The federal government uses three main categories of distinctions: these agreements are concluded in the form of business contracts: agreements that generate revenue, support continuing education or vocational training and set up student internships; agreements that do not include research, training or vocational or scientific training, research or training services, industrial financing, research on human or animal subjects, effort report, cost sharing, travel and entertainment, real estate credit and purchase; and agreements that do not contain conditions requiring follow-up and reporting through contract accounting and grants are treated as business contracts. Contract or sub-price: a market or sub-price is a premium for a prescribed or defined project with a specified period for a specified amount with defined delivery elements. There are two types of contracts – refund and fixed price. In a fee reimbursement agreement, the promoter agrees to bear all eligible costs incurred by the university in the work or research process up to an agreed maximum. A fixed-price contract requires the (s) principal controller (s) to a defined level of work for a specified amount; that is, the sponsor pays the university a fixed amount to complete a specific task, regardless of the actual cost. If the cost of the project exceeds the contract amount, the lead investigator must cover the cost overrun with the division head, the dean and the research, Discovery – Innovation. Examples of contracts: Cooperation agreements involving researchers employed by more than one organization may develop formally at the beginning of the preparation of the proposal or be formally required by a funding agency as part of a proposal. Where there is cooperation with a staff member of a commercial enterprise, it is necessary to formalize a cooperation agreement with the university and to address intellectual property rights. Cooperation agreements with a commercial enterprise must be verified by Contracting Services. If collaboration exists between a researcher from the University of Arizona and a non-University of Arizona, a non-company auditor, a statement of intent is considered a proven method. The Memorandum of Understanding should contain a declaration of cooperation, the identification of the scientists responsible for each activity and one or two sentences describing what each collaborator will bring. This letter should only be between the auditors, unless the promoter requires a signature from the university, in which case contract services must be involved.