|
Under
the terms of the Merger Agreement, the Company has agreed to pay contingent consideration to MyMD Florida stockholders in the form of
the Milestone Payments. The Milestone Payments are payable in the dollar amounts set forth in the chart below upon the achievement of
the milestone events set forth opposite such dollar amount during the Milestone Period as follows:
Summary
of Milestone Events Payment
| Milestone
Event |
|
Milestone
Payment |
| |
|
|
| Market
capitalization of the Company for at least 10 trading days during any 20 consecutive trading day period during the Milestone Period
is equal to or greater than $500 million (the “First Milestone Event”). |
|
$20
million. |
| |
|
|
| For
every $250 million incremental increase in market capitalization of the Company after the First Milestone Event to the extent such
incremental increase occurs for at least 10 trading days during any 20 consecutive trading day period during the Milestone Period,
up to a $1 billion market capitalization of the Company. |
|
$10
million per each incremental increase (it being understood, however, that, if such incremental increase results in market capitalization
equal to $1 billion, such $20 million payment in respect of such incremental increase shall be payable without duplication of any
amount payable in respect of a Second Milestone Event). |
| |
|
|
| Market
Capitalization of the Company for at least 10 trading days during any 20 consecutive trading day period is equal to or greater than
$1 billion (the “Second Milestone Event”). |
|
$25
million. |
| |
|
|
| For
every $1 billion incremental increase in market capitalization of the Company after the Second Milestone Event to the extent such
incremental increase occurs for at least 10 trading days during any 20 consecutive trading day period during the Milestone Period. |
|
$25
million per each incremental increase. |
|