Pro Forma Letter

Date

Dear

I am please to confirm that, in response to your application, the Fund is prepared to make a grant of £XXX under the following conditions.

1. The money will be used exclusively for the work described in your application.
   
   
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 the Fund 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, it is proposed that the net income be distributed in accordance with the formulae in the University Decrees for the distribution of net revenue from intellectual property exploited by Isis Innovation Ltd, save that the University General Fund's share will be allocated to the Fund. The researcher's share will not be affected.
   
   
5. This offer will remain open for four weeks from the above date.
   

Yours sincerely,

[Chairman of the Investment Advisory Committee]

Please sign and return this letter to c/o Isis Innovation, Ewert House, Summertown Oxford OX2 7SG to indicate your acceptance of these conditions.

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