Document:

ex10-3.htm

Exhibit 10.3

EMPLOYMENT AGREEMENT

(Level 12 Officer)

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of September 18, 2011, by and among Altairnano, Inc., a Nevada corporation (the “Company”), Altair Nanotechnologies Inc., a Canadian corporation (“Parent”; together with the Company and all direct or indirect majority-owned subsidiaries of the Parent, the “Consolidated Companies”; each, a “Consolidated Company”), and Stephen B. Huang, an individual (“Employee”).

RECITALS

A.           The Company is a wholly-owned indirect subsidiary of Parent and holds a substantial portion of the operating assets of the Consolidated Companies.

B.           Parent and the Company desire to retain Employee as an employee of a Consolidated Company subject to the terms and conditions of this Agreement.

C.           Employee desires to be retained as an employee of a Consolidated Company subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of this Agreement and of the covenants and conditions contained in this Agreement, the parties hereto agree as follows:

1.                Employment; Location. The Company hereby employs Employee during the Term, and Employee hereby accepts such employment.  The initial “Place of Employment” for Employee shall be in Washoe County in the State of Nevada.  If the Company requests that Employee relocate and Employee agrees to such request, the relocated place of employment shall thereafter be the “Place of Employment.”

2.                Term.  The term of this Agreement (the “Term”) shall commence on the date first set forth above (the “Effective Date”) and shall terminate upon the earlier to occur of (i) the Expiration Date (as defined below), and (ii) the termination of Employee’s employment with all of the Consolidated Companies.

2.1 Expiration Date defined  -  The initial Expiration Date shall be the two-year anniversary of the Effective Date.  Unless the Company or Employee provides the other with at least ninety (90) days advance written notice prior to the initial Expiration Date (and each Expiration Date thereafter) of its intention not to renew this term of Agreement following the then-current Expiration Date, the Expiration Date shall automatically be changed to the two-year anniversary of the then-current Expiration Date.

  

  

  

2.2 Survival of Certain Sections Until End of Statute of Limitations

Notwithstanding anything in this Agreement to the contrary, Sections 7 and 8 shall survive termination of this Agreement and expiration of the Term for the time periods set forth therein, and this sentence and all provisions relating to the interpretation or enforcement of, and disputes under, this Agreement shall survive until the expiration of the last applicable statute of limitations.

3.                Duties.  Employee’s title shall be Chief Financial Officer (“CFO”) of Altair Nanotechnologies, Inc.. Employee's duties shall include such duties as are specifically assigned or delegated to Employee by the Board of Directors of any Consolidated Company (any such Board of Directors, the “Board”) and such other duties as are typically performed by an employee with the same position as Employee.  Employee acknowledges that, subject to Section 6.3(c), the Board may change, increase or decrease
Employee’s title, position and/or duties from time to time at its discretion and may appoint Employee as an employee of another Consolidated Company, which employment is governed by this Agreement.  Employee shall diligently execute his or her duties and shall devote his or her full time, skills and efforts to such duties during ordinary working hours. Employee shall faithfully adhere to, execute and fulfill all lawful policies established from time to time by the Consolidated Companies.

 

 

   As the Parent’s CFO, Employee shall, at least but not by way of limitation, have the following responsibilities:

(a)      Provide information, documents, briefings and periodic updates  about the Consolidated Company’s financial and strategic policies to the Board of Directors and various committees (including Audit Committee and Compensation Committee);

(b)      Implement appropriate integrated  financial systems, and internal controls over financial reporting;

(C)     Direct global financial planning & analysis, SEC reporting, accounting, tax and treasury functions; and

(D)     Support & coordinate U.S. Securities and Exchange Commission (“SEC”) filings to comply with the request from the Securities and Exchange Commission.

4.                Compensation and Benefits.  The Company shall pay Employee, and Employee accepts as full compensation for all services to be rendered to all Consolidated Companies, the following compensation and benefits:

4.1           Base Salary.  During the Term, the Company shall pay Employee an annual base salary per year in an amount not less than $200,000. Such annual base salary shall be payable in accordance with the Company's customary pay schedule.  In addition, Employee is eligible for a special year-end performance pay of up to $25,000 based upon personal performance against Key Performance Indicator (KPI) targets established by the Board.

 

4.2                Stock Options.

(a)           At the next meeting of the Compensation Committee of Parent, which in no event will exceed the period of two weeks from the date of employment, Parent shall grant 

 

  

2

  

to Employee options to purchase an aggregate of 200,000 common shares of Parent subject to the terms and conditions of the applicable stock incentive plan and with the exercise price, vesting and other terms as the Compensation Committee of Parent shall deem appropriate.

(b)           During the period of Employee’s employment with a Consolidated Company, Parent may from time to time grant to Employee options to purchase common shares of Parent and/or issue to Employee common shares that are subject to rights of forfeiture or repurchase under certain terms and conditions (such options or shares, “Equity Awards”).  Parent agrees that agreements governing all Equity Awards shall provide (if not already so amended)  that such Equity Awards shall, unless otherwise requested by Employee in writing, immediately vest as of the
effective date of the Change of Control Event.  A “Change of Control Event” means (a) any capital reorganization, reclassification of the capital stock of Parent, consolidation or merger of Parent with another corporation in which Parent is not the survivor (other than a transaction effective solely for the purpose of changing the jurisdiction of incorporation of Parent), (b) the sale, transfer or other disposition of all or substantially all of  the Consolidated Companies’ assets to another entity, (c) the acquisition by a single person (or two or more persons acting as a group, as a group is defined for purposes of Section 13(d)(3) under the Securities Exchange Act of 1934, as amended) of more than 40% of the outstanding common shares of Parent.

4.3           Bonus.  Employee shall be eligible to receive an annual performance bonus based on the successful completion of the Company performance objective to realize a net profit, determined in accordance with GAAP, for the one-year period ended December 31, 2012.  Specific implementation measures are specified by the Board. Employee and the
Board shall, prior to the end of the first month of each calendar year, negotiate in good faith with the objective of agreeing upon performance objectives and related bonus amounts for the upcoming fiscal year. If Employee and the Board are not able to reach a mutual agreement as to performance objectives, the objectives and amount of any bonus shall be in the discretion of the Board. In all circumstances, the bonus owing to Employee hereunder shall be paid to Employee prior to March 15th of the year following the year in which Employee has achieved the agreed-upon performance objectives, such achievement being determined in the sole discretion of the Board.

   As CFO, if there is a material error or omission in the Company filings or correspondence with the SEC as a result of the gross negligence or willful misconduct of Employee, the Consolidated Company will have the right to seek indemnification from Employee.

4.4           Additional Benefits.  Employee shall be eligible to participate in, and be subject to, the Consolidated Companies’ employee benefit plans for, and policies governing, employees, if and when any such plans and policies may be adopted, including, without limitation, bonus plans, pension or profit sharing plans, incentive stock plans, and those plans established in the discretion of the Board for individual participation in any such plans and policies as may be in effect from time to time.

4.5           Vacation, Sick Leave, and Holidays.  Beginning on the date hereof, Employee 

 

  

3

  

shall be entitled to 3-weeks vacation, sick leave and holidays at full pay in accordance with the Consolidated Companies’ policies.

4.6           Deductions.  The Company shall have the right to deduct from the compensation due to Employee hereunder and all sums required for social security and withholding taxes and for any other federal, state or local tax or charge which may be hereafter enacted or required by law as a charge on any cash or non-cash compensation of Employee.

4.7. Performance Review.   Employee will be subject to a performance review after 6-months of employment. If the performance of the Employee is deemed inadequate, Employee is subject to termination.

 

5.                   Business Expenses.  The Company shall promptly reimburse Employee for all reasonable out-of-pocket entertainment and business expenses Employee incurs in fulfilling Employee’s duties hereunder subject to, and in accordance with, the general reimbursement policy of the Consolidated Companies in effect from time to time.

6.                   Termination of Employee's Employment.

6.1           Termination of Employment by the Company for Cause.  Employee's employment may be terminated by the Consolidated Companies at any time for “Cause.”  A determination of whether Employee’s actions justify termination for Cause shall be made by the Board.  A termination of Employee's employment pursuant to this Section 6.1 shall be effective as of the effective date of the notice by the Board of Parent to Employee that it has made the required determination, or as of such
subsequent date, if any, as is specified in such notice.  For purposes of this Agreement, “Cause” shall include (a) Employee’s material breach of this Agreement, which breach cannot be cured or, if capable of being cured, is not cured within fifteen (15) days after receipt of written notice of the need to cure, (b) any act of theft, embezzlement, conversion or other taking or misuse of the property or opportunities of and Consolidated Company, (c) any fraudulent or criminal activities, (d) any grossly negligent or unethical activity, (e) any activity that causes substantial harm to any Consolidated Companies, its reputation, or to its officers, directors or employees  (including, without limitation, the illegal possession or consumption of drugs for which Employee does not have a valid prescription on property controlled by any Consolidated Company
or in the course of performing services for any Consolidated Company), or (vi) habitual neglect of or deliberate or intentional refusal to perform Employee’s duties and obligations under this Agreement.

6.2           Termination by the Company without Cause.  Employee’s employment with each Consolidated Company is “at will” and may be terminated at any time by the Consolidated Companies with, or without, Cause. Any termination shall be effective as of the date specified in the notice of termination.

6.3           Termination By Employee for Good Reason.  Employee may terminate his employment with any and all Consolidated Companies at any time for Good Reason (as defined below), provided Employee has delivered a written notice to the Board of Parent that briefly 

 

  

4

  

describes the facts underlying Employee's belief that Good Reason exists and the Company has failed to cure such situation within thirty (30) days of its receipt of such notice.

For purposes of this Agreement, “Good Reason” shall mean and consist of: (a) a material breach by the Company of any of its obligations, duties, agreements, representations or warranties under this Agreement that cannot be cured or, if capable of being cured, is not cured within thirty (30) days after receipt of written notice from the Employee of the need to cure; (b) without Employee's prior written consent, the Consolidated Company requires the Employee to relocate Employee's place of employment to any place other than the Place of Employment as a condition to continued employment or maintenance of the same or a comparable position
with the Consolidated Companies (provided that reasonable business travel shall not constitute a relocation of Employee’s place of employment and required relocation shall constitute Good Reason only following the Consolidated Companies’ notification of Employee of its requirement that Employee relocate and prior to Employee’s agreement to relocate his or her place of employment), or (c) during the period ninety (90) days prior to and one year after a Change of Control Event, a material adverse change in Employee’s title, position and/or duties within the Consolidated Companies as a whole.

6.4           Termination by Employee without Good Reason.  Upon not less than 15 day's prior written notice (which notice shall specify the effective date of the termination), Employee may terminate his employment with any and all Consolidated Companies by such notice without Good Reason or any reason of any kind.

6.5           Termination of Employment by Death.  If Employee dies during the term of employment, Employee's employment with all Consolidated Companies shall be terminated effective as of the date of Employee’s death.

6.6           Disability.  The Company or Employee may terminate Employee's employment with all Consolidated Companies if Employee shall become unable to fulfill his duties under this Agreement, as measured by his usual business activities with the Consolidated Companies,  for the eligibility period set forth in the long-term disability policy under which Employee is potentially eligible to receive disability benefits (the “Eligibility Period”) by reason of any medically determinable physical and/or
mental disability determined in accordance with the procedure in this Section 6.6.  If in the opinion of the Company or Employee, Employee is disabled, then the following shall occur:

(a)           the Company or Employee shall promptly so notify (by dated written notice) the insurance company or carrier that, at that time, insures the employees of the Company against long-term disability (the “Company’s Insurance Carrier”) and request a determination as to whether Employee is disabled pursuant to the terms of the Company's long-term disability plan or policy; and

(b)           the matter of Employee's disability shall be resolved, and Employee and the Company shall abide by the decision of, the Company’s Insurance Carrier.

A termination of Employee's employment pursuant to this Section 6.6 shall be effective at the 

 

  

5

  

expiration of the Eligibility Period.  If Employee is not covered by a Company-sponsored long-term disability policy on the date that the Company and/or Employee believe that Employee may have a medically determinable physical and/or mental disability, the Board of Parent shall make the determination of whether Employee has a medically determinable physical and/or mental disability using the definition of disability, including applicable court interpretations, used for purposes of the Americans With Disabilities Act of 1990, as amended, and the “Eligibility Period” shall be 90 days from the date as of which it is determined that the Employee commenced having a medically
determinable disability.

7.                    Effect of Termination of Employee’s Employment.

7.1           Provisions Applicable to All Terminations. If Employee’s employment with all Consolidated Companies is terminated for any reason, (a) all cash compensation from the Company described in this Agreement that was due through the effective date of the termination, but unpaid, shall be computed and paid to Employee by the Company within any payment deadline set forth in Nevada law (or if none is applicable, within 30 days), provided that any disability payments to be made by the Company’s Insurance Carrier shall be made when, as and if made by the
Company’s Insurance Carrier; and (b)  Employee, or his heirs, or estate, as the case may be, shall receive all compensation and employee benefits accrued through the effective date of the termination, and all benefits provided through the Company's insurance plans pursuant to the terms and conditions of such insurance plans or that the Company is required to provide by governing law.

7.2           Termination Absent a Change of Control and Absent Cause/Good Reason.  If Employee's employment with all of the Consolidated Companies is terminated under any circumstances other than the circumstances described in Section 7.3 or Section 7.4 below, whether by the Consolidated Companies or Employee, Employee shall not be entitled to any compensation in addition to that set forth in Section 7.1.

7.3           Termination by Employee for Good Reason.  If Employee's employment is terminated by Employee for Good Reason during the Term (but not as of an Expiration Date), then, in addition to complying with the requirements of Section 7.1, the Company shall, subject to the terms and conditions of this Agreement and conditioned upon the Company’s receipt of a written waiver, release and non-litigation agreement from Employee in form and substance reasonably satisfactory to the Consolidated Companies with respect to all liabilities of any Consolidated
Company of any kind arising prior to and in connection with such termination (other than under Options and Section 7) (a “Release”), pay to or for the benefit of Employee or, if applicable, Employee’s heirs or estate:

(a) with respect to the Severance Period (as defined in Section 7.5), Employee’s base salary at a rate equal to Employee’s salary rate as of the date of termination paid in accordance with the Company’s customary pay schedule; and

(b) Company health benefits coverage then in effect (with Company /Employee contributions remaining the same on a percentage basis as during the period immediately prior to termination) for a period of eighteen (18) months commencing on the first 

 

  

6

  

day of the Severance Period.

Notwithstanding anything in this Section 7.3 to the contrary: (A) no base salary continuation otherwise payable to the Employee under this Section 7.3 shall be paid unless and until the Employee incurs a Separation from Service from the Company during the Severance Period (with any amounts deferred as a result of this subsection 7.3(A) being payable promptly following such Separation from Service and as permitted by subsection 7.3(B)); and (B) any base salary amounts that are otherwise due or payable under this Section 7.3 during the six-month period following the Employee’s Separation from Service shall instead be deferred and paid to the Employee within five business days after, but in no
instance prior to, the six-month anniversary of Employee’s Separation from Service (or, if earlier, the date of Employee’s death) if and to the extent that such amounts (1) do not constitute “separation pay due to involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-1(b)(9)(iii)) as a result of the application of the separation from serve for good reasons provisions set forth in Treasury Regulation Section 1.409A-1(n)(2)(ii); and (2) are subject to Code Section 409A.  All base salary continuation amounts owing to Employee with respect to portions of the Severance Period following the six-month anniversary of the Separation of Service shall be paid in accordance with the Company’s customary pay schedule.  The foregoing payment structure is intended to comply with the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) and shall be interpreted consistently with that intent.

7.4                   Termination by Company without Cause.  If Employee's employment is terminated by the Company without Cause during the Term (but not as of an Expiration Date), then, in addition to complying with the requirements of Section 7.1, the Company shall, subject to the terms and conditions of this Agreement and conditioned upon the Company’s receipt of a Release, continue to pay, when due in accordance with the Company’s customary pay schedule,  to or for the benefit of Employee or, if applicable, his
heirs or estate, subject to (A) and (B) below:

(A) Employee’s base salary at a rate equal to Employee’s salary rate as of the date of termination during the Severance Period.

(B) Company health benefits coverage then in effect (with Company /Employee contributions remaining the same on a percentage basis as during the period immediately prior to termination) with respect to an eighteen-month period commencing on the first date of the Severance Period; and

Notwithstanding anything in this Section 7.4 to the contrary: (A) no base salary continuation otherwise payable to the Employee under this Section 7.4 shall be paid unless and until the Employee incurs a Separation from Service from the Company during the Severance Period (with any amounts deferred as a result of this subsection 7.4(A) being payable promptly following such Separation from Service and as permitted by subsection 7.4(B)); and (B) any base salary amounts that are otherwise due or payable under this Section 7.4 during the six-month period following the Employee’s Separation from Service shall instead be deferred and paid to the Employee within five business days after, but in no
instance prior to, the six-month anniversary of Employee’s Separation from Service (or, if earlier, the date of Employee’s death) if and to the extent that such amounts (1) do not constitute “separation pay due to involuntary 

 

  

7

  

separation from service” (as defined in Treasury Regulation Section 1.409A-1(b)(9)(iii)); and (2) are subject to Code Section 409A.  All base salary continuation amounts owing to Employee with respect to portions of the Severance Period following the six-month anniversary of the Separation of Service shall be paid in accordance with the Company’s customary pay schedule.  The foregoing restrictions on the payment of continuing base salary are intended to comply with the requirements of Section 409A of the Code and shall be interpreted consistently with that intent.

 

7.5           Severance Period.  Subject to Section 7.7, the “Severance Period” shall be a period of two months for each year of employment with the Company (prorated for any partial periods), subject to a minimum of two months.   The Severance Period shall commence when a “separation from service”, as defined in Treasury Regulation Section 1.409A-1(h) (a “Separation from Service”).

7.6           Return of Company Property.   Upon the termination or end of the employment of Employee with the Consolidated Companies or at any time upon the request of Parent, Employee shall provide to the Consolidated Companies all property belonging to any Consolidated Company, including, but not limited to, keys, card passes, credit cards, electronic equipment including computers and personal digital devices, cellular telephones, Consolidated Company automobiles, and all data and any Consolidated Company intellectual property whether located on
Consolidated Company property or otherwise.

7.7           Breach of Protective Covenants.  Notwithstanding anything in this Section 7 to the contrary, Employee shall not be entitled to any payments or benefits under any of Sections 7.3 or 7.4 of this Agreement with respect to any period (a) prior to Employee’s delivery to the Company of a Release if such Release is not executed within seven (7) days of Employee’s receipt of a form of Release, (b) during which Employee is in breach of Section 7.6 or any portion of Section 8 of this Agreement, (c) during which Employee is in breach of
any  portion of the Proprietary Information Agreement (any of (a), (b) or (c), a “Covenant Breach”).  Upon the Company’s determination that a Covenant Breach has occurred, it shall notify Employee of its belief that a Covenant Breach has occurred and may withhold, without penalty or interest, any payments or benefits otherwise due to Employee pursuant to any of Section 7.3 or 7.4 until the question of whether a Covenant Breach has occurred is definitely resolved without right to appeal or similar recourse (and if it is determined that the Company withheld the payments and benefits in error, the Company’s sole obligation shall be prompt payment of all withheld payments and the cash value to the Company of any withheld benefits).

8.                     Covenant Not to Compete

8.1           Covenant.  Employee hereby agrees that, while Employee is employed by any Consolidated Company and during a period of 12 months following the termination of Employee’s employment with all Consolidated Companies, Employee will not directly or indirectly compete (as defined in Section 8.2 below) with any the Consolidated Company or any affiliates anywhere in the United States.  It is the intention of Parent, the
Company and Employee that this provision be interpreted to only prevent actual competitive harm to any Consolidated Company and not otherwise hinder or restrict Employee in his efforts to find 

 

  

8

  

continued employment in Employee’s field of training and expertise.

8.2           Direct and Indirect Competition.   As used herein, the phrase “directly or indirectly compete” shall include owning, managing, operating or controlling, or participating in the ownership, management, operation or control of, or being connected with or having any interest in, as a stockholder, director, officer, employee, agent, consultant, assistant, advisor, sole proprietor, partner or otherwise, any Competing Business (as defined below).  For purposes of this Agreement, a “Competing Business” shall be any
business or enterprise other than any Consolidated Company that is engaged in the Nanomaterials Business (as defined below).  This prohibition, however, shall not apply to ownership of less than five percent (5%) of the voting stock in companies whose stock is traded on a national securities exchange or in the over-the-counter market.  For purposes of this Agreement the “Nanomaterials Business” means the development, marketing, use, modification or exploitation associated with lithium titanate and energy storage systems of any technology or process for the production of pigments, metals, nanomaterials or other materials from titanium containing ores and other feed materials for use in any application being explored, considered or developed by any Consolidated Company at any time while Employee is employed with any Consolidated Company, including, without
limitation, the production of titanium dioxide pigments, the production of titanium metals, the production of lanthanum based phosphate and arsenic binding products, the production of battery materials, batteries or other energy storage devices or the production of thermal spray materials.

8.3           Nonsolicitation.  Employee hereby agrees that, while he is employed by any Consolidated Company pursuant to this Agreement, and, during a period of 12 months following the termination of Employee’s employment with all Consolidated Companies, Employee will not, directly or indirectly, through an affiliate or otherwise, for his account or the account of any other person, (a) solicit business substantially similar to the Nanomaterials Business from any person or entity that at the time of
termination is or was a customer of any Consolidated Company, whether or not Employee had personal contact with such person during and by reason of employment with a Consolidated Company; (ii) in any manner induce or attempt to induce any employee of a Consolidated Company to terminate his or her employment with a Consolidated Company; or (iii) materially and adversely interfere with the relationship between a Consolidated Company and any employee, contractor, supplier, customer or shareholder of a Consolidated Company.

8.4           Enforceability.  If any of the provisions of this Section 8 is held unenforceable, the remaining provisions shall nevertheless remain enforceable, and the court making such determination shall modify, among other things, the scope, duration, or geographic area of this Section to preserve the enforceability hereof to the maximum extent then permitted by law.  In addition, the enforceability of this Section is also subject to the injunctive and other equitable powers of a court as described in Section 11 below.

8.5           Jurisdiction.  For the sole purpose of enforcement of the Consolidated Companies’ rights under this Section 8, Parent, the Company and Employee intend to and hereby confer jurisdiction to enforce the restrictions set forth in this Section 8 (the "Restrictions") upon the courts of any jurisdiction within the geographical scope of the Restrictions.  If the courts of any one or more of such jurisdictions hold the Restrictions unenforceable by reason of the 

 

  

9

  

breadth of such scope or otherwise, it is the intention of Parent, the Company and Employee that such determination not bar or in any way affect any Consolidated Company's rights to the relief provided above in the courts of any other jurisdiction within the geographical scope of the Restrictions, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants.  In the event of any litigation between the parties under this Section 8, the court shall award reasonable attorneys fees to the prevailing party.

9.                     Confidential Information, Invention Assignment, Etc.  Employee represents and covenants that Employee has signed and delivered to Parent (or will sign and deliver upon request) an Employment, Confidential Information, Invention Assignment, Nonsolicitation and Arbitration Agreement is a condition precedent to Employee’s eligibility for any rights and benefits under this Agreement (the “Proprietary Information Agreement”).  The Proprietary Information Agreement and this
Agreement shall be interpreted, to the extent possible, as being mutually consistent with each other, supplementary and both fully enforceable; provided, however, in the event of an irreconcilable conflict between specific provisions of each of the two agreements, the specific provisions of this Agreement shall prevail.

10.                   No Conflicts.  Employee hereby represents and covenants that Employee’s performance of all the terms of this Agreement and his work as an employee of a Consolidated Company does not and will not breach any oral or written agreement to which Employee is a party or by which Employee is bound.

11.                   Equitable Remedies.  Employee acknowledges and agrees that the breach or threatened breach by him of certain provisions of this Agreement, including without limitation Sections 8 above, would cause irreparable harm to the Consolidated Company for which damages at law would be an inadequate remedy.  Accordingly, Employee hereby agrees that in any such instance Parent or the Company shall be entitled to seek (without prior mediation or arbitration) injunctive or other equitable relief in any state or
federal court within or without the State of Nevada in addition to any other remedy to which it may be entitled.  Employee hereby submits to the jurisdiction of any courts within the City of Reno in the State of Nevada and agrees not to assert such venue is inconvenient.

12.                   Assignment. This Agreement is for the unique personal services of Employee and is not assignable or delegable in whole or in part by Employee without the consent of the Board of Parent.  This Agreement may not be assigned or delegated in whole or in part by the Parent or the Company without the written consent of Employee; provided, however, this Agreement may be assigned by the Parent or the Company without Employee’s prior written consent if such assignment is made to an entity that is a Consolidated
Company or is acquiring substantially all of the business or assets of any Consolidated Company, whether by merger, asset sale or otherwise.

13.                   Waiver or Modification. Any waiver, modification, or amendment of any provision of this Agreement shall be effective only if in writing in a document that specifically refers to this Agreement and such document is signed by the parties hereto.

  

10

  

14.                   Entire Agreement. This Agreement, together with the Proprietary Information Agreement and other agreements required under or included in the Consolidated Companies’ policies constitute the full and complete understanding and agreement of the parties hereto with respect to the subject matter covered herein and supersedes and terminates all prior oral or written understandings and agreements with respect thereto.

15.                   Severability. If any provision of this Agreement is found to be unenforceable by a court of competent jurisdiction, the remaining provisions shall nevertheless remain in full force and effect.

16.                   Attorneys’ Fees.  Should any Company, Parent or Employee default in any of the covenants contained in this Agreement, or in the event a dispute shall arise as to the meaning of any term of this Agreement, the defaulting or nonprevailing party shall pay all costs and expenses, including reasonable attorneys’ fees, that may arise or accrue from enforcing this Agreement, securing an interpretation of any provision of this Agreement, or in pursuing any remedy provided by applicable law whether such remedy
is pursued or interpretation is sought by the filing of a lawsuit, an appeal, or otherwise.

17.                   Confidentiality.  Each of the parties acknowledges that the common shares of  Parent are registered under the Securities Exchange Act of 1934, as amended, and a result, Parent may be required to, and hereby has authorization to, file this Agreement or any amendment hereto with the Securities and Exchange Commission without requesting confidential treatment for any portion hereof.

18.                   Notices.  Any notice required hereunder to be given by either party shall be in writing and shall be delivered personally or sent by certified or registered mail, postage prepaid, or by private courier, with written verification of delivery, or by facsimile or other electronic transmission to the other party to the address or facsimile number set forth below or to such other address or facsimile number as either party may designate from time to time according to this provision.  A notice delivered
personally or by facsimile or electronic transmission shall be effective upon receipt.  A notice delivered by mail or by private courier shall be effective on the third day after the day of mailing:

(a)           To Employee at:                                   28538 Starboard Lane

Hayward, CA  94545

(b)           To Parent and the Company at:        Altair Nanotechnologies Inc.

204 Edison Way

Reno, Nevada  89502

Facsimile No: (775) 856-1619

19.                   Disputes; Governing Law; Arbitration.

(a)           Except as provided in Section 11 and Section 8.5, any dispute concerning the interpretation or construction of this Agreement or his employment or service with Company, shall be resolved by confidential mediation or binding arbitration in Reno, Nevada.  The parties shall first attempt mediation with a neutral mediator agreed upon by the parties.  If mediation is unsuccessful or if the parties are unable to agree upon a mediator within thirty (30) days of a request for mediation by any party, the dispute shall be submitted to arbitration pursuant to the
procedures of the American Arbitration Association (“AAA”) or other procedures agreed to by the parties.  All arbitration proceedings shall be conducted by a neutral arbitrator mutually agreed upon by the parties from a list provided by AAA.  The decision of the arbitrator shall be final and binding on all parties.  The costs of mediation and arbitration shall be borne equally by the parties.

(b)           This Agreement shall be construed in accordance with and governed by the statutes and common law of the State of Nevada (other than any provisions that would cause the provisions of any other laws to apply).  To the extent this Agreement expressly permits any dispute to be resolved other than through arbitration or mediation, except as set forth in Section 8.5, the exclusive venue for any such action shall be the state and federal courts located in Reno, Nevada or state courts located in the State of New York, and the parties each hereby submit to the jurisdiction of
such courts for purposes of this Agreement.

20.                   Counterparts; Facsimile.  This Agreement may be executed in multiple counterparts, all of which taken together shall form a single Agreement.  A facsimile copy of this Agreement or any counterpart thereto shall be valid as an original.

[Intentionally left blank; signature page follows]

  

11

  

IN WITNESS WHEREOF, Employee has signed this Employment Agreement (Level 12 Officer) personally and the Company and Parent have caused this Agreement to be executed by their duly authorized representatives.

 

	 	COMPANY:	 
	 	 	 	 
	 	 	 	 
	 	
ALTAIRNANO, INC.

	 
	 	a Nevada corporation	 
	 	 	 
	 	 	 	 
	
 

	By:  /s/ Steve Balogh	 
	 	 	 
	 	Name:  Steve Balogh	 
	 	 	 
	 	Title:  VP HR	 
	 	 	 	 

 

	 	PARENT:	 
	 	 	 	 
	 	 	 	 
	 	
ALTAIR NANOTECHNOLOGIES INC.

	 
	 	a Canadian corporation	 
	 	 	 
	 	 	 	 
	
 

	By:  /s/ Steve Balogh	 
	 	 	 
	 	Name:  Steve Balogh	 
	 	 	 
	 	Title:  VP HR	 
	 	 	 	 

 

	 	EMPLOYEE:	 
	 	 	 	 
	 	 	 	 
	
 

	/s/ Stephen B. Huang	 
	 	Stephen B. Huang, an individual	 
	 	 	 	 

 

 

12LGCY 9.30.2011 EX 10.1

Exhibit 10.1

FIRST AMENDMENT

TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

AMONG

LEGACY RESERVES LP,
as Borrower,

the Gurantors,

BNP PARIBAS,
as Administrative Agent,

and

The Lenders Signatory Hereto

Dated as of September 30, 2011

    

First Amendment to 
Second Amended and Restated Credit Agreement

This First Amendment to Second Amended and Restated Credit Agreement (this “First Amendment”) dated as of September 30, 2011, among Legacy Reserves LP, a limited partnership duly formed under the laws of the State of Delaware (the “Borrower”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Obligors”); BNP Paribas, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”); and the Lenders signatory hereto.

Recitals

A.    The Borrower, the Administrative Agent and the Lenders are parties to that certain Second Amended and Restated Credit Agreement dated as of March 10, 2011 (the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

B.    The Guarantors are parties to that certain Second Amended and Restated Guaranty Agreement dated as of March 10, 2011 made by each of the Guarantors (as defined therein) in favor of the Administrative Agent (the “Guaranty”).

C.    The Borrower, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement as more fully set forth herein.

D.    NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.    Defined Terms.  Each capitalized term which is defined in the Credit Agreement, but which is not defined in this First Amendment, shall have the meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated, all section references in this First Amendment refer to sections of the Credit Agreement.

Section 2.    Amendments to Credit Agreement.

2.1    Amendment to Preamble and Cover. The preamble of the Credit Agreement is amended by striking the following clause “Wells Fargo Bank, N.A., as syndication agent (the “Syndication Agent”), and Compass Bank as document agent (the “Document Agent”)” and replacing it with the following:
“Wells Fargo Bank, N.A. and Compass Bank as co-syndication agents (the “Co-Syndication Agents”) and UBS AG, Stamford Branch and U.S. Bank National Association as co-documentation agents (the “Co-Documentation Agents)”
The cover of the Credit Agreement is amended to reflect the preamble, as amended above.

2.2    Amendments to Section 1.02.  

Page 1

(a)     The definition of “Agents” is hereby amended in its entirety to read as follows:
“Agents” means, collectively, the Administrative Agent, the Co-Syndication Agents and the Co-Documentation Agents; and “Agent” shall mean either the Administrative Agent, a Co-Syndication Agent or a Co- Documentation Agent, as the context requires.
(b)    The definition of “Agreement” is hereby amended in its entirety to read as follows:
“Agreement” means this Credit Agreement, as amended by the First Amendment, including the Schedules and Exhibits hereto, as the same may be amended, restated or modified from time to time.
(c)    The following definition is hereby added where alphabetically appropriate to read as follows:
“First Amendment” means that certain First Amendment to Second Amended and Restated Credit Agreement, dated as of September 30, 2011, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
2.3    Amendment to Section 9.18.  Section 9.18 is hereby amended by deleting the reference to “90%” in clause (b) thereof and replacing it with “100%”.
2.4    Amendment to Section 11.03.    The fourth sentence of Section 11.03 is hereby amended in its entirety to read as follows:
If a Default has occurred and is continuing, none of the Co-Syndication Agents nor the Co-Documentation Agents shall have any obligation to perform any act in respect thereof.   
2.4    Amendment to Section 11.11.    Section 11.11 is hereby amended in its entirety to read as follows:
Section 11.11        The Arranger, the Co-Syndication Agents and the Co-Documentation Agents.  The Arranger, the Co-Syndication Agents and the Co-Documentation Agents shall have no duties, responsibilities or liabilities under this Agreement and the other Loan Documents other than their duties, responsibilities and liabilities in their capacity as a Lender hereunder to the extent they are a party to this Agreement as a Lender.

Section 3.    Assignments and Reallocation of Commitments and Loans.  The Lenders have agreed among themselves, in consultation with the Borrower, to reallocate their respective Maximum Credit Amounts and Commitments.  The Administrative Agent and the Borrower hereby consent to such reallocation.  On the First Amendment Effective Date (as defined below) and after giving effect to such reallocations, the Maximum Credit Amounts and Commitment of each Lender shall be as set forth on Annex I of this First Amendment, which Annex I supersedes and replaces Annex I to the Credit Agreement (and Annex I to the Credit Agreement is hereby 

Page 2

amended and restated in its entirety to read as set forth on Annex I attached hereto).  With respect to such reallocation, each Lender shall be deemed to have acquired the Maximum Credit Amount and Commitment allocated to it from each of the other Lenders pursuant to the terms of the Assignment and Assumption attached as Exhibit D to the Credit Agreement as if the Lenders had executed an Assignment and Assumption with respect to such allocation.  On the First Amendment Effective Date, the Administrative Agent shall take the actions specified in Section 12.04(b)(v), including recording the assignments described herein in the Register, and such assignments shall be effective for purposes of the Credit Agreement.  If, on the First Amendment Effective Date, any Eurodollar Loans have been funded, then the Borrower shall be obligated to pay any breakage fees or costs that are payable pursuant to Section 5.02, in connection with the reallocation of such outstanding Eurodollar Loans to effectuate the provisions of this paragraph. 

Section 4.    Conditions Precedent.  This First Amendment shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “First Amendment Effective Date”): 

4.1    The Administrative Agent shall have received from all the Lenders, the Borrower and the Guarantors, counterparts (in such number as may be requested by the Administrative Agent) of this First Amendment signed on behalf of such Person.
4.2    The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the date hereof.
4.3    No Default shall have occurred and be continuing as of the First Amendment Effective Date.
4.4    The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.
The Administrative Agent is hereby authorized and directed to declare this First Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4 or the waiver of such conditions as permitted in Section 12.02 of the Credit Agreement.  Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 5.    Miscellaneous.
5.1    Confirmation.  The provisions of the Credit Agreement, as amended by this First Amendment, shall remain in full force and effect following the effectiveness of this First Amendment.
5.2    Ratification and Affirmation; Representations and Warranties.  Each Obligor hereby (a) acknowledges the terms of this First Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby; (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this First Amendment:  (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct, except to 

Page 3

the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct as of such specified earlier date, (ii) no Default or Event of Default has occurred and is continuing and (iii) no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect; and (d) agrees that from and after the First Amendment Effective Date each reference to the Credit Agreement in the Guaranty and the other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this First Amendment.

5.3    Counterparts.  This First Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this First Amendment by telecopy, facsimile or other electronic means shall be effective as delivery of a manually executed counterpart hereof.

5.4    No Oral Agreement.  This First Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties.
5.5    GOVERNING LAW.  THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
5.6    Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this First Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
5.7    Severability.  Any provision of this First Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
5.8    Successors and Assigns.  This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
[SIGNATURES BEGIN NEXT PAGE]

Page 4

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed as of the date first written above.

	
					
	BORROWER:
	LEGACY RESERVES LP
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	Legacy Reserves GP, LLC
	 

	 
	 
	 
	its general partner
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Steven H. Pruett
	 

	 
	 
	 
	Steven H. Pruett
	 

	 
	 
	 
	President, Chief Financial Officer and Secretary
	 

	 
	 
	 
	 
	 

	GUARANTORS:
	LEGACY RESERVES OPERATING LP
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	Legacy Reserves Operating GP LLC, its general partner
	 

	 
	 
	By:
	Legacy Reserves LP, its sole member
	 

	 
	 
	By:
	Legacy Reserves GP, LLC, its general partner
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Steven H. Pruett
	 

	 
	 
	 
	Steven H. Pruett
	 

	 
	 
	 
	President, Chief Financial Officer and Secretary
	 

	 
	 
	 
	 
	 

	 
	LEGACY RESERVES OPERATING GP LLC
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	Legacy Reserves LP, its sole member
	 

	 
	 
	By:
	Legacy Reserves GP, LLC, its general partner
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Steven H. Pruett
	 

	 
	 
	 
	Steven H. Pruett
	 

	 
	 
	 
	President, Chief Financial Officer and Secretary
	 

SIGNATURE PAGE
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	
					
	 
	LEGACY RESERVES SERVICES, INC.
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Steven H. Pruett
	 

	 
	 
	 
	Steven H. Pruett
	 

	 
	 
	 
	President, Chief Financial Officer and Secretary
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

    

SIGNATURE PAGE
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	
					
	ADMINISTRATIVE AGENT:
	BNP PARIBAS,
	 

	 
	as Administrative Agent and a Lender
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Brian Malone
	 

	 
	 
	 
	Brian Malone
	 

	 
	 
	 
	Managing Director
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Betsy Jocher
	 

	 
	 
	 
	Betsy Jocher
	 

	 
	 
	 
	Director
	 

SIGNATURE PAGE
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	
					
	LENDERS:
	WELLS FARGO BANK, N.A.
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David C. Brooks
	 

	 
	 
	 
	David C. Brooks
	 

	 
	 
	 
	Director
	 

	 
	 
	 
	 
	 

	 
	COMPASS BANK
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Kathleen J. Bowen
	 

	 
	 
	 
	Kathleen J. Bowen
	 

	 
	 
	 
	Senior Vice President
	 

	 
	 
	 
	 
	 

	 
	BANK OF AMERICA, N.A.
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Jeffrey H. Rathkamp
	 

	 
	 
	 
	Jeffrey H. Rathkamp
	 

	 
	 
	 
	Managing Director
	 

	 
	 
	 
	 
	 

	 
	THE BANK OF NOVA SCOTIA
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Keith Buchanan
	 

	 
	 
	 
	Keith Buchanan
	 

	 
	 
	 
	Managing Director
	 

	 
	 
	 
	 
	 

	 
	ROYAL BANK OF CANADA
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Don J. McKinnerney
	 

	 
	 
	 
	Don J. McKinnerney
	 

	 
	 
	 
	Authorized Signatory
	 

SIGNATURE PAGE
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	
					
	 
	U.S. BANK NATIONAL ASSOCIATION
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Bruce E. Hernandez
	 

	 
	 
	 
	Bruce E. Hernandez
	 

	 
	 
	 
	Vice President
	 

	 
	 
	 
	 
	 

	 
	KEYBANK, N.A.
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David Morris
	 

	 
	 
	 
	David Morris
	 

	 
	 
	 
	Vice President
	 

	 
	 
	 
	 
	 

	 
	WEST TEXAS NATIONAL BANK
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Chris L. Whigham
	 

	 
	 
	 
	Chris L. Whigham
	 

	 
	 
	 
	Senior Vice President
	 

	 
	 
	 
	 
	 

	 
	SOCIETE GENERALE
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ David M. Bornstein
	 

	 
	 
	 
	David M. Bornstein
	 

	 
	 
	 
	Director
	 

	 
	 
	 
	 
	 

	 
	UNION BANK, N.A.
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Lara Sorokolit
	 

	 
	 
	 
	Lara Sorokolit
	 

	 
	 
	 
	Assistant Vice President
	 

SIGNATURE PAGE
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

	
					
	 
	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Mark A. Roche
	 

	 
	 
	 
	Mark A. Roche
	 

	 
	 
	 
	Managing Director
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Sharada Manne
	 

	 
	 
	 
	Sharada Manne
	 

	 
	 
	 
	Director
	 

	 
	 
	 
	 
	 

	 
	UBS AG, STAMFORD BRANCH
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Irja R. Otsa
	 

	 
	 
	 
	Irja R. Otsa
	 

	 
	 
	 
	Associate Director
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Mary E. Evans
	 

	 
	 
	 
	Mary E. Evans
	 

	 
	 
	 
	Associate Director
	 

SIGNATURE PAGE
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

Title:Annex I

ANNEX I
LIST OF MAXIMUM CREDIT AMOUNTS
Aggregate Maximum Credit Amounts 
	
			
	Name of Lender
	Applicable Percentage
	Maximum Credit Amount

	BNP Paribas
	10.91%
	$109,090,909.00

	Wells Fargo Bank, N.A.
	10%
	$100,000,000.00

	Compass Bank
	10%
	$100,000,000.00

	UBS AG, Stamford Branch
	10%
	$100,000,000.00

	U.S. Bank National Association
	10%
	$100,000,000.00

	Bank of America, N.A.
	8.18%
	$81,818,182.00

	Royal Bank of Canada
	7.27%
	$72,727,273.00

	The Bank of Nova Scotia
	6.91%
	$69,090,909.00

	Credit Agricole Corporate and Investment Bank
	6.91%
	$69,090,909.00

	Union Bank, N.A.
	6.91%
	$69,090,909.00

	KeyBank N.A.
	6.91%
	$69,090,909.00

	Societe Generale
	4.55%
	$45,454,545.00

	West Texas National Bank
	1.45%
	$14,545,455.00

	TOTAL
	100%
	$1,000,000,000.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]