Canadian Superior Energy (SNG)

[lightbeam]

I found the answer I was looking for. They put limit on how much they will pay out. Forcing them is good.

A Bittersweet Stock Jump
One notable instance in which warrants made a big difference to the company and investors took place in the early 1980s when the Chrysler Corporation received governmentally guaranteed loans totaling approximately $1.2 billion. Chrysler used warrants, 14.4 million of them, to “sweeten” the deal for the government and solidify the loans.

Because these loans would keep the auto giant from bankruptcy, management showed little hesitation issuing what they thought was a purely superficial bonus that would never be cashed in. At the time of issuance Chrysler stock was hovering around $5, so issuing warrants with an exercise price of $13 did not seem like a bad idea. However, the warrants ended up costing Chrysler approximately $311 million, as their stock shot up to nearly $30. For the federal government, this “cherry on top” turned quite profitable, but for Chrysler it was an expensive after thought.

Conclusion
Warrants can offer a smart addition to an investor's portfolio, but due to their risky nature, warrant investors need to be attentive to market movements. This largely unused investment alternative, however, can offer the small investor the opportunity for diversity without having to compete with large, market-influencing institutions.



http://www.investopedia.com/articles/04/021704.asp?viewed=1