Document:

Form of Settlement Agreement

 Exhibit 10.5 
 WAIVER OF RIGHT OF FIRST REFUSAL 
 THIS SETTLEMENT AGREEMENT AND WAIVER OF RIGHT OF FIRST REFUSAL (this “Agreement”) is made and entered into this 22nd day of June, 2007, by and between Quantum Fuel Systems Technologies Worldwide Inc. (“Company”) and each of the undersigned investors (each hereinafter named “Investor” and collectively
“Investors”). 
 WHEREAS, Company and Investors are parties to a certain Securities Purchase Agreement dated
October 27, 2006 (“Securities Purchase Agreement”); 
 WHEREAS, pursuant to Section 9.6 of the Securities Purchase
Agreement, each Investor has a right of first refusal (“Right of First Refusal”) to participate in certain offerings by Company of its common stock and common stock equivalents (“Subsequent Placements”); 
 WHEREAS, Company now desires to consummate a private placement transaction (“Private Placement”) under which it will sell and issue
shares of its common stock and warrants to acquire common stock pursuant to the Securities Purchase Agreement dated June 22, 2007 attached as Exhibit “A” hereto (the “2007 Securities Purchase Agreement”); 
 WHEREAS, Company acknowledges that the Private Placement is a Subsequent Placement pursuant to the Securities Purchase Agreement; 
 WHEREAS, to comply with applicable NASDAQ Marketplace Rules, Company has requested that each Investor waives its Right of First Refusal; and

 WHEREAS, subject to the terms and conditions of this Agreement, each Investor has agreed to waive its Right of First Refusal only
with respect to the Private Placement on the terms set forth in the 2007 Securities Purchase Agreement. 
 NOW, THEREFORE, the parties
agree as follows: 
 1. Waiver of Right of First Refusal. Investors hereby agree to waive their rights under
Section 9.6(b) of the Securities Purchase Agreement only with respect to the Private Placement on the terms set forth in the 2007 Securities Purchase Agreement. By executing this Agreement and accepting the consideration (as set forth below in
Section 2 below), upon completion of the Private Placement pursuant to the 2007 Securities Purchase Agreement each Investor agrees for itself and each of its affiliates not to sue, assert any claim or make any demand against Company alleging a
breach or default by Company of Section 9.6(b) in respect of the Private Placement. 
 2. Consideration to be Paid by
Company. At the closing of the Private Placement, Company shall issue to each Investor in accordance with Schedule 1 attached 

 
hereto, a warrant, in the form attached hereto as Exhibit “B” (“Warrants”), to purchase up to that number of shares of common stock
(“Warrant Shares”), $.001 par value, of the Company set forth opposite such Investor’s name on Schedule 1 attached hereto, at an exercise price equal to $2.09. Company agrees to include the Warrant Shares in the registration statement
required to be filed in connection with the Private Placement pursuant to the 2007 Securities Purchase Agreement. 
 3. Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the heirs, successors, administrators, legal representatives, and assigns of the parties. 
 4. Amendments; Waiver. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by Company and each Investor. Any waiver of a provision of this Agreement
must be in writing and executed by the party against whom enforcement of such waiver is sought. 
 5. Entire Agreement;
Severability. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations and understandings between the parties,
both oral and written relating to the subject matter hereof. If any provision contained in this Agreement is determined to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby. 
 6. Governing Law. ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. COMPANY AND INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY
OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS
NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR
PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD
AND SUFFICIENT SERVICE OF PROCESS AND NOTICE 

 
THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY AND INVESTORS
HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY. 
 7. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the
other parties. 
 [Signature on following page] 
  

 [Signature Page to Waiver] 
  

									
	COMPANY:	 		 	INVESTORS:
			
	 Quantum Fuel Systems
 Technologies
Worldwide, Inc.
	 		 	Iroquois Master Fund Ltd
					
	By:	 	  	 		 	By:	 	  
		 	Brian Olson	 		 		 	
	Its:	 	Chief Financial Officer	 		 	Its:	 	  
			
		 		 	Highbridge International, LLC
					
		 		 		 	By:	 	  
					
		 		 		 	Its:	 	  
			
		 		 	 Hudson Bay Fund LP
 Hudson Bay
Overseas Fund Ltd

					
		 		 		 	By:	 	  
					
		 		 		 	Its:	 	  
			
		 		 	Otago Partners, LLC
					
		 		 		 	By:	 	  
					
		 		 		 	Its:	 	  
			
		 		 	Rockmore Investment Master Fund Ltd.
					
		 		 		 	By:	 	  
					
		 		 		 	Its:	 	  
			
		 		 	 Special Situations Fund III QP, LP
 Special Situations Cayman Fund
 Special Situations Fund III, LP
 Special Situations Technology Fund II, LP
 Special Situations Technology Fund

					
		 		 		 	By:	 	  
					
		 		 		 	Its:	 	  

  

 SCHEDULE 1 
 ALLOCATION OF WARRANT SHARESPromissory Note

 Exhibit 10.1 
 PROMISSORY NOTE 
  

			
	$25,000,000	 	July 16, 2007

 FOR VALUE RECEIVED, ICG, LLC, a Delaware limited liability company and each of the other entities
set forth on the signature pages hereto, jointly and severally (collectively, the “Makers” and individually each a “Maker”), hereby promise to pay to the order of WLR Recovery Fund III, L.P. (the “Payee”), at 1166
Avenue of the Americas, 27th Floor, New York, New York 10036, or such other place as the Payee may designate in writing, in lawful money of the United States of America, the principal sum of TWENTY-FIVE MILLION DOLLARS ($25,000,000), or such lesser
amount as may be advanced hereunder, with interest thereon from the date hereof to and including the date this Note is paid in full. All principal and interest under this Note shall be due and payable in full on the earlier of (a) demand being
made by Payee (“Payment Demand”), (b) 90 days after the date above, and (c) the date that the Makers incur, create, assume or permit to exist, directly or indirectly, any indebtedness in excess of $5,000,000 in the aggregate or
issue any equity instrument resulting in proceeds to the Makers in excess of $5,000,000 in the aggregate. 
 Makers promise to pay interest
at a rate of interest equal to the average of interbank offered rates for one month U.S. dollar-denominated deposits in the London market, as published in The Wall Street Journal on the Determination Date (as defined below) plus 3.5% per
annum (“Base Interest Rate”) (calculated on an assumed year of 360 days, for the actual number of days elapsed) payable monthly in arrears on the first day of each month; notwithstanding the foregoing, upon the occurrence and during the
continuance of an Event of Default under this Note, all amounts under this Note that are then due and unpaid shall, to the extent permitted by applicable law, bear interest, after as well as before judgment and including post-petition interest in
any proceeding under the U.S. Bankruptcy Code or other applicable bankruptcy laws, payable on demand at a per annum rate equal to the Base Interest Rate then in effect plus 2% per annum. The “Determination Date” shall initially be
July 13, 2007 and thereafter shall be the first business day preceding the numerically corresponding day in the calendar month that is one month after the date interest begins to accrue at a Base Interest Rate. 
 The principal of or interest on this Note may be prepaid in whole or in part at any time and from time to time without premium. This Note shall be paid
without deduction by reason of any set-off, defense or counterclaim of the Makers. 
 The occurrence of any one or more of the following
events shall constitute an Event of Default under this Note: (i) the failure to pay principal of or interest on this Note when due or in the case of a Payment Demand, five days after Payee shall have given the Makers notice of the Payment
Demand; (ii) the commencement of a proceeding against any Maker for dissolution or liquidation, or the voluntary or involuntary termination or dissolution of such Maker; (iii) insolvency of, the appointment of a custodian, trustee,
liquidator or receiver for any of the property of, an assignment for the benefit of creditors by, or the filing of a petition under any bankruptcy, insolvency or debtor’s relief law, or for any readjustment of indebtedness, composition or
extension by or against any Maker, or (iv) the occurrence of an event of default under (a) the Second Amended and Restated Credit Agreement, dated as of June 23, 2006 (as 

 
amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among International Coal Group, Inc.,
as Holdings, the Maker, the Guarantors party thereto, the lenders party thereto (the “Lenders”), J.P. Morgan Securities Inc. and UBS Securities LLC, as Joint Lead Arrangers and Joint Bookrunners, JPMorgan Chase Bank, N.A. and CIT Capital
USA Inc., as Co-Syndication Agents, Bank of America, N.A. and Wachovia Bank, N.A., as Co-Documentation Agents, JPMorgan Chase Bank, N.A. and Bank of America, N.A., as Issuing Banks, UBS Loan Finance LLC, as Swingline Lender and UBS AG, Stamford
Branch, as Issuing Bank, Administrative Agent and Collateral Agent, or (b) the Indenture dated as of June 23, 2006, among International Coal Group, Inc., the guarantors named therein and The Bank of New York Trust Company, N.A., as
trustee. 
 The Makers agree that upon an Event of Default under this Note, then all or any part of the unpaid principal balance of and
interest on this Note, after written notice to the Makers, shall immediately become due and payable; provided however, that upon the occurrence of an Event of Default described in clauses (ii) and (iii) above or in clause 8(g) and 8(h)
under the Credit Agreement or clause 6.01(7) and 6.01(8) of the Indenture, the unpaid balance and accrued but unpaid interest shall become due and payable without notice or demand. If an Event of Default occurs, the Makers agrees to pay to the Payee
all expenses incurred by said Payee, including reasonable attorneys’ fees, in enforcing and collecting this Note. 
 THE MAKERS
ACKNOWLEDGES AND AGREES THAT THE INCLUSION HEREIN OF CERTAIN ENUMERATED EVENTS OF DEFAULT SHALL NOT BE CONSTRUED, IN ANY MANNER WHATSOEVER, TO ALTER THE “ON DEMAND” NATURE OF THE MAKERS’ OBLIGATIONS TO PAYEE HEREUNDER WITH RESPECT TO
THE PAYMENT OF PRINCIPAL AND INTEREST. 
 Failure of the Payee hereof to assert any right contained herein will not be deemed to be a
waiver thereof. 
 In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or
unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operate to invalidate this Note, then and in either of those events, such provision or provisions only shall be deemed null and
void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby. 
 Each Maker hereby confirms that it is the intention of all the parties that the obligations of such Maker under this Note not constitute a fraudulent
transfer or conveyance for purposes of the U.S. Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to the Note. To effectuate the foregoing
intention, the Payee and the Makers hereby irrevocably agree that the obligations of such Maker will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Maker
that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Maker in respect of the obligations of such other Maker under this Note, result in
the obligations of such Maker under this Note not constituting a fraudulent transfer or conveyance. 
  

 2 

 The Makers hereby forever waive presentment, presentment for payment, demand, protest, notice of protest,
notice of dishonor of this Note and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note. The Makers further agree, jointly and severally, to indemnify and hold harmless the Payee from
any and all damages, losses, costs and expenses (including, without limitation, attorneys’ fees and expenses) which the Payee may incur by reason of any Maker’s failure promptly to pay when due the indebtedness evidenced by this Note.

 This Note shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the principles
of conflicts of laws thereof, and shall be binding upon the successors and assigns of each Maker and shall inure to the benefit of the successors and assigns of Payee. Time is of the essence in the Makers’ performance of their obligations
hereunder. 
 [Signature pages to Note follow] 
  

 3 

			
	ICG, LLC
		
	By:	 	 /s/ Bradley W. Harris

	Name:	 	Bradley W. Harris
	Title:	 	SVP & CFO
	
	INTERNATIONAL COAL GROUP, INC.
		
	By:	 	 /s/ Bradley W. Harris

	Name:	 	Bradley W. Harris
	Title:	 	SVP & CFO
	
	ANKER COAL GROUP, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ANKER GROUP, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ANKER POWER SERVICES, INC.
		
	By:	 	 /s/ Roger L. Nicholson

	Name:	 	Roger L. Nicholson
	Title:	 	Secretary
	
	BRONCO MINING COMPANY, INC.
		
	By:	 	 /s/ Roger L. Nicholson

		
	Name:	 	Roger L. Nicholson
	Title:	 	Secretary

  

 4 

			
	COALQUEST DEVELOPMENT LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Treasurer
	
	HAWTHORNE COAL COMPANY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	HEATHER GLEN RESOURCES, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	HUNTER RIDGE COAL COMPANY
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG ADDCAR SYSTEMS, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG BECKLEY, LLC
		
	By:	 	 /s/ Roger L. Nicholson

	Name:	 	Roger L. Nicholson
	Title:	 	Secretary

  

 5 

			
	ICG EAST KENTUCKY, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG EASTERN, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG EASTERN LAND, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG HAZARD, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG HAZARD LAND, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG ILLINOIS, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President

  

 6 

			
	ICG, INC.
		
	By:	 	 /s/ Bradley W. Harris

	Name:	 	Bradley W. Harris
	Title:	 	SVP & CFO
	
	ICG KNOTT COUNTY, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG NATURAL RESOURCES, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	ICG TYGART VALLEY, LLC
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	JULIANA MINING COMPANY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	KING KNOB COAL CO., INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President

  

 7 

			
	MARINE COAL SALES COMPANY
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	MELROSE COAL COMPANY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	NEW ALLEGHENY LAND HOLDING COMPANY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	PATRIOT MINING COMPANY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	SIMBA GROUP, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President

  

 8 

			
	UPSHUR PROPERTY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	VANTRANS, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	VINDEX ENERGY CORPORATION
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	WHITE WOLF ENERGY, INC.
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President
	
	WOLF RUN MINING COMPANY
		
	By:	 	 /s/ William D. Campbell

	Name:	 	William D. Campbell
	Title:	 	Vice President

  

 9

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