This is a template warrant to be issued in connection with the sale of debt or equity securities in a private company. Penny warrants are often used in private placements relating to venture capital or private fund transactions. This template includes practical guidance, drafting notes, and alternate clauses. A penny warrant provides the potential for additional return on an investment by allowing the holder to purchase either additional securities of the type initially sold or (more likely) shares of the issuer's common stock at a nominal price (usually $0.01) for some length of time (called the exercise period). For a full listing of related private equity and asset acquisition content, see Private Equity Transactions Resource Kit and Asset Acquisition Resource Kit. For additional information on private placements and templates that may be used in private placements, see Private Placements Resource Kit. For templates of warrants in different contexts, see Warrant Agreement (IPO), ...