<SUBMISSION>
<ACCESSION-NUMBER>0000950123-11-000724
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20101230
<ITEMS>1.01
<ITEMS>3.02
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20110105
<DATE-OF-FILING-DATE-CHANGE>20110105
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CLEAN DIESEL TECHNOLOGIES INC
<CIK>0000949428
<ASSIGNED-SIC>2810
<IRS-NUMBER>061393453
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-33710
<FILM-NUMBER>11510936
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4567 TELEPHONE ROAD
<STREET2>SUITE 206
<CITY>VENTURA
<STATE>CA
<ZIP>93003
<PHONE>805 639 9458
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>4567 TELEPHONE ROAD
<STREET2>SUITE 206
<CITY>VENTURA
<STATE>CA
<ZIP>93003
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c10593e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="margin-left: 0.25in; width: 7.5in;font-family: 'Times New Roman',Times,serif">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): December 30, 2010</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CLEAN DIESEL TECHNOLOGIES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD nowrap align="center" valign="top"><B>DELAWARE
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>001-33710
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>06-1393453</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(State or other jurisdiction<BR>
of incorporation)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Commission File Number)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="48%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD align="center" valign="top"><B>4567 TELEPHONE ROAD, SUITE 206<BR>
VENTURA, CALIFORNIA
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>&nbsp;<BR>93003</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(Address of principal executive offices)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: <B>(805) 639-9458</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B></B></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="border-top: 1px solid #000000">(Former name or former address, if changed since last report.)</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio --> </DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">On December&nbsp;30, 2010, Clean Diesel Technologies, Inc. (the &#147;Company&#148;) executed a Loan Commitment
Letter with Kanis S.A. pursuant to which Kanis S.A. loaned the Company $1,500,000. The loan bears
interest on the unpaid principal at a rate of six percent (6%), with interest only payable
quarterly on each March&nbsp;31, June&nbsp;30, September&nbsp;30 and December&nbsp;31, commencing March&nbsp;31, 2011. The
loan matures on June&nbsp;30, 2013. In addition to principal and accrued interest, the Company is
obligated to pay Kanis S.A. at maturity a &#147;Payment Premium&#148; ranging from $100,000 to $200,000 based
proportionally on the number of days that the loan remains outstanding. There is no prepayment
penalty. The loan is unsecured. Pursuant to the terms of the Loan Commitment Letter, the Company
issued to Kanis S.A. the Loan Warrants described in Item&nbsp;3.02 below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The proceeds of the loan were used, together with cash on hand, to pay in full the balance of the
obligations of the Company&#146;s subsidiary, Catalytic Solutions, Inc. (&#147;CSI&#148;), under the Settlement
Agreement referred to below under Item&nbsp;8.01 of this Current Report on Form 8-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The above description of the material terms of the Loan Commitment Letter (which includes the form
of promissory note and the form of Loan Warrant) is qualified in its entirety by reference to the
text of the agreement, which is Exhibit&nbsp;10.1 to this Current Report on Form 8-K and is incorporated
by reference herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;3.02 Unregistered Sales of Equity Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">As noted above in Item&nbsp;1.01, as contemplated by the terms of the Loan Commitment Letter, on
December&nbsp;30, 2010, we issued warrants to acquire 25,000 shares of our common stock at $10.40 per
share to Kanis S.A. (the &#147;Loan Warrants&#148;). The Loan Warrants are exercisable on or after June&nbsp;30,
2013 and expire on the earlier of (x)&nbsp;June&nbsp;30, 2016 and (y)&nbsp;the date that is 30&nbsp;days after we give
notice to the warrant holder that the market value of one share of our common stock has exceeded
130% of the exercise price of the warrant for 10 consecutive days, which 10 consecutive days
commence on or after June&nbsp;30, 2013. We did not receive any cash consideration for the issuance of
the warrants, which were issued in connection with the Loan Commitment Letter. We relied on the
private placement exemption provided by Regulation&nbsp;S.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The disclosure in Item&nbsp;1.01 of this Current Report on Form 8-K is incorporated by reference into
this Item.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">In December&nbsp;2010, we issued an aggregate 153,333 shares of our common stock, $0.01 par value per
share, to two accredited investors (including Kanis S.A.) upon the exercise of warrants issued on
October&nbsp;15, 2010 to such investors in a Regulation&nbsp;S capital raise (described below) for aggregate
gross proceeds of $1,214,397 ($7.92 per share). We also issued to such accredited investors
replacement warrants to acquire an aggregate 153,333 shares at $7.92 per share. Such warrants
expire on the earlier of (x)&nbsp;the third anniversary of the date of issuance and (y)&nbsp;the date that is
30&nbsp;days after we give notice to the warrant holder that the market value of one share of our common
stock has exceeded 130% of the exercise price of the warrant for 10 consecutive days. An aggregate
25,000 warrants were exercised and 25,000 shares and 25,000 replacement warrants were issued on
December&nbsp;21, 2010 and an aggregate 128,333 warrants were exercised and 128,333 shares and 128,333
replacement warrants were issued on December&nbsp;22, 2010. We did not receive any cash consideration
for the issuance of the replacement warrants, which were issued in exchange for the exercise by
such investors of the warrants received in our October&nbsp;2010
Regulation&nbsp;S capital raise. We relied on the private placement exemption provided by Regulation&nbsp;S
for such transactions.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;8.01 Other Events.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">As previously reported, on October&nbsp;20, 2010, CSI and a CSI subsidiary entered into a comprehensive
agreement with M.N. Mansour and M.N. Mansour, Inc. (collectively &#147;Mansour&#148;) to end all outstanding
litigation and arbitration claims and other disputes between the parties relating to the agreements
entered into in connection with CSI&#146;s purchase of Applied Utility Systems assets in August&nbsp;2006
(the &#147;Settlement Agreement&#148;). As contemplated by the Settlement Agreement, on October&nbsp;22, 2010,
CSI paid $1.5&nbsp;million to Mansour as consideration for the settlement. CSI also agreed to pay an
additional $2.0&nbsp;million to Mansour in eight equal installments during the period ending September
30, 2012 (the &#147;Subsequent Payments&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">On January&nbsp;4, 2011, using proceeds of the loan referred to in Item&nbsp;1.01 above and cash on hand, CSI
paid Mansour $1,575,000 as satisfaction in full of its obligation to make the Subsequent Payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Exhibits.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description of Exhibits</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Loan Commitment Letter, dated December&nbsp;30, 2010, between
Kanis S.A. and Clean Diesel Technologies, Inc.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of $1,500,000 promissory note dated December&nbsp;30, 2010
(included as Schedule&nbsp;A to Loan Commitment Letter filed as
Exhibit&nbsp;10.1 to this current report on Form&nbsp;8-K)</DIV></TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Form of warrant issued to Kanis S.A. dated December&nbsp;30,
2010 (included as Schedule&nbsp;B to Loan Commitment Letter
filed as Exhibit&nbsp;10.1 to this current report on Form&nbsp;8-K)</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>CLEAN DIESEL TECHNOLOGIES, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">January 5, 2011&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Nikhil A. Mehta
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Nikhil A. Mehta&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c10593exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Clean Diesel Technologies, Inc.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>Loan Commitment Letter</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B><I>This letter is directed at persons having professional experience in matters relating to
investments and any investment in the Company hereunder will be engaged in only with such persons.
Persons who do not have professional experience in matters relating to investments should not sign
this letter.</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Kanis S.A. (the &#147;<B>Lender</B>&#148;), with an address c/o S G Associates Limited, 82Z Portland Place, London,
England, W1B 1NS, hereby agrees with Clean Diesel Technologies, Inc., a Delaware corporation (the
&#147;<B><I>Company</I></B>&#148;), with an office at 4567 Telephone Road, Suite&nbsp;206, Ventura, California, USA 93003 to
lend to the Company US$1,500,000 (the &#147;<B><I>Loan&#148;</I></B>) upon the terms set forth below, as to which Company
and Lender agree. In connection with the Loan, the Company will issue to the Lender warrants
(&#147;<B><I>Warrants&#148;</I></B>) to purchase 25,000 shares of the Company&#146;s common stock, par value $0.01 per share
(the &#147;<B><I>Warrant Shares</I></B>&#148;), as set forth below (the &#147;<B><I>Offering</I></B>&#148;). The Offering is made pursuant to and
in reliance upon Regulation&nbsp;S promulgated under the U.S. Securities Act of 1933, as amended (the
&#147;<B><I>Act</I></B>&#148;).
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commitment:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">Lender agrees to loan to the Company US$1,500,000 on
or before December&nbsp;31, 2010, and, subject to the terms
and conditions set forth herein, Company agrees to
issue to Lender the Note and the Warrants. Lender
acknowledges that this commitment (i)&nbsp;is irrevocable,
(ii)&nbsp;is conditioned upon acceptance by or on behalf of
the Company and may be accepted or rejected in whole
or in part by the Company in its sole discretion and
(iii)&nbsp;will expire if not accepted by the Company on or
prior to December&nbsp;31, 2010.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Promissory Note:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">The Loan shall be evidenced by a promissory note (the
&#147;<B><I>Note</I></B>&#148;) in the form of <U>Schedule&nbsp;A</U> hereto.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Warrant:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">The Warrants shall be exercisable commencing upon the
Maturity Date (as defined in the Note), and have an
exercise price per Warrant Share equal to the average
of the closing price per Share for the 5 trading days
immediately preceding the closing of the Loan. The
Warrants will have an expiration date upon the earlier
to occur of (x)&nbsp;the date that is three years from the
Maturity Date or (y)&nbsp;the thirtieth day after the
Company provides notice to the holder of the Warrant
that the Closing Bid Price had exceeded 130% of the
exercise price for ten consecutive trading days (which
ten day period begins on or after the Maturity Date).
The Warrants would not be publicly traded or
registered on any securities exchange. The form and
the terms and conditions of the Warrants shall be that
of <U>Schedule&nbsp;B</U> attached to this Commitment Letter and
the terms and conditions set forth on said <U>Schedule&nbsp;B</U>,
and not the summary set forth in this paragraph, shall
govern the interpretation of the Warrants.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lender Status:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">Lender represents that it is a &#147;Qualified Investor&#148;
within the meaning of Section&nbsp;86 of the Financial
Services and Markets Act 2000 and an &#147;investment
professional&#148; within the meaning of Article&nbsp;19 of the
FSMA 2000 (Financial Promotion) Order 2005 and is not
a &#147;U.S. Person&#148; within the meaning of Rule&nbsp;902 of
Regulation&nbsp;S promulgated under the Act.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Voting Rights:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">Warrant Shares shall have one vote per share in
accordance with Delaware law. Warrant Shares shall
have no voting rights until the Warrants are exercised
and the Warrant Shares are issued and outstanding.
Warrants shall have no voting rights.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Resale Limitations:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">Lender agrees to not sell any Warrants or any Warrant
Shares for a period of not less than six (6)&nbsp;months
from the date of issuance by the Company of the
relevant Warrant or Warrant Shares to Lender.
Moreover, the purchase and sale of the Warrants and
Warrant Shares are subject to Regulation&nbsp;S promulgated
under the Act by the U.S. Securities and Exchange
Commission and relating to an available exemption from
registration for the sale of securities by U.S.
companies in offshore transactions. To that end Lender
represents, certifies and agrees that (i)&nbsp;it is not a
&#147;U.S. Person&#148; (within the meaning of Regulation&nbsp;S) and
is not acquiring the Warrants and Warrant Shares for
the account or benefit of any U.S. Person, (ii)&nbsp;Lender
did not become aware of the Company or the Units
through any form of &#147;directed selling efforts&#148; (as
defined in Rule&nbsp;902 of Regulation&nbsp;S), and no general
solicitation or general advertising in violation of
the Act has been or will be used nor will any offers
by means of any directed selling efforts in the United
States be made by Lender or any of its representatives
in connection with the offer and sale of&#146; any of the
Warrants or the Warrant Shares, (iii)&nbsp;at the time of
the origination of contact concerning the transactions
contemplated by this Commitment Letter and on the date
of execution and delivery of this Commitment Letter by
Lender, Lender was outside the United States, (iv)
with respect to the Warrants and Warrant Shares, it
shall comply with the Transfer Restrictions set out on
Schedule&nbsp;B attached to this Commitment Letter and made
a part hereof, (v)&nbsp;that such Transfer Restrictions
shall be set out in a legend on certificate(s)
representing the Warrant Shares and the Warrants, and
(vi)&nbsp;that the Company will refuse (or cause its
transfer agent and registrar to refuse) transfer and
registration of any Warrant Shares or Warrant
transferred other than in accordance with the Transfer
Restrictions.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Funding:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">Lender shall deliver US$1,500,000 by wire transfer to
the Company&#146;s account, in U.S. Dollars, on or before
December&nbsp;31, 2010.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Law:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">This Commitment Letter and the purchase of the
Warrants and the Warrant Shares shall be governed by
Delaware law and the Note shall be governed by
California law, in each case without reference to the
conflicts of laws rules of any jurisdiction.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Miscellaneous:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">This Commitment Letter is not assignable by Lender
without the consent of the Company. The
representations and warranties made by the Lender in
this Commitment Letter shall survive the closing of
the transactions contemplated hereby. <U>Schedule&nbsp;C</U> is an
integral part of this Commitment Letter and shall be
deemed incorporated by reference herein. This
Commitment Letter may be executed in one or more
counterparts, all of which together shall constitute
one instrument.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signatures:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV align="justify">This Commitment Letter has been executed and delivered
by the following authorized representatives of the
Lender and the Company.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B><I>&#091;Signature page follows.&#093;</I></B>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>&#091;Signature Page to Clean Diesel Technologies, Inc.<BR>
Loan Commitment Letter&#093;</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>CLEAN DIESEL TECHNOLOGIES, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>KANIS, S.A.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nikhil A. Mehta
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Nikhil A. Mehta
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ S. A. Godfrey for Marek Services LLC
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Susan Godfrey
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Chief Financial Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Company Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated: December&nbsp;30, 2010
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dated: December&nbsp;30, 2010</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Schedule&nbsp;A<BR>
to Clean Diesel Technologies, Inc.<BR>
Loan Commitment Letter</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>PROMISSORY NOTE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Principal Amount US$1,500,000.00
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Ventura, California</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">December&nbsp;30, 2010</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For value received, the undersigned Clean Diesel Technologies, Inc., a Delaware corporation
(&#147;<U>Maker</U>&#148;), promises to pay to Kanis, S.A. (&#147;<U>Payee</U>&#148;), or order, c/o S G Associates
Limited, 82Z Portland Place, London, England, W1B 1NS, the principal sum of One Million Five
Hundred Thousand United States Dollars ($1,500,000.00), together with interest at the rate
hereinafter provided for on the unpaid principal balance of this promissory note (this
&#147;<U>Note</U>&#148;) from time to time outstanding until paid in full and the Payment Premium (as
defined below).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Interest shall accrue on the unpaid and outstanding principal balance of this Note commencing on
the date hereof and continuing until repayment of this Note in full at a rate per annum equal to
Six Per Cent (6.00%), with interest only payable quarterly on each March&nbsp;31, June&nbsp;30, September&nbsp;30
and December&nbsp;31, commencing March&nbsp;31, 2011. The principal, along with any accrued but unpaid
interest, and the Payment Premium shall be due and payable in full on June&nbsp;30, 2013 (the &#147;Maturity
Date&#148;). This Note shall bear no prepayment penalty.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As used herein, Payment Premium means the amount determined by multiplying US$200,000 times a
fraction, the numerator of which is the number of days that have elapsed between December&nbsp;30, 2010
and the Maturity Date, and the denominator of which is 913; provided that the Payment Premium in no
event shall be greater than US$200,000 or less than US$100,000.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Maker shall make all payments hereunder to Payee in lawful money of the United States and in
immediately available funds. Payments shall be applied first to accrued and unpaid interest, then
to principal.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The maturity of this Note may be accelerated by Payee in the event Maker is in breach or default of
any of the terms, conditions or covenants of this Note or any other agreement of Maker with Payee
or its affiliates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Maker waives presentment, demand, notice of demand, protest, notice of protest or notice of
nonpayment in connection with the delivery, acceptance, performance, default or enforcement of this
Note or of any document or instrument evidencing any security for payment of this Note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Failure at any time to exercise any of the rights of Payee hereunder shall not constitute a waiver
of such rights and shall not be a bar to exercise of any of such rights at a later date.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Maker agrees to pay all reasonable costs of collection and enforcement of this Note, including but
not limited to reasonable attorney&#146;s fees and disbursements, whether or not any lawsuit or other
legal action is
instituted to enforce this Note, including without limitation if Payee seeks the advice or
assistance of an attorney as a result of or in connection with any default, or if Maker becomes the
debtor or otherwise becomes the subject of any bankruptcy, insolvency or other proceeding for the
readjustment of indebtedness.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">No addition to or amendment of this Note shall be admissible, enforceable or effective unless it is
set forth in a writing duly executed by the party against whom the addition or amendment is sought
to be enforced.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Nothing contained in this Note shall be deemed to require the payment of interest or other charges
by Maker or any other person in excess of the amount which the Payee may lawfully charge under the
applicable usury laws. In the event that Payee shall collect moneys which are deemed to constitute
interest which would increase the effective interest rate to a rate in excess of that permitted to
be charged by applicable law, all such sums deemed to constitute interest in excess of the legal
rate shall be credited against the principal balance of this Note then outstanding, and any excess
shall be returned to Maker.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This Note will be governed by and construed under the laws of the State of California. In any
action brought under or arising out of this Note, the Maker hereto hereby consents to the
jurisdiction of any competent court within the State of California and consents to service of
process by any means authorized by the laws of the State of California.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed in California as of
the date first written below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">Dated: December&nbsp;30, 2010</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Maker:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CLEAN DIESEL TECHNOLOGIES, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nikhil A. Mehta
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Nikhil A. Mehta<BR>
Title: Chief Financial Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Schedule&nbsp;B<BR>
to Clean Diesel Technologies, Inc.<BR>
Loan Commitment Letter</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Form of Warrant</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">WARRANT
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 70%"><B><I>No.&nbsp;12-03</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><B>THIS WARRANT HAS NOT BEEN AND WILL NOT REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS
WARRANT, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS WARRANT MAY NOT BE OFFERED, SOLD,
PLEDGED, OR OTHERWISE TRANSFERRED BY SUCH HOLDER PRIOR TO THE LATER OF THE (X)&nbsp;SIX MONTHS
FOLLOWING THE ISSUANCE HEREOF OR (Y)&nbsp;IF APPLICABLE, THREE MONTHS AFTER IT CEASES TO BE AN
AFFILIATE, OTHER THAN (1)&nbsp;TO THE COMPANY, (2)&nbsp;PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE &#147;SECURITIES ACT&#148;), AND IN
ACCORDANCE WITH ANY APPLICABLE LAWS OF ANY STATE OF THE UNITED STATES, (3)&nbsp;IN AN OFFSHORE
TRANSACTION COMPLYING WITH REGULATION S UNDER THE SECURITIES ACT, (4)&nbsp;PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144, IF APPLICABLE,
UNDER THE SECURITIES ACT OR (5)&nbsp;IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER
THE SECURITIES ACT BUT IS IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND IN
RELATION TO WHICH THE HOLDER HAS FURNISHED TO THE COMPANY AN OPINION TO SUCH EFFECT FROM
COUNSEL OF RECOGNISED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY PRIOR TO
SUCH OFFER, SALE, PLEDGE OR TRANSFER. THE HOLDER HEREOF, BY ACCEPTANCE OF THIS WARRANT,
REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS A NON-U.S. PERSON, AND
ACKNOWLEDGES THAT HEDGING TRANSACTIONS INVOLVING THIS WARRANT MAY NOT BE CONDUCTED UNLESS
CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT. THIS WARRANT IS NOT IMMEDIATELY
EXERCISEABLE.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>December&nbsp;30, 2010</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>25,000 Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Warrant for Purchase of Common Stock<BR>
of Clean Diesel Technologies, Inc.<BR>
(a Delaware Corporation)</B>

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Certifies that Kanis S.A. (the &#147;Holder&#148;), with an address c/o S G Associates Limited, 82Z
Portland Place, London, England, W1B 1NS, for value received and subject to the provisions
hereinafter set forth is entitled to purchase from Clean Diesel Technologies, Inc., a Delaware
corporation (the &#147;Company&#148;), 25,000 shares of Common Stock of the Company, par value $.01 per share
(the &#147;Shares&#148;), at a price of USD$10.40 per share (the &#147;Exercise Price&#148;) on or before 5:00 p.m.
local time at the then executive offices of the Company on or prior to the Expiration Date (as
defined below). This Warrant shall be void unless exercised on or before the Expiration Date.
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;<U>Commitment Letter</U>. This Warrant is issued pursuant to that certain Loan Commitment
Letter between the Holder and the Company (the &#147;Commitment Letter&#148;) relating to the loan by Holder
to the Company of US$1,500,000 (the &#147;Loan&#148;) and the issuances by the Company to the Holder of this
Warrant on the date hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;<U>Exercise; Expiration Date</U>. This Warrant may be exercised from time to time by the
Holder, on or after June&nbsp;30, 2013, as to the whole or any lesser number of the Shares upon tender
of this Warrant at the then executive office of the Company with a written notice signed by the
Holder to the attention of the Company Secretary expressing the Holder&#146;s intent to exercise the
same together with payment to the Company of the Exercise Price of the Shares stated in the notice
to be purchased. If this Warrant is exercised in respect of fewer than all of the Shares that may
be purchased under this Warrant, the Company shall execute a new warrant in the form of this
Warrant for the remaining Shares issuable under the original Warrant and deliver such new Warrant
to the Holder.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This Warrant and all rights hereunder will expire if not exercised by 5:00 p.m. prevailing local
time in New York, New York on the date (the &#147;Expiration Date&#148;) that is the earlier to occur of (i)
June&nbsp;30, 2016, and (ii)&nbsp;that date which is thirty (30)&nbsp;days after the giving of notice by the
Company to the Holder that the Fair Market Value of one Share has exceeded 130% of the Exercise
Price for ten (10)&nbsp;consecutive days (which 10-day period means, if the Shares are then listed or
traded on an exchange or otherwise quoted, 10 consecutive days commencing on or after June&nbsp;30, 2013
for which the Closing Bid Price is reported), and that the Warrant will therefore expire if not
exercised prior to the Expiration Date.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">&#147;Fair Market Value&#148; means (i)&nbsp;the consolidated closing bid price of one Share as reported on the
NASDAQ Stock Market, LLC or on any other principal national securities exchange on which the Shares
are then listed or admitted for trading or (ii)&nbsp;if the Shares are not then listed or
admitted for trading on any national securities exchange, the last reported sale price or, in case
no such sale takes place on each day during the 10-day period referred to above, the average of the
highest reported bid and the lowest reported asked quotation for the Shares, either case as
reported on any authorized interdealer quotation system (in each case, the &#147;Closing Bid Price&#148;).
If the Shares are not listed or admitted for trading on any national securities exchange or quoted
by any interdealer quotation system or a similar service, Fair Market Value means the fair market
value of a Share as determined by a majority of the directors of the Company&#146;s Board of Directors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;<U>No Stockholder Rights</U>. This Warrant does not confer upon the Holder or the Holder&#146;s
permitted Assignees any right whatsoever as a stockholder of the Company, including without
limiting the generality of the foregoing, the right to vote, to receive notices and the right to
receive dividends, prior to the exercise of the Holder&#146;s rights to purchase the Shares as provided
herein.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-2<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;<U>Compliance with Securities Laws</U>. This Warrant and the Shares have not been registered
under the Securities Act of 1933, as amended (the &#147;Act&#148;), or qualified under the securities laws of
the several states of the United States (&#147;State Laws&#148;). The Holder is aware that the issuance of
this Warrant and the issuance of the Shares are being made in reliance on Regulation&nbsp;S under the
Act. This Warrant and the Shares have been purchased for investment and not with a view to
distribution or resale, and may not be assigned, sold or made subject to a security interest,
pledged, hypothecated, or otherwise transferred without an effective registration statement for
such Warrant or Shares under the Act and qualification under State Laws, pursuant to an exemption
from registration and qualification, or an opinion of counsel satisfactory to the Company that such
registration and qualification are not required. Any Shares issued upon the exercise of this
Warrant (unless pursuant to an effective registration statement under the Act) shall bear the
following legend:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><B>THIS SECURITY HAS NOT BEEN AND WILL NOT REREGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE HOLDER HEREOF, BY
PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY
MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED BY SUCH HOLDER PRIOR TO
THE LATER OF (X)&nbsp;SIX MONTHS FOLLOWING THE ISSUANCE HEREOF OR (Y)&nbsp;IF APPLICABLE,
THREE MONTHS AFTER IT CEASES TO BE AN AFFILIATE, OTHER THAN (1)&nbsp;TO THE COMPANY, (2)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND IN
ACCORDANCE WITH ANY APPLICABLE LAWS OF ANY STATE OF THE UNITED STATES, (3)&nbsp;IN AN
OFFSHORE TRANSACTION COMPLYING WITH REGULATION S UNDER THE SECURITIES ACT, (4)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE
144, IF APPLICABLE, UNDER THE SECURITIES ACT
OR (5)&nbsp;IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT
BUT IS IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AND IN RELATION TO WHICH
THE HOLDER HAS FURNISHED TO THE COMPANY AN OPINION TO SUCH EFFECT FROM COUNSEL OF
RECOGNISED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY PRIOR TO SUCH
OFFER, SALE, PLEDGE OR TRANSFER. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY,
REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS A NON-U.S. PERSON,
AND ACKNOWLEDGES THAT HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE
CONDUCTED UNLESS CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">5.&nbsp;<U>Sale; Assignment</U>. (a)&nbsp;This Warrant may not be transferred, sold, or made subject to a
security interest or charge, pledged, hypothecated, or otherwise transferred absent compliance with
the transfer restrictions set forth above in this Warrant.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;Upon such compliance with the transfer restrictions and upon the delivery to the Company at its
then executive offices of this Warrant along with a duly completed Assignment Form substantially in
the form of <U>Exhibit&nbsp;A</U> hereto (and the required legal opinion, if any), the Company shall
execute and deliver a new Warrant in the form of this Warrant (including the legend set forth above
on the first page hereof, unless registered under the Act and any applicable State Laws), but
registered in the name of the assignee, to purchase the number of Shares or that fraction of the
Shares issuable under the original Warrant assigned to the assignee. In case the Holder shall
assign this Warrant with respect to fewer than all of the Shares that may be purchased under this
Warrant, the Company shall execute a new warrant in the form of this Warrant for the balance of
such Shares or the remaining fraction of the Shares issuable under the original Warrant and deliver
such new warrant to the Holder.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(c)&nbsp;Any transfer or sale or attempted transfer or sale of this Warrant in violation of any
provision of this Warrant shall be void, and the Company shall not record such transfer on its
books or treat any purported transferee of the Warrant as the owner of the Warrant for any purpose.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;<U>Representations of Holder</U>. The Holder represents and covenants to the Company by
acceptance of this Warrant, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">(a)&nbsp;That the Holder is not a U.S. Person (as defined in Rule&nbsp;902 of Regulation&nbsp;S promulgated
under the Act and is not acquiring the Warrant for the account or benefit of any U.S. Person.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">(b)&nbsp;The Holder acquired this Warrant from the Company and will acquire Shares issuable upon
exercise hereof, for its own account, for investment purposes only and not with a
view to the resale and distribution thereof, in whole or in part.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">(c)&nbsp;The Holder shall comply with the transfer restrictions set out above and in the Commitment
Letter (including, without limitation, <U>Schedule&nbsp;C</U> attached thereto and made a part thereof)
and the Holder understands that this Warrant and the Shares issuable on exercise hereof must be
held indefinitely unless subsequently registered under the Act and qualified under any applicable
State Laws, or unless exemptions from registration and qualification are otherwise available.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">(d)&nbsp;The Holder acknowledges and agrees that hedging transactions involving this Warrant or the
Shares issuable upon exercise of this Warrant may not be conducted unless conducted in compliance
with the Act.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">7.&nbsp;<U>Capital Adjustments</U>. The Exercise Price and the number of Shares purchasable hereunder
are subject to adjustment from time to time, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(a)&nbsp;If at any time there shall be a merger or consolidation of the Company with or into another
corporation when the Company is not the surviving corporation, then, as part of such merger or
consolidation, lawful provision shall be made so that the Holder shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified herein and upon payment of the
aggregate Exercise Price then in effect, the number of Shares of stock or other securities or
property of the successor corporation resulting from such merger or consolidation, to which the
Holder would have been entitled in such merger or consolidation, if this Warrant had been exercised
immediately before such merger or consolidation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;If the Company at any time shall, by subdivision, combination or reclassification of securities
or otherwise, change any of the Shares into the same or a different number of securities of any
other class or classes, this Warrant shall thereafter represent the right to acquire such number
and kind of securities as would have been issuable as the result of such change with respect to the
Shares immediately prior to such subdivision, combination, reclassification or other change.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(c)&nbsp;If the Company at any time shall split or subdivide its Common Stock, the Exercise Price shall
be proportionately decreased and the number of Shares issuable pursuant to this Warrant shall be
proportionately increased. If the Company at any time shall combine its Common Stock, the Exercise
Price shall be proportionately increased and the number of Shares issuable pursuant to this Warrant
shall be proportionately decreased.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">8.&nbsp;<U>Governing Law</U>. This Warrant shall be governed by and construed for all purposes by in
accordance with the laws of the State of Delaware without reference to the conflicts of laws rules
of any jurisdiction.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">9.&nbsp;<U>Notices</U>. Any notice effecting an exercise of this Warrant shall, if in writing, be
effective upon receipt by the Company of the Warrant, notice of exercise and payment of the
Exercise Price.
Other notices shall, if in writing, be effective on receipt, if delivered in person or by facsimile
transmission, or, if given by mail, four (4)&nbsp;days after deposit in the mail service, air-mail
postage pre-paid, in any case to the then executive office of the Company to the attention of the
Company Secretary, or, if to the Holder, to the address given above or to such other address by
notice so given.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">10.&nbsp;<U>Holidays</U>. If the last or appointed day for the taking of any action or the expiration
of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such
action may be taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or a legal holiday.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">11.&nbsp;<U>Lost Warrants</U>. The Company covenants with the Holder that, upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant and, in the case of any such loss, theft, or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation, upon surrender and
cancellation of such Warrant, the Company will make and deliver a new Warrant of like tenor, in
lieu of the lost, stolen, destroyed or mutilated Warrant.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">12.&nbsp;<U>Fractional Shares</U>. Fractional Shares may not be purchased hereunder. In lieu of
fractional Shares the Holder shall be entitled to receive a cash payment equal to the fair market
value for such fractional share. Fair market value shall be the consolidated closing bid price on
the NASDAQ Stock Market, LLC on the date of exercise, or, if the Shares are not listed on such
exchange, the closing price on such recognized exchange on which the Shares may then be listed, or,
if the Shares shall not be listed on an exchange, then the average of the bid and asked prices of
the Shares, if the Shares are traded in an over-the-counter market, or, if not regularly traded in
an over the counter market, or if the Directors of the Company determine that the trading prices do
not represent fair value, then such fair value as determined by the Directors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">14.&nbsp;<U>Headings</U>. The headings in this Warrant are for convenience of reference only and shall
in no way modify or affect the meaning or construction of any of the terms or provisions of this
Warrant.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>&#091;Signature page follows.&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-5<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WITNESS the seal of the Company and the signature of its duly authorized officers as of the date
first written above.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" colspan="3"><DIV style="margin-left:0px; text-indent:-0px">CLEAN DIESEL TECHNOLOGIES, INC.
</DIV></TD>


    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nikhil A. Mehta
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: Nikhil A. Mehta<BR>
Title: Chief Financial Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attest:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ David E. Shea
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Name: David E. Shea<br>
Title: Corporate Controller
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>Exhibit&nbsp;A to Warrant</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Form of Assignment<BR>
&#091;To be executed only upon permitted transfer of Warrant&#093;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">To: Clean Diesel Technologies, Inc.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For value received, the undersigned registered holder of the attached Warrant hereby sells, assigns
and transfers unto <B>&#091;insert name of transferee&#093; </B>pursuant to and in accordance with the terms of such
Warrant, the right represented by such Warrant to purchase Shares of Clean Diesel Technologies,
Inc. to which such Warrant relates and appoints Attorney to make such transfer on the books of
Clean Diesel Technologies, Inc. maintained for such purpose, with full power of substitution in the
premises.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Warrant Holder
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">By:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Name:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Title:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Signed in the presence of:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Date:
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Schedule&nbsp;C<BR>
to Clean Diesel Technologies, Inc.<BR>
Loan Commitment Letter</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">TRANSFER RESTRICTIONS
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Warrants and Warrant Shares (collectively, the &#147;Warrant Securities&#148;) have not been registered
under the U.S. Securities Act of 1933, as amended (the &#147;Securities Act&#148;), and may not be offered or
sold to or for the account or benefit of &#147;U.S. Persons&#148; (as defined in Rule&nbsp;902 of Regulation&nbsp;S
promulgated under the Securities Act), except pursuant to Regulation&nbsp;S, the registration
requirements of the Securities Act or an exemption from the registration requirements of the
Securities Act.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Accordingly, the Warrant Securities are being placed outside the U.S. to non-U.S. Persons in an
offshore transaction in reliance on Regulation&nbsp;S under the Securities Act. The terms &#147;United
States&#148; and &#147;U.S. Person&#148; have the respective meanings given to those terms in Regulation&nbsp;S under
the Securities Act.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Each holder of Warrant Securities will be deemed to have represented and agreed as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It is acquiring the Warrant Securities for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account or person is
not a U.S. Person, and it is aware that the acquisition of Warrant Securities is being made in
reliance on Regulation&nbsp;S under the Securities Act.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It acknowledges that the Warrant Securities have not been registered under the Securities Act
and may not be offered or sold except as provided below.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It understands and agrees:</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">that the Warrant Securities are being offered only outside the United States to
non-U.S. Persons in an offshore transaction in reliance upon Regulation&nbsp;S under the
Securities Act; and</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">that it shall not offer, sell, pledge or otherwise transfer any Warrant Security
within six (6)&nbsp;months after the date of original issuance of such Warrant Security or, in
the case of an affiliate (as defined in Rule&nbsp;144 promulgated under the Securities Act) of
the Company, at any time until the later of (i)&nbsp;one (1)&nbsp;year after the date of original
issuance of such Warrant Security and (ii)&nbsp;three months after it ceases to be an
affiliate of the Company, other than (in each case as indicated and certified by the
transferor, in the case of Primary Shares or New Warrant Shares, in the Certificate of
Transfer on the reverse of the certificate representing such Primary Shares or New
Warrant Shares,
and, in the case of New Warrants, in a certificate furnished by the transferor to the
Company upon request for transfer):</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">to the Company;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">pursuant to an effective registration statement under the Securities Act
and in accordance with any applicable securities laws of any state of the United
States;</DIV></TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-8<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">in an offshore transaction in accordance with Regulation&nbsp;S under the
Securities Act;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">pursuant to an exemption from the registration requirements of the
Securities Act; or</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">in a transaction that does not require registration under the Securities
Act but is in accordance with applicable state securities laws and in relation to
which the transferor has furnished to the Company an opinion to such effect from
counsel of recognized standing in form and substance satisfactory to the Company
prior to such offer, sale, pledge or transfer.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It understands that in any resale and transfer of Warrant Securities it will, and each
subsequent holder thereof is required to, notify any purchaser of Warrant Securities of the
resale restrictions referred to above, if then applicable. This notification requirement will
be satisfied by virtue of the fact that the following legend will be placed on the
certificates representing the Primary Shares, the New Warrants and the New Warrants Shares,
unless otherwise agreed to by the Company:</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%"><B>THIS SECURITY HAS NOT BEEN AND WILL NOT REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS
SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT BE OFFERED, SOLD,
PLEDGED, OR OTHERWISE TRANSFERRED BY SUCH HOLDER PRIOR TO THE LATER OF THE (X)&nbsp;SIX MONTHS
FOLLOWING THE ISSUANCE HEREOF OR (Y)&nbsp;IF APPLICABLE, THREE MONTHS AFTER IT CEASES TO BE AN
AFFILIATE, OTHER THAN (1)&nbsp;TO THE COMPANY, (2)&nbsp;PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE LAWS OF ANY STATE
OF THE UNITED STATES, (3)&nbsp;IN AN OFFSHORE TRANSACTION COMPLYING WITH REGULATION S UNDER THE
SECURITIES ACT, (4)&nbsp;PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144, IF APPLICABLE, UNDER THE SECURITIES ACT OR (5)&nbsp;IN A TRANSACTION THAT
DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT BUT IS IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AND IN RELATION TO WHICH THE HOLDER HAS FURNISHED TO THE COMPANY AN
OPINION TO SUCH EFFECT FROM COUNSEL OF RECOGNISED STANDING IN FORM AND SUBSTANCE
SATISFACTORY TO THE COMPANY PRIOR TO SUCH OFFER, SALE, PLEDGE OR
TRANSFER. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE
BENEFIT OF THE COMPANY THAT IT IS A NON-U.S. PERSON, AND ACKNOWLEDGES THAT HEDGING
TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS CONDUCTED IN COMPLIANCE
WITH THE SECURITIES ACT.</B>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It acknowledges that the foregoing restrictions apply to holders of beneficial interests in
the Warrant Securities as well as to holders of Warrant Securities.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">F.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It acknowledges that it shall not engage in any hedging transactions involving the Warrant
Securities unless in compliance with the Securities Act.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">G.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">It is a &#147;Qualified Investor&#148; within the meaning of Section&nbsp;86 of the Financial Services and
Markets Act 2000 and an &#147;investment professional&#148; within the meaning of Article&nbsp;19 of the FSMA
2000 (Financial Promotion) Order 2005.</DIV></TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-9<!-- /Folio -->
</DIV>




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