Document:

PROMISSORY NOTE

PROMISSORY NOTE

 

	 	 	 
	
$3,000,000
	
 
	
November 24, 2009

FOR VALUE RECEIVED, Quantum Fuel Systems Technologies Worldwide, Inc., a Delaware corporation (the "Company"), promises to pay to the order of WB QT, LLC, a Delaware limited liability company ("Lender") at Minneapolis, Minnesota, in lawful money of the United States of America the greater of (A) so much of the sum of Three Million Dollars $3,000,000) demanded by Lender or called by the Company, from time to time, and (B) the Actual Payment Amount (as defined below), together with interest thereon at a rate of zero (0%) percent for the first full year and, then, six (6%) percent per annum thereafter, payable in accordance with the terms of this Note. 

Interest shall be payable in immediately available funds on the fifteenth day of each month and shall be computed on the basis of a 360 day year and assessed for the actual number of days elapsed.  Interest shall only accrue on the unpaid portion of the $3,000,000 of original principal. 

Lender may make demand for payment of all or part of the principal amount due under this Note at any time (and from time to time) after July 1, 2010 by providing the Company with written notice of the principal amount so demanded; provided, however, if the Company's volume-weighted average share price for the VWAP Measurement Period (as defined below) is less than $0.50 at the time demand for payment is made, then Lender may  not make demand for payment until the earlier of (a) such time that that the volume-weighted average share price for the VWAP Measurement Period is equal to or greater than $0.50 and (b) March 31, 2011.  The Company may call all or part of the principal due under this note at any time (and from time to time) after January 16, 2012 by providing Lender with written notice of the principal amount being called.   Any amount not paid as a result of a demand by Lender or call by Company shall be due and payable on January 16, 2015 (the "Maturity Date").    

When demand for payment is made by Lender or a call is made by the Company, then the "Actual Payment Amount" due with respect to such demand or call shall be the greater of (A) the principal amount so demanded or called and (B) that amount determined by multiplying the principal amount so demanded or called by .8 (the "Multiplier"), as adjusted, with that product then multiplied by the lesser of (x) the volume-weighted average price for the common stock of the Company for the five (5) Business Days immediately prior to the Payment Date (as defined below) (the "VWAP Measurement Period") and (y) $2.50 (the "Cap"), as adjusted.    With respect to the Multiplier and Cap, "as adjusted" means adjusted for certain stock dividends, stock splits, or any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company's assets or other transaction, which in each case is effected in such a manner that holders of common shares are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for common shares. By way of example only, a 2-for-1 stock split would result in the Multiplier being adjusted to 1.6 and the Cap being adjusted to $1.25.

The term Payment Date means that date which is: (A) five (5) business days following the Company's receipt of written demand from Lender for payment of all or part of the principal amount due under this Note, (B) five (5) business days following the Company's delivery of written notice that it is calling all or part of the principal amount due under this Note, which first call notice cannot be made prior to January 16, 2012, or (C) the Maturity Date.

The Company shall have the right in its sole discretion to pay the amounts due under this Note using shares of its common stock; provided, however, to pay using shares of common stock the volume-weighted average share price for the VWAP Measurement Period must be at least $0.50.  When making any payment using shares of common stock of the Company, the value of each such share of stock shall be determined based on the volume-weighted average price for such stock during the VWAP Measurement Period. The common stock used for payment will be restricted shares and shall be delivered to Lender within three (3) Business Days following the Payment Date.  Payments made in cash shall be made on the Payment Date.

THE PRINCIPAL AMOUNT OF THIS NOTE SHALL IMMEDIATELY AND AUTOMATICALLY BE REDUCED TO ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) IF THE ARRANGEMENT AGREEMENT BETWEEN THE COMPANY AND SCHNEIDER POWER, INC. IS TERMINATED FOR ANY REASON WHATSOEVER AND THE TRANSACTIONS CONTEMPLATED THEREUNDER ARE NOT COMPLETED.  IN SUCH EVENT, LENDER SHALL PROMPTLY UPON THE COMPANY'S REQUEST DELIVER THIS NOTE FOR CANCELLATION AND THE COMPANY SHALL ISSUE A NEW NOTE WITH A PRINCIPAL AMOUNT OF ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000). 

This Note shall be interpreted and the rights of the parties hereunder shall be determined under the laws of, and enforceable in, the State of Minnesota. 

Company hereby waives presentment for payment, demand, protest and notice of dishonor and nonpayment of this Note and agrees that no obligation hereunder shall be discharged by reason of any extension, indulgence, release, or forbearance granted by any holder of this Note to any party now or hereafter liable hereon or any present or subsequent owner of any property, real or personal, which is now or hereafter security for this Note. 

Nothing herein shall limit any right granted Lender by any other instrument or by law. 

QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC. 

 

By: /s/ Alan P. Niedzwiecki

Name:  Alan P. Niedzwiecki

Its:  PresidentDC7841.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
SCHEDULE Z AMENDMENT

     THIS SCHEDULE Z AMENDMENT AGREEMENT, dated as of November 30, 2009 (the "Schedule Z Amendment Agreement"),
is entered into by and among the signatories hereto.

	
RECITALS

     WHEREAS, the Parties hereto have entered into one or more documents (the "Schedule Z Documents") to which a
cumulative definitions annex has been attached as Schedule Z thereto

("Schedule Z"); and

     WHEREAS, the Parties have previously amended Schedule Z pursuant to the Schedule Z Amendment dated May 8, 2009,a second Schedule Z Amendment dated September 15, 2009,
a third Schedule Z Amendment dated October 1, 2009, a fourth Schedule Z Amendment dated October 16, 2009, and a fifth Schedule Z Amendment dated November 2, 2009; and

     WHEREAS, the Parties hereto desire to again amend Schedule Z attached to each Schedule Z Document.

     NOW THEREFORE in consideration of the foregoing and the mutual agreements herein, together with other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties, intending to be bound hereby, agree that:

A. The definition in Schedule Z for "Guaranteed Final Completion Date" shall be deleted in its entirety and replaced in its entirety with
the amended definition below, effective for all purposes under any Schedule Z Document from and after the date hereof, including as to the interpretation or application of these definitions with respect to historical matters arising under or
otherwise relating to any terms and conditions of any Schedule Z Document:

"Guaranteed Final Completion Date" means the earlier of (i) one hundred and eighty (180) calendar days
after the Facility Substantial Completion Date and (ii) December 3, 2009. [ASA, CA, EPC, O&M, Schedule Z]

	
B. General Provisions:

	
1.      		
This Schedule Z Amendment Agreement is deemed effective as of and from the date first above written.	
	 
	
2.      		
All capitalized terms used herein which are not defined herein shall have the meaning set forth in Schedule Z unless the contrary intent appears.	
	 
	
3.      		
Except as specifically amended hereby, each Schedule Z Document shall continue in full force and effect in accordance with the provisions of such Schedule Z Document, and nothing contained herein shall be construed as a waiver or
modification of any existing rights and claims under such documents except as such Schedule Z Documents are expressly modified hereby.	
	 

	
4.      		
From and after the effectiveness of this Schedule Z Amendment Agreement, all references in each Schedule Z Document and in Schedule Z to Schedule Z shall be deemed to be references to Schedule Z as currently amended.	
	 
	
5.      		
This Schedule Z Amendment Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.	
	 
	
6.      		
The Parties shall cooperate in good faith to amend such Schedule Z Documents necessary to apply for the grant of monies available from the U.S. Treasury under Section 1603 of the American Reinvestment and Recovery Act.	
	 
	
7.      		
This Schedule Z Amendment Agreement shall in all respects be governed by and construed in accordance with the laws the State of New York, without giving effect to any choice of law rules thereof which may permit or require the
application of the laws of another jurisdiction. The Parties hereby irrevocably submit to the jurisdiction of the courts of the State of New York in the county of New York or of the United States of America in the Southern District of New York and
hereby waive, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of venue in an such action or proceeding in any such court.	
	 
	
8.      		
The Parties agree that the effectiveness of this Schedule Z Amendment requires the signature and delivery of all Parties set forth on the signature pages hereto and shall be ineffective as to any individual party absent such
signatures.	
	 

	
[remainder of this page left intentionally blank]

     IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Schedule Z Amendment Agreement to be executed by their duly authorized officers and to
be effective as of the day and year first above written.

	
PARTIES TO CREDIT AGREEMENT

THERMO NO. 1 BE-01, LLC, a Delaware limited liability company, as Company

	
By: 
		
 		
Intermountain Renewable Power, LLC 
	
	
Its: 
		
 		
Managing Member 
	
	
 
	
	
 
		
 		
By:/s/ Richard D. Clayton 
	
	
 
		
 		
Name: Richard D. Clayton 
	
	
 
		
 		
Title: Manager 
	

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent

	
By:/s/ Yana Kislenko __________________

Name: Yana Kislenko

Title: Assistant Vice President

	
By: /s/ Randy Kahn____________________

Name: Randy Kahn

Title: Vice President

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Agent

	
By: /s/ Yana Kislenko __________________

Name: Yana Kislenko

Title: Assistant Vice President

	
By: /s / Randy Kahn ___________________

Name: Randy Kahn

Title: Vice President

	
PARTIES TO CREDIT AGREEMENT

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey company, as Lender

By: /s/ Richard Carrell________________________________
 Name: Richard Carrell Title:Vice President

     IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Schedule Z Amendment Agreement to be executed by their duly authorized officers and to
be effective as of the day and year first above written.

PARTIES TO ACCOUNT AND SECURITY AGREEMENT

THERMO NO. 1 BE-01, LLC, a Delaware limited liability company

	
By: 
		
 		
Intermountain Renewable Power, LLC 
	
	
Its: 
		
 		
Managing Member 
	
	
 
	
	
 
		
 		
By:/s/ Richard D. Clayton 
	
	
 
		
 		
Name: Richard D. Clayton 
	
	
 
		
 		
Title: Manager 
	

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Collateral Agent

	
By:/s/ Yana Kislenko __________________

Name: Yana Kislenko

Title: Assistant Vice President

	
By: /s/ Randy Kahn____________________

Name: Randy Kahn

Title: Vice President

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Account Bank

	
By:/s/ Yana Kislenko __________________

Name: Yana Kislenko

Title: Assistant Vice President

	
By: /s/ Randy Kahn____________________

Name: Randy Kahn

Title: Vice President

PARTIES TO ACCOUNT AND SECURITY AGREEMENT

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Securities Intermediary

	
By:/s/ Yana Kislenko __________________

Name: Yana Kislenko

Title: Assistant Vice President

	
By: /s/ Randy Kahn____________________

Name: Randy Kahn

Title: Vice President

ACKNOWLEDGED:

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey company, as Administrative Lender

By: /s/ Richard Carrell________________________________
 Name: Richard Carrell Title:Vice President

     IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Schedule Z Amendment Agreement to be executed by their duly authorized officers and to
be effective as of the day and year first above written.

PARTIES TO LLC OPERATING AGREEMENT

INTERMOUNTAIN RENEWABLE POWER, LLC, a Delaware limited liability company

	 	
By:/s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Manager

MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED, a Delaware corporation, as Class A Investor

	
By: /s/ Faiz Ahmad ____________________

Name: Faiz Ahmad

Title: Director

     IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Schedule Z Amendment Agreement to be executed by their duly authorized officers and to
be effective as of the day and year first above written.

PARTIES TO EQUITY CAPITAL CONTRIBUTION AGREEMENT

INTERMOUNTAIN RENEWABLE POWER, LLC, a Delaware limited liability company

	 	
By:/s/ Richard D. Clayton

Name: Richard D. Clayton

Title: Manager

THERMO NO. 1 BE-01, LLC, a Delaware limited liability company, as Company

	
By: 
		
 		
Intermountain Renewable Power, LLC, a Delaware limited liability company 
	
	
Its: 
		
 		
Managing Member 
	
	
 
	
	
 
		
 		
By:/s/ Richard D. Clayton 
	
	
 
		
 		
Name: Richard D. Clayton 
	
	
 
		
 		
Title: Manager 
	

MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED, as Class A Investor

	
By: /s/ Faiz Ahmad ____________________

Name: Faiz Ahmad

Title: Director

     IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Schedule Z Amendment Agreement to be executed by their duly authorized officers and to
be effective as of the day and year first above written.

PARTIES TO ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT

THERMO NO. 1 BE-01, LLC, a Delaware limited liability company, as Owner

	
By: 
		
 		
Intermountain Renewable Power, LLC 
	
	
Its: 
		
 		
Managing Member 
	
	
 
	
	
 
		
 		
By:/s/ Richard D. Clayton 
	
	
 
		
 		
Name: Richard D. Clayton 
	
	
 
		
 		
Title: Manager 
	

RASER TECHNOLOGIES, INC., a Delaware corporation, as Contractor

	 	
By:/s/ Richard D. Clayton ________

Name: Richard D. Clayton

Title: Principal Executive Officer

     IN WITNESS WHEREOF, the Parties, intending to be legally bound, have caused this Schedule Z Amendment Agreement to be executed by their duly authorized officers and to
be effective as of the day and year first above written.

PARTIES TO OPERATION AND MAINTENANCE AGREEMENT

THERMO NO. 1 BE-01, LLC, a Delaware limited liability company, as Owner

	
By: 
		
 		
Intermountain Renewable Power, LLC 
	
	
Its: 
		
 		
Managing Member 
	
	
 
	
	
 
		
 		
By:/s/ Richard D. Clayton 
	
	
 
		
 		
Name: Richard D. Clayton 
	
	
 
		
 		
Title: Manager 
	

RASER POWER SYSTEMS, LLC, a Delaware limited liability company, as Operator

	
By: 
		
 		
Raser Technologies, Inc. 
	
	
Its: 
		
 		
Sole Member 
	
	
 
	
	
By:/s/ Richard D. Clayton
	
	
Name: Richard D. Clayton
	
	
 
		
 		
Title: Principal Executive Officer

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