Common use of Division of Proceeds Clause in Contracts

Division of Proceeds. (a) With regard to any work or invention owned by the University and subject to the requirements of any applicable sponsored agreements, the net adjusted income shall be distributed as follows: (1) Schedule A: Up to $500,000: 40% to the individual creator(s) 10% to the University program(s) 7.5% to the creator(s)’s department 7.5% to the creator(s)’s college 35% to the University (2) Schedule B: $500,000 or over: 25% to the individual creator(s) 10% to the University program(s) 10% to the creator(s)’s department 10% to the creator(s)’s college 45% to the University (3) Notwithstanding the above, all net adjusted income from the University sale or liquidation of equity or other ownership interests originally paid to the University by a licensee in lieu of cash royalties or license fees shall be distributed according to Schedule B. The decision as to when to sell, exchange or convert equity interests resides with the University in its sole discretion. (4) The division of proceeds set forth in this Section 22.7(a) does not apply to any works or inventions that are the subject matter of any license agreement or other transaction entered into by the University or UFRF before July 15, 1997, and the proceeds in such cases shall continue to be distributed pursuant to the University of Florida Patent Policy dated February 1993 or any previous agreement entered into by the creator and the University. (b) Distributions of income shall be made semiannually on or before June 1 and December 1 of each year. (1) The University may, at its sole judgment, withhold or delay distribution of any income if there is a foreseeable development expense yet to be incurred. (2) In instances where funds are held because of foreseeable development expenses or where expenses exceed revenue, an accounting of such shall be sent to the creator’s department and college indicating the amounts received for the current six-month period and the amount of the anticipated expense or deficit. (3) Once expenses are known with certainty, any excess withholding shall be distributed. (c) Payments of the portion allocated to the creator(s) must be made to creator(s) individually and cannot be assigned by the creator(s) to other parties or entities. The only exception shall be that after a creator’s death, appropriate notification by the personal representative of the creator’s estate, and court approval, if necessary, payment shall be made to the creator’s heirs or devisees. (d) In the event there are multiple creators for an invention or work, the creators’ share shall be divided equally among all creators unless the creators agree among themselves to a different division. (1) If the creators agree among themselves to a different split, OTL must be notified in writing at least one month prior to the date of the first income distribution as to the agreed upon division of income. (2) The portions distributed to the academic units, which are the academic units of the creator(s) at the time of the creation of the invention or work, shall be pro-rated when more than one unit is involved. (3) The University shall make the final decisions on the pro-ration of such portions to academic units. (e) In the case of licenses or other transactions involving multiple inventions or works, the University shall resolve any potential conflicts concerning the applicable distribution schedules after reviewing the technologies involved. (f) That portion allocated to the program (or programs) remains under the control of the University. If there is more than one program in which the invention or work was developed, the program portion will be pro-rated as determined by the University. If a creator should leave the University, the portion allocated to the creator’s program shall be allocated to that program as long as the program exists and consists of research in the same area as that conducted by the creator prior to leaving the University. If the program ends, the portion allocated to the program shall be allocated to the University. Any determinations regarding the distribution of the program portion of net income shall be at the sole discretion of the University.