ex_4-3.htm


    
      

      

    

    EXHIBIT
4.3


     

     

    THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS AND HAVE BEEN TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A
VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION THEREOF.  THE
SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION AND QUALIFICATION WITHOUT, EXCEPT UNDER CERTAIN SPECIFIC LIMITED
CIRCUMSTANCES, AN OPINION OF COUNSEL FOR THE HOLDER, CONCURRED IN BY COUNSEL FOR
THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT
REQUIRED.

     

    


    STOCK
PURCHASE WARRANT

    


    BALQON
CORPORATION

     

    


     

    THIS
CERTIFIES that, for value received, __________________________________ (the
"Investor"), is entitled, upon the terms and subject to the conditions
hereinafter set forth, to subscribe for and purchase, from BALQON CORPORATION, a
California corporation (the "Company"), at any time on or after the earlier of
the (i) Maturity Date of the Note between Investor and the Company dated of even
date herewith (the “Note”), or (ii) the closing of the Merger (as those terms
are defined in the Note) upon the terms and subject to the conditions set forth
herein, from the Company, ________________ shares of Common Stock in the
Company.  The Exercise Price of one share of Common Stock under this
Warrant shall be $1.50.  If the purchase rights represented by this
Warrant are not exercised before the close of business on the day preceding the
third anniversary of the date of this Warrant, this Warrant shall be
void.

     

    The
purchase price and the number of shares for which the Warrant is exercisable
shall be subject to adjustment as provided herein.

     

    1.            
Title of
Warrant.  Prior to the expiration hereof and subject to
compliance with applicable laws, this Warrant and all rights hereunder are
transferable, in whole or in part, at the office or agency of the Company,
referred to in Section 2 hereof, by the holder hereof in person or by duly
authorized attorney, upon surrender of this Warrant together with the Assignment
Form annexed hereto properly endorsed.

     

    2.            
Exercise of
Warrant.

     

    (a)           The
purchase rights represented by this Warrant are exercisable by the Holder by the
surrender of this Warrant and the Notice of Exercise annexed hereto duly
completed and executed on behalf of the Holder, at the office of the Company (or
such other office or agency of the Company as it may designate by notice in
writing to the Holder at the address of the Holder appearing on the books of the
Company), upon payment in cash, certified check or wire transfer of funds, of
the aggregate Exercise Price for that number of Warrant Shares then being
purchased.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (b)           This
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 Common Stock issuable upon such
exercise shall be treated for all purposes as the holder of record of such
shares as of the close of business on such date.  As promptly as
practicable on or after such date and in any event within ten (10) days
thereafter, the Company at its expense shall issue and deliver to the person or
persons entitled to receive the same a certificate or certificates for the
number of shares issuable upon such exercise.  In the event that this
Warrant is exercised in part, the Company at its expense will execute and
deliver a new Warrant of like tenor exercisable for the number of shares for
which this Warrant may then be exercised.  Each exercise hereof shall
constitute the reaffirmation by the holder hereof that the representations and
warranties contained in the Amendment to the Senior Secured Convertible
Promissory Note are true and correct in all material respects with respect to
the Holder of the Warrant as of the time of such exercise.

     

    3.            
No Fractional Shares
or Scrip.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this
Warrant.  With respect to any fraction of a share called for upon the
exercise of this Warrant, an amount equal to such fraction multiplied by the
then current price at which each share may be purchased hereunder shall be paid
in cash to the holder of this Warrant.

     

    4.         
   Charges, Taxes and
Expenses.  Issuance of certificates for shares of Common Stock
upon the exercise of this Warrant shall be made without charge to the holder
hereof for any issue or transfer tax or other incidental expense in respect of
the issuance of such certificate, all of which taxes and expenses shall be paid
by the Company, and such certificates shall be issued in the name of the holder
of this Warrant or in such name or names as may be directed by the holder of
this Warrant; provided, however, that in the event certificates for shares of
Common Stock are to be issued in a name other than the name of the holder of
this Warrant, this Warrant when surrendered for exercise shall be accompanied by
the Assignment Form attached hereto duly executed by the holder hereof; and
provided further, that upon any transfer involved in the issuance or delivery of
any certificates for shares of Common Stock, the Company may require, as a
condition thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto.  The Holder of the Warrant shall be
responsible for income taxes due under federal, state, or other law, if any, if
any such tax is due.

     

    5.          
  No Rights
as Stockholders.  This Warrant does not entitle the holder
hereof to any voting rights or other rights as a stockholder of the Company
prior to the exercise thereof.  Nothing in this Warrant shall be
construed to give any person, firm or corporation (other than the Company and
the Holder of this Warrant) any legal or equitable right, remedy or claim, it
being agreed that this Warrant shall be for the sole and exclusive benefit of
the Company and the Holder of this Warrant.

     

    6.         
   Exchange and Registry of
Warrant.  This Warrant is exchangeable, upon the surrender
hereof by the registered holder at the above-mentioned office or agency of the
Company, for a new Warrant of like tenor and dated as of such
exchange.  The Company shall maintain at the above-mentioned office or
agency a registry showing the name and address of the registered holder of this
Warrant.  This Warrant may be surrendered for exchange, transfer or
exercise, in accordance with its terms, at such office or agency of the Company,
and the Company shall be entitled to rely in all respects, prior to written
notice to the contrary, upon such registry.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    7.           
 Loss, Theft,
Destruction or Mutilation of Warrant.  Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and upon
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of this Warrant, if mutilated, the Company will
make and deliver a new Warrant of like tenor and dated as of such cancellation,
in lieu of this Warrant.

     

    8.           
 Saturdays,
Sundays, Holidays, etc.  If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday or a Sunday or shall be a legal holiday, then such action
may be taken or such right may be exercised on the next succeeding day not a
legal holiday.

     

    9.           
 Transferability
and Nonnegotiability of Warrant.  This Warrant may not be
transferred or assigned in whole or in part without compliance with all
applicable federal and state securities laws by the transferor and the
transferee (including the delivery of investment representation letters and
legal opinions reasonably satisfactory to the Company, if such are requested by
the Company).  Subject to the provisions of this Warrant with respect
to compliance with the Securities Act of 1933, as amended (the “Act”), title to
this Warrant may be transferred by endorsement (by the Holder executing the
Assignment Form annexed hereto) and delivery in the same manner as a negotiable
instrument transferable by endorsement and delivery.

     

    10.           Compliance with Securities
Laws.

     

    (a)           The
Holder of this Warrant represents and warrants that this Warrant and the shares
of Common Stock to be issued upon exercise hereof are being acquired solely for
the Holder’s own account and not as a nominee for any other party, and for
investment, and that the Holder will not offer, sell or otherwise dispose of
this Warrant or any shares of Common Stock to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Act or any
state securities laws.  Upon exercise of this Warrant, the Holder
shall, if requested by the Company, confirm in writing, in a form satisfactory
to the Company, that the shares of Common Stock so purchased are being acquired
solely for the Holder’s own account and not as a nominee for any other party,
for investment, and not with a view toward distribution or resale.

     

    (b)           This
Warrant and all shares of Common Stock issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following form (in
addition to any legend required by state securities laws):

     

    THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS AND HAVE BEEN TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A
VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION THEREOF.  THE
SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION AND QUALIFICATION WITHOUT, EXCEPT UNDER CERTAIN SPECIFIC LIMITED
CIRCUMSTANCES, AN OPINION OF COUNSEL FOR THE HOLDER, CONCURRED IN BY COUNSEL FOR
THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT
REQUIRED.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    11.           Early Termination and
Reclassification.

     

    (a)           Merger, Sale of Assets,
etc.  If all or any portion of this Warrant is exercised
subsequent to a merger, consolidation, exchange of shares, reorganization, or
other similar event (“Change in Control”) occurring after the date hereof, as a
result of which shares shall be changed into cash, other property, or the same
or a different number of shares of the same or another class or classes of
securities of the Company or another entity, the Holder exercising this Warrant
shall receive, for the exercise price, the aggregate amount of cash or other
property and the aggregate number of shares and class of securities which the
Holder would have received if this Warrant was exercised immediately before the
Change in Control.  If an adjustment under this section would create a
fractional share or a right to acquire a fractional share, the fractional share
will be rounded up to, and issued as, a whole share.  If, pursuant to
a Change of Control event, the shares shall be exchanged solely for cash (in
such case, a “Triggering Event”), then the Company shall give the Holder written
notice describing the material terms and conditions of such impending
transaction not later than ten (10) days prior to the stockholders’ meeting
called to approve such transaction (or such longer period if required by the
General Corporation Law of the State of Nevada), or ten (10) days prior to the
closing of such transaction (or such longer period if required by the General
Corporation Law of the State of Nevada), whichever is earlier, and shall also
notify the holder of this Warrant of the final approval of such
transaction.

     

    (b)           Reclassification,
etc.  If the Company at any time shall, by subdivision,
combination or reclassification of securities or otherwise, change any of the
securities to which purchase rights under this Warrant exist into the same or a
different number of securities of any class or classes, this Warrant shall
thereafter be to acquire such number and kind of securities as would have been
issuable as the result of such change with respect to the securities which were
subject to the purchase rights under this Warrant immediately prior to such
subdivision, combination, reclassification or other change.  If shares
of the Company's Common Stock are subdivided or combined into a greater or
smaller number of shares of Common Stock, the purchase price under this Warrant
shall be proportionately reduced in case of subdivision of shares or
proportionately increased in the case of combination of shares and the number of
shares of Common Stock purchasable under this Warrant shall be proportionally
increased in the case of a subdivision and decreased in the case of combination,
in all cases by the ratio which the total number of shares of Common Stock to be
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

     

    (c)           Cash
Distributions.  No adjustment on account of cash dividends or
interest on the Company's Common Stock or other securities purchasable hereunder
will be made to the purchase price under this Warrant .

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d)           Authorized
Shares.  The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of Common Stock
upon the exercise of any purchase rights under this Warrant.  The
Company further covenants 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 the
Company's Common Stock upon the exercise of the purchase rights under this
Warrant.

     

    12.           Miscellaneous.

     

    (a)           Issue
Date.  The provisions of this Warrant shall be construed and
shall be given effect in all respect as if it had been issued and delivered by
the Company on the date hereof.  This Warrant shall be binding upon
any successors or assigns of the Company.  This Warrant shall
constitute a contract under the laws of the State of California and for all
purposes shall be construed in accordance with and governed by the laws of said
state.

     

    (b)           Restrictions.  The
holder hereof acknowledges that the Common Stock acquired upon the exercise of
this Warrant may have restrictions upon its resale imposed by state and federal
securities laws.

     

    (c)           Waivers and
Amendments.  Any term of this Warrant may be amended with the
written consent of the Company and the holders of warrants representing not less
than a majority of the shares of Common Stock issuable upon conversion of the
Notes issued in the Note Financing, even without the consent of the
Holder.  Any amendment effected in accordance with this Section shall
be binding upon each holder of any of the Common Stock Warrants issued pursuant
to the Note Financing, each future holder of all such Common Stock Warrants, and
the Company; provided, however, that such amendment must apply to all such
holders equally and ratably in accordance with the number of shares of Common
Stock issuable upon exercise of their Common Stock Warrants.  The
Company shall promptly give notice to all holders of Common Stock Warrants of
any amendment effected in accordance with this Section 12.

     

    (d)           Notices.  Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given as hereinafter described
(i) if given by personal delivery, then such notice shall be deemed given upon
such delivery, (ii) if given by telex, facsimile or e-mail, then such notice
shall be deemed given upon receipt of confirmation of complete transmittal,
(iii) if given by mail, then such notice shall be deemed given upon the earlier
of (A) receipt of such notice by the recipient or (B) three days after such
notice is deposited in first class mail, postage prepaid, and (iv) if given by
an internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier.  All
notices shall be addressed as follows: if to the Holder of the Warrant, at its
address as set forth in the Company’s books and records and, if to the Company,
at the address as follows, or at such other address as the Holder of the
Warrant, or the Company may designate by ten days’ advance written notice to the
other:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    If to the Company:

     

    Balqon Corporation

    ________________________________

     

    ________________________________

     

    ________________________________

     

    If to Holder:

     

    ________________________________

     

    ________________________________

     

    ________________________________

     

    (e)           Binding Agreement;
Assignment.  The terms and conditions of this Warrant shall
inure to the benefit of and be binding upon the respective successors and
permitted assigns of the parties.  Nothing in this Warrant, express or
implied, is intended to confer upon any third party any rights, remedies,
obligations, or liabilities under or by reason of this Warrant.  This
Warrant may not be assigned by Holder (other than to a Related Person) without
the prior written consent of the Company.  “Related Person” shall mean
with respect to any Holder (i) any affiliate of such person, (ii) any investment
fund, investment account or investment entity whose investment manager,
investment advisor or general partner, is such Holder or any affiliate of such
Holder or any member, partner, officer or employee of such Holder or any
affiliate of such Holder, (iii) any member or partner of any Holder specified in
clause (i) or (ii) above, and (iv) any officer or employee of any person
specified in clause (i), (ii) or (iii) above.

     

     

    (signature
page follows)

     

    
      
        
        

      

      
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      IN
WITNESS WHEREOF, BALQON CORPORATION has caused this Warrant to be executed by
its officers thereunto duly authorized.

       

      
        Dated:  ________,
2008

      

       

      
        
          	 	BALQON
      CORPORATION	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Balwinder
      Samra	 
	 	 	
                  Name:
      Balwinder Samra

                  Title: President

                	 


        

      

      
         

        
          	Name
      of Holder:	
                   

                	 	 	
                   

                	 
	 	
                   

                	 	 	
                   

                	 
	(Signature)	
                   

                	 	 	
                   

                	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Address: 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Telephone: 	 	 	 	 	 
	Facsimile:  	 	 	 	 	 


        
                                                              

    

    
      
        
        

      

      
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    NOTICE OF
EXERCISE

     

    To:           BALQON
CORPORATION

     

    (1)           The
undersigned hereby (A) elects to purchase ____________ shares of Common
Stock  of BALQON CORPORATION pursuant to the provisions of Section
2(a) of the attached Warrant, and tenders herewith payment of the purchase price
for such shares in full, or (B) elects to exercise this Warrant for the purchase
of ______ shares of Common Stock, pursuant to the provisions of Section 2(c) of
the attached Warrant.

     

    (2)           In
exercising this Warrant, the undersigned hereby confirms and acknowledges that
the shares of Common Stock to be issued upon conversion thereof are being
acquired solely for the account of the undersigned and not as a nominee for any
other party, and for investment, and that the undersigned will not offer, sell
or otherwise dispose of any such shares of Common Stock except under
circumstances that will not result in a violation of the Securities Act of 1933,
as amended, or any applicable state securities laws.

     

    (3)           In
exercising this Warrant, the undersigned hereby affirms that the representations
and warranties contained in Section 9 of the Note are true and correct in all
material respects.

     

    (4)           Please
issue a certificate or certificates representing said shares of Common Stock in
the name of the undersigned or in such other name as specified
below:

     

    
      
        
          
            	
                     

                  	 	 	
                     

                  	 
	
                     

                  	 	 	
                    (Name)

                  	 


          

           

        

        
          
            
              	
                       

                    	 	 	
                       

                    	 
	
                       

                    	 	 	
                      (Name)

                    	 


            

             

          

        

      

    

    (5)           Please
issue a new Warrant for the unexercised portion of the attached Warrant in the
name of the undersigned or in such other name as is specified
below:

     

    
      
        
          
            	
                     

                  	 	 	
                     

                  	 
	
                     

                  	 	 	
                    (Name)

                  	 


          

           

        

        
          
            
              	 	
                       

                    	 	 	
                       

                    	 
	Date	
                       

                    	 	 	
                      (Signature)

                    	 


            

             

          

        

      

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
FORM

     

    FOR VALUE
RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns
and transfers unto the Assignee named below all of the rights of the undersigned
under the within Warrant, with respect to the number of shares of Common Stock
(or Common Stock) set forth below:

     

    
      
      

      
        
          	
                  
                    Name
      of Assignee

                  

                	 	
                  
                    Address

                  

                	 	
                  
                    No.
      of Shares

                  

                
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      


        

         

      

    

    and does
hereby irrevocable constitute and appoint _______________________ Attorney to
make such transfer on the books of BALQON CORPORATION, maintained for the
purpose, with full power of substitution in the premises.

     

    The
undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof or conversion thereof are being acquired for investment and that
the Assignee will not offer, sell or otherwise dispose of this Warrant or any
shares of stock to be issued upon exercise hereof or conversion thereof except
under circumstances which will not result in a violation of the Securities Act
of 1933, as amended, or any state securities laws.  Further, the
Assignee has acknowledged that upon exercise of this Warrant, the Assignee
shall, if requested by the Company, confirm in writing, in a form satisfactory
to the Company, that the shares of stock so purchased are being acquired for
investment and not with a view toward distribution or resale.

     

    
      
        
          
            
              	Dated:	
                       

                    	 	 	
                       

                    	 
	 	
                       

                    	 	 	
                      
                         

                      

                    	 
	 	 	 	 	 	 
	 	 	 	 	Signature
      of Holder	 


            

             

             

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