Second Milestone Conditions Clause Samples

Second Milestone Conditions. The second milestone shall have been achieved if the following conditions (the “Second Milestone Conditions”) are met or achieved on or before June 30, 2015 (the “Second Milestone Deadline”): (i) for the three months ended March 31, 2015, the Company has: (A) generated revenue of greater than $2,250,000; (B) earned gross profit of greater than $1,000,000; and (C) operating expenses of no more than $2,500,000, as evidenced in the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission; (ii) the Company has complied with the covenant set forth in Section 5.4 of the Purchase Agreement from the Closing Date through the achievement of this second milestone; (iii) the Company has filed all quarterly and annual reports with the SEC; (iv) the Company has used its best efforts to satisfy the conditions necessary for an uplisting on either NASDAQ or the NYSE; (v) the Company has filed the Registration Statement with the Securities and Exchange Commission; and (vi) the Company has hired a permanent Chief Financial Officer. Notwithstanding the above, the Milestones contained in this Section 5 may be waived or accelerated by mutual consent of the holders of sixty percent of the aggregate amount of Preferred Shares then outstanding, which waiver is in such Purchasers’ sole discretion.