THE LENDER WARRANT Clause Samples

The "Lender Warrant" clause grants the lender the right to purchase equity in the borrower, typically in the form of shares or stock, under specified terms. This clause outlines the number of warrants, the exercise price, and the period during which the lender can exercise this right, often as an incentive for providing financing. By including this provision, the lender gains potential upside if the borrower's value increases, while the borrower can secure funding without immediate equity dilution, thus aligning interests and compensating the lender for risk.