(1)  A person or organisation may enter into a funding agreement with the Secretary in relation to a grant to the person or organisation for the purposes of carrying out any research or development activity.

(2)  A funding agreement, with a person or organisation referred to in subsection (1) , in relation to a grant must specify –

(a) the research or development activities to be carried out by the person or organisation for the purposes of the grant; and

(b) that it is a condition of the grant that the person or organisation, so far as is practicable, must, in carrying out the research or development activities, comply with the principles set out in section 5 ; and

(c) the terms and other conditions of the grant with which the person or body must comply in respect of the research or development activity; and

(d) the period for which the agreement is to be in force.