Pro Forma Letter

Date

Dear

University Challenge Seed Fund (the ‘Fund’)
ref: UCSF XXX – TTTT - £XXX,XXX

I am pleased to confirm that, in response to your application, the Investment Advisory Committee of the Fund is prepared to recommend an award of up to £XXX,XXX under the following conditions.

1. The money will be used exclusively for the work described in your application. Any unspent monies will be returned to the Fund at the end of the academic year in which the work is planned to be finished.
2. Any intellectual property generated as a result of work financed by the grant will remain the property of the University.
3. If a new company results from work financed by the grant, the grant will be treated as equity investment and will be accorded equity in the name of the University for the account of the Fund, at the same price as the first round cash investors. In addition, at formation of the company, the Fund has the opportunity to subscribe for further shares at the same price as, and on a basis no less favourable than, the first round cash investors up to a limit of £250,000 per venture. If the company is spun out without first round cash investors, the company will agree a side letter with the Fund at the time of spinning out which sets out a mechanism under which shares will be issued to the University for the account of the Fund if there is no cash investment within six months of spinning out.
4. If, rather than a new company, results from work financed by the grant generate licensing income, a portion of the net revenue will be allocated to the Fund in accordance with the University’s Regulations. The researcher(s) share will not be affected.
5. In order to help monitor the success of the project, Isis would welcome receiving a brief report on progress from work financed by the grant.
6. This offer will remain open for four weeks from the above date.

 

Yours sincerely,

[UCSF Investment Advisory Committee]

Please sign and return this letter to UCSF Admin, c/o Isis Innovation, Ewert House, Summertown OX2 7SG (fax 01865 280831) to indicate your acceptance of these conditions.

Accepted Principal Investigator	Accepted on behalf of the University [Finance Department]
Date:	Date: