Document:

Form of Securities Purchase Agreement

 Exhibit 10.2 
 FORM OF SECURITIES PURCHASE AGREEMENT 
 Quantum Fuel Systems Technologies Worldwide, Inc. 
 17872 Cartwright Road 
 Irvine, CA 92614 
 The undersigned investor
(the “Investor”) hereby confirms Investor’s agreement with Quantum Fuel Systems Technologies Worldwide, Inc. (“Quantum” or the “Company”) as follows: 
 1. This Securities Purchase Agreement is made as of the date set forth below between the Company and the Investor. 
 2. The Company has authorized the sale and issuance of up to [            ] shares (the “Shares”) of the
common stock of the Company, $0.001 par value per share (the “Common Stock”), to certain investors in a private placement and has authorized that each investor shall receive warrants to purchase that number of shares of the
Company’s Common Stock as specified herein at an exercise price of $             per share, exercisable at any time or from time to time on or prior to June 30, 2011 (the
“Common Stock Warrants” (the “Offering”). As used herein, “Warrants” shall mean the Common Stock Purchase Warrants, in the form attached as Exhibit
             hereto, and “Warrant Shares” shall mean the shares of the Common Stock issuable upon the exercise of the Warrants. The Shares, Warrants and Warrant Shares are
sometimes referred to collectively as the “Securities.” 
 3. The Company and the Investor agree that the Investor will
purchase from the Company and the Company will issue and sell to the Investor [            ] Shares at a purchase price of
[$            ] per Share, for an aggregate purchase price of [$            ] (the “Purchase
Price”), subject to the Terms and Conditions for Purchase of Shares attached hereto as Annex I and incorporated herein by reference as if fully set forth herein. Unless otherwise requested by the Investor in Exhibit “A”,
certificates representing the Shares purchased by the Investor will be registered in the Investor’s name and address as set forth below. In addition, Investor shall receive Warrants to purchase
[            ] shares of the Company’s Common Stock. 
 4. The
Investor represents that, except as set forth below, (a) it has had no position, office or other material relationship within the past three (3) years with the Company or its affiliates, (b) neither it, nor any group of which it is a
member or to which it is related, beneficially owns (including the right to acquire or vote) any securities of the Company, and (c) it has no direct or indirect affiliation or association with any National Association of Securities Dealers,
Inc. (“NASD”) member. Exceptions: 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 (If no exceptions,
write “none.” If left blank, response will be deemed to be “none.”) 
  

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 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space
provided below for that purpose. 
  

			
	 Dated as of: June __, 2006

	
	  
	[Investor Name]
		
	 By:   
	 	  
		 	 Name:
 Title:

			
		
	 Address:
	 	  
	  
	  

  

			
	 AGREED AND ACCEPTED:

	
	 Quantum Fuel Systems Technologies Worldwide, Inc.

		
	 By:
	 	  
		 	 Name:
 Title:

 [SECURITIES PURCHASE AGREEMENT SIGNATURE PAGE] 
  

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 ANNEX I 
 TERMS AND CONDITIONS FOR PURCHASE OF SHARES 
 1. Agreement to Sell and Purchase the Shares; Subscription Date. 
 1.1 Purchase and Sale. At the Closing (as defined in Section 2), the Company will sell to the
Investor, and the Investor will purchase from the Company, upon the terms and subject to the conditions set forth herein, and at the Purchase Price, the number of Shares described in paragraph 3 of the Securities Purchase Agreement attached hereto
(collectively with this Annex I and the other exhibits attached hereto, this “Agreement”). 
 1.2 Other Investors. As part of the Offering, the Company proposes to enter into Securities Purchase Agreements in the same form as this Agreement with certain other investors (the “Other Investors”), and the
Company expects to complete sales of Shares to them. The Investor and the Other Investors are sometimes collectively referred to herein as the “Investors,” and this Agreement, the Registration Rights Agreement and the Securities
Purchase Agreements executed by the Other Investors are sometimes collectively referred to herein as the “Agreements.” The Company may accept executed Agreements from Investors for the purchase of Shares commencing upon the date on
which the Company provides the Investors with the proposed purchase price per Share and concluding upon the date (the “Subscription Date”) on which the Company has notified Canaccord Adams, Inc. (in its capacity as placement agent
for the Shares, the “Placement Agent”) in writing that it will no longer accept Agreements for the purchase of Shares in the Offering, but in no event shall the Subscription Date be later than July 7, 2006. Each Investor must
execute and deliver a Securities Purchase Agreement and a Registration Rights Agreement and must complete a Stock Certificate Questionnaire (in the form attached as Exhibit “A” hereto) and an Investor Questionnaire (in the form attached as
Exhibit “B” hereto) in order to purchase Shares in the Offering. 
 1.3 Placement Agent
Fee. The Investor acknowledges that the Company intends to pay to the Placement Agent a fee in respect of the sale of Shares to the Investor from the proceeds of the Offering. 
 2. Delivery of the Shares at Closing. The completion of the purchase and sale of the Shares (the
“Closing”) shall occur on a date specified by the Company and the Placement Agent that is anticipated to be June 30, 2006 (the “Closing Date”), but which date shall not be later than July 7, 2006 (the
“Outside Date”), and of which the Investors will be notified in advance by the Placement Agent. At the Closing, the Company shall deliver to the Investor one or more stock certificates representing the number of Shares set forth in
paragraph 3 of the Stock Purchase Agreement, each such certificate to be registered in the name of the Investor or, if so indicated on the Stock Certificate Questionnaire, in the name of a nominee designated by the Investor, together with the
Warrant. In exchange for the delivery of the subscription agreements, the Investor shall deliver the Purchase Price directly to the Company by wire transfer of immediately available funds pursuant to written instructions. On the Closing Date, the
Company shall cause counsel to the Company to deliver to the Investors a legal opinion, dated the Closing Date, in form and content reasonably acceptable the Investors (the “Legal Opinion”). 
 The Company’s obligation to issue and sell the Shares to the Investor and to deliver to the Investor the Warrant shall be subject to
the following conditions, any one or more of which may be waived by the Company: (a) prior receipt by the Company of an executed copy of this Securities Purchase Agreement; (b) completion of purchases and sales of Shares under the
Agreements with the Other Investors; (c) the accuracy of the representations and warranties made by the Investor in this Agreement 

  

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and the fulfillment of the obligations of the Investor to be fulfilled by it under this Agreement on or prior to the Closing; and (d) the absence of any
order, writ, injunction, judgment or decree that questions the validity of the Agreements or the right of the Company or the Investor to enter into such Agreements or to consummate the transactions contemplated hereby and thereby. 
 The Investor’s obligation to purchase the Shares shall be subject to the following conditions, any one or more of which may be
waived by the Investor: (a) the completion of purchases and sales under the Agreements with the investors for an aggregate purchase price of not less than $10 million dollars ($10,000,000 and No/100); (b) the delivery of the Legal Opinion
to the Investor by counsel to the Company; (c) the accuracy of the representations and warranties made by the Company in this Agreement on the Closing Date; (c) the execution and delivery by the Company of the Registration Rights
Agreement; and (d) the absence of any order, writ, injunction, judgment or decree that questions the validity of the Agreements or the right of the Company or the Investor to enter into such Agreements or to consummate the transactions
contemplated hereby and thereby. 
 In the event that the Closing does not occur on or before the Outside Date as a result of
the Company’s failure to satisfy any of the conditions set forth above (and such condition has not been waived by the Investor), the Company shall return any and all funds paid hereunder to the Investor no later than one Business Day following
the Outside Date and the Investors shall have no further obligations hereunder. For purposes of this Agreement, “Business Day” shall mean any day other than a Saturday, Sunday or other day on which the New York Stock Exchange is
permitted or required by law to close. 
 3. Representations, Warranties and Covenants of the Company. Except
as otherwise described in the Company’s Annual Report on Form 10-K/A for the year ended April 30, 2005 (and any amendments thereto filed at least two (2) Business Days prior to the Closing Date), Company’s most recent Quarterly
Report on Form 10-Q (or Form 10-Q/A, as applicable) for the quarters ended January 31, 2006, October 31, 2005 and July 31, 2005 (and any amendments thereto filed at least two (2) Business Days prior to the Closing Date), the
Company’s Proxy Statement for its 2005 Annual Meeting of Shareholders, and any of the Company’s Current Reports on Form 8-K filed since January 31, 2006 (and any amendments thereto filed at least two (2) Business Days prior to
the Closing Date) (all collectively, the “SEC Reports”), the Company hereby represents and warrants to, and covenants with, the Investor as of the date hereof and the Closing Date, as follows: 
 3.1 Organization. The Company is duly incorporated and validly existing in good standing under the laws of the
State of Delaware. The Company has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is registered or qualified to do business and in good standing in each jurisdiction in which
it owns property or transacts business and where the failure to be so qualified would have a material adverse effect upon the Company and its subsidiaries as a whole or the business, financial condition, properties, operations or assets of the
Company and its subsidiaries as a whole or the Company’s ability to perform its obligations under the Agreements in all material respects (“Material Adverse Effect”), and no proceeding has been instituted in any such
jurisdiction revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power and authority or qualification. 
 3.2 Due Authorization. The Company has all requisite power and authority to execute, deliver and perform its obligations under the Agreements. The execution and delivery of the Agreements, and the consummation
by the Company of the transactions contemplated hereby, have been duly authorized by all necessary corporate action and no further action on the part of the Company or its Board of Directors or stockholders is required. The Agreements have been
validly executed and delivered by the Company and constitute legal, valid and binding agreements of the Company enforceable against 

  

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the Company in accordance with their terms, except to the extent (i) rights to indemnity and contribution may be limited by state or federal securities
laws or the public policy underlying such laws, (ii) such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally
and (iii) such enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 3.3 No Conflict or Default. The execution and delivery of the Agreements, the issuance and sale of the
Shares to be sold by the Company under the Agreements, the fulfillment of the terms of the Agreements and the consummation of the transactions contemplated thereby will not: (A) result in a conflict with or constitute a material violation of,
or material default (with the passage of time or otherwise) under, (i) any bond, debenture, note, loan agreement or other evidence of indebtedness, or any material lease, or contract to which the Company is a party or by which the Company or
their respective properties are bound, (ii) the Certificate of Incorporation, by-laws or other organizational documents of the Company, as amended, or (iii) any law, administrative regulation, or existing order of any court or governmental
agency, or other authority binding upon the Company or the Company’s respective properties; or, (B) result in the creation or imposition of any lien, encumbrance, claim, or security interest upon any of the material assets of the Company
or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or
instrument to which the Company is a party or by which it is bound or to which any of the property or assets of the Company is subject, that would have a Material Adverse Effect. No consent, approval, authorization or other order of, or
registration, qualification or filing with, any regulatory body, administrative agency, or other governmental body is required for the execution and delivery of the Agreements by the Company and the valid issuance or sale of the Shares by the
Company pursuant to the Agreements, other than such as have been made or obtained, and except for any filings required to be made under federal or state securities laws. 
 3.4 Capitalization. The outstanding capital stock of the Company is as described in the Company’s
Quarterly Report on Form 10-Q/A for the three month period ending January 31, 2006 and the private placement memorandum dated June 21, 2006 (the “Memorandum”) provided to Investor. Except as described in the SEC Reports or the
Memorandum, the Company has not issued any capital stock, other than pursuant to the purchase of shares under the Company’s employee stock option plan and the exercise of outstanding warrants or stock options, in each case as disclosed in the
Memorandum or the SEC Reports. The Shares and Warrant Shares to be sold pursuant to the Agreements and the Common Stock Purchase Warrants have been duly authorized, and when issued and paid for in accordance with the terms of the Agreements and the
Common Stock Purchase Warrants, will be duly and validly issued, fully paid and nonassessable, subject to no lien, claim or encumbrance (except for any such lien, claim or encumbrance created, directly or indirectly, by the Investor). The
outstanding shares of capital stock of the Company have been duly and validly issued and are fully paid and nonassessable, have been issued in compliance with the registration requirements of federal and state securities laws, and were not issued in
violation of any preemptive rights or similar rights to subscribe for or purchase securities. The Company owns one hundred percent of all of the outstanding capital stock of each of its subsidiaries, free and clear of all liens, claims and
encumbrances. There are not (i) any outstanding preemptive rights, or (ii) any rights, warrants or options to acquire, or instruments convertible into or exchangeable for, any unissued shares of capital stock or other equity interest in
the Company not disclosed in the SEC Reports or Memorandum, or (iii) any contract, commitment, agreement, understanding or arrangement of any kind to which the Company is a party that would provide for the issuance or sale of any capital stock
of the Company, any such convertible or exchangeable securities or any such rights, warrants or options not disclosed in the SEC Reports or the Memorandum. There are no shareholders agreements, voting 

  

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agreements or other similar agreements with respect to the Common Stock to which the Company is a party, other than as described in SEC Reports or the
Memorandum. 
 3.5 Legal Proceedings. There is no material legal or governmental proceeding
pending, or to the actual knowledge of the Company, threatened, to which the Company is a party or of which the business or property of the Company is subject that is required to be disclosed and that is not so disclosed in the SEC Reports. Other
than the information disclosed in the SEC Reports, the Company is not subject to any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other government body. 
 3.6 No Violations. The Company is not in violation of its Certificate of Incorporation, bylaws or other
organizational documents, as amended, that is reasonably likely to have a Material Adverse Effect. The Company is not in violation of any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or
authority applicable to the Company, which violation, individually or in the aggregate, is reasonably likely to have a Material Adverse Effect. The Company is not in default (and there exists no condition which, with the passage of time or
otherwise, would constitute a default) in the performance of any bond, debenture, note or any other evidence of indebtedness or any indenture, mortgage, deed of trust or any other material agreement or instrument to which the Company is a party or
by which the Company is bound, which such default is reasonably likely to have a Material Adverse Effect upon the Company. 
 3.7 Governmental Permits, Etc. The Company has all necessary franchises, licenses, certificates and other authorizations from any foreign, federal, state or local government or governmental agency,
department or body that are currently necessary for the operation of the business of the Company as currently conducted, except where the failure to currently possess such franchises, licenses, certificates and other authorizations is not reasonably
likely to have a Material Adverse Effect. 
 3.8 Intellectual Property. 
 (a) Except for matters which are not reasonably likely to have a Material Adverse Effect, (i) each of the
Company has ownership of, or a license or other legal right to use, all patents, copyrights, trade secrets, trademarks, customer lists, designs, manufacturing or other processes, computer software, systems, data compilation, research results or
other proprietary rights used in the business of the Company (collectively, “Intellectual Property”) and (ii) all of the Intellectual Property owned by the Company consisting of patents, registered trademarks and registered
copyrights have been duly registered in, filed in or issued by the United States Patent and Trademark Office, the United States Register of Copyrights or the corresponding offices of other jurisdictions and have been maintained and renewed in
accordance with all applicable provisions of law and administrative regulations in the United States and/or such other jurisdictions. 
 (b) Except for matters which are not reasonably likely to have a Material Adverse Effect, all material licenses or other material agreements under which (i) the Company employs rights in Intellectual
Property, or (ii) the Company has granted rights to others in Intellectual Property owned or licensed by the Company are in full force and effect, and there is no default by the Company with respect thereto. 
 (c) The Company believes that it has taken all steps reasonably required in accordance with sound business practice
and business judgment to establish and preserve the ownership of the Company’s material Intellectual Property. 
  

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 (d) Except for matters which are not reasonably likely to have a
Material Adverse Effect, to the actual knowledge of the Company, (i) the present business, activities and products of the Company do not infringe any intellectual property of any other person; (ii) neither the Company is making
unauthorized use of any confidential information or trade secrets of any person; and (iii) the activities of any of the employees of the Company, acting on behalf of the Company, do not materially violate any agreements or arrangements related
to confidential information or trade secrets of third parties. 
 (e) Except for matters which are not
reasonably likely to have a Material Adverse Effect, and except as disclosed in the SEC Reports, no proceedings are pending, or to the knowledge of the Company, threatened, which challenge the rights of the Company to the use the Company’s
Intellectual Property. 
 3.9 Financial Statements. The financial statements of the Company and
the related notes contained in the SEC Reports present fairly and accurately in all material respects the financial position of the Company as of the dates therein indicated, and the results of its operations, cash flows and the changes in
shareholders’ equity for the periods therein specified, subject, in the case of unaudited financial statements for interim periods, to normal year-end audit adjustments. Such financial statements (including the related notes) have been prepared
in accordance with generally accepted accounting principles applied on a consistent basis at the times and throughout the periods therein specified, except that unaudited financial statements may not contain all footnotes required by generally
accepted accounting principles. 
 3.10 No Material Adverse Change. Except as disclosed in the
SEC Reports or in any press releases issued by the Company at least two (2) Business Days prior to the Closing Date, there has not been (i) an event, circumstance or change that has had or is reasonably likely to have a Material Adverse
Effect upon the Company, (ii) any obligation incurred by the Company that is material to the Company, (iii) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company, or (iv) any loss or
damage (whether or not insured) to the physical property of the Company which has had a Material Adverse Effect. 
 3.11 Nasdaq Compliance. The Company’s Common Stock is registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is listed on the Nasdaq
National Market (“Nasdaq”), and the Company has taken no action intended to, or which to its actual knowledge could have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common
Stock from Nasdaq. The Company’s Series B Common Stock is not publicly traded. 
 3.12
Reporting Status. The Company has timely made all filings required under the Exchange Act during the twelve (12) months preceding the date of this Agreement, and all of those documents complied in all material respects with the
SEC’s requirements as of their respective filing dates, and the information contained therein as of the respective dates thereof did not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading. The Company is currently eligible to register the resale of Common Stock by the Investors pursuant to a registration
statement on Form S-3 under the Securities Act or on such other form as may be available to the Company (the “Registration Statement”). 
 3.13 No Manipulation; Disclosure of Information. The Company has not taken and will not take any action designed to or that might reasonably be expected to cause or result in an
unlawful 

  

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manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. The Company has not disclosed any material non-public
information to the Investors. 
 3.14 Accountants. Ernst & Young LLP, who expressed
their opinion with respect to the consolidated financial statements to be incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended April 30, 2005 into the Registration Statement and the prospectus which
forms a part thereof (the “Prospectus”), have advised the Company that they are independent accountants as required by the Securities Act and the rules and regulations promulgated thereunder. 
 3.15 Contracts. Except for matters which are not reasonably likely to have a Material Adverse Effect and
those contracts that are substantially or fully performed or expired by their terms, the contracts listed as exhibits to or described in the SEC Reports that are material to the Company and all amendments thereto, are in full force and effect on the
date hereof, and neither the Company nor, to the Company’s actual knowledge, any other party to such contracts is in material breach of or default under any of such contracts. 
 3.16 Taxes. Except for tax matters which are not reasonably likely to have a Material Adverse Effect, each
of the Company and each of its Subsidiaries has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon. 
 3.17 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) which
are required to be paid in connection with the sale and transfer of the Shares hereunder will be, or will have been, fully paid or provided for by the Company and the Company will have complied with all laws imposing such taxes. 
 3.18 Investment Company. The Company is not an “investment company” or an “affiliated
person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the Investment Company Act of 1940, as amended, and will not be deemed an “investment company” as a result of
the transactions contemplated by this Agreement. 
 3.19 Insurance. The Company maintains
insurance of the types and in the amounts that the Company reasonably believes is adequate for its businesses, including, but not limited to, insurance covering real and personal property owned or leased by the Company against theft, damage,
destruction, acts of vandalism and all other risks customarily insured against by similarly situated companies, all of which insurance is in full force and effect. 
 3.20 Offering Prohibitions. Neither the Company nor to its actual knowledge any person acting on its behalf
or at its direction has in the past or will in the future take any action to sell, offer for sale or solicit offers to buy any securities of the Company which would bring the offer or sale of the Shares as contemplated by this Agreement within the
provisions of Section 5 of the Securities Act. 
 3.21 Listing. The Company shall comply
with all requirements with respect to the issuance of the Shares and the listing thereof on Nasdaq. 
 3.22 Related Party Transactions. Other than described in the SEC Reports, to the knowledge of the Company, no transaction has occurred between or among the Company or any of its affiliates, officers or directors or any
affiliate or affiliates of any such officer or director that with the passage of time are reasonably likely be required to be disclosed pursuant to Section 13, 14 or 15(d) of the Exchange Act. 
  

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 3.23 Books and Records. The books, records and accounts of
the Company accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the operations of, the Company. The Company maintains a system of internal accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
 3.24 Securities Law Representation Private Placement. Assuming the accuracy of the representations of each of the Investors, no consent, authorization, approval, permit or order of or filing with any
governmental or regulatory authority is required under current laws and regulations in connection with the execution and delivery of this Agreement or the offer, issuance, sale or delivery of the Shares or the Warrant Shares, other than the
qualification thereof, if required, under applicable state securities law, which qualification has been or will be effected as a condition of these sales and the filing of a Form D with the Securities and Exchange Commission (the “SEC”) in
connection with the transactions contemplated by this Agreement. Under the circumstances contemplated by this Agreement, the offer, issuance, sale and delivery of the Shares will not, under current laws and regulations, require compliance with
the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). 
 4.
Representations, Warranties and Covenants of the Investor. 
 4.1 Investor Knowledge and
Status. The Investor represents and warrants to, and covenants with, the Company that: (i) the Investor is an “accredited investor” as defined in Regulation D under the Securities Act, is knowledgeable, sophisticated and
experienced in making, and is qualified to make decisions with respect to, investments in securities presenting an investment decision similar to that involved in the purchase of the Securities, and has requested, received, reviewed and considered
all information it deemed relevant in making an informed decision to purchase the Securities; (ii) the Investor understands that the Securities are “restricted securities” and have not been registered under the Securities Act and is
acquiring the number of Securities set forth in paragraph 3 of the Securities Purchase Agreement in the ordinary course of its business and for its own account for investment only, has no present intention of distributing any of such Securities and
has no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and warranty not limiting the Investor’s right to sell Securities pursuant to a Registration Statement filed under the
Registration Rights Agreement or otherwise, or other than with respect to any claim arising out of a breach of this representation and warranty, the Investor’s right to indemnification under Section 3 of the Registration Rights Agreement);
(iii) the Investor will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Securities except in compliance with the
Securities Act, applicable state securities laws and the respective rules and regulations promulgated thereunder; (iv) the Investor has answered all questions in paragraph 4 of the Securities Purchase Agreement and the Investor Questionnaire
attached hereto as Exhibit B for use in preparation of the Registration Statement and the answers thereto are true and correct as of the date hereof and will be true and correct as of the Closing Date; (v) the Investor will notify the Company
promptly of any change in any of such information until such time as the Investor has sold all of its Securities or until the Company is no longer required to keep the Registration Statement effective; and (vi) the Investor has, in connection
with its decision to purchase the number of Securities set forth in 

  

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paragraph 3 of the Securities Purchase Agreement, relied upon the representations and warranties of the Company contained herein and the information
contained in the SEC Reports. The Investor understands that the issuance of the Securities to the Investor has not been registered under the Securities Act, or registered or qualified under any state securities law, in reliance on specific
exemptions therefrom, which exemptions may depend upon, among other things, the representations made by the Investor in this Agreement. No person (including without limitation the Placement Agent) is authorized by the Company to provide any
representation that is inconsistent with or in addition to those contained herein or in the SEC Reports, and the Investor acknowledges that it has not received or relied on any such representations. 
 4.2 Transfer of Securities. The Investor agrees that it will not make any sale, transfer or other
disposition of the Securities (a “Disposition”) other than Dispositions that are made pursuant to the Registration Statement in compliance with any applicable prospectus delivery requirements or that are exempt from registration
under the Securities Act. Investor has not taken and will not take any action designed to or that might reasonably be expected to cause or result in manipulation of the price of the Common Stock to facilitate the subscription to, or the sale or
resale of the Securities. Investor represents and warrants that the Company has not disclosed any material non-public information to the Investor. 
 4.3 Power and Authority. The Investor represents and warrants to the Company that (i) the Investor has full right, power, authority and capacity to enter into this Agreement
and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, and (ii) this Agreement constitutes a valid and binding obligation of the Investor
enforceable against the Investor in accordance with its terms, except to the extent (i) rights to indemnity and contribution may be limited by state or federal securities laws or the public policy underlying such laws, (ii) such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and (iii) such enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 4.4 No Short Position. During the last thirty (30) days prior to the date hereof, Investor nor any affiliate of Investor, foreign or domestic, has, directly or indirectly, effected or agreed to effect any “short sale”
(as defined in Rule 200 under Regulation SHO), whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the 1934 Act) with respect to the Company’s common stock, borrowed or
pre-borrowed any shares of the Company’s common stock, or granted any other right (including, without limitation, any put or call option) with respect to the Company’s common stock or with respect to any security that includes, relates to
or derived any significant part of its value from the Company’s common stock or otherwise sought to hedge its position in the Shares, Warrants and Warrant Shares (each, a “Prohibited Transaction”). Prior to the earliest to occur of
(i) the termination of the Offering, (ii) the date the Registration Statement (defined below) is declared effective by the Securities and Exchange Commission (the “SEC”) or (iii) the Required Effective Date (as defined
below), Investor shall not, and shall cause its affiliates not to, engage, directly or indirectly, in (a) a Prohibited Transaction nor (b) any sale, assignment, pledge, hypothecation, put, call, or other transfer of any of the Shares, or
Warrants or other securities of the Company acquired hereunder. 
 4.5 No Investment, Tax or Legal
Advice. The Investor understands that nothing in the SEC Reports, this Agreement, or any other materials presented to the Investor in connection with the purchase and sale of the Securities constitutes legal, tax or investment advice. The
Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of Securities. 
  

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 4.6 Confidential Information. The Investor covenants that
from the date hereof it will maintain in confidence all material non-public information regarding the Company received by the Investor from the Company, including the receipt and content of any Suspension Notice (as defined in the Registration
Rights Agreement)) until such information (a) becomes generally publicly available other than through a violation of this provision by the Investor or its agents or (b) is required to be disclosed in legal proceedings (such as by
deposition, interrogatory, request for documents, subpoena, civil investigation demand, filing with any governmental authority or similar process); provided, however, that before making any disclosure in reliance on this Section 4.6, the
Investor will give the Company at least fifteen (15) days prior written notice (or such shorter period as required by law) specifying the circumstances giving rise thereto and will furnish only that portion of the non-public information which
is legally required and will exercise its commercially reasonable efforts to ensure that confidential treatment will be accorded any non-public information so furnished. The parties acknowledge and agree that as of the date hereof and as of the
Closing Date, the Company has not disclosed any material non-public information to the Investor. 
 4.7
Acknowledgments Regarding Placement Agent. The Investor acknowledges that the Placement Agent has acted solely as placement agent for the Company in connection with the Offering of the Securities by the Company, and that the
Placement Agent has made no representation or warranty whatsoever with respect to the accuracy or completeness of information, data or other related disclosure material that has been provided to the Investor. The Investor further acknowledges that
in making its decision to enter into this Agreement and purchase the Securities, it has relied on its own examination of the Company and the terms of, and consequences of holding, the Securities. The Investor further acknowledges that the provisions
of this Section 4.7 are for the benefit of, and may be enforced by, the Placement Agent. Investor has not received any general solicitation or advertising regarding the Offering and Investor has not been furnished with any oral or written
representation or information in connection with the Offering which is not contained in the SEC Reports or set forth in the Memorandum. 
 4.8 Additional Acknowledgement. Investor has thoroughly reviewed and the SEC Reports and the Memorandum (the “Disclosure Documents”) prior to making this investment. Investor has been granted a
reasonable time prior to the date hereof during which we have had the opportunity to obtain such additional information as Investor deems necessary to permit Investor to make an informed decision with respect to the purchase of the Common Stock.
After examination of the SEC Reports and other information available, Investor is fully aware of the business prospects, financial condition, risks associated with investment and the operating history relating to the Company, and therefore in
subscribing for the purchase of the Securities, Investor is not relying upon any information other than information contained in the Disclosure Documents. The Investor acknowledges that it has independently evaluated the merits of the transactions
contemplated by this Agreement, that it has independently determined to enter into the transactions contemplated hereby, that it is not relying on any advice from or evaluation by any Other Investor, and that it is not acting in concert with any
Other Investor in making its purchase of the Securities hereunder. The Investor, together with other purchasers of the Companies Securities in the Offering, have not taken any actions that would deem the Investors to be members of a
“group” for purposes of Section 13(d) of the Exchange Act. 
 4.9 No General
Solicitation. Investor is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio
or presented at any seminar or any other general solicitation or general advertisement. 
  

 Page 11 of 20 

 4.10 Reliance on Exemptions. Investor acknowledges that the
Securities are being offered and sold to it by the Company in reliance on specific exemptions from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws and that the Company is relying on the
truth and accuracy of, and Investor’s compliance with, the representations, covenants, warranties, agreements, acknowledgments and understandings of Investor set forth herein in order to determine the availability of such exemptions and the
eligibility of Investor to acquire the Securities. 
 4.11 Other. Purchaser agrees to the imprinting,
so long as is required under applicable federal and state securities laws, of a legend on each certificate evidencing the Securities in substantially the following form: 
 THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THESE SHARES UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL THAT REGISTRATION IS
NOT REQUIRED UNDER THE ACT. 
 The legend set forth above shall be removed and the Company shall issue a certificate
without such legend to the holder of the Shares upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at DTC, if (i) such Shares are registered for resale under the Securities Act,
(ii) such Shares are sold or transferred pursuant to Rule 144 (assuming the transferor is not an Affiliate of the Company), (iii) such Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under
applicable requirements of the Securities Act (including controlling judicial interpretations and pronouncements issued by the Commission). The Company shall cause its counsel to issue the legal opinion referred to in the Irrevocable Transfer Agent
Instructions to the Company’s transfer agent on the Effective Date. Any fees (with respect to the Transfer Agent, counsel to the Company or otherwise) associated with the issuance of such opinion or the removal of such legend shall be borne by
the Company. Following the Effective Date or at such earlier time as a legend is no longer required for certain Shares, the Company will no later than three (3) Trading Days following the delivery by a Purchaser to the Company or the Transfer
Agent (with notice to the Company) of a legended certificate representing such Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer and an opinion of counsel
to the extent required by Section 4.1(a)), deliver or cause to be delivered to such Purchaser a certificate representing such Shares that is free from all restrictive and other legends. The Company may not make any notation on its records or
give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section. 
 5.
Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent, all covenants, agreements, representations and warranties made by the Company and the
Investor herein shall survive the execution of this Agreement, the delivery to the Investor of the Securities being purchased and the payment therefor, and a party’s reliance on such representations and warranties shall not be affected by any
investigation made by such party or any information developed thereby. 
  

 Page 12 of 20 

 6. Registration of Shares; Public Statements. 
 6.1 In connection with the purchase and sale of the Shares by the Investors contemplated hereby, the Company has
entered into a Registration Rights Agreement with each Investor providing for the filing by the Company of a Registration Statement on Form S-3 to enable the resale of the Shares, the Warrants and the Warrant Shares by the Investors from time to
time. 
 6.2 The Company agrees to disclose on a Current Report on Form 8-K the existence of the
Offering and the material terms, thereof, including pricing, within three (3) Business Day after the Closing. The Company will not issue any public statement, press release or any other public disclosure listing the Investor as one of the
purchasers of the Securities without the Investor’s prior review of the statement and prior consent thereto, except as may be required by applicable law or rules of any exchange on which the Company’s securities are listed. 
 7. Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be delivered
(A) if within the United States, by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if from outside the United States, by International Federal
Express (or comparable service) or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail domestic, upon the Business Day received, (ii) if delivered by nationally recognized overnight carrier,
one (1) Business Day after timely delivery to such carrier, (iii) if delivered by International Federal Express (or comparable service), two (2) Business Days after timely delivery to such carrier, (iv) if delivered by facsimile,
upon electric confirmation of receipt and shall be addressed as follows, or to such other address or addresses as may have been furnished in writing by a party to another party pursuant to this paragraph: 
  

	 	 (a)
	 if to the Company, to: 

 Quantum Fuel Systems Technologies Worldwide, Inc. 
 178 72 Cartwright Road 
 Irvine, CA 92614 
 Attention: Brian Olson 
 Telephone: (949) 399-4500 
 Fax: (949) 474-3086 
 with a copy to: 
 Kerr, Russell and Weber, PLC 
 Attention: Patrick Haddad 
 500 Woodward Ave., Suite 2500 
 Detroit, MI 48226-3427 
 Telephone: (313) 961-0200 
 Fax: (313) 961-0388 
 (b) if to the Investor, at its address on
the signature page to the Stock Purchase Agreement. 
 8. Amendments; Waiver. This Agreement may not be
modified or amended except pursuant to an instrument in writing signed by the Company and the Investor. Any waiver of a provision of this 

  

 Page 13 of 20 

 
Agreement must be in writing and executed by the party against whom enforcement of such waiver is sought. 
 9. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only
and shall not be deemed to be part of this Agreement. 
 10. 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. 
 11. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without giving effect to the principles of conflicts of law. 
 12. 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. 
  

 Page 14 of 20 

 EXHIBIT A 
 STOCK CERTIFICATE QUESTIONNAIRE 
 Please provide us with the
following information: 
  

					
			
	 1.
	  	 The exact name in which your Securities are to be registered (this is the name that will appear on your stock certificate(s)). You may use a nominee name if
appropriate:
	  	
			
	 2.
	  	 If a nominee name is listed in response to item 1 above, the relationship between the Investor and such nominee:
	  	
			
	 3.
	  	 The mailing address of the registered holder listed in response to item 1 above:
	  	
			
	 4.
	  	 The Social Security Number or Tax Identification Number of the registered holder listed in the response to item 1 above:
	  	

  

 A-1 

 EXHIBIT B 
 INVESTOR QUESTIONNAIRE 
 (All information will be treated confidentially)

  

	 To:
	 Quantum Fuel Systems Technologies Worldwide, Inc. 

  

	     
	 The undersigned hereby acknowledges the following: 

 This Investor Questionnaire (“Questionnaire”) must be completed by each potential investor in connection with the offer and sale of the shares of the common stock, par value
$0.001 per share (the “Shares”), of Quantum Fuel Systems Technologies Worldwide, Inc. (the “Company”). The Shares are being offered and sold by the Company without registration under the Securities Act of 1933, as
amended (the “Securities Act”), and the securities laws of certain states, in reliance on the exemptions contained in Section 4 of the Securities Act and on Regulation D promulgated thereunder and in reliance on similar
exemptions under applicable state laws. The Company must determine that a potential investor meets certain suitability requirements before offering or selling Shares to such investor. The purpose of this Questionnaire is to assure the Company that
each investor will meet the applicable suitability requirements. The information supplied by the undersigned will be used in determining whether the undersigned meets such criteria, and reliance upon the private offering exemption from registration
is based in part on the information herein supplied. 
 This Questionnaire does not constitute an offer to sell or a
solicitation of an offer to buy any security. The undersigned’s answers will be kept strictly confidential. However, by signing this Questionnaire the undersigned will be authorizing the Company to provide a completed copy of this Questionnaire
to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Shares will not result in a violation of the Securities Act or the securities laws of any state and that the undersigned otherwise satisfies the
suitability standards applicable to purchasers of the Shares. All potential investors must answer all applicable questions and complete, date and sign this Questionnaire. The undersigned shall print or type its responses and attach additional sheets
of paper if necessary to complete its answers to any item. 
  

	 A.
	 BACKGROUND INFORMATION 

  

	 Name:                                     
                                        
                                        
                                        
                                        
       
	 

  

	 Business
	 Address:                                     
                                        
                                        
                                        
                              

 (Number and Street) 
 ___________________________________________________________________________________________________________ 
 (City)                                      
                                      
(State)                                       
                                        
      (Zip Code) 
  

	 Telephone
	 Number:
(            )                           
                                        
                                        
                                        
                      

  

	 Residence
	 Address:                                     
                                        
                                        
                                        
                            

 (Number and Street) 
 ___________________________________________________________________________________________________________ 
 (City)                                      
                                      
(State)                                       
                                        
      (Zip Code) 
  
  

	 Telephone
	 Number:
(            )                           
                                        
                                        
                                        
                      

 If an individual: 
  

	 Age:                
	                                     Citizenship:
                    
                                    Where registered to
vote:                                    

  

 B-1 

 If a corporation, partnership, limited liability company, trust or other entity: 
 Type of
entity:                                       
                                        
                                        
                                        
                              
  

	 State
	 of
formation:                                     
                                        
                       Date of
formation:                                      
               

  

	 Social
	 Security or Taxpayer Identification
No.                                       
                                        
                                        
                  

 Send all
correspondence to (check one):  ̈ Residence Address
                                        
                                 ̈ Business Address 
  

	 B.
	 STATUS AS ACCREDITED INVESTOR 

 The undersigned is an “accredited investor” as such term is defined in Regulation D under the Securities Act, because at the time of the sale of
the Shares the undersigned falls within one or more of the following categories (Please initial one or more, as applicable): 
  ̈ (1) a bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in
Section 2(13) of the Securities Act; an investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that act; a Small Business Investment Company licensed by
the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its
political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by
a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or,
if a self-directed plan, with the investment decisions made solely by persons that are accredited investors;1

  ̈ (2) a private business
development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; 
  ̈ (3) an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, corporation, Massachusetts or similar business trust, or partnership, not formed for
the specific purpose of acquiring the Shares offered, with total assets in excess of $5,000,000; 
  ̈ (4) a natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of such person’s purchase of the Shares exceeds $1,000,000;

  ̈ (5) a natural person who had an
individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the
current year; 
  

	 1
	 As used in this Questionnaire, the term “net worth” means the excess of total assets over total liabilities. In computing net worth for
the purpose of subsection (4), the principal residence of the investor must be valued at cost, including cost of improvements, or at recently appraised value by a professional appraiser. In determining income, the investor should add to the
investor’s adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership, deductions claimed for depreciation, contributions to an IRA or KEOGH retirement plan,
alimony payments, and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income. 

  

 B-2 

  ̈ (6) a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D; and

  ̈ (7) an entity in which all of
the equity owners are accredited investors (as defined above). 
  

	 C.
	 REPRESENTATIONS 

 The undersigned hereby represents and warrants to the Company as follows: 
 1. Any purchase of the Shares
would be solely for the account of the undersigned and not for the account of any other person or with a view to any resale, fractionalization, division, or distribution thereof. 
 2. The information contained herein is complete and accurate and may be relied upon by the Company, and the undersigned will
notify the Company immediately of any material change in any of such information occurring prior to the closing, if any, with respect to the purchase of Shares by the undersigned or any co-purchaser. 
 3. The undersigned acknowledges that there may occasionally be times when the Company, based on the advice of its counsel,
determines that it must suspend the use of the Prospectus forming a part of the Registration Statement (as such terms are defined in the Stock Purchase Agreement to which this Questionnaire is attached) until such time as an amendment to the
Registration Statement has been filed by the Company and declared effective by the Securities and Exchange Commission or until the Company has amended or supplemented such Prospectus. The undersigned is aware that, in such event, the Shares will not
be subject to ready liquidation, and that any Shares purchased by the undersigned would have to be held during such suspension. The overall commitment of the undersigned to investments which are not readily marketable is not excessive in view of the
undersigned’s net worth and financial circumstances, and any purchase of the Shares will not cause such commitment to become excessive. The undersigned is able to bear the economic risk of an investment in the Shares. 
 4. The following is a list of all states and other jurisdictions in which blue sky or similar clearance will be required in
connection with the undersigned’s purchase of the Shares: 

	
	
	   
	
	   
	
	   

 The undersigned agrees to notify the Company in writing of any additional states or other
jurisdictions in which blue sky or similar clearance will be required in connection with the undersigned’s purchase of the Shares. 
  

 B-3 

 IN WITNESS WHEREOF, the undersigned has executed this Questionnaire on [July [__], 2006], and declares
under oath that it is truthful and correct. 
  

			
	 Print Name

		
	 By:   
	 	  
	 Signature

		
	 Title:
	 	  
		 	 (required for any purchaser that is a corporation, partnership, trust or other entity)

 ACCEPTED ON BEHALF OF THE COMPANY: 
  

									
	 QUANTUM FUEL SYSTEMS TECHNOLOGIES
	 		 	 Shares Purchased:
                                    

	 WORLDWIDE, INC.
	 		 	  
 Dollar
Amount Invested:

				
	 BY:
	 	  	 		 	
		 	 Name:
 Title:
	 		 	 $__________________________________

  

 B-4 

 SCHEDULE 1 
 TO 
 FORM SECURITIES PURCHASE AGREEMENT 
 LIST OF SELLING SECURITY HOLDERS 
  
  

	
	 Fort Mason Partners, LP

	 Fort Mason Master, LP

	 SRB Greenway Capital (QP), L.P.

	 SRB Greenway Capital, L.P.

	 SRB Greenway Offshore Operating Fund

	 Walker Smith International Fund, Ltd.

	 Walker Smith Capital (QP), L.P.

	 Walker Smith Capital, L.P.

	 HHMI Investments, L.P.

	 Jessie Smith Noyes Foundation

	 Farrell Distributing Corporation Pension Plan

	 Winslow Green Growth Fund

	 Needmor Fund

	 Great Lakes Protection Fund

	 Scenic Hudson, Inc.

	 Winslow Hedge Fund, L.P.

	 Jupiter Green Investment Trust

	 Lagunitas Partners LP

	 Gruber & McBaine International

	 Jon D & Linda W Gruber Trust

	 J. Patterson McBaine

	 Enable Opportunity Partners, L.P

	 Pierce Diversified Strategy Master Fund, LLC, ENA

	 Enable Growth Partners, L.PCommon Stock Purchase Warrant

 Exhibit 10.3 
 THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, ASSIGNED OR TRANSFERRED, IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF THE COMPANY’S COUNSEL THAT REGISTRATION UNDER SAID ACT IS NOT REQUIRED. 
 Warrant No.              
 COMMON STOCK PURCHASE WARRANT

 To Purchase Up To 100,000 Shares of the Common Stock of 
 Quantum Fuel Systems Technologies Worldwide, Inc. 
 THIS IS TO
CERTIFY THAT Winslow Green Growth Fund, or registered assigns (the “Holder”), is entitled, during the Exercise Period (as hereinafter defined), to purchase from Quantum Fuel Systems Technologies Worldwide, Inc, a Delaware corporation (the
“Company”), the Warrant Stock (as hereinafter defined), in whole or in part, at a purchase price of $3.94 per share, all on and subject to the terms and conditions hereinafter set forth. 
 1. Definitions. As used in this Warrant, the following terms have the respective meanings set forth below: 
 “Affiliate” means any person or entity that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act. With respect to a Holder of Warrants, any investment fund or managed account that is managed on a
discretionary basis by the same investment manager as such Holder will be deemed to be an Affiliate of such Holder. 
 “Appraised Value” means, in respect of any share of Common Stock on any date herein specified, the fair saleable value of such share of Common Stock (determined with giving effect to the discount for (i) a minority
interest or (ii) any lack of liquidity of the Common Stock or to the fact that the Company may have no class of equity registered under the Exchange Act) as of the last day of the most recent fiscal month ending prior to such date specified,
based on the value of the Company on a fully-diluted basis, as determined by a nationally recognized investment banking firm selected by the Company’s Board of Directors and having no prior relationship with the Company. 
 “Business Day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which
banking institutions in the State of Michigan generally are authorized or required by law or other government actions to close. 
  

 Page 1 of 17 

 “Change of Control” means the (i) acquisition by an individual or
legal entity or group (as set forth in Section 13(d) of the Exchange Act) of more than one-half of the voting rights or equity interests in the Company; or (ii) sale, conveyance, or other disposition of all or substantially all of the
assets, property or business of the Company or the merger into or consolidation with any other corporation (other than a wholly owned subsidiary corporation) or effectuation of any transaction or series of related transactions where holders of the
Company’s voting securities prior to such transaction or series of transactions fail to continue to hold at least 50% of the voting power of the Company (or, if other than the Company, the successor or acquiring entity) immediately following
such transaction. 
 “Closing Date” means June 30, 2006. 
 “Commission” means the Securities and Exchange Commission or any other federal agency then administering the Securities
Act and other federal securities laws. 
 “Common Stock” means (except where the context otherwise
indicates) the Common Stock, $0.001 par value per share, of the Company as constituted on the Closing Date, and any capital stock into which such Common Stock may thereafter be changed or converted, and shall also include (i) capital stock of
the Company of any other class (regardless of how denominated) issued to the holders of shares of Common Stock upon any reclassification thereof which is also not preferred as to dividends or assets on liquidation over any other class of stock of
the Company and which is not subject to redemption and (ii) shares of common stock of any successor or acquiring corporation received by or distributed to the holders of Common Stock of the Company in the circumstances contemplated by
Section 4. 
 “Current Market Price” means, in respect of any share of Common Stock on any date herein
specified, 
 (1) if there shall not then be a public market for the Common Stock, the higher of 
 (a) the book value per share of Common Stock at such date, and 
 (b) the Appraised Value per share of Common Stock at such date, 
 or 
 (2) if
there shall then be a public market for the Common Stock, the average of the daily market prices for the five (5) consecutive trading days immediately before such date. The daily market price for each such trading day shall be (i) the
closing bid price on such day on the OTC Bulletin Board or principal stock exchange (including Nasdaq) on which such Common Stock is then listed or admitted to trading, or quoted, as applicable, (ii) if no sale takes place on such day on the
OTC Bulletin Board or any such exchange, the last reported closing bid price on such day as officially quoted on the OTC Bulletin Board or any such exchange (including Nasdaq), (iii) if the Common Stock is not then listed or admitted to trading
on the OTC Bulletin Board or any stock exchange, the last reported closing bid price on such day in the over-the- 
  

 Page 2 of 17 

 counter market, as furnished by the National Association of Securities Dealers Automatic Quotation System
or the National Quotation Bureau, Inc., (iv) if neither such corporation at the time is engaged in the business of reporting such prices, as furnished by any similar firm then engaged in such business, or (v) if there is no such firm, as
furnished by any member of the NASD selected mutually by the holder of this Warrant and the Company or, if they cannot agree upon such selection, as selected by two such members of the NASD, one of which shall be selected by holder of this Warrant
and one of which shall be selected by the Company. 
 “Current Warrant Price” means, in respect of a share
of Common Stock at any date herein specified, the price at which a share of Common Stock may be purchased pursuant to this Warrant on such date. Unless and until the Current Warrant Price is adjusted pursuant to the terms herein, the initial Current
Warrant Price shall be $3.94 per share of Common Stock. 
 “Exchange Act” means the Securities Exchange Act
of 1934, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect from time to time. 
 “Exercise Period” means the period during which this Warrant is exercisable pursuant to Section 2.1. 
 “Expiration Date” means June 28, 2011, subject to modification as provided herein. 
 “NASD” means the National Association of Securities Dealers, Inc., or any successor corporation thereto. 
 “Other Property” has the meaning set forth in Section 4. 
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, incorporated organization, association, corporation, limited liability company, institution, public benefit
corporation, entity or government (whether federal, state, county, city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof). 
 “Purchase Agreement” means that certain Warrant Purchase and Registration Rights Agreement dated as of the Closing Date
among the Company and the other parties named therein, pursuant to which this Warrant was originally issued. 
 “Restricted Common Stock” means shares of Common Stock which are, or which upon their issuance upon the exercise of any Warrant would be required to be, evidenced by a certificate bearing the restrictive legend set forth in
Section 3.2. 
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal
statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  

 Page 3 of 17 

 “Trading Day” means any day on which the primary market on which shares
of Common Stock are listed is open for trading. 
 “Transfer” means any disposition of any Warrant or
Warrant Stock or of any interest in either thereof, which would constitute a sale thereof within the meaning of the Securities Act. 
 “Warrants” means this Warrant and all warrants issued upon transfer, division or combination of, or in substitution for, any thereof. All Warrants shall at all times be identical as to terms and conditions and date, except
as to the number of shares of Common Stock for which they may be exercised. 
 “Warrant Price” means an
amount equal to (i) the number of shares of Common Stock being purchased upon exercise of this Warrant pursuant to Section 2.1, multiplied by (ii) the Current Warrant Price. 
 “Warrant Stock” means up to 100,000 shares of Common Stock to be purchased upon the exercise hereof, subject to
adjustment as provided herein. 
 2. Exercise of Warrant. 
 2.1 Manner of Exercise. From and after the Closing Date, and until 5:00 P.M., New York time, on the Expiration Date
(the “Exercise Period”), the Holder may exercise this Warrant, on any Business Day, for all or any part of the number of shares of Warrant Stock purchasable hereunder, subject to the terms and conditions of this Warrant. 
 In order to exercise this Warrant, in whole or in part, the Holder shall deliver to the Company at its principal office
or at the office or agency designated by the Company as provided herein, (i) a written notice of Holder’s election to exercise this Warrant, which notice shall specify the number of shares of Warrant Stock to be purchased,
(ii) payment of the Warrant Price as provided herein, and (iii) this Warrant. Such notice shall be irrevocable and substantially in the form of the subscription form appearing at the end of this Warrant as Exhibit A, duly executed by the
Holder or its agent or attorney. Upon receipt thereof, the Company shall, as promptly as reasonably practicable, execute or cause to be executed and deliver or cause to be delivered to the Holder a certificate or certificates representing the
aggregate number of full shares of Warrant Stock issuable upon such exercise, together with cash in lieu of any fraction of a share, as hereinafter provided. The stock certificate or certificates so delivered shall be, to the extent possible, in
such denomination or denominations as the Holder shall reasonably request in the notice and shall be registered in the name of the Holder or if permitted pursuant to the terms of this Warrant such other name as shall be designated in the notice.
This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and the 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 when the notice, together with the payment of the Warrant Price and this Warrant, is received by the Company as described above. If this Warrant shall 
  

 Page 4 of 17 

 have been exercised in part, the Company shall, at the time of delivery of the
certificate or certificates representing Warrant Stock, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased shares of Common Stock called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant, or at the request of the Holder, appropriate notation may be made on this Warrant and the same returned to the Holder. 
 Payment of the Warrant Price may be made at the option of the Holder by: (i) certified or official bank check payable to the order of the Company, or (ii) wire transfer of immediately
available funds to the account of the Company. All shares of Common Stock issuable upon the exercise of this Warrant pursuant to the terms hereof shall be validly issued and, upon payment of the Warrant Price, shall be fully paid and nonassessable
and not subject to any preemptive rights. 
 2.2 Fractional Shares. The Company shall not be required
to issue a fractional share of Common Stock upon exercise of any Warrant. As to any fraction of a share which the Holder of one or more Warrants, the rights under which are exercised in the same transaction, would otherwise be entitled to purchase
upon such exercise, the Company shall pay an amount in cash equal to the Current Market Price per share of Common Stock on the date of exercise multiplied by such fraction. 
 2.3 Restrictions on Exercise Amount. Notwithstanding anything herein to the contrary, in no event shall the Holder
be entitled to exercise any portion of this Warrant in excess of that portion of this Warrant upon exercise of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its Affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the unexercised portion of the Warrant or the unexercised or unconverted portion of any other security of the Holder subject to a limitation on conversion analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the exercise of the portion of this Warrant with respect to which the determination of this proviso is being made, would result in beneficial ownership by
the Holder and its Affiliates of more than 4.99% of the then outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The Holder may waive the limitations set forth herein by sixty-one (61) days written notice to the
Corporation. 
 3. Transfer, Division and Combination. 
 3.1 Transfer. The Warrants and the Warrant Stock shall be freely transferable, subject to compliance with this
Section 3.1 and all applicable laws, including, but not limited to the Securities Act. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant or the resale of the Warrant Stock, this Warrant or the
Warrant Stock, as applicable, shall not be registered for resale under the Securities Act, the Company may require, as a condition of allowing such transfer (i) that the Holder or 
  

 Page 5 of 17 

 transferee of this Warrant or the Warrant Stock as the case may be, at the cost of Holder
or transferee, furnish to the Company a written opinion of counsel that is reasonably acceptable to the Company to the effect that such transfer may be made without registration under the Securities Act and any applicable state law, (ii) that
the Holder or transferee execute and deliver to the Company an investment representation letter in form and substance acceptable to the Company and substantially in the form attached as Exhibit C hereto and (iii) that the transferee be
an “accredited investor” as defined in Rule 501 (a) promulgated under the Securities Act. Transfer of this Warrant and all rights hereunder, in whole or in part, in accordance with the foregoing provisions, shall be registered on the
books of the Company to be maintained for such purpose, upon surrender of this Warrant at the principal office of the Company referred to in Section 2.1 or the office or agency designated by the Company as provided herein, together with a
written assignment of this Warrant substantially in the form of Exhibit B 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 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. Following a transfer that complies with the requirements of this Section 3.1, the Warrant may be exercised by a new Holder for the
purchase of shares of Common Stock regardless of whether the Company issued or registered a new Warrant on the books of the Company. In connection with any transfer of this Warrant or the resale of the Warrant Stock pursuant to Rule 144 or other
than pursuant to an effective registration statement, the Holder or transferee shall compensate the Company for its reasonable expenses incurred in connection with effectuating such transfer or resale. 
 3.2 Restrictive Legends. Each certificate for Warrant Stock initially issued upon the exercise of this Warrant, and
each certificate for Warrant Stock issued to any subsequent transferee of any such certificate, unless, in each case, such Warrant Stock is eligible for resale without registration pursuant to Rule 144(k) or an effective registration statement under
the Securities Act, shall bear the following legend: 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF THE COMPANY’S COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.”

 The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of
the Shares upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at DTC, if (i) such Shares are registered for resale under the Securities Act, (ii) such Shares are sold or transferred
pursuant to Rule 144 (assuming the transferor is not an Affiliate of the Company), (iii) such Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under applicable requirements of the Securities Act
(including controlling judicial 
  

 Page 6 of 17 

 interpretations and pronouncements issued by the Commission). The Company shall cause its
counsel to issue the legal opinion referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent on the Effective Date. Any fees (with respect to the Transfer Agent, counsel to the Company or otherwise) associated
with the issuance of such opinion or the removal of such legend shall be borne by the Company. Following the Effective Date or at such earlier time as a legend is no longer required for certain Shares, the Company will no later than three
(3) Trading Days following the delivery by a Purchaser to the Company or the Transfer Agent (with notice to the Company) of a legended certificate representing such Shares (endorsed or with stock powers attached, signatures guaranteed, and
otherwise in form necessary to affect the reissuance and/or transfer and an opinion of counsel to the extent required by Section 4.1(a)), deliver or cause to be delivered to such Purchaser a certificate representing such Shares that is free
from all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section. 
 The Company shall facilitate the timely preparation and delivery of certificates representing the Warrant Stock to be sold pursuant to an
effective Registration Statement, which certificates shall be free, to the extent permitted by applicable law and this Warrant, of all restrictive legends, and to enable such Warrant Stock to be in such denominations and registered in such names as
the Holder may request at least five (5) business days prior to any sale of the Warrant Stock. In connection therewith, the Company shall promptly after the effectiveness of the Registration Statement cause an opinion of counsel to be delivered
to and maintained with its transfer agent, together with any other authorizations, certificates and directions required by the transfer agent, which authorize and direct the transfer agent to issue such Warrant Stock without legend upon sale by the
holder of such Warrant Stock under the Registration Statement, for such time as the Registration Statement is effective. 
 3.3 Division and Combination; Expenses; Books. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office or agency 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 3.1 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. The Company shall prepare, issue and deliver at Holder’s expense the
new Warrant or Warrants under this Section 3. The Company agrees to maintain, at its aforesaid office or agency, books for the registration and the registration of transfer of the Warrants. 
 4. Adjustments. The number of shares of Common Stock for which this Warrant is exercisable, and the price at which such shares may
be purchased upon exercise of this Warrant, shall be subject to adjustment from time to time as set forth in this Section 4. 
  

 Page 7 of 17 

 4.1 Stock Dividends, Subdivisions and Combinations. If at any time
while this Warrant is outstanding the Company shall: 
 (i) declare a dividend or make a distribution on its
outstanding shares of Common Stock in shares of Common Stock; 
 (ii) subdivide its outstanding shares of
Common Stock into a larger number of shares of Common Stock; or 
 (iii) combine its outstanding shares of
Common Stock into a smaller number of shares of Common Stock, then: 
 (1) the number of shares of Common Stock acquirable
upon exercise of this Warrant immediately after the occurrence of any such event shall be adjusted to equal the number of shares of Common Stock which a record holder of the same number of shares of Common Stock that would have been acquirable under
this Warrant immediately prior to the record date for such dividend or distribution or the effective date of such subdivision or combination would own or be entitled to receive after such record date or the effective date of such subdivision or
combination, as applicable, and 
 (2) the Current Warrant Price shall be adjusted to equal: 
 (A) the Current Warrant Price in effect at the time of the record date for such dividend or distribution or of the
effective date of such subdivision or combination, multiplied by the number of shares of Common Stock into which this Warrant is exercisable immediately prior to the adjustment, divided by 
 (B) the number of shares of Common Stock into which this Warrant is exercisable immediately after such adjustment.

 Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date
for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clauses (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision
or combination. 
 4.2 Certain Other Distributions. If at any time while this Warrant is outstanding
the Company shall cause all of the holders of its Common Stock to be entitled to receive any dividend or other distribution of: 
 (i) cash, 
 (ii) any evidences of its indebtedness, any shares of stock of
any class or any other securities or property or assets of any nature whatsoever (other than cash or additional shares of Common Stock as provided in Section 4.1 hereof), or 
  

 Page 8 of 17 

 (iii) any warrants or other rights to subscribe for or purchase any
evidences of its indebtedness, any shares of stock of any class or any other securities or property or assets of any nature whatsoever (in each case set forth in subparagraphs 4.2(i), 4.2(ii) and 4.2(iii) hereof, the “Distributed
Property”), 
 then upon any exercise of this Warrant that occurs after the record date for such dividend or other distribution, the
holder of this Warrant shall be entitled to receive, in addition to the shares of Warrant Stock, the Distributed Property that such holder would have been entitled to receive in respect of such number of Warrant Shares had the holder been the record
holder of such Warrant Shares as of such record date. Such distribution shall be made whenever any such exercise is made. A reclassification of the Common Stock (other than a change in par value, or from par value to no par value or from no par
value to par value) into shares of Common Stock and shares of any other class of stock shall be deemed a distribution by the Corporation to the holders of its Common Stock of such shares of such other class of stock within the meaning of this
Section 4.2 and, if the outstanding shares of Common Stock shall be changed into a larger or smaller number of shares of Common Stock as a part of such reclassification, such change shall be deemed a subdivision or combination, as the case may
be, of the outstanding shares of Common Stock within the meaning of Section 4.1. 
 4.3 Other
Provisions Applicable to Adjustments. The following provisions shall be applicable to the making of adjustments of the number of shares of Common Stock into which this Warrant is exercisable and the Current Warrant Price provided for in
Section 4: 
 (a) When Adjustments to Be Made. The adjustments required by Section 4 shall be
made whenever and as often as any specified event requiring an adjustment shall occur, except that any that would otherwise be required may be postponed (except in the case of a subdivision or combination of shares of the Common Stock, as provided
for in Section 4.1) up to, but not beyond the date of exercise if such adjustment either by itself or with other adjustments not previously made adds or subtracts less than 1% of the shares of Common Stock into which this Warrant is exercisable
immediately prior to the making of such adjustment. Any adjustment representing a change of less than such minimum amount (except as aforesaid) which is postponed shall be carried forward and made as soon as such adjustment, together with other
adjustments required by this Section 4 and not previously made, would result in a minimum adjustment or on the date of exercise. For the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business on
the date of its occurrence. 
 (b) Fractional Interests. In computing adjustments under this
Section 4, fractional interests in Common Stock shall be taken into account to the nearest 1/100th of a share. 
 (c) When Adjustment Not Required. If the Company undertakes a transaction contemplated under this Section 4 and as a result takes a record of the holders of its Common Stock for the purpose of entitling them to receive a

  

 Page 9 of 17 

 dividend or distribution or subscription or purchase rights or other benefits
contemplated under this Section 4 and shall, thereafter and before the distribution to stockholders thereof, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights or other benefits contemplated
under this Section 4, then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously made in respect thereof shall be rescinded and annulled. 
 (d) Escrow of Stock. If after any property becomes distributable pursuant to Section 4 by reason of the taking
of any record of the holders of Common Stock, but prior to the occurrence of the event for which such record is taken, a holder of this Warrant exercises the Warrant during such time, then such holder shall continue to be entitled to receive any
shares of Common Stock issuable upon exercise hereunder by reason of such adjustment and such shares or other property shall be held in escrow for the holder of this Warrant by the Company to be issued to holder of this Warrant upon and to the
extent that the event actually takes place. Notwithstanding any other provision to the contrary herein, if the event for which such record was taken fails to occur or is rescinded, then such escrowed shares shall be canceled by the Company and
escrowed property returned to the Company. 
 4.4 Reorganization, Reclassification, Merger, Consolidation
or Disposition of Assets. 
 (a) If there shall occur a Change of Control and, pursuant to the terms of
such Change of Control, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase rights) in addition
to or in lieu of common stock of the successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company, then the Holder of this Warrant shall have the right thereafter
for the Balance of the Exercise Period to receive, upon the exercise of the 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 the Other Property
receivable upon or as a result of such Change of Control by a holder of the number of shares of Common Stock into which this Warrant is exercisable immediately prior to such event. 
 (b) In case of any such Change of Control described above, the resulting, successor or acquiring entity (if not the
Company) and, if an entity different from the successor or acquiring entity, the entity whose capital stock or assets the holders of the Common Stock are entitled to receive as a result of such Change of Control, shall assume by written instrument
all of the obligations of this Warrant and the Transaction Documents (as defined in the Purchase Agreement), subject to such modifications as may be deemed appropriate (as determined by resolution of the Board of Directors of the Company) in order
to 
  

 Page 10 of 17 

 provide for adjustments of shares of the Common Stock into which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in Section 4. For purposes of Section 4, common stock of the successor or acquiring corporation shall include stock of such corporation of any
class which is not preferred as to dividends or assets on liquidation over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities
which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 4 shall similarly apply to successive Change of Control transactions. 
 4.5 Stock Transfer Taxes. The issue of stock certificates upon exercise of this Warrant shall be made without charge to the holder for any tax in respect of such issue. The Company shall not, however, be required to pay any tax which
may be payable in respect of any transfer involved in the issue and delivery of shares in any name other than that of the holder of this Warrant, and the Company shall not be required to issue or deliver any such stock certificate unless and until
the person or persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
 5. No Rights as Stockholder. This Warrant does not entitle the Holder to any voting or other rights as a stockholder of the
Company prior to exercise and payment for the Warrant Price in accordance with the terms hereof. 
 6. Reservation and
Authorization of Common Stock. From and after the Closing Date, the Company shall at all times reserve and keep available for issue upon the exercise of Warrants such number of its authorized but unissued shares of Common Stock as will be
sufficient to permit the exercise in full of all outstanding Warrants 
 7. Taking of Record; Stock and Warrant Transfer
Books. In the case of all dividends or other distributions by the Company to the holders of its Common Stock with respect to which any provision of Section 4 refers to the taking of a record of such holders, the Company will in each such
case take such a record and will take such record as of the close of business on a Business Day. The Company will not at any time, except upon dissolution, liquidation or winding up of the Company, close its stock transfer books or Warrant transfer
books so as to result in preventing or delaying the exercise or transfer of any Warrant. 
 8. Registration Rights.
The resale of the Warrant Stock shall be registered in accordance with and subject to the terms and conditions contained in the Purchase Agreement. The Holder acknowledges that pursuant to the Purchase Agreement, the Company has the right to request
that the Holder furnish information regarding such Holder and the distribution of the Warrant Stock as is required by law or the Commission to be disclosed in the Registration Statement (as such term is defined in the Purchase Agreement), and the
Company may exclude from such registration the shares of Warrant Stock acquirable hereunder if Holder fails to furnish such information within a reasonable time prior to the filing of each Registration Statement, supplemented prospectus included
therein and/or amended Registration Statement. 
  

 Page 11 of 17 

 9. Loss or Mutilation. Upon receipt by the Company from the Holder of evidence
reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this Warrant and indemnity or security reasonably satisfactory to it and reimbursement to the Company of all reasonable expenses incidental thereto
and in case of mutilation upon surrender and cancellation hereof, the Company, at Holder’s cost, will execute and deliver in lieu hereof a new Warrant of like tenor to the Holder; provided, however, that in the case of mutilation, no indemnity
shall be required if this Warrant in identifiable form is surrendered to the Company for cancellation. 
 10. Office of
the Company. As long as any of the Warrants remain outstanding, the Company shall maintain an office or agency (which may be the principal executive offices of the Company) where the Warrants may be presented for exercise, registration of
transfer, division or combination as provided in this Warrant. 
 11. [Reserved] 
 12. Miscellaneous. 
 12.1 Nonwaiver. No course of dealing or any delay or failure to exercise any right or obligation hereunder on the part of the Holder or the Company shall operate as a waiver of such right or obligation, unless
the same shall be in writing signed by the Holder or the Company. 
 12.2 Notice Generally. All
notices, requests, demands or other communications provided for herein shall be in writing and shall be given in the manner and to the addresses set forth in the Purchase Agreement. 
 12.3 Successors and Assigns. Subject to compliance with the provisions of Section 3.1, this Warrant and the
rights evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and assigns of the 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. 
 12.4 Amendment. This Warrant may be
modified or amended or the provisions of this Warrant waived with the written consent of both the Company and the Holder. 
 12.5 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 modified to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Warrant. 
 12.6 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. 
  

 Page 12 of 17 

 12.7 Governing Law. This Warrant and the transactions contemplated
hereby shall be deemed to be consummated in the State of Delaware and shall be governed by and interpreted in accordance with the local laws of the State of Delaware without regard to the provisions thereof relating to conflicts of laws. 

12.8 Entire Agreement. This Warrant, together with the Purchase Agreement which this Warrant is subject to and
pursuant to which it is given, constitute the entire agreement between the Company and Holder with respect to the subject matter hereof and supersedes any and all other prior or contemporaneous agreements, either oral or written, between the Company
and Holder with respect to the subject matter hereof. Headings herein are for convenience only and shall not be deemed to limit or affect any of the provisions hereof. 
 IN WITNESS WHEREOF, Quantum Fuel Systems Technologies Worldwide, Inc. has caused this Warrant to be executed by its duly authorized officer and attested by its Secretary or other designated
officer. 
 Dated: June 29, 2006 
  

			
	 Quantum Fuel Systems Technologies
 Worldwide, Inc.

		
	 By:
	 	 /s/ W. Brian Olson

	 Name:
	 	 W. Brian Olson

	 Title:
	 	 CFO

  

 Page 13 of 17 

 EXHIBIT A 
 SUBSCRIPTION FORM 
 [To be executed only upon exercise of Warrant] 
 1. The undersigned hereby elects to purchase
                     shares of the Common Stock of Quantum Fuel Systems Technologies Worldwide, Inc. pursuant to the terms of the attached
Warrant, and tenders herewith payment of the purchase price of such shares in full. 
 2. Please issue a certificate or
certificates representing said shares in the name of the undersigned or in such other name as is specified below: 
  

	
	  
	(Name)
	
	  
	  
	  
	(Address)

 [and, if such shares of Common Stock shall not include all of the shares of
Common Stock issuable as provided in this Warrant, that a new Warrant of like tenor and date for the balance of the shares of Common Stock issuable hereunder be delivered to the undersigned.] 
  

	
	  
	 (Name of Registered Owner)

	
	  
	 (Signature of Registered Owner)

	
	  
	 (Street Address)

	
	  
	 (State) (Zip Code)

  
 NOTICE: The signature on
this subscription must correspond with the name as written upon the face of the Warrant in every particular, without alteration or enlargement or any change whatsoever. 
  

 Page 14 of 17 

 EXHIBIT B 
 ASSIGNMENT FORM 
 FOR VALUE RECEIVED the undersigned registered owner of this Warrant for the purchase of
shares of common stock of Quantum Fuel Systems Technologies Worldwide, Inc. hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under this Warrant, with respect to the number of shares of common
stock set forth below: 
  

	
	  
	
	  
	
	  
	 (Name and Address of Assignee)

	
	  
	 (Number of Shares of Common Stock)

 and does hereby irrevocably constitute and appoint
                                        
attorney-in-fact to register such transfer on the books of the Company, maintained for the purpose, with full power of substitution in the premises. 
  

			
	 Dated:
	 	  
	
	  
	 (Print Name and Title)

	
	  
	 (Signature)

	
	  
	 (Witness)

  
 NOTICE: The signature on
this assignment must correspond with the name as written upon the face of the Warrant in every particular, without alteration or enlargement or any change whatsoever. 
  

 Page 15 of 17 

 EXHIBIT C 
 FORM OF INVESTMENT REPRESENTATION LETTER 
 In connection with the acquisition of [warrants (the
“Warrants”) to purchase                      shares of common stock of Quantum Fuel Systems Technologies Worldwide, Inc. (the
“Company”), par value $0.001 per share (the “Common Stock”)] [                      shares of common stock of Quantum Fuel
Systems Technologies Worldwide, Inc. (the “Company”), par value $0.001 per share (the “Common Stock”) upon the exercise of warrants by
                    ], by
                     (the “Holder”) from
                                , the Holder hereby represents and warrants to the
Company as follows: 
 The Holder (i) is an “Accredited Investor” as that term is defined in Rule 501 of Regulation D
promulgated under the Securities Act of 1933, as amended (the “Act”); and (ii) has the ability to bear the economic risks of such Holder’s prospective investment, including a complete loss of Holder’s investment in the
Warrants and the shares of Common Stock issuable upon the exercise thereof (collectively, the “Securities”). 
 The Holder, by
acceptance of the Warrants, represents and warrants to the Company that the Warrants and all securities acquired upon any and all exercises of the Warrants are purchased for the Holder’s own account, and not with view to distribution of either
the Warrants or any securities purchasable upon exercise thereof in violation of applicable securities laws. 
 [The Holder acknowledges that
(i) the Securities have not been registered under the Act, (ii) the Securities are “restricted securities” and the certificate(s) representing the Securities shall bear the following legend, or a similar legend to the same
effect, until (i) in the case of the shares of Common Stock underlying the Warrants, such shares shall have been registered for resale by the Holder under the Act and effectively been disposed of in accordance with a registration statement that
has been declared effective; or (ii) in the opinion of counsel for the Company such Securities may be sold without registration under the Act: 
 “[NEITHER] THE SECURITIES REPRESENTED BY THIS CERTIFICATE [NOR THE SECURITIES INTO WHICH THEY ARE EXERCISABLE] HAVE [NOT] BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND ALL SUCH SECURITIES ARE
SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AS SET FORTH IN THIS CERTIFICATE. [NEITHER] THE SECURITIES REPRESENTED HEREBY [NOR THE SECURITIES INTO WHICH THEY ARE EXERCISABLE] MAY [NOT] BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OF THE COMPANY’S COUNSEL TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER, OR DISPOSITION MAY BE EFFECTUATED WITHOUT REGISTRATION UNDER THE ACT.”]1 
  

	 1
	 Bracketed language to be inserted if applicable. 

  

 Page 16 of 17 

 IN WITNESS WHEREOF, the Holder has caused this Investment Representation Letter to be executed this
         day of             , 200    . 
 [Name] 
  

			
	 By:
	 	  
	 Name:
	 	
	 Title:
	 	

  

 Page 17 of 17

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