and should: come from a senior executive, authorized to sign the letter on behalf of the organization; commit their financial support in cash for the proposed activities if the project is approved (if applicable); identify individuals within the organization who will be involved in the project and indicate their role in the project; indicate how the proposed project would help their organization; and indicate current and past associations with the applicant. 2.3.13 Funding Sources and Requirements Applicants will be required to disclose all sources of funding from other federal, provincial or municipal governments, or any other source, before funding is provided. 2.3.14 Budget Each applicant must submit their budget on the Developing Innovative Agri- Products Budget Excel Spreadsheet. Please email this address infoagriproducts@agr.gc.ca to obtain an electronic copy to complete. The budget must clearly identify the organization s financial contributions in cash. Applicants in-kind contributions should not be used to cover part of the eligible costs of a project and therefore should not be reflected on the budget. The Initiative funding will be provided only for incremental eligible expenditures directly related to the project. Provide detailed costing for each project activity listed in the workplan (2.3.10 and Annex B) by expenditure cost and identify incremental project management and administration costs as a separate activity in the budget. Consult section 4.2 for a complete list of eligible expenditures. If you are applying to both Stream A and Stream B, it is important to separate budget items and clearly indicate their appropriate Stream. Reports and public documents developed as part of a project must be available in both official languages; translation costs are an eligible expense and should be itemized in your proposed budget. Incremental expenditures mean the additional costs incurred by the Recipient which are directly related to undertaking eligible activities under this Initiative. Developing Innovative Agri-Products Proposal Guide Page 9 of 26

Please note that while budget formats will be simplified for the purposes of Contribution Agreement administration when recipients submit their expense reports, the reporting templates will require additional detail to ensure that their costs are eligible. 2.3.15 Capacity to deliver the project Applicants must clearly demonstrate their track record and the capacity of all participants identified under 2.3.9 of this Guide to lead and deliver the proposed project. If applicable, applicants must disclose any funding (program name and amount) received from AAFC over the last 5 years. Applicants must include a copy of last year s audited financial statements for the organization, however if the applicant does not have audited financial statements, the submission of its most recent annual balance sheet, income statement and statement of cash flow will suffice. 3. Stream B: Implementation of Applied Science, Technology Development and Pilot Projects 3.1 Implementation of Applied Science, Technology Development and Pilot Projects Description The Implementation of Applied Science, Technology Development and Pilot Projects stream will provide non-repayable contribution funding and/or AAFC collaborative research support of up to $4 million to foster collaboration between the private sector, AAFC and/or academic labs to access applied scientific research and development expertise and resources necessary for the acceleration of new products, practices and process development leading to the successful transformation of their innovative ideas and prototypes into new technologies. The maximum funding includes funds provided to the applicant under a Contribution Agreement and any operating funding that may be committed to the project through Collaborative Research and Development Agreements with AAFC, should AAFC scientific expertise be required to complete a portion of the project. Contribution funding may be used to engage applied research, technology development and piloting activities with Canadian universities and colleges, and other private research and development organizations. Contribution funding may not be used for activities with Canadian Federal Departments and Agencies. If the applicant has also requested or received funding under Stream A: Innovation Strategy Development, the $4 million maximum funding available under this stream will be reduced by the amount received under Innovation Strategy Development. Developing Innovative Agri-Products Proposal Guide Page 10 of 26

Examples of types of projects considered for funding: projects that provide scientific and technical research support relating to product, practice or process development; technology development and projects for piloting, testing and demonstration; and pre-commercialization and development projects involving agricultural products, processes and practices advancing projects towards the development and commercialization of intellectual property. 3.2 Eligible applicants Canadian for profit and not-for-profit organizations involved in the agriculture, agri-food and agri-based products sector are eligible to apply. Note: Organizations must be legal entities and capable of entering into legally binding agreements. 3.3 Proposal Requirements for the Implementation of Applied Science, Technology Development and Pilot Projects The proposal must be developed in collaboration with all research participants. It must include all sub-sections listed in 3.3. It is strongly recommended that you include a onepage executive summary and that you follow the structure indicated in 3.3 to organize and present your proposal for ease of evaluation. A proposal under the Developing Innovative Agri-Products initiative must be signed off by the applicant at the President / CEO or equivalent level and will require the following: 3.3.1 Organization Name, Address and Description Include the legal operating name and: legal entity status and date of organization formation; primary product line(s) and sales region (regional, national or international); Address, phone number and GST/HST numbers Please attach a copy of the articles or certificate of incorporation. 3.3.2 Project Leader Indicate the name, mailing address, telephone and fax numbers, and e-mail address for the proposed project leader within the applicant s organization. The proposal must identify a single leader. 3.3.3 Project Title Indicate the name of the project as it will be used for publication and communication purposes, including any short forms or acronyms. If the proposal is requesting funding under both streams and the information is the same, there is no need to duplicate the information as long as it was captured already in the Innovation Strategy Development proposal requirements. Developing Innovative Agri-Products Proposal Guide Page 11 of 26

3.3.4 Summary of the Proposal for Public Release Provide up to a one-page non-confidential executive summary describing the project, its proposed activities, and expected impact on the industry and Canada. Write for a general audience using plain language, as the summary may be used for communication purposes if the project is approved. Note: At AAFC s expense, AAFC will have the Summary of the Proposal for Public Release translated into the other Official Language, in order to meet all bilingualism requirements. 3.3.5 Keywords List up to 10 keywords related to the proposal. This may be used to aid review committee members if they wish to conduct additional research relating to the proposal during the review. 3.3.6 Link to Innovation and Competitiveness Applicants are requested to submit proposals that describe links to the innovative and competitive needs of their industry and sector over the next five to ten years; the major research and development and commercialization challenges and barriers; and how the proposed project will address them to enhance their innovativeness and competitiveness; how this project will contribute to accelerating the pace of innovation; and how this project is innovative and different from current and previous research performed by the organization or sector. 3.3.7 Description of the New Product, Process, Practice or Technology (narrative; emphasize novelty and market opportunity) A description of the product, process or practice to be developed, covering: uniqueness; what it is replacing or improving; target consumer or industry group and anticipated size of market; brief description of development to date, and by whom (e.g. resources committed, collaborators, technology providers, intellectual property arrangements); reference to any Market Feasibility or Technical reports; anticipated time to market introduction or adoption, with associated rationale (e.g. considerations such as required capital, further research and development needed, the availability of materials, the readiness of suppliers, the need for advertising, promotion or demonstration; If the proposal is requesting funding under both streams and the information is the same, there is no need to duplicate the information as long as it was captured already in the Innovation Strategy Development proposal requirements. Developing Innovative Agri-Products Proposal Guide Page 12 of 26

intellectual property protection and licensing requirements and strategies; and economic benefit to the industry, sector and Canada. All resulting benefits (such as intellectual property) must be fully described for a project proposal to be considered complete. Describe any gaps on the pre-commercialization continuum that must be filled by the project in order to prepare this novel product, process or technology for the market. (by major activity) Identify the disciplines, special equipment, research experience, etc. required for successful completion of the project. 3.3.8 Project Risk Assessment Identifies the foreseeable potential risks that could affect or endanger the completion of the project, including: an explanation of the risk and its likelihood; possible impacts on the project; measures that will be put in place to mitigate the risks. Potential risks may include financial risk, project technical risk, commercial risk, freedom to operate, etc. 3.3.9 Project Participants Applicant organization s principal investigator to participate in the project: Identify principal investigator and location and role in the project; if more than one organization is involved, please identify affiliation and location. AAFC scientific and technical team to collaborate on the project (if applicable): Identify research team members, their location and role in the project. Other scientific and technical service providers to participate in the project (if applicable): Identify any universities, colleges, contractors or other contributors to the project and their role in the project. If the proposal is requesting funding under both streams and the information is the same, there is no need to duplicate the information as long as it was captured already in the Innovation Strategy Development proposal requirements. Developing Innovative Agri-Products Proposal Guide Page 13 of 26

3.3.10 Workplan to Achieve Development Needs Develop a clear and narrative description of the following: deliverables; comment clearly on how the proposal s results/deliverables will provide solutions to those development requirements outlined in paragraph 3.3.7; activity s objectives; detail activities and sub-activities (sufficient to ensure internal review for scientific activities) to be undertaken and by whom; timelines with key milestones; performance indicators. All resulting benefits (such as intellectual property) must be fully described for a project proposal to be considered complete. Note: Please consult Annex B for an example of a Workplan template and email this address infoagriproducts@agr.gc.ca to obtain an electronic copy of the template for completion. 3.3.11 Future Development In addition to the development work covered by this Proposal, outline those activities or elements that would remain (if any) before benefits could be realized by the sector and Canada and plans for addressing these gaps. 3.3.12 Short Biographies Provide biographies for each principal investigator identified in section 3.3.9 (including the proposed project leader). Each biography should not to exceed two pages in length. 3.3.13 Letters of Acknowledgement Provide letters from each organization identified in section 3.3.9 confirming the workplan commitments from section 3.3.10 and budget commitments from section 3.3.15 should the project be selected. The letter must make explicit reference to the proposed project, and should: come from a senior executive, authorized to sign on behalf of the organization; commit their financial support in cash for the proposed activities conditional to project being selected. In-kind contribution may be used to strengthen the sustainability of the proposal (if applicable); identify individuals within the organization who would be involved in the project; indicate how the proposed project would help their organization; and indicate current and past associations with the applicant. If the proposal is requesting funding under both streams and the information is the same, there is no need to duplicate the information as long as it was captured already in the Innovation Strategy Development proposal requirements. Developing Innovative Agri-Products Proposal Guide Page 14 of 26

Letters of support from AAFC would solely confirm that the scientific and technical capacity was available to conduct the work should the project be approved and would not infer an acceptance of the proposal. 3.3.14 Funding Sources and Requirements Applicants will be required to disclose all sources of relevant funding, including payments from other federal, provincial or municipal programs, or any other source, before funding is provided. 3.3.15 Budget Each applicant must submit their budget on the Developing Innovative Agri- Products Budget Excel Spreadsheet. Please e-mail this address infoagriproducts@agr.gc.ca to obtain an electronic copy to complete. The budget must clearly identify each participant s financial contributions in cash. Applicants in-kind contributions should not be used to cover part of the eligible costs of a project and therefore should not be reflected on the budget. The Initiative funding will be provided only for incremental eligible expenditures directly related to the project. Provide detailed costing for each main project activity (3.3.10 and Annex B) by expenditure cost and identify incremental project management and administration costs as a separate activity in the budget. Consult section 4.2 for a complete list of eligible expenditures. If you are applying to both Stream A and Stream B, it is important to separate budget items and clearly indicate their appropriate Stream. Reports and public documents developed as part of a project must be available in both official languages; translation costs are an eligible expense and should be itemized in your proposed budget. Please note that while budget formats will be simplified for the purposes of Contribution Agreement administration when recipients submit their expense reports, the reporting templates will require additional detail to ensure that their costs are eligible. Incremental expenditures mean the additional costs incurred by the Recipient which are directly related to undertaking eligible activities under this Initiative. Developing Innovative Agri-Products Proposal Guide Page 15 of 26

3.3.16 Capacity to deliver the project Applicants must clearly demonstrate their track record and the capacity of all participants to lead and deliver the proposed project. If applicable, applicants must disclose any funding (program name and amount) received from AAFC over the last 5 years. Applicants must include an copy of last year s audited financial statements for the organization, however if the applicant does not have audited financial statements, the submission of its most recent annual balance sheet, income statement and statement of cash flow will suffice. 4. Use of Funds and Operating Requirements 4.1 Reporting Requirements Successful applicants will provide financial and performance reporting on their activities in the form of periodic updates and status reports as required under the terms and conditions of their contribution agreement with AAFC. These reports will need to include non-confidential activity summaries written for a general audience using plain language that may be used for communication purposes. 4.2 Eligible Costs Eligible costs are expenditures relating to the execution or implementation of eligible projects incurred by eligible recipients, which include: cost of goods and services and all related shipping and transportation costs; incremental cost of services, such as salaries and benefits, specific per diem fees, or actual project or program disbursements; incremental costs for rental or lease of facilities equipment or machinery; at the discretion of and with prior approval in writing by the Minister the purchase of capital items such as computers, office/laboratory equipment and furnishings, but excluding land, buildings and vehicles if they are specifically required for the execution and performance of the project. Such expenditure shall not exceed 25% of the total contribution funding provided for the project under DIAP. hospitality and travel costs within Treasury Board guidelines (See http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=12190 for the Hospitality Policy and http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/tbm_113/td-dv_e.asp for the Travel Directive); production of materials required to fulfill obligations under the agreement, including translation and production of materials in the second official language; If the proposal is requesting funding under both streams and the information is the same, there is no need to duplicate the information as long as it was captured already in the Innovation Strategy Development proposal requirements. Developing Innovative Agri-Products Proposal Guide Page 16 of 26

overhead costs when it can be clearly demonstrated they constitute incremental costs that cannot be absorbed by the recipients (to be considered on a case-by-case basis); and other costs directly related to the project, at the discretion of the Minister. Ineligible Expenses: capital items not specifically required for the execution of the initiative; refundable portion of the Goods and Services Tax, value-added taxes, or other items for which a refund or rebate is received; hospitality and travel expenditures beyond stated federal authorities or gifts associated with the hosting of events; costs related government departments and agencies such as registration fees in and outside Canada; and any other expenditure not specifically listed as eligible or otherwise approved to be eligible. 4.3 Intellectual Property In order to facilitate future use and potential commercialization of the new intellectual property, of any intellectual property subsequently developed using that intellectual property, or of the new intellectual property as bundled with necessary background intellectual property, applicants must agree that they will avoid joint or divided ownership of new intellectual property or of the bundled intellectual property rights that arise from the funded or otherwise supported project. If this is not feasible, then applicants will be required to provide a workable alternative that assures accountability and responsibility for the effective utilization of new intellectual property. AAFC may include a provision in the contribution agreement that a non-exclusive and royalty-free license is granted to Canada to enable it to use the intellectual property for research and development, and/or for publication purposes. 4.4 Unpaid Debt It is a requirement of the Treasury Board Policy on Transfer Payments that recipients of funds declare any amount owing to the federal government under legislation or contribution agreements. The applicant must indicate whether it has any outstanding debts with the Government of Canada? If so please indicate the name of the program and the amount of unpaid debt with a description of the situation. Developing Innovative Agri-Products Proposal Guide Page 17 of 26

5. General 5.1 Security of Information Agriculture and Agri-Food Canada will not disclose any commercially confidential information unless: authorized by the applicant; Authorized by law to be released; or required by the Minister of Agriculture and Agri-Food Canada to be released to an international or internal trade panel for purposes of the conduct of a dispute in which Canada is a party or a third party intervener. All documentation submitted through this proposal process is subject to the provisions of the Access to Information Act. Information on the Act is available at the following website: http://laws.justice.gc.ca/en/showtdm/cs/a-1. Any information that is to be considered as commercially confidential should be annotated accordingly. 5.2 Use of (In-house or External) Lobbyist Under the Lobbying Act, a lobbyist includes any person(s) who receives payment (or any other consideration) for communicating with a public officer holder on behalf of any person, corporation, or organization, pertaining to the provision of a contribution. Agriculture and Agri-Food Canada must be advised if the applicant engages a lobbyist to represent the applicant s interest in relation to its request for support under this Initiative. As well, the lobbyist must be registered and in compliance with the Lobbying Act (http://www.ocl-cal.gc.ca/epic/site/lobbyist-lobbyiste1.nsf/en/home), and cannot be paid a commission, contingency fee or any other consideration that is dependent upon the execution of an agreement with the Minister of Agriculture and Agri-Food. The making of or receipt of any such payment or other consideration to a lobbyist may give rise to breach of Section 121 of the Criminal Code. Information on the Lobbyist Registration Act is available at the following website: http://www.ocl-cal.gc.ca/eic/site/lobbyist-lobbyiste1.nsf/intro 5.3 M-30 Law (for Quebec organizations only) Successful proposals from an applicant located in the Province of Québec, will be required to complete and sign the Declaration of Exemption to M-30 Form prior to the negotiation of the Contribution Agreement and provide a copy of the Exemption (if required) to the Developing Innovative Agri-Products Office. A copy of financial statements may also be required. Developing Innovative Agri-Products Proposal Guide Page 18 of 26

5.4 Environmental Assessment If it is determined that an environmental assessment is required to determine the environmental effects of the activities contemplated under this proposal the Applicant shall carry out this assessment as early as practicable in the planning stages of those activities. This assessment shall be conducted in accordance with the Canadian Environmental Assessment Act and shall be subject to the approval of the Minister of Agriculture and Agri-Food. 6. Submission Procedures and Checklist 6.1 Submission Procedures Applicants are encouraged to submit their proposals as soon as possible to ensure maximum time to carry out their activities. Proposals are handled on a first come first serve basis until all funding is exhausted. All projects activities must be completed by March 31, 2013. This includes invoices, auditing and reporting activities. It is strongly suggested that Research activities should be completed by January 31, 2013. The proposal must be mailed or couriered to this address: Developing Innovative Agri-Products Initiative Agriculture & Agri-Food Canada Tower 5-5th Floor, room 151 1341 Baseline Road Ottawa, ON, K1A 0C5 and contain: A CD containing: the complete Proposal as a single PDF file containing all signed material, including proposal, declaration and scanned letters of support in order. Please ensure the copy and paste functions are enabled. Please also send the excel Budget and Work plan spreadsheets separately, not as part of the pdf file. In addition, an applicant may wish to submit a complete bounded paper copy with original signature. Tables, graphs and figures may be included (where applicable). Developing Innovative Agri-Products Proposal Guide Page 19 of 26

6.2 Proposal Checklist Have all required documents been enclosed? The following documents must be included: All sub-sections of 2.3 and/or 3.3 completed, depending on the stream selected; Articles or Certificate of incorporation, as applicable; Signed Declarations (Annex A ); CD containing the complete Proposal as a single PDF file containing all signed material, including proposal, declaration and scanned letters of support in order. Please ensure the copy and paste functions are enabled. Please also send the excel Budget and Work plan spreadsheets separately, not as part of the pdf file. In addition, an applicant may wish to submit a complete bounded paper copy with original signature. Tables, graphs and figures may be included (where applicable). 7. Contact information Developing Innovative Agri-Products Office Details about Developing Innovative Agri-Products, including a full range of Frequently Asked Questions can be obtained at http://www.agr.gc.ca/agri-innovations For further information please contact the Developing Innovative Agri-Products Office at: Telephone: 1-866-857-2287 E-mail: infoagriproducts@agr.gc.ca Developing Innovative Agri-Products Proposal Guide Page 20 of 26

Annex A - Declarations The Applicant acknowledges that he/she/it has read and understood the objectives, principles and criteria of the Developing Innovative Agri-Products Initiative (see documentation at http://www.agr.gc.ca/agriinnovations) and that the Applicant understands and agrees to the following: 1. The Applicant acknowledges that the submission of this Proposal does not oblige Agriculture and Agri- Food Canada (AAFC) to approve the application or provide funding or other support for the project proposed therein, nor any other funding. 2. The Applicant acknowledges that discussions with AAFC officials regarding their project do not constitute a funding commitment. 3. The Applicant acknowledges that he/she/it has obtained a copy of the program Guidelines and has read and understands their contents. 4. In the event this Proposal is accepted by AAFC, the Applicant agrees that any expenses incurred in respect of this Proposal before the effective date of a signed Contribution Agreement are not eligible for reimbursement by AAFC, unless AAFC authorizes such payment in writing. Acceptance of the proposal by AAFC is not an authority to incur costs before a Contribution Agreement is signed, and does not creat an obligation on AAFC s part to pay any costs incurred before the Contribution Agreement is signed. 5. The Applicant acknowledges and understands that the purpose of the Proposal is to submit his/her/its proposed project for funding or other support under the Developing Innovative Agri-Products (DIAP) Initiative. The Proposal will be evaluated by AAFC to determine the potential eligibility for funding or other support, under the DIAP Initiative, using the criteria outlined in Annex C of the Full Proposal Guide. 6. The Applicant also consents to the disclosure of this information to other federal government departments or agencies, or other levels of government such as provincial or territorial governments, for purposes of the verification of sources of funding or other support for the project described in the Proposal. The Applicant consents to the disclosure by other federal departments or agencies, or other levels of government of information relating to funding or other support or potential funding or other support of a project of the Applicant by any department, agency or government for purposes of their verification of sources of funding or support for such project. 7. The GST/HST Number is collected under the authority of the Excise Tax Act for the purposes of reporting income. 8. The Applicant declares that he/she/it is in full compliance with all of his/her/its current obligations, financial and otherwise, towards the Government of Canada and with all municipal, provincial and federal environmental requirements. 9. The Applicant has not, nor has any person on his/her/its behalf: a) offered, promised or provided to any official, employee or any other person representing Her Majesty the Queen in Right of Canada, any bribe, gift or other inducement for or with a view to obtaining contribution funding or other support, or b) employed or retained any person in respect of obtaining a contribution or other support for a commission, contingency fee or any other consideration dependant upon the execution of an agreement with the Government of Canada. 10. The Applicant declares that all employees, officers and contractors and contractor-employees of (name of applicant) who have been involved in the preparation of the project proposal or whom (name of applicant) intends to assign to work on the proposed project, are either not former employees of the federal Government, or are in compliance with the provisions of the Value and Ethics Code for the Public Service or the Conflict of Interest and Post-Employment Code for Public Office Holders. Developing Innovative Agri-Products Proposal Guide Page 21 of 26

11. The Applicant declares that with respect to the proposed project forming the subject of this Proposal, any person who is required to be registered pursuant to the Lobbying Act, including consultant and inhouse lobbyists, is registered pursuant to and is in compliance with that Act. Should AAFC become aware that such a person has not registered pursuant to the Act, the Applicant's file will immediately be closed. 12. The Applicant declares that he/she/it has obtained consent to provide information about other individuals or entities identified in the Proposal, and has been authorized by those individuals or entities to provide that information. As well, the Applicant agrees that where the Applicant has provided information about other individuals or entities, if they request to see the information submitted about them by the Applicant, AAFC will give them access to that information. 13. The Applicant agrees that the person(s) the Applicant identified on this form as the contact person(s) may receive information relating to the Proposal from AAFC. 14. The Applicant agrees to obtain appropriate certification of ethics review for each science activity involving animals, human subjects, biohazards, or radioactive materials. Since project funding and support fall under AAFC s legislative mandate, science activities must adhere to the Tri-Council Policy Statement Ethical Conduct for Research Involving Humans located at http://www.pre.ethics.gc.ca/english/policystatement/policystatement.cfm http://www.pre.ethics.gc.ca/fran cais/policystatement/policystatement.cfm For further details, applicants should consult the Science Ethics Policy Framework of Agriculture and Agri-Food Canada (AAFC). 15. The Applicant acknowledges having submitted a Summary of (its) Proposal for Public Release as part of the Applicant s application under the DIAP Initiative. The Appliant hereby grants Canada a royaltyfree, non-exclusive and perpetual permission to translate the said Summary and to reproduce and publish it my any means and on any medium whatsoever. 16. In the event that the Applicant is an entity other than an individual, the signatory below hereby represents and declares he/she is duly authorized to act on the Applicant s behalf and to sign the Declaration and bind the Applicant in its regard. 17. The information provided in this Application is to the Applicant s best knowledge and belief, after making due enquiries, accurate and complete. 18. The Applicant acknowledges and understands that the information contained in this proposal is being collected for the purposes of assessing and reviewing the proposal s eligibility to receive funding or other support under the Initiative and that any information submitted as part of the proposal may be disclosed to the extent necessary for assessment and review of the proposal, including peer review, verification of the information submitted, project/cluster review, statistical purposes and performance reporting. Any personal, financial, commercial, scientific or technical information provided in this Application will be treated in accordance with the federal Access to Information Act and Privacy Act. Any personal information submitted as part of the proposal will be held in the Growing Canadian Agri-Innovations Program Personal Information Bank AAFC/PPU 628 and may be disclosed in accordance with the Privacy and Access to Information Acts and in accordance with the consents provided herein. Under the Privacy Act and Access to Information Act, information relating to any discretionary benefit of a financial nature conferred on an individual, including the name of the individual and the exact nature of the benefit, may be disclosed to the public. You may at any time request a review, update or correction of the information held by AAFC about you. Any questions, comments or concerns regarding your privacy may be directed to the Access to Information and Privacy Directorate Coordinator at (613) 733-1388. Signature of Organization President/CEO Date Developing Innovative Agri-Products Proposal Guide Page 22 of 26