Paul H. Riley Score Project Director Score IP update Paul H. Riley Score Project Director

WP8 highlights Inventor assignment agreement now signed Telecon meeting with IP committee 1 Dec 09 Discuss setting up new Score entity Patent cover and IP assignment costs Review Viveik’s (PTS) proposal for trading entity in HK Three collaboration agreements signed, Mark Loweth, Dai-Ichi and PTS motors Proposed £20k funds from PTS and GTZ (SA) Cost reduction underway at Dai-ichi Good start but some “treacle” with PTS Two Patents: Heat exchanger manufacturing Linear Alternator (all Notts inventions) New Radiant Heat exchanger patent application, Nott and one claim from City.

Commercial requirements Need to ensure impact in developing country motivate developing country protect from corruption etc. make profit in developed world Investors need return how to ensure only from developed world? Low central management overhead Simple rules, easy to maintain, difficult to breach Policing Prevent low cost bypass IP protection Incentive to drive down costs Competitive element

Score Commercial Entity Developing country Kit of parts + subsidy + plans Employees minimise number going rate salary Score trading entity Orders. Std pricing Suppliers Open book accounts Protect investment/ with competition Non profit Web based trading and financial control. Open book Profit Developed country Finished goods or kit of parts Shareholders minimal number holding ∞ investment return to Universities License

Supply Chain Design authority with Score team until 2012 Manufacturing Engineering with Dai-ichi and possibly PTS motors for short term Trading entity as central place to take orders, it then organises delivery of parts. Deliver through Local Universities NGO’s Local Distributors Large corporations

Phases Testing Cost reduction and roll out Volume Manufacture 2010, Funding required £350k (about 50k raised so far) £150k for 150 off prototypes, Target unit price is £1k with £800 cost £200/ unit returned to cover central costs (Patents etc.) £150k to retain key staff over 1- 2 years £50k for travel, manufacturing evaluations, tooling etc. Cost reduction and roll out 2011 - 2012, Funding required £3M (to cover 5 years) £500k capital costs (tooling etc) £1M to retain key staff for 5 years £250k central costs (Patents, Lawyer, accountants etc) £250k manufacturing trials £750k initial production manufacture £250K marketing etc. Income generation starts in this phase Volume Manufacture After 2013 income builds to > £10M pa Funded by a mixture micro-finance (income from target households) International development agency subsidy for very poor regions Profit from sales to developed countries Rate of penetration (developing) depends on manufacturing cost and amount of subsidy At £60 per unit, total market = £300M (excluding subsidies) to 14m Households At £20 per unit, total market = £30B to 500M households Developed country market not yet determined

Entity questions Location, HK. UK? Management make up, PHR, Viveik Saigal, Pablo? Investment protection Dai-ichi exclusivity for a period PTS motors exclusivity for a period Company control Make up of shares and shareholding Shares proportioned to investment? Initially value Score at £2M? (research grant total) Possible JV with University having minority share Controlled by PHR