Document:

EXHIBIT 4.4
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NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                         WESTERN POWER & EQUIPMENT CORP.

         THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for
value received, _____________ (the "Holder"), is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after the date hereof (the "Initial Exercise Date") and on or
prior to the close of business on the five year anniversary of the Initial
Exercise Date (the "Termination Date") but not thereafter, to subscribe for and
purchase from Western Power & Equipment Corp., a Delaware corporation (the
"Company"), up to ______ shares (the "Warrant Shares") of Common Stock, par
value $0.001 per share, of the Company (the "Common Stock"). The purchase price
of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

         Section 1. Definitions. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities
Purchase Agreement (the "Purchase Agreement"), dated June 8, 2005, among the
Company and the purchasers signatory thereto.

         Section 2. Exercise.

                  a) Exercise of Warrant. Exercise of the purchase rights
         represented by this Warrant may be made, in whole or in part, at any
         time or times on or after the Initial Exercise Date and on or before
         the Termination Date by delivery to the Company of a duly executed
         facsimile copy of the Notice of Exercise Form annexed hereto (or such
         other office or agency of the Company as it may designate by notice in
         writing to the registered Holder at the address of such Holder
         appearing on the books of the Company); provided, however, within 5
         Trading Days of the date said Notice of Exercise is delivered

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         to the Company, the Holder shall have surrendered this Warrant to the
         Company and the Company shall have received payment of the aggregate
         Exercise Price of the shares thereby purchased by wire transfer or
         cashier's check drawn on a United States bank.

                  b) Exercise Price. The exercise price of the Common Stock
         under this Warrant shall be $1.75, subject to adjustment hereunder (the
         "Exercise Price").

                  c) Cashless Exercise. If at any time after one year from the
         date of issuance of this Warrant there is no effective Registration
         Statement registering, or no current prospectus available for, the
         resale of the Warrant Shares by the Holder, then this Warrant may also
         be exercised at such time by means of a "cashless exercise" in which
         the Holder shall be entitled to receive a certificate for the number of
         Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)]
         by (A), where:

                  (A) = the VWAP on the Trading Day immediately preceding the
                        date of such election;

                  (B) = the Exercise Price of this Warrant, as adjusted; and

                  (X) = the number of Warrant Shares issuable upon exercise of
                        this Warrant in accordance with the terms of this
                        Warrant by means of a cash exercise rather than a
                        cashless exercise.

                  Notwithstanding anything herein to the contrary, on the
         Termination Date, this Warrant shall be automatically exercised via
         cashless exercise pursuant to this Section 2(c).

                  d) Exercise Limitations; Holder's Restrictions. A Holder shall
         not have the right to exercise any portion of this Warrant, pursuant to
         Section 2(c) or otherwise, to the extent that after giving effect to
         such issuance after exercise, such Holder (together with such Holder's
         affiliates), as set forth on the applicable Notice of Exercise, would
         beneficially own in excess of 4.99% of the number of shares of the
         Common Stock outstanding immediately after giving effect to such
         issuance. For purposes of the foregoing sentence, the number of shares
         of Common Stock beneficially owned by such Holder and its affiliates
         shall include the number of shares of Common Stock issuable upon
         exercise of this Warrant with respect to which the determination of
         such sentence is being made, but shall exclude the number of shares of
         Common Stock which would be issuable upon (A) exercise of the
         remaining, nonexercised portion of this Warrant beneficially owned by
         such Holder or any of its affiliates and (B) exercise or conversion of
         the unexercised or nonconverted portion of any other securities of the
         Company (including, without limitation, any other Debentures or
         Warrants) subject to a limitation on conversion or exercise analogous
         to the limitation contained herein beneficially owned by such Holder or
         any of its affiliates. Except as set forth in the preceding sentence,
         for purposes of this Section 2(d), beneficial ownership shall be
         calculated in accordance with Section 13(d) of the Exchange Act, it
         being acknowledged by a Holder that the Company is not representing to
         such Holder that such calculation is in compliance with Section 13(d)
         of the Exchange Act and such Holder is solely responsible for any
         schedules

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         required to be filed in accordance therewith. To the extent that the
         limitation contained in this Section 2(d) applies, the determination of
         whether this Warrant is exercisable (in relation to other securities
         owned by such Holder) and of which a portion of this Warrant is
         exercisable shall be in the sole discretion of a Holder, and the
         submission of a Notice of Exercise shall be deemed to be each Holder's
         determination of whether this Warrant is exercisable (in relation to
         other securities owned by such Holder) and of which portion of this
         Warrant is exercisable, in each case subject to such aggregate
         percentage limitation, and the Company shall have no obligation to
         verify or confirm the accuracy of such determination. For purposes of
         this Section 2(d), in determining the number of outstanding shares of
         Common Stock, a Holder may rely on the number of outstanding shares of
         Common Stock as reflected in (x) the Company's most recent Form 10-Q or
         Form 10-K, as the case may be, (y) a more recent public announcement by
         the Company or (z) any other notice by the Company or the Company's
         Transfer Agent setting forth the number of shares of Common Stock
         outstanding. Upon the written or oral request of a Holder, the Company
         shall within two Trading Days confirm orally and in writing to such
         Holder the number of shares of Common Stock then outstanding. In any
         case, the number of outstanding shares of Common Stock shall be
         determined after giving effect to the conversion or exercise of
         securities of the Company, including this Warrant, by such Holder or
         its affiliates since the date as of which such number of outstanding
         shares of Common Stock was reported. The provisions of this Section
         2(d) may be waived by such Holder, at the election of such Holder, upon
         not less than 61 days' prior notice to the Company, and the provisions
         of this Section 2(d) shall continue to apply until such 61st day (or
         such later date, as determined by such Holder, as may be specified in
         such notice of waiver).

                  e) Mechanics of Exercise.

                                    i. Authorization of Warrant Shares. The
                           Company covenants that all Warrant Shares which may
                           be issued upon the exercise of the purchase rights
                           represented by this Warrant will, upon exercise of
                           the purchase rights represented by this Warrant, be
                           duly authorized, validly issued, fully paid and
                           nonassessable and free from all taxes, liens and
                           charges in respect of the issue thereof (other than
                           taxes in respect of any transfer occurring
                           contemporaneously with such issue).

                                    ii. Delivery of Certificates Upon Exercise.
                           Certificates for shares purchased hereunder shall be
                           transmitted by the transfer agent of the Company to
                           the Holder by crediting the account of the Holder's
                           prime broker with the Depository Trust Company
                           through its Deposit Withdrawal Agent Commission
                           ("DWAC") system if the Company is a participant in
                           such system, and otherwise by physical delivery to
                           the address specified by the Holder in the Notice of
                           Exercise within 3 Trading Days from the delivery to
                           the Company of the Notice of Exercise Form, surrender
                           of this Warrant and payment of the aggregate Exercise
                           Price as set forth above ("Warrant Share Delivery
                           Date"), provided that such delivery and surrender
                           occurs before 12:00 Noon EST on such date. This
                           Warrant shall be deemed to have been exercised on the
                           date the Exercise

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                           Price is received by the Company. The Warrant Shares
                           shall be deemed to have been issued, and Holder or
                           any other person so designated to be named therein
                           shall be deemed to have become a holder of record of
                           such shares for all purposes, as of the date the
                           Warrant has been exercised by payment to the Company
                           of the Exercise Price and all taxes required to be
                           paid by the Holder, if any, pursuant to Section
                           2(e)(vii) prior to the issuance of such shares, have
                           been paid.

                                    iii. Delivery of New Warrants Upon Exercise.
                           If this Warrant shall have been exercised in part,
                           the Company shall, at the time of delivery of the
                           certificate or certificates representing Warrant
                           Shares, deliver to Holder a new Warrant evidencing
                           the rights of Holder to purchase the unpurchased
                           Warrant Shares called for by this Warrant, which new
                           Warrant shall in all other respects be identical with
                           this Warrant.

                                    iv. Rescission Rights. If the Company fails
                           to cause its transfer agent to transmit to the Holder
                           a certificate or certificates representing the
                           Warrant Shares pursuant to this Section 2(e)(iv) by
                           the Warrant Share Delivery Date, then the Holder will
                           have the right to rescind such exercise.

                                    v. Compensation for Buy-In on Failure to
                           Timely Deliver Certificates Upon Exercise. In
                           addition to any other rights available to the Holder,
                           if the Company fails to cause its transfer agent to
                           transmit to the Holder a certificate or certificates
                           representing the Warrant Shares pursuant to an
                           exercise on or before the Warrant Share Delivery
                           Date, and if after such date the Holder is required
                           by its broker to purchase (in an open market
                           transaction or otherwise) shares of Common Stock to
                           deliver in satisfaction of a sale by the Holder of
                           the Warrant Shares which the Holder anticipated
                           receiving upon such exercise (a "Buy-In"), then the
                           Company shall (1) pay in cash to the Holder the
                           amount by which (x) the Holder's total purchase price
                           (including brokerage commissions, if any) for the
                           shares of Common Stock so purchased exceeds (y) the
                           amount obtained by multiplying (A) the number of
                           Warrant Shares that the Company was required to
                           deliver to the Holder in connection with the exercise
                           at issue times (B) the price at which the sell order
                           giving rise to such purchase obligation was executed,
                           and (2) at the option of the Holder, either reinstate
                           the portion of the Warrant and equivalent number of
                           Warrant Shares for which such exercise was not
                           honored or deliver to the Holder the number of shares
                           of Common Stock that would have been issued had the
                           Company timely complied with its exercise and
                           delivery obligations hereunder. For example, if the
                           Holder purchases Common Stock having a total purchase
                           price of $11,000 to cover a Buy-In with respect to an
                           attempted exercise of shares of Common Stock with an
                           aggregate sale price giving rise to such purchase
                           obligation of $10,000, under clause (1) of the
                           immediately preceding sentence the Company shall be
                           required to pay the Holder $1,000. The Holder shall
                           provide the

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                           Company written notice indicating the amounts payable
                           to the Holder in respect of the Buy-In, together with
                           applicable confirmations and other evidence
                           reasonably requested by the Company. Nothing herein
                           shall limit a Holder's right to pursue any other
                           remedies available to it hereunder, at law or in
                           equity including, without limitation, a decree of
                           specific performance and/or injunctive relief with
                           respect to the Company's failure to timely deliver
                           certificates representing shares of Common Stock upon
                           exercise of the Warrant as required pursuant to the
                           terms hereof.

                                    vi. No Fractional Shares or Scrip. No
                           fractional shares or scrip representing fractional
                           shares shall be issued upon the exercise of this
                           Warrant. As to any fraction of a share which Holder
                           would otherwise be entitled to purchase upon such
                           exercise, the Company shall pay a cash adjustment in
                           respect of such final fraction in an amount equal to
                           such fraction multiplied by the Exercise Price.

                                    vii. Charges, Taxes and Expenses. Issuance
                           of certificates for Warrant Shares shall be made
                           without charge to the Holder 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 or in such name or names as may be directed by
                           the Holder; provided, however, that in the event
                           certificates for Warrant Shares are to be issued in a
                           name other than the name of the Holder, this Warrant
                           when surrendered for exercise shall be accompanied by
                           the Assignment Form attached hereto duly executed by
                           the Holder; and the Company may require, as a
                           condition thereto, the payment of a sum sufficient to
                           reimburse it for any transfer tax incidental thereto.

                                    viii. Closing of Books. The Company will not
                           close its stockholder books or records in any manner
                           which prevents the timely exercise of this Warrant,
                           pursuant to the terms hereof.

         Section 3. Certain Adjustments.

                  a) Stock Dividends and Splits. If the Company, at any time
         while this Warrant is outstanding: (A) pays a stock dividend or
         otherwise make a distribution or distributions on shares of its Common
         Stock or any other equity or equity equivalent securities payable in
         shares of Common Stock (which, for avoidance of doubt, shall not
         include any shares of Common Stock issued by the Company pursuant to
         this Warrant), (B) subdivides outstanding shares of Common Stock into a
         larger number of shares, (C) combines (including by way of reverse
         stock split) outstanding shares of Common Stock into a smaller number
         of shares, or (D) issues by reclassification of shares of the Common
         Stock any shares of capital stock of the Company, then in each case the
         Exercise Price shall be multiplied by a fraction of which the numerator
         shall be the number of shares of Common Stock (excluding treasury
         shares, if any) outstanding

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         immediately before such event and of which the denominator shall be the
         number of shares of Common Stock outstanding immediately after such
         event and the number of shares issuable upon exercise of this Warrant
         shall be proportionately adjusted. Any adjustment made pursuant to this
         Section 3(a) shall become effective immediately after the record date
         for the determination of stockholders entitled to receive such dividend
         or distribution and shall become effective immediately after the
         effective date in the case of a subdivision, combination or
         re-classification.

                  b) Subsequent Equity Sales. If the Company or any Subsidiary
         thereof, as applicable, at any time while this Warrant is outstanding,
         shall offer, sell, grant any option to purchase or offer, sell or grant
         any right to reprice its securities, or otherwise dispose of or issue
         (or announce any offer, sale, grant or any option to purchase or other
         disposition) any Common Stock or Common Stock Equivalents entitling any
         Person to acquire shares of Common Stock, at an effective price per
         share less than the then Exercise Price (such lower price, the "Base
         Share Price" and such issuances collectively, a "Dilutive Issuance"),
         as adjusted hereunder (if the holder of the Common Stock or Common
         Stock Equivalents so issued shall at any time, whether by operation of
         purchase price adjustments, reset provisions, floating conversion,
         exercise or exchange prices or otherwise, or due to warrants, options
         or rights per share which is issued in connection with such issuance,
         be entitled to receive shares of Common Stock at an effective price per
         share which is less than the Exercise Price, such issuance shall be
         deemed to have occurred for less than the Exercise Price on such date
         of the Dilutive Issuance), then, the Exercise Price shall be reduced
         and only reduced to equal the Base Share Price and the number of
         Warrant Shares issuable hereunder shall be increased such that the
         aggregate Exercise Price payable hereunder, after taking into account
         the decrease in the Exercise Price, shall be equal to the aggregate
         Exercise Price prior to such adjustment. Such adjustment shall be made
         whenever such Common Stock or Common Stock Equivalents are issued.
         Notwithstanding the foregoing, no adjustments shall be made, paid or
         issued under this Section 3(b) in respect of an Exempt Issuance. The
         Company shall notify the Holder in writing, no later than the Trading
         Day following the issuance of any Common Stock or Common Stock
         Equivalents subject to this section, indicating therein the applicable
         issuance price, or of applicable reset price, exchange price,
         conversion price and other pricing terms (such notice the "Dilutive
         Issuance Notice"). For purposes of clarification, whether or not the
         Company provides a Dilutive Issuance Notice pursuant to this Section
         3(b), upon the occurrence of any Dilutive Issuance, after the date of
         such Dilutive Issuance the Holder is entitled to receive a number of
         Warrant Shares based upon the Base Share Price regardless of whether
         the Holder accurately refers to the Base Share Price in the Notice of
         Exercise.

                  c) Pro Rata Distributions. If the Company, at any time prior
         to the Termination Date, shall distribute to all holders of Common
         Stock (and not to Holders of the Warrants) evidences of its
         indebtedness or assets (including cash and cash dividends) or rights or
         warrants to subscribe for or purchase any security other than the
         Common Stock (which shall be subject to Section 3(b)), then in each
         such case the Exercise Price shall be adjusted by multiplying the
         Exercise Price in effect immediately prior to the record date fixed for
         determination of stockholders entitled to receive such distribution by
         a fraction of which the denominator shall be the VWAP determined as of
         the record date

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         mentioned above, and of which the numerator shall be such VWAP on such
         record date less the then per share fair market value at such record
         date of the portion of such assets or evidence of indebtedness so
         distributed applicable to one outstanding share of the Common Stock as
         determined by the Board of Directors in good faith. In either case the
         adjustments shall be described in a statement provided to the Holder of
         the portion of assets or evidences of indebtedness so distributed or
         such subscription rights applicable to one share of Common Stock. Such
         adjustment shall be made whenever any such distribution is made and
         shall become effective immediately after the record date mentioned
         above.

                  d) Fundamental Transaction. If, at any time while this Warrant
         is outstanding, (A) the Company effects any merger or consolidation of
         the Company with or into another Person, (B) the Company effects any
         sale of all or substantially all of its assets in one or a series of
         related transactions, (C) any tender offer or exchange offer (whether
         by the Company or another Person) is completed pursuant to which
         holders of Common Stock are permitted to tender or exchange their
         shares for other securities, cash or property, or (D) the Company
         effects any reclassification of the Common Stock or any compulsory
         share exchange pursuant to which the Common Stock is effectively
         converted into or exchanged for other securities, cash or property (in
         any such case, a "Fundamental Transaction"), then, upon any subsequent
         exercise of this Warrant, the Holder shall have the right to receive,
         for each Warrant Share that would have been issuable upon such exercise
         immediately prior to the occurrence of such Fundamental Transaction, at
         the option of the Holder, (a) upon exercise of this Warrant, the number
         of shares of Common Stock of the successor or acquiring corporation or
         of the Company, if it is the surviving corporation, and any additional
         consideration (the "Alternate Consideration") receivable upon or as a
         result of such reorganization, reclassification, merger, consolidation
         or disposition of assets by a Holder of the number of shares of Common
         Stock for which this Warrant is exercisable immediately prior to such
         event or (b) if the Company is acquired in an all cash transaction,
         cash equal to the value of this Warrant as determined in accordance
         with the Black-Scholes option pricing formula. For purposes of any such
         exercise, the determination of the Exercise Price shall be
         appropriately adjusted to apply to such Alternate Consideration based
         on the amount of Alternate Consideration issuable in respect of one
         share of Common Stock in such Fundamental Transaction, and the Company
         shall apportion the Exercise Price among the Alternate Consideration in
         a reasonable manner reflecting the relative value of any different
         components of the Alternate Consideration. If holders of Common Stock
         are given any choice as to the securities, cash or property to be
         received in a Fundamental Transaction, then the Holder shall be given
         the same choice as to the Alternate Consideration it receives upon any
         exercise of this Warrant following such Fundamental Transaction. To the
         extent necessary to effectuate the foregoing provisions, any successor
         to the Company or surviving entity in such Fundamental Transaction
         shall issue to the Holder a new warrant consistent with the foregoing
         provisions and evidencing the Holder's right to exercise such warrant
         into Alternate Consideration. The terms of any agreement pursuant to
         which a Fundamental Transaction is effected shall include terms
         requiring any such successor or surviving entity to comply with the
         provisions of this Section 3(d) and insuring that this Warrant (or any
         such replacement

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         security) will be similarly adjusted upon any subsequent transaction
         analogous to a Fundamental Transaction.

                  e) Calculations. All calculations under this Section 3 shall
         be made to the nearest cent or the nearest 1/100th of a share, as the
         case may be. For purposes of this Section 3, the number of shares of
         Common Stock deemed to be issued and outstanding as of a given date
         shall be the sum of the number of shares of Common Stock (excluding
         treasury shares, if any) issued and outstanding.

                  f) Voluntary Adjustment By Company. The Company may at any
         time during the term of this Warrant reduce the then current Exercise
         Price to any amount and for any period of time deemed appropriate by
         the Board of Directors of the Company.

                  g) Notice to Holders.

                                    i. Adjustment to Exercise Price. Whenever
                           the Exercise Price is adjusted pursuant to this
                           Section 3, the Company shall promptly mail to each
                           Holder a notice setting forth the Exercise Price
                           after such adjustment and setting forth a brief
                           statement of the facts requiring such adjustment. If
                           the Company issues a variable rate security, despite
                           the prohibition thereon in the Purchase Agreement,
                           the Company shall be deemed to have issued Common
                           Stock or Common Stock Equivalents at the lowest
                           possible conversion or exercise price at which such
                           securities may be converted or exercised in the case
                           of a Variable Rate Transaction (as defined in the
                           Purchase Agreement).

                                    ii. Notice to Allow Exercise by Holder. If
                           (A) the Company shall declare a dividend (or any
                           other distribution) on the Common Stock; (B) the
                           Company shall declare a special nonrecurring cash
                           dividend on or a redemption of the Common Stock; (C)
                           the Company shall authorize the granting to all
                           holders of the Common Stock rights or warrants to
                           subscribe for or purchase any shares of capital stock
                           of any class or of any rights; (D) the approval of
                           any stockholders of the Company shall be required in
                           connection with any reclassification of the Common
                           Stock, any consolidation or merger to which the
                           Company is a party, any sale or transfer of all or
                           substantially all of the assets of the Company, of
                           any compulsory share exchange whereby the Common
                           Stock is converted into other securities, cash or
                           property; (E) the Company shall authorize the
                           voluntary or involuntary dissolution, liquidation or
                           winding up of the affairs of the Company; then, in
                           each case, the Company shall cause to be mailed to
                           the Holder at its last address as it shall appear
                           upon the Warrant Register of the Company, at least 20
                           calendar days prior to the applicable record or
                           effective date hereinafter specified, a notice
                           stating (x) the date on which a record is to be taken
                           for the purpose of such dividend, distribution,
                           redemption, rights or warrants, or if a record is not
                           to be taken, the date as of which the holders of the
                           Common Stock of record to be entitled to such
                           dividend, distributions, redemption, rights or
                           warrants

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                           are to be determined or (y) the date on which such
                           reclassification, consolidation, merger, sale,
                           transfer or share exchange is expected to become
                           effective or close, and the date as of which it is
                           expected that holders of the Common Stock of record
                           shall be entitled to exchange their shares of the
                           Common Stock for securities, cash or other property
                           deliverable upon such reclassification,
                           consolidation, merger, sale, transfer or share
                           exchange; provided, that the failure to mail such
                           notice or any defect therein or in the mailing
                           thereof shall not affect the validity of the
                           corporate action required to be specified in such
                           notice. The Holder is entitled to exercise this
                           Warrant during the 20-day period commencing on the
                           date of such notice to the effective date of the
                           event triggering such notice.

         Section 4. Transfer of Warrant.

                  a) Transferability. Subject to compliance with any applicable
         securities laws and the conditions set forth in Sections 5(a) and 4(d)
         hereof and to the provisions of Section 4.1 of the Purchase Agreement,
         this Warrant and all rights hereunder are transferable, in whole or in
         part, upon surrender of this Warrant at the principal office of the
         Company, together with a written assignment of this Warrant
         substantially in the form attached hereto duly executed by the Holder
         or its agent or attorney and funds sufficient to pay any transfer taxes
         payable upon the making of such transfer. Upon such surrender and, if
         required, such payment, the Company shall execute and deliver a new
         Warrant or Warrants in the name of the assignee or assignees and in the
         denomination or denominations specified in such instrument of
         assignment, and shall issue to the assignor a new Warrant evidencing
         the portion of this Warrant not so assigned, and this Warrant shall
         promptly be cancelled. A Warrant, if properly assigned, may be
         exercised by a new holder for the purchase of Warrant Shares without
         having a new Warrant issued.

                  b) New Warrants. This Warrant may be divided or combined with
         other Warrants upon presentation hereof at the aforesaid office of the
         Company, together with a written notice specifying the names and
         denominations in which new Warrants are to be issued, signed by the
         Holder or its agent or attorney. Subject to compliance with Section
         4(a), as to any transfer which may be involved in such division or
         combination, the Company shall execute and deliver a new Warrant or
         Warrants in exchange for the Warrant or Warrants to be divided or
         combined in accordance with such notice.

                  c) Warrant Register. The Company shall register this Warrant,
         upon records to be maintained by the Company for that purpose (the
         "Warrant Register"), in the name of the record Holder hereof from time
         to time. The Company may deem and treat the registered Holder of this
         Warrant as the absolute owner hereof for the purpose of any exercise
         hereof or any distribution to the Holder, and for all other purposes,
         absent actual notice to the contrary.

                  d) Transfer Restrictions. If, at the time of the surrender of
         this Warrant in connection with any transfer of this Warrant, the
         transfer of this Warrant shall not be registered pursuant to an
         effective registration statement under the Securities Act and

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         under applicable state securities or blue sky laws, the Company may
         require, as a condition of allowing such transfer (i) that the Holder
         or transferee of this Warrant, as the case may be, furnish to the
         Company a written opinion of counsel (which opinion shall be in form,
         substance and scope customary for opinions of counsel in comparable
         transactions) to the effect that such transfer may be made without
         registration under the Securities Act and under applicable state
         securities or blue sky laws, (ii) that the holder or transferee execute
         and deliver to the Company an investment letter in form and substance
         acceptable to the Company and (iii) that the transferee be an
         "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3),
         (a)(7), or (a)(8) promulgated under the Securities Act or a qualified
         institutional buyer as defined in Rule 144A(a) under the Securities
         Act.

         Section 5. Miscellaneous.

                  a) Title to Warrant. Prior to the Termination Date and subject
         to compliance with applicable laws and Section 4 of this Warrant, this
         Warrant and all rights hereunder are transferable, in whole or in part,
         at the office or agency of the Company by the Holder in person or by
         duly authorized attorney, upon surrender of this Warrant together with
         the Assignment Form annexed hereto properly endorsed. The transferee
         shall sign an investment letter in form and substance reasonably
         satisfactory to the Company.

                  b) No Rights as Shareholder Until Exercise. This Warrant does
         not entitle the Holder to any voting rights or other rights as a
         shareholder of the Company prior to the exercise hereof. Upon the
         surrender of this Warrant and the payment of the aggregate Exercise
         Price (or by means of a cashless exercise), the Warrant Shares so
         purchased shall be and be deemed to be issued to such Holder as the
         record owner of such shares as of the close of business on the later of
         the date of such surrender or payment.

                  c) Loss, Theft, Destruction or Mutilation of Warrant. The
         Company covenants that upon receipt by the Company of evidence
         reasonably satisfactory to it of the loss, theft, destruction or
         mutilation of this Warrant or any stock certificate relating to the
         Warrant Shares, and in case of loss, theft or destruction, of indemnity
         or security reasonably satisfactory to it (which, in the case of the
         Warrant, shall not include the posting of any bond), and upon surrender
         and cancellation of such Warrant or stock certificate, if mutilated,
         the Company will make and deliver a new Warrant or stock certificate of
         like tenor and dated as of such cancellation, in lieu of such Warrant
         or stock certificate.

                  d) 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, Sunday or a legal
         holiday, then such action may be taken or such right may be exercised
         on the next succeeding day not a Saturday, Sunday or legal holiday.

                  e) 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 the Warrant Shares upon the

                                       10
<PAGE>

                  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 the Warrant
                  Shares upon the exercise of the purchase rights under this
                  Warrant. The Company will take all such reasonable action as
                  may be necessary to assure that such Warrant Shares may be
                  issued as provided herein without violation of any applicable
                  law or regulation, or of any requirements of the Trading
                  Market upon which the Common Stock may be listed.

                           Except and to the extent as waived or consented to by
                  the Holder, the Company shall not by any action, including,
                  without limitation, amending its certificate of incorporation
                  or through any reorganization, transfer of assets,
                  consolidation, merger, 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 will at all times in good faith assist in
                  the carrying out of all such terms and in the taking of all
                  such actions as may be necessary or appropriate to protect the
                  rights of Holder as set forth in this Warrant against
                  impairment. Without limiting the generality of the foregoing,
                  the Company will (a) not increase the par value of any Warrant
                  Shares above the amount payable therefor upon such exercise
                  immediately prior to such increase in par value, (b) take all
                  such action as may be necessary or appropriate in order that
                  the Company may validly and legally issue fully paid and
                  nonassessable Warrant Shares upon the exercise of this
                  Warrant, and (c) use commercially reasonable efforts to obtain
                  all such authorizations, exemptions or consents from any
                  public regulatory body having jurisdiction thereof as may be
                  necessary to enable the Company to perform its obligations
                  under this Warrant.

                           Before taking any action which would result in an
                  adjustment in the number of Warrant Shares for which this
                  Warrant is exercisable or in the Exercise Price, the Company
                  shall obtain all such authorizations or exemptions thereof, or
                  consents thereto, as may be necessary from any public
                  regulatory body or bodies having jurisdiction thereof.

                  f) Jurisdiction. All questions concerning the construction,
         validity, enforcement and interpretation of this Warrant shall be
         determined in accordance with the provisions of the Purchase Agreement.

                  g) Restrictions. The Holder acknowledges that the Warrant
         Shares acquired upon the exercise of this Warrant, if not registered,
         will have restrictions upon resale imposed by state and federal
         securities laws.

                  h) Nonwaiver and Expenses. No course of dealing or any delay
         or failure to exercise any right hereunder on the part of Holder shall
         operate as a waiver of such right or otherwise prejudice Holder's
         rights, powers or remedies, notwithstanding the fact that all rights
         hereunder terminate on the Termination Date. If the Company willfully
         and knowingly fails to comply with any provision of this Warrant, which
         results in any

                                       11
<PAGE>

         material damages to the Holder, the Company shall pay to Holder such
         amounts as shall be sufficient to cover any costs and expenses
         including, but not limited to, reasonable attorneys' fees, including
         those of appellate proceedings, incurred by Holder in collecting any
         amounts due pursuant hereto or in otherwise enforcing any of its
         rights, powers or remedies hereunder.

                  i) Notices. Any notice, request or other document required or
         permitted to be given or delivered to the Holder by the Company shall
         be delivered in accordance with the notice provisions of the Purchase
         Agreement.

                  j) Limitation of Liability. No provision hereof, in the
         absence of any affirmative action by Holder to exercise this Warrant or
         purchase Warrant Shares, and no enumeration herein of the rights or
         privileges of Holder, shall give rise to any liability of Holder for
         the purchase price of any Common Stock or as a stockholder of the
         Company, whether such liability is asserted by the Company or by
         creditors of the Company.

                  k) Remedies. Holder, in addition to being entitled to exercise
         all rights granted by law, including recovery of damages, will be
         entitled to specific performance of its rights under this Warrant. The
         Company agrees that monetary damages would not be adequate compensation
         for any loss incurred by reason of a breach by it of the provisions of
         this Warrant and hereby agrees to waive the defense in any action for
         specific performance that a remedy at law would be adequate.

                  l) Successors and Assigns. Subject to applicable securities
         laws, this Warrant and the rights and obligations evidenced hereby
         shall inure to the benefit of and be binding upon the successors of the
         Company and the successors and permitted assigns of Holder. The
         provisions of this Warrant are intended to be for the benefit of all
         Holders from time to time of this Warrant and shall be enforceable by
         any such Holder or holder of Warrant Shares.

                  m) Amendment. This Warrant may be modified or amended or the
         provisions hereof waived with the written consent of the Company and
         the Holder.

                  n) Severability. Wherever possible, each provision of this
         Warrant shall be interpreted in such manner as to be effective and
         valid under applicable law, but if any provision of this Warrant shall
         be prohibited by or invalid under applicable law, such provision shall
         be ineffective to the extent of such prohibition or invalidity, without
         invalidating the remainder of such provisions or the remaining
         provisions of this Warrant.

                  o) Headings. The headings used in this Warrant are for the
         convenience of reference only and shall not, for any purpose, be deemed
         a part of this Warrant.

                              ********************

                                       12
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

Dated: June 8, 2005

                                       WESTERN POWER & EQUIPMENT CORP.

                                       By: ____________________________
                                           Name:
                                           Title:

                                       13
<PAGE>

                               NOTICE OF EXERCISE

TO: WESTERN POWER & EQUIPMENT CORP.

         (1) The undersigned hereby elects to purchase ________ Warrant Shares
of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any.

         (2) Payment shall take the form of (check applicable box):

                  [ ] in lawful money of the United States; or

                  [ ] the cancellation of such number of Warrant Shares as is
                  necessary, in accordance with the formula set forth in
                  subsection 2(c), to exercise this Warrant with respect to the
                  maximum number of Warrant Shares purchasable pursuant to the
                  cashless exercise procedure set forth in subsection 2(c).

         (3) Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

                  ________________________________________

The Warrant Shares shall be delivered to the following:

                  ________________________________________

                  ________________________________________

                  ________________________________________

         (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ___________________________________________________
SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: ______________________
Name of Authorized Signatory: _______________________________________________
Title of Authorized Signatory: ______________________________________________
Date: _______________________________________________________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

______________________________________________________________ whose address is

______________________________________________________________________________.

______________________________________________________________________________

                                                 Dated:  ______________, _______

                  Holder's Signature: ___________________________

                  Holder's Address: _____________________________

                                    _____________________________

Signature Guaranteed: ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.EXHIBIT 4.5
                                                                     -----------

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES

                                SERIES C WARRANT

     To Purchase $________ Principal Amount of Series A Debentures and Series A
Warrants

                         WESTERN POWER & EQUIPMENT CORP.

     THIS SERIES C WARRANT (the "Warrant") certifies that, for value received,
_____________ (the "Holder"), is entitled, upon the terms and subject to the
limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the "Initial Exercise Date") and on or prior to the
earlier of the close of business on (i) the 18 month anniversary of the
Effective Date and (ii) the three year anniversary of the date hereof (the
"Termination Date") but not thereafter, to subscribe for and purchase from
Western Power & Equipment Corp., a Delaware corporation (the "Company"), at face
value (a) up to $_____________[AMOUNT EQUAL TO 25% OF HOLDER'S SERIES A
SUBSCRIPTION AMOUNT] principal amount of a Series A Debenture at an initial
conversion price equal to the then Conversion Price of the Series A Debenture
(the "Debenture Conversion Price") (subject to adjustment hereunder and
thereunder) (the "Debenture") and (b) Series A Warrants at an exercise price of
equal to the then Exercise Price of the Series A Warrant (the "Warrant Exercise
Price") (subject to adjustment hereunder and thereunder) (the "Warrant"). Upon
the purchase hereunder of Debenture, the Holder shall receive a Warrant to
purchase a number of shares of Common Stock equal to 35% of the shares of Common
Stock issuable upon conversion in full of such Debenture. The Debenture and
Warrant shall be in the form of the Series A Debenture and Series A Warrants
(with the same rights, privileges and preferences set forth in the Transaction
Documents, including without limitation, the Series A Debentures and the Series
A Warrant) issued pursuant to the Purchase Agreement, MUTATIS MUTANDIS. The
Debenture and the Warrant shall be collectively referred to as the "Securities."
The Warrant Exercise Price and the Debenture Conversion Price shall be
collectively referred to herein as the "Conversion Price."

                                        1
<PAGE>
     Section 1. Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the "Purchase Agreement"), dated June 8, 2005, among the Company and
the Purchasers signatory thereto.

Section 2.  Exercise.

     a)     Exercise of this Warrant. Exercise of the purchase rights
represented by this Warrant may be made, in whole or in part, at any time or
times on or after the Initial Exercise Date and on or before the Termination
Date by delivery to the Company of a duly executed facsimile copy of the Notice
of Exercise Form annexed hereto (or such other office or agency of the Company
as it may designate by notice in writing to the registered Holder at the address
of such Holder appearing on the books of the Company) and the payment of the
aggregate principal amount of the Debenture thereby purchased by wire transfer
or cashier's check drawn on a United States bank. Upon exercise of the Warrant,
the Company shall issue a Debenture with a principal amount equal to 25% of the
initial principal amount of such Holder's Series A Debenture, as issued pursuant
to the Purchase Agreement and the Warrant to purchase a number of shares of
Common Stock equal to 35% of the shares of Common Stock issuable upon conversion
of such Debenture.

     b)     Mechanics of Exercise.

            i. Authorization of Debenture and the Warrant. The Company covenants
     that during the period this Warrant is outstanding, it will reserve from
     its authorized and unissued Common Stock a sufficient number of shares to
     provide for the issuance of all of the shares of Common Stock underlying
     the Debenture and Warrant (the collectively, "Conversion Shares"). 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 certificates to execute and issue the necessary certificates for
     the Securities upon the exercise of the purchase rights under this Warrant
     and certificates upon conversion and exercise of the Securities. The
     Company covenants that the Securities which may be issued upon the exercise
     of the purchase rights represented by this Warrant and the Conversion
     Shares issuable thereunder will, upon exercise of the purchase rights
     represented by this Warrant, be duly authorized, validly issued, fully paid
     and nonassessable and free from all taxes, liens and charges in respect of
     the issue thereof (other than taxes in respect of any transfer occurring
     contemporaneously with such issue). The Company will take all such
     reasonable action as may be necessary to assure that the Securities and
     Conversion Shares may be issued as provided herein without violation of any
     applicable law or regulation, or of any requirements of the Trading Market
     upon which the Common Stock may be listed.

            ii. Delivery of Certificates Upon Exercise. Certificates for the
     Securities purchased hereunder shall be delivered to the Holder within 5
     Trading Days from the delivery to the Company of the Notice of Exercise

                                        2
<PAGE>
     Form and surrender of this Warrant ("Securities Delivery Date"), provided
     that such delivery and surrender occurs before 12:00 Noon EST on such date.
     This Warrant shall be deemed to have been exercised on the date the payment
     of the Exercise Price is received by the Company. The Securities shall be
     deemed to have been issued, and Holder or any other person so designated to
     be named therein shall be deemed to have become a holder of record of such
     security for all purposes, as of the date the Warrant has been exercised by
     payment to the Company of the Exercise Price and all taxes required to be
     paid by the Holder, if any, pursuant to Section 2(b)(v) prior to the
     issuance of such security, have been paid.

            iii. Delivery of New Warrants Upon Exercise. If this Warrant shall
     have been exercised in part, the Company shall, at the time of delivery of
     the certificate or certificates representing the Securities, deliver to
     Holder a new Warrant evidencing the rights of Holder to purchase the
     unpurchased Securities called for by this Warrant, which new Warrant shall
     in all other respects be identical with this Warrant.

            iv. Rescission Rights. If the Company fails to deliver to the Holder
     a certificate or certificates representing the Securities pursuant to this
     Section 2(b)(iv) by the Securities Delivery Date, then the Holder will have
     the right to rescind such exercise.

            v. Charges, Taxes and Expenses. Issuance of certificates for
     Securities shall be made without charge to the Holder 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 or in such
     name or names as may be directed by the Holder; provided, however, that in
     the event certificates for Securities are to be issued in a name other than
     the name of the Holder, this Warrant when surrendered for exercise shall be
     accompanied by the Assignment Form attached hereto duly executed by the
     Holder; and the Company may require, as a condition thereto, the payment of
     a sum sufficient to reimburse it for any transfer tax incidental thereto.

            vi. Closing of Books. The Company will not close its records in any
     manner which prevents the timely exercise of this Warrant, pursuant to the
     terms hereof or the conversion of the Securities pursuant to the terms
     hereof.

Section 3.  Certain Adjustments.

     a)     Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (A) pays a stock dividend or otherwise make a
distribution or distributions on shares of its Common Stock or any other equity
or equity equivalent securities payable in shares of Common Stock (which, for
avoidance of doubt, shall not

                                        3
<PAGE>
include any shares of Common Stock issued by the Company pursuant to the
Securities), (B) subdivides outstanding shares of Common Stock into a larger
number of shares, (C) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares, or (D)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Conversion Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event. Any adjustment made pursuant to this
Section 3(a) shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision, combination or re-classification.

     b)     Subsequent Equity Sales. If the Company or any Subsidiary thereof,
as applicable, at any time while this Warrant is outstanding, shall offer, sell,
grant any option to purchase or offer, sell or grant any right to reprice its
securities, or otherwise dispose of or issue (or announce any offer, sale, grant
or any option to purchase or other disposition) any Common Stock or Common Stock
Equivalents entitling any Person to acquire shares of Common Stock, at an
effective price per share less than the then Conversion Price (such lower price,
the "Base Share Price" and such issuances collectively, a "Dilutive Issuance"),
as adjusted hereunder (if the holder of the Common Stock or Common Stock
Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices
or otherwise, or due to warrants, options or rights per share which is issued in
connection with such issuance, be entitled to receive shares of Common Stock at
an effective price per share which is less than the Conversion Price, such
issuance shall be deemed to have occurred for less than the Conversion Price on
such date of the Dilutive Issuance), then, the Conversion Price shall be reduced
and only reduced to equal the Base Share Price and the number of shares of
Common Stock issuable upon exercise of the Warrant issuable hereunder shall be
increased such that the aggregate Warrant Exercise Price payable hereunder,
after taking into account the decrease in the Warrant Exercise Price, shall be
equal to the aggregate Warrant Exercise Price prior to such adjustment. Such
adjustment shall be made whenever such Common Stock or Common Stock Equivalents
are issued. Notwithstanding the foregoing, no adjustments shall be made, paid or
issued under this Section 3(b) in respect of an Exempt Issuance. The Company
shall notify the Holder in writing, no later than the Trading Day following the
issuance of any Common Stock or Common Stock Equivalents subject to this
section, indicating therein the applicable issuance price, or of applicable
reset price, exchange price, conversion price and other pricing terms (such
notice the "Dilutive Issuance Notice"). For purposes of clarification, whether
or not the Company provides a Dilutive Issuance Notice pursuant to this Section
3(b), upon the occurrence of any Dilutive Issuance, after the date of such
Dilutive Issuance the Holder is entitled to receive a number of securities based
upon the Base Share Price regardless of whether the Holder accurately refers to
the Base Share Price in the Notice of Exercise.

                                        4
<PAGE>
     c)     Pro Rata Distributions. If the Company, at any time while this
Warrant is outstanding, but no later than the Termination Date, distributes to
all holders of Common Stock (and not to Holders) evidences of its indebtedness
or assets (including cash and cash dividends) or rights or warrants to subscribe
for or purchase any security other than the Common Stock (which shall be subject
to Section 3(b), then in each such case the Conversion Price shall be adjusted
by multiplying such Conversion Price in effect immediately prior to the record
date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then per share fair market value at such
record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of the Common Stock as
determined by the Board of Directors in good faith. In either case the
adjustments shall be described in a statement provided to the Holder of the
portion of assets or evidences of indebtedness so distributed or such
subscription rights applicable to one share of Common Stock. Such adjustment
shall be made whenever any such distribution is made and shall become effective
immediately after the record date mentioned above.

     d)     Fundamental Transaction. If, at any time while this Warrant is
outstanding, (A) the Company effects any merger or consolidation of the Company
with or into another Person, (B) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions, (C)
any tender offer or exchange offer (whether by the Company or another Person) is
completed pursuant to which holders of Common Stock are permitted to tender or
exchange their shares for other securities, cash or property, or (D) the Company
effects any reclassification of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such case, a
"Fundamental Transaction"), then, upon any subsequent exercise of this Warrant
the Holder shall have the right to receive upon conversion or exercise of the
Securities, as applicable, for each Conversion Share that would have been
issuable upon such exercise and then subsequent conversion immediately prior to
the occurrence of such Fundamental Transaction, at the option of the Holder, (a)
upon conversion or exercise of the Securities, shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the "Alternate Consideration")
receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the number of shares of
Common Stock for which the underlying Securities are convertible immediately
prior to such event or (b) if the Company is acquired in an all cash
transaction, cash equal to the value of this Warrant as determined in accordance
with the Black-Scholes option pricing formula. For purposes of any such deemed
conversion, the determination of the Conversion Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Conversion Price
among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be
received in a Fundamental Transaction, then the Holder shall be given the same

                                        5
<PAGE>
choice as to the Alternate Consideration it receives upon any conversion or
exercise of the Securities underlying this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder's right to exercise such warrant right ultimately into
Alternate Consideration. The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of this Section 3(d)
and insuring that this Warrant (or any such replacement security) will be
similarly adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

     e)     Calculations. All calculations and adjustments to the Conversion
Price under this Section 3 shall be made to the nearest cent or the nearest
1/100th of a share, as the case may be. For purposes of this Section 3, the
number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding..

     f)     Voluntary Adjustment By Company. The Company may at any time during
the term of this Warrant reduce the then current Conversion Price to any amount
and for any period of time deemed appropriate by the Board of Directors of the
Company.

     g)     Notice to Holders.

                i. Adjustment to Conversion Price. Whenever the Conversion Price
            is adjusted pursuant to this Section 3, the Company shall promptly
            mail to each Holder a notice setting forth the Conversion Price
            after such adjustment and setting forth a brief statement of the
            facts requiring such adjustment.

                ii. Notice to Allow Exercise by Holder. If (A) the Company shall
            declare a dividend (or any other distribution) on the Common Stock;
            (B) the Company shall declare a special nonrecurring cash dividend
            on or a redemption of the Common Stock; (C) the Company shall
            authorize the granting to all holders of the Common Stock rights or
            warrants to subscribe for or purchase any shares of capital stock of
            any class or of any rights; (D) the approval of any stockholders of
            the Company shall be required in connection with any
            reclassification of the Common Stock, any consolidation or merger to
            which the Company is a party, any sale or transfer of all or
            substantially all of the assets of the Company, of any compulsory
            share exchange whereby the Common Stock is converted into other
            securities, cash or property; (E) the Company shall authorize the
            voluntary or involuntary dissolution, liquidation or winding up of
            the affairs of the Company; then, in each case, the Company shall
            cause to be mailed to the Holder at its last address as it shall
            appear upon the Warrant Register of the Company, at least 20
            calendar days prior to the applicable record or effective date
            hereinafter specified, a notice stating (x) the date on which a

                                        6
<PAGE>
            record is to be taken for the purpose of such dividend,
            distribution, redemption, rights or warrants, or if a record is not
            to be taken, the date as of which the holders of the Common Stock of
            record to be entitled to such dividend, distributions, redemption,
            rights or warrants are to be determined or (y) the date on which
            such reclassification, consolidation, merger, sale, transfer or
            share exchange is expected to become effective or close, and the
            date as of which it is expected that holders of the Common Stock of
            record shall be entitled to exchange their shares of the Common
            Stock for securities, cash or other property deliverable upon such
            reclassification, consolidation, merger, sale, transfer or share
            exchange; provided, that the failure to mail such notice or any
            defect therein or in the mailing thereof shall not affect the
            validity of the corporate action required to be specified in such
            notice. The Holder is entitled to exercise this Warrant during the
            20-day period commencing on the date of such notice to the effective
            date of the event triggering such notice.

Section 4.  Transfer of Warrant.

     a)     Transferability. Subject to compliance with any applicable
securities laws and the conditions set forth in Sections 5(a) and 4(e) hereof
and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and
all rights hereunder are transferable, in whole or in part, upon surrender of
this Warrant at the principal office of the Company, together with a written
assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees and in the
denomination or denominations specified in such instrument of assignment, and
shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if
properly assigned, may be exercised by a new holder for the purchase of
Securities without having a new Warrant issued.

     b)     New Warrants. This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

     c)     Warrant Register. The Company shall register this Warrant, upon
records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Holder hereof from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary

                                        7
<PAGE>
     d)     Transfer Restrictions. If, at the time of the surrender of this
Warrant in connection with any transfer of this Warrant, the transfer of this
Warrant shall not be registered pursuant to an effective registration statement
under the Securities Act and under applicable state securities or blue sky laws,
the Company may require, as a condition of allowing such transfer (i) that the
Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written opinion of counsel (which opinion shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the holder
or transferee execute and deliver to the Company an investment letter in form
and substance acceptable to the Company and (iii) that the transferee be an
"accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or
(a)(8) promulgated under the Securities Act or a qualified institutional buyer
as defined in Rule 144A(a) under the Securities Act.

Section 5.  Miscellaneous.

     a)     Title to the Warrant. Prior to the Termination Date and subject to
compliance with applicable laws and Section 4 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company.

     b)     No Rights as Shareholder Until Exercise. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate principal, the Securities so purchased shall be and be
deemed to be issued to such Holder as the record owner of such shares as of the
close of business on the later of the date of such surrender or payment.

     c)     Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Securities, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

     d)     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, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

     e)     Authorized Shares.

                                        8
<PAGE>
            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 the shares of
     Common Stock issuable upon conversion and exercise, as applicable, of the
     Securities. 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 certificates to execute and issue the necessary
     certificates for the Securities upon the exercise of the purchase rights
     under this Warrant. The Company will take all such reasonable action as may
     be necessary to assure that such Securities and Conversion Shares may be
     issued as provided herein without violation of any applicable law or
     regulation, or of any requirements of the Trading Market upon which the
     Common Stock may be listed.

            Except and to the extent as waived or consented to by the Holder,
     the Company shall not by any action, including, without limitation,
     amending its certificate of incorporation or through any reorganization,
     transfer of assets, consolidation, merger, 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 or the
     Securities, but will at all times in good faith assist in the carrying out
     of all such terms and in the taking of all such actions as may be necessary
     or appropriate to protect the rights of Holder as set forth in this Warrant
     and the Securities against impairment. Without limiting the generality of
     the foregoing, the Company will (a) take all such action as may be
     necessary or appropriate in order that the Company may validly and legally
     issue fully paid and nonassessable Securities upon the exercise of this
     Warrant and Conversion Shares upon conversion and exercise of the
     Securities, and (b) use commercially reasonable efforts to obtain all such
     authorizations, exemptions or consents from any public regulatory body
     having jurisdiction thereof as may be necessary to enable the Company to
     perform its obligations under this Warrant and the Securities.

            Before taking any action which would result in an adjustment in the
     Securities for which this Warrant is exercisable or in the Conversion
     Price, the Company shall obtain all such authorizations or exemptions
     thereof, or consents thereto, as may be necessary from any public
     regulatory body or bodies having jurisdiction thereof.

     f)     Jurisdiction. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

     g)     Restrictions. The Holder acknowledges that the Securities acquired
upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

     h)     Nonwaiver and Expenses. No course of dealing or any delay or failure
to exercise any right hereunder on the part of Holder shall operate as a waiver
of such right

                                        9
<PAGE>
or otherwise prejudice Holder's rights, powers or remedies, notwithstanding the
fact that all rights hereunder terminate on the Termination Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to
Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys' fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     i)     Notices. Any notice, request or other document required or permitted
to be given or delivered to the Holder by the Company shall be delivered in
accordance with the notice provisions of the Purchase Agreement.

     j)     Limitation of Liability. No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant or purchase Securities,
and no enumeration herein of the rights or privileges of Holder, shall give rise
to any liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

     k)     Remedies. Holder, in addition to being entitled to exercise all
rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

     l)     Successors and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Securities.

     m)     Amendment. This Warrant may be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder.

     n)     Severability. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

     o)     Headings. The headings used in this Warrant are for the convenience
of reference only and shall not, for any purpose, be deemed a part of this
Warrant.

                              ********************

                                       10
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  June 8, 2005

                                          WESTERN POWER & EQUIPMENT CORP., INC.

                                          By:__________________________________
                                          Name:
                                          Title:

                                       11
<PAGE>
                               NOTICE OF EXERCISE

TO:  WESTERN POWER & EQUIPMENT CORP.

     (1) The undersigned hereby elects to purchase $________ principal amount
of Debenture and Warrants to purchase _____ shares of Common Stock of Western
Power & Equipment Corp. pursuant to the terms of the attached Warrant and
tenders herewith payment of the Exercise Price in full, together with all
applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box) in lawful money
of the United States; or

     (3) Please issue a certificate or certificates representing said Securities
in the name of the undersigned or in such other name as is specified below:

         ________________________

The Securities shall be delivered to the following:

         ________________________

         ________________________

         ________________________

     (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: _________________________

Name of Authorized Signatory: __________________________________________________

Title of Authorized Signatory: _________________________________________________

Date: __________________________________________________________________________
<PAGE>
                                 ASSIGNMENT FORM

                    (To assign the foregoing Warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the Warrant.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                                 Dated:  ______________, _______

                       Holder's Signature:       _______________________________

                       Holder's Address:         _______________________________

                                                 _______________________________

Signature Guaranteed: __________________________________________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

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