V5TERM SHEET FOR POTENTIAL INVESTMENT IN C2 LIFE SCIENCES INC修改版Word文件下载.docx

V5TERM SHEET FOR POTENTIAL INVESTMENT IN C2 LIFE SCIENCES INC修改版Word文件下载.docx

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1.1ClosingDate:

AssoonaspracticablefollowingtheCompany’sacceptanceofthisTermSheetandsatisfactionoftheConditionstoClosing（the“Closing”）.

1.2AmountRaised:

TheCompanyandtheinvestorsarediscussingaprivateplacementofsharesofPreferredStockandCommonStockonthefollowingterms:

AmountofInvestment:

$[____________].

1.3PricePerShare:

$[____________]（basedonthecapitalizationoftheCompanysetforthbelow）（"

OriginalPurchasePrice"

）. 

1.4Pre-MoneyValuation:

TheOriginalPurchasePriceisbaseduponafully-dilutedpre-moneyvaluationof$[_____]andafullydilutedpost-moneyvaluationof$[______]（includinganemployeepoolrepresenting[__]%ofthefullydilutedpost-moneycapitalization）.

1.5MajorInvestor:

A“MajorInvestor”meansanyInvestorwhopurchasesatleast$[______]ofSeriesAPreferredorCommonStock.

1.6Contributions:

（1）AmountofContributions:

TheamountofthecontributionsoftheInvestorsareasfollows:

Investors

ContributionForm

Valuation

Numberofsharesofcommonstock/preferredstock

（2）Thecashcontributionsofinvestorsshallbemadewithin[_______]daysafterthisTermSheetissigned.

（3）Iftheinvestorsmakeanynon-cashContributions,theinvestorshallexecuteanddelivertotheCompanyanyassignmentsandotherinstrumentsoftransferasmaybedeemednecessarytoconfirmandcarryoutthecontributionstocapitaloftheCompany.Ifadditionalagreementisneeded,theinvestorsshallsignadditionalagreementforthoseitems,includingbutnotlimitedtoAssignmentofPatents,Realestatetransferagreement,etc.

（4）Valueofnon-cashContributions:

Thevalueofnon-cashContributionsshallbedeterminedaccordingtotheassetassessmentreportissuedbytheinstitutionthatentrustedjointlybytheinvestorandtheCompany.

（5）Guarantee:

（i）OnthedatehereofandonanyBusinessDaythereafter,theInvestorshallcontribute,transfer,assign,andconvey,withoutrecourse（exceptasexpresslyprovidedherein）,totheCompany,asacapitalcontribution（whichtheCompanyshallaccept）,allofitspresentandfutureright,titleandinterest.

（ii）TheInvestorandtheCompanyherebyacknowledgeandagreethatitistheirmutualintentthat（a）everytransferbywayofcapitalcontributionofReceivableAssetstotheCompanyhereundershallbeanabsolute,unconditional,"

true"

conveyanceandnotameregrantingofasecurityinteresttosecurealoantoorfromtheCompany,（b）theInvestorshallnotretainanyinterestintheReceivableAssetsafterthecontributionthereofhereunder,（c）theReceivableAssetsoriginated,orpurchasedfromanOriginator,bytheInvestorshallnotbepartoftheInvestor'

sinsolvencyorbankruptcyestateintheeventaninsolvencyordelinquencyproceedingorabankruptcypetitionorotheractionshallbecommencedorfiledbyoragainsttheInvestorunderanyinsolvencyorbankruptcylaw.

1.7UseofProceeds:

TheproceedsfromthesaleoftheSeriesAPreferredandCommonStockwillbeusedforworkingcapital.

1.8CapitalizationoftheCompany:

（1）ThecurrentcapitalizationoftheCompany:

Shareholders

TypeofSecurity

Numberofshares

Percentageofshares

Total:

（2）ThecapitalizationoftheCompanyafterthisproposedfinancing:

SectionII:

Rights,PreferencesPrivilegesandRestrictionsofPreferredStock

2.1DividendProvisions:

[Startingon____________,2014.]TheholdersofthePreferredwillbeentitledtoreceivedividends[attherateof____%oftheOriginalPurchasePrice]wheneverfundsarelegallyavailableandwhenandasdeclaredbytheBoard.NodividendshallbepaidontheCommonatarategreaterthantherateatwhichdividendsarepaidonPreferred（basedonthenumberofsharesofCommonintowhichthePreferredisconvertibleonthedatethedividendisdeclared）.DividendsonPreferredwillbeinpreferencetodividendspaidontheCommon.DividendsonthePreferredwillbe[____________insertcumulativeornoncumulative].

2.2LiquidationPreference:

Intheeventofanyliquidation,dissolutionorwindingupoftheCompany,theholdersofPreferredwillbeentitledtoreceiveinpreferencetotheholdersofCommon.Firstpay[2]timestheOriginalPurchasePrice[plusdeclaredandunpaiddividends]oneachshareofSeriesAPreferred.Thereafter,theSeriesAPreferredparticipateswiththeCommonStockprorataonanas-convertedbasis.

Amergerorconsolidation（otherthanoneinwhichstockholdersoftheCompanyownamajoritybyvotingpoweroftheoutstandingsharesofthesurvivingoracquiringcorporation）andasale,lease,transfer,exclusivelicenseorotherdispositionofallorsubstantiallyalloftheassetsoftheCompanywillbetreatedasaliquidationevent（a“DeemedLiquidationEvent”）,therebytriggeringpaymentoftheliquidationpreferencesdescribedabove[unlesstheholdersof[___]%oftheSeriesAPreferredelectotherwise.TheInvestors'

entitlementtotheirliquidationpreferenceshallnotbeabrogatedordiminishedintheeventpartoftheconsiderationissubjecttoescrowinconnectionwithaDeemedLiquidationEvent.

2.3VotingRights:

TheSeriesAPreferredshallvotetogetherwiththeCommonStockonanas-convertedbasis,andnotasaseparateclass,exceptasspecificallynotedhereinorrequiredbylaw.SeriesAPreferredasaclassshallbeentitledtoelect[_______]membersoftheBoard.TheCompany’sCertificateofIncorporationwillprovidethatthenumberofauthorizedsharesofCommonStockmaybeincreasedordecreasedwiththeapprovalofamajorityofthePreferredandCommonStock,votingtogetherasasingleclass,andwithoutaseparateclassvotebytheCommonStock.

2.4ProtectiveProvisions:

Solongas[__]%sharesofSeriesAPreferredareoutstanding,inadditiontoanyothervoteorapprovalrequiredundertheCompany’sCharterorBylaws,theCompanywillnot,withoutthewrittenconsentoftheholdersofatleast[__]%oftheCompany’sSeriesAPreferred,eitherdirectlyorbyamendment,merger,consolidation,orotherwise:

（i）liquidate,dissolveorwinduptheaffairsoftheCompany,oreffectanymergerorconsolidationoranyotherDeemedLiquidationEvent;

（ii）amend,alter,orrepealanyprovisionoftheCertificateofIncorporationorBylawsinamanneradversetotheSeriesAPreferred;

（iii）createorauthorizethecreationoforissueanyothersecurityconvertibleintoorexercisableforanyequitysecurity,havingrights,preferencesorprivilegesseniortooronparitywiththeSeriesAPreferred,orincreasetheauthorizednumberofsharesofSeriesAPreferred;

（iv）purchaseorredeemorpayanydividendonanycapitalstockpriortotheSeriesAPreferred,otherthanstockrepurchasedfromformeremployeesorconsultantsinconnectionwiththecessationoftheiremployment/services,attheloweroffairmarketvalueorcost;

otherthanasapprovedbytheBoard,includingtheapprovalof[_____]SeriesADirector（s）;

or

（v）createorauthorizethecreationofanydebtsecurity[iftheCompany’saggregateindebtednesswouldexceed$[____][otherthanequipmentleasesorbanklinesofcredit][unlesssuchdebtsecurityhasreceivedthepriorapprovaloftheBoardofDirectors,includingtheapprovalof[________]SeriesADirector（s）];

（vi）createorholdcapitalstockinanysubsidiarythatisnotawholly-ownedsubsidiaryordisposeofanysubsidiarystockorallorsubstantiallyallofanysubsidiaryassets;

（vii）increaseordecreasethesizeoftheBoardofDirectors.

2.5OptionalConversion:

ThetotalnumberofsharesofCommonintowhichPreferredmaybeconvertedinitiallywillbedeterminedbydividingtheOriginalPurchasePricebytheconversionprice.TheSeriesAPreferredinitiallyconverts[____]:

1toCommonStockatanytimeatoptionofholder,subjecttoadjustmentsforstockdividends,splits,combinationsandsimilareventsandasdescribedbelowunder“Anti-dilutionProvisions.”Theconversionpricewillbethesubjectofadjustmenttoreflectstockdividends,stocksplitsandsimilarevents. 

2.6Anti-dilutionProvisions:

（1）IntheeventthattheCompanyissuesadditionalsecuritiesatapurchasepricelessthanthecurrentSeriesAPreferredconversionprice,suchconversionpriceshallbeadjustedinaccordancewiththefollowingformula:

“Typical”weightedaverage:

CP2=CP1*（A+B）/（A+C）

CP2=SeriesAConversionPriceineffectimmediatelyafternewissue

CP1=SeriesAConversionPriceineffectimmediatelypriortonewissue

A=NumberofsharesofCommonStockdeemedtobeoutsta