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Ex-10.42
Form of Warrant issued by the Company to Richard Sellers dated July 1, 2000


                                  EXHIBIT 10.42


THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") OR STATE SECURITIES OR BLUE SKY LAWS AND MAY
NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED OR ASSIGNED FOR VALUE,
DIRECTLY OR INDIRECTLY, NOR MAY THE SECURITIES BE TRANSFERRED ON THE BOOKS OF
THE CORPORATION, WITHOUT REGISTRATION OF SUCH SECURITIES OR AN EXEMPTION FROM
SUCH REGISTRATION UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                               TELEGEN CORPORATION

                         COMMON STOCK PURCHASE WARRANT

                             VOID AFTER JULY 1, 2003


1.      NUMBER AND PRICE OF SHARES SUBJECT TO WARRANT. Subject to the terms and
        conditions set forth herein, Richard Sellers is entitled to purchase
        from TELEGEN CORPORATION, a California corporation (the "Company"), at
        any time after July 1, 2000, from the date of issuance hereof and on or
        before the date of termination of this Warrant provided for in Section 2
        hereof, up to 125,000 shares of fully paid and non-assessable Common
        Stock of the Company (the "Warrant Stock"), for a per-share purchase
        price of $1.75 (the "Warrant Price"). This Warrant is issued as
        consideration for the performance of services pursuant to an agreement
        between the Company and the holder hereof.

2.      TERMINATION. This Warrant (and the right to purchase securities upon
        exercise hereof) shall terminate upon the earliest of (i) THREE (3)
        years from the date of issuance hereof; or (ii) the closing of an
        acquisition of all or substantially all of the assets or capital stock
        of the Company by another entity for cash. The Company shall give the
        holder of this Warrant written notice of such sale, merger or
        consolidation at least TWENTY (20) and no more than NINETY (90) days
        prior to the closing of any such sale, merger or consolidation.

3.      NO ADJUSTMENTS. No adjustment on account of dividends or interest on
        Warrant Stock will be made upon the exercise hereof.

4.      NO FRACTIONAL SHARES. No fractional shares of Warrant Stock will be
        issued in connection with any subscription hereunder. In lieu of any
        fractional shares which would otherwise be issuable, the Company shall
        pay cash equal to the product of such fraction multiplied by the fair
        market value of one share of Warrant Stock on the date of exercise, as
        determined in good faith by the Company's Board of Directors.

5.      NO STOCKHOLDER. This Warrant shall not entitle its holder to any of the
        rights of a shareholder of the Company.

6.      RESERVATION OF STOCK. The Company covenants that during the period this
        Warrant is exercisable, the Company will reserve from its authorized and
        unissued Common Stock a sufficient number of shares to provide for the
        issuance of Warrant Stock upon the exercise of this Warrant. The Company
        agrees that its issuance of this Warrant shall constitute full authority
        to its officers who are charged with the duty of executing stock
        certificates to execute and issue the necessary certificates for shares
        of Warrant Stock upon the exercise of this Warrant.

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7.      PROCEDURE FOR EXERCISE OF WARRANT. This Warrant may be exercised by the
        registered holder or its registered assigns, in whole or in part, by the
        surrender of this Warrant at the principal office of the Company,
        accompanied by payment in full of the Warrant Price in cash or by check.
        Upon partial exercise hereof, a new warrant or warrants containing the
        same date and provisions as this Warrant shall be issued by the Company
        to the registered holder for the number of shares of Warrant Stock with
        respect to which this Warrant shall not have been exercised. A Warrant
        shall be deemed to have been exercised immediately prior to the close of
        business on the date of its surrender for exercise as provided above,
        and the person entitled to receive the shares of Warrant Stock issuable
        upon such exercise shall be treated for all purposes as the holder of
        such shares of record as of the close of business on such date. As
        promptly as practicable on or after such date, the Company shall issue
        and deliver to the person or persons entitled to receive the same a
        certificate or certificates for the number of full shares of Warrant
        Stock issuable upon such exercise, together with cash in lieu of any
        fraction of a share as provided above.

8.      ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES. The number and kind of
        securities issuable upon the exercise of this Warrant shall be subject
        to adjustment from time to time and the Company agrees to provide notice
        upon the happening of certain events as follows:

(a)     ADJUSTMENT FOR RECLASSIFICATION OR REORGANIZATION. In case of any
        reclassification or change of the outstanding Common Stock of the
        Company or of any reorganization of the Company during the term of this
        Warrant (other than a merger of the Company with and into another
        corporation), then and in each such case the Company shall give the
        holder of this Warrant at least TWENTY (20) days notice of the proposed
        effective date of such transaction, and the holder of this Warrant, upon
        the exercise hereof at any time after the consummation of such
        reclassification, change or reorganization, shall be entitled to
        receive, in lieu of the Warrant Stock receivable upon the exercise
        hereof prior to such consummation, the stock or other securities or
        property to which such holder would have been entitled upon such
        consummation if such holder had exercised this Warrant immediately prior
        thereto, all subject to further adjustment as provided in this Section
        8. The terms of this Section 8 shall similarly apply to successive
        reclassifications, changes or reorganizations.

(b)     STOCK SPLITS AND REVERSE STOCK SPLITS. If at any time during the term of
        this Warrant the Company shall subdivide its outstanding shares of
        Common Stock into a greater number of shares, the Warrant Price in
        effect immediately prior to such subdivision shall thereby be
        proportionately reduced and the number of shares receivable upon
        exercise of the Warrant shall thereby be proportionately increased; and,
        conversely, if at any time on or after the date hereof the outstanding
        number of shares of Common Stock shall be combined into a smaller number
        of shares, the Warrant Price in effect immediately prior to such
        combination shall thereby be proportionately increased and the number of
        shares receivable upon exercise of this Warrant shall thereby be
        proportionately decreased.

9.      CERTIFICATE OF ADJUSTMENT. Whenever the Warrant Price or the number or
        type of securities issuable upon exercise of this Warrant is adjusted,
        as herein provided, the Company shall promptly deliver to the record
        holder of this Warrant a certificate of an officer of the Company
        setting forth the nature of such adjustment and a brief statement of the
        facts requiring such adjustment.

10.     NO DILUTION OR IMPAIRMENT. The Company covenants that it shall not, by
        amendment of its Articles of Incorporation or through any
        reorganization, consolidation, merger, transfer of assets, dissolution,
        issue or sale of securities or any other voluntary action, avoid or seek
        to avoid the observance or performance of any of the terms of this
        Warrant, but shall at all times in good faith assist in carrying out all
        those terms and in taking all actions necessary or appropriate to
        protect the rights of the holder of this Warrant against dilution or
        other impairment. Without limiting the generality of the above
        provision, the Company will take all necessary or appropriate action in
        order that the Company may validly and legally issue fully paid and
        nonassessable shares upon the exercise of this Warrant.

11.     TRANSFER OF WARRANT. This Warrant may not be transferred or assigned
        without the consent of the Company. The Warrant Stock may not be
        transferred or assigned, in whole or in part, by the holder hereof
        without
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        compliance with applicable federal and state securities laws. The rights
        and obligations of the Company and the holders of this Warrant shall be
        binding upon and benefit the successors, assignors, heirs,
        administrators and transferees of the parties. Any transferee hereof
        agrees to be bound by the restrictions set forth herein.

12.     COMPLIANCE WITH SECURITIES LAWS.

(a)     The holder represents and agrees that this Warrant (and the Warrant
        Stock, if the Warrant is exercised), are purchased only for investment,
        for the holder's own account, and without any present intention to sell
        or distribute the Warrant or the Warrant Stock.

(b)     The holder of this Warrant acknowledges and agrees that this Warrant and
        the Warrant Stock issuable upon exercise of the Warrant and the shares
        of Common Stock issuable upon conversion of the Warrant (the
        "Securities") have not been registered under the Securities Act and
        accordingly will not be transferable except as permitted under the
        various exemptions contained in the Securities Act, or upon satisfaction
        of the registration requirements of the Securities Act. Therefore, the
        Securities must be held pursuant to Rule 144 of the Securities Act
        unless they are subsequently registered under the Securities Act or an
        exemption from such registration is available. Holder understands that
        the certificate evidencing the Securities will be imprinted with a
        legend which prohibits the transfer of the Securities unless they are
        registered or unless the Company receives an opinion of counsel
        reasonably satisfactory to the Company that such registration is not
        required. Holder is aware of the provisions of Rule 144 under the
        Securities Act. Holder understands that a stop transfer instruction will
        be in effect with respect to transfer of Securities consistent with the
        requirements of the securities laws.

13.     MISCELLANEOUS. This Warrant shall be governed by the laws of the State
        of California. The headings in this Warrant are for purposes of
        convenience and reference only, and shall not be deemed to constitute a
        part hereof. Neither this Warrant nor any term hereof may be changed,
        waived, discharged or terminated orally but only by an instrument in
        writing signed by the Company and the registered holder hereof. All
        notices and other communications from the Company to the holder of this
        Warrant shall be mailed by first-class registered or certified mail,
        postage prepaid, to the address furnished to the Company in writing by
        the last holder of this Warrant who shall have furnished an address to
        the Company in writing.

        ISSUED this 1st day of July 2000.

        TELEGEN CORPORATION

        By:

       /s/ JESSICA L. STEVENS

       Jessica L. Stevens
       President/CEO


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