Biopharmaceutical Investment Program (BIP)

These guidelines, as well as the BIP application form are subject to change from time to time without notice at the sole discretion of the Ministry of Research and Innovation.

Appendix D: Funding Agreement Requirements

If selected, the successful Applicant is required to enter into a funding agreement with the Government of Ontario.  All documentation must be in a form and substance satisfactory to the ministry.  The terms of the funding agreement would contain provisions in favour of the ministry including, but not limited to the following.

• Identity of contracting Company must be satisfactory to the ministry
• Guarantee of parent or related party may be requested
• Applicants will make commitments for (i) project investment commitment and (b) achieving explicit job targets.  To the extent that each of these commitments is separately not achieved by the date set out, the Applicant will be required to repay (i.e. clawbacks) money that has been disbursed
• Conditions of disbursement
• Subject to annual funding allocation
• Reporting and audit requirements
• Representations and warranties
• Positive Covenants
• Negative covenants which may include:
  
  
  • distributions to shareholders
  • additional indebtedness
  • loans or guarantees to third parties
  • asset sales or other dispositions
  • encumbrances
  • creation of subsidiaries
  • transactions with affiliates
  • changes in the business, management or ownership
  • acquisitions
  • capital expenditures
  • reorganizations
• Insurance and indemnities in favour of the Government of Ontario
• Provisions relating to non-arm’s length transactions
• Events of default and remedies for default including but not limited to repayment of funds

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