Enterprise Investment Scheme Term Sheet
EIS shares must be subscribed for, meaning they must be newly issued shares and not shares sold by an existing shareholder. The subscription of shares under the Enterprise Investment Scheme will require a degree of formality and it is usual for the parties to enter into a subscription agreement. Before entering into a formal agreement the parties may wish to enter into a term sheet designed to help them set out clearly and in advance, the terms on which the EIS investment will be made.
It serves as a non-binding letter of intent which summarises the important terms of the investment. It is the basis on which to develop a more detailed binding legal document without misunderstanding. These heads of terms are not intended to be exhaustive and are not intended to be legally binding except in relation to Expenses, Exclusivity and Confidentiality.
It is strongly recommended that independent legal and tax advice is sought for companies or investors considering EIS investment.
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