Document:

AMENDED AND RESTATED SECURITY AGREEMENT

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NAME & ADDRESS OF DEBTORS:

AIR METHODS CORPORATION
7301 S. Peoria Street
Englewood, CO 80112

MERCY AIR SERVICE, INC.
1670 Miro Way
Rialto, CA 92376

LIFENET, INC.
2207 Scott Avenue
St. Louis, MO 63103

ROCKY MOUNTAIN HOLDINGS, L.L.C.
800 South 3110 West
Provo, UT 84601

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NAME & ADDRESS OF SECURED PARTY:

PNC BANK, NATIONAL ASSOCIATION
Two Tower Center
East Brunswick, NJ 08816
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                                                           ABOVE SPACE FOR
                                                           FAA USE ONLY
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     THIS AMENDED AND RESTATED SECURITY AGREEMENT ("Security Agreement") dated
May 9, 2005 among AIR METHODS CORPORATION, a corporation organized under the
laws of the State of Delaware ("AMC"), ROCKY MOUNTAIN HOLDINGS, L.L.C., a
limited liability company formed under the laws of the State of Delaware
("RMH"), MERCY AIR SERVICE, INC., a corporation organized under the laws of the
State of California ("Mercy"), LIFENET, INC., a corporation formed under the
laws of the State of Missouri (formerly known as Arch Air Medical Service, Inc.)
("LNI") (AMC, RMH, Mercy and LNI, each a "Debtor" and collectively "Debtors")
and PNC BANK, NATIONAL

<PAGE>
ASSOCIATION ("PNC"), as agent for Lenders (as defined below) (PNC, in such
capacity, the "Agent" or "Secured Party").

                                    RECITALS

     A.     Pursuant to that certain Revolving Credit and Security Agreement
dated as of October 16, 2002 (as amended, the "Original Loan Agreement") among
Debtors, Secured Party and the financial institutions described therein
("Lenders"), Secured Party and Lenders agreed to extend credit to Debtors, upon
the terms and conditions set forth therein.

     B.     In order to induce Secured Party and Lenders to enter into the
Original Loan Agreement, pursuant to a Security Agreement dated October 16, 2002
and recorded by the Federal Aviation Administration on November 25, 2002, as
Conveyance No. E001487 (the "Original Security Agreement"), each Debtor granted,
pledged, assigned and conveyed to Secured Party for its benefit and the ratable
benefit of Lenders a continuing security interest in and to certain Collateral
(as defined in the Original Security Agreement), to secure all of its
Obligations (as defined in the Original Loan Agreement).

     C.     Pursuant to that certain Amended and Restated Revolving Credit, Term
Loan and Security Agreement dated May 9, 2005 (as amended, supplemented or
otherwise modified from time to time, the "Loan Agreement") among Debtors,
Secured Party and the Lenders described therein, Secured Party and Lenders
agreed to continue to extend credit to Debtors, and increase the maximum amount
of such credit, upon the terms and conditions set forth therein, and Debtors
agreed to provide additional Collateral to Secured Party for its benefit and the
ratable benefit of Lenders.

     D.     In order to induce Secured Party and Lenders to enter into the Loan
Agreement, Debtor has agreed to amend and restate the Original Security
Agreement and each Debtor does hereby ratify and reaffirm its previous grant,
pledge, assign and convey to Secured Party and hereby further grants, pledges,
assigns and conveys to Secured Party for its benefit and the ratable benefit of
Lenders a continuing security interest in and to the Collateral (as hereinafter
defined), to secure all of its Obligations (as defined in the Loan Agreement).

     E.     Secured Party and Lenders have conditioned their obligation to enter
into the Loan Agreement upon the execution and delivery of this Security
Agreement by Debtors.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each Debtor hereby agrees with Secured Party as follows:

     Section 1.     Definitions.  Unless otherwise defined herein, all
                    -----------
capitalized terms used herein shall have the respective meanings given to such
terms in the Loan Agreement.  All terms used herein and defined in the Uniform
Commercial Code as adopted in the State of New York from time to time shall have
the meaning given therein unless otherwise defined herein.  To the extent the
definition of any category or type of Collateral is expanded by any amendment,
modification or revision to the Uniform Commercial Code, such expanded
definition will apply automatically as of the date of such amendment,
modification or revision.

                                        2
<PAGE>
          "Aircraft" shall mean (i) an engine-driven fixed-wing aircraft heavier
           --------
than air, that is supported in flight by the dynamic reaction of the air against
its wings or (ii) a rotorcraft that, for its horizontal motion, depends
principally on its engine-driven rotors.  Aircraft shall include any item which
is incorporated in, attached to or specifically acquired by a Debtor to be used
only in connection with a specific Aircraft.

          "Collateral" shall mean and include:
           ----------

               (a)     all Receivables;

               (b)     all Equipment (including Unencumbered Aircraft, but
excluding all other Aircraft);

               (c)     all General Intangibles;

               (d)     all Inventory;

               (e)     all Investment Property;

               (f)     all of each Debtor's right, title and interest in and to
(i) its respective goods and other property including, but not limited to, all
merchandise returned or rejected by Customers, relating to or securing any of
the Receivables; (ii) all of each Debtor's rights as a consignor, a consignee,
an unpaid vendor, mechanic, artisan, or other lienor, including stoppage in
transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all
additional amounts due to any Debtor from any Customer relating to the
Receivables; (iv) other property, including warranty claims, relating to any
goods securing this Agreement; (v) all of each Debtor's contract rights, rights
of payment which have been earned under a contract right, instruments (including
promissory notes), documents, chattel paper (including electronic chattel
paper), warehouse receipts, deposit accounts, letters of credit, and money; (vi)
all commercial tort claims (whether now existing or hereafter arising); (vii) if
and when obtained by any Debtor, all real and personal property of third parties
in which such Debtor has been granted a lien or security interest as security
for the payment or enforcement of Receivables; and (viii) any other goods,
personal property or real property now owned or hereafter acquired in which any
Debtor has expressly granted a security interest or may in the future grant a
security interest to Agent hereunder, or in any amendment or supplement hereto
or thereto, or under any other agreement between Agent and any Debtor;

               (g)     all of each Debtor's ledger sheets, ledger cards, files,
correspondence, records, books of account, business papers, computers, computer
software (owned by any Debtor or in which it has an interest), computer
programs, tapes, disks and documents relating to (a), (b), (c), (d), (e) or (f)
of this Paragraph; and

               (h)     all proceeds and products of (a), (b), (c), (d), (e), (f)
and (g) in whatever form, including, but not limited to:  cash, deposit accounts
(whether or not comprised solely of proceeds), certificates of deposit,
insurance proceeds (including hazard, flood and credit insurance), negotiable
instruments and other instruments for the payment of money, chattel paper,
security agreements, documents, eminent domain proceeds, condemnation proceeds
and tort claim proceeds.

                                        3
<PAGE>
provided, however, the Collateral shall not include any rights or interests of
--------  -------
Debtors under any licenses, leases or other contracts if and to the extent that
(a) the terms of the agreement or agreements creating or evidencing such rights
or interests prohibit such grant and (b) the term prohibiting such grant is
effective as a matter of law and has not been waived or the consent of the
necessary party to the grant to Agent has not been obtained; provided, further,
                                                             --------  -------
(i) if any such prohibition is subsequently lifted, terminated or is otherwise
no longer effective as a matter of law or is waived or the consent of the
necessary party is obtained, a security interest therein in favor of Agent shall
automatically arise hereunder without any further action on the part of Debtors
or Agent and (ii) nothing contained herein shall be deemed to limit, impair or
otherwise affect Agent's security interest in any rights or interests of Debtors
in or to monies due or to become due under any such agreement.

          "Customer" shall mean and include the account debtor with respect to
           --------
any Receivable and/or the prospective purchaser of goods, services or both with
respect to any contract or contract right, and/or any party who enters into or
proposes to enter into any contract or other arrangement with any Debtor,
pursuant to which such Debtor is to deliver any personal property or perform any
services.

          "Equipment" shall mean and include as to each Debtor all of such
           ---------
Debtor's goods (other than Inventory) whether now owned or hereafter acquired
and wherever located including, without limitation, all equipment, machinery,
apparatus, motor vehicles, fittings, furniture, furnishings, fixtures, parts,
accessories, "appliances" as defined in Section 40102 (a)(11) of Title 49 of the
United States Code and "spare parts" as defined in Section 40102(a)(38) of Title
49 of the United States Code, which appliances and spare parts are being
maintained by or on behalf of AMC or LNI at their respective locations described
on Schedule 3(e), and all replacements and substitutions therefor or accessions
   -------------
thereto.

          "General Intangibles" shall mean and include as to each Debtor all of
           -------------------
such Debtor's general intangibles, whether now owned or hereafter acquired
including, without limitation, all payment intangibles, choses in action, causes
of action, corporate or other business records, inventions, designs, patents,
patent applications, equipment formulations, manufacturing procedures, quality
control procedures, trademarks, service marks, trade secrets, goodwill,
copyrights, design rights, software, computer information, source codes, codes,
records and dates, registrations, licenses, franchises, customer lists, tax
refunds, tax refund claims, computer programs, all claims under guaranties,
security interests or other security held by or granted to such Debtor to secure
payment of any of the Receivables by a Customer (other than to the extent
covered by Receivables) all rights of indemnification and all other intangible
property of every kind and nature (other than Receivables).

          "Inventory" shall mean and include as to each Debtor all of such
           ---------
Debtor's now owned or hereafter acquired goods, merchandise and other personal
property (other than Aircraft), wherever located, to be furnished under any
consignment arrangement, contract of service or held for sale or lease, all raw
materials, work in process, finished goods and materials and supplies of any
kind, nature or description which are or might be used or consumed in such
Debtor's business or used in selling or furnishing such goods, merchandise and
other personal property, and all documents of title or other documents
representing them.

                                        4
<PAGE>
          "Investment Property" shall mean and include as to each Debtor, all of
           -------------------
such Debtor's now owned or hereafter acquired securities (whether certificated
or uncertificated), securities entitlements, securities accounts, commodities
contracts and commodities accounts.

          "Receivables" shall mean and include, as to each Debtor, all of such
           -----------
Debtor's accounts, contract rights, instruments (including those evidencing
indebtedness owed to Debtors by their affiliates), documents, chattel paper
(including electronic chattel paper), general intangibles relating to accounts,
drafts and acceptances, credit card receivables, and all other forms of
obligations owing to such Debtor arising out of or in connection with the sale
or lease of Inventory or the rendition of services, all supporting obligations,
guarantees and other security therefor, whether secured or unsecured, now
existing or hereafter created, and whether or not specifically sold or assigned
to Agent hereunder.

          "Unencumbered Aircraft" shall mean all Aircraft described on Schedule
           ---------------------                                       --------
1 hereto.
-

     Section 2.     Grant of Security Interest.  To secure the prompt payment
                    --------------------------
and performance to Agent and each Lender of the Obligations, each Debtor hereby
assigns, pledges and grants to Agent for its benefit and for the ratable benefit
of each Lender a continuing security interest in and to all of its Collateral,
whether now owned or existing or hereafter acquired or arising and wheresoever
located.

     Section 3.     Representations and Warranties.  Debtor represents and
                    ------------------------------
warrants to Secured Party as follows:

          (a)     The chief place of business of each Debtor and the chief
executive office of each Debtor is set forth on Schedule 3(a) hereto.
                                                -------------

          (b)     The Collateral is maintained by or on behalf of the Debtors.

          (c)     Each Debtor owns good and indefeasible title to the Collateral
free and clear of any lien, security interest, lease, option, conditional sales
contract, charge or encumbrance except for the liens and security interests
created by this Security Agreement and Permitted Encumbrances, if any, and has
the sole and unrestricted right to mortgage, encumber and hypothecate the
Collateral in accordance with the terms set forth in this Security Agreement.

          (d)     This Security Agreement creates valid and enforceable security
interests in the Collateral in favor of Secured Party, securing the payment and
performance of the obligations, and all filings and other actions necessary or
desirable to perfect and protect such security interests have been duly taken.

          (e)     The Collateral consisting of Inventory will be at all times
located at one of the addresses set forth on Schedule 3(e) hereto; provided that
                                             -------------
the Collateral shall not be removed from such locations without the prior
written consent of Agent except with respect to (i) the sale of Inventory in the
ordinary course of business and (ii) the relocation of Inventory to a location
other than as set forth on Schedule 3(e), provided that (A) the aggregate amount
                           -------------
of such relocated Inventory shall not exceed at any one time One Hundred
Thousand Dollars ($100,000.00) and (B) within thirty (30) days of such
relocation, such Debtor shall have

                                        5
<PAGE>
delivered to Agent all filings and taken such other actions necessary or
desirable to perfect and protect its interests in such Inventory.

     Section 4.     Additional Representations and Warranties.  Each of AMC and
                    -----------------------------------------
LNI further represents and warrants to Secured Party as follows:

          (a)     The Equipment is maintained by or on behalf of it at its
locations described on Schedule 3(e) hereto.
                       -------------

          (b)     It is an "air carrier" certificated under 49 U.S.C. Section
44705.

     Section 5.     Released Locations.  Inasmuch as Debtors are no longer
                    ------------------
maintaining Equipment at the locations described in Schedule 3(e) attached to
the Original Security Agreement which are not also described in Schedule 3(e)
attached hereto (the "Released Locations"), Secured Party hereby releases from
the terms of the Original Security Agreement all of its interest in any
Equipment currently located at the Released Locations and hereby agrees that the
Released Locations are not covered by this Security Agreement.

     Section 6.     Remedies.  Upon the occurrence of an Event of Default,
                    --------
Secured Party may exercise any or all rights and remedies as provided for under
the Loan Agreement.

     Section 7.     Notices.  All notices, requests and other communications
                    -------
provided for hereunder shall be in writing and delivered in accordance with the
provisions of the Loan Agreement.

     Section 8.     Continuing Security Interest.  This Security Agreement shall
                    ----------------------------
create a continuing security interest in the Collateral subject to the terms and
conditions of the Loan Agreement.

     Section 9.     Governing Law.  This Agreement shall be governed by and
                    -------------
construed in accordance with the laws of the State of New York.

     Section 10.     Counterparts.  This Security Agreement may be executed in
                     ------------
multiple counterparts, each of which when so executed shall be deemed to be an
original, enforceable against the signatory thereto, and both of which taken
together shall constitute one and the same agreement.

     Section 11.     Incorporation of the Loan Agreement.  The Loan Agreement
                     -----------------------------------
and the terms and provisions thereof are hereby incorporated herein in their
entirety by this reference thereto.

                            [SIGNATURES ON NEXT PAGE]

                                        6
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Security Agreement to be executed as of the date and year first above
written.

                              AIR METHODS CORPORATION
                              MERCY AIR SERVICE, INC.
                              LIFENET, INC.

                              By: /s/ Aaron Todd
                                 ---------------
                              Name:  Aaron Todd
                              Title: Chief Executive Officer
                                     of each of the foregoing corporations

                              ROCKY MOUNTAIN HOLDINGS, L.L.C.

                              By:  Air Methods Corporation, its sole member

                              By:  /s/ Aaron Todd
                                 ------------------
                              Name:  Aaron Todd
                              Title: Chief Executive Officer

                              PNC BANK, NATIONAL ASSOCIATION, as Agent

                              By: /s/ Patrick McConnell
                                 ----------------------
                              Name:  Patrick McConnell
                              Title: Vice President

                                        7
<PAGE>
              SCHEDULE 1 TO AMENDED AND RESTATED SECURITY AGREEMENT
              -----------------------------------------------------

DESCRIPTION OF UNENCUMBERED AIRCRAFT

                                    [INSERT]

                                        8
<PAGE>
            SCHEDULE 3(a) TO AMENDED AND RESTATED SECURITY AGREEMENT
            --------------------------------------------------------

CHIEF PLACE OF BUSINESS/CHIEF EXECUTIVE OFFICE

                                    [INSERT]

                                        9
<PAGE>
            SCHEDULE 3(e) TO AMENDED AND RESTATED SECURITY AGREEMENT
            --------------------------------------------------------

ADDRESSES

                                    [INSERT]

                                       10EXHIBIT 10.1 

CONFIDENTIAL 

April 1, 2003

Altair
Nanotechnologies Inc.
204 Edison Way
Reno, NV 89502

	Attn:  	 William
P. Long
Chief Executive Officer 

Dear Mr. Long:

This letter sets out
the terms and conditions on which Altair Nanotechnologies Inc. (the
“Company”) has engaged RBC Dain Rauscher Inc. (“RBC”), a member
company of RBC Capital Markets, to provide certain investment banking and financial
advisory services in connection with a possible Transaction (as defined below) involving
RenaZorbTM. This letter will confirm our mutual understanding of the basis on
which RBC will act as the Company’s exclusive investment banker with respect to a
Transaction.

	1. 	Services
to be Provided by RBC 

In undertaking this
assignment, if requested by the Company and reasonably appropriate to the assignment, RBC
will provide during the Term (as defined below) the following services to the
Company in connection with a possible Transaction:

	a)  	 formulate
a strategy for consummating a Transaction, including the identification of  parties that
may have an interest in a Transaction with the Company, and develop  procedures and
timetables for implementing a Transaction;  

	b)  	 assist
the Company in the preparation of a marketing memorandum (or descriptive material)
describing the Company, as well as other materials requested by interested parties;  

	c)  	 approach
selected parties, and provide these parties with the appropriate material;  

	d)  	assist
the Company in evaluating proposals regarding a possible Transaction;  

	e)  	 formulate
negotiation strategies and assist in negotiations with interested parties; and  

	f)  	if
requested by the Company, provide a written opinion to the Board of Directors (or a
special committee of the Board of Directors) of the Company regarding the fairness, from
a  financial point of view, of the consideration to be received by the Company or its
holders  of common stock, as the case may be, in connection with a Transaction.  

1 

	2. 	Certain
Agreements of the Company 

The Company agrees
that:

	a)  	 it
shall (i) furnish RBC with the names of all parties with which the Company has had
discussions or contacts concerning a possible Transaction, and (ii) notify RBC promptly
if  any person contacts or approaches the Company or any of its directors, officers or
employees in connection with a possible Transaction or an expression of interest therein;  

	b)  	 it
shall (i) make available to RBC all information concerning the business, assets,
liabilities, operations, financial condition and prospects of the Company and its
subsidiaries (collectively the “Information”) which RBC reasonably
requests in connection with the performance of its services hereunder; (ii) notify RBC of
any material change, or development that may lead to a material change in the
Information;  and (iii) provide RBC with timely access to the directors, officers,
employees,  independent auditors, consultants and financial, legal and other professional
advisors of  the Company as RBC may reasonably request in performing its services
hereunder. Where  appropriate to a Transaction, the term “Information” shall
include  comparable information concerning any other party to a Transaction and the
Company shall  provide access to such other party comparable to that contemplated by
clause (iii) above;  and  

	c)  	 RBC
will be relying, without assuming responsibility for independent verification, on the
accuracy and completeness of all Information that is and will be furnished to RBC by the
Company, its subsidiaries or any other party or potential party to any Transaction.
Accordingly, the Company further acknowledges and agrees that RBC is entitled to assume
and rely upon the accuracy and completeness of all such Information and is not required
to  conduct a physical inspection of any properties or assets, or prepare or obtain any
independent evaluation or appraisal of any assets or liabilities. Finally, the Company
acknowledges and agrees that with respect to any financial forecasts and projections made
available to RBC, RBC is entitled to assume that such forecasts and projections have been
reasonably prepared and reflect the best currently available estimates and judgments of
the Company management (or other party to the Transaction, as the case may be).  

	3. 	Fairness
Opinion 

In the event that the
Company requests that RBC provide its Board of Directors (or a special committee thereof)
with a fairness opinion, the Company acknowledges and agrees that the nature and scope of
any investigation that RBC may conduct in the course of rendering its opinion, as well as
the scope, form and substance of its opinion shall be such as RBC considers appropriate.
The Company acknowledges and agrees that all advice and opinions (written and oral)
rendered by RBC are intended solely for the use and benefit of the Board of Directors (or
special committee thereof) of the Company and may not be used or relied upon by any other
person, nor may such advice or opinions be reproduced, summarized, excerpted from or
referred to in any public document or given to any other person without the prior written
consent of RBC. If required by applicable law, such opinion may be included in any
disclosure document filed by the Company with the SEC with respect to the proposed
Transaction; provided however, that such opinion must be reproduced in full and
that any description of or reference to RBC be in a form reasonably acceptable to RBC and
its counsel. RBC shall have no responsibility for the form or content of any such
disclosure document, other than the opinion itself.

	4. 	Compensation 

The Company hereby
agrees to pay RBC, as compensation for its services hereunder, the following fees in
accordance with the following terms:

2 

	a)  	 Fairness
Opinion Fee – In the event that a fairness opinion is provided to the  Board of
Directors of the Company, the Company agrees to pay RBC a fairness opinion fee  (the
“Fairness Opinion Fee”) in the amount of $300,000. The Fairness  Opinion
Fee will be payable in cash upon the delivery of such opinion, without regard to  whether
such opinion is accepted or a Transaction is consummated and, to the extent paid,  will
be credited against the Transaction Fee.  

	b)  	 Transaction
Fee – In the event the Company consummates at any time a  Transaction pursuant
to a definitive agreement or letter of intent or other evidence of  commitment entered
into during the Term, or during the 12 months following the Term, the  Company agrees to
pay RBC a transaction fee (the “Transaction Fee”) equal  to the higher
of either: (i) 5.0% (five percent) of the Aggregate Transaction Value (as defined
below); or (ii) $750,000.  

	 	The
entire Transaction Fee shall be paid to RBC in cash at the closing of the Transaction
provided that compensation attributable to that part of the consideration which is
contingent upon the occurance of any future event shall be paid by the Company when the
payment of such consideration is received by the Company.  

	5. 	Expenses 

In addition to any
fees that may be payable hereunder and regardless of whether any proposed Transaction is
consummated, the Company hereby agrees from time to time, upon request, to reimburse RBC
for all reasonable travel, legal and other out-of-pocket expenses incurred in performing
the services described herein (including reasonable fees and disbursements of RBC’s
legal counsel), to the extent such expenses are pre-approved by the Company in writing..

In the event RBC
personnel must attend or participate in judicial or other proceedings to which it is not a
party, the Company agrees to pay RBC an additional per diem payment, per person, at its
customary rates and to reimburse RBC for all travel, legal and other out-of-pocket
expenses incurred by RBC in respect of its preparation for and participation in any such
proceedings.

	6. 	Termination 

This letter may be
terminated upon 30 days written notice by either the Company or RBC; provided that
such termination shall not affect the rights and obligations set forth on Appendix A, the
right of RBC to receive any fees and expenses payable pursuant to this letter, and the
provisions of Section 11. It is expressly understood that neither RBC nor the Company
shall have any continuing obligation or liability to one another under this letter upon
termination hereof, except in respect of the matters specifically referenced in this
Section.

	7. 	Publicity 

The Company
acknowledges and agrees that RBC may, subsequent to the announcement of a Transaction,
make public its involvement with the Company in the Transaction, including the right of
RBC at its own expense to place advertisements describing its services to the Company in
financial, news or business publications. Furthermore, if requested by RBC, the Company
shall include a mutually acceptable reference to RBC in any press release or other public
announcement made by the Company regarding the services rendered by RBC described in this
letter.

	8. 	Indemnification 

Appendix A is hereby
incorporated into this letter by reference and made a part hereof.

3 

	9. 	Other
Matters Relating to Engagement 

The Company
acknowledges that it has retained RBC solely to provide the services set forth in this
letter. In rendering such services, RBC will act as an independent contractor, and RBC
owes its duties arising out of this engagement solely to the Company and to no other
person. The Company acknowledges that nothing in this letter is intended to create duties
to the Company beyond those expressly provided for in this letter, and RBC and the Company
specifically disclaim the creation of any fiduciary relationship between, or the
imposition of any fiduciary duties on, either party.

The Company
acknowledges and agrees that all advice and opinions (written and oral) rendered by RBC
are intended solely for the use and benefit of the Board of Directors (or special
committee thereof) of the Company and may not be used or relied upon by any other person,
nor may such advice or opinions be reproduced, summarized, excerpted from or referred to
in any public document or given to any other person without the prior written consent of
RBC.

The Company
acknowledges that RBC is a securities firm engaged in securities trading and brokerage
activities and providing investment banking and financial advisory services. In the
ordinary course of business, RBC and its affiliates may at any time hold long or short
positions, and may trade or otherwise effect transactions, for their own account or the
accounts of customers, in the debt or equity securities of the Company, its affiliates or
other entities that may be involved in the transactions contemplated by this letter.

In addition, RBC and
its affiliates may from time to time perform various investment banking, commercial
banking and financial advisory services for other clients and customers who may have
conflicting interests with respect to the Company or the Transaction. RBC and its
affiliates will not use confidential information obtained from the Company pursuant to
this engagement in connection with the performance by RBC and it affiliates of services
for other companies, and RBC and its affiliates will not furnish any such information to
other companies. The Company also acknowledges that RBC and its affiliates have no
obligation to use in connection with this engagement or to furnish to the Company,
confidential information obtained from other companies.

Furthermore, the
Company acknowledges RBC may have fiduciary or other relationships whereby RBC or its
affiliates may exercise voting power over securities of various persons, which securities
may from time to time include securities of the Company or of potential purchasers or
others with interests in respect of the Transaction. The Company acknowledges that RBC or
such affiliates may exercise such powers and otherwise perform its functions in connection
with such fiduciary or other relationships without regard to RBC’s relationship to
the Company hereunder.

The Company
acknowledges that RBC is not an advisor as to legal, tax, accounting or regulatory matters
in any jurisdiction. The Company should consult with its own advisors concerning such
matters and is responsible for making its own independent investigation and appraisal of
the Transactions contemplated by this letter, and RBC has no responsibility or liability
to you with respect to such matters.

4 

	10. 	Definitions 

“Aggregate
Transaction Value” shall mean the total consideration paid and to be paid (which
shall be deemed to include all amounts paid or to be paid into escrow) directly or
indirectly, regardless of how allocated or the form of consideration, to or by the Company
or its subsidiaries or their holders of capital stock or holders of rights to acquire
capital stock in connection with a Transaction, including, without limitation: (i) cash,
notes, and debt (ii) publicly traded equity securities (valued based on the average
closing market price of such securities for the five trading days preceding public
announcement of the definitive agreement to enter into a Transactions and, if applicable,
the exchange ratio as calculated at the time of such announcement), the fair market value
at the time of announcement of other equity securities (including warrants and convertible
securities, as well as options or stock appreciation rights, whether or not vested), and
other property; (iii) the total amount of indebtedness for borrowed money or similar
non-trade liabilities or obligations (including pension liabilities, guarantees,
capitalized leases, and the like) of the Company repaid, retired, extinguished, or assumed
in connection with, or which otherwise remain outstanding as of the closing of a
Transaction; (iv) payments to be made in installments; (v) deferred and/or contingent
payments (whether or not related to future earnings or operations); (vi) any assets of the
Company which are paid in the form of dividends, capital distributions, partial or total
liquidating distributions or otherwise to its holders of capital stock or holders of
rights to acquire capital stock other than in the ordinary course of business; and (vii)
the value of any capital stock of the Company or rights to acquire capital stock of the
Company (whether or not vested) which remain outstanding following any Transaction. The
value of any non-cash consideration, other than securities of a class which is publicly
traded, shall be the fair market value thereof as of the date of closing of a Transaction.

“Term”
shall mean a period of one year from the date of this letter, unless otherwise terminated
by one or both of the parties in accordance with the provisions of Section 6.

“Transaction”
shall mean any transaction, or series or combination of related transactions, involving
the sale, license or other transfer by the Company of all of part of its intellectual
property and other rights related to its active pharmaceutical ingredient for the
treatment of hyperphosphatemia (elevated serum phosphate levels) in patients undergoing
kidney dialysis, given the name RenaZorbTM (“Renazorb”) to any party for
consideration, including, without limitation, a sale or exchange of assets, a merger, plan
of exchange or consolidation, a lease or license of assets with or without a purchase
option, or the formation of a joint venture to the extent the principal asset contributed
or sold by the Company is its interest in Renazorb.

	11. 	Miscellaneous 

This letter, including
Appendix A, incorporates the entire agreement of the parties with respect to the subject
matter of this letter, and may not be amended or modified except in writing. The
invalidity or unenforceability of any provision of this letter shall not affect the
validity or enforceability of any other provision of this letter, which shall remain in
full force and effect. This agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to the conflicts of laws provisions
thereof. Each of the Company and RBC (each on its own behalf and, to the extent permitted
by applicable law, on behalf of its shareholders) hereby irrevocably waive any right they
may have to a trial by jury in respect of any claim, counter-claim or action based on or
arising out of this letter, RBC’s performance under this letter or the transactions
contemplated hereby. This letter is solely for the benefit of the Company and RBC and no
other person (except for indemnified persons to the extent set forth in Appendix A) shall
acquire or have any rights under or by virtue of this letter. This letter may not be
assigned by either party hereto without the other party’s prior written consent;
provided, however, that RBC or the Company may assign in whole its rights in
connection with a sale or other disposition of all or substantially all of its assets,
merger or similar transaction. This letter may be executed in counterparts, each of which
will be deemed an original, but all of which taken together will constitute one and the
same instrument.

5 

Please confirm that
the foregoing is in accordance with our understandings and agreements by signing and
returning to RBC the duplicate of this letter enclosed herewith.

	 	Very
truly yours, 

	 	RBC
Dain Rauscher Inc. 

	 	/s/
Allen S. Morton   

	 	Allen
S. Morton
Managing Director 

Accepted and Agreed
to:

Altair
Nanotechnologies Inc.

	/s/
William P. Long   

	William
P. Long
Chief Executive Officer 

6 

Appendix A to
Engagement Letter Between 

RBC Dain Rauscher
Inc. and Altair Nanotechnologies Inc. 

Dated April 1, 2003 

The Company agrees to
indemnify and hold harmless RBC, its partners, employees, directors, officers,
consultants, agents, affiliates and persons deemed to be in control of RBC within the
meaning of the Securities Act of 1933 (collectively, the “Indemnified Parties”
and individually an “Indemnified Party”), from and against any claims, losses,
expenses, damages and liabilities, joint or several, as they may be incurred, related to
or arising in any manner out of any transaction, proposal or any other matter contemplated
by the engagement of RBC under the Engagement Letter (the “Matters”). The
Company also agrees that neither RBC nor any other Indemnified Party shall have any
liability to the Company or its affiliates, partners, directors, officers, consultants,
agents, employees, controlling persons, creditors or securityholders for any losses,
claims, damages, liabilities or expenses related to or arising out of any Matters. The
Company will promptly reimburse any Indemnified Party for all expenses as reasonably
incurred in connection with the investigation of, preparation for or defense of any
pending or threatened claim related to or arising in any manner out of any Matter, or any
action or proceeding arising therefrom.

The Company may assume
the defense of any litigation or proceeding in respect of which indemnity may be sought
hereunder, including the employment of counsel and experts reasonably satisfactory to RBC
and the payment of the fees and expenses of such counsel and experts, in which event,
except as provided below, the Company shall not be liable for the fees and expenses of any
other counsel or expert retained by any Indemnified Party in connection with such
litigation or proceeding. In any such litigation or proceeding the defense of which the
Company shall have so assumed, any Indemnified Party shall have the right to participate
in such litigation or proceeding and to retain its own counsel and experts, but the fees
and expenses of such counsel and experts shall be at the expense of such Indemnified Party
unless (i) the Company and such Indemnified Party shall have mutually agreed in writing to
the retention of such counsel or experts, (ii) the Company shall have failed in a timely
manner to assume the defense and employ counsel or experts reasonably satisfactory to RBC
in such litigation or proceeding, or (iii) the named parties to any such litigation or
proceeding (including any impleaded parties) include the Company and such Indemnified
Party and representation of the Company and any Indemnified Party by the same counsel or
experts would, in the reasonable opinion of RBC, be inappropriate due to actual or
potential differing interests between the Company and any such Indemnified Party.

The Company shall not,
without the prior written consent of RBC, settle any litigation relating to the Engagement
Letter or any Matter unless such settlement includes an express, complete and
unconditional release of RBC and its affiliates (and their respective control persons,
partners, directors, officers, employees, consultants and agents) with respect to all
claims asserted in such litigation or relating to the Engagement Letter or any Matter;
such release to be set forth in an instrument signed by all parties to such settlement.
Without the prior written consent of the Company, which shall not be unreasonably
withheld, delayed or conditioned, no Indemnified Party shall settle or compromise any
claim for which indemnification or contribution may be sought hereunder. Notwithstanding
the foregoing sentence, if at any time an Indemnified Party requests that the Company
reimburse the Indemnified Person for fees and expenses as provided in this agreement, the
Company agrees that it shall be liable for any settlement of any proceeding effected
without its prior written consent if (i) such settlement is entered into more than 30 days
after receipt by it of the request for reimbursement, and (ii) it shall not have
reimbursed the Indemnified Party in accordance with such request prior to the date of such
settlement.

Notwithstanding any
provision herein to the contrary, the Company shall not be liable hereunder for
indemnification to an Indemnified Party, and the Indemnified Party shall not be
exculpated, in respect of any claims, damages, losses, liabilities or expenses that are
finally judicially determined to have resulted primarily and directly from the gross
negligence or willful misconduct or violation of governing law by any Indemnified Party.
In no event, regardless of the legal theory advanced, shall any Indemnified Party be
liable for any consequential, indirect, incidental or special damages of any nature.

7 

The Company agrees
that the exculpation, indemnification and reimbursement commitments set forth herein shall
apply whether or not such Indemnified Party is a formal party to any such claim, action or
proceeding.

The Company agrees
that if any exculpation, indemnification or reimbursement sought pursuant to this letter
were for any reason not to be available to any Indemnified Party or insufficient to hold
any Indemnified Party harmless as and to the extent contemplated hereby, then the Company
shall contribute to the amount paid or payable by the Indemnified Party as a result of the
claims, damages, losses, expenses and liabilities in such proportion as is appropriate (i)
to reflect the relative benefits to the Company and its securityholders on the one hand,
and RBC on the other hand, in connection with the transaction to which such exculpation,
indemnification or reimbursement relates or (ii) if the allocation on that basis is not
permitted by applicable law, to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of each such Indemnified Party, respectively,
and the Company as well as any other relevant equitable considerations. The Company and
RBC agree that it would not be just and equitable if the contribution provided for herein
were determined by pro rata allocation or any other method which does not take into
account the equitable considerations referred to above. It is hereby agreed that the
relative benefits to the Company, on the one hand, and RBC, on the other hand, with
respect to this engagement shall be deemed to be in the same proportion as (i) the
Aggregate Transaction Value of the Transaction (whether or not consummated) for which RBC
is engaged to render financial advisory services bears to (ii) the fee paid to RBC in
connection with such engagement. In no event shall RBC contribute in excess of the fees
actually received by RBC pursuant to the terms of the Engagement Letter.

The exculpation,
indemnity, reimbursement and contribution obligations of the Company shall survive the
termination of the Engagement Letter, shall be in addition to any liability which 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 Company or an Indemnified
Party.

Capitalized terms
used, but not defined in this Appendix A, have the meanings assigned to such terms in the
Engagement Letter.

8 

CONFIDENTIAL

April 29, 2004

204 Edison Way
Reno,
NV  89502

	Attn:  	 Edward
Dickinson
Chief Financial Officer 

Pursuant to the
engagement letter dated April 1, 2003 between Altair Nanotechnologies Inc. and RBC Dain
Rauscher Inc., we hereby agree to extend the  term of the engagement for an additional
year by amending the definition of “Term” to be as follows:

“Term” shall
mean a period of two years from the date of this letter, unless otherwise terminated by
one or both of the parties in accordance with the provisions of Section 6.

	RBC Capital Markets Corporation
(Successor to RBC Dain Rauscher Inc.)	Altair Nanotechnologies, Inc.

	/s/ Allen S. Morton	
	
	

	Allen S. Morton
Managing Director	Edward Dickinson
Chief Financial Officer

9 

SETTLEMENT
AGREEMENT AND RELEASE OF CLAIMS 

This Settlement
Agreement and Release of Claims (the “Agreement”) is entered into this March 31,
2005 by RBC Capital Markets Corporation, a New York corporation and successor entity to
the capital markets business of RBC Dain Rauscher Inc. (“RBC”) and Altai
Nanotechnologies Inc., a company incorporated in Canada (“Altair”).

WHEREAS, under
the terms of an engagement letter for financial advisory services between RBC Dain
Rauscher Inc. and Altair Nanotechnologies Inc., dated April 1, 2003, as amended by that
certain letter agreement dated April 29, 2004 (together, the “Engagement
Letter”), RBC agreed to provide and did provide financial advisory services to Altair
in connection with a potential sale or license of all or part of its intellectual property
and other rights related to its active pharmaceutical ingredient for the treatment of
hyperphosphatemia (“RenaZorb”) (the “Transaction”);

WHEREAS, RBC
and Altair had not, prior to the execution of this Agreement, reached full agreement as to
the Fees accrued and payable to RBC through the date hereof;

NOW THEREFORE,
for good and valuable consideration, the receipt of which is hereby acknowledged, the
parties hereto agree as follows:

	 	1.  	 Release
Payment – As consideration for the release by RBC of Altair set forth  in
Section 2 hereof from all claims RBC may have against Altair relating to the Engagement
Letter, Altair shall pay to RBC $500,000 in cash simultaneously with the execution of
this  agreement by all parties hereto.  

	 	2.  	 Mutual
Release from Claims – Each of RBC and Altair hereby releases, holds  harmless
from any liability, and forever discharges the other party hereto, and the other  party’s
directors, officers, employees, shareholders, affiliates and their respective  successors
and assigns from any and all claims, demands, actions, causes of action, of any  kind or
nature whatsoever, at law or in equity, that may arise out of the Engagement  Letter,
including, but not limited to, any claims relating to or arising out of the  provisions
of Sections 4 and 5 of the Engagement Letter.  

	 	3.  	 Survival
of Indemnification – Notwithstanding any provision in Section 2  hereof or
otherwise set forth herein to the contrary, the Indemnification set forth in  Appendix A
to the Engagement Letter shall remain operative and in full force and effect.  

	 	4.  	 No
Admission of Wrongdoing – Nothing in this Agreement shall constitute an
admission of any wrongdoing by RBC or Altair with respect to the Engagement Letter and
the  obligations of RBC and Altair thereunder, and should not be construed as such.  

	 	5.  	 Severability
– The invalidity or unenforceability of any provision of this  Agreement shall
not affect the validity or enforceability of any other provision of this  Agreement,
which shall remain in full force and effect.  

	 	6.  	 Entire
Agreement – This Agreement contains the entire agreement of the parties  hereto
with respect to the subject matter contained herein and supercedes all prior  agreements
and understandings between the parties with respect to such subject matter.  

	 	7.  	 Governing
Law – This Agreement shall be governed by and construed in  accordance with the
laws of the State of New York, without regard to the conflicts of laws  provisions
thereof. Each of RBC and Altair hereby irrevocably waive any right they may  have to a
trial by jury in respect of any claim, counter-claim or action based on or  arising out
of this Agreement.  

10 

	 	8.  	 Counterparts
– This Agreement may be executed in counterparts, each of which  will be deemed
an original, but all of which taken together will constitute one and the  same
instrument.  

Please confirm that
the foregoing is in accordance with our understandings and agreements by signing and
returning to RBC the duplicate of this Agreement enclosed herewith.

Very truly yours,

RBC Capital Markets
Corporation 

	By: 	/s/ Ian
H. Fay   

	 	Ian
H. Fay
Director, Mergers & Acquisitions 

Accepted and Agreed
to:

Altair
Nanotechnologies, Inc.

	By: 	/s/ Alan J. Gotcher 

	 	
Alan J. Gotcher
Chief Executive Officer

11

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