Home Blog Warrant Agreement Review: Key Terms, Review Tips, Legal Help

Warrant Agreement Review: Key Terms, Review Tips, Legal Help

Jump to Section

What is a Warrant Agreement Review?

A warrant agreement is a document that specifies that one party is allowed to buy a company’s stock at a certain price. A warrant agreement can be a call warrant, in which shares are purchased at a certain price in the future; or a put warrant, when a party has the right to sell back shares at a specific price in future.

After a warrant agreement has been drafted, it’s essential for both parties to review it closely for any issues.

Read the rest of this article to explore what a warrant agreement contains, how to review it yourself for accuracy, and when to consult with a lawyer for a professional, thorough review.

What Information is in a Warrant Agreement?

A warrant agreement contains important information that governs the selling of stock. Since it has many details that directly affect how much money you can make, it shouldn’t be taken lightly. Here are some key terms included in the contract.

  • Purchase of shares. This states that the warrant holder is allowed to buy a certain amount of shares from the company, which must be clearly described. The price per share must also be included.
  • Exercise period. This refers to the term of the agreement, which starts when the warrant is issued and ends on a specific date.
  • Issuance of shares. The company agrees to issue the shares during the exercise period.
  • Notice of adjustment. If any changes are made to the number or type of shares, the company agrees to notify the holder.
  • Stockholder rights. The agreement specifies that the warrant holder won’t be entitled to vote, hold shares, or have other securities.
  • Notice of exercise. The warrant holder agrees to purchase a certain number of shares that need to be specified. The agreement might also include information about how the payment will be made.

How Should You Review a Warrant Agreement?

There are some important key terms to check when reviewing a warrant agreement. Here they are, as well as some tips to review your document thoroughly.

Cover the Basics

Start by ensuring the agreement covers all the basic information about what the warrant allows you to do, the exercise price you’ll pay per share, and the expiry date.

Check for Protections

You want to see what’s at risk, such as by checking if you’ll be protected if the company issues new shares at a reduced price. Notices of adjustment need to be clearly defined for clarity.

Read the Termination Clause

The agreement’s termination clause is essential to review because it could have serious implications, such as if you’re forced to exercise earlier than intended.

Confirm Transferability

If you’d like to transfer the shares, you need to ensure that the agreement allows you to do so. Check if any approvals are required prior to transferring shares or if there are limitations. If anything is vague, that’s a red flag.

Check the Governing Law

The governing law and jurisdiction clause is important because rules vary in different places. If there’s a dispute with the other party, this section of the agreement will also play a role by determining how to resolve them.

Ensure You Understand Everything

One of the most important things to do when reviewing the contract is to check that you understand all terms and clauses. If there’s anything unclear or confusing, you should discuss it with the other party so that you gain clarity.

Should You Request a Legal Review of Your Warrant Agreement from a Lawyer?

Although you might think you don’t need to hire a lawyer for a review of your warrant agreement, it’s advisable. A lawyer doesn’t just read through the contract during a review. They will identify things that most people will miss, such as hidden risks. These include one-sided terms that favor the other party.

Other ways in which a lawyer can help you by reviewing your contract include the following:

  • They’ll check all your duties and rights to protect you against future disputes that can be time-consuming and expensive.
  • They’ll translate legal language that can be challenging to understand so that you have clarity about the entire agreement.
  • They’ll think about future consequences. For example, they’ll identify potential losses if there is an acquisition or other situation.
  • They’ll negotiate for a more balanced and favorable agreement. A lawyer can suggest specific revisions, push back on any unfair terms, and use their knowledge of what can be negotiated for a successful outcome.
  • They’ll ensure the agreement complies with all relevant laws so that it’s enforceable.
  • They’ll consider the agreement against market standards, since they have years of experience in reviewing these and other contracts.
  • They’ll interpret vague or broad language that can be misleading or cause you issues later.

By having a thorough legal review, you’ll get peace of mind that you’re accepting fair, reasonable, and enforceable terms to protect your interests.

Where to Get a Legal Review of Your Warrant Agreement

If you would like to work with a lawyer for a legal review of your agreement, you should look for a professional lawyer on an online legal platform like ContractsCounsel. This is one of the largest online legal marketplaces that connects clients with lawyers who have been vetted on the platform. All lawyers on the platform are qualified and have years of experience in helping clients with contract review and drafting.

To request a review of your warrant agreement, here are the easy steps to follow.

1. Go to the ContractsCounsel marketplace. Post your project for free, including a few details of what you require.

2. Wait to receive lawyer bids. You’ll receive multiple bids from lawyers on the platform who can assist you.

4. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, years of experience, field of expertise, and client ratings.

5. Select the best lawyer for your purposes and hire them.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


Meet some of our Lawyers

Dimitry K. on ContractsCounsel
View Dimitry
5.0 (1)
Member Since:
November 14, 2023

Dimitry K.

Managing Partner
Free Consultation
Philadelphia
18 Yrs Experience
Licensed in NJ, PA
Rutgers School of Law-Camden

Prior to becoming an attorney, Mr. Dimitry Alexander Kaplun had been involved with many industries and professions, and helped manage, create, and advise a wide range of businesses around the world. While at Drexel University as a computer science major, he became an NASD licensed representative and was employed by Fortune 100 insurance companies, including Prudential, AIG, and NY Life, first specializing in financial investments for life and annuity products, and then expanding his expertise to mutual finds, stocks, environmental insurance, and real property. Due to his technical expertise and a clear understanding of business rules, he was soon brought on board to help assist those companies with coding their interface for the Y2K switch. Soon after switching his major to business, Mr. Kaplun worked for a telecommunication service company first in quality assurance and then as a database programmer and developer, with sole and exclusive responsibilities for a multitude of warehouses located around the continental United States. Working on-site and from the company headquarters, he was responsible for streamlining processes for internal departments while fulfilling the quickly changing needs to the company clients, most notably Verizon Wireless. Mr. Kaplun opened his practice in 2008. Prior to starting his practice, he worked as a paralegal instructor for Prism Career Institute, creating the lesson plans for the whole program and focusing his instruction on substantive and procedural laws for general practitioners. Mr. Kaplun also worked as an associate for The Law Office of Keith Owen Campbell PC, focusing on Family and Matrimonial Law, and assisted the law firm of Jeffrey Neu and Associates in securities research as well as various contact and sales agreements, mainly online reseller agreements. He currently focuses his energy on representing individuals and companies in liability insulation, contracts and business agreements, and other legal concerns that crop up in the regular operation of doing business.

Muhammad Yar L. on ContractsCounsel
View Muhammad Yar
5.0 (1)
Member Since:
November 16, 2023

Muhammad Yar L.

Business Lawyer
Free Consultation
Pakistan
8 Yrs Experience
Licensed in NY
University of London

I am Muhammad, a legal counsel, technology law advisor, and corporate and commercial law expert, licensed to practice in New York State. I graduated from University of London and Georgetown Law Center and have about 7 years of experience in corporate and commercial law. As a As a technology law advisor, I possess deep insights into SaaS agreements, master service agreements, master subscription agreements, and SaaS Agreements, among others.

Recent  ContractsCounsel Client  Review:
5.0

"Mr. Muhammad takes the time to read your work submission and understand your legal needs. Many attorneys will copy and paste template documents without applying customized and meaningful legal advice. Mr. Muhammad spent the time to craft customized components for our legal documents and ensured that our needs were met. When I was deciding to pick an attorney for our project, I had slight trepidation that he was based in Pakistan. That trepidation was unfounded as he is a fully licensed attorney for the state of New York and, moreover, produces better work than many attorneys that I’ve interacted with based in the US. I would highly recommend using Mr. Muhammad for your next legal project!"

Taren C. on ContractsCounsel
View Taren
5.0 (4)
Member Since:
December 4, 2023

Taren C.

Attorney
Free Consultation
Royal Palm Beach, Florida
6 Yrs Experience
Licensed in FL
Nova Southeastern University

The Castro Law Firm, located in Royal Palm Beach, Florida, provides a range of legal services to clients that focus on probate, estate plannnig and guardianship matters. Our staff is fluent in Spanish. We offer free consultations and virtual appointments.

Recent  ContractsCounsel Client  Review:
5.0

"Excellent attention and response to questions and and problem identification."

Kenneth G. on ContractsCounsel
View Kenneth
4.9 (9)
Member Since:
November 25, 2023

Kenneth G.

Partner
Free Consultation
Washington, DC
19 Yrs Experience
Licensed in DC, PA
Georgetown University

Kenneth E. Gray, Jr. is a business and tax attorney who advises entrepreneurs, investors, and closely held companies on transactions, tax planning, disputes, and long-term wealth structuring. He focuses on helping clients make legally sound decisions that also make business sense. Ken’s practice includes business formation and restructuring, mergers and acquisitions, private investments and fundraising transactions, contract drafting and negotiation, and cross-border matters. He also maintains a significant tax practice, advising on federal and state structuring, specialty filings (including partnership, corporate, and non-resident matters), and representing clients in disputes before the U.S. Tax Court and other federal and state tribunals. In addition to his transactional work, Ken handles commercial and business litigation, including tax controversies, financial disputes, and partnership matters. His litigation experience informs how he structures deals and governance documents, with an eye toward preventing disputes before they arise. Ken also advises individuals and families on estate planning, trust formation, tax-efficient wealth transfer strategies, and probate administration, including planning involving closely held businesses and foreign assets. Before practicing law, Ken worked in banking and private equity, including managing a $5 billion emerging markets fund-of-funds portfolio at the U.S. Overseas Private Investment Corporation (OPIC) and serving in equity research at ABN AMRO. That financial background allows him to understand transactions from both the legal and capital perspective. He holds a J.D. from Georgetown University Law Center and an MBA from Yale University. He practices before the U.S. Tax Court, various state courts, and other federal courts.

Recent  ContractsCounsel Client  Review:
5.0

"It is not easy to find a lawyer that knows Offshore Asset Protection Trusts, which own a foreign LLC, which owns a USA LLC. Fines could reach $100K if the tax forms are incorrect, or not filed. He was able to review my draft returns and provide memos with required changes (many, many changes), after 1 follow-up everything was basically done other than a few tiny edits. I really appreciated how he worked me in, right in the busiest time of tax season, to ensure there were no errors. Would definitely hire again."

Francine L. on ContractsCounsel
View Francine
Member Since:
November 15, 2023

Francine L.

Legal Counsel
Free Consultation
New York, New York
38 Yrs Experience
Licensed in NY
Quinnipiac University School of Law

I am a multi-degreed attorney with more than 17 years of criminal trial experience and more than 15 as a general legal consultant. I'm licensed to practice in New York State.

Jana B. on ContractsCounsel
View Jana
Member Since:
November 21, 2023

Jana B.

Commercial & Privacy Lawyer
Free Consultation
San Francisco
20 Yrs Experience
Licensed in CA
Universtiy of San Francisco

I am a Silicon Valley tech lawyer with over 13 years of in-house experience and additional years in BigLaw. I provide tech licensing, data privacy, employment, international expansion, go to market, and other corporate and commercial legal services to clients in software, SaaS, bio-tech, cryptocurrency, financing, and construction business. I currently run my own practice concentrating on transactional, commercial, corporate or employment matters. Prior to starting my own practice, I joined as the first in-house counsel to lead the global legal strategy to bring tech products to market, increase revenue, decrease exposure to risk, and raise venture funding for HashiCorp Inc., currently an unicorn technology company with evaluation over $5 billion and venture funding over $350 million; Sysdig Inc., a technology company with venture funding of $195 million; and Anaplan Inc., currently a publicly traded company on the US Stock Market. Furthermore, I acted as in-house counsel advising leading technology enterprise companies such as HP, VMware, and Genentech and currently act as member of strategic advisory boards to several technology companies located globally

Andrew R. on ContractsCounsel
View Andrew
Member Since:
November 28, 2023

Andrew R.

Staff Attorney
Free Consultation
New York, NY
4 Yrs Experience
Licensed in NY
Benjamin N. Cardozo School of Law, Yeshiva University

I'm a tenants rights attorney based (and licensed) in New York. My expertise includes filing complaints and responsive pleadings as well as reviewing leases and contracts and motion practice.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Warrant Agreement?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Business Lawyers
WARRANT AGREEMENT REVIEW LAWYERS BY CITY
See All Warrant Agreement Review Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city