Warrant, dated as of January 24, 2011



 Exhibit 10.3 
 THIS WARRANT MAY NOT BE TRANSFERRED EXCEPT AS OTHERWISE DESCRIBED BELOW. 
 THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. 

Warrant No. CSW-100     
 DAYSTAR TECHNOLOGIES, INC. 
 VOID AFTER 5:00 P.M. PST ON January 23,
2016 
 Warrant to Purchase 193,550 Shares 
 of Common Stock Dated January 24, 2011 
 WARRANT FOR THE PURCHASE OF SHARES
OF COMMON STOCK 
 THIS CERTIFIES THAT, FOR VALUE RECEIVED, Michael Moretti, or his registered assign(s) (the
“Holder”), is entitled to purchase from Daystar Technologies, Inc., a Delaware corporation (the “Company”), subject to the terms and conditions set forth in this Warrant, up to 193,550 fully paid and nonassessable
shares of common stock (“Common Stock”), of the Company, at any time commencing on the date hereof (the “Commencement Date”) and expiring at 5:00 p.m. PST, on January 23, 2016 (the “Expiration
Date”). The price for each share of Common Stock purchased hereunder (as adjusted as set forth herein, collectively the “Warrant Shares”) is $1.55 per share until expiration of this Warrant (as adjusted as set forth herein,
the “Purchase Price”). 
 The Holder agrees with the Company that this Warrant is issued, and all the rights hereunder shall be
held, subject to all of the conditions, limitations and provisions set forth herein. 
 1. EXERCISE OF WARRANT. 

A. MANNER OF EXERCISE. Except as set forth in Section 1(D), this Warrant may be exercised in whole at any time, or in part
from time to time, during the period commencing on the sixth month anniversary of the Commencement Date and expiring on the Expiration Date or, if any such day is a day on which banking institutions in the City of San Francisco, California, are
authorized by law to close, then on the next succeeding day that shall not be such a day, by presentation and surrender of this Warrant to the Company at its principal 







 
office with the Purchase Form attached as Annex I (the “Purchase Form”) duly executed and accompanied by payment (either in cash or by certified or official bank check,
payable to the order of the Company) of the Purchase Price for the number of shares specified in the Purchase Form and instruments of transfer, if appropriate, duly executed by the Holder or its duly authorized attorney. 

B. STATUS AS HOLDER OF WARRANT SHARES; TAXES; EXPIRATION. Upon receipt by the Company of this Warrant, the duly executed Purchase
Form and any other appropriate instruments of transfer, together with the Purchase Price, at its office, the Holder shall be deemed to be the holder of record of the Warrant Shares issuable upon such exercise, notwithstanding that the stock transfer
books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder. The Company shall pay any and all documentary stamp or similar issue taxes payable in respect of the
issue or delivery of Warrant Shares. This Warrant shall become void, and all rights hereunder shall cease, at the close of business on the Expiration Date. The Company in its sole discretion may extend the duration of this Warrant by delaying the
Expiration Date. 
 C. ISSUANCE OF CERTIFICATES. As soon as practicable after the exercise of all or any portion of this
Warrant, the Company shall, within three (3) Trading Days (defined below), (i) issue to the Holder a certificate or certificates for the number of full Warrant Shares to which the Holder is entitled, or, at the Holder’s request,
deliver such Warrant Shares electronically if such means is otherwise presently available to and utilized by the Company, registered in such name or names as may be directed by the Holder, and (ii) if this Warrant has not been exercised in
full, issue to the Holder a new countersigned warrant in substantially the same form for the Warrant Shares as to which this Warrant shall not have been exercised. This Warrant may not be exercised by, or securities issued to, any Holder in any
state in which such exercise would be unlawful. 
 D. SHAREHOLDER APPROVAL. The Company shall not be obligated to issue
any shares of Common Stock upon exercise of this Warrant if the issuance of such shares of Common Stock under this Warrant would cause the Company to issue shares in excess of 19.99% of the Company’s then outstanding shares (the “Exchange
Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules of the Nasdaq Capital Market for issuances of shares of Common Stock in
excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval is not required. Unless and until such approval or written opinion is obtained, the Holder shall not be issued shares of Common Stock
in an amount greater than the Exchange Cap. 
 2. RESERVATION OF SHARES. The Company will at all times reserve for issuance and delivery
upon exercise of this Warrant all Warrant Shares or other shares of capital stock of the Company (and other securities and property) from time to time receivable upon exercise of this Warrant. All such shares (and other securities and property)
shall be duly authorized and, when issued upon such exercise, shall be validly issued, fully paid and nonassessable and free of all preemptive rights. 

  
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 3. NO FRACTIONAL SHARES. No fractional shares or scrip representing fractional shares shall be issued
upon the exercise of this Warrant. If the holder of this Warrant would be entitled, upon the exercise of this Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, purchase such fractional interest, determined
as follows: 
  

	 	(a)	If the Common Stock is listed on a national securities exchange (which includes the Nasdaq Capital Market) or admitted to unlisted trading privileges on such exchange
or listed for trading on the OTC Bulletin Board, the current value shall be the last reported sale price of the Common Stock on such exchange on the last business day prior to the date of exercise of this Warrant or if no such sale is made on such
day, the average of the closing bid and asked prices for such day on such exchange; or 

  

	 	(b)	If the Common Stock is not listed or admitted to unlisted trading privileges, the current value shall be the mean of the last reported bid and asked prices reported by
the National Quotation Bureau, Inc. on the last business day prior to the date of the exercise of this Warrant; or 

  

	 	(c)	If the Common Stock is not so listed or admitted to unlisted trading privileges and bid and asked prices are not so reported, the current value shall be an amount
determined (i) in good faith by the Board of Directors of the Company and certified in a Board resolution, based on the most recently completed arm’s-length transaction between the issuer of such security and a Person other than an
affiliate of such person, the closing of which occurred on such date or within the six- month period preceding such date, or (ii) if no such transaction has occurred on such date or within such six-month period, the value of the security as
determined by an independent financial expert. 

 4. STOCK DIVIDENDS; SPLIT-UPS. If after the issuance of this Warrant, and
subject to the provisions herein the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or other similar event, then, on the effective day
thereof, the number of Warrant Shares shall be increased in proportion to such increase in outstanding shares and the then applicable Purchase Price shall be correspondingly decreased. 
 5. AGGREGATION OF SHARES. If after the date hereof, and subject to the provisions herein, the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse
stock split, or reclassification of shares of Common Stock or other similar event, then, after the effective date of such consolidation, combination or reclassification, the number of Warrant Shares shall be decreased in proportion to such decrease
in outstanding shares and the then applicable Purchase Price shall be correspondingly increased. 
 6. REORGANIZATION, ETC. If after the
date hereof any capital reorganization or reclassification of the Common Stock, or consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its assets to another corporation or other similar event
shall be effected, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, lawful and fair provision shall be made whereby the registered 

  
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 holders shall thereafter have the right to purchase and receive, upon the basis and upon the terms and
conditions specified in this Warrant and in lieu of the securities of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such shares of stock, securities or assets as may be issued or
payable with respect to or in exchange for the number of outstanding shares of such Common Stock equal to the number of shares of Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented by this
Warrant, had such reorganization, reclassification, consolidation, merger, or sale not taken place and in such event appropriate provision shall be made with respect to the rights and interests of the registered holders to the end that the
provisions hereof (including, without limitation, provisions for adjustments of the Purchase Price and the Warrant Shares) shall thereafter be applicable, as nearly as may be in relation to any share of stock, securities or assets thereafter
deliverable upon the exercise hereof. The Company shall not effect any such consolidation, merger or sale unless prior to the consummation thereof the successor corporation (if other than the Company) resulting from such consolidation or merger, or
the corporation purchasing such assets, shall assume by written instrument executed and delivered to the Company the obligation to deliver to the registered holders such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holders may be entitled to purchase. 
 7. FORM OF WARRANT. This Warrant need not be changed because of any adjustment
pursuant to the terms herein, and any form of warrant issued after such adjustment may state the same Purchase Price and the same number of shares as is stated in this Warrant. However, the Company may at any time in its sole discretion make any
change in the form of this Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any warrant thereafter issued, whether in exchange or substitution for this Warrant or otherwise, may be in the form as so
changed. The Company agrees to notify the Holder of any adjustment to the number of shares or Purchase Price of the Warrant, any changes to the form of this Warrant or any other change pursuant to the terms herein. 

8. TRANSFER OF WARRANTS. This Warrant and the Warrant Shares have not been registered under the 1933 Act or similar state laws. This Warrant and
Warrant Shares cannot be sold or transferred by an investor unless (i) they are so registered or (ii) an exemption from registration is available at the time of transfer and, if requested by the Company, an opinion of counsel satisfactory
to the Company to the effect that such registration is not required is delivered to the Company. Subject to the foregoing limitations, the Company shall register the transfer, from time to time, of this Warrant upon the Company’s warrant
register, upon surrender of this Warrant for transfer, accompanied by a duly executed Assignment Form in the form attached as Annex II, with signatures properly guaranteed as indicated. Upon any such transfer, a new warrant or warrants
representing the aggregate number of this Warrant shall be issued and this Warrant shall be cancelled by the Company. 
 A restrictive legend
shall be placed upon each share certificate acquired upon exercise of this Warrant in substantially the following form: 
 THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AMENDED, OR ANY STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED,


  
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HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF (I) SUCH REGISTRATION OR (II) AN EXEMPTION THEREFROM AND, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. 
 The foregoing legend will be removed from the certificates representing any Warrant Shares, at the request of the holder thereof, at such time as they become the subject of an effective resale
registration statement or they become eligible for resale pursuant to Rule 144 under the 1933 Act. 
 9. NO RIGHTS AS STOCKHOLDERS. Prior
to the exercise of this Warrant in accordance with the terms hereof and payment of the full exercise price therefor, the Holder will not be entitled to any rights by virtue hereof as a stockholder of the Company, including, without limitation, the
right to vote or to receive dividends or other distributions, to exercise any preemptive rights, to consent or to receive notice as stockholders of the Company in respect to the meetings of stockholders or the election of directors of the Company or
any other matter. 
 10. LOST, STOLEN, MUTILATED OR DESTROYED WARRANTS. If this Warrant is lost, stolen, mutilated, or destroyed, the
Company may on such terms as to indemnity or otherwise as it may in its discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new warrant of like denomination, tenor, and date. Any such new
warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone. 

11. GOVERNING LAW. This Warrant shall be governed by and construed in accordance with the laws of New York State without giving effect to
conflicts of laws principles that would require the application of the law of another jurisdiction. 

  
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 12. NOTICES OF CERTAIN ACTIONS. In the event: 

 

	 	(a)	the Company sets a record date with respect to the holders of Common Stock for the purpose of entitling or enabling them to receive any dividend or other distribution,
or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; 

  

	 	(b)	the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or other
similar event; 

  

	 	(c)	the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split, or reclassification of shares of Common Stock or
other similar event; 

  

	 	(d)	of any capital reorganization or reclassification of the Common Stock, or consolidation or merger of the Company with another corporation, or the sale of all or
substantially all of its assets to another corporation or other similar event; 

  

	 	(e)	of the voluntary or involuntary dissolution, liquidation or winding-up of the Company; 


 

	 	(f)	the bankruptcy whether voluntary or involuntary of the Company; 

 then, and in each such case, the Company will provide written notice (an “Event Notice”) to the Holder at least ten days prior to (i) the record date in the case of (a) above,
specifying the record date and the amount and character of such dividend, distribution or right, and (ii) the effective date of any event specified in clause (b), (c), (d), (e), of (f) above, specifying the effective date on which such
event is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock will be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such event, if applicable. Any
failure to mail an Event Notice required by this Section 12 or any defect therein or in the mailing thereof will not affect the validity of the corporate action required to be specified in such Event Notice. Nothing herein shall prohibit the
Holder from exercising this Warrant during the ten day period commencing on the date of an Event Notice, provided that such exercise occurs prior to the Expiration Date and the Holder otherwise complies with the terms hereof. 

  
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 13. DELIVERY OF NOTICE. Notices and other communications to be given to the Holder of this Warrant
evidenced by this certificate shall be deemed to have been sufficiently given, if delivered or mailed, addressed in the name and at the address of such owner appearing on the records of the Company, and if mailed, sent registered or certified mail,
postage prepaid. Notices or other communications to the Company shall be deemed to have been sufficiently given if delivered by hand or mailed, by registered or certified mail, postage prepaid, to the Company at 1010 South Milpitas Boulevard,
Milpitas, California 95035, Attn: Mr. Magnus Ryde, Chief Executive Officer, or at such other address as the Company shall have designated by written notice to the registered owner as herein provided. Notice by mail shall be deemed given when
deposited in the United States mail as herein provided. 
 [Remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, manually or in
facsimile, by the undersigned thereunto duly authorized, as of the date first written above. 
  

					
	DAYSTAR TECHNOLOGIES, INC.
		
	By:	 	/s/ Magnus Ryde
		 	Name:	 	Magnus Ryde
		 	Title:	 	Chief Executive Officer


 [SIGNATURE
PAGE TO WARRANT] 







 ANNEX I 
 TO COMMON STOCK PURCHASE WARRANT 
 PURCHASE FORM 

 

			
	To:                    	  	Dated:                    


The undersigned, pursuant to the provisions set forth in the attached Warrant (No.
            ) (the “Warrant”), hereby irrevocably elects to purchase
                    shares of the Common Stock covered by such Warrant. 
 The undersigned herewith makes payment of the full exercise price for such shares at the price per share provided for in such Warrant, which is
$            in lawful money of the United States. 
 IF PAYMENT FOR
ANY OF THE SHARES TO BE ISSUED HEREUNDER IS PURSUANT TO THE CASHLESS EXERCISE PROVISION IN SECTION 1(B) OF THE WARRANT, PLEASE PROVIDE THE FOLLOWING INFORMATION: 
 Number of Warrant Shares to be purchased under this Warrant:              

Closing Price per share of Common Stock on the Trading Day before this Purchase Form and the Warrant are surrendered:
$            as of             , 20        * 

Number of shares of Common Stock to be issued to the undersigned pursuant to the purchase described herein based upon the calculation in
Section 1(B) of the Warrant:            * 
 * Note: The
undersigned understands that this information is provided by the undersigned solely for informational purposes, and that it is not binding on the Company for any purpose. The terms of the Warrant, and not this Purchase Form, will govern the
calculation of these items and the actual number of shares of Common Stock to be received by the undersigned pursuant to the purchase of shares of Common Stock hereunder. 
 Capitalized terms used but not defined herein have the meaning assigned to such terms in the Warrant. 
  

			
	[Name]
		
		 	 
	Name:	 	 
	Title:	 	 
	Address:	 	 


 [ANNEX I TO WARRANT]








 ANNEX II 
 TO COMMON STOCK PURCHASE WARRANT 
 ASSIGNMENT FORM 

FOR VALUE RECEIVED,
                                         
       hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant (No.             ) with respect to the number of
shares of Common Stock covered thereby set forth below, unto: 
  

									
	 Name of Assignee
	  	Address	 	  	No. of Shares	 
		  				  			
		  				  			
		  				  			
		  				  			
		  				  			


Dated:                     

 

	
	[Name]
	
	  
	Name:
	Title:


 Signature Guaranteed: 

 

			
		
	By:	 	 

 The signature should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934. 

[ANNEX II TO WARRANT]