Draft Letter Outlining Terms and Conditions for Capital Injection in SME

Dear Mr./Mrs.             , 

Re: Capital Call Injection 

We make reference to the subject capital injection and by mutual agreement, the said injection is being held in an Escrow Account and subject to the following terms and conditions:  

• Members of the “Management Group” signing a mutually agreed upon arrangement that governs the dealings in shares within the first three years of operation of the company (just as an example);
• The Licence enabling the company to trade and operate as a Securities Dealer (or provide name of any other regulated business) is secured;
• The proposed shareholding for the company is not changed without prior notice and consent.
• Any dividend paid within the first three (3) years (or as decided) will be in the ratio that will compensate the private investors for the greater injection of cash into the business.   The ratio to be mutually agreed upon;
• All capital call fund injections will be treated as in the provisions preceding;
• A detailed shareholders agreement being in place with (provide time). 

Please sign below indicating your acceptance of the terms and conditions. Again, we thank you for the confidence placed in us and the comapny and look forward to a long mutually beneficial relationship.  

Yours sincerely,

Signed