R&D Bonus Sample Clauses
The R&D Bonus clause establishes a provision for awarding additional compensation based on research and development achievements. Typically, this clause outlines specific milestones, deliverables, or performance metrics that must be met for the bonus to be granted, such as the successful completion of a prototype or the filing of a patent. Its core function is to incentivize innovation and productivity by directly linking financial rewards to measurable R&D outcomes, thereby motivating parties to prioritize and achieve key project objectives.
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R&D Bonus. Employee shall be entitled to receive a bonus (the "R&D Bonus") in an amount equal to 3% of the Net Sales of any "Key R&D Product" (as hereinafter defined) during the 12 month period commencing on the date of the first shipment of the Key R&D Product to customers; provided, however, that the R&D Bonus of all Key R&D Products payable to Employee with respect to any Fiscal Year shall not exceed $25,000. A Key R&D Product shall mean an innovative product developed for Employer after December 31, 2001 which has been approved in writing by Employer's CEO as a Key R&D Product. The R&D Bonus for Net Sales of Key R&D Products during a Fiscal Quarter shall be payable 30 days after the end of the Fiscal Quarter, provided, however, that the cumulative R&D Bonuses payable with respect to any single Fiscal Year shall not exceed $25,000.