Document:

Annual Incentive Plan

    Exhibit
      10.4

    

    FPIC
      INSURANCE GROUP, INC.

    

    2007
      SENIOR EXECUTIVE ANNUAL INCENTIVE PLAN

    (effective
      January 1, 2007)

    

    1.  Purpose.
      The
      compensation policies of FPIC Insurance Group, Inc. (the “Company”) are intended
      to support the Company's overall objective of enhancing shareholder value.
      In
      furtherance of this philosophy, the FPIC Insurance Group, Inc. 2007 Senior
      Executive Annual Incentive Plan (the “Plan”) is intended to motivate and reward
      executive officers of the Company by providing for annual incentive bonuses
      if
      annual pre-established performance goals are achieved. The Plan is also intended
      to qualify as a performance-based compensation plan under Section 162(m) of
      the
      Internal Revenue Code of 1986, as amended (the “Code”).

    

    2.  Effective
      Date.
      The Plan shall be effective as of January 1, 2007, upon approval of the Plan
      by
      the Company’s shareholders.

    

    3.  Plan
      Administration.
      The Plan shall be administered by the Compensation Committee (“Committee”) of
      the Company’s Board of Directors (“Board”), which shall consist of members
      appointed from time to time by the Board. Each member of the Committee shall
      be
      an “outside director” within the meaning of Section 162(m) of the Code. The
      Committee shall have full power and authority, subject to the provisions of
      the
      Plan and applicable law, to (a) establish, amend, suspend or waive such rules
      and regulations and appoint such agents as it deems necessary or advisable
      for
      the proper administration of the Plan, (b) construe, interpret and administer
      the Plan and any instrument or agreement relating to the Plan, and (c) make
      all
      other determinations and take all other actions necessary or advisable for
      the
      administration of the Plan. Unless otherwise expressly provided in the Plan,
      each determination made and each action taken by the Committee pursuant to
      the
      Plan or any instrument or agreement relating to the Plan (x) shall be within
      the
      sole discretion of the Committee, and (y) may be made at any time. All
      decisions of the Committee concerning the Plan shall be binding on the Company
      and its subsidiaries and their respective boards of directors, and on all
      Participants,
      their legal representatives and beneficiaries
      and other persons claiming rights under the Plan.

    

    4.  Eligibility.
      The Company's Chief Executive Officer and each other employee of the Company
      and
      its subsidiaries that the Committee determines, in its discretion, is or may
      be
      a "covered employee" of the Company within the meaning of Section 162(m) of
      the
      Code and the regulations adopted thereunder shall be eligible to participate
      in
      the Plan for a given period of twelve months or less (a “Plan Year”).
      Participation in the Plan by a Participant during a given Plan Year does not
      entitle continued participation by such Participant in any subsequent Plan
      Year.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.  Awards.

    

    (a) Initial
      Designations.
      Prior to or within ninety (90) days after the commencement of each Plan Year,
      the Committee shall designate the following:

    

    (i)   The
      persons who will participate (the “Participants”) in the Plan for the Plan
      Year.

    

    (ii)   The
      Performance Criteria, as defined herein, which will apply to Awards for the
      Plan
      Year.

    

    (iii)   The
      Performance Goals, as defined herein, to be met in order for Participants to
      earn Awards for the Plan Year.

    

    (iv)   The
      payout matrix or formula for such Performance Criteria and Performance
      Goals.

    

    (b)
      Forms of Awards. Awards
      under this Plan (“Awards”) will be bonus payments in an amount determined in
      accordance with the applicable payout matrix or formula. Subject to Section
      8(f)
      hereof, Awards shall be paid to the Participants in cash.

    

    (c)
      Performance
      Criteria. The
      Committee shall use any one or more of the following performance criteria
      (“Performance Criteria”) to establish Performance Goals: 

    

    (i)   Awards
      intended to qualify as “qualified performance-based compensation” under Section
      162(m) of the Code (“Qualified Awards”) shall be based solely upon one or more
      of the following: stock price; premiums (whether written, earned or otherwise);
      revenues; earnings, including operating earnings; shareholders' equity (whether
      including or excluding intangibles); return on equity; assets; return on assets;
      capital; return on capital; economic value added; operating margins; cash flow;
      shareholder return; expenses; combined ratio; expense ratio; loss ratio;
      underwriting results; debt-to-capital ratio; or market share. Any of the
      Performance Criteria may be on a per share basis.

    

    (ii)   Awards
      other than Qualified Awards may be described in any terms that are related
      to
      the performance of the individual Participant or the Company or a subsidiary
      of
      subsidiaries of the Company, a business unit, division, department or other
      portion thereof or the function with any of the foregoing performed by the
      Participant.

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    The
      Committee may specify any reasonable definition of the financial or other
      measures it uses. Such definitions may provide for reasonable adjustments and
      may include or exclude items, including but not limited to the following:
      realized investment gains and losses; extraordinary, unusual or non-recurring
      items; effects of accounting changes; currency fluctuations; acquisitions;
      divestitures; financing activities; recapitalizations, including stock splits
      and dividends; expenses for restructuring or productivity initiatives; and
      other
      non-operating items. Performance Criteria may be based on the performance of
      the
      Company, a subsidiary or subsidiaries of the Company, a business unit, division,
      department, or other portion thereof, a product line or products, or any
      combination of the foregoing or upon a comparison of such performance with
      the
      performance of a peer group or other measure selected or defined by the
      Committee.

    
       

    

    (d)
      Performance Goals. 
      For each Plan Year, the Committee shall establish levels of performance (the
      “Performance Goals”), the outcome of which is substantially uncertain at the
      time so established, for each of the Performance Criteria designated by the
      Committee for the Plan Year against which actual performance is to be measured
      to determine the amount of Awards.

    

    6.  Determination
      and Payment
      of Awards.

     

        
(a)
      Determination of Awards. As
      soon as practicable after the end of the Plan Year, the Committee will determine
      the amount of the Award or Awards earned by each Participant, based upon
      application of the matrix or payout formula specified in Section 5 hereof.
      The
      Committee will make payments promptly after determination of the Awards unless
      payment of an Award has been deferred pursuant to Section 8(f) hereof. With
      respect to Qualified Awards such Committee determination must include a
      certification in writing that the Performance Goals and any other material
      terms
      of the Award were in fact satisfied; provided, that minutes of the Committee
      meeting (or any action by written consent) shall satisfy the written
      certification requirement.

     

        
(b)
      Limitation on Awards. Notwithstanding
      anything herein to the contrary, the
      Awards for a Participant with respect to a Plan Year shall equal no more than
      200% of the Participant's base salary in effect on January 1 of the applicable
      Plan Year.

     

         (c)
      Qualified
      Awards; Shareholder Approval.
      It is intended that the Plan be administered, interpreted and construed so
      that
      Qualified Awards satisfy the applicable requirements for the performance-based
      compensation exception under Section 162(m) of the Code. Qualified Awards shall
      be contingent upon approval of the Plan by the Company’s shareholders in
      accordance with Section 162(m) of the Code and the regulations
      thereunder.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (d)
      Eligibility for Payment of Awards. Subject
      to Section 8(f) hereof, a Participant will be eligible to receive his or her
      Award if he or she is employed by the Company or one of its subsidiaries as
      of
      the date on which the Award is to be paid. Subject to the terms of any
      contractual arrangements to the contrary, Participants who leave the employment
      of the Company and its subsidiaries before, or who otherwise are not employed
      by
      the Company or one of its subsidiaries on, the date the Award is to be paid,
      whether involuntarily or voluntarily, are ineligible to receive payment of
      the
      Award; provided, however, that the Committee may, in its sole and complete
      discretion, determine to pay an Award in the event termination was the result
      of
      death, disability, retirement, a reduction in workforce, or other
      reason.

    

    7.   Termination,
      Suspension or Modification of the Plan. The
      Plan may be amended or terminated by the Board or Committee. All amendments
      to
      the Plan, including any amendment to terminate the Plan, shall be in writing.
      An
      amendment, other than an amendment to terminate the Plan, shall not be effective
      without the prior approval of the shareholders of the Company if such approval
      is necessary to continue to qualify Qualified Awards as “qualified
      performance-based compensation” under Section 162(m) of the Code and the
      regulations thereunder, Securities and Exchange Commission regulations, the
      rules of The Nasdaq Stock Market or any other applicable exchange, or any other
      applicable law or regulations. Unless otherwise expressly provided by the Board
      or Committee, no amendment to the Plan shall apply to Awards made before the
      effective date of the amendment.
      A Participant's rights with respect to any Awards made to him or her may not
      be
      abridged by any amendment, modification or termination of the Plan, without
      his
      or her individual consent.

    

    8.  Miscellaneous.

     

          (a)
      No
      Assignments.
      No Award shall be subject in any manner to anticipation, alienation, sale,
      transfer, assignment, pledge, encumbrance, charge, garnishment, execution,
      or
      levy of any kind, either voluntary or involuntary, including any such liability
      that is for alimony or other payments for the support of a spouse or former
      spouse, or for any other relative of a Participant prior to actually being
      received by the Participant or his or her designated beneficiary, and any
      attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
      charge, or otherwise dispose of any right to an Award shall be
      void.

    

          (b)
No
      Right of Employment.
      Neither the adoption of the Plan nor the determination of eligibility to
      participate in the Plan nor the granting of an Award shall confer upon any
      person, including any Participant, any right to continue in the employ of the
      Company or any of its subsidiaries or interfere in any way with the right of
      the
      Company or the subsidiary to terminate such employment at any time.

     

          (c)
      Tax
      Withholding.
      The Company shall have the right to withhold the amount of any tax attributable
      to amounts payable under the Plan.

     

          (d)
      Governing
      Law.
      The Plan and all determinations under the Plan shall be governed by and
      construed in accordance with the laws of the State of Florida.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

            (e)
        Other Plans.
        Nothing in this Plan shall be construed as limiting the authority of the
        Committee, the Board, the Company or any subsidiary of the Company to establish
        any other compensation plan or as in any way limiting its or their authority
        to
        pay bonuses or supplemental compensation to any person employed by the Company
        or any subsidiary of the Company, whether or not such person is a Participant
        in
        this Plan and regardless of how the amount of such compensation or bonus
        is
        determined.

    

     

          (f)
      Deferrals of Awards.
A
      Participant may elect to defer payment of his or her cash Award if deferral
      of
      an Award is permitted pursuant to the terms of a deferred compensation program
      of the Company (or a subsidiary) existing at the time the election to defer
      is
      made and the Participant complies with the terms of such program.

     

          (g)
      Committee Members Not
      Liable.
      The Committee shall be entitled to rely upon certificates of appropriate
      officers of the Company with respect to financial, statistical or other data
      in
      order to determine whether the Performance Goals have been met. The Committee
      and its members shall not be liable for any action, inaction or determination
      made in good faith with respect to the Plan.

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    The
      undersigned, Secretary of FPIC Insurance Group, Inc., hereby certifies that
      the
      above 2007 Senior Executive Annual Incentive Plan was adopted by the Board
      of
      Directors of FPIC Insurance Group, Inc. at a meeting held on December 9,
      2006.

     

    
      	 	 	 
	 
 	 
 	 
 
	 	  	/s/ T.
              Malcolm Graham
	 	
              

              T. Malcolm Graham
	 	Secretary

    
      
        
        

      

      
        5Form of Placement Agent's Warrant

    Exhibit
      4.1

     

     

    THIS
      WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
      ANY APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND THE SHARES ISSUABLE
      UPON
      EXERCISE OF THIS WARRANT ARE SUBJECT TO RESTRICTIONS ON RESALE AND MAY NOT
      BE
      RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS. 

     

    

     

    Warrant
      to Purchase up to 231,482 Common Shares

     

    of

     

    Altair
      Nanotechnologies Inc.

     

    

     

    PLACEMENT
      AGENT'S WARRANT

     

    

     

    Dated:
      December 18, 2006

     

    

     

    This
      certifies that COWEN AND COMPANY, LLC (herein sometimes called the “Placement
      Agent”)
      or its
      permitted transferee (the Placement Agent or any such permitted transferee
      is
      sometimes herein called the “Holder”)
      is
      entitled to purchase from ALTAIR NANOTECHNOLOGIES INC., a corporation continued
      under the Canada Business Corporations Act (the “Company”),
      at
      the price and during the period as hereinafter specified, up to 231,482 shares
      (the “Shares”)
      without nominal or par value, of the Company (the “Common
      Shares”),
      at a
      purchase price of $3.375 per share, subject to adjustment as described below
      (as
      so adjusted from time to time, the “Exercise
      Price”),
      at
      any time during the five-(5) year period commencing from the date hereof (the
      “Closing
      Date”).
      

     

    This
      Placement Agent's Warrant (the “Placement
      Agent's Warrant”)
      is
      issued pursuant to a Placement Agent Agreement between the Company and the
      Placement Agent, in connection with a public offering of the Company’s Common
      Shares, through the reasonable efforts of the Placement Agent, as therein
      described (the “Placement
      Agent Agreement”).
      All
      capitalized terms used herein and not otherwise defined, shall have the meanings
      ascribed to such terms in the Placement Agent Agreement.

     

    1.
       Exercise. The
      rights represented by this Placement Agent's Warrant shall be exercisable at
      the
      Exercise Price, and during the periods as follows:

     

    (a)
       At
      any
      time and from time to time between, the Closing Date and December 18, 2011
      (the
      expiration of five (5) years from the Closing Date, also referred to herein
      as the
      “Expiration
      Date”)
      inclusive, the Holder shall have the right to purchase all or any portion of
      the
      Shares at the Exercise Price. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) After
      the
      Expiration Date, the Holder shall have no right to purchase all or any portion
      of the Shares hereunder.

     

    2.
       Payment
      for Shares; Issuance of Certificates; Net Exercise. 

     

    (a)
       The
      rights represented by the Placement Agent's Warrant may be exercised at any
      time
      within the periods above specified, in whole or in part, by (i) the surrender
      of
      the Placement Agent's Warrant (with the purchase form at the end hereof properly
      executed) at the principal executive office of the Company (or such other office
      or agency of the Company as it may designate by notice in writing to the Holder
      at the address of the Holder appearing on the books of the Company); (ii)
      payment to the Company of the Exercise Price then in effect for the number
      of
      Shares specified in the above-mentioned purchase form together with applicable
      stock transfer taxes, if any; and (iii) delivery to the Company of a duly
      executed agreement signed by the person(s) designated in the purchase form
      to
      the effect that such person(s) agree(s) to be bound by the provisions of Section
      6 and subsections (b), (c), (d), (e) and (f) of Section 7 hereof. The Placement
      Agent's Warrant shall be deemed to have been exercised, in whole or in part
      to
      the extent specified, immediately prior to the close of business on the date
      the
      Placement Agent's Warrant is surrendered and payment is made in accordance
      with
      the foregoing provisions of this Section 2, and the person or persons in whose
      name or names the certificates for the Shares shall be issuable upon such
      exercise shall become the holder or holders of record of such Shares at that
      time and date. The Shares and the certificates for the Shares so purchased
      shall
      be delivered to the Holder within a reasonable time, not exceeding ten (10)
      business days, after the rights represented by this Placement Agent's Warrant
      shall have been so exercised. 

     

    (b)
       Notwithstanding
      anything to the contrary contained in Section 2(a), the Holder may elect to
      exercise this Placement Agent's Warrant in whole or in part on a “cashless
      exercise basis” by receiving Shares equal to the value (as determined below) of
      this Placement Agent's Warrant, or any part hereof, upon surrender of the
      Placement Agent's Warrant at the principal office of the Company together with
      notice of such election in which event the Company shall issue to the Holder
      a
      number of Shares

     

    computed
      using the following formula:

     

    X
      =      Y(A-B)      

    A

     

    
      	
                              Where:

               

            	
              X
                =
                

               

            	
              the
                number of Shares to be issued to the Holder;

               

            
	 	
              Y
                =
                

               

            	
              the
                number of Shares issuable upon exercise of this Placement Agent's
                Warrant
                or, if only a portion of this Placement Agent’s Warrant is being
                exercised, the portion of this Placement Agent’s Warrant being canceled
                (at the date of such calculation);

               

            
	 	
              A
                =
                

               

            	
              the
                fair market value of one Common Share (at the date of such calculation);
                and

               

            
	 	
              B
                =

            	
              the
                Exercise Price (as adjusted to the date of such
                calculation).

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    For
      the
      purpose of any computation under this Subsection 2(b), the fair market value
      per
      Common Share at any date shall be deemed to be the Closing Price (as defined
      below) of the Common Shares on the Trading Day immediately preceding the date
      as
      of which the fair market value is being determined, provided
      that if
      the Common Shares are not then listed or quoted on any market or exchange,
      then
      the fair market value shall be the average of the closing bid prices for the
      Common Shares on the OTC Bulletin Board, or, if such is not available, the
      Pink
      Sheets LLC, or otherwise the average of the closing bid prices for the Common
      Shares quoted by two market-makers of the Common Shares, or otherwise such
      fair
      market value shall be determined in good faith by the Company and the Holders.
      “Trading
      Day”
shall
      mean any day on which the principal United States securities exchange or trading
      market on which the Common Shares are listed, quoted or traded (the
“Principal
      Market”)
      as
      reported by Bloomberg Financial Markets (“Bloomberg's”)
      is
      open for trading. “Closing
      Price”
shall
      mean the average of the last sale prices for the Common Shares on the Principal
      Market for the ten Trading Days previous to the date of determination.

     

    3.
       Transfer. (a)
      Any
      transfer of this Placement Agent's Warrant shall be effected by the Holder
      by
      (i) executing the form of assignment at the end hereof and (ii) surrendering
      the
      Placement Agent's Warrant for cancellation at the office or agency of the
      Company referred to in Section 2 hereof, accompanied by (y) a certificate
      (signed by an officer of the Holder, or other authorized representative
      reasonably satisfactory to the Company, if the Holder is an entity) stating
      that
      each transferee is a permitted transferee under this Section 3; and, if
      applicable, (z) an opinion of counsel, reasonably satisfactory in form and
      substance to the Company, to the effect that the Shares or the Placement Agent’s
      Warrant, as the case may be, may be sold or otherwise transferred without
      registration under the Securities Act of 1933, as amended (the “Act”).
      Notwithstanding the foregoing, the Holder agrees that it shall not sell or
      transfer all or any part of the Placement Agent’s Warrant or the Shares to a
      resident of Canada or a person subject to the securities laws of Canada for
      a
      period of at least four (4) months from the date hereof.

     

    Upon
      any
      transfer of this Placement Agent's Warrant or any part thereof in accordance
      with the first sentence of this Section 3(a), the Company shall issue, in the
      name or names specified by the Holder (including the Holder), a new Placement
      Agent's Warrant or Warrants of like tenor (including all substantive provisions
      hereof) and representing in the aggregate rights to purchase the same number
      of
      Shares as are purchasable hereunder at such time. 

     

    (b)
       Any
      attempted transfer of this Placement Agent's Warrant or any part thereof in
      violation of this Section 3 shall be null and void
      ab initio.

     

    (c) This
      Placement Agent’s Warrant may not be exercised and neither this Placement
      Agent’s Warrant nor any of the Shares, nor any interest in either, may be
      offered, sold, assigned, pledged, hypothecated, encumbered or in any other
      manner transferred or disposed of, in whole or in part, except in compliance
      with applicable United States federal and state securities laws and applicable
      Canadian securities laws and the terms and conditions hereof. Each Placement
      Agent’s Warrant shall bear a legend in substantially the same form as the legend
      set forth on the first page of this Placement Agent’s Warrant. Each certificate
      for Shares issued upon exercise of this Placement Agent’s Warrant, unless at the
      time of exercise such Shares are acquired pursuant to a registration statement
      that has been declared effective under the Act and applicable blue sky laws,
      shall bear a legend substantially in the following form:

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “ACT”). SUCH SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
      REGISTRATION OR AN EXEMPTION THEREFROM. ALTAIR NANOTECHNOLOGIES INC. MAY REQUIRE
      AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT THAT A PROPOSED TRANSFER
      OR
      SALE IS IN COMPLIANCE WITH THE ACT.”

     

    Additionally,
      similar legends pursuant to Canadian law, as applicable, shall be set forth
      on
      any such Shares or Placement Agent’s Warrant, as reasonably determined by the
      Company’s Canadian counsel.

     

    Any
      certificate for any Shares issued at any time in exchange or substitution for
      any certificate for any Shares bearing such legend (except a new certificate
      for
      any Shares issued after the acquisition of such Shares pursuant to a
      registration statement that has been declared effective under the Act) shall
      also bear such legend unless, in the opinion of counsel for the Company, the
      Shares represented thereby need no longer be subject to the restriction
      contained herein. The provisions of this Section 3(c) shall be binding upon
      all
      subsequent holders of certificates for Shares bearing the above legend and
      all
      subsequent holders of this Placement Agent’s Warrant, if any.

     

    4.
       Shares
      to be Fully Paid; Reservation of Shares.
      The
      Company covenants and agrees that all Shares which may be purchased hereunder
      will, upon issuance and delivery against payment therefor of the requisite
      purchase price, be duly and validly issued, fully paid and nonassessable. The
      Company further covenants and agrees that, during the periods within which
      the
      Placement Agent's Warrant may be exercised, the Company will at all times have
      authorized and reserved a sufficient number of Common Shares to provide for
      the
      exercise of the Placement Agent's Warrant. 

     

    5.
       No
      Voting or Dividend Rights. The
      Placement Agent's Warrant shall not entitle the Holder to any voting rights
      or
      any other rights, including without limitation notice of meetings of other
      actions or receipt of dividends or other distributions, as a stockholder of
      the
      Company. 

     

    6.
       Registration
      Rights. 
      (a)
 The
      Company covenants and agrees that (subject to the provisions of this Section
      6),
      within 30 days from the date hereof, it will prepare and file with the U.S.
      Securities and Exchange Commission (the “Commission”)
      a
      registration statement on Form S-3 (or if such form is not available, a Form
      S-1) (the “Registration
      Statement”)
      covering all of the Shares underlying the Placement Agent’s Warrant (the
“Registrable
      Securities”)
      for a
      secondary or resale offering to be made on a continuous basis pursuant to Rule
      415. The Company will use its commercially reasonable efforts to cause the
      Registration Statement to be declared effective under the Act (including filing
      with the Commission a request for acceleration of effectiveness in accordance
      with Rule 461 promulgated under the Act within five (5) business days of the
      date that the Company is notified by the Commission that the Registration
      Statement will not be “reviewed” or is no longer subject to further review by
      the Commission) and to keep the Registration Statement continuously effective
      until the earlier of (i) such time that all of the Registrable Securities have
      been sold, (ii) the date when the Holder may sell the Registrable Securities
      pursuant to Rule 144(k) promulgated under the Act, as determined by counsel
      to
      the Company pursuant to a written opinion letter, or (iii) the Expiration
      Date.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (b)
       If
      (i) at
      any time when a prospectus relating to Registrable Securities is required to
      be
      made available under the Act, the Company discovers that, or any event occurs
      as
      a result of which, the prospectus (including any supplement thereto) included
      in
      the Registration Statement, as then in effect, includes an untrue statement
      of a
      material fact or omits to state any material fact required to be stated therein
      or necessary to make the statements therein, in the light of the circumstances
      under which they were made, not misleading, or (ii) the Commission issues any
      stop order suspending the effectiveness of the Registration Statement or
      proceedings are initiated or threatened for that purpose, then the Company
      shall
      promptly deliver a written notice to such effect to each Holder whose
      Registrable Securities are included in the Registration Statement, and each
      such
      Holder shall immediately upon receipt of such notice discontinue its disposition
      of Registrable Securities pursuant to the Registration Statement until the
      copies of the supplemented or amended prospectus contemplated by the immediately
      following sentence is made available and, if so directed by the Company, shall
      deliver to the Company (at the Company's expense), if applicable, all copies,
      other than permanent file copies, then in such Holder's possession of the
      prospectus or prospectus supplement relating to such Registrable Securities
      current at the time of receipt of such notice. As promptly as practicable
      following the event or discovery referred to in clause (i) of the immediately
      preceding sentence, the Company shall prepare and make available to the Holders
      whose Registrable Securities are included in the Registration Statement the
      amendment or supplement of such prospectus so that, as thereafter made available
      to purchasers of such Registrable Securities, such prospectus shall not include
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading. Notwithstanding
      anything to the contrary in this Section 6 if the filing or maintenance of
      the
      Registration Statement would require the Company to make a disclosure that
      would, in the reasonable judgment of the Company's Board of Directors, have
      a
      material adverse effect on the business, operations, properties, prospects
      or
      financial condition of the Company or on pending or imminent transactions,
      the
      Company shall have the right, exercisable for a period not to exceed in the
      aggregate 60 consecutive calendar days in any period of twelve consecutive
      months (the “Blackout
      Period”)
      upon
      written notice to the Holders, to delay the filing of the Registration Statement
      or of any amendment thereto, to suspend its obligation to maintain the
      effectiveness of the Registration Statement and to suspend the use of any
      prospectus or prospectus supplement in connection with the Registration
      Statement. Each Holder agrees that upon receipt of any such notice from the
      Company, it shall immediately cease all efforts to dispose of Registrable
      Securities pursuant to the Registration Statement until such time as the Company
      shall notify it of the end of such restrictions or, if earlier, the expiration
      of the Blackout Period. 

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    7.
       Indemnification. (a)
      Whenever the Registration Statement relating to the Shares issued upon exercise
      of the Placement Agent's Warrant is filed under the Act, amended or
      supplemented, the Company will indemnify and hold harmless each Holder of the
      securities covered by the Registration Statement, amendment or supplement (such
      Holder being hereinafter called the “Distributing
      Holder”),
      and
      each person, if any, who controls (within the meaning of the Act) the
      Distributing Holder, and each underwriter (within the meaning of the Act) of
      such securities and each person, if any, who controls (within the meaning of
      the
      Act) any such underwriter, against any losses, claims, damages or liabilities,
      joint or several, to which the Distributing Holder, any such controlling person
      or any such underwriter may become subject, under the Act or otherwise, insofar
      as such losses, claims, damages or liabilities, or actions in respect thereof,
      arise out of or are based upon (i) any untrue statement or alleged untrue
      statement of any material fact contained in the Registration Statement as
      declared effective or any final prospectus constituting a part thereof or any
      amendment or supplement thereto, (ii) the omission or the alleged omission
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading or (iii) any act or failure to act, or
      any
      alleged act or failure to act, by any Distributing Holder in connection with,
      or
      relating in any manner to, the Registration Statement or the offering
      contemplated thereby, and which is included as part of or referred to in any
      loss, claim, damage, liability or action arising out of or based upon matters
      covered by clause (i) or (ii) above; (provided that the Company shall not be
      liable in the case of any matter covered by this clause (iii) to the extent
      that
      it is determined in a final judgment by a court of competent jurisdiction that
      such loss, claim, damage, liability or action resulted directly from any such
      act or failure to act undertaken or omitted to be taken by such Distributing
      Holder through its gross negligence or willful misconduct) and will reimburse
      the Distributing Holder or such controlling person or underwriter promptly
      upon
      demand for any legal or other expense reasonably incurred by them in connection
      with investigating or defending any such loss, claim, damage, liability or
      action as such expenses are incurred; provided, however, that the Company will
      not be liable in any such case to the extent that any such loss, claim, damage,
      liability or action arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission made in said
      Registration Statement, said preliminary prospectus, said final prospectus
      or
      said amendment or supplement in reliance upon and in conformity with written
      information furnished by such Distributing Holder or any other Distributing
      Holder for use in the preparation thereof and provided further, that the
      indemnity agreement provided in this Section 7(a) with respect to any
      preliminary prospectus shall not inure to the benefit of any Distributing
      Holder, controlling person of such Distributing Holder, underwriter or
      controlling person of such underwriter from whom the person asserting any
      losses, claims, charges, liabilities or litigation based upon any untrue
      statement or alleged untrue statement of a material fact or omission or alleged
      omission to state therein a material fact, received such preliminary prospectus,
      if a copy of the prospectus in which such untrue statement or alleged untrue
      statement or omission or alleged omission was corrected has not been sent or
      given to such person within the time required by the Act and the rules and
      regulations of the Commission thereunder. This indemnity agreement is not
      exclusive and will be in addition to any liability, which the Company might
      otherwise have and shall not limit any rights or remedies that may otherwise
      be
      available at law or in equity to each Distributing Holder.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    (b)
       The
      Distributing Holder will indemnify and hold harmless the Company, each of its
      directors, each of its officers who have signed the Registration
      Statement and each person, if any, who controls the Company (within the
      meaning of the Act) against any losses, claims, damages or liabilities, joint
      or
      several, to which the Company or any such director, officer or controlling
      person may become subject, under the Act or otherwise, insofar as such losses,
      claims, damages or liabilities, or actions in respect thereof, arise out of
      or
      are based upon (i) any untrue or alleged untrue statement of any material fact
      contained in said Registration Statement, said preliminary prospectus, said
      final prospectus, or said amendment or supplement, or (ii) are based upon the
      omission or the alleged omission to state therein a material fact required
      to be
      stated therein or necessary to make the statements therein not misleading,
      in
      each case to the extent, but only to the extent, that such loss, claim, damage
      or liability arises out of or is based upon an untrue statement or alleged
      untrue statement or omission or alleged omission made in said Registration
      Statement, said preliminary prospectus, said final prospectus or said amendment
      or supplement in reliance upon and in conformity with written information
      furnished by such Distributing Holder for use in the preparation thereof; and
      will reimburse the Company or any such director, officer or controlling person
      for any legal or other expenses reasonably incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability or action
      as
      such expenses are incurred. This indemnity agreement is not exclusive and will
      be in addition to any liability, which each Distributing Holder might otherwise
      have and shall not limit any rights or remedies that may otherwise be available
      at law or in equity to the Company.

     

    (c)
       Promptly
      after receipt by an indemnified party under this Section 7 of notice of the
      commencement of any action, such indemnified party will, if a claim in respect
      thereof is to be made against an indemnifying party under this Section 7, notify
      the indemnifying party in writing of the commencement thereof, but the omission
      so to notify the indemnifying party will not relieve it from any liability
      which
      it may have to any indemnified party for indemnity or contribution to the extent
      the indemnifying party is not prejudiced as a proximate result of such failure.
      In case any such action is brought against any indemnified party, and such
      indemnified party seeks or intends to seek indemnity from an indemnifying party,
      the indemnifying party will be entitled to participate in, and, to the extent
      that it shall elect, jointly with any other indemnifying party similarly
      notified, by written notice delivered to the indemnified party promptly after
      receiving the aforesaid notice from such indemnified party, to assume the
      defense thereof with counsel reasonably satisfactory to such indemnified party;
      provided, however, if the defendants in any such action include both the
      indemnified party and the indemnifying party and the indemnified party shall
      have reasonably concluded that a conflict may arise between the positions of
      the
      indemnifying party and the indemnified party in conducting the defense of any
      such action or that there may be legal defenses available to it and/or other
      indemnified parties which are different from or additional to those available
      to
      the indemnifying party, the indemnified party or parties shall have the right
      to
      select separate counsel to assume such legal defenses and to otherwise
      participate in the defense of such action on behalf of such indemnified party
      or
      parties. Upon receipt of notice from the indemnifying party to such indemnified
      party of such indemnifying party's election so to assume the defense of such
      action and approval by the indemnified party of counsel (which approval shall
      not be unreasonably withheld or delayed), the indemnifying party will not be
      liable to such indemnified party under this Section 7 for any legal or other
      expenses subsequently incurred by such indemnified party in connection with
      the
      defense thereof unless: 

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    (i)
      the
      indemnified party shall have employed separate counsel in accordance with the
      proviso to the next preceding sentence (it being understood, however, that
      the
      indemnifying party shall not be liable for the expenses of more than one
      separate counsel (together with local counsel), representing the indemnified
      parties who are parties to such action); (ii) the indemnifying party shall
      not
      have employed counsel satisfactory to the indemnified party to represent the
      indemnified party within a reasonable time after notice of commencement of
      the
      action; or (iii) the indemnifying party has authorized the employment of counsel
      for the indemnified party satisfactory to the indemnified party at the expense
      of the indemnifying party, in each of which cases the fees and expenses of
      counsel shall be at the expense of the indemnifying party. 

     

    (d)
       The
      indemnifying party under this Section 7 shall not be liable for any settlement
      of any proceeding effected without its written consent, which consent shall
      not
      be unreasonably withheld or delayed, but if settled with such consent or if
      there be a final judgment for the plaintiff, the indemnifying party agrees
      to
      indemnify the indemnified party against any loss, claim, damage, liability
      or
      expense by reason of such settlement or judgment. No indemnifying party shall,
      without the prior written consent of the indemnified party, effect any
      settlement, compromise or consent to the entry of judgment in any pending or
      threatened action, suit or proceeding in respect of which any indemnified party
      is or could have been a party and indemnity was or could have been sought
      hereunder by such indemnified party, unless such settlement, compromise or
      consent includes: (i) an unconditional release of such indemnified party from
      all liability on claims that are the subject matter of such action, suit or
      proceeding; and (ii) does not include a statement as to or an admission of
      fault, culpability or a failure to act by or on behalf of any indemnified party.
      

     

    (e)
       Any
      losses, claims, damages, liabilities or expenses for which an indemnified party
      is entitled to indemnification or contribution under this Section 7 shall be
      paid by the indemnifying party to the indemnified party as such losses, claims,
      damages, liabilities or expenses are incurred, but in all cases, no later than
      forty-five (45) days after invoice to the indemnifying party. 

     

    (f)
       If
      the
      indemnification provided for in this Section 7 is unavailable to or insufficient
      to hold harmless an indemnified party under Section 7(a) or 7(b) above in
      respect of any losses, claims, damages or liabilities (or actions or proceedings
      in respect thereof) then each indemnifying party shall contribute to the
      aggregate amount paid or payable by such indemnified party in such proportion
      as
      is appropriate to reflect the relative fault of such indemnifying party on
      the
      one hand and the indemnified party on the other in connection with the
      statements or omissions which resulted in such losses, claims, damages or
      liabilities (or actions or proceedings in respect thereof), as well as any
      other
      relevant equitable considerations. The relative fault shall be determined by
      reference to, among other things, whether the untrue or alleged untrue statement
      of a material fact or the omission or alleged omission to state a material
      fact
      relates to information supplied by the Company or the “control” stockholders on
      the one hand or the Distributing Holder on the other and the parties' relative
      intent, knowledge, access to information and opportunity to correct or prevent
      such statement or omission. 

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    The
      Company and each Distributing Holder agree that it would not be just and
      equitable if contributions pursuant to this Section 7(f) were determined by
      pro
      rata allocation or by any other method of allocation which does not take account
      of the equitable considerations referred to above in this Section 7(f). The
      amount paid or payable by an indemnified party as a result of the losses,
      claims, damages or liabilities (or actions or proceedings in respect thereof)
      referred to above in this Section 7(f) shall be deemed to include any legal
      or
      other expenses reasonably incurred by such indemnified party in connection
      with
      investigating or defending any such action or claim. Notwithstanding the
      provisions of this Section 7(f): (i) each Distributing Holder shall not be
      required to contribute any amount in excess of the amount of proceeds received
      by such Holder from sale(s) of such Holder's Shares pursuant to the Registration
      Statement; and (ii) no person guilty of fraudulent misrepresentation (within
      the
      meaning of Section 11(f) of the Act) shall be entitled to contribution from
      any
      person who was not guilty of such fraudulent misrepresentation. 

     

    8.
       Adjustment
      of Exercise Price. The
      Exercise Price in effect at the time and the number and kind of securities
      purchasable upon the exercise of this Placement Agent's Warrant shall be subject
      to adjustment from time to time upon the happening of certain events as
      follows:

     

    (a)
       In
      case
      the Company shall (i) declare a dividend or make a distribution on its
      outstanding Common Shares in Common Shares, (ii) subdivide or reclassify its
      outstanding Common Shares into a greater number of shares, (iii) combine or
      reclassify its outstanding Common Shares into a smaller number of shares, or
      (iv) enter into any transaction whereby the outstanding Common Shares of the
      Company are at any time changed into or exchanged for a different number or
      kind
      of shares or other securities of the Company or of another corporation through
      reorganization, merger, consolidation, liquidation or recapitalization, then
      appropriate adjustments in the number of Shares (or other securities for which
      such Shares have previously been exchanged or converted) subject to this
      Placement Agent's Warrant shall be made and the Exercise Price in effect at
      the
      time of the record date for such dividend or distribution or of the effective
      date of such subdivision, combination, reclassification, reorganization, merger,
      consolidation, liquidation or recapitalization shall be proportionately adjusted
      so that the Holder of this Placement Agent's Warrant exercised after such date
      shall be entitled to receive the aggregate number and kind of shares or other
      securities which, if this Placement Agent's Warrant had been exercised by such
      Holder immediately prior to such date, the Holder would have been entitled
      to
      receive upon such dividend, distribution, subdivision, combination,
      reclassification, reorganization, merger, consolidation, liquidation or
      recapitalization. For example, if the Company declares a 2 for 1 stock
      subdivision (split) and the Exercise Price hereof immediately prior to such
      event was $7.00 per Share and the number of Shares issuable upon exercise of
      this Placement Agent's Warrant was 85,500, the adjusted Exercise Price
      immediately after such event would be $3.50 per Share and the adjusted number
      of
      Shares issuable upon exercise of this Placement Agent's Warrant would be
      171,000. Such adjustment shall be made successively whenever any event listed
      above shall occur. 

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    (b)
       Whenever
      the Exercise Price is adjusted, as herein provided, the Company shall promptly
      cause a notice setting forth the adjusted Exercise Price and adjusted number
      of
      Shares issuable upon exercise of the Placement Agent's Warrant to be mailed
      to
      the Holder, at its address set forth herein, and shall cause a certified copy
      thereof to be mailed to the Company's transfer agent, if any. The Company may
      retain a firm of independent certified public accountants selected by the Board
      of Directors (who may be the regular accountants employed by the Company) to
      make any computation required by this Section 8, and a certificate signed by
      such firm shall be conclusive evidence of the correctness of such adjustment.
      

     

    (c)
       In
      the
      event that at any time, as a result of an adjustment made pursuant to the
      provisions of this Section 8, the Holder of the Placement Agent's Warrant
      thereafter shall become entitled to receive any shares of the Company other
      than
      Common Shares, thereafter the number of such other shares so receivable upon
      exercise of the Placement Agent's Warrant shall be subject to adjustment from
      time to time in a manner and on terms as nearly equivalent as practicable to
      the
      provisions with respect to the Common Shares contained in Sections 8(a) above.
      

     

    9.
       Governing
      Law. This
      Agreement shall be governed by and in accordance with the laws of the State
      of
      New York without regard to conflicts of laws principles thereof.

     

    10.
       Binding
      Effect on Successors. In
      case
      of any consolidation of the Company with, or merger of the Company into, any
      other entity, or in case of any sale or conveyance of all or substantially
      all
      of the assets of the Company other than in connection with a plan of complete
      liquidation of the Company at any time prior to the Expiration Date, then as
      a
      condition of such consolidation, merger or sale or conveyance, the Company
      shall
      give written notice of consolidation, merger, sale or conveyance to the Holder
      and, from and after the effective date of such consolidation, merger, sale
      or
      conveyance the Placement Agent's Warrant shall represent only the right to
      receive the consideration that would have been issuable in respect of the Shares
      underlying the Placement Agent's Warrant in such consolidation, merger, sale
      or
      conveyance had the Placement Agent's Warrant been exercised in full immediately
      prior to such effective time and the Holder shall have no further rights under
      this Placement Agent's Warrant other than the right to receive such
      consideration. 

     

    11. Fractional
      Shares.
      No
      fractional shares shall be issued upon exercise of this Placement Agent’s
      Warrant. The Company shall, in lieu of issuing any fractional share, pay the
      holder entitled to such fraction a sum in cash equal to such fraction multiplied
      by the then effective Exercise Price.

     

    12. Lost
      Warrants. The
      Company represents and warrants to the Holder hereof that upon receipt of
      evidence reasonably satisfactory to the Company of the loss, theft, destruction,
      or mutilation of this Placement Agent's Warrant and, in the case of any such
      loss, theft or destruction, upon receipt of an affidavit of loss and indemnity
      reasonably satisfactory to the Company, or in the case of any such mutilation
      upon surrender and cancellation of such Placement Agent's Warrant, the Company,
      at its expense, will make and deliver a new Warrant, of like tenor, in lieu
      of
      the lost, stolen, destroyed or mutilated Warrant.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    13. Headings. The
      headings of the several sections and paragraphs of this Placement Agent's
      Warrant are inserted for convenience only and do not constitute a part of this
      Placement Agent's Warrant.

     

    14. Modification
      and Waiver. This
      Placement Agent's Warrant and any provision hereof may be changed, waived,
      discharged or terminated only by an instrument in writing signed by the party
      against which enforcement of the same is sought.

     

    15. Survival. The
      rights and obligations of the Company, of the Holder and of the holder of Shares
      issued upon exercise of this Placement Agent's Warrant shall survive the
      exercise of this Placement Agent's Warrant.

     

    16. Remedies.
      The
      Company stipulates that the remedies at law of the Holder of this Placement
      Agent’s Warrant in the event of any default or threatened default by the Company
      in the performance of or compliance with any of the terms of this Placement
      Agent’s Warrant are not and will not be adequate and that, to the fullest extent
      permitted by law, such terms may be specifically enforced by a decree for the
      specific performance of any agreement contained herein or by an injunction
      against a violation of any of the terms hereof or otherwise.

     

    IN
      WITNESS WHEREOF, the Company has caused this Placement Agent's Warrant to be
      signed by its duly authorized officers under its corporate seal, and this
      Placement Agent's Warrant to be dated December 18, 2006.

     

    

     

    ALTAIR
      NANOTECHNOLOGIES INC.

     

    

     

    By: 
      _____________________________________

    Name:

    Title:

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    PURCHASE
      FORM

     

    (To
      be
      signed only upon exercise of Warrant)

     

     

    The
      undersigned, the holder of the foregoing Placement Agent's Warrant, hereby
      irrevocably elects to exercise the purchase rights represented by such Warrant
      for, and to purchase thereunder, _______________ Common Shares, without nominal
      or par value per share (the “Shares”),
      of
      ALTAIR NANOTECHNOLOGIES INC. and either 

     

    

     

    o 
tenders
      herewith payment of the aggregate Exercise Price in respect of the Shares in
      full, in the amount of $_________; or

     

    o  
elects
      pursuant to Section
      2(b) of such Warrant to convert such Warrant into Common Shares on a cashless
      exercise basis; and

     

    o  
requests
      that the
      certificates for the Shares issued in the name(s) of, and delivered to
      _________________, whose address(es) is (are):

     

    

     

    Dated:
      _________________

    

     

    By:

    _____________________________________

     

    _____________________________________

     

    _____________________________________

    Address

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TRANSFER
      FORM

     

    (To
      be
      signed only upon transfer of Placement Agent's Warrant)

     

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto
      ______________________________ the right to purchase Shares represented by
      the
      foregoing Placement Agent's Warrant to the extent of __________ Shares, and
      appoints _________________________ attorney to transfer such rights on the
      books
      of Altair Nanotechnologies Inc., with full power of substitution in the
      premises. 

     

    

    
       

      Dated:
        __________________________

      

       

      By:

      _____________________________________

       

      _____________________________________

       

      _____________________________________

      Address

    

     

    

     

    In
      the
      presence of:

     

    

    ____________________________________

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