Document:

EXHIBIT 10.1

                          SECURITIES PURCHASE AGREEMENT

         SECURITIES  PURCHASE AGREEMENT (the "Agreement"),  dated as of February
15, 2005, by and among Altair Nanotechnologies,  Inc., a Canadian corporation,
with headquarters located at 204 Edison Way, Reno, Nevada 89502 (the "Company"),
and the investor listed on the signature page attached hereto  (individually,  a
"Buyer" and collectively with any other investors, the "Buyers").

         WHEREAS:

         A. The Company and the Buyer desire to enter into this  transaction  to
purchase the securities set forth herein pursuant to a currently effective shelf
registration  statement on Form S-3, which has at least 5,000,000 common shares,
without  par  value  ("Common  Stock")  unallocated  and  registered  thereunder
(Registration   Number   333-111416)  (the  "Registration   Statement"),   which
Registration  Statement  has been  declared  effective  in  accordance  with the
Securities  Act of 1933,  as amended  (the  "1933  Act"),  by the United  States
Securities and Exchange Commission (the "SEC").

         B. The Buyer wishes to purchase,  and the Company wishes to sell,  upon
the terms and conditions  stated in this  Agreement,  that  aggregate  number of
shares of Common Stock,  set forth below such Buyer's name on the signature page
hereto (which aggregate amount for all Buyers together shall be 5,000,000 shares
of Common Stock and shall  collectively  be referred to herein as the "Purchased
Shares").

         C. The  Purchased  Shares  are  sometimes  referred  to  herein  as the
"Securities".

         NOW, THEREFORE, the Company and the Buyer hereby agree as follows:

         1. PURCHASE AND SALE OF PURCHASED SHARES.

                  (a) Purchase of Purchased Shares.

                  Subject to the  satisfaction (or waiver) of the conditions set
forth in Sections 5 and 6 below,  the Company shall issue and sell to the Buyer,
and the  Buyer  severally,  but not  jointly  with any  other  Buyer,  agrees to
purchase from the Company on the Closing Date (as defined below),  the number of
Purchased  Shares as is set forth below such Buyer's name on the signature  page
hereto  (the  "Closing").  The Closing  shall  occur on the Closing  Date at the
offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022.

                  (b)  Purchase  Price.  The purchase  price for each  Purchased
Share to be  purchased  by each  Buyer at the  Closing  shall  be  $4.05  (the
"Purchase Price").

                  (c)  Closing  Date.  The  date and  time of the  Closing  (the
"Closing  Date") shall be 10:00 a.m.,  New York City Time, on February 15, 2005,
after  notification of satisfaction (or waiver) of the conditions to the Closing
set forth in  Sections  6 and 7 below (or such  later date and time of day as is
mutually agreed to by the Company and each Buyer).

                  (d) Form of Payment.  On the Closing Date, (i) the Buyer shall
pay its Purchase Price to the Company for the Purchased  Shares to be issued and
sold to such Buyer at the Closing,  by wire  transfer of  immediately  available
funds in accordance with the Company's written wire  instructions,  and (ii) the
Company  shall,  or shall  cause the  Company's  transfer  agent (the  "Transfer
Agent") to  deliver to the Buyer at the  address  for notice  designated  on the
signature page hereof certificates for the Purchased Shares.

<PAGE>

         2.  REPRESENTATIONS  AND WARRANTIES OF THE BUYER.  The Buyer represents
and warrants with respect to only itself that:  (i) This Agreement has been duly
and  validly  authorized,  executed  and  delivered  on behalf of such Buyer and
constitutes the legal,  valid and binding  obligation of such Buyer  enforceable
against such Buyer in accordance with its terms,  except as such  enforceability
may be limited  by general  principles  of equity or to  applicable  bankruptcy,
insolvency,  reorganization,  moratorium,  liquidation  and other  similar  laws
relating to, or affecting  generally,  the enforcement of applicable  creditors'
rights and remedies;  and (ii) the execution,  delivery and  performance by such
Buyer of this Agreement and the  consummation by such Buyer of the  transactions
contemplated  hereby  will not (A) result in a violation  of the  organizational
documents of such Buyer or (B)  conflict  with,  or  constitute a default (or an
event which with notice or lapse of time or both would become a default)  under,
or  give to  others  any  rights  of  termination,  amendment,  acceleration  or
cancellation of, any agreement, indenture or instrument to which such Buyer is a
party,  or (C)  result  in a  violation  of any law,  rule,  regulation,  order,
judgment  or  decree  (including  federal  and  state  or  Canadian   provincial
securities laws) applicable to such Buyer, except in the case of clauses (B) and
(C) above, for such conflicts,  defaults,  rights or violations which would not,
individually  or in the  aggregate,  reasonably  be  expected to have a material
adverse  effect  on the  ability  of  such  Buyer  to  perform  its  obligations
hereunder.  The Buyer acknowledges that it is not relying on any representations
or warranties  made by the Agent (as defined below) in determining to enter into
this transaction.  The Buyer (i) if an individual, is a resident of the State of
New York if a  resident  of the United  States or resides  outside of the United
States and Canada,  (ii) if other than an  individual,  maintains  its principal
office and place of business in the State of New York if in the United States or
outside of the United  States and  Canada,  and (iii) has made all  offers,  and
received any offers, information, Transaction Documents and Disclosure Materials
in the State of New York if in the United States or outside of the United States
and Canada.

         3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company hereby makes the following  representations  and warranties
to the Buyer:

                  (a)    Organization    and    Qualification;    Authorization;
Enforcement.   Each  of  the   Company  and  each  of  its   subsidiaries   (the
"Subsidiaries") is an entity duly incorporated or otherwise  organized,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
incorporation  or  organization  (as  applicable),  with the requisite power and
authority to own and use its  properties and assets and to carry on its business
as currently  conducted.  The Company owns,  directly or indirectly,  all of the
capital stock of each  Subsidiary free and clear of any lien,  charge,  security
interest,   encumbrance,   right  of   first   refusal   or  other   restriction
(collectively,  "Liens"),  and all the issued and outstanding  shares of capital
stock of each  Subsidiary are validly issued and are fully paid,  non-assessable
and  free  of  preemptive  and  similar  rights.  Neither  the  Company  nor any
Subsidiary  is  in  violation  of  any  of  the  provisions  of  its  respective
certificate  or articles of  incorporation,  bylaws or other  organizational  or
charter documents. Each of the Company and the Subsidiaries is duly qualified to
do business and is in good standing as a foreign  corporation or other entity in
each  jurisdiction  in which the nature of the  business  conducted  or property
owned by it makes such qualification  necessary,  except where the failure to be
so qualified or in good standing, as the case may be, could not, individually or
in the aggregate: (i) adversely affect the legality,  validity or enforceability
of this Agreement and any other  documents or agreements  executed in connection
with the transactions contemplated hereunder (the "Transaction Documents"), (ii)
have or result in a

                                       2
<PAGE>

material  adverse  effect  on the  results  of  operations,  assets,  prospects,
business  or  condition   (financial  or  otherwise)  of  the  Company  and  the
Subsidiaries,  taken as a whole, or (iii) adversely impair the Company's ability
to perform fully on a timely basis its obligations  under any of the Transaction
Documents (any of (i), (ii) or (iii), a "Material Adverse Effect").  The Company
has the requisite  corporate power and authority to enter into and to consummate
the transactions contemplated by each of the Transaction Documents and otherwise
to carry  out its  obligations  hereunder  and  thereunder.  The  execution  and
delivery  of  each  of  the  Transaction   Documents  by  the  Company  and  the
consummation by it of the transactions contemplated hereby and thereby have been
duly  authorized  by all  necessary  action  on the part of the  Company  and no
further consent or action is required by the Company,  its Board of Directors or
its stockholders.  Each of the Transaction  Documents has been (or upon delivery
will be) duly  executed by the Company and is, or when  delivered in  accordance
with the terms hereof, will constitute,  the valid and binding obligation of the
Company  enforceable against the Company in accordance with its terms, except as
such  enforceability  may be  limited  by  general  principles  of  equity or to
applicable bankruptcy, insolvency,  reorganization,  moratorium, liquidation and
other  similar laws  relating to, or affecting  generally,  the  enforcement  of
applicable creditors' rights and remedies.

                  (b) No Conflicts.  The execution,  delivery and performance of
the Transaction  Documents by the Company and the consummation by the Company of
the  transactions  contemplated  hereby  and  thereby  do not and will not:  (i)
conflict  with or violate any  provision of the  Company's  or any  Subsidiary's
certificate  or articles of  incorporation,  bylaws or other  organizational  or
charter  documents,  or (ii) subject to obtaining  the  Required  Approvals  (as
defined  below),  conflict  with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination,  amendment,  acceleration  or  cancellation  (with or
without notice, lapse of time or both) of, any agreement,  credit facility, debt
or other  instrument  (evidencing a Company or Subsidiary  debt or otherwise) or
other  understanding  to which the  Company or any  Subsidiary  is a party or by
which  any  property  or  asset of the  Company  or any  Subsidiary  is bound or
affected,  or (iii) result in a violation of any law, rule,  regulation,  order,
judgment,  injunction,  decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and
state and Canadian securities laws and regulations), or by which any property or
asset of the Company or a Subsidiary is bound or affected; except in the case of
each of  clauses  (ii) and  (iii),  such as could  not,  individually  or in the
aggregate, have or result in a Material Adverse Effect.

                  (c) Filings, Consents and Approvals;  Integration; Listing and
Maintenance  Requirements;  Application  of  Takeover  Protections.  Neither the
Company  nor  any  Subsidiary  is  required  to  obtain  any  consent,   waiver,
authorization  or  order  of,  give  any  notice  to,  or  make  any  filing  or
registration   with,  any  court  or  other  federal,   state,  local  or  other
governmental  authority  or other  Person  in  connection  with  the  execution,
delivery and performance by the Company of the Transaction Documents, other than
(i) the filings required under Section 4(f), (ii) the filing with the SEC of the
prospectus  supplement  required by the Registration  Statement pursuant to Rule
424(b)  under the 1933 Act,  (iii) the  application(s)  to The  Nasdaq  SmallCap
Market (the  "Principal  Market")  for the listing of the  Purchased  Shares for
trading  thereon in the time and manner  required  thereby,  and (iv) applicable
Blue Sky filings  (collectively,  the "Required  Approvals").  "Person" means an
individual or corporation,  partnership,  trust,  incorporated or unincorporated
association,  joint venture,  limited  liability  company,  joint stock company,
government  (or an agency or  subdivision  thereof) or other entity of any kind.
Neither the Company, nor any of its Affiliates,  nor any Person acting on its or
their  behalf  has,  directly  or  indirectly,  made any  offers or sales of any
security or solicited any offers to buy any security,  under  circumstances that

                                       3
<PAGE>

would  cause  this  offering  of the  Securities  to be  integrated  with  prior
offerings by the Company for  purposes of any  applicable  stockholder  approval
provisions,  including,  without limitation,  under the rules and regulations of
any exchange or automated quotation system on which any of the securities of the
Company  are  listed  or  designated,  nor  will  the  Company  or  any  of  its
Subsidiaries  take any  action or steps  that would  cause the  offering  of the
Securities to be integrated with other offerings. The Company has not, in the 12
months  preceding the date hereof,  received notice from the Principal Market on
which the Common  Stock is or has been  listed or quoted to the effect  that the
Company is not in compliance with the listing or maintenance requirements of the
Principal Market.  The Company is, and has no reason to believe that it will not
in the  foreseeable  future  continue to be, in compliance with all such listing
and maintenance requirements.  The issuance and sale of the Securities hereunder
does not  contravene the rules and  regulations  of the Principal  Market and no
shareholder  approval  is required  for the  Company to fulfill its  obligations
under the  Transaction  Documents.  The Common Stock is currently  listed on the
Principal  Market.  The  Company  and its  Board of  Directors  have  taken  all
necessary  action,  if any, in order to render  inapplicable  any control  share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company's
Certificate of Incorporation  (or similar charter  documents) or the laws of its
state of  incorporation  that is or could become  applicable  to the Buyers as a
result of the Buyers and the Company  fulfilling their obligations or exercising
their rights under the Transaction Documents,  including, without limitation, as
a result of the Company's  issuance of the Securities and the Buyers'  ownership
of the Securities.

                  (d)  Issuance  of the  Securities.  The  Securities  are  duly
authorized  and,  when  issued and paid for in  accordance  with the  applicable
Transaction  Documents,  will  be  duly  and  validly  issued,  fully  paid  and
nonassessable,  free and clear of all Liens (other than any Liens arising solely
from  an act or  omission  of a  Buyer).  The  issuance  by the  Company  of the
Securities has been registered  under the 1933 Act and all of the Securities are
freely  transferable and tradable by the Buyers without  restriction (other than
any  restrictions  arising  solely  from an act or  omission  of a Buyer) in the
United  States.   The  Purchased   Shares  are  being  issued  pursuant  to  the
Registration  Statement  and the  issuance  of the  Purchased  Shares  has  been
registered  by the Company  under the 1933 Act.  The  Registration  Statement is
effective and available for the issuance of the  Securities  thereunder  and the
Company has not  received any notice that the SEC has issued or intends to issue
a  stop-order  with  respect  to the  Registration  Statement  or  that  the SEC
otherwise  has  suspended or withdrawn  the  effectiveness  of the  Registration
Statement,  either  temporarily or permanently,  or intends or has threatened in
writing  to do so. The "Plan of  Distribution"  section  under the  Registration
Statement  permits  the  issuance  and sale of the  Securities  hereunder.  Upon
receipt of the  Securities,  the Buyers will have good and  marketable  title to
such  Securities  and the  Purchased  Shares  will  be  freely  tradable  on the
Principal  Market.  The Purchased Shares  constitute less than 10% of the issued
and outstanding shares of Common Stock of the Company.

                  (e)  Capitalization.  The  number  of  shares  and type of all
authorized,  issued and outstanding capital stock,  options and other securities
of the Company  (whether or not presently  convertible  into, or  exercisable or
exchangeable  for,  shares of capital  stock of the Company) is set forth in the
SEC Reports (as defined  below),  in each case as of the date  referenced in the
respective SEC Report and to the extent required thereby. All outstanding shares
of capital stock of the Company are duly authorized,  validly issued, fully paid
and  nonassessable  and have  been  issued  in  compliance  with all  applicable
securities  laws.  No  securities  of the Company are entitled to  preemptive or
similar rights, and no Person has any right of first refusal,  preemptive right,
right of participation,  or any similar right to participate in the transactions
contemplated by the Transaction  Documents.  There are no anti-dilution or price

                                       4
<PAGE>

adjustment provisions contained in any security issued by the Company (or in any
agreement  providing  rights to security  holders) that will be triggered by the
issuance and sale of the Securities, and the issuance and sale of the Securities
will  not  obligate  the  Company  to  issue  shares  of  Common  Stock or other
securities  to any Person (other than the Buyers) and will not result in a right
of any holder of Company securities to adjust the exercise,  conversion,  number
of issuable shares, exchange or reset price under such securities.

                  (f) SEC Reports;  Financial Statements.  The Company has filed
all  reports  required  to be filed by it under the 1933 Act and the  Securities
Exchange Act of 1934, as amended (the "1934 Act"), including pursuant to Section
13(a) or 15(d) thereof,  for the period since January 1, 2004 to the date hereof
(or  such  shorter  period  as the  Company  was  required  by law to file  such
material) (the foregoing materials being collectively  referred to herein as the
"SEC  Reports"  and,  together  with  the  Schedules  to  this  Agreement,   the
"Disclosure  Materials")  on a timely basis (except for Reports on Form 8-K with
respect to which the  failure  to file  timely  does not  affect  the  Company's
eligibility  to use a Form S-3  Registration  Statement) or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. The Company has delivered to the Buyer a true,
correct  and  complete  copy of all SEC Reports  filed  within the ten (10) days
preceding  the  date  hereof.  As of their  respective  dates,  the SEC  Reports
complied in all material  respects with the requirements of the 1933 Act and the
1934 Act and the rules and  regulations of the SEC promulgated  thereunder,  and
none of the SEC  Reports,  when  filed,  contained  any  untrue  statement  of a
material fact or omitted to state a material fact required to be stated  therein
or  necessary  in order  to make the  statements  therein,  in the  light of the
circumstances  under  which they were made,  not  misleading.  The  Registration
Statement  and  any  prospectus  included  therein,   including  the  prospectus
supplement to be filed covering the transactions covered hereby, complied in all
material respects with the requirements of the 1933 Act and the 1934 Act and the
rules  and  regulations  of the SEC  promulgated  thereunder,  and  none of such
Registration  Statement or any such  prospectus  contain or contained any untrue
statement of a material  fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the case
of any prospectus in the light of the circumstances  under which they were made,
not  misleading.  The financial  statements  of the Company  included in the SEC
Reports comply in all material respects with applicable accounting  requirements
and the rules and  regulations  of the SEC with respect  thereto as in effect at
the time of filing.  Such financial  statements have been prepared in accordance
with generally  accepted  accounting  principles  applied on a consistent  basis
during the periods involved  ("GAAP"),  except as may be otherwise  specified in
such  financial  statements  or the notes  thereto,  and  fairly  present in all
material  respects the  financial  position of the Company and its  consolidated
subsidiaries  as of and for the dates thereof and the results of operations  and
cash  flows  for the  periods  then  ended,  subject,  in the case of  unaudited
statements, to normal, immaterial, year-end audit adjustments.

                  (g)  Material  Changes.  Since the date of the latest  audited
financial  statements  included  within the SEC Reports,  except as specifically
disclosed  in the SEC  Reports:  (i)  there  has been no  event,  occurrence  or
development that, individually or in the aggregate, has had or that could result
in a Material Adverse Effect,  (ii) the Company has not incurred any liabilities
(contingent  or otherwise)  other than (A) trade  payables and accrued  expenses
incurred in the ordinary  course of business  consistent  with past practice and
(B)  liabilities  not  required  to be  reflected  in  the  Company's  financial
statements pursuant to GAAP or required to be disclosed in filings made with the
SEC,  (iii) the Company has not altered its method of accounting or the identity
of its  auditors,  (iv) the  Company has not  declared  or made any  dividend or
distribution  of  cash or  other  property  to its  stockholders  or  purchased,
redeemed or made any  agreements to purchase or redeem any shares of its capital
stock, and (v) the Company has not issued any equity  securities to any officer,

                                       5
<PAGE>

director or Affiliate, except pursuant to existing Company stock option plans or
upon the exercise of outstanding warrants to purchase Common Stock.  "Affiliate"
means  any  Person   that,   directly   or   indirectly   through  one  or  more
intermediaries,  controls or is controlled by or is under common  control with a
Person, as such terms are used in and construed under Rule 144. "Rule 144" means
Rule 144  promulgated  by the SEC  pursuant to the 1933 Act, as such Rule may be
amended from time to time, or any similar rule or regulation  hereafter  adopted
by the SEC having substantially the same effect as such Rule.

                  (h) Litigation.  There is no action, suit, inquiry,  notice of
violation,  proceeding  or  investigation  pending or, to the  knowledge  of the
Company,  threatened against or affecting the Company,  any Subsidiary or any of
their respective properties before or by any court, arbitrator,  governmental or
administrative agency or regulatory authority (federal,  state, county, local or
foreign) (collectively,  an "Action") which: (i) adversely affects or challenges
the legality,  validity or enforceability of any of the Transaction Documents or
the  Securities  or  (ii)  could,   if  there  were  an  unfavorable   decision,
individually or in the aggregate,  have or result in a Material  Adverse Effect.
Neither the Company nor any Subsidiary,  nor any director or officer thereof, is
or has been the  subject  of any Action  involving  a claim of  violation  of or
liability  under  federal  or  state  securities  laws or a claim of  breach  of
fiduciary duty.  There has not been, and to the knowledge of the Company,  there
is not pending or  contemplated,  any  investigation  by the SEC  involving  the
Company or any current or former director or officer of the Company. The SEC has
not issued any stop order or other order  suspending  the  effectiveness  of any
registration statement filed by the Company or any Subsidiary under the 1934 Act
or the 1933 Act, including the Registration Statement.

                  (i)  Internal  Accounting   Controls.   The  Company  and  the
Subsidiaries  maintain a system of internal  accounting  controls  sufficient to
provide  reasonable  assurance that (i)  transactions are executed in accordance
with  management's  general or specific  authorizations,  (ii)  transactions are
recorded  as  necessary  to  permit  preparation  of  financial   statements  in
conformity with generally accepted  accounting  principles and to maintain asset
accountability,  (iii) access to assets is  permitted  only in  accordance  with
management's   general  or  specific   authorization,   and  (iv)  the  recorded
accountability  for assets is compared  with the existing  assets at  reasonable
intervals and appropriate  action is taken with respect to any differences.  The
financial records of the Company accurately reflect in all material respects the
information relating to the business of the Company, the location and collection
of its assets, and the nature of all transactions giving rise to the obligations
or accounts  receivable of the Company.  The Company has established  disclosure
controls and procedures (as defined in 1934 Act Rules 13a-14 and 15d-14) for the
Company and designed  such  disclosures  controls and  procedures to ensure that
material  information  relating to the  Company is made known to the  certifying
officers by others within the Company,  particularly  during the period in which
the  Company's  Form 10-K or 10-Q,  as the case may be, is being  prepared.  The
Company's  certifying officers have evaluated the effectiveness of the Company's
controls and  procedures as of a date within 90 days prior to the filing date of
the Form 10-K for the year ended December 31, 2003 (such date,  the  "Evaluation
Date").  The Company  presented in the Form 10-K for the year ended December 31,
2003, the conclusions of the certifying  officers about the effectiveness of the
disclosure  controls  and  procedures  based  on  their  evaluations  as of  the
Evaluation Date.

                  (j)  Investment  Company;  Sarbanes-Oxley  Act. The Company is
not, and is not an Affiliate of, an "investment  company"  within the meaning of
the  Investment  Company Act of 1940,  as amended.  The Company is in compliance
with any and all applicable  requirements of the Sarbanes-Oxley Act of 2002 that
are  effective  as of the date  hereof,  and any and all  applicable  rules  and
regulations  promulgated by the SEC thereunder that are effective as of the date
hereof,  except  where  such  noncompliance  would not have a  Material  Adverse
Effect.
                                       6
<PAGE>

                  (k) Disclosure.  The Company  confirms that neither it nor any
other Person acting on its behalf has provided any of the Buyers or their agents
or counsel with any information  that the Company  believes will,  following the
Closing Date,  constitute  nonpublic  information.  The Company  understands and
confirms that the Buyers will rely on the foregoing representations in effecting
transactions in securities of the Company. All disclosure provided to the Buyers
regarding the Company,  its business and the transactions  contemplated  hereby,
including  the  Schedules  to this  Agreement,  furnished by or on behalf of the
Company  are true and  correct  and do not  contain  any untrue  statement  of a
material fact or omit to state any material fact  necessary in order to make the
statements made therein, in the light of the circumstances under which they were
made, not misleading. The Company acknowledges and agrees that no Buyer makes or
has made any  representations  or  warranties  with respect to the  transactions
contemplated hereby other than those specifically set forth in Section 2.

         4.       COVENANTS.

                  (a) Best Efforts. Each party shall use its best efforts timely
to satisfy each of the  covenants  and the  conditions  to be satisfied by it as
provided in Sections 5, 6 and 7 of this Agreement.

                  (b)  Prospectus  Supplement  and Blue Sky.  On or  before  the
execution of this Agreement,  the Company shall have  delivered,  and as soon as
practicable after the Closing the Company shall file, a prospectus supplement to
the Registration  Statement with respect to the Securities as required under and
in conformity with the 1933 Act, including Rule 424(b) thereunder.  If required,
the  Company,  on or before the  Closing  Date,  shall  take such  action as the
Company shall reasonably  determine is necessary in order to obtain an exemption
for or to qualify the Securities for sale to the Buyers at the Closing  pursuant
to this Agreement under applicable securities or "Blue Sky" laws of the State of
New York (or to obtain an exemption from such qualification),  and shall provide
evidence  of any such  action so taken to the Buyers on or prior to the  Closing
Date.  The Company shall make all filings and reports  relating to the offer and
sale of the Securities  required under applicable  securities or "Blue Sky" laws
of the states of the United States following the Closing Date.

                  (d) Listing.  The Company shall promptly secure the listing of
all of the Purchased Shares upon each national securities exchange and automated
quotation system, if any, upon which the Common Stock is then listed (subject to
official notice of issuance) and shall maintain,  so long as any other shares of
Common Stock shall be so listed, such listing of all shares of Common Stock from
time to time issuable under the terms of the Transaction Documents.  The Company
shall  maintain the Common  Stock's  authorization  for listing on the Principal
Market.  Neither the Company nor any of its  Subsidiaries  shall take any action
which would be  reasonably  expected to result in the delisting or suspension of
the Common Stock on the  Principal  Market.  The Company  shall pay all fees and
expenses in connection with satisfying its obligations under this Section 4(d).

                  (e) Fees. The Company shall be responsible  for the payment of
any placement  agent's fees,  financial  advisory fees, or broker's  commissions
(other than for Persons  engaged by any Buyer) relating to or arising out of the
transactions  contemplated  hereby  and  arising  from  the  Company's  acts  or
omissions,  including,  without  limitation,  any fees or commissions payable to
Maxim  Group  LLC (the  "Agent").  The  Company  shall  pay,  and hold the Buyer
harmless against, any liability, loss or expense (including, without limitation,
reasonable  attorney's fees and  out-of-pocket  expenses)  arising in connection
with any claim  relating to any such  payment.  Except as otherwise set forth in
this  Agreement or in the  Transaction  Documents,  each party to this Agreement
shall bear its own expenses in connection with the sale of the Securities to the
Buyers.

                                       7
<PAGE>

                  (f) Disclosure of Transactions and Other Material Information.
The Company  shall,  on or before 8:30 a.m., New York City Time, on February 15,
2005,  issue a press release  reasonably  acceptable to the Agent disclosing all
material terms of the transactions  contemplated hereby. On or before 8:30 a.m.,
New York City Time,  on February  15,  2005,  the  Company  shall file a Current
Report on Form 8-K describing the terms of the transactions  contemplated by the
Transaction  Documents in the form  required by the 1934 Act, and  attaching the
form of this  Agreement,  the  Company's  agreement  with  the  Placement  Agent
regarding its  engagement  as placement  agent and an updated legal opinion with
respect to the Registration  Statement as exhibits to such filing (including all
attachments,  the "8-K Filing").  The Company shall not, and shall cause each of
its Subsidiaries and each of their respective officers, directors, employees and
agents,  not to,  provide  any Buyer with any  material,  nonpublic  information
regarding  the Company or any of its  Subsidiaries  from and after the filing of
the press release  referred to in the first sentence of this Section without the
express written  consent of such Buyer.  Neither the Company nor any Buyer shall
issue any press  releases or any other  public  statements  with  respect to the
transactions  contemplated hereby; provided,  however, that the Company shall be
entitled,  without the prior approval of any Buyer, to make any press release or
other public  disclosure  with respect to such  transactions  (i) in substantial
conformity  with the 8-K Filing and  contemporaneously  therewith and (ii) as is
required by applicable law and  regulations,  including the applicable rules and
regulations of the Principal Market (provided that in the case of clause (i) the
Agent  shall be  consulted  by the  Company  in  connection  with any such press
release or other  public  disclosure  prior to its  release).  Without the prior
written  consent of any applicable  Buyer or unless  required by applicable law,
the  Company   shall  not  disclose  the  name  of  any  Buyer  in  any  filing,
announcement, release or otherwise.

         5. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

            The  obligation  of the  Company  hereunder  to  issue  and sell the
Purchased Shares to each Buyer at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following  conditions,  provided that
these  conditions  are for the  Company's  sole benefit and may be waived by the
Company at any time in its sole  discretion  by providing  each Buyer with prior
written  notice  thereof:  (i)  such  Buyer  shall  have  executed  each  of the
Transaction  Documents  to which  it is a party  and  delivered  the same to the
Company;  (ii) such Buyer shall have delivered to the Company the Purchase Price
for the Purchased  Shares being  purchased by such Buyer and each other Buyer at
the Closing by wire transfer of immediately available funds pursuant to the wire
instructions  provided  by  the  Company;  and  (iii)  the  representations  and
warranties  of such Buyer shall be true and correct in all material  respects as
of the date when  made and as of the  Closing  Date as though  made at that time
(except for  representations  and warranties  that speak as of a specific date),
and such Buyer shall have  performed,  satisfied  and  complied in all  material
respects  with  the  covenants,  agreements  and  conditions  required  by  this
Agreement to be performed,  satisfied or complied with by such Buyer at or prior
to the Closing Date.

         6. CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

            The  obligation  of the Buyer  hereunder to purchase  the  Purchased
Shares at the Closing is subject to the  satisfaction,  at or before the Closing
Date, of each of the following  conditions,  provided that these  conditions are
for the Buyer's  sole benefit and may be waived by such Buyer at any time in its
sole discretion by providing the Company with prior written notice thereof:

                  (i) The Company  shall have (i) executed and delivered to such
Buyer each of the Transaction  Documents,  which Transaction  Documents shall be
identical for all Buyers, and (ii) delivered the stock certificates representing
the Purchased Shares being purchased by the Buyer.

                                       8
<PAGE>

                  (ii) Such Buyer  shall have  received  the  opinions  of Stoel
Rives,  LLP and Goodman and Carr LLP, the Company's  outside  counsel  ("Company
Counsel"),  dated as of the Closing  Date,  substantially  in the form  attached
hereto as Exhibit A.

                  (iii) The  Common  Stock (I) shall be listed on the  Principal
Market and (II) shall not have been  suspended,  as of the Closing  Date, by the
SEC or the  Principal  Market  from  trading on the  Principal  Market nor shall
suspension by the SEC or the Principal  Market have been  threatened,  as of the
Closing Date, either (A) in writing by the SEC or the Principal Market or (B) by
falling  below the minimum  listing  maintenance  requirements  of the Principal
Market.

                  (iv)  The  Company  shall  have  delivered  to  such  Buyer  a
certificate,  executed  by the  Secretary  of the  Company  and  dated as of the
Closing Date, as to (i) the  resolutions  consistent  with this  transaction  as
adopted by the Company's Board of Directors in a form  reasonably  acceptable to
such Buyer, (ii) the Articles of Incorporation  (or its equivalent),  as amended
to date, and (iii) the Bylaws of the Company,  each as in effect at the Closing,
in the form attached hereto as Exhibit B.

                  (v) The representations and warranties of the Company shall be
true and correct as of the date when made and as of the  Closing  Date as though
made at that time (except for  representations and warranties that speak as of a
specific date) and the Company shall have  performed,  satisfied and complied in
all respects  with the  covenants,  agreements  and  conditions  required by the
Transaction Documents to be performed, satisfied or complied with by the Company
at or prior to the Closing Date.  Such Buyer shall have received a  certificate,
executed by the Chief Executive Officer of the Company,  dated as of the Closing
Date, to the foregoing  effect and as to such other matters as may be reasonably
requested by such Buyer in the form attached hereto as Exhibit C.

                  (vi)  The  Registration   Statement  shall  be  effective  and
available for the issuance and sale of the Securities  hereunder and the Company
shall have delivered to such Buyer the prospectus required thereunder.

                  (vii)  The  Company  shall be  issuing  to all  Buyers  at the
Closing not less than 5,000,000 Purchased Shares.

         7.  TERMINATION.  In the event that the Closing shall not have occurred
with respect to a Buyer on the Closing Date due to the Company's or such Buyer's
failure to satisfy the  conditions  set forth in Sections 5 and 6 above (and the
nonbreaching  party's  failure  to waive  such  unsatisfied  condition(s)),  the
nonbreaching  party  shall  have the option to  terminate  this  Agreement  with
respect to such  breaching  party at the close of business on such date  without
liability of any party to any other party.

         8.       MISCELLANEOUS.

                  (a) Governing  Law;  Jurisdiction;  Jury Trial.  All questions
concerning the construction,  validity,  enforcement and  interpretation of this
Agreement  shall be  governed  by the  internal  laws of the  State of New York,
without  giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other  jurisdictions)  that would cause
the  application  of the laws of any  jurisdictions  other than the State of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts  sitting in The City of New York,  Borough of Manhattan
for the adjudication of any dispute hereunder or in connection  herewith or with
any transaction  contemplated hereby or discussed herein, and hereby irrevocably
waives,  and agrees not to assert in any suit,  action or proceeding,  any claim
that it is not personally  subject to the  jurisdiction of any such court,  that
such suit, action or proceeding is brought in an inconvenient  forum or that the
venue of such  suit,  action  or  proceeding  is  improper.  Each  party  hereby

                                       9
<PAGE>

irrevocably  waives  personal  service of process and consents to process  being
served in any such suit,  action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient  service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner  permitted by law. EACH PARTY HEREBY  IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE,  AND AGREES NOT TO  REQUEST,  A JURY TRIAL FOR THE
ADJUDICATION  OF ANY DISPUTE  HEREUNDER OR IN CONNECTION  WITH OR ARISING OUT OF
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                  (b)  Counterparts.  This  Agreement  may be executed in two or
more identical  counterparts,  all of which shall be considered one and the same
agreement and shall become effective when  counterparts have been signed by each
party and  delivered to the other  party;  provided  that a facsimile  signature
shall be  considered  due  execution  and shall be  binding  upon the  signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

                  (c)  Headings.   The  headings  of  this   Agreement  are  for
convenience   of   reference   and  shall  not  form  part  of,  or  affect  the
interpretation of, this Agreement.

                  (d) Severability.  If any provision of this Agreement shall be
invalid   or   unenforceable   in   any   jurisdiction,   such   invalidity   or
unenforceability  shall  not  affect  the  validity  or  enforceability  of  the
remainder  of  this   Agreement  in  that   jurisdiction   or  the  validity  or
enforceability of any provision of this Agreement in any other jurisdiction.

                  (e) Entire Agreement;  Amendments.  This Agreement  supersedes
all other prior oral or written  agreements  between the  Buyers,  the  Company,
their  affiliates and Persons acting on their behalf with respect to the matters
discussed  herein,  and this  Agreement and the  instruments  referenced  herein
contain  the entire  understanding  of the parties  with  respect to the matters
covered  herein and therein  and,  except as  specifically  set forth  herein or
therein,  neither the Company nor any Buyer makes any representation,  warranty,
covenant or  undertaking  with  respect to such  matters.  No  provision of this
Agreement may be amended  other than by an  instrument in writing  signed by the
Company and the holders of Purchased Shares  representing at least a majority of
the amount of the Purchased Shares, or, if prior to the Closing Date, the Buyers
being  obligated to purchase at least a majority of the amount of the  Purchased
Shares. No provision hereof may be waived other than by an instrument in writing
signed by the party against whom enforcement is sought.  No such amendment shall
be  effective  to the extent  that it applies to less than all of the holders of
the Purchased Shares then outstanding. No consideration shall be offered or paid
to any Person to amend or consent to a waiver or  modification  of any provision
of any of the  Transaction  Documents  unless  the  same  consideration  also is
offered to all of the parties to the Transaction Documents, holders of shares of
Common Stock The Company has not,  directly or  indirectly,  made any agreements
with  any  Buyers  relating  to the  terms  or  conditions  of the  transactions
contemplated by the Transaction Documents except as set forth in the Transaction
Documents.

                  (f)  Notices.   Any  notices,   consents,   waivers  or  other
communications  required  or  permitted  to be  given  under  the  terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon
receipt,  when delivered  personally;  (ii) upon receipt, when sent by facsimile
(provided   confirmation  of  transmission  is  mechanically  or  electronically
generated  and kept on file by the sending  party);  or (iii) one  business  day
after deposit with an overnight courier service, in each case properly addressed
to the party to receive the same.  The addresses and facsimile  numbers for such
communications shall be:

                                       10
<PAGE>

                  If to the Company:

                  Altair Nanotechnologies Inc.
                  204 Edison Way
                  Reno, Nevada 89502
                  Telephone: (775) 858-3750
                  Facsimile:  (775) 856-1619
                  Attention: Chief Financial Officer

                  with a copy to:

                  Stoel Rives LLP
                  201 South Main Street
                  Suite 1100
                  Salt Lake City, Utah  84111
                  Phone: (801) 578-6908
                  Fax: (801) 578-6999
                  Attention: Bryan T. Allen, Esq.

                  If to the Transfer Agent:

                  Equity Transfer Services
                  120 Adelaide Street West, Suite 420
                  Toronto, Canada M5H 4C3
                  Telephone: (416) 361-0152
                  Facsimile: (416) 361-047Attention: Al Ringler

If to a Buyer,  to its address and  facsimile  number set forth on the signature
page  hereto,  with copies to such Buyer's  representatives  as set forth on the
signature page hereto,

         With a copy (for informational  purposes only) of all notices hereunder
to:

                  Schulte Roth & Zabel LLP
                  919 Third Avenue
                  New York, New York  10022
                  Telephone:        (212) 756-2000
                  Facsimile:        (212) 593-5955
                  Attention:        Eleazer Klein, Esq.

or to such other address and/or facsimile number and/or to the attention of such
other Person as the  recipient  party has  specified by written  notice given to
each  other  party  five (5) days  prior to the  effectiveness  of such  change.
Written  confirmation  of receipt  (A) given by the  recipient  of such  notice,
consent,  waiver or other  communication,  (B)  mechanically  or  electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile  number  and an image of the first  page of such  transmission  or (C)
provided  by an  overnight  courier  service  shall be  rebuttable  evidence  of
personal  service,  receipt by facsimile  or receipt  from an overnight  courier
service in accordance with clause (i), (ii) or (iii) above, respectively.

                  (g)  Successors and Assigns.  This Agreement  shall be binding
upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of the Purchased Shares. The Company shall not
assign this Agreement or any rights or obligations  hereunder  without the prior
written  consent of the  holders of  Purchased  Shares  representing  at least a
majority  of  the  number  of the  Purchased  Shares,  including  by  merger  or
consolidation.  A Buyer may assign some or all of its rights  hereunder  without
the consent of the Company, in which event such assignee shall be deemed to be a
Buyer hereunder with respect to such assigned rights.

                                       11
<PAGE>

                  (h) No Third Party  Beneficiaries.  This Agreement is intended
for the benefit of the parties hereto and their respective  permitted successors
and  assigns,  and is not for the  benefit of, nor may any  provision  hereof be
enforced by, any other Person.

                  (i)  Survival.  Unless  this  Agreement  is  terminated  under
Section 7, the  representations  and  warranties  of the  Company and the Buyers
contained  in  Sections  2 and 3, the  agreements  and  covenants  set  forth in
Sections 4 and 8 shall  survive  the Closing and the  delivery  and  exercise of
Securities,  as  applicable.  Each Buyer shall be  responsible  only for its own
representations, warranties, agreements and covenants hereunder.

                  (j) Further  Assurances.  Each party shall do and perform,  or
cause to be done and  performed,  all such  further  acts and things,  and shall
execute and deliver all such other  agreements,  certificates,  instruments  and
documents,  as any other party may reasonably  request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  (k)  Indemnification.  (i) In  consideration  of  the  Buyer's
execution and delivery of the Transaction Documents and acquiring the Securities
thereunder and in addition to all of the Company's other  obligations  under the
Transaction  Documents,  the Company shall defend,  protect,  indemnify and hold
harmless  the Buyer and each  other  holder of the  Securities  and all of their
shareholders,  partners, members, officers,  directors,  employees and direct or
indirect   investors  and  any  of  the  foregoing   Persons'  agents  or  other
representatives  (including,  without  limitation,  those retained in connection
with  the  transactions  contemplated  by  this  Agreement)  (collectively,  the
"Indemnitees")  from and against any and all actions,  causes of action,  suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith  (irrespective of whether any such Indemnitee is a party to
the  action  for which  indemnification  hereunder  is  sought),  and  including
reasonable  attorneys' fees and disbursements  (the "Indemnified  Liabilities"),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any  misrepresentation  or breach of any  representation or warranty made by the
Company in the  Transaction  Documents or any other  certificate,  instrument or
document  contemplated  hereby  or  thereby,  (b) any  breach  of any  covenant,
agreement or obligation of the Company contained in the Transaction Documents or
any other certificate,  instrument or document contemplated hereby or thereby or
(c) any cause of action,  suit or claim brought or made against such  Indemnitee
by a third party  (including for these  purposes a derivative  action brought on
behalf of the Company) and arising out of or resulting  from (i) the  execution,
delivery,  performance or enforcement of the Transaction  Documents or any other
certificate,  instrument or document  contemplated  hereby or thereby,  (ii) any
transaction  financed  or to be  financed  in  whole  or in  part,  directly  or
indirectly,  with the proceeds of the issuance of the Purchased Shares, or (iii)
the  status of such  Buyer or holder of the  Securities  as an  investor  in the
Company.  To the extent  that the  foregoing  undertaking  by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to
the payment and  satisfaction  of each of the Indemnified  Liabilities  which is
permissible under applicable law.

                           (ii) Promptly  after  receipt by an Indemnitee  under
this  Section  9(k) of notice of the  commencement  of any action or  proceeding
(including  any  governmental  action or  proceeding)  involving an  Indemnified
Liability,  such  Indemnitee  shall, if a claim for  indemnification  in respect
thereof is to be made against any  indemnifying  party under this Section  9(k),
deliver to the indemnifying party a written notice of the commencement  thereof,
and the  indemnifying  party shall have the right to participate in, and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly  noticed,  to assume control of the defense thereof with counsel
mutually  satisfactory to the indemnifying  party and the Indemnitee;  provided,

                                       12
<PAGE>

however,  that an Indemnitee shall have the right to retain its own counsel with
the fees and  expenses of not more than one counsel  for such  Indemnitee  to be
paid by the indemnifying party, if, in the reasonable opinion of the Indemnitee,
the  representation by such counsel of the Indemnitee and the indemnifying party
would be inappropriate  due to actual or potential  differing  interests between
such  Indemnitee  and  any  other  party  represented  by such  counsel  in such
proceeding.  Legal counsel  referred to in the  immediately  preceding  sentence
shall be selected by the investors  holding at least a majority of the Purchased
Shares.  The Indemnitee  shall  cooperate fully with the  indemnifying  party in
connection  with any  negotiation  or defense of any such action or  Indemnified
Liabilities  by the  indemnifying  party and shall  furnish to the  indemnifying
party all  information  reasonably  available to the Indemnitee  that relates to
such action or Indemnified  Liabilities.  The indemnifying  party shall keep the
Indemnitee  fully  apprised  at all times as to the status of the defense or any
settlement  negotiations  with respect thereto.  No indemnifying  party shall be
liable for any settlement of any action,  claim or proceeding  effected  without
its prior written consent, provided,  however, that the indemnifying party shall
not unreasonably withhold, delay or condition its consent. No indemnifying party
shall, without the prior written consent of the Indemnitee,  consent to entry of
any judgment or enter into any  settlement  or other  compromise  which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to  such  Indemnitee  of a  release  from  all  liability  in  respect  to  such
Indemnified Liabilities or litigation. Following indemnification as provided for
hereunder,  the  indemnifying  party  shall be  subrogated  to all rights of the
Indemnitee with respect to all third parties,  firms or corporations relating to
the  matter for which  indemnification  has been  made.  The  failure to deliver
written  notice  to the  indemnifying  party  within  a  reasonable  time of the
commencement of any such action shall not relieve such indemnifying party of any
liability to the Indemnitee  under this Section 9(k),  except to the extent that
the indemnifying party is prejudiced in its ability to defend such action.

                           (iii). The  indemnification  required by this Section
9(k) shall be made by periodic  payments of the amount thereof during the course
of the  investigation or defense,  as and when bills are received or Indemnified
Liabilities are incurred.

                           (iv) The indemnity  agreements contained herein shall
be in  addition  to (i) any cause of action or similar  right of the  Indemnitee
against  the  indemnifying  party  or  others,  and  (ii)  any  liabilities  the
indemnifying party may be subject to pursuant to the law.

                  (l)  No  Strict  Construction.   The  language  used  in  this
Agreement  will be deemed to be the  language  chosen by the  parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

                  (m)  Remedies.  The  Buyer and each  holder of the  Securities
shall have all rights and remedies set forth in the  Transaction  Documents  and
all rights and  remedies  which such holders have been granted at any time under
any other  agreement  or contract  and all of the rights which such holders have
under  any law.  Any  Person  having  any  rights  under any  provision  of this
Agreement shall be entitled to enforce such rights specifically (without posting
a bond or other  security),  to  recover  damages by reason of any breach of any
provision of this  Agreement  and to exercise  all other rights  granted by law.
Furthermore,  the Company recognizes that in the event that it fails to perform,
observe,  or  discharge  any or all of its  obligations  under  the  Transaction
Documents,  any remedy at law may prove to be  inadequate  relief to the Buyers.
The Company therefore agrees that the Buyers shall be entitled to seek temporary
and  permanent  injunctive  relief in any such case  without  the  necessity  of
proving actual damages and without posting a bond or other security.

                                       13
<PAGE>

                  (n) Independent Nature of Buyers'  Obligations and Rights. The
obligations  of each Buyer under any  Transaction  Document  are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible
in any way for the  performance of the  obligations of any other Buyer under any
Transaction  Document.  Nothing  contained  herein or in any  other  Transaction
Document,  and no action taken by any Buyer pursuant hereto or thereto, shall be
deemed to  constitute  the  Buyers as a  partnership,  an  association,  a joint
venture or any other kind of entity, or create a presumption that the Buyers are
in any way acting in concert or as a group with respect to such  obligations  or
the transactions  contemplated by the Transaction Documents.  The Buyer confirms
that it has  independently  participated  in the  negotiation of the transaction
contemplated hereby with the advice of its own counsel and advisors.  Each Buyer
shall be entitled to  independently  protect and enforce its rights,  including,
without limitation, the rights arising out of this Agreement or out of any other
Transaction  Documents,  and it shall not be necessary for any other Buyer to be
joined as an additional  party in any proceeding  for such purpose.  The Company
has elected to provide all Buyers with the same terms and Transaction  Documents
for the  convenience of the Company and not because it was required or requested
to do so by the Buyers. For reasons of administrative  convenience only, a Buyer
may have chosen to  communicate  with the Company  through  Schulte Roth & Zabel
LLP.

                            [Signature Page Follows]

                                       14
<PAGE>

[Signature Page to Securities Purchase Agreement]

         IN  WITNESS  WHEREOF,  the  Buyer and the  Company  have  caused  their
respective  signature  page to this  Securities  Purchase  Agreement  to be duly
executed as of the date first written above.

                                    COMPANY:
                                    [-----------------------]

                                    By:
                                  Name:
                                 Title:

                                       16
<PAGE>

         IN  WITNESS  WHEREOF,  the  Buyer and the  Company  have  caused  their
respective  signature  page to this  Securities  Purchase  Agreement  to be duly
executed as of the date first written above.

                                   BUYER:

                                      By:
                                    Name:
                                   Title:    Authorized Signatory

                                      Investment Amount:  $________________

                               Address for Notice:

                               [-------------]
                               [-------------]
                               [-------------]
                               Facsimile:  (___) ___-_____
                               Telephone: (___) ___-_____
                               Attention: [__________]

                               With a copy to:  (Legal Representative)

                               [-------------]
                               [-------------]
                               [-------------]
                               Facsimile:  (___) ___-_____
                               Telephone: (___) ___-_____
                               Attention: [__________]

                                       17
<PAGE>

                                    EXHIBITS

Exhibit A         Form of Legal Opinion of Company Counsel
Exhibit B         Form of Secretary's Certificate
Exhibit C         Form of Officer's Certificate

                                       18Exhibit 10.1

                           CHANGE OF CONTROL AGREEMENT
                           ---------------------------

                  THIS CHANGE OF CONTROL AGREEMENT (this "Agreement") is entered
into as of the 18th day of February, 2005 (the "Effective Date"), by and between
Orthofix, Inc., a Minnesota corporation (the "Company"), and Raymond C. Kolls
(the "Employee"). Capitalized words which are not otherwise defined herein shall
have the meanings assigned to such words in Section 13 of this Agreement.

                  WHEREAS, the Company desires to have the benefits of the
Employee's knowledge and experience as Vice President and General Counsel
without distraction by employment-related uncertainties in connection with a
Change of Control or Potential Change of Control.

                  NOW, THEREFORE, in consideration of the mutual covenants set
forth herein and other good and valuable consideration, the parties agree as
follows:

                  1. Payments and Benefits.

                  If, during the Employee's employment with the Company, the
Employee's employment is terminated by the Company without Cause or the Employee
resigns for Good Reason during a Change of Control Period, the Employee shall be
entitled to the following payments and benefits described below.

                  (i) The Employee shall be entitled to a lump sum severance
         payment equal to the Employee's Base Amount (less applicable statutory
         deductions and withholding taxes). The lump sum severance payment shall
         be paid within thirty (30) days after the Employee's termination of
         employment or resignation for Good Reason.

                  (ii) Notwithstanding the terms of any applicable plan or
         arrangement to the contrary: (A) the Employee shall have immediate
         vesting of, and the immediate right to exercise, all stock options and
         stock appreciation rights theretofore granted to the Employee and (B)
         any risk of forfeiture included in restricted stock grants theretofore
         made to the Employee shall immediately lapse.

                  (iii) The Employee shall be entitled, without remuneration to
         the Company, to continuation or provision of basic employee group
         benefits that are welfare benefits, but not pension, retirement or
         similar compensatory benefits, for the Employee and the Employee's
         dependents substantially similar to those they are receiving or to
         which they are entitled immediately prior to the termination of the
         Employee's employment for the lesser of one year after termination or
         until the Employee secures new employment.

<PAGE>

                  2. Section 280G of the Code.

                  Notwithstanding any provision of this Agreement to the
contrary, if any amount or benefit to be paid or provided under this Agreement
or otherwise would be an "Excess Parachute Payment," within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), or
any successor provision thereto, but for the application of this sentence, then
the payments and benefits to be so paid or provided shall be reduced to the
minimum extent necessary (but in no event to less than zero), so that no portion
of any such payment or benefit as so reduced, constitutes an Excess Parachute
Payment. The determination of whether any reduction in such payments or benefits
to be provided under this Agreement or otherwise is required pursuant to the
preceding sentence shall be made at the expense of the Company, if requested by
the Employee or the Company, by the Company's independent accountants. If any
payment or benefit intended to be provided under this Agreement must be reduced
in accordance with this Section 2, the Employee shall be entitled to designate
the payments and/or benefits to be so reduced in order to give effect to this
Section 2. The Company shall provide the Employee with all information
reasonably requested by the Employee to permit the Employee to make such
designation. In the event that the Employee fails to make such designation
within ten business days of the termination of the Employee's employment with
the Company, the Company may effect such reduction in any manner it deems
appropriate.

                  3. Other Benefits.

                  The provisions of this Agreement shall not affect the
Employee's participation in, or terminating distributions and vested rights
under, any pension, profit-sharing, insurance or other employee benefit plan of
the Company or Orthofix N.V. to which the Employee is entitled pursuant to the
terms of such plans.

                  4. No Mitigation Obligation.

                  It will be difficult, and may be impossible, for the Employee
to find reasonably comparable employment following the termination of the
Employee's employment with the Company, and the non-competition covenant
contained in Section 6 hereof will further limit the employment opportunities
for the Employee. In addition, the Company's severance pay policy applicable in
general to its salaried employees does not provide for mitigation, offset or
reduction of any severance payment received thereunder. Accordingly, the parties
hereto expressly agree that the payment of severance compensation by the Company
to the Employee in accordance with the terms of this Agreement will be
liquidated damages, and that the Employee shall not be required to seek other
employment, or otherwise, to mitigate any payment provided for hereunder.

                  5. No Right to Set Off.

                  The Company and Orthofix N.V. shall not be entitled to set off
against amounts payable to the Employee hereunder any amounts earned by the
Employee in other employment, or otherwise, after termination of his employment
with the Company,

                                       2
<PAGE>

or any amounts which might have been earned by the Employee in other employment
had he sought such other employment.

                  6. Competitive Activity.

                 During a period ending one year following the termination of
the Employee's employment with the Company, if the Employee has received or is
receiving the payments and benefits the Employee is entitled to receive under
this Agreement as provided for in subsections (i), (ii) and (iii) of Section 1
of this Agreement, the Employee shall not, without the prior written consent of
the Orthofix N.V. Board, engage in any Competitive Activity. For purposes of
this Agreement, the term "Competitive Activity" means the Employee's
participation in the management of any business enterprise if such enterprise
engages in substantial and direct competition with Orthofix N.V. Without
limitation, an enterprise shall be deemed to be in substantial and direct
competition with Orthofix N.V. if such enterprise's sales of any product or
service competitive with any product or service of Orthofix N.V. amounted to 25%
of such enterprise's net sales for its most recently completed fiscal year, and
if the net sales of the competing product or service of Orthofix N.V. amounted
to 25% of Orthofix N.V.'s net sales for its most recently completed fiscal year.
"Competitive Activity" shall not include:

                  (i) the passive ownership of publicly-traded securities in any
         such enterprise and exercise of rights appurtenant thereto; or

                  (ii) participation in management of any such enterprise other
         than in connection with the competitive operations of such enterprise.

                  7. Non-Disclosure of Information.

                  (a) For so long as the Employee is employed by the Company,
and thereafter except in the performance of the Employee's obligations to the
Company or one of its affiliates, the Employee shall not, directly or
indirectly, use or authorize the use of any confidential or other proprietary
information of the Company or one of its affiliates ("Confidential
Information"), including but not limited to trade secrets, product
specifications and ideas, manuals, systems, procedures, confidential reports,
customer lists, sales or distribution methods, patentable information and data
and financial information concerning the Company or one of its affiliates, which
Confidential Information has been made known (whether or not with the knowledge
and permission of the Company or Orthofix N.V., and whether or not developed,
devised or otherwise created in whole or in part by the efforts of the Employee)
to the Employee by reason of the Employee's activities on behalf of the Company
or one of its affiliates. The Employee shall not reveal, divulge or make known
any Confidential Information to any individual, partnership, firm, corporation,
or other business organization whatsoever except in performance of the
Employee's obligations to the Company or one of its affiliates, with the express
permission of the Company Board or the Orthofix N.V. Board or as otherwise
required by operation of law.

                                       3
<PAGE>

                  (b) The Employee confirms that all Confidential Information is
the exclusive property of the Company or one of its affiliates. All business
records, papers and documents kept or made by the Employee relating to the
business of the Company or one of its affiliates shall be and remain the
property of the Company or one of its affiliates and shall remain in the
possession of the Company or one of its affiliates. Upon the termination of the
Employee's employment with the Company, or upon the request of the Company or
Orthofix N.V. at any time, the Employee shall promptly deliver to the Company,
and shall retain no copies of, any written materials, records and documents made
by the Employee or coming into the Employee's possession concerning the business
and affairs of the Company or one of its affiliates that contain Confidential
Information.

                  8. Remedies.

                  Without intending to limit the remedies available to the
Company or one of its affiliates, the Employee acknowledges that a breach of any
of the covenants contained in Section 6 hereof and Section 7 hereof may result
in material irreparable injury to the Company or one of its affiliates for which
there is not adequate remedy at law, that it may not be possible to measure
damages for such injuries precisely and that, in the event of such breach or
threat thereof, the Company or one of its affiliates may be entitled to obtain a
temporary restraining order and/or a preliminary or permanent injunction
restraining the Employee from engaging in activities prohibited by Section 6
hereof and Section 7 hereof or such other relief as many may be required to
specifically enforce any of the covenants in such Sections.

                  9. Inventions.

                  (a) The Employee shall promptly and fully disclose to the
Company any and all ideas, improvements, discoveries and inventions, whether or
not they are believed to be patentable ("Inventions"), which the Employee
conceives of or first actually reduces to practice, either solely or jointly
with others, during the Employee's employment with the Company or one of its
affiliates, and which relate to the business now or thereafter carried on or
contemplated by the Company or one of its affiliates or which result from any
work performed by the Employee for the Company or one of its affiliates.

                  (b) The Employee acknowledges and agrees that all Inventions
shall be the sole and exclusive property of the Company, and during the term of
the Employee's employment with the Company and thereafter, whenever requested to
do so by the Company, the Employee shall execute and assign any and all
applications, assignments and other instruments that the Company shall deem
necessary or appropriate in order to apply for and obtain Letters Patent of the
United States and/or of any foreign countries for such Inventions and in order
to assign and convey to the Company or its nominee the sole and exclusive right,
title and interest in and to such Inventions.

                  (c) The Company acknowledges and agrees that the provisions of
this Section 9 do not apply to an Invention (i) for which no equipment,
supplies, facility or

                                       4
<PAGE>

Confidential Information of the Company or one of its affiliates was used; (ii)
that was developed entirely on the Employee's own time; (iii) that does not
relate directly to the business of the Company or one of its affiliates or to
the actual or demonstrably anticipated research or development of the Company or
one of its affiliates; and (iv) that does not result from any work performed by
the Employee for the Company or one of its affiliates.

                  10. Binding Arbitration: Legal Fees and Expenses.

                  It is the intent of the Company that the Employee not be
required to bear the legal fees and related expenses associated with the
enforcement or defense of the Employee's rights under this Agreement by
litigation or other legal action because having to do so would substantially
detract from the benefits intended to be extended to the Employee hereunder.
Accordingly, the parties hereto agree as follows:

                  (a) Any dispute or controversy arising under or in connection
with this Agreement prior to the occurrence of a Change of Control shall be
resolved exclusively by binding arbitration in Mecklenburg, North Carolina, in
accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator's award in any court having
jurisdiction. Each party shall bear his or its own costs and expenses of
arbitration, but if the Employee is the prevailing party in such arbitration, in
whole, or in part, the Company shall pay to the Employee as part of the
arbitration award to the Employee an amount equal to all attorneys' and related
fees, costs and expenses incurred by the Employee in connection with such
arbitration.

                  (b) If, following the occurrence of a Change of Control, the
Employee determines, in good faith, that the Company has failed to comply with
any of its obligations under this Agreement or the Company or any other person
takes or threatens to take action to declare this Agreement void or
unenforceable, or institutes any litigation, arbitration proceeding or other
action or proceeding designed to deny, or to recover from, the Employee the
benefits provided or intended to be provided to the Employee hereunder, the
Company irrevocably authorizes the Employee from time to time to retain counsel
of the Employee's choice, at the expense of the Company as hereafter provided,
to represent the Employee in connection with the initiation or defense of any
litigation, arbitration or other legal action, whether by or against the Company
or any director, officer, stockholder or other person affiliated with the
Company, in any jurisdiction. Within ten business days after receipt from the
Employee of a request referencing this Section 10(b), the Company shall, from
time to time, pay or reimburse the Employee for fees and expenses incurred, or
reasonably anticipated to be incurred, in accordance with such request and this
Section 10(b). Without respect to whether the Employee prevails, in whole or in
part, in connection with any of the foregoing, the Company shall pay or cause to
be paid and shall be solely responsible for any and all attorneys' and related
fees and expenses incurred by the Employee in connection with any of the
foregoing, excluding any such fees and expenses related to an unsuccessful
appeal filed by the Employee of an adjudication on the merits, any motion for a
new trial filed by the Employee after such an adjudication that is denied or any
other motion filed by the Employee for reconsideration or review of such an
adjudication that is denied.

                                       5
<PAGE>

                  11. Withholding of Taxes.

                  The Company may withhold from any amounts payable under this
Agreement all federal, state, city or other taxes as shall be required pursuant
to any law or government regulation ruling.

                  12. Notices.

                  All notices, requests, demands, and other communications
called for or contemplated hereunder shall be in writing and shall be deemed to
have been duly given when delivered personally or when mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed to the parties, their successors in interest or assignees at the
following addresses or such other addresses as the parties may designate by
notice in the manner aforesaid:

                  If to the Company:        Orthofix, Inc.
                                            Huntersville Business Park
                                            The Storrs Building
                                            10115 Kincey Avenue
                                            Suite 250
                                            Huntersville, North Carolina  28078
                                            Attention:  Chief Executive Officer

                  If to the Employee:       Raymond C. Kolls
                                            13809 Tributary Court
                                            Davidson, North Carolina 28036

                  13. Definitions.

                  For purposes of this Agreement, the following capitalized
terms have the meanings set forth below:

                  (a) "Base Amount" shall mean an amount equal to the sum of:
(i) the average of the Employee's annual base salary at the highest rate in
effect in the 90-day period immediately prior to the termination of the
Employee's employment with the Company and the Employee's annual base salary for
the annual compensation period immediately preceding the annual compensation
period in which termination of the Employee's employment with the Company occurs
or, if greater, the average of the Employee's annual base salary in effect
immediately prior to the Change of Control Date or Potential Change of Control
Date and the Employee's annual base salary for the annual compensation period
immediately preceding the annual compensation period in which a Change of
Control or Potential Change of Control occurs; provided, however, that if the
Employee was not employed by the Company during such immediately preceding
compensation period, the amount included pursuant to this clause (i) shall be
the greater of the Employee's annual base salary at the highest rate in effect
in the 90-day period immediately prior to (A) the termination of the Employee's
employment with the Company or (B) the Change of Control Date or Potential
Change of Control Date; plus

                                       6
<PAGE>

(ii) the average incentive compensation payable to the Employee with respect to
the two consecutive annual incentive compensation periods ending immediately
prior to the termination of the Employee's employment with the Company or, if
greater, with respect to the two consecutive annual incentive compensation
periods ending immediately prior to the Change of Control Date or the Potential
Change of Control Date; provided, however, that if the Employee was not eligible
to participate in the Company's incentive compensation program for such two
consecutive incentive compensation periods, the amount included pursuant to this
clause (ii) shall be the most recent incentive compensation paid or payable to
the Employee by the Company, plus (iii) the monthly automobile allowance the
Employee is entitled to receive, multiplied by twelve.

                  (b) "Cause" shall mean termination of the Employee's
employment because of the Employee's: (i) involvement in fraud, misappropriation
or embezzlement related to the business or property of the Company; (ii)
conviction for, or guilty plea to, a felony or crime of similar gravity in the
jurisdiction which such conviction or guilty plea occurs; or (iii) unauthorized
disclosure of any trade secrets or other confidential information relating to
the Company's business and affairs (except to the extent such disclosure is
required under applicable law).

                  (c) "Change of Control" shall occur upon any of the following
events:

                  (i) the acquisition by any individual, entity or group (within
         the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
         Act of 1934 (the "Exchange Act")) (a "Person") of beneficial ownership
         (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
         of 30% or more of either (A) the then outstanding shares of Orthofix
         N.V.'s common stock (the "Outstanding Common Stock") or (B) the
         combined voting power of the then outstanding voting securities of
         Orthofix N.V. entitled to vote generally in the election of directors
         (the "Outstanding Voting Securities"); excluding, however, the
         following: (1) any acquisition directly from Orthofix N.V., other than
         an acquisition by virtue of the exercise of a conversion privilege
         unless the security being so converted was itself acquired directly
         from Orthofix N.V.; (2) any acquisition by Orthofix N.V.; (3) any
         acquisition by any employee benefit plan (or related trust) sponsored
         or maintained by Orthofix N.V. or any entity controlled by Orthofix
         N.V.; or (4) any acquisition pursuant to a transaction which complies
         with clauses (A), (B) and (C) of subsection (iii) of this definition of
         Change of Control;

                  (ii) a change in the composition of the Orthofix N.V. Board
         such that the individuals who, as of the date hereof, constitute the
         Orthofix N.V. Board (such Orthofix N.V. Board shall be hereinafter
         referred to as the "Incumbent Orthofix N.V. Board") cease for any
         reason to constitute at least a majority of the Orthofix N.V. Board;
         provided, however, for purposes of this paragraph, that any individual
         who becomes a member of the Orthofix N.V. Board subsequent to the date
         hereof, whose appointment, election, or nomination for election by
         Orthofix N.V.'s shareholders was approved by a vote of at least a
         majority of those individuals who are members of the Orthofix N.V.
         Board and who were also

                                       7
<PAGE>

         members of the Incumbent Orthofix N.V. Board (or deemed to be such
         pursuant to this proviso) shall be considered as though such
         individual were a member of the Incumbent Orthofix N.V. Board; but
         provided further that any such individual whose initial assumption of
         office occurs as a result of either an actual or threatened election
         contest (as such terms are used in Rule 14a-11 of Regulation 14A
         promulgated under the Exchange Act) or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Orthofix N.V. Board shall not be so considered as a member of
         the Incumbent Orthofix N.V. Board;

                  (iii) consummation of a reorganization, merger or
         consolidation or sale or other disposition of all or substantially all
         of the assets of Orthofix N.V. ("Corporate Transaction"); excluding,
         however, such a Corporate Transaction pursuant to which all of the
         following conditions are met: (A) all or substantially all of the
         individuals and entities who are the beneficial owners, respectively,
         of the Outstanding Common Stock and Outstanding Voting Securities
         immediately prior to such Corporate Transaction will beneficially own,
         directly or indirectly, more than 50% of, respectively, the outstanding
         shares of common stock, and the combined voting power of the then
         outstanding voting securities entitled to vote generally in the
         election of directors, as the case may be, of the corporation resulting
         from such Corporate Transaction (including, without limitation, a
         corporation which as a result of such transaction owns Orthofix N.V. or
         all or substantially all of Orthofix N.V.'s assets either directly or
         through one or more subsidiaries) in substantially the same proportions
         as their ownership, immediately prior to such Corporate Transaction, of
         the Outstanding Common Stock and Outstanding Voting Securities, as the
         case may be, (B) no Person (other than Orthofix N.V., any employee
         benefit plan (or related trust) of Orthofix N.V. or such corporation
         resulting from such Corporate Transaction) will beneficially own,
         directly or indirectly, 30% or more of, respectively, the outstanding
         shares of common stock of the corporation resulting from such Corporate
         Transaction or the combined voting power of the outstanding voting
         securities of such corporation entitled to vote generally in the
         election of directors except to the extent that such ownership existed
         prior to the Corporate Transaction, and (C) individuals who were
         members of the Incumbent Orthofix N.V. Board will constitute at least a
         majority of the members of the board of directors of the corporation
         resulting from such Corporate Transaction;

                  (iv) the approval by the shareholders of Orthofix N.V. of a
         complete liquidation or dissolution of Orthofix N.V;

                  (v) the Company is merged, consolidated or reorganized into,
         or with another corporation or other legal person, or securities of the
         Company are exchanged for securities of another corporation or other
         legal person, and immediately after such merger, consolidation,
         reorganization or exchange less than a majority of the combined voting
         power of the then outstanding securities of such corporation or person
         immediately after such transaction are held, directly or

                                       8
<PAGE>

         indirectly, in the aggregate by the holders of securities entitled to
         vote generally in the election of directors of the Company immediately
         prior to such transaction;

                  (vi) the Company, in any transaction or series of related
         transactions, sells all or substantially all of its assets to any other
         corporation or other legal person, and less than a majority of the
         combined voting power of the then outstanding securities of such
         corporation or person immediately after such sale or sales are held,
         directly or indirectly, in the aggregate by the holders of securities
         entitled to vote generally in the election of directors of the Company
         immediately prior to such sale;

                  (vii) Orthofix N.V. or its affiliates shall sell or dispose of
         (in a single transaction or series of related transactions) business
         operations that generated two-thirds of the consolidated revenues of
         Orthofix N.V. and its affiliates (determined on the basis of Orthofix
         N.V.'s four most recently completed fiscal quarters for which reports
         have been filed under the Exchange Act);

                  (viii) Orthofix N.V. files a report or proxy statement with
         the Securities and Exchange Commission pursuant to the Exchange Act,
         disclosing in response to Form 8-K or Schedule 14A (or any successor
         schedule, form or report or item therein) that a change in control of
         Orthofix N.V. has or may have occurred or will or may occur in the
         future pursuant to any then-existing contract or transaction;
         notwithstanding the foregoing, unless determined in a specific case by
         a majority vote of the Orthofix N.V., a "Change of Control" shall not
         be deemed to have occurred solely because: (A) an entity in which
         Orthofix N.V. directly or indirectly beneficially owns 50% or more of
         the voting securities, or any Orthofix N.V.-sponsored employee stock
         ownership plan, or any other employee benefit plan of Orthofix N.V. or
         the Company, either files or becomes obligated to file a report or a
         proxy statement under or in response to Schedule 13D, Schedule 14D-1,
         Form 8-K or Schedule 14A (or any successor schedule, form or report or
         item therein) under the Exchange Act, disclosing beneficial ownership
         by form or report or item therein) under the Exchange Act, disclosing
         beneficial ownership by it of shares of stock of Orthofix N.V., or
         because Orthofix N.V. reports that a change in control of Orthofix N.V.
         has or may have occurred or will or may occur in the future by reason
         of such beneficial ownership or (B) any Orthofix N.V.-sponsored
         employee stock ownership plan, or any other employee benefit plan of
         Orthofix N.V. or the Company, either files or becomes obligated to file
         a report or a proxy statement under or in response to Schedule 13D,
         Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule,
         form or report or item therein) under the Exchange Act, disclosing
         beneficial ownership by form or report or item therein) under the
         Exchange Act, disclosing beneficial ownership by it of shares of stock
         of Orthofix N.V., or because Orthofix N.V. reports that a change in
         control of Orthofix N.V. has or may have occurred or will or may occur
         in the future by reason of such beneficial ownership; or

                                       9
<PAGE>

                  (ix) any other transaction or series of related transactions
         occur that have substantially the effect of the transactions specified
         in any of the preceding clauses in this sentence.

                  (d) "Change of Control Date" shall mean the date on which a
Change of Control occurs.

                  (e) "Change of Control Period" shall mean the twenty-four
month period commencing on the Change of Control Date; provided, however, that
if the Executive's employment with the Company terminates prior to the Change of
Control Date but on or after a Potential Change of Control Date, and it is
reasonably demonstrated that the Employee's employment was terminated (A) at the
request of the third party who has taken steps reasonably calculated to effect a
Change of Control or (B) otherwise arose in connection with or in anticipation
of a Change of Control, then the "Change of Control Period" shall mean the
twenty-four month period beginning on the date immediately prior to the date of
the Employee's termination of employment with the Company.

                  (f) "Company Board" shall mean the Board of Directors of the
Company.

                  (g) "Good Reason" shall mean the occurrence of any of the
following: (i) without the express written consent of the Employee, any duties
are assigned to the Employee that are materially inconsistent with the
Employee's position, duties and status with the Company or one of its affiliates
as contemplated by this Agreement; (ii) any action by the Company or one of its
affiliates that results in a material adverse change in the nature or scope of
the position, duties, authorities, responsibilities or functions of the Employee
with the Company or one of its affiliates, except for strategic reallocations of
the personnel reporting to the Employee; (iii) the base annual salary of the
Employee is reduced, unless the reduction is a general reduction (on the same
percentage basis) affecting the base salaries of substantially all other
executive officers of the Company, there is a change or termination of the
Employee's right to participate, on a basis substantially consistent with
practices applicable to executive officers of the Company generally on the
Effective Date, in any bonus, incentive, profit-sharing, stock option, stock
purchase, stock appreciation, discretionary pay or similar policy, plan, program
or arrangement of the Company, or there is a termination or denial of the
Employee's right, on a basis substantially consistent with practices applicable
generally to executive officers of the Company on the Effective Date, to
participate in and receive service credit for benefits as provided under, all
life, accident, medical payment, health and disability insurance, retirement,
pension, salary continuation, expense reimbursement and other employee benefit
and perquisite policies, plans, programs and arrangements that generally are
made available to executive officers of the Company, except for any arrangements
that the Company Board adopt for select employees to compensate them for special
or extenuating circumstances.

                  (h) "Orthofix N.V." shall mean Orthofix International N.V., a
corporation organized under the laws of Netherlands Antilles.

                                       10
<PAGE>

                  (i) "Orthofix N.V. Board" shall mean the Board of Directors of
Orthofix N.V.

                  (j) "Potential Change of Control" shall mean the earliest to
occur of: (i) the date on which Orthofix N.V. executes an agreement or letter of
intent, the consummation of the transactions described in which would result in
the occurrence of a Change of Control or (ii) the date on which the Board
approves a transaction or series of transactions, the consummation of which
would result in a Change of Control, and ending when, in the opinion of the
Board, Orthofix N.V. or the respective third party has abandoned or terminated
any Potential Change of Control.

                  (k) "Potential Change of Control Date" shall mean the date on
which a Potential Change of Control occurs; provided, however, such date shall
become null and void when, in the opinion of the Board, Orthofix N.V. or the
respective third party has abandoned or terminated any Potential Change of
Control.

                  14. Governing Law.

                  This Agreement shall be governed by and construed in
accordance with the laws of the State of North Carolina, without giving effect
to the principles of conflict of laws of such State.

                  15. Validity.

                  The invalidity or unenforceability of any provision or
provisions 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. Any provision of this Agreement held to be invalid or unenforceable
shall be reformed to the extent necessary to make it valid and enforceable.

                  16. Requirements of Law.

                  If any provision of this Agreement contravenes the final
regulations or regulations anticipated to be promulgated under Section 409A of
the Code or any other guidance from the United States Department of Treasury
("Treasury"), the Company may reform this Agreement or any provision hereof or
incorporate the necessary provisions to maintain to the maximum extent
practicable the original intent of the provision without violating the
provisions of Section 409A of the Code to the extent that the Company, in its
discretion, shall determine.

                  17. Entire Agreement.

                  This Agreement constitutes the entire understanding between
the parties with respect to the subject matter hereof, superseding all
negotiations, prior discussions, preliminary agreements and employment
arrangements between the Employee and the Company or any of the Company's
subsidiaries, affiliates or other related entities. This Agreement may not be
amended, nor may any of its provisions be waived, except in writing executed by
the parties hereto; provided, however, that the Company shall be

                                       11
<PAGE>

permitted to unilaterally amend this Agreement to comply with any legal
requirements or to ensure that any amounts hereunder are not subject to federal,
state or local income tax prior to payments (including, without limitation, any
amendment to the definition of "Change of Control" based on the Treasury
regulations under Section 409A of the Code or instituting a six-month waiting
period following a distribution if required).

                  18. Effect on Successors in Interest.

                  This Agreement shall inure to the benefit of and be binding
upon the heirs, administrators, executors and successors of each of the parties
hereto, including without limitation any person acquiring, directly or
indirectly, all or substantially all of the business and/or assets of the
Company or one of its affiliates by purchase, merger, consolidation,
reorganization or otherwise (and such successor shall thereafter be deemed the
"Company" for purposes of this Agreement). This Agreement is personal in nature
and neither of the parties hereto shall, without the consent of the other,
assign, transfer or delegate this Agreement or any rights or obligations
hereunder except as expressly provided in this Section 18. Without limiting the
generality of the foregoing, the Employee's right to receive payments hereunder
shall not be assignable, transferable or delegable, whether by pledge, creation
of a security interest or otherwise, other than by a transfer under the
Employee's will or by the laws of descent and distribution and, in the event of
any attempted assignment or transfer contrary to this Section 18, the Company
shall have no liability to pay any amount so attempted to be assigned,
transferred or delegated.

                  19. Effectiveness.

                  This Agreement shall be effective upon the Effective Date.

                                       12
<PAGE>

                  This Agreement is executed and delivered as of the date first
above written.

                                                   ORTHOFIX, INC.

                                                   By:  /s/ Charles W. Federico
                                                      --------------------------
                                                   Name:  Charles W. Federico
                                                   Title: Director

                                                   RAYMOND C. KOLLS

                                                   /s/ Raymond C. Kolls
                                                   -----------------------------

                     Guaranty by Orthofix International N.V.

                  Orthofix International N.V. joins in this Agreement for the
sole purposes of guaranteeing the obligations of Orthofix, Inc. to pay, provide,
or reimburse the Employee for all cash or other benefits provided for in this
Agreement, including the provision of all benefits in the form of, or related
to, securities of Orthofix International N.V. or options thereon.

         ORTHOFIX INTERNATIONAL N.V.

         By:     /s/ Charles W. Federico
                ------------------------

         Name:     Charles W. Federico
                ------------------------

         Title:    President and CEO
                ------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]