Third Call for Participation in the

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1 Third Call for Participation in the CzechAccelerator Project (Close of registration acceptance prolongs to 8 May 2012) The CzechAccelerator project is being implemented within the Consulting Programme Priority Axis 6, Services for Business Development, which is part of the Operational Programme Enterprise and Innovation (OPEI) for the period The project builds on the successful pilot phase, which took place from April 2010 to March 2011 in Silicon Valley in the United States. The objective of the project is to support innovative Czech firms in developed foreign markets through the provision of consulting services focused primarily on the development of management experience and enhancement of marketing skills. Part of the provision of consulting services consists in support within the process of obtaining financing in the form of venture capital and from business angels, easy access to potential strategic partners and top advisors, and participation in networking events and seminars with investors. Interested parties can register for a stay in the following destinations: East or West Coast of the United States, Singapore, Israel or Switzerland. Registrants should indicate their preference in the registration form and, at the same time, state the time period in which they would like to participate in the project in the selected destination. Individual destinations are focused primarily on: USA West Coast ICT, life sciences and nanotechnology USA East Coast biotechnology, life sciences, medical technology and clean technologies Singapore ICT, biotechnology and life sciences Israel ICT, biotechnology, life sciences and clean technologies Switzerland biotechnology, life sciences, clean technologies and precision engineering Page 1 of 8

2 Participation timeframe or One stay with duration of 3-6 months in the period from 1 July 2012 to 31 December In the application form, the applicant shall specify the time period of the stay, i.e. indicate the date of entry (between 1 July 2012 and 30 September 2012) and the anticipated date of termination of the stay (no later than 31 December 2012) Two stays within six months during the period from 1 July 2012 to 31 December The applicant shall specify in the registration form a total of two periods of stay, of which neither period may shorter than 1 month. There must be an interval of at least one month between the individual stays. The total combined duration of both stays must be at least four months. The time periods for participation set forth in the registration form are not binding for CzechInvest. Upon agreement with the project participant, CzechInvest can change the date of start and termination of the stay in the destination, or shorten the overall period of the stay. In the case of an identical evaluation, CzechInvest will give preference to the participant which selected a longer period of stay in the destination. The CzechAccelerator project allows repeated participation. Participants which have already participated in the project can re-register upon fulfilling all conditions. However, former participants cannot register for a stay in a destination where they have already participated in the project. Conditions of participation The applicant must be a business entity natural person or legal entity conducting business with its registered office or operations in the Czech Republic and fulfilling the definition of a small or medium-sized enterprise as set forth in Annex I of Commission Regulation (EC) No. 800/2008. The applicant must be the owner of a clearly defined, existing (or developed) technological product (tangible product or service), which is at least 51% in the applicant s ownership. The applicant must have its own management and product-development teams which operate in the Czech Republic at least 51% of the time. Page 2 of 8

3 The applicant must fulfil the following conditions: - It must have a high degree of potential for successful commercialisation of the product. - It must have strong interest in and motivation for penetrating international markets. - It must have strong future growth potential. - It must be focused on development of new and innovative technological solutions. The applicant also must fulfil the following criteria: - The applicant must be authorised to conduct business in the Czech Republic corresponding to the supported economic activity for the realisation of which the project is to be implemented. - According to the applicant s affidavit, such applicant must be registered as an income-tax payer with the Tax Office pursuant to Section 125(1) of Act No. 280/2009 Coll., the Tax Code, as amended. - According to the applicant s affidavit, such applicant shall not have any outstanding liabilities toward selected institutions (Tax Office, the Czech Social Security Administration, health-insurance companies, Land Fund, Ministry of Finance as the legal successor of the State Property Fund, State Environmental Fund, State Housing Development Fund, Customs Administration of the Czech Republic, State Cultural Fund, State Fund of the Czech Republic for Support and Development of Czech Cinematography, State Agricultural Intervention Fund, regions, municipalities and associations of municipalities) or toward providers of aid for projects co-financed from the European Union budget. Deferment of payment of outstanding liabilities or an agreement on the payment of outstanding liabilities shall be considered as settled liabilities. - According to the applicant s affidavit, the applicant shall not have any outstanding liabilities towards its employees regarding wage claims. - The applicant shall have one of the following legal forms: 101 natural person (hereinafter referred to as NP ) conducting business pursuant to the Trade Licensing Act (hereinafter referred to as the TLA ), not registered in the Commercial Register; 102 NP conducting business pursuant to the TLA, registered in the Commercial Register; 105 NP conducting business pursuant to acts other than the TLA and the Agriculture Act, not registered in the Commercial Register; 106 NP conducting business pursuant to acts other than the TLA and the Agriculture Act, registered in the Commercial Register; 111 public company; 112 limited liability company; 113 limited partnership; 121 jointstock company; 205 cooperative; 231 production cooperative; 232 consumer cooperative; 234 other cooperative; 241 cooperative enterprise (with one founder); 421 foreign entity; 501 affiliated plant or other Page 3 of 8

4 organisational unit registered in the Commercial Register; 932 European company; 933 European cooperative enterprise. - The applicant may not conduct business activities in the sector of primary production of agricultural products, fishing and aquaculture (CZ-NACE A01 and A03) and other sectors exclude pursuant to Commission Regulation (EC) No. 1998/2006. An entity cannot be an applicant if as of the date of submission of the application: - Pursuant to the Act on Bankruptcy and Settlement, a court has declared bankruptcy against its assets, granted a settlement or rejected a proposal for declaration of bankruptcy due to insufficient assets. - A ruling on its insolvency has been issued pursuant to Section 136 of Act No. 182/2006 Coll., on Insolvency. - A court has issued a ruling on the order of enforcement of a decision on the given entity s assets or ordered the execution of its assets. - It is in liquidation. - It is an enterprise in difficulties (Commission Regulation (EC) No. 800/2008). - It has an outstanding liability arising on the basis of an order to return financial resources issued following the prior ruling of the Commission declaring that aid is contrary to law and incompatible with the common market. - It is a recipient of aid for young, innovative enterprises pursuant to Article 35 of Commission Regulation (EC) No. 800/2008, provided less than three years prior to the date of submission of the aid application. As the CzechAccelerator project is being implemented within OPEI, the results of the participant s supported activities must be realised in the Czech Republic, outside of Prague! Individual steps necessary for registration Complete both the Czech and English versions of the project registration form. Prepare financial statements for the past two accounting periods (or at least for the latest accounting period in the case that the applicant has a history shorter than two accounting periods). Send both language versions of the registration form in.doc format together with the financial statements and both signed versions of the registration form in.pdf format (thus a total of five files) to no later than 22 April (prolongs to 8 May 2012). Within three business days CzechInvest will send you an confirming delivery of the registration form. Page 4 of 8

5 Close of registration acceptance: 8 May 2012 Assessment and selection of registrants All applications delivered by the deadline and fulfilling the formal requirements and conditions of the call for participation shall be assessed by an assessment committee, where the applicant will present its business plan and product. The committee will assess the potential for commercial utilisation, the product s attractiveness from the perspective of the end-customer, the product s potential for a technology partner, the manner of introducing the product to the market, the quality of the applicant s working team, the relevance of use in the accelerator, and Practical application of the product on the market (quality, practical utility). Level of technological advancement, attractiveness and level of innovation of the product (innovation standpoint, potential for future development). Feasibility of the product (possibility of manufacturing in series production). Exceptionality and uniqueness of the product (size and extent of competition, the product s potential to become established on the market, future demand for the product). Aid provided to project participants Pre-departure preparation (anticipated timeframe: June 2012) support in the Czech Republic CzechInvest will organise a four-day seminar divided into two basic areas: 1. Legal training focused on protection of intellectual-property rights, patent protection, establishment of branches, labour law, basic aspects and procedures for formulating contracts and tax consulting in individual destinations. 2. Marketing and economics consultancy and practical services for successful operation in the target market (i.e. marketing techniques, strategy, basic principles of formulating a business plan, effective communication with potential partners, presentation of basic procedures in negotiating with venture-capital funds and business angels). Participation in pre-departure preparation, which will be 100% paid for by CzechInvest (costs will be incorporated into the utilised de minimis aid), is mandatory. The participant shall fully pay the costs connected with transportation, accommodation, etc. Page 5 of 8

6 Support at the place of operation (term of operation: July-December 2012) Services provided to project participants which are ensured and 100% paid for by CzechInvest (costs will be incorporated into the participant s de minimis aid): Stay of three to six months in office spaces of the contracting foreign partner. Access to a network of technology firms, leading venture-capital funds and potential customers in the destination through networking activities and services ensured by the contracting foreign partner. Services which the participant shall ensure and pre-finance in accordance with instructions from CzechInvest (costs will be incorporated into the participant s de minimis aid): Participation in professional conferences and seminars. Eligible costs are primarily registration and participation fees, costs connected with appearances and presentations, etc. (aid in the amount of 100% of costs, though not exceeding the maximum amount of CZK 200,000 per firm) (active participation in trade fairs, i.e. activities connected with the active presentation of the product, stand rental, etc., shall not be supported). Services of experts and consultants in the destination, primarily legal, marketing, business development, HR, etc. (aid in the amount of 50% of costs, though maximally in the amount of CZK 200,000 per firm). Training, mentoring and coaching in the destination (aid in the amount of 50% of costs, though maximally in the amount of CZK 200,000 per firm). Support for protection of intellectual-property rights, particularly consulting services leading to the acquisition of patents abroad (aid in the amount of 100% of costs, though maximally in the amount of CZK 200,000 per firm). Travel costs in the amount stipulated by the project for dispatched employees, executives, owners, managers participating in management as members of a statutory body of the enterprise (max. two persons for the period from July to December 2012). a) Travel costs, i.e. economy-class air travel from the Czech Republic to the destination (aid in the amount of 50% of costs, though not exceeding the maximum amount of CZK 15,000 per one round-trip airline ticket to the United State or Singapore, or the maximum amount of CZK 8,000 per one round-trip airline tick to Israel or Switzerland). b) Contribution for accommodation (aid in the amount of 50% of costs, though not exceeding the maximum amount of CZK 40,000 for the entire period of July December 2012, i.e. CZK 6,666 per month). Page 6 of 8

7 Aid for SMEs will be provided to participants pursuant to the de minimis rule. Aid is provided in the de minimis regime in accordance with Commission Regulation (EC) No. 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the EC Treaty to de minimis aid. Such aid is provided in the amount of 50% to 100% of eligible costs. The total amount of de minimis aid provided to one enterprise may not exceed the amount of EUR 200,000 in any three-year period (this refers to the total of de minimis aid obtained in the current tax period and for the two preceding tax periods). For conversion of the amount of aid from OPEI pursuant to the de minimis rule, the currency-conversion rate issued by the European Central Bank on the date of provision of such aid, i.e. the date of conclusion of the contract, shall be used. Other state aid, i.e. state aid pursuant to Article 107(1) of the Treaty on the Functioning of the European Union or aid in the de minimis regime pursuant to Commission Regulation (EC) No. 1998/2006, cannot be provided for identical partially or fully overlapping eligible costs of the participant supported from the CzechAccelerator project. An unsuccessful applicant can re-register in a new call under the condition that such applicant fulfils the conditions of participation. Other conditions Aid will be provided to the participant on the basis of a Contract on Cooperation concluded with the aid provider, i.e. CzechInvest. The participant is obligated to keep separate records and documentation pertaining to eligible project costs and use of aid intended for financing eligible costs and to retain such records for a period of ten years from the date of termination of the project and minimally for a period of three years from the closure of the Operational Programme Enterprise and Innovation in accordance with Article 90 of Council Regulation (EC) No. 1083/2006. All aid recipients will be informed of the closure of the Operational Programme Enterprise and Innovation. Aid in the form of services is provided to participants during the duration of the project; financial support (payment of part of the eligible costs) is provided retroactively following termination of the project, providing that the conditions set forth in the Contract have been fulfilled. Throughout the entire period of project implementation and for a period of three years from the date of termination of the project, the participant is obligated to allow direct access by employees of the aid provider and Page 7 of 8

8 administrator of OPEI for the purpose of conducting inspections pursuant to Act No. 552/1991 Coll., on State Inspection. The participant is further obligated to allow these employees direct access for the purpose of verifying compliance with the conditions of the project and proper use of resources from the provided aid, as well as inspections of the financial situation and accounting and tax records of the aid recipient both at the place of project implementation and at the aid recipient s registered office. For the purpose of inspection, the participant is obligated to retain all outputs paid for from the project. Other obligations of the participant are set forth in the Contract on Cooperation. Contact: Lubos Matejka, project manager, CzechAccelerator programme tel.: , Marketa Havlova, project manager, CzechAccelerator programme tel.: , Page 8 of 8

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