IP Performance Bonus Sample Clauses
The IP Performance Bonus clause establishes a financial incentive tied to the achievement of specific intellectual property (IP) milestones or performance targets. Typically, this clause outlines the criteria under which a party, such as an employee or contractor, becomes eligible for a bonus—such as the successful filing, granting, or commercialization of patents or other IP assets. By directly linking compensation to IP-related achievements, the clause motivates parties to prioritize innovation and ensures that key objectives in IP development are met efficiently.
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IP Performance Bonus. During the Term of this Agreement, the Executive shall be eligible to receive a performance bonus (less applicable withholdings) as described below (the “IP Performance Bonus”). The IP Performance Bonus will consist of a percentage of either the Net Litigation Proceeds (as defined in Section 3.4(b)) received by the Company from any one of its Pending Patent Cases (as defined in Section 3.4(a)), the net licensing proceeds received by the Company other than from the Company’s internally developed intellectual property (“Net Licensing Proceeds”), or a percentage of the Net Sales Proceeds (as defined in Section 3.4(c)) received by the Company in connection with the sale of any of its patent assets. To receive an IP Performance Bonus, the Executive must be employed with the Company when either the Net Litigation Proceeds or Net Sales Proceeds are received by the Company and not be in breach of this Agreement. The Performance Bonus shall be payable within fifteen (15) days of receipt by the Company of either Net Litigation Proceeds or Net Sales Proceeds. The IP Performance Bonus payable to Executive will be calculated as follows: ● 15% of Net Litigation Proceeds, Net Licensing Proceeds or Net Sales Proceeds received by the Company.