precom invest proposal-06!04!09

8/6/2019 PreCom Invest Proposal-06!04!09

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GlobalEvaluator Opportunity Form - Self-evaluation V2.0 August 16, 2006

AVAC Ltd. Pre-Commercial Investment Proposal

To submit an investment proposal, you will need to complete all sheets in this Excel workbook.

Expected Outcome and the assocaited Timing for that objective.

Under the "Estimates Cost of Objectives:, provide cost estimates for each Objective as defined in the Proposed Use ofProceeds sheets (s).

Definitions

are key to the project's success.

equipment or services provided at no charge

Please be as concise as possible in your responses.

This Pre-Commercail Investment Proposal is to be completed by individuals and companies wishing to be formally considered forAVAC investment. Please visit AVAC's website http://avacltd.com for more information. Please note that AVAC does not invest forcapital (except initial market launch), inventory, buildings or equipment (except prototypes).

1) Opportunity Information Provide a breif summary of your company and the investment opportunity

2) Self Assessment

Provide an assessment of the investment opportunity by choosing, from the available options, the response that best ryour project

Supplement this with a brief description for each criterion.

3) Proposed Use of Proceeds

Provide a breakdown of the investment opportunity activities, by detailing a number of Objectives, associated Activites,

Use both "Proposed Use of Proceeds - Part 1" and the "Proposed Use of Proceeds - Part 2" sheets if appropriate

4) Cost of Objectives

5) Supporting Information Under "Summary Financial Projections:, provide a view of the anticipated key financial metrics.

Provide additional supporting information as required, or detail other documents provided as supporting information.

Project the specific initiative that will be supported by this Proposal

Senior Management the key people involved in the project, including executives and other employees across all functions t

Product/process and/or service the outcome of the Project, that is to be offered to the market.

Proposal this Proposal for Investement Proposal document

In-kind Investment: a contribution to this Proposal not involving a cash contribution, such as time with no compensation, and

AVAC will not disclose the information that you provide in or with the Investment Proposal form that would be deemed to be ConfideInformation in a typical Confidentiality Agreement, except to those employees or associates who need to know the information for thpurpose of evaluating the application. AVAC will use its best efforts to ensure that these individuals will retain the information in confiThe applicant agrees with the above confidentiality provisions in submitting this Investment Proposal.

AVAC is committed to the privacy principles set out in the Alberta Personal Information Privacy Act (PIPA), and adheres to the PIPArelating to collecting, using and disclosing Personal Information. A copy of AVACs Privacy Policy may be obtained at:

http://www.avacltd.com/Downloads/Policies/AVAC_SHORT_FORM_POLIC_v1_.pdf
http://www.avacltd.com/Downloads/Policies/AVAC_SHORT_FORM_POLIC_v1_.pdfhttp://www.avacltd.com/Downloads/Policies/AVAC_SHORT_FORM_POLIC_v1_.pdf


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GlobalEvaluatorTMOpportunity Form - Opportunity Information 2008-03-18

AVAC- Pre-commercial Investment

Opportunity No. (Office use only)

Instructions to Proponent

> Please complete each of the fields below these instructions and do not change any of the information above.

e-mail your completed form to: [email protected]

Proponent Information:Salutation: First Name: Last Name:

Name:

Position:

Company/Organization:

Department:

Mailing Address:

City: Province: Postal Code:

Telephone: Fax:

E-mail:

Opportunity Title:

Opportunity Summary:(max. 100 words)

Opportunity Description:

ProGridOpportunity Information

> To complete this Proposal you will need to complete the sheets in this Excel workbook.These sheets are password protected to allow you to tab between the cells that need to be completed. The "Opportunity Description" field is a text

box; to complete this, insert your cursor and type the description information. You may want to check your spelling as the MS "Spell-Check" featuredoes not work on password protected sheets.

> All the boxes in this form, except for the "Opportunity Description"text box are spreadsheet cells - thus, if you want to insert a carriage return,use "Alt/Enter". If only "Enter" is pressed, the cursor will move to the next cell.

> In the "Opportunity Description"text box a carriage return will work and you do not need to use "Alt/Enter".

Thank you for using this time saving format.

Describe your proposedopportunity in 750 words orless. Do not change thefont or font size. This textbox will accept about 750words.

Using only the space provided below, describe the proposed opportunity (proposal), addressing the followingcharacteristics:> The critical technology or technologies that form the foundation including the present stage of development of thetechnology.> Your team"s current capability, capacity and collaboration with others in the industry.> Potential applications of the technology you will be developing.> Market opportunity or demand and potential of existing competition using the same or different technology toaddress the same problem or application.

> One or two lines that describe any new facilities that may be required.


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GlobalEvaluatorTMOpportunity Form - Opportunity Information 2008-03-18

Project Duration: 0

Budget Information$$ Requested

Year 1 Year 2 Year 3 Year 4 Year 5

Objective 1 $0

Objective 2 $0

Objective 3 $0

Objective 4 $0

Objective 5 $0

Objective 6 $0

Objective 7 $0Objective 8 $0

Objective 9 $0

Objective 10 $0

$0 $0 $0 $0 $0

Total Project $$: $0

Total $$ requested from AVAC:

To complete your Opportunity, continue to the Self-assessment sheet

Date Project Start (mm/dd/yyyy):


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GlobalEvaluatorTM Opportunity Form - Self-assessment 2008-03-18

AVAC- Pre-commercial Investment

When completing your Self-assessment please keep the following in mind:

> An A score does not mean automatic rejection and a D score does not mean automatic acceptance.

> This form allows you to tab between cells that need to be filled.

> You may want to check your spelling as the MS "Spell-Check" feature does not work with this form.

A1 Stage of Development

Recognizing that commercial success is usually achieved through a sequence of stages, please indicate the statement below that best represents your Proposal:

A The concept behind the commercial opportunity has had a limited level of testing.

B Key elements of the concept behind the commercial opportunity have been confirmed but an integrated system, model or prototype has not yet been developed.

C An integrated system, model or prototype has been developed and tested under limited controlled conditions.D An integrated system, model or prototype has been developed and successfully tested under a full range of commercially relevant conditions.

Rating Explain and justify your rating for this criterion

A2 External Validation

A ... has not been evaluated by any external organization.

B ... has been evaluated by an external organization who have found the underlying concepts to be sound. Only limited physical validation has been carried out.

C ... has been evaluated by external organizations who have confirmed key attributes under representative conditions.

D


A3 Market Channels

Select the statement that best represents the market channels for the product/processes/serviceA A product/processes/servicedistribution and sales plan has not been developed.

B A preliminary product/processes/service distribution and sales plan has been developed that includes the type of distributors and sales outlets.

C

D

ProGridSelf-assessment

> For each criterion, select one of the four statements (A to D) that you feel best describes your proposal and record your rating in the shaded box belowthe Language Ladder statement set. Use only the letters (A, B, C or D).

> If all the aspects of a statement are not fully met, select the statement immediately preceding it, e.g. if all the characteristics of a D statement have notbeen met, then select the C statement.

>You should add a short (~200 word, 1300 characters max.) justification on your rating for each criterion in the shaded box to the right of theletter rating box.

> The justification boxes are spreadsheet cells; thus, if you want to insert a carriage return use "Alt/Enter". If only "Enter" is pressed,the cursor will move out of the comment cell.

Recognizing that confirmation of key attributes and performance measures, as described in your project outline, by external bodies will enhance the attractiveness of thecommercial opportunity, please indicate the statement below that best represents your Proposal - The product/process/service behind the commercial opportunity ...

... has been well tested by external organizations under a range of commercially relevant conditions. These organizations have fully confirmed all keyattributes and performance measures.

A detailed product/processes/service distribution and sales plan is in place and has been approved by key stakeholders. Distributors have been identified andcontacted.

Product/processes/service distribution and sales material has been prepared for a sales and marketing team. The distribution network and sales outlets are inplace and committed.


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B1 Senior Management Team

A

B

C

D


B2 Business Plan

Recognizing that quality in business planning is essential to successful commercialization, please indicate the statement below that best represents your Proposal:

A Only limited consideration has yet been given to a prospective commercialization strategy for the products/processes/services.

B A prospective commercialization strategy for the products/processes/services has been developed that identifies prospective markets and potential partners.

C

D


B3 Regulatory Environment

A Regulatory issues will be a critical part of the development of the products/processes/services and may prevent successful market introduction.

B

C

Recognizing that the experience and capabilities of your Senior Management Team will be cri tical to future success, please indicate the statement below that bestrepresents your management team - The Senior Management Team ...

... has limited experience in the areas required for this commercial opportunity and a significant number of new personnel and skills will be required to ensurefuture commercial success.

... has some experience in the areas that are important for this commercial opportunity and has the potential to contribute to the successful implementation ofthe endeavor. A number of key additional personnel and/or skills will be required.

... has considerable experience in the areas important for this commercial opportunity and their involvement and commitment will be crucial for commercialsuccess. A few additional personnel and/or skills will likely be required.

... has a credible and well-recognized track record of success in areas related to this commercial opportunity and is fully committed to the project. No major

additional skills will be required.

A business plan has been developed that identifies the key factors to be addressed in commercializing the products/processes/services (including rawmaterials, markets, volumes, margins, channels to the market and competitive position).

A business plan has been developed that identifies the key factors to be addressed in commercializing the products/processes/services (including rawmaterials, markets, volumes, margins, channels to the market and competitive position). The plan contains clear goals with milestones that identify allnecessary resources. Partners and investors have approved and are committed to the business plan.

Recognizing that the ability to meet or exceed existing or potential new regulatory requirements will be critical issues to address, please indicate the statement belowthat best represents your Proposal:

Regulatory issues will be a critical part of the development of the products/processes/services and may affect the timing of commercialization, but are unlikelyto prevent it if properly built into the development plan.

Regulatory issues will not impede the commercialization of the products/processes/services and if they become important factors, may actually assist bypromoting early commercialization.


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D


B4 Intellectual Property

Select the statement that best represents the status for protecting the technology on which the product/processes/service is based:

A Intellectual property protection for the technology is not expected to be feasible or warranted has not yet been considered.

B Steps have been taken to protect the technology through appropriate documentation and confidentiality provisions.

C

D


C1 Commercial Opportunity

Recognizing that capabilities and ideas should lead to commercial growth, please indicate the statement that best represents your products, processes and/or services ...

A ... however it is too early to define their commercial potential.

B ... that are expected to enjoy high market growth (>10% per annum).

C

D


C2 Market Acceptance

A ... there is no evidence at this time of customer acceptance.B ... preliminary market studies indicate positive customer acceptance.

C ... specific customers have been identified who have indicated their intention to place orders.

D ... current or new customers have provided firm orders.


The products/processes/services will be seen as pacesetters and will set the standard in meeting critical current or expected future regulatory requirementsestablished by authorities in the relevant market areas.

A strong intellectual property position is expected which will provide a competitive advantage at least through the initial stages of commercialization.Applications have been submitted to the appropriate regulatory offices and/or steps have been taken to protect trade secrets.

The technology is well protected and this protection will provide a competitive advantage with no foreseeable challenges. The technology contains a significantamount of know-how and further work will greatly enhance its future protectability.

... that are expected to enjoy high market growth (>10% per annum) and expect to open up new growing markets where Alberta can achieve a strongcompetitive position.

... that are expected to enjoy high market growth (>10% per annum) and expect to open up new growing markets where Alberta can achieve a strongcompetitive position and for which commercialization partners have been identified.

Recognizing that market receptivity will be a key factor in determining commercial success, please indicate the statement below that best represents your Proposal -With respect to the products/processes/services that are involved in this commercial opportunity:


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C3 Competitive Situation

A ... will be up against major competition from well-established organizations that have products/processes/services competing for the same market.

B ... will be able to establish a small "beach-head" market position but will likely have to fight it out with significant competitors to achieve further growth.

C

D ... will face only limited or weak competition in the foreseeable future.


C4 Market Scope

Select the statement that best describes the market scope for the product/processes/service...

A ...the size and extent of the market to be served by the product/processes/service has not yet been adequately definedB

C ...the market to be served by the product/processes/service is expected to be large without any significant geographic limitations

D


C5 Reviewer Overall Opinion

My overall opinion of the opportunity is:

A I don't really like the opportunity - DO NOT PROCEED

B The opportunity is not that enticing - BE CAUTIOUS

C There may be something to the opportunity - proceed CAREFULLY to the next stage.

D Very exciting opportunity - PROCEED to the next stage.


Recognizing that current or potential new competitors could adversely affect commercial success, please indicate the statement below that best represents yourProposal - The product/process/services...

... will have a "window of opportunity" to achieve a viable market position before the competition catches up with equivalent or superiorproducts/processes/services.

...the market to be served by the product/processes/service will initially be focused on a relatively narrow market sector/region but if successful, can beextended to other sectors/regions with minimum customization.

...it has been demonstrated that the market to be served by the product/processes/service is large with many potentially diverse applications building on theunderlying product/service platform


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AVAC - Pre-Commercial Investment ProposalProposed Use of Proceeds - Description of Objectives

> Please describe the major objectives, associated activities, expected outcomes, and the timing the activity is to take place.

> If additional space is required please use next worksheet..

Objective (Describe) Activity Timing (start/finish)

1.

2.

3.

4.

5.

6.

7.

> The justification boxes are spreadsheet cells; thus, if you want to insert a carriage return use "Alt/Enter". If only "Enter" is pressed, the cursor will move outof the comment cell.

Expected Outcome (Measurable andObjective)


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AVAC - Pre-Commercial Investment ProposalProposed Use of Proceeds - Description of Objectives- Part 2

> Please describe the major objectives, associated activities, expected outcomes, and the timing the activity is to take place.

Objective (Describe) Activity Timing (start/finish)

8.

9.

10.

11.

12.

13.

14.

> The justification boxes are spreadsheet cells; thus, if you want to insert a carriage return use "Alt/Enter". If only "Enter" is pressed, the cursor will move outof the comment cell.

Expected Outcome (Measurable andObjective)


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AVAC - Pre-Commercial Investment ProposalProposed Use of Proceeds (continued)

Estimated Cost of Objectives ($)> Use the objectives outlined on the previous page.

> If additional space is required please add additional worksheets.

Objective Internal Salaries Prototype Equipment Other (specify) Other (specify) Total

1. -

2. -

3. -

4. -

5. -

6. -

7. -

8 -

9 -

10 -

11 -

12 -13 -

14 -

Total - - - - - -

Sources of Investment> The Total Cost of Objectives for the above project must match the Total Sources of Investment below.

> Internal salaries are included as part of the in-kind contribution to the project.

> Contribution to date should only include expenditures directly relating to the project being considered under this Proposal.

> AVAC will not provide more than 50% of the total project cost.

> If additional space is required please use add additional rows.

Sources of Investment Indicate Source $ Amount %

Future In-kind contribution to project -

Future direct contribution to project -AVAC Ltd. -

Public Funds (e.g. IRAP, CARDF, PEMD, AARI, ASRA, etc.) -

Loans (indicate source) -

Equity Investments (indicate source) -

Other (indicate source) -

Other (indicate source) -

Total - 0%

-

Sources of Investment

Previous Investment $ Amount

Applicant in-kind contribution to date

Applicant financial contribution to date

Total -

Consultants & otherservices


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Gl b lE l t O t it F S lf l ti V2 0 A t 16 2006

AVAC - Pre-Commercial Investment ProposalSupporting Information (if available)

Existing Projected Year 1 Projected Year 2 Projected Year 3 Projected in 2010

Total Sales ($)

Gross Profit from operations ($)

Pre-tax Profit ($)

Total Assets ($)

Total Liabilities ($)

Capital Expenditures ($)

Product Exported (%)

Please identify any other information that will assist AVAC evaluate the merits of this Proposal.

Please send a one page biography for each applicant and any co-applicants.

Email this to [email protected]

precom invest proposal-06!04!09

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