Warrant (Fixed Percentage Form) | Practical Law
A fixed percentage warrant to be used in connection with the financing of a private company, such as in a private equity or venture capital transaction. This agreement sets out the terms and conditions by which the holder of a warrant receives the right to purchase, for a nominal exercise price and for a set exercise period, a number of equity securities of an issuer equal to a fixed percentage of the outstanding equity securities at the time of exercise. It is drafted in favor of the investor, but aims to be reasonable and includes customary provisions commonly included in many warrants. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.