Term Sheet Warrants on Currencies

I. Introduction

This Term Sheet outlines the key terms and conditions associated with the currency warrants issued by [Your Company Name]. These warrants are financial instruments that grant the holder the right to purchase a specific amount of currency at a predetermined price within a set period. This document serves as a preliminary agreement and is subject to change pending final legal review.

The purpose of this Term Sheet is to provide potential investors with a clear understanding of the parameters of the currency warrants being offered by [Your Company Name]. The final terms will be detailed in the definitive agreement, which will supersede this Term Sheet upon execution.

II. Offer Details

The following details pertain to the currency warrants issued by [Your Company Name]:

Warrant Type: Call warrant on currency
Currency Pair: [Currency Pair, e.g., USD/EUR]
Total Number of Warrants: [Total Warrants Issued]
Nominal Amount per Warrant: [Nominal Amount]

III. Key Financial Terms

The financial terms of the warrants are as follows:

Exercise Price: [Exercise Price] per currency unit
Expiration Date: [Expiration Date]
Settlement Type: [Physical or Cash Settlement]

This section is essential for investors to evaluate the financial benefits and risks associated with the warrants. Accurate and timely execution of these terms is crucial for the effectiveness and profitability of the investment.

IV. Additional Provisions

Additional terms relevant to the warrants are outlined below to ensure clear and mutually agreed-upon conditions:

Anti-Dilution Protection: Adjustments to the exercise price and number of warrants will be made in cases of significant currency revaluation or other pertinent events.
Transfer Restrictions: Warrants may be subject to restrictions on transferability until certain conditions are met, specified in the definitive agreements.
Right of First Refusal: In certain scenarios, [Your Company Name] retains the right to purchase the warrants back from the holder before they can be sold to a third party.

It is important for both parties to thoroughly review these additional provisions to understand and adhere to the terms of engagement fully.

V. Execution and Amendments

This Term Sheet is not a legal obligation but serves as a foundation for the definitive agreements. The terms outlined herein are intended for discussion purposes only and are subject to change based on mutual agreement in the final contract.

All changes to this Term Sheet must be made in writing and signed by authorized representatives of both [Your Company Name] and the warrant holder. This process ensures that all parties are informed of and agree to the modifications, maintaining transparency and trust throughout the negotiation process.