Exercise Warrants Clause Samples
The Exercise (Warrants) clause defines the process by which a warrant holder can convert their warrants into shares or other securities of the issuing company. Typically, this clause outlines the steps required to exercise the warrant, such as submitting a notice and payment of the exercise price, and may specify timeframes, methods of payment, and any conditions that must be met. Its core practical function is to provide a clear and standardized mechanism for warrant holders to realize their rights, ensuring both parties understand how and when warrants can be exercised, thereby reducing the risk of disputes or misunderstandings.
Exercise Warrants. Upon exercise of the Original Warrant for the Exercise Shares at the Exercise Price in accordance with the terms hereof, the Warrantholder shall also receive and be granted by the Company, a further common stock purchase warrant (the “Exercise Warrant”) to purchase [ ] shares of common stock, par value $0.001 per share, of the Company (the “Common Stock”) at an initial exercise price per share of $0.1250; such Exercise Warrant in the form attached hereto as Exhibit A. For the avoidance of doubt, in the event the Warrantholder exercises any or all of the remaining Warrant Shares, it shall not have any right to receive, and the Company shall have no obligation to issue, any additional Exercise Warrants.
Exercise Warrants. The registered holder of any Warrant Certificate may exercise the 1998 Warrants evidenced thereby, in whole at any time or in part from time to time at any time prior to the close of business on the Expiration Date, subject to the provisions of Section 9, at which time the Warrant Certificates shall be and become wholly void and of no value. 1998 Warrants may be exercised by their holders as follows:
A. Exercise of 1998 Warrants shall be accomplished upon surrender of the Warrant Certificate evidencing such 1998 Warrants, with the Form of Election to Purchase on the reverse side thereof duly filled in and executed, to the Warrant Agent at its stock transfer office in Glendale, California, together with payment to the Warrant Agent of the Exercise Price (as of the date of such surrender) of the 1998 Warrants then being exercised and an amount equal to any applicable transfer tax and, if requested by the Company, any other taxes or governmental charges which the Company may be required by law to collect in respect of such exercise. Payment of the Exercise Price and other amounts may be made by wire transfer of good funds, or by certified or bank cashiers check, payable in lawful money of the United States of America to the order of the Warrant Agent, who shall in turn make prompt payment to the Company. No adjustment shall be made for any cash dividends, whether paid or declared, on any securities issuable upon exercise of a 1998 Warrant.
B. Upon receipt of a Warrant Certificate, with the Form of Election to Purchase duly filled in and executed, accompanied by payment of the Exercise Price of the 1998 Warrants being exercised (and of an amount equal to any applicable taxes or government charges as aforesaid), the Warrant Agent shall promptly request from the Transfer Agent with respect to the securities to be issued and deliver to or upon the order of the registered holder of such Warrant Certificate, in such name or names as such registered holder may designate, a certificate or certificates for the number of full shares of the securities to be purchased, together with cash made available by the Company pursuant to Section 8 hereof in respect of any fraction of a share of such securities otherwise issuable upon such exercise. If the 1998 Warrant is then exercisable to purchase property other than securities, the Warrant Agent shall take appropriate steps to cause such property to be delivered to or upon the order of the registered holder of such Warrant Cer...
Exercise Warrants