| Date: | March 9, 2007 |
|-------|---------------|

| To: | Altairnano Management Team |
|-----|----------------------------|

| From: | Alan J. Gotcher |
|-------|-----------------|

| Subject: | Altairnano 2007 Incentive Plan |
|----------|--------------------------------|

|   | · | The Company Performance target is comprised of two financial components: |
|--------|--------|--------------------------------------------------------------------------|

| § | Cash at Year End: | $13.0 M |  75% weight |
|--------|-------------------|---------|------------------|
| § | Total Revenue:    | $16.5 M |  25% weight |
|   |              |    |             |

|   | · | There are two groups of employees in the plan.  Each group has its own incentive targets: |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | § | Employees at Levels 2 to 8 have 50% of Incentive Bonus based on Company Performance and 50% on Individual Performance; the Incentive Multiplier is capped at 150% for Company Performance and 110% for Individual Performance. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Employees at Levels 9 to 13 (including executive officers) have 100% of Incentive Bonus based on Company Performance; the Incentive Multiplier is capped at 150% of Company Performance. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incentive Plan payout is based on performance versus variable Incentive Multiplier payout: |
|--------|--------|--------------------------------------------------------------------------------------------|

----

|             |          |          | %           |    % |
|------------------|---------------|---------------|-------------|---------------------|
| Criteria         | Objective     | Actual        | Performance | Payout              |
|             |          |          |        |                |
| Cash at Year End | $13.0 million | $13.5 million | 104%        | 128%                |
| Revenue          | $16.5 million | $16.5 million | 100%        | 120%                |

|             |          |          | %           |    % |
|------------------|---------------|---------------|-------------|---------------------|
| Criteria         | Objective     | Actual        | Performance | Payout              |
|             |          |          |        |                |
| Cash at Year End | $13.0 million | $15.0 million | 115%        | 150%                |
| Revenue          | $16.5 million | $20.0 million | 121%        | 162%                |

| Altairnano Executive | Target Bonus |
|----------------------|--------------|
|                 |         |
| Steve Balogh         | $114,000.00  |
| Ed Dickinson         | $114,000.00  |
| Alan Gotcher         | $288,000.00  |
| Bruce Sabacky        | $114,000.00  |