This sample form, a Down-Round Term Sheet document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.
They should think hard about the long-term effects, the impact on morale, and how it'll look to potential investors later—it's like weighing the pros and cons before making a big decision.
It typically includes details about the investment amount, valuation, the rights of new investors, and how existing shareholders will be affected, like laying out the rules before the game starts.