Common use of Initial Warrant Clause in Contracts

Initial Warrant. On the Closing Date, the Arrangers will be issued warrants to purchase 2% of the Conv Pref of NewCo on a fully-diluted basis as of date of exercise, at an exercise price of $0.01 per share, which will have a 7-year term from the Closing Date and will be exercisable in part or in full at any time during such term. If ECP converts its Conv Pref to common stock, such warrants shall become exercisable into common stock (or dragged into common stock if ECP coverts after the Arrangers have exercised their warrants for Conv Pref). For the avoidance of doubt, only the Arrangers shall be allocated Initial Warrants. If the Arrangers participate in the Incremental Facility, the Arrangers will be issued additional warrants on the foregoing terms to purchase an additional 0.5% of the Conv Pref of NewCo on a fully-diluted basis as of date of exercise, at an exercise price of $0.01 per share, which will have a 7-year term from the Closing Date and will be exercisable in part or in full at any time during such term.