Document:

Form of Common Share Purchase Warrant

    Exhibit
      4.2

     

    COMMON
      SHARE PURCHASE WARRANT

     

    To
      Purchase [__________] Common Shares of 

     

    ALTAIR
      NANOTECHNOLOGIES INC.

     

    Date
      of
      Issuance: December 18, 2006

     

    This
      Common Share Purchase Warrant (this “Warrant”)
      certifies that, for value received, [___________] (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof and
      on
      or prior to the close of business on the first anniversary of the Date of
      Issuance (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Altair Nanotechnologies
      Inc.,
      a corporation continued under the Canada Business Corporations Act (the
“Company”),
      up to
      [_____________] shares (the “Warrant
      Shares”)
      of the
      Company’s common shares, without nominal or par value (the “Common
      Shares”).
      The
      purchase price of one Common Share (the “Exercise
      Price”)
      under
      this Warrant shall be US$2.70. Capitalized terms used and not otherwise defined
      herein shall have the meanings set forth in that certain Subscription Agreement
      (the “Subscription
      Agreement”),
      dated
      as of December 13, 2006 between the Company and the Investor. This Warrant
      is
      one of a series of warrants issued as of the date hereof (the “Warrants”)
      pursuant to subscription agreements substantially the same as the Subscription
      Agreement (the “Subscription
      Agreements”).
      

     

    1. Title
      to Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable laws and
      to
      the conditions set forth in Section
      7
      hereof,
      this Warrant and all rights hereunder are transferable, in whole or in part,
      at
      the office or agency of the Company by the Holder in person or by duly
      authorized attorney, upon surrender of this Warrant together with the Assignment
      Form annexed hereto properly endorsed. 

     

    2. Authorization
      of Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges in
      respect of the issue thereof (other than taxes in respect of any transfer
      occurring contemporaneously with such issue). 

     

    3. Exercise
      of Warrant; Cashless Exercise.
      

     

    (a) Except
      as
      provided elsewhere herein, exercise of the purchase rights represented by this
      Warrant may be made at any time or times on or after the Date of Issuance (each,
      the “Exercise
      Date”)
      until
      5:00 p.m. (New York City time) on the Termination Date by delivery of the Notice
      of Exercise Form annexed hereto (the “Warrant
      Exercise Document”)
      duly
      executed, at the office of the Company (or such other office or agency of the
      Company as it may designate by notice in writing to the registered Holder at
      the
      address of such Holder appearing on the books of the Company) and upon payment
      of the Exercise Price (which may take the form of a “cashless exercise” if so
      indicated in the Warrant Exercise Document only if a “cashless exercise” may
      occur at such time pursuant to Section 3(c) below) of the shares thereby
      purchased by wire transfer or cashier’s check drawn on a United States bank.
      Upon exercise of this Warrant, the Company shall promptly (but in no event
      later
      than three trading days after the Exercise Date) issue or cause to be issued
      and
      cause to be delivered to or upon the written order of the Holder and in such
      name or names as the Holder may designate, a certificate for the Warrant Shares
      issuable upon such exercise, free of restrictive legends. The Holder, or any
      Person so designated by the Holder to receive Warrant Shares, shall be deemed
      to
      have become holder of record of such Warrant Shares as of the Exercise Date.
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) If
      this
      Warrant shall have been exercised in part, the Company shall, at the time of
      delivery of the certificate or certificates representing Warrant Shares, deliver
      to Holder a new Warrant evidencing the rights of Holder to purchase the
      unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
      in all other respects be identical with this Warrant. 

     

    (c) The
      Holder shall pay the Exercise Price in immediately available funds; provided,
      however, that if at any time from the date hereof through the Termination Date,
      a Registration Statement permitting the resale of the Warrant Shares is not
      effective on the Exercise Date, the Holder may satisfy its obligation to pay
      the
      Exercise Price through a “cashless exercise,” in which event the Company shall
      issue to the Holder the number of Warrant Shares determined as
      follows:

     

    
      	 	
              X
                =
                Y [(A-B)/A]

            
	
              where:

            	 
	 	
              X
                =
                the number of Warrant Shares to be issued to the
                Holder.

            
	 	 
	 	
              Y
                =
                the number of Warrant Shares with respect to which this Warrant is
                being
                exercised.

            
	 	 
	 	
              A
                =
                the average of the closing prices reported on the Nasdaq Capital
                Market
                for the five trading days immediately prior to (but not including)
                the
                Exercise Date.

            
	 	 
	 	
              B
                =
                the Exercise Price.

            

    

    

     

    For
      purposes of Rule 144 promulgated under the Securities Act, it is intended,
      understood and acknowledged that the Warrant Shares issued in a cashless
      exercise transaction shall be deemed to have been acquired by the Holder, and
      the holding period for the Warrant Shares shall be deemed to have commenced,
      on
      the date this Warrant was originally issued pursuant to the Purchase
      Agreement.

     

    4. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share, which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall pay
      a
      cash adjustment in respect of such final fraction in an amount equal to such
      fraction multiplied by the Exercise Price. 

     

    5. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided, however,
      that in the event certificates for Warrant Shares are to be issued in a name
      other than the name of the Holder, this Warrant when surrendered for exercise
      shall be accompanied by the Assignment Form attached hereto duly executed by
      the
      Holder; and the Company may require, as a condition thereto, the payment of
      a
      sum sufficient to reimburse it for any transfer tax incidental thereto. For
      avoidance of doubt, it is understood that taxes based upon income are not
      incidental to the issuance of such certificates and shall be the responsibility
      of the Holder. 

    
      
        
        

      

      
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    6. Closing
      of Books.
      The
      Company will not close its shareholder books or records in any manner, which
      prevents the timely exercise of this Warrant, pursuant to the terms hereof.
      

     

    7. Transfer,
      Division and Combination.
       

     

    (a) Subject
      to compliance with any applicable securities laws and the conditions set forth
      in Sections
      1
      and
7(d)
      hereof,
      this Warrant and all rights hereunder are transferable, in whole or in part,
      upon surrender of this Warrant at the principal office of the Company, together
      with a written assignment of this Warrant substantially in the form attached
      hereto duly executed by the Holder or its agent or attorney and funds sufficient
      to pay any transfer taxes payable upon the making of such transfer. Upon such
      surrender and, if required, such payment, the Company shall execute and deliver
      a new Warrant or Warrants in the name of the assignee or assignees and in the
      denomination or denominations specified in such instrument of assignment, and
      shall issue to the assignor a new Warrant evidencing the portion of this Warrant
      not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if
      properly assigned, may be exercised by a new holder for the purchase of Warrant
      Shares without having a new Warrant issued. 

     

    (b) This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
Section
      7(a),
      as to
      any transfer which may be involved in such division or combination, the Company
      shall execute and deliver a new Warrant or Warrants in exchange for the Warrant
      or Warrants to be divided or combined in accordance with such notice.

     

    (c) The
      Company shall prepare, issue and deliver at its own expense (other than transfer
      taxes) the new Warrant or Warrants under this Section
      7.
      

     

    (d) The
      Company agrees to maintain, at its aforesaid office, books for the registration
      and the registration of transfer of the Warrants. 

     

    8. No
      Rights as Shareholder until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof. Upon the surrender
      of
      this Warrant and the payment of the aggregate Exercise Price, the Warrant Shares
      so purchased shall be and be deemed to be issued to such Holder as the record
      owner of such shares as of the close of business on the later of the date of
      such surrender or payment. 

     

    9. Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any share certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of an affidavit of loss and indemnity or security
      reasonably satisfactory to it (which, in the case of the Warrant, shall not
      include the posting of any bond), and upon surrender and cancellation of such
      Warrant or share certificate, if mutilated, the Company will make and deliver
      a
      new Warrant or share certificate of like tenor and dated as of such
      cancellation, in lieu of such Warrant or share certificate. 

    
      
        
        

      

      
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    10. Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall be a date on which the New York Stock
      Exchange is not open for ordinary trading (a “Weekend
      or Holiday”),
      then
      such action may be taken or such right may be exercised on the next succeeding
      day not a Weekend or Holiday. 

     

    11. Adjustments
      of Exercise Price and Number of Warrant Shares.
      The
      number and kind of securities purchasable upon the exercise of this Warrant
      and
      the Exercise Price shall be subject to adjustment from time to time upon the
      happening of any of the following. In case the Company shall (i) pay a
      dividend in Common Shares or make a distribution in Common Shares to holders
      of
      its outstanding Common Shares, (ii) subdivide its outstanding Common Shares
      into a greater number of shares, (iii) combine its outstanding Common
      Shares into a smaller number of Common Shares, or (iv) issue any capital
      shares in a reclassification of the Common Shares, then the number of Warrant
      Shares purchasable upon exercise of this Warrant immediately prior thereto
      shall
      be adjusted so that the Holder shall be entitled to receive the kind and number
      of Warrant Shares or other securities of the Company which it would have owned
      or have been entitled to receive had such Warrant been exercised in advance
      thereof. Upon each such adjustment of the kind and number of Warrant Shares
      or
      other securities of the Company which are purchasable hereunder, the Holder
      shall thereafter be entitled to purchase the number of Warrant Shares or other
      securities resulting from such adjustment at an Exercise Price per Warrant
      Share
      or other security obtained by multiplying the Exercise Price in effect
      immediately prior to such adjustment by the number of Warrant Shares purchasable
      pursuant hereto immediately prior to such adjustment, and dividing such product
      by the number of Warrant Shares or other securities of the Company resulting
      from such adjustment. An adjustment made pursuant to this paragraph shall become
      effective immediately after the effective date of such event retroactive to
      the
      record date, if any, for such event. 

     

    12. Reorganization,
      Reclassification, Merger, Consolidation or Disposition of Assets.
      In case
      the Company shall reorganize its capital, reclassify its capital shares,
      consolidate or merge with or into another corporation (where the Company is
      not
      the surviving corporation or where there is a change in or distribution with
      respect to the Common Shares of the Company), or sell, transfer or otherwise
      dispose of all or substantially all its property, assets or business to another
      corporation and, pursuant to the terms of such reorganization, reclassification,
      merger, consolidation or disposition of assets, common stock of the successor
      or
      acquiring corporation, or any cash, shares or other securities or property
      of
      any nature whatsoever (including warrants or other subscription or purchase
      rights) in addition to or in lieu of common stock of the successor or acquiring
      corporation (“Other
      Property”),
      are
      to be received by or distributed to the holders of Common Shares of the Company,
      then the Holder shall have the right thereafter to receive upon exercise of
      this
      Warrant, the number of shares of Common Shares of the successor or acquiring
      corporation or of the Company, if it is the surviving corporation, and Other
      Property receivable upon or as a result of such reorganization,
      reclassification, merger, consolidation or disposition of assets by a Holder
      of
      the number of shares of Common Shares for which this Warrant is exercisable
      immediately prior to such event. In case of any such reorganization,
      reclassification, merger, consolidation or disposition of assets, the successor
      or acquiring corporation (if other than the Company) shall expressly assume
      the
      due and punctual observance and performance of each and every covenant and
      

    
      
        
        

      

      
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    condition
      of this Warrant to be performed and observed by the Company and all the
      obligations and liabilities hereunder, subject to such modifications as may
      be
      deemed appropriate (as determined in good faith by resolution of the Board
      of
      Directors of the Company) in order to provide for adjustments of Warrant Shares
      for which this Warrant is exercisable which shall be as nearly equivalent as
      practicable to the adjustments provided for in this Section
      12.
      For
      purposes of this Section
      12,
“common
      stock of the successor or acquiring corporation” shall include stock of such
      corporation of any class which is not preferred as to dividends or assets over
      any other class of stock of such corporation and which is not subject to
      redemption and shall also include any evidences of indebtedness, or other
      securities which are convertible into or exchangeable for any such stock, either
      immediately or upon the arrival of a specified date or the happening of a
      specified event and any warrants or other rights to subscribe for or purchase
      any such stock. The foregoing provisions of this Section
      12
      shall
      similarly apply to successive reorganizations, reclassifications, mergers,
      consolidations or disposition of assets. 

     

    13. Notice
      of Adjustment.
      Whenever the number of Warrant Shares or number or kind of securities or other
      property purchasable upon the exercise of this Warrant or the Exercise Price
      is
      adjusted, as herein provided, the Company shall promptly give notice thereof
      to
      the Holder, which notice shall state the number of Warrant Shares (and other
      securities or property) purchasable upon the exercise of this Warrant and the
      Exercise Price of such Warrant Shares (and other securities or property) after
      such adjustment, setting forth a brief statement of the facts requiring such
      adjustment and setting forth the computation by which such adjustment was made.
      

     

    14. Notice
      of Corporate Action.
      If at
      any time: (a) the Company shall take a record of the holders of its Common
      Shares for the purpose of entitling them to receive a dividend or other
      distribution, or any right to subscribe for or purchase any evidences of its
      indebtedness, any shares of stock of any class or any other securities or
      property, or to receive any other right, or (b) there shall be any capital
      reorganization of the Company, any reclassification or recapitalization of
      the
      capital stock of the Company or any consolidation or merger of the Company
      with,
      or any sale, transfer or other disposition of all or substantially all the
      property, assets or business of the Company to, another corporation or, (c)
      there shall be a voluntary or involuntary dissolution, liquidation or winding
      up
      of the Company; then, in any one or more of such cases, the Company shall give
      to Holder (i) at least 20 days’ prior written notice of the date on which a
      record date shall be selected for such dividend, distribution or right or for
      determining rights to vote in respect of any such reorganization,
      reclassification, merger, consolidation, sale, transfer, disposition,
      liquidation or winding up, and (ii) in the case of any such reorganization,
      reclassification, merger, consolidation, sale, transfer, disposition,
      dissolution, liquidation or winding up, at least 20 days’ prior written notice
      of the date when the same shall take place. Such notice in accordance with
      the
      foregoing clause also shall specify (i) the date on which any such record is
      to
      be taken for the purpose of such dividend, distribution or right, the date
      on
      which the holders of Common Shares shall be entitled to any such dividend,
      distribution or right, and the amount and character thereof, and (ii) the date
      on which any such reorganization, reclassification, merger, consolidation,
      sale,
      transfer, disposition, dissolution, liquidation or winding up is to take place
      and the time, if any such time is to be fixed, as of which the holders of Common
      Shares shall be entitled to exchange their Warrant Shares for securities or
      other property deliverable upon such disposition, dissolution, liquidation
      or
      winding up. Each such written notice shall be sufficiently given if addressed
      to
      Holder at the last address of Holder appearing on the books of the Company
      and
      delivered in accordance with Section
      18(c).
      

    
      
        
        

      

      
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    15. Authorized
      Shares.
      The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Shares a sufficient number
      of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Principal Market upon which the Common Shares may be listed
      at such time. 

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its articles of
      organization or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount
      payable therefor upon such exercise immediately prior to such increase in par
      value, (b) take all such action as may be necessary or appropriate in order
      that the Company may validly and legally issue fully paid and nonassessable
      Warrant Shares upon the exercise of this Warrant, and (c) use commercially
      reasonable efforts to obtain all such authorizations, exemptions or consents
      from any public regulatory body having jurisdiction thereof as may be necessary
      to enable the Company to perform its obligations under this Warrant.

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof. 

     

    16. Company's
      Failure to Timely Deliver Securities.
      If the
      Company shall fail for any reason or for no reason to issue to the Holder within
      five (5) business days of receipt of written notice from the Holder that it
      has
      delivered the Warrant Exercise Document and exercise price and failed to receive
      shares in exchange therefore, a certificate for the number of Common Shares
      to
      which the Holder is entitled and register such Common Shares on the Company's
      share register or to credit the Holder's balance account with an established
      clearing corporation for which the Company’s Common Shares are eligible, for
      such number of Common Shares to which the Holder is entitled upon the Holder's
      exercise of this Warrant, then, in addition to all other remedies available
      to
      the Holder, the Company shall pay in cash to the Holder on each day after such
      fifth business day that the issuance of such Common Shares is not timely
      effected an amount equal to 1.0% of the product of (A) the sum of the number
      of
      Common Shares not issued to the Holder on a timely basis and to which the Holder
      is entitled and (B) the average of the high and low sales prices reported on
      the
      Nasdaq Capital Market for the Common Shares on the trading day immediately
      preceding the last possible date which the Company could  

    
      
        
        

      

      
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    have
      issued such Common Shares to the Holder without violating Section 3(a). In
      addition to the foregoing, if within five (5) trading days after the Company's
      receipt of the facsimile copy of Warrant Exercise Document the Company shall
      fail to issue and deliver a certificate to the Holder and register such Common
      Shares on the Company's share register or credit the Holder's balance account
      with an established clearing corporation for which the Company’s Common Shares
      are eligible, for the number of Common Shares to which the Holder is entitled
      upon the Holder's exercise hereunder, and if on or after such trading day the
      Holder purchases (in an open market transaction or otherwise) Common Shares
      to
      deliver in satisfaction of a sale by the Holder of Common Shares issuable upon
      such exercise that the Holder anticipated receiving from the Company (a
      "Buy-In"),
      then
      the Company shall, within five (5) business days after the Holder's request
      and
      in the Holder's discretion, either (i) pay cash to the Holder in an amount
      equal
      to the Holder's total purchase price (including brokerage commissions, if any)
      for the Common Shares so purchased (the "Buy-In
      Price"),
      at
      which point the Company's obligation to deliver such certificate (and to issue
      such Common Shares) shall terminate, or (ii) promptly honor its obligation
      to
      deliver to the Holder a certificate or certificates representing such Common
      Shares and pay cash to the Holder in an amount equal to the excess (if any)
      of
      the Buy-In Price over the product of (A) such number of Common Shares, times
      (B)
      the weighted average price on the date of exercise.

     

    17. Limitation
      on Exercise.
      Notwithstanding anything to the contrary contained herein, the number of Common
      Shares that may be acquired by the Holder upon any exercise of this Warrant
      (or
      otherwise in respect hereof) shall be limited to the extent necessary to insure
      that, following such exercise (or other issuance), the total number of Common
      Shares then beneficially owned by such Holder and its Affiliates and any other
      Persons whose beneficial ownership of Common Shares would be aggregated with
      the
      Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed
      4.999% (the “Maximum
      Percentage”)
      of the
      total number of issued and outstanding Common Shares (including for such purpose
      the Common Shares issuable upon such exercise). For such purposes, beneficial
      ownership shall be determined in accordance with Section 13(d) of the Exchange
      Act and the rules and regulations promulgated thereunder. Each delivery of
      an
      Exercise Notice hereunder will constitute a representation by the Holder that
      it
      has evaluated the limitation set forth in this paragraph and determined that
      issuance of the full number of Warrant Shares requested in such Exercise Notice
      is permitted under this paragraph. The Company’s obligation to issue Common
      Shares in excess of the limitation referred to in this Section shall be
      suspended (and shall not terminate or expire notwithstanding any contrary
      provisions hereof) until such time, if any, as such Common Shares may be issued
      in compliance with such limitation, but in no event later than the Expiration
      Date. By written notice to the Company, the Holder may waive the provisions
      of
      this Section or increase or decrease the Maximum Percentage to any other
      percentage specified in such notice, but (i) any such waiver or increase will
      not be effective until the 61st day after such notice is delivered to the
      Company, and (ii) any such waiver or increase or decrease will apply only to
      the
      Holder and not to any other holder of Warrants.

    
      
        
        

      

      
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    18. Miscellaneous.

     

    (a) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be governed by the internal laws of the State of New
      York,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New York or any other jurisdictions) that would cause
      the application of the laws of any jurisdictions other than the State of New
      York. Each party hereby irrevocably submits to the non-exclusive jurisdiction
      of
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan, for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, and
      hereby irrevocably waives, and agrees not to assert in any suit, action or
      proceeding, any claim that it is not personally subject to the jurisdiction
      of
      any such court, that such suit, action or proceeding is brought in an
      inconvenient forum or that the venue of such suit, action or proceeding is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such notices to it
      under
      this Warrant and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. EACH PARTY HEREBY IRREVOCABLY WAIVES
      ANY
      RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
      OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
      WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

     

    (b) Nonwaiver.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding all rights hereunder
      terminate on the Termination Date. 

     

    (c) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Subscription Agreement. 

     

    (d) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant or purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Shares or as a shareholder of the Company, whether
      such liability is asserted by the Company or by creditors of the Company.

     

    (e) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive the defense in any action
      for specific performance that a remedy at law would be adequate. 

     

    (f) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares. 

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (g) Amendment.
      Except
      as provided in Section
      18,
      this
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the holders of Warrants issued under the
      Subscription Agreements representing two-thirds
      of
      the
      Warrant Shares issuable under Warrants then outstanding as of the date such
      consent is sought;
      provided,
      however,
      that
      (i) no such amendment shall adversely affect any Holder differently than it
      affects all other Holders, unless such Holder consents thereto and (ii)
no
      amendment may increase the Exercise Price, decrease the number of shares or
      class of shares obtainable upon exercise of this Warrant or decrease the time
      period in which this Warrant can be exercised without the written consent of
      the
      Holder. 

     

    (h) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant. 

     

    (i) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant. 

     

    (j) Acceptance.
      Receipt
      of this Warrant by the Holder shall constitute acceptance of and agreement
      to
      all of the terms and conditions contained herein. 

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized. 

     

    
      	 	 	 
	 	
              ALTAIR
                NANOTECHNOLOGIES INC.

            
	 
 	 
 	 
 
	Date: December
              18, 2006	By:  	________________________________________________
	 	Name:
	 	Title: 

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

        
        

      

    

    NOTICE
      OF
      EXERCISE

     

    To:
      Altair Nanotechnologies Inc. 

     

    (1) The
      undersigned hereby elects to purchase _________ Warrant Shares of Altair
      Nanotechnologies Inc. pursuant to the terms of the attached Warrant, and tenders
      herewith payment of the exercise price of such Warrant Shares in full, together
      with all applicable transfer taxes, if any. 

     

    (2)  Payment
      shall take the form of lawful money of the United States unless the undersigned
      intends that payment of the Exercise Price shall be made as a “cashless
      exercise” under Section 3(c). 

     

    (3) Please
      issue a
      certificate or certificates representing said Warrant Shares in the name of
      the
undersigned
      or in
      such other name as is specified below: 

     

    _______________________________

     

    The
      Warrant Shares shall be delivered to the following: 

     

    _______________________________

     

    _______________________________

     

    _______________________________

     

    

     

    SIGNATURE
      OF HOLDER

     

    Dated
      as
      of: ___________ ___, 2006

    

     

    _____________________________________________

    HOLDER

    By:
      ____________________________________

    Print
      Name: ______________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT
      FORM

     

    for

     

    Common
      Share Purchase Warrant

    of
      Altair
      Nanotechnologies Inc.

     

    (To
      assign the foregoing Warrant, execute

    this
      form
      and supply required information.

    Do
      not
      use this form to exercise the warrant.)

     

    

     

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to 

    _____________________________________________________________________________________________________________
      whose
      address is 

     

    
      

    

     

    
      
 

     

    Dated:
      ______________________

     

    Holder’s
      Signature: _______________________________

     

    Holder’s
      Address: ________________________________

     

     
      _____________________________________

     

          

    
 

     

    Signature
      Guaranteed: _____________________________

     

     

     

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing Warrant.Form of Subscription Agreement

    
      Exhibit
        10.1

       

      SUBSCRIPTION
        AGREEMENT

       

      Altair
        Nanotechnologies Inc.

      204
        Edison Way

      Reno,
        Nevada 89502-2306

      

      Gentlemen:

      

      The
        undersigned (the “Investor”)
        hereby
        confirms its agreement with you as follows: 

       

      1. This
        Subscription Agreement (this “Agreement”)
        is
        made as of the date set forth below between Altair Nanotechnologies Inc.,
        a
        corporation continued under the Canada Business Corporations Act (the
“Company”),
        and
        the Investor.

       

      2. The
        Company has authorized the sale and issuance to certain investors of up to
        an
        aggregate of 9,259,259 units (the “Units”),
        each
        consisting of (i) one share (the “Share,”
        collectively the “Shares”)
        of its
        common shares, without nominal or par value (the “Common
        Shares”)
        and
        (ii) one warrant (the “Warrant,”
        collectively the “Warrants”)
        to
        purchase 0.25 Common Shares (and the fractional amount being the “Warrant
        Ratio”), subject to adjustment by the Company’s Board of Directors, or a
        committee thereof, for a purchase price of US$2.70 per Unit (the “Purchase
        Price”).
        The
        Shares issuable upon the exercise of the Warrants are referred to herein
        as the
“Warrant
        Shares.”
The
        Warrant Shares, together with the Shares and the Warrants, are referred to
        herein as the “Securities.”
The
        Units will not be represented by a certificate or document, and the Shares
        and
        Warrants constituting the Units shall be immediately separable. 

       

      3. The
        offering and sale of the Units (the “Offering”)
        are
        being made pursuant to (1) an effective Registration Statement on Form S-3
        (File
        No. 333-137099) (including the Prospectus contained therein (the “Base
        Prospectus”),
        the
“Registration
        Statement”)
        filed
        by the Company with the Securities and Exchange Commission (the “Commission”),
        (2)
        if applicable, certain “free writing prospectuses” (as that term is defined in
        Rule 405 under the Securities Act of 1933, as amended), that have or will
        be
        filed with the Commission and delivered to the Investor on or prior to the
        date
        hereof and (3) a Prospectus Supplement (the “Prospectus
        Supplement”
and
        together with the Base Prospectus, the “Prospectus”)
        containing certain supplemental information regarding the Securities and
        terms
        of the Offering that will be filed with the Commission and delivered to the
        Investor (or made available to the Investor by the filing by the Company
        of an
        electronic version thereof with the Commission) along with the Company’s
        counterpart to this Agreement.

       

      4. The
        Company and the Investor agree that the Investor will purchase from the Company
        and the Company will issue and sell to the Investor the Units set forth on
        the
        signature page hereof at the Purchase Price per Unit for the aggregate purchase
        price set forth on the signature page hereof. The Units shall be purchased
        pursuant to the Terms and Conditions for Purchase of Units attached hereto
        as
Annex
        I
        and
        incorporated herein by this reference as if fully set forth herein. The Investor
        acknowledges that the Offering is not being underwritten by the placement
        agent
        (the “Placement
        Agent”)
        named
        in the Prospectus Supplement and that there is no minimum offering
        amount.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5. The
        manner of settlement of the Shares included in the Units purchased by the
        Investor shall be determined by such Investor as follows (check
        one):

       

      
        	
                [____]

              	
                A.

              	
                Delivery
                  by electronic book-entry at CDS Clearing and Depository Services
                  Inc.
                  (“CDS”)
                  registered in the Investor’s name and address as set forth below, and
                  released by Equity Transfer & Trust Company, the Company’s transfer
                  agent (the “Transfer
                  Agent”),
                  to the Investor at the Closing (as
                  defined in Section 3.1 of Annex I hereto).
                  NO
                  LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT
                  BY
                  THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:
                  

              

      

       

      
        	 	 	
                (I)

              	
                DIRECT
                  THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE CREDITED
                  WITH THE
                  SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL AT CUSTODIAN
                  (“DWAC”)
                  INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS
                  WITH THE
                  SHARES, AND

              

      

       

      
        	 	
                (II)

              	
                REMIT
                  BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE PURCHASE
                  PRICE
                  FOR THE UNITS BEING PURCHASED BY THE INVESTOR TO THE FOLLOWING
                  ACCOUNT:

              

      

      

      THE
        CITIBANK PRIVATE BANK

      666
        Fifth
        Avenue, 5th
        Floor

      New
        York,
        NY 10103

      ABA
        #
        021-000-089

      Account
        Name: Thelen Reid Brown Raysman & Steiner, as escrow agent for the account
        of Altair Nanotechnologies Inc.

      Account
        Number: 9970139151

       

      -
        OR
        -

       

      
        	
                [____]

              	
                B.

              	
                Delivery
                  versus payment (“DVP”)
                  through CDS (i.e., the Company shall deliver Shares registered
                  in the
                  Investor’s name and address as set forth below and released by the
                  Transfer Agent to the Investor through CDS at the Closing directly
                  to the
                  account(s) at Cowen and Company, LLC (“Cowen”)
                  identified by the Investor and simultaneously therewith payment
                  shall be
                  made by Cowen by wire transfer to the Company). NO
                  LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THIS AGREEMENT
                  BY
                  THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:
                  

              

      

       

      
        	 	
                (I)

              	
                NOTIFY
                  COWEN OF THE ACCOUNT OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE
                  SHARES
                  BEING PURCHASED BY SUCH INVESTOR, AND 

              

      

       

      
        	 	
                (II)

              	
                CONFIRM
                  THAT THE ACCOUNT OR ACCOUNTS AT COWEN TO BE CREDITED WITH THE SHARES
                  BEING
                  PURCHASED BY THE INVESTOR HAVE A MINIMUM BALANCE EQUAL TO THE AGGREGATE
                  PURCHASE PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR.
                  

              

      

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      IT
        IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER OR
        CONFIRM THE PROPER ACCOUNT BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR
        SETTLEMENT BY WAY OF DWAC OR DVP IN A TIMELY MANNER. IF THE INVESTOR DOES
        NOT
        DELIVER THE AGGREGATE PURCHASE PRICE FOR THE UNITS OR DOES NOT MAKE PROPER
        ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE SHARES AND WARRANTS MAY
        NOT
        BE DELIVERED AT CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM
        THE
        CLOSING ALTOGETHER.

       

      6. The
        executed Warrant shall be delivered in accordance with the terms
        hereof.

       

      7. The
        Investor represents that, except as set forth below, (a) it has had no position,
        office or other material relationship within the past three years with the
        Company or persons known to it to be affiliates of the Company, (b) it is
        not a
        NASD member or an Associated Person (as such term is defined under the NASD
        Membership and Registration Rules Section 1011) as of the Closing, and (c)
        neither the Investor nor any group of Investors (as identified in a public
        filing made with the Commission) of which the Investor is a part in connection
        with the Offering of the Units, acquired, or obtained the right to acquire,
        20%
        or more of the Common Shares (or securities convertible into or exercisable
        for
        Common Shares) or the voting power of the Company on a post-transaction basis.
        Exceptions:

       

      (If
        no
        exceptions, write “none.” If left blank, response will be deemed to be
“none.”)

       

      8. The
        Investor represents that it has received (or otherwise had made available
        to it
        by the filing by the Company of an electronic version thereof with the
        Commission) the final Base Prospectus, dated October 3, 2006, as amended,
        which
        is a part of the Company’s Registration Statement, the documents incorporated by
        reference therein, and any free writing prospectus (collectively, the
“General
        Disclosure Package”),
        prior
        to or in connection with the receipt of this Agreement and the Prospectus
        Supplement (or the filing by the Company of an electronic version thereof
        with
        the Commission) along with the Company’s counterpart to this
        Agreement.

       

      9. No
        offer
        by the Investor to buy Units will be accepted and no part of the Purchase
        Price
        will be delivered to the Company until the Company has accepted such offer
        by
        countersigning a copy of this Agreement, and any such offer may be withdrawn
        or
        revoked by the Investor, without obligation or commitment of any kind, at
        any
        time prior to the Company (or the Placement Agent on behalf of the Company)
        sending (orally, in writing, or by electronic mail) notice of its acceptance
        of
        such offer. An indication of interest will involve no obligation or commitment
        of any kind until this Agreement is accepted and countersigned by or on behalf
        of the Company.

       

      10. The
        Investor represents that, except as set forth below, (a) the Investor is
        domiciled, and has its principal office, at the address identified as the
        address of the Investor on the signature page hereof; (b) the Investor is
        an
“institutional investor” in that it is an entity which is in the business of
        purchasing and selling securities for its own account with net assets in
        excess
        of US$15,000,000 and was not formed for the purpose of purchasing the Units;
        (c)
        the Investor is not domiciled in Canada, is not purchasing the Units for
        the
        account or benefit of any resident of any province or territory of Canada
        and is
        not purchasing the Units with a view to resale into Canada of the Units,
        the
        Shares or the Warrant Shares; and (d) the Units were not offered to the investor
        in Canada, and this Agreement was not received or executed in
        Canada.

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

      Exceptions:

       

       

        
          

        

      

      (If
        no
        exceptions, write “none.” If left blank, response will be deemed to be
“none.”)

       

       

      

       

      Note:
        Pursuant to the instructions provided by Investor on Exhibit
        A
        to Annex I attached hereto, at the Closing (as defined in Section 3.1 of
        Annex
        I), (i) the Transfer Agent shall settle the Shares via CDS through the
        Investor’s broker-dealer’s Canadian clearing agent by DWAC (or through Cowen’s
        Canadian clearing agent where such Investor has elected to settle by DVP);
        and
        (ii) such Investor’s Canadian clearing agent shall further transfer such Shares
        to the Investor’s broker-dealer’s clearing agent in the United States via DTC.

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      Number
        of
        Units:  ____________________________

       

      Purchase
        Price Per Units: US$ ___________________

       

      Aggregate
        Purchase Price: US$__________________

      

       

      Please
        confirm that the foregoing correctly sets forth the agreement between us
        by
        signing in the space provided below for that purpose.

      

       

      Dated
        as
        of:  December __, 2006

       

      

      ____________________________________________

      INVESTOR

       

      By:
        ___________________________________

      Print
        Name: _____________________________

      Title:
        __________________________________

      Address:_______________________________

       ____________________________________________

       

       

      

      

      Agreed
        and Accepted

      this
        ___
        day of December, 2006:

      

       

      ALTAIR
        NANOTECHNOLOGIES INC.

       

      

      By:________________________________

      Title:

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      ANNEX
        I

       

      TERMS
        AND CONDITIONS FOR PURCHASE OF UNITS

       

      1. Authorization
        and Sale of the Units. Subject to the terms and conditions of this Agreement,
        the Company has authorized the sale of the Units, which consist of the Shares
        and the Warrants.

       

      2. Agreement
        to Sell and Purchase the Units; Placement Agent.

       

      2.1 At
        the
        Closing, the Company will sell to the Investor, and the Investor will purchase
        from the Company, upon the terms and conditions set forth herein, the number
        of
        Units set forth on the last page of the Agreement to which these Terms and
        Conditions for Purchase of Units are attached as Annex
        I
        (the
“Signature
        Page”)
        for
        the aggregate purchase price therefor set forth on the Signature
        Page.

       

      2.2 The
        Company proposes to enter into substantially this same form of Subscription
        Agreement with certain other investors (the “Other
        Investors”)
        and
        expects to complete sales of Units to them. The Investor and the Other Investors
        are hereinafter sometimes collectively referred to as the “Investors,”
and
        this Agreement and the Subscription Agreements executed by the Other Investors
        are hereinafter sometimes collectively referred to as the “Agreements.” 

      

      2.3 Investor
        acknowledges that the Company has agreed to pay Cowen and Company, LLC
        (“Cowen”
or
        the
“Placement
        Agent”)
        a fee
        (the “Placement
        Fee”)
        in
        respect of the sale of Units to the Investor.

      

      2.4 The
        Company has entered into a Placement Agent Agreement, dated December 13,
        2006
        (the “Placement
        Agreement”),
        with
        the Placement Agent that contains certain representations, warranties, covenants
        and agreements of the Company that may be relied upon by the Investor, which
        shall be a third party beneficiary thereof. 

      

      3. Closings
        and Delivery of the Units and Funds. 

       

      3.1 Closing.
        The
        completion of the purchase and sale of the Units (the “Closing”)
        shall
        occur at a place and time (the “Closing
        Date”)
        to be
        specified by the Company and the Placement Agent, and of which the Investors
        will be notified in advance by the Placement Agent, in accordance with Rule
        15c6-1 promulgated under the Securities Exchange Act of 1934, as amended
        (the
“Exchange
        Act”).
        At
        the Closing, (a) the Company shall cause the Transfer Agent to deliver to
        the
        Investor the number of Shares equal to the number of Units set forth on the
        Signature Page registered in the name of the Investor or, if so indicated
        on the
        Investor Questionnaire attached hereto as Exhibit A, in the name of a nominee
        designated by the Investor, (b) the Company shall cause to be placed with
        an
        express courier for delivery to the Investor a Warrant to purchase a number
        of
        whole Warrant Shares determined by multiplying the number of Shares (and
        Units)
        set forth on the signature page by the Warrant Ratio and rounding down to
        the
        nearest whole number and (c) the aggregate purchase price for the Units being
        purchased by the Investor will be delivered by or on behalf of the Investor
        to
        the Company. 

      
        
          
          

        

        
          Annex
            I-1

          
            

          

        

        
          
          

        

      

      3.2 Conditions
        to the Company’s Obligations.
        (a)
        The
        Company’s obligation to issue and sell the Units to the Investor shall be
        subject to: (i) the receipt by the Company of the purchase price for the
        Units
        being purchased hereunder as set forth on the Signature Page and (ii) the
        accuracy of the representations and warranties made by the Investor and the
        fulfillment of those undertakings of the Investor to be fulfilled prior to
        the
        Closing Date.

      

      (b) Conditions
        to the Investor’s Obligations.
        The
        Investor’s obligation to purchase the Units will be subject to the accuracy of
        the representations and warranties made by the Company and the fulfillment
        of
        those undertakings of the Company to be fulfilled prior to the Closing Date,
        including without limitation, those contained in the Placement Agreement,
        and to
        the condition that the Placement Agent shall not have: (a) terminated the
        Placement Agreement pursuant to the terms thereof or (b) determined that
        the
        conditions to the closing in the Placement Agreement have not been satisfied.
        The Investor’s obligations are expressly not conditioned on the purchase by any
        or all of the Other Investors of the Units that they have agreed to purchase
        from the Company.

      

      3.3 Delivery
        of Funds. 

      

      (a) Delivery
        by Electronic Book-Entry at CDS Clearing and Depository Services Inc.
        (“CDS”).
        If the
        Investor elects to settle the Shares purchased by such Investor through delivery
        by electronic book-entry at CDS, no
        later than one (1) business day after the execution of this Agreement by
        the
        Investor and the Company,
        the
        Investor shall remit by wire transfer the amount of funds equal to the aggregate
        purchase price for the Units being purchased by the Investor to the following
        account designated by the Company and the Placement Agent pursuant to the
        terms
        of that certain Escrow Agreement (the “Escrow
        Agreement”)
        dated
        as of December 13, 2006, by and among the Company, the Placement Agent and
        Thelen Reid Brown Raysman & Steiner LLP (the “Escrow
        Agent”):

      

      THE
        CITIBANK PRIVATE BANK

      666
        Fifth
        Avenue, 5th
        Floor

      New
        York,
        NY 10103

      ABA
        #
        021-000-089

      Account
        Name: Thelen Reid Brown Raysman & Steiner, as escrow agent for the account
        of Altair Nanotechnologies Inc.

      Account
        Number: 9970139151

      

      Such
        funds shall be held in escrow until the Closing and delivered by the Escrow
        Agent on behalf of the Investors to the Company upon the satisfaction, in
        the
        sole judgment of the Placement Agent, of the conditions set forth in
Section
        3.2(b)
        hereof.
        The Placement Agent shall have no rights in or to any of the escrowed funds,
        unless the Placement Agent and the Escrow Agent are notified in writing by
        the
        Company in connection with the Closing that a portion of the escrowed funds
        shall be applied to the Placement Fee. The
        Company and the Investor agree to indemnify and hold the Escrow Agent harmless
        from and against any and all losses, costs, damages, expenses and claims
        (including, without limitation, court costs and reasonable attorneys fees)
        (“Losses”)
        arising under this Section
        3.3
        or
        otherwise with respect to the funds held in escrow pursuant hereto or arising
        under the Escrow Agreement, unless it is finally determined that such Losses
        resulted directly from the willful misconduct or gross negligence of the
        Escrow
        Agent. Anything in this Agreement to the contrary notwithstanding, in no
        event
        shall the Escrow Agent be liable for any special, indirect or consequential
        loss
        or damage of any kind whatsoever (including but not limited to lost profits),
        even if the Escrow Agent has been advised of the likelihood of such loss
        or
        damage and regardless of the form of action.

       

      
        
          
          

        

        
          Annex
            I-2

          
            

          

        

        
          
          

        

      

      Investor
        shall also furnish to the Placement Agent a completed W-9 form (or, in the
        case
        of an Investor who is not a United States citizen or resident, a W-8
        form).

      

      Investor
        acknowledges that the Escrow Agent acts as counsel to the Placement Agent,
        and
        shall have the right to continue to represent the Placement Agent, in any
        action, proceeding, claim, litigation, dispute, arbitration or negotiation
        in
        connection with the Offering, and Investor hereby consents thereto and waives
        any objection to the continued representation of the Placement Agent by the
        Escrow Agent in connection therewith based upon the services of the Escrow
        Agent
        under the Escrow Agreement, without waiving any duty or obligation the Escrow
        Agent may have to any other person.

      

      (b) Delivery
        Versus Payment through CDS Clearing and Depository Services Inc.
        If the
        Investor elects to settle the Shares purchased by such Investor by delivery
        versus payment through CDS, no
        later than one (1) business day after the execution of this Agreement by
        the
        Investor and the Company,
        the
        Investor shall confirm that the account or accounts at Cowen to be credited
        with
        the Shares being purchased by the Investor have a minimum balance equal to
        the
        aggregate purchase price for the Units being purchased by the Investor.

      

      3.4 Delivery
        of Shares. 

      

      (a) Delivery
        by Electronic Book-Entry at CDS Clearing and Depository Services
        Inc.
        If the
        Investor elects to settle the Shares purchased by such Investor through delivery
        by electronic book-entry through CDS, no
        later than one (1) business day after the execution of this Agreement by
        the
        Investor and the Company,
        the
        Investor shall direct the broker-dealer at which the account or accounts
        to be
        credited with the Shares being purchased by such Investor are maintained,
        which
        broker/dealer shall be a CDS and DTC participant, to set up a Deposit/Withdrawal
        at Custodian (“DWAC”)
        instructing Equity Transfer & Trust Company, the Company’s transfer agent,
        to credit such account or accounts with the Shares by means of an electronic
        book-entry delivery. Such DWAC shall indicate the settlement date for the
        deposit of the Shares, which date shall be provided to the Investor by the
        Placement Agent. Simultaneously with the delivery to the Company by the Escrow
        Agent of the funds held in escrow pursuant to Section
        3.3
        above,
        the Company shall direct its transfer agent to credit the Investor’s account or
        accounts with the Shares pursuant to the information contained in the DWAC.
        

      

      (b) Delivery
        Versus Payment through CDS Clearing and Depository Services Inc.
        If the
        Investor elects to settle the Shares purchased by such Investor by delivery
        versus payment through CDS, no
        later than one (1) business day after the execution of this Agreement by
        the
        Investor and the Company,
        the
        Investor shall notify Cowen of the account or accounts at Cowen to be credited
        with the Shares being purchased by such Investor. On the Closing Date, the
        Company shall deliver the Shares to the Investor through CDS directly to
        the
        account or accounts at Cowen identified by Investor and simultaneously therewith
        payment shall be made by Cowen by wire transfer to the Company.

      
        
          
          

        

        
          Annex
            I-3

          
            

          

        

        
          
          

        

      

      
         

        4. Representations,
          Warranties and Covenants of the Investor.

         

        The
          Investor represents and warrants to, and agrees with, the Company and the
          Placement Agent that:

         

      

      4.1 The
        Investor (a) is knowledgeable, sophisticated and experienced in making, and
        is
        qualified to make decisions with respect to, investments in shares presenting
        an
        investment decision like that involved in the purchase of the Units, including
        investments in securities issued by the Company and investments in comparable
        companies, (b) has answered all questions on the Signature Page and the Investor
        Questionnaire and the answers thereto are true and correct as of the date
        hereof
        and will be true and correct as of the Closing Date and (c) in connection
        with
        its decision to purchase the number of Units set forth on the Signature Page,
        has received and is relying solely upon the General Disclosure Package and
        the
        documents incorporated by reference therein.

       

      4.2 The
        Investor acknowledges that (a) no action has been or will be taken in any
        jurisdiction outside the United States by the Company or the Placement Agent
        that would permit an offering of the Units, or possession or distribution
        of
        offering materials in connection with the issue of the Securities in any
        jurisdiction outside the United States where action for that purpose is
        required, (b) if the Investor is outside the United States, it will comply
        with
        all applicable laws and regulations in each foreign jurisdiction in which
        it
        purchases, offers, sells or delivers Securities or has in its possession
        or
        distributes any offering material, in all cases at its own expense and (c)
        the
        Placement Agent is not authorized to make and has not made any representation,
        disclosure or use of any information in connection with the issue, placement,
        purchase and sale of the Units, except as set forth or incorporated by reference
        in the Base Prospectus or the Prospectus Supplement.

       

      4.3 The
        Investor acknowledges that (a) the Investor has full right, power, authority
        and
        capacity to enter into this Agreement and to consummate the transactions
        contemplated hereby and has taken all necessary action to authorize the
        execution, delivery and performance of this Agreement, and (b) this Agreement
        constitutes a valid and binding obligation of the Investor enforceable against
        the Investor in accordance with its terms, except as enforceability may be
        limited by applicable bankruptcy, insolvency, reorganization, moratorium
        or
        similar laws affecting creditors’ and contracting parties’ rights generally and
        except as enforceability may be subject to general principles of equity
        (regardless of whether such enforceability is considered in a proceeding
        in
        equity or at law) and except as to the enforceability of any rights to
        indemnification or contribution that may be violative of the public policy
        underlying any law, rule or regulation (including any federal or state
        securities law, rule or regulation).

       

      4.4 The
        Investor understands that nothing in this Agreement, the Prospectus or any
        other
        materials presented to the Investor in connection with the purchase and sale
        of
        the Units constitutes legal, tax or investment advice. The Investor has
        consulted such legal, tax and investment advisors as it, in its sole discretion,
        has deemed necessary or appropriate in connection with its purchase of
        Units.

       

      4.5 Since
        the
        earlier to occur of (i) the date on which the Placement Agent first contacted
        such Investor about the Offering and (ii) the date that is the tenth
        (10th)
        trading
        day prior to the date of this Agreement, it has not engaged in any transactions
        in the securities of the Company (including, without limitation, any Short
        Sales
        (as defined below) involving the Company’s securities). Each Investor covenants
        that it will not engage in any transactions in the securities of the Company
        (including Short Sales) prior to the time that the transactions contemplated
        by
        this Agreement are publicly disclosed. Each Investor agrees that it will
        not use
        any of the Securities acquired pursuant to this Agreement to cover any short
        position in the Common Shares if doing so would be in violation of applicable
        securities laws. For purposes hereof, “Short Sales” include, without limitation,
        all “short sales” as defined in Rule 200 promulgated under Regulation SHO under
        the Exchange Act, whether or not against the box, and all types of direct
        and
        indirect stock pledges, forward sales contracts, options, puts, calls, short
        sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the
        Exchange Act) and similar arrangements (including on a total return basis),
        and
        sales and other transactions through non-US broker-dealers or foreign regulated
        brokers.

      
        
          
          

        

        
          Annex
            I-4

          
            

          

        

        
          
          

        

      

      5. Survival
        of Representations, Warranties and Agreements; Third Party Beneficiary.
Notwithstanding
        any investigation made by any party to this Agreement or by the Placement
        Agent,
        all covenants, agreements, representations and warranties made by the Company
        and the Investor herein will survive the execution of this Agreement, the
        delivery to the Investor of the Units being purchased and the payment therefor.
        The Placement Agent shall be a third party beneficiary with respect to the
        representations, warranties and agreements of the Investor in Section
        4
        hereof.

       

      6. Notices.
        All
        notices, requests, consents and other communications hereunder will be in
        writing, will be mailed (a) if within the domestic United States by first-class
        registered or certified airmail, or nationally recognized overnight express
        courier, postage prepaid, or by facsimile or (b) if delivered from outside
        the
        United States, by International Federal Express or facsimile, and will be
        deemed
        given (i) if delivered by first-class registered or certified mail domestic,
        three business days after so mailed, (ii) if delivered by nationally recognized
        overnight carrier, one business day after so mailed, (iii) if delivered by
        International Federal Express, two business days after so mailed and (iv)
        if
        delivered by facsimile, upon electric confirmation of receipt and will be
        delivered and addressed as follows:

       

      (a)       
        if
        to
        the Company, to:
        

       

      Altair
        Nanotechnologies Inc.

      204
        Edison Way

      Reno,
        Nevada 89502

      Attention:
        Edward Dickinson

      Facsimile:
        775-856-1619

      

       

      with
        copies to:
        

       

      Parr
        Waddoups Brown Gee & Loveless, PC

      185
        South
        State Street, Suite 1300

      Salt
        Lake
        City, Utah 84111

      Attention:
        Bryan Allen

      Facsimile:
        801-532-7750

       

      (b)      
        if
        to the
        Investor, at its address on the Signature Page hereto, or at such other address
        or addresses as may have been furnished to the Company in writing.

       

      7. Changes.
        This
        Agreement may not be modified or amended except pursuant to an instrument
        in
        writing signed by the Company and the Investor.

       

      8. Headings.
        The
        headings of the various sections of this Agreement have been inserted for
        convenience of reference only and will not be deemed to be part of this
        Agreement.

       

      9. Severability.
        In
        case
        any provision contained in this Agreement should be invalid, illegal or
        unenforceable in any respect, the validity, legality and enforceability of
        the
        remaining provisions contained herein will not in any way be affected or
        impaired thereby.

      
        
          
          

        

        
          Annex
            I-5

          
            

          

        

        
          
          

        

      

      10. Governing
        Law. This
        Agreement will be governed by, and construed in accordance with, the internal
        laws of the State of New York, without giving effect to the principles of
        conflicts of law that would require the application of the laws of any other
        jurisdiction.

       

      11. Counterparts.
        This
        Agreement may be executed in two or more counterparts, each of which will
        constitute an original, but all of which, when taken together, will constitute
        but one instrument, and will become effective when one or more counterparts
        have
        been signed by each party hereto and delivered to the other parties. The
        Company
        and the Investor acknowledge and agree that the Company shall deliver its
        counterpart to the Investor along with the Prospectus Supplement (or the
        filing
        by the Company of an electronic version thereof with the Commission).

       

      12. Confirmation
        of Sale.
        The
        Investor acknowledges and agrees that such Investor’s receipt of the Company’s
        counterpart to this Agreement, together with the Prospectus Supplement (or
        the
        filing by the Company of an electronic version thereof with the Commission),
        shall constitute written confirmation of the Company’s sale of Units to such
        Investor.

       

      13. Press
        Release.
        The
        Company and the Investor agree that the Company shall issue a press release
        announcing the Offering prior to the opening of the financial markets in
        New
        York City on the business day immediately after the date hereof.

       

      14. Termination.
        In the
        event that the Placement Agreement is terminated by the Placement Agent pursuant
        to the terms thereof, this Agreement shall terminate without any further
        action
        on the part of the parties hereto.

      
        
          
          

        

        
          Annex
            I-6

          
            

          

        

        
          
          

          
          

        

      

      EXHIIT
        A

       

      ALTAIR
        NANOTECHNOLOGIES INC.

       

      INVESTOR
        QUESTIONNAIRE

       

      Pursuant
        to Section
        3
        of
Annex
        I
        to the
        Agreement, please provide us with the following information:

       

      

        
          	
                  1.

                   

                	
                  The
                    exact name that your Shares are to be registered in. 

                  You
                    may use
                    a nominee name if appropriate:

                   

                	
                   

                  ______________________________________________________ 

                
	
                  2.

                   

                	
                  The
                    relationship between the Investor and the registered 

                  holder
                    listed
                    in response to item 1 above:

                   

                	
                   

                  ______________________________________________________ 

                
	
                  3.

                   

                	
                  The
                    mailing address of the registered holder listed in 

                  response
                    to
                    item 1 above:

                   

                	
                   

                  ______________________________________________________ 

                
	
                  4.

                   

                	
                  The
                    Social Security Number or Tax Identification Number of 

                  the
                    registered holder listed in the response to item 1 above:

                   

                	
                   

                  ______________________________________________________ 

                
	
                  5.
                    

                   

                	
                  Name
                    of CDS Participant (Canadian broker-dealer at which 

                  the
                    account or accounts to be credited with the Shares are

                  maintained):

                   

                	
                   

                   

                  ______________________________________________________ 

                
	
                  6.
                    

                   

                	
                  Contact
                    person and telephone number at CDS broker-dealer 

                  Participant
                    

                   

                	
                   

                  ______________________________________________________ 

                
	
                  7.
                    

                   

                	
                  CDS
                    NCI Deposit Instruction

                   

                	______________________________________________________ 
	
                  8.

                   

                	
                  Name
                    of DTC Participant in (U.S. broker-dealer at which the

                  account
                    or accounts to be further
                    credited with the Shares 

                  are
                    maintained):

                   

                	
                   

                   

                  ______________________________________________________ 

                
	
                  9.

                   

                	
                  DTC
                    Participant Number:

                   

                	______________________________________________________ 
	
                  10.

                   

                	
                  Name
                    of Account at DTC Participant being further
                    credited 

                  with
                    the Shares:

                   

                	
                   

                  ______________________________________________________ 

                
	
                  11.

                   

                	
                  Account
                    Number at DTC Participant being further
                    credited
                    

                  with
                    the Shares:

                   

                	
                   

                  ______________________________________________________ 

                

        

      

       

       

      
        Exhibit
          A-1

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