Document:

Form of Securities Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 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 12,500,000 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 such investor shall receive (i) a warrant to purchase that number of shares of Common Stock specified in paragraph
3(i) below (the “Common Stock Purchase Warrant A”), and (ii) a warrant to purchase that number of shares of Common Stock specified in paragraph 3(ii) (the “Common Stock Purchase Warrant B”), in the case of each
of the foregoing on or prior to June 22, 2007 (the “Offering”). As used in this Agreement, the term “Warrants” shall mean each of the Common Stock Purchase Warrants A, in the form attached as Exhibit I hereto,
and each of the Common Stock Purchase Warrants B, in the form attached as Exhibit 2 hereto and the term “Warrant Shares” shall mean the Common Stock issuable pursuant to each of the Warrants. Each of the Warrants shall have an
exercise price equal to the closing bid price for a share of the Company’s common stock on the Trading Day immediately preceding the Closing Date, and shall be exercisable at any time or from time to time. 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 $1.50 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, the Investor shall receive (i) a Common Stock Purchase Warrant A, registered in the Investor’s name, to purchase [            ]
shares of Common Stock, and (ii) a Common Stock Purchase Warrant B, registered in the Investor’s name, to purchase [            ] shares of 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, acquired, directly or indirectly, any securities of the Company in a certain private placement transaction that
closed on October 27, 2006, 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.”) 

 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 22, 2007
	
	Investor:
	
	[                                      
              ]
		
	By:	 	  
		 	Name:
		 	Title:

  

			
	Address:	 	  
	  
	  

 AGREED AND ACCEPTED: 
 Quantum Fuel Systems Technologies Worldwide, Inc. 
  

			
		
	By:	 	  
		 	Name:
		 	Title:

 [SECURITIES PURCHASE AGREEMENT SIGNATURE PAGE] 

 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, in exchange for the Purchase Price, the number of Shares and the Warrants described in paragraph 3 of the Securities Purchase Agreement attached hereto
(collectively with this Annex I and the other exhibits attached hereto, this “Agreement”). All capitalized terms used but not defined in this Annex I shall have the meanings assigned to them in the Securities Purchase 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, in the form attached as Exhibit 3 hereto (the “Registration Rights Agreement”) and the Securities Purchase Agreements executed by the Other
Investors are sometimes collectively referred to herein as the “Agreements” or the “Transaction Documents”. The Company may accept executed Agreements from Investors for the purchase of Securities commencing upon
June 22, 2007 and concluding upon the next succeeding date (the “Subscription Date”). 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 and Warrants in the Offering. 
 1.3 Placement Agent Fee. The Investor acknowledges that the Company intends to pay to Canaccord Adams, Inc. (in its capacity as
placement agent for the Securities, 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 and Warrants (the “Closing”) shall occur on a date specified by the Company and the Placement Agent
that is anticipated to be June 22, 2007 (the “Closing Date”), but which date shall not be later than June 22, 2007 (the “Outside Date”), and of which the Investors will be notified in writing 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 Securities Purchase Agreement and Warrants pursuant to which the Investor
shall have the right to acquire the number of Warrant Shares set forth in paragraph 3 of the Securities 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 Warrants. In exchange for the delivery of the foregoing documents, 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 the form attached hereto as Exhibit C (the
“Legal Opinion”). 
 The Company’s obligation hereunder to issue and sell Shares to the Investor and to deliver to the
Investor the Warrants 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 the Securities Purchase Agreement; (b) completion of
purchases and sales of Shares and Warrants under the Agreements with the Other Investors; (c) the accuracy of the representations and warranties made by the Investor in this 

 
Agreement and the fulfillment of the obligations of the Investor to be fulfilled by it under this Agreement on or prior to the Closing; (d) the Company
is satisfied that the issuance of the Securities will not be in violation of applicable Nasdaq listing qualification rules; and (e) 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 Shares and Warrants shall be subject to the following conditions, any one or more of which may be waived by the Investor: (a) the delivery of the Legal Opinion to the Investor by counsel to
the Company; (b) 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 (1) 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 and
“Trading Day” shall mean a day on which national stock exchanges and the Nasdaq System are open for trading. 
 3.
Representations, Warranties and Covenants of the Company. 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 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 Securities 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 Securities 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 Annual Report on Form 10-K
for the year ended April 30, 2006 (the “10-K) and the Company’s most recent Quarterly Report on Form 10-Q for the quarter ended January 31, 2007 (the 10-Q”). Except as described in the 10-K and the 10-Q, 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 and pursuant to the exercise of warrants issued in connection with
the private placement transaction that closed on October 27, 2006. Except as otherwise provided in the last sentence of this Section, the Securities to be sold pursuant to the Agreements have been duly authorized, and when issued and paid for
in accordance with the terms of the Agreements and 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. Except as described otherwise in the 10-K or the 10-Q, the Company owns one hundred percent (100%) 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 10-K or the 10-Q, 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 10-K or the 10-Q. There are no shareholders
agreements, voting agreements or other similar agreements with respect to the Common Stock to which the Company is a party, other than as described in the 10-K. Notwithstanding the foregoing, the Investor acknowledges that (A) (i) the
Company does not have sufficient authorized shares as of the Closing Date necessary for issuance in full of the Warrant Shares, (ii) approval of the holders of a majority of the Common Stock entitled to vote thereon is required in 

 
order to increase the number of authorized shares of Common Stock in order to cure such deficiency, and (iii) the Company has not provided any guaranty
that it will be able to receive such shareholder approval, and (B) the Company has disclosed that simultaneous with the Closing of the transactions contemplated to occur on the Closing Date under this Agreement, the Company will issue warrants
to purchase up to 2,498,750 shares of the Common Stock to those investors who participated in the private placement transaction with the Company that closed on October 27, 2006 in exchange for those investors waiving their right of first
refusal with respect to the transactions contemplated to occur on the Closing Date under this Agreement. 
 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. The Company is not
subject to any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other government body, which has a material effect on the business or property of the Company. 
 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) 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. 
 (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) the Company is not 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, no proceedings are pending, or to the knowledge of the Company, threatened, which challenge the rights of the Company to
the use the Intellectual Property. 
 3.9 SEC Reports; Financial Statements. The Company has filed all reports required
to be filed by it under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, for the twelve (12) months preceding the date hereof (or such shorter
period as the Company was required by law to file such reports) (the foregoing materials being collectively referred to herein as the “SEC Reports” and, together with the Schedules to this Agreement, the “Disclosure
Materials”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. Except as may have been corrected or supplemented in a subsequent SEC
Report, as of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act and the rules and regulations of
the Securities and Exchange Commission (the “Commission”) promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Except as may have been corrected or supplemented in a subsequent SEC Report, the financial statements of the
Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Except as may have been corrected or
supplemented in a subsequent SEC Report, such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto, or, in the case of unaudited financial statements, as permitted by Rule 10-01 of Regulation S-X promulgated under the Securities Act and the Exchange Act, and
fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments. 
 3.10 No Material Adverse Change. There has
not been, since January 31, 2007: (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, other than obligations incurred in the ordinary course of business consistent with past practice, (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 Common Stock is registered pursuant to
Section 12(b) of the Exchange Act, and is listed on the Global Capital Market (along with any trading market or exchange upon which the Common Stock may be listed during any relevant time period under the Agreements, “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 Form S-3 Eligibility. 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 manipulation of the price of the Common Stock to facilitate the sale or resale of the Securities. The Company has not disclosed any material non-public information to the Investor. 

3.14 Accountants. McGladrey and Pullen, LLP, who expressed their opinion with respect to the consolidated financial statements
to be incorporated by reference from the 10-K 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, 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 Securities 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 the Agreements. 
 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 Securities 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 Securities and the listing of the Shares and the Warrant Shares (upon their issuance) on Nasdaq. 
 3.22 Related Party Transactions. Since January 31, 2007, to the actual 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. 
 3.23 Books and Records. The books, records and accounts of the Company accurately
and fairly reflect, in reasonable detail and in all material respects, the transactions in, and dispositions of, the assets of, and the operations of, the Company. 
 3.24 Press Releases. Each press release disseminated by the Company during the one (1) year preceding the date of this
Agreement, taken as a whole (and in the context of other public disclosures by the Company available at the time of each press release, including without limitation in the SEC Reports), did not contain, at the time of such release, any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, which individually or in the
aggregate is reasonably likely to have a Material Adverse Effect. 
 3.25 Labor Relations. No material labor dispute
exists or, to the actual knowledge of the Company, is imminent with respect to any of the employees of the Company, which is reasonably likely to have a Material Adverse Effect. 
 3.26 Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by
them that is material to their respective businesses and good and marketable title in all personal property owned by them that is material to their respective businesses, in each case free and clear of all Liens, except for Liens granted to the
Company’s lender and other Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries. Any real property and
facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in material compliance. 
 3.27 Internal Control Over Financial Accounting. Except as disclosed in the Company’s 10-K, the Company and the subsidiaries
maintain a system of internal controls over financial reporting sufficient to provide reasonable assurance 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 conformity 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. 

 3.28 Solvency. Based on the financial statements of the Company, as contained in
the SEC Reports, after giving effect to the receipt by the Company of the proceeds from the sale of the Shares under the Agreements, the Company represents that, to the best of the Company’s actual knowledge: (i) the fair saleable value of
the Company’s assets (including tangible and intangible assets) exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities as they mature; (ii) the current cash flow of
the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such
amounts are required to be paid; (iii) the Company does not intend to file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one (1) year from the Closing Date; and (iv) the
Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). 
 3.29 Certain Fees. Except for fees payable to the Placement Agent, no brokerage or finder’s fees or commissions are or will be
payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Agreements. The Investors shall have no obligation with
respect to any fees or with respect to any claims (other than such fees or commissions owed by a Investor pursuant to written agreements executed by such Investor which fees or commissions shall be the sole responsibility of such Investor) made by
or on behalf of other persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Agreements. 
 3.30 Disclosure. The Company confirms that neither it nor any other person acting on its behalf has disclosed (as of the date
hereof and the Closing Date) to any of the Investors or their agents or counsel any information that constitutes or might constitute material non-public information. The Company understands and confirms that each of the Investors will rely on the
foregoing representation in effecting transactions in securities of the Company. All disclosure materials provided to the Investors regarding the Company, its business and the transactions contemplated by the Agreements, including the Disclosure
Materials to this Agreement, furnished by or on behalf of the Company are, taken as a whole, true and correct in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements made therein, in the light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its subsidiaries or its or their
business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed. The Company
acknowledges and agrees that no Investor makes or has made (i) any representations or warranties with respect to the transactions contemplated by the Agreements other than those specifically set forth in Section 4 of this Agreement or
(ii) any statement, commitment or promise to the Company or, to its knowledge, any of its representatives which is or was an inducement to the Company to enter into the Agreements or otherwise. 
 3.31 Acknowledgment Regarding Investors’ Purchase of Securities. The Company acknowledges and agrees that, to its actual
knowledge, each of the Investors is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that no Investor is acting as a financial
advisor or fiduciary of the Company (or in any similar capacity) with respect to the Agreements and the transactions contemplated hereby and thereby and any advice given by any Investor, or any of their respective representatives or agents in
connection with the Agreements and the transactions contemplated hereby and thereby is merely incidental to the Investors’ purchase of the Securities. The Company further represents to each Investor that the Company’s decision to enter
into the Agreements has been based solely on the independent evaluation of the transactions contemplated hereby and thereby by the Company and its representatives. 

 3.32 Application of Takeover Protections. The Company has taken all necessary
action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Certificate of
Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Investors, resulting in a Material Adverse Effect, as a result of the Investors and the Company fulfilling their
obligations or exercising their rights under the Transaction Documents, including without limitation the Company’s issuance of the Securities and the Investors’ ownership of the Securities. 
 3.33 Sarbanes-Oxley Act. Except as disclosed in the Company’s 10-K, the Company is in compliance with applicable requirements
of the Sarbanes-Oxley Act of 2002 and applicable rules and regulations promulgated by the Commission thereunder in effect as of the date of this Agreement, except where such noncompliance could not be reasonably expected to have, individually
or in the aggregate, a Material Adverse Effect. 
 3.34 Securities Law Representation Private Placement. Neither the
Company nor any person acting on the Company’s behalf has sold or offered to sell or solicited any offer to buy any Securities by means of any form of general solicitation or advertising. Neither the Company nor any of its affiliates nor any
person acting on the Company’s behalf has, directly or indirectly, at any time within the past six (6) months, made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would
(i) eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale of the Securities as contemplated hereby or (ii) cause the offering of the Securities
pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of any applicable law, regulation or stockholder approval provisions, including, without limitation, under the rules and regulations of Nasdaq. 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 the Agreements or the offer, issuance, sale or delivery of the Securities, other than the qualification thereof, if required, under applicable Nasdaq and 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 Commission in connection with the transactions contemplated by this Agreement. Under the circumstances contemplated by the Agreements, the offer, issuance, sale and delivery of the
Securities will not, under current laws and regulations, require compliance with the registration requirements of 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 investment only, has no present intention of distributing any of such Securities in violation of applicable securities laws
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 hold the Securities for any prescribed time period, 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 or sell 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 that occurs prior to the Closing Date;
and (vi) the Investor has, in connection with its decision to purchase the number of Securities set forth in paragraph 3 of this Agreement, relied upon the representations and warranties of the Company contained herein and the information
contained in the Disclosure Materials. The Investor understands that the issuance of 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 Disclosure Materials, 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, pledge, 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 and applicable law. The Company acknowledges and agrees that the Investor, in compliance with applicable state and federal law, may from time to time pledge or grant a security interest in some or all of its Securities in connection with a bona
fide margin agreement or other loan or financing arrangement secured by Securities and, if required under the terms of such agreement, loan or arrangement, such Investor may transfer pledged or secured Securities to the pledgees or secured parties.
Except as may otherwise be required by this Agreement, such a pledge or transfer would not be subject to approval of the Company and no legal opinion of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no
notice shall be required of such pledge. At the appropriate Investor’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or
transfer of Securities, including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of Selling Stockholders
thereunder. 
 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 [Reserved] 

 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. 
 4.6 Confidential Information. The Company shall not provide the Investors with any material non-public information. The Company acknowledges and agrees that as of the date hereof and as of the Closing Date after the issuance of the
press release as described in Section 6.2, 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. 
 4.8 Additional
Acknowledgement. The Investor acknowledges that it has reviewed the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the
Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and the subsidiaries and their respective financial condition,
results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of the Investor or its representatives or counsel
shall modify, amend or affect the Investor’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction 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 represents, as to itself only, that together with the Other Investors it has 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. The 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. 

 4.10 Reliance on Exemptions. The 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 and applicable state securities laws and that the Company is relying on the truth and accuracy of, and the
Investor’s compliance with, the representations, covenants, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of the
Investor to acquire the Securities. 
 4.11 Legends. The Investor agrees to the imprinting, so long as is required
under applicable federal and state securities laws, of a legend on each certificate evidencing the Shares and Warrant Shares in substantially the following form: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER THE ACT, OR AN OPINION OF THE COMPANY’S COUNSEL THAT REGISTRATION IS NOT
REQUIRED UNDER THE ACT. NOTWITHSTANDING THE FOREGOING, THESE SHARES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SHARES. 
 The legend set forth above shall be removed and the Company shall issue a certificate without such
legend to the holder of the Shares or Warrant 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 or Warrant Shares are sold or transferred pursuant to an
effective Registration Statement or Rule 144 (assuming the transferor is not an affiliate of the Company), (ii) such Shares or Warrant Shares are eligible for sale under Rule 144(k), or (iii) following the effective date of the
Registration Statement (the “Effective Date”) or if such legend is not required under applicable requirements of the Securities Act (including controlling judicial interpretations and pronouncements issued by the Commission).
Following the Effective Date or at such earlier time as a legend is no longer required for certain Shares or Warrant Shares, the Company will no later than three (3) Business Days following the delivery by the Investor to the Company or the
Company’s transfer agent (with notice to the Company) of a legended certificate representing such Shares or Warrant Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to effect the reissuance
and/or transfer and an opinion of the Investor’s counsel reasonably acceptable to the Company), issue irrevocable transfer agent instructions and to deliver or cause to be delivered to the Investor a certificate representing such Shares or
Warrant Shares that is free from all restrictive and other legends. If the Company fails to deliver or cause to be delivered to the Investor a certificate representing such Shares or Warrant Shares that is free from all restrictive and other legends
by the third (3rd) Trading Day and if and if after such third (3rd) Trading Day the Investor purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
Investor of the Shares or Warrant Shares that the Investor anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three Trading Days after the Investor’s request and in the Investor’s
discretion, either (i) pay cash to the Investor in an amount equal to the Investor’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which
point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Investor a certificate or certificates representing such Common Stock and
pay cash to the Investor in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the closing price of the Common Stock on Nasdaq on the date of the event giving
rise to the Company’s obligation to deliver such certificate. The Company may not make any notation on its records or give instructions to the Company’s transfer agent that enlarge the restrictions on transfer set forth in this Section.

 4.12 Notwithstanding the foregoing, in the case that the Investor is a
multi-managed investment vehicle whereby separate portfolio managers manage separate portions of the Investor’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other
portions of the Investor’s assets, the representations set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that had or has knowledge of the transactions contemplated by this Agreement.

 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. 
 6. Registration of Shares; Public Statements. 
 6.1 In connection with the purchase and sale of the Shares and Warrants by the Investors contemplated hereby, the Company is simultaneously entering into the Registration Rights Agreement with each Investor
providing for the filing by the Company of a Registration Statement to enable the resale of the Shares and the Warrant Shares by the Investors from time to time. 
 6.2 The Company shall, on or before 9:15 a.m., New York City time on
June 22, 2007, issue a press release acceptable to the Investor disclosing all material terms of the transactions contemplated hereby. Prior to the second (2nd) Business Day after the Closing Date, the Company shall file a Current Report on Form 8-K with the Commission (the “8-K Filing”) describing the terms of the transactions
contemplated by the Transaction Documents and including as exhibits to the 8-K Filing this Agreement, [the Registration Rights Agreement] and the forms of Warrant, in the form required by the Exchange Act. Thereafter, the Company shall timely file
any filings and notices required by the Commission or applicable law with respect to the transactions contemplated hereby and provide copies thereof to the Investor promptly after filing. Except with respect to the 8-K Filing and the press release
referenced above (a copy of which will be provided to the Investor for its review as early as practicable prior to its filing), the Company shall, at least two (2) Business Days prior to the filing or dissemination of any disclosure required by
this paragraph that does not contain any material non-public information, provide a copy thereof to the Investor for its review. The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public
statements or filings and other communications with the Commission or any regulatory agency or Nasdaq with respect to the transactions contemplated hereby, and neither party shall issue any such press release or otherwise make any such public
statement, filing or other communication without the prior consent of the other, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement,
filing or other communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Investor, or include the name of the Investor in any filing with the Commission or any regulatory agency or Nasdaq, without the
prior written consent of the Investor, except to the extent such disclosure (but not any disclosure as to the controlling persons thereof) is required by law or Nasdaq regulations, in which case the Company shall provide the Investor with prior
notice of such disclosure. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents not to, provide any Investor with any material nonpublic information regarding
the Company or any of its Subsidiaries from and after the filing of the 8-K Filing without the express written consent of such Investor. In the 

 
event of a breach of the foregoing covenant by the Company, any of its subsidiaries, or any of its or their respective officers, directors, employees and
agents, in addition to any other remedy provided herein or in the Transaction Documents, the Investor shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material non-public
information without the prior approval by the Company, its subsidiaries, or any of its or their respective officers, directors, employees or agents. The Investor shall not have any liability to the Company, its subsidiaries, or any of its or their
respective officers, directors, employees, shareholders or agents for any such disclosure. Subject to the foregoing in this Section, neither the Company nor the Investor shall issue any press releases or any other public statements with respect to
the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the Investor, to make any press release or other public disclosure with respect to such transactions (i) in substantial
conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) the Investor shall be consulted by the Company in connection with any such
press release or other public disclosure prior to its release). 
 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: 
 Kenneth R. Lombardo 
 General Counsel 
 570 Executive Drive 
 Troy, Michigan 48083 
 and 
 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 this 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 Agreement must be in
writing and executed by the party against whom enforcement of such waiver is sought. 
 9. Other Agreements. 
 9.1 Use of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder and under the other
Agreements for implementation of corporate restructuring and cost cutting initiatives and general corporate purposes and not (i) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables, line of
credit, payments of principal required by the terms of such debt (but not including any optional or early repayment of principal of such debt), and accrued expenses (including interest expense) in the ordinary course of the Company’s business
and consistent with past practice), (ii) to redeem any Company equity or equity-equivalent securities, or (iii) to settle any outstanding litigation. 
 9.2 Reimbursement. If the Investor or any of its affiliates or any officer, director, partner, controlling person, employee or
agent of the Investor or any of its affiliates (a “Related Person”) becomes involved in any capacity in any proceeding of any type brought by or against any person in connection with or as a result of the transactions contemplated
by any Transaction Document, the Company will indemnify and hold harmless the Investor or Related Person for its reasonable legal and other expenses (including the costs of any investigation, preparation and travel) and for any losses of any type
incurred in connection therewith, as such expenses or losses are incurred, excluding only losses that result directly from the Investor’s or Related Person’s gross negligence, willful misconduct, any failure to comply with any
representation, warranty, term or provision of this Agreement or violation of law. In addition, the Company shall indemnify and hold harmless the Investor and Related Person from and against any and all losses of any type, as incurred, arising out
of or relating to any breach by the Company of any of the representations, warranties or covenants made by the Company in this Agreement or any other Transaction Document, or any allegation by a third party that, if true, would constitute such a
breach. The conduct of any proceedings for which indemnification is available under this paragraph shall be governed by Section 3 of the Registration Rights Agreement. The indemnification obligations of the Company under this paragraph shall be
in addition to any liability that the Company may otherwise have and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Investor and any such Related Persons. If the Company breaches
its obligations under any Transaction Document, then, in addition to any other liabilities the Company may have under such Transaction Document or applicable law, the Company shall pay or reimburse the Investor for all costs of collection and
enforcement (including reasonable attorneys’ fees and expenses). Without limiting the generality of the foregoing, the Company specifically agrees to reimburse the Investor for all costs of enforcing the indemnification obligations in this
paragraph. 
 9.3 Furnishing of Information. For a period of two (2) years following the Closing, provided that
the Investor owns Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange
Act. Upon the request of the Investor, the Company shall deliver to the Investor a written certification of a duly authorized officer as to whether it has complied with the preceding sentence. For a period of two (2) years following the
Closing, provided that the Investor owns Securities, if the Company is not required to file reports pursuant to such laws, it will prepare and furnish to the Investor and make publicly available in accordance with paragraph (c) of Rule 144 such
information as is required for the Investor to sell its Securities under Rule 144. The 

 
Company further covenants that it will take such further action as any holder of Securities may reasonably request to satisfy the provisions of Rule 144
applicable to the issuer of securities relating to transactions for the sale of securities pursuant to Rule 144. 
 9.4
Integration. The Company shall not, and shall use its reasonable best efforts to ensure that no affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Investor or that would be
integrated with the offer or sale of the Securities for purposes of the rules and regulations of Nasdaq. 
 9.5 Reservation
and Listing of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the
Transaction Documents. In the event that at any time the then authorized shares of Common Stock are insufficient for the Company to satisfy its obligations in full under the Transaction Documents, the Company shall promptly take such actions as may
be required to increase the number of authorized shares of Common Stock. The Company shall in the time and manner required by Nasdaq, prepare and file with Nasdaq an additional shares listing application covering the number of shares of Common Stock
issuable under the Transaction Documents and shall take all steps necessary to cause such shares of Common Stock to be approved for listing on Nasdaq as soon as possible. Notwithstanding the foregoing, the Investor acknowledges that (i) the
Company does not have sufficient authorized shares as of the Closing Date necessary for issuance in full of the Warrant Shares, (ii) approval of the holders of a majority of the Common Stock entitled to vote thereon is required in order to
increase the number of authorized shares of Common Stock in order to cure such deficiency, and (iii) the Company has not provided any guaranty that it will be able to receive such shareholder approval. The Company agrees to use its best efforts
to solicit and obtain its stockholders’ approval of such increase in authorized shares of Common Stock (the “Proposal”) at the Company’s annual shareholder meeting to be held in September 2007 (the
“Meeting”) and to cause its board of directors to recommend to its stockholders that they approve the Proposal. If for any reason the Proposal is not approved at the Meeting or otherwise prior to September 30, 2007, the Company
will, at the request of any Investor, take such additional acts or actions as are necessary to hold an additional annual meeting or special meeting of its stockholders to consider the Proposal and in conjunction therewith shall hire a nationally
recognized proxy solicitation firm, selected by the requesting Investor or Investors, to assist the Company in obtaining the necessary stockholder votes to approve the Proposal. In addition, the Company shall take all actions within its power
reasonably requested by any Investor to authorize sufficient shares of Common Stock necessary to fulfill the Company’s obligations under the Transaction Documents as promptly as practicable. The Company shall bear all costs and expenses of the
preparation and filing of any and all proxy materials and the Meeting and additional meeting or meetings contemplated by this Section 9.5, including but not limited to the costs and expenses of the proxy solicitation firm, if applicable.

 10. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor. The Investor may assign its rights under this Agreement to any person to whom the Investor assigns
or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to the “Investor.” Notwithstanding anything to the contrary herein,
Securities may be assigned to any person in connection with a bona fide margin account or other loan or financing arrangement secured by such Securities. 

 11. Entire Agreement. 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. 
 12. 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. 
 13. No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto
and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that the Placement Agent is an intended Third Party Beneficiary of Section 4.7 and each
Related Person is an intended third party beneficiary of Section 9.2 and may enforce the provisions of such Section directly against the parties with obligations thereunder. 
 14. Governing Law; Venue; Waiver Of Jury Trial. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY
OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT
OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT,
OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED
MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING
CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY AND THE INVESTOR HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY. 
 15. Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Agreement. 
 16. Rescission and Withdrawal Right. Notwithstanding anything to the
contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever the Investor exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related
obligations within the periods therein provided, then the Investor may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights. 

 17. Replacement of Securities. If any certificate or instrument evidencing any Securities is
mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs associated with the issuance of such replacement Securities. 
 18. Remedies. In addition to being entitled to
exercise all rights provided herein or granted by law, including recovery of damages, each of the Investor and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be
adequate. 
 19. Payment Set Aside. To the extent that the Company makes a payment or payments to the Investor hereunder or pursuant
to any Transaction Document or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company by a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy
law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred. 
 20. Independent Nature of Investors’ Obligations and
Rights. The obligations of each Investor under any Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other
Investor under any Transaction Document. The decision of each Investor to purchase Securities pursuant to each Agreement has been made by such Investor independently of any other Investor and independently of any information, materials, statements
or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or of the subsidiary which may have been made or given by any other Investor
or by any agent or employee of any other Investor, and no Investor or any of its agents or employees shall have any liability to any other Investor (or any other person) relating to or arising from any such information, materials, statements or
opinions. Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document. The Company hereby confirms that it understands that the Investors
are not acting as a “group” as that term is used in Section 13(d) of the Exchange Act. Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that
no other Investor will be acting as agent of such Investor in connection with monitoring its investment hereunder. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out
of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. Each Investor represents that it has been represented by its
own separate legal counsel in its review and negotiations of this Agreement and the Transaction Documents and each party represents and confirms that Proskauer Rose LLP represents only Iroquois Master Fund Ltd. in connection with this Agreement and
the other Transaction Documents. 

 21. Survival. The representations, warranties, agreements and covenants contained herein shall
survive the Closing and the delivery and/or exercise of the Securities, as applicable. 
 22. 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. 

 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. 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. 
 2. 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
                            , 2007, 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)

  

 B-4 

 ACCEPTED ON BEHALF OF THE COMPANY: 
 QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC. 
  

			
		
	BY:	 	  
		 	Name:
		 	Title:

  
 Name of Investor:__________________

 Shares Purchased: __________________ 
 Dollar Amount
Invested: 
 $__________________________ 
  

 B-5Form of Common Stock Purchase Warrant A

 Exhibit 10.2 
 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. 
 COMMON STOCK PURCHASE
WARRANT A 
 To Purchase Up To
                     Shares of the Common Stock of 
 Quantum Fuel Systems Technologies Worldwide, Inc. 
 THIS IS TO CERTIFY THAT ________________________,
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 $2.09 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 New York generally are authorized or required by law or other government actions to close. 
 “Change of Control” means the occurrence of any of the following in one or a series of related transactions: (i) an acquisition
after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) under the Exchange Act) of more than one half of the voting rights or equity interests in the Company; (ii) a replacement of more than
one half of the 

  

 Page 1 of 20 

 
members of the Company’s board of directors that is not approved by those individuals who are members of the board of directors on the date hereof (or
other directors previously approved by such individuals); (iii) a merger or consolidation of the Company into a non-Public company, or a sale of more than one half of the assets of the Company in one or a series of related transactions, unless
following such transaction or series of transactions, the holders of the Company’s securities prior to the first such transaction continue to hold at least 50 % of the voting rights and equity interests in the surviving entity or acquirer
of such assets; (iv) a recapitalization, reorganization or other transaction involving the Company or any Subsidiary that constitutes or results in a transfer of more than one half of the voting rights or equity interests in the Company;
(v) consummation of a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act with respect to the Company. 
 “Closing Date” means June 22, 2007. 
 “Commencement Date” means December 22, 2007.

 “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 

  

 Page 2 of 20 

 
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-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 $2.09 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 December 22, 2014, subject to modification as provided herein and extended, day for day, to the extent t that the company does not have sufficient authorized shares after September 30, 2007
to issue all Warrant Shares under this Warrant and all similar warrants issued on or about the date of this Warrant. 
 “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 Securities Purchase Agreement 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. 
  

 Page 3 of 20 

 “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. 
 “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 __________ 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 Commencement 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, and (ii) payment of the
Warrant Price as provided herein. 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 

  

 Page 4 of 20 

 
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 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, (ii) wire transfer of immediately available funds to the account of the Company or (iii) a cashless exercise, if eligible under Section 5 below. 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 not be be freely transferable
until such time that the Company receives shareholder approval to increase 

  

 Page 5 of 20 

 
the number of its authorized shares. Upon receipt of such approval, then the Warrants and Warrant Stock shall be freely tradeable, 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 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, except if such transfer is to an Affiliate of such Holder; (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. NOTWITHSTANDING THE FOREGOING, THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE 

  

 Page 6 of 20 

 
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY SUCH SECURITIES.” 
 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). 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) Business Days following the
delivery by an Investor 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 effect
the reissuance and/or transfer and an opinion of Investor’s counsel reasonably acceptable to the Company), issue irrevocable transfer agent instructions and cause to be delivered to such Investor 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. 
 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. 
 3.4 In addition to any other rights available to a Holder, if the Company fails to deliver to the Holder a certificate representing Warrant Shares by the third Trading Day after exercise of this Warrant in full compliance with
Section 2.1, and if after such third Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant 

  

 Page 7 of 20 

 
Shares that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three Trading Days after the
Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or
certificates representing such Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Price on the date of
the event giving rise to the Company’s obligation to deliver such certificate. 
 3.5 The Company’s obligations to
issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any
violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure
to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
 3.6 Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax,
withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay
any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be responsible for all other
tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof. 
 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. 
 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; 
  

 Page 8 of 20 

 (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 
 (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 

  

 Page 9 of 20 

 
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 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. 
  

 Page 10 of 20 

 (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 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 

  

 Page 11 of 20 

 
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. Notwithstanding the rights set forth in this Section 4.4, if any Change of Control constitutes or results in (a) a “going private” transaction as defined in Rule 13e-3 under the Exchange Act, or
(b) an acquisition primarily for cash, or (c) an acquisition, merger or sale with or into a Person not traded on the Nasdaq, American Stock Exchange or the New York Stock Exchange, then the Company (or any such successor or surviving
entity) will redeem this Warrant from the Holder for a purchase price, payable in cash on the closing date of such transaction, equal to the Black Scholes value of the remaining unexercised portion of this Warrant on the closing date of such
transaction, unless the Holder gives the Company written notice rejecting the redemption within 10 days of the date the Company gives the Holder written notice of the Holder’s right of redemption. 
 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. 
 4.6 Number of Warrant Shares. Simultaneously with any
adjustment to the Exercise Price pursuant to Section 4.1, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise
Price payable hereunder for the increased or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment. 
 4.7 Calculations. All calculations under this Section 4 shall be made to the nearest cent or the nearest 1/100th of a
share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of
Common Stock. 
 4.8 Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this
Section 4, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and
adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based.
The Company will promptly deliver a copy of each such certificate to the Holder within 10 Trading Days of the occurrence of such adjustment. 
  

 Page 12 of 20 

 4.9 Notice of Corporate Events. If the Company (i) declares a dividend or any
other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary,
(ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Change of Control or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then
the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least 20 calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order
to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so as to
participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice. 
 5. Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds; provided, however, that if the Registration
Statement is not effective or not available for resale, the Holder may satisfy its obligation to pay the Exercise Price through a “cashless exercise,” in which event the Company shall issue to the Holder the number of Warrant Shares
determined as follows: 
  

			
	 	  	 X = Y [(A-B)/A]

		
	where:	  	
		
		  	 X = the number of Warrant Shares to be issued to the Holder.

		
		  	 Y = the number of Warrant Shares with respect to which this Warrant is being exercised.

		
		  	 A = the arithmetic average of the VWAP for the five Trading Days immediately prior to (but not including) the Exercise Date.

		
		  	 B = the Exercise Price.

 For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this
Warrant was originally issued pursuant to the Purchase Agreement. 
 6. 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. 
 7. Reservation and Authorization of Common Stock. From and after such time that the Company obtains shareholder approval to increase the Company’s number of authorized 

  

 Page 13 of 20 

 
shares, 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. 
 8. 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. 
 9. 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 and Registration Rights Agreement. The Holder acknowledges that pursuant to the Purchase Agreement and
Registration Rights 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. 
 10. 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. 
 11. 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. 
 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. 
  

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 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. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be
affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision
in 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. 
 12.7 Governing Law. ALL QUESTIONS CONCERNING THE
CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE
ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR
PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY
(WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE
DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 
 12.8 Entire Agreement. This Warrant, together with the Purchase Agreement which this Warrant is subject to and pursuant to which it is given, constitutes 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. 
  

 Page 15 of 20 

 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 __, 2007 
  

			
	 Quantum Fuel Systems Technologies
 Worldwide, Inc.

		
	By:	 	  
	Name:	 	
	Title:	 	

  

 Page 16 of 20 

 EXHIBIT A 
 SUBSCRIPTION FORM 
 [To be executed only upon exercise of Warrant] 
 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. 
 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.] 
 3. The Holder intends that payment of the Exercise Price shall be made as (check one): 
  ̈   “Cash Exercise” under
Section 5 
  ̈  
“Cashless Exercise” under Section 5 
  

	
	
	   
	(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 17 of 20 

 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 18 of 20 

 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 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 OPINION OF 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 19 of 20 

 IN WITNESS WHEREOF, the Holder has caused this Investment Representation Letter to be executed this ___ day of
_______________, 20__. 
  

			
	[Name]
		
	By:	 	  
	Name:	 	
	Title:	 	

  

 Page 20 of 20

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