Exhibit
99.3
SINO CLEAN ENERGY
INC.
WARRANT
[EITHER]
“[NEITHER] THIS SECURITY [NOR THE
SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]]
HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
SECURITIES UNDER SAID ACT OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.”
[OR]
“[NEITHER] THIS SECURITY [NOR THE
SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]]
HASBEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION
UNDER THE SECURITIES ACT, OR PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM REGISTRATION; HEDGING TRANSACTIONS INVOLVING THE
SHARES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
WITH THE SECURITIES ACT.”
Sino Clean Energy Inc., a Nevada corporation
(the “ Company ”), hereby certifies that, for
value received, [NAME OF HOLDER] or its registered assigns
(including permitted transferees, the “ Holder
”), is entitled to purchase from the Company up to a total of
[AMOUNT] shares (as adjusted from time to time
as provided in Section 10 , the “ Warrant
Shares ” ) of Common Stock (as defined below), at
an exercise price equal to $0.285 per share (as adjusted from time
to time as provided in Section 10 , the “
Exercise Price ”), at any time and from time to time
from and after June [ ] , 2009 (the “
Initial Exercise Date ”) until June
[ ] , 2012 (the “Expiration
Date”).
This Warrant is issued pursuant to the Purchase
Agreement (as defined in Section 1) and is subject to such
additional terms and conditions hereinafter. Capitalized terms not
otherwise defined shall have the meanings set forth in the Purchase
Agreement.
1.
Definitions . The following capitalized terms shall have the
meanings set forth in this Section 1:
“
Common Stock ” means the common stock of the Company,
$0.001 par value per share, as constituted on the date
hereof.
“ Common Stock Equivalents ” means any
securities of the Company or the Subsidiaries which would entitle
the holder thereof to acquire at any time shares of Common Stock,
including without limitation, any debt, preferred stock, rights,
options, warrants or other instrument that are at any time
convertible into or exchangeable for, or otherwise entitles the
holder thereof to receive, shares of Common Stock.
“ Market Price ” shall
mean (i) if the principal trading market for such securities
is an exchange, the average of the last reported sale prices per
share for the last ten previous Trading Days in which a sale was
reported, as officially reported on the consolidated tape of any
Subsequent Market, (ii) if clause (i) is not applicable,
the average of the closing bid price per share for the last ten
previous Trading Days as reported by the OTC Bulletin Board or
(iii) if clauses (i) and (ii) are not applicable, the
average of the closing bid price per share for the last ten
previous Trading Days as set forth in the Pink Sheets listing for
such securities. Notwithstanding the foregoing, if there is no
reported sales price or closing bid price, as the case may be, on
any of the ten Trading Days preceding the event requiring a
determination of Market Price hereunder, then the Market Price
shall be determined in good faith by resolution of the Board of
Directors of the Company, based on the best information available
to it.
“ Notes
” means the Company’s 10% Senior Secured Convertible
Notes due June [ ], 2012, issued pursuant to the
Purchase Agreement.
“ Other Securities ” refers to any capital
stock (other than Common Stock) and other securities of the Company
or any other Person which the Holder of this Warrant at any time
shall be entitled to receive, or shall have received, upon the
exercise of this Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been
issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 8 hereof or
otherwise.
“ Purchase Agreement ” means
that certain Securities Purchase Agreement of even date herewith
among, inter alia , the Company and the initial
Holder.
“ Subsequent Market ” means
any one of the following: the NASDAQ Capital Market, the New York
Stock Exchange or NYSE Amex Equities.
“ Warrant Shares ” shall
initially mean shares of Common Stock and in addition may include
Other Securities and Distributed Property (as defined in
Section 10(c )) issued or issuable from time to time
upon exercise of this Warrant.
2.
Registration of Warrant . 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.
3.
Registration of Transfers . The Company shall
register the transfer of any portion of this Warrant in the Warrant
Register, upon surrender of this Warrant, with the Form of
Assignment attached hereto as Appendix A duly completed and
signed, to the Company at its address specified herein. Upon any
such registration and transfer, a new warrant in substantially the
form of the Warrant (any such new warrant, a “New
Warrant”), evidencing the portion of this Warrant so
transferred shall be issued to the transferee and a New Warrant
evidencing the remaining portion of this Warrant not so
transferred, if any, shall be issued to the transferring Holder.
The acceptance of the New Warrant by the transferee thereof shall
be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of a Warrant.
4.
Investment Representation . The Warrant Holder by
accepting this Warrant represents that the Warrant Holder is
acquiring this Warrant for its own account or the account of an
affiliate for investment purposes and not with the view to any
offering or distribution and that the Warrant Holder will not sell
or otherwise dispose of this Warrant or the underlying Warrant
Shares in violation of applicable securities laws. The Warrant
Holder acknowledges that the certificates representing any Warrant
Shares will bear a legend indicating that they have not been
registered under the United States Securities Act of 1933, as
amended (the “ 1933 Act ”) and may not be sold
by the Warrant Holder except pursuant to an effective registration
statement or pursuant to an exemption from registration
requirements of the 1933 Act and in accordance with federal and
state securities laws. If this Warrant was acquired by
the Warrant Holder pursuant to the exemption from the registration
requirements of the 1933 Act afforded by Regulation S thereunder,
the Warrant Holder acknowledges and covenants that this Warrant may
not be exercised by or on behalf of a Person during the one year
distribution compliance period (as defined in Regulation S)
following the date hereof.
5.
Exercise and Duration of Warrant.
(a) A
Holder may exercise this Warrant by delivering to the Company (i)
an exercise notice, in the form attached hereto as
Appendix B (the “ Exercise Notice
”), appropriately completed, duly signed and delivered in
compliance with Section 13 , and (ii) if applicable, payment
of the Exercise Price for the number of Warrant Shares as to which
this Warrant is being exercised (as set forth in Section 5(b)
below), and the date such items are received by the Company is an
“ Exercise Date .” Execution and
delivery of an Exercise Notice in respect of less than all of the
shares issuable upon exercise of this Warrant shall result in the
cancellation of the original Warrant and issuance of a New Warrant
evidencing the right to purchase the remaining number of Warrant
Shares. At 5:00 P.M. New York City time on the Expiration
Date, any unexercised portion of this Warrant shall be and become
void and of no value.
(b) The
Holder shall pay the Exercise Price in cash, by certified bank
check payable to the order of the Company or by wire transfer of
immediately available funds in accordance with the Company’s
instructions.
(c) If
at any time (i) this Warrant is exercised after one year from the
date of issuance of this Warrant but before the Expiration Date and
(ii) during the Trading Day period immediately preceding the
Holder's delivery of an Exercise Notice in respect of such
exercise, a Registration Statement (as defined in the Purchase
Agreement) covering the Warrant Shares that are the subject of the
Exercise Notice (the “ Unavailable Warrant Shares
”) is not available for the resale of such Unavailable
Warrant Shares, the Holder of this Warrant also may exercise this
Warrant as to any or all of such Unavailable Warrant Shares and, in
lieu of making the cash payment otherwise contemplated to be made
to the Company upon such exercise in payment of the aggregate
Exercise Price, elect instead to receive upon such exercise a
reduced number of shares of Common Stock (the “ Net
Number ”) determined according to the following formula
(a “ Cashless Exercise ”):
Net Number = (A
x B) - (A x C)
---------------------
B
For purposes of
the foregoing formula:
A= the total
number of shares with respect to which this Warrant is then being
exercised in a Cashless Exercise.
B= the Market
Price on the Trading Day immediately preceding the date of the
Exercise Notice.
C= the Exercise
Price then in effect for the applicable Warrant Shares at the time
of such exercise.
There cannot be
a Cashless Exercise unless “B” exceeds
“C”.
6.
Delivery of Warrant Shares.
(a) Upon
each exercise of this Warrant, the Company shall promptly issue or
cause to be issued and deliver or cause to be delivered to the
Holder, in such name or names as the Holder may designate, a
certificate for the Warrant Shares issuable upon such exercise (the
“ Certificate ”). The Holder, or any Person so
designated by the Holder to receive the Warrant Shares, shall be
deemed to have become holder of record of such Warrant Shares as of
the Exercise Date.
(b) This
Warrant is exercisable, either in its entirety or, from time to
time, for a portion of the number of Warrant Shares. Upon surrender
of this Warrant following one or more partial exercises, the
Company shall issue or cause to be issued, at its expense, a New
Warrant evidencing the right to purchase the remaining number of
Warrant Shares.
7.
Charges, Taxes and Expenses . Issuance and delivery of
certificates for shares of Common Stock upon exercise of this
Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other
incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the
Company; provided , however , that the Company shall
not be required to pay any tax which may be payable in respect of
any transfer involved in the issue, delivery or registration of any
certificates for Warrant Shares or Warrant in a name other than
that of the Holder and that the Holder will be required to pay any
tax with respect to cash received in lieu of fractional shares. The
Holder shall be responsible for all other tax liability that may
arise as a result of holding or transferring this Warrant or
receiving Warrant Shares upon exercise hereof.
8.
Replacement of Warrant . If this Warrant is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation hereof, or
in lieu of and in substitution for this Warrant, a New Warrant, but
only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and
reasonable indemnity, if requested.
9.
Reservation of Warrant Shares . The Company covenants that
it will at all times reserve and keep available out of the
aggregate of its authorized but unissued and otherwise unreserved
Common Stock, solely for the purpose of enabling it to issue
Warrant Shares upon exercise of this Warrant as herein provided,
the number of Warrant Shares which are then issuable and
deliverable upon the exercise of this entire Warrant, free from all
taxes, liens, claims, encumbrances with respect to the issuance of
such Warrant Shares and will not be subject to any pre-emptive
rights or similar rights (taking into account the adjustments and
restrictions of Section 10 hereof). The Company covenants that
all Warrant Shares so issuable and deliverable shall, upon issuance
and the payment of the app