Common use of Term Sheet Milestone Clause in Contracts

Term Sheet Milestone. On or before December 31, 2013, Borrower’s receipt of a signed and accepted term sheet from one or more investor(s) acceptable to Bank for the sale or issuance of Borrower’s equity securities on terms and conditions which shall result in net Cash proceeds in amount not less than $2,500,000 (the “Term Sheet”); provided, however, the net Cash proceeds required under the Term Sheet shall be reduced by: (i) Cash proceeds which are in excess of the required Cash amount pursuant the Initial Equity Event, and (ii) funds to be received in the 2014 calendar year pursuant to signed term sheets, signed proposals or signed contracts for new or expansion of existing partnership(s) or collaboration(s) that are also included in Borrower’s 2014 Board approved plan to be in effect beginning January 1, 2014; provided, further, that Borrower’s 2014 Board approved plan evidences Borrower’s ability to retain a Cash balance throughout the remainder of the 2014 calendar year.