Document:

China Recycling Energy Corporation: Exhibit 10.6

  

 

REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT, dated as of November 16, 2007 (the “Agreement”) by and between China Recycling Energy Corporation, a Nevada corporation (the “Company”), on the one hand, and  Carlyle Asia Growth Partners III, L.P., a limited partnership organized under the Laws of the Cayman Islands (“CAGP”), and CAGP III Co-Investment, L.P., a limited partnership organized under the Laws of the Cayman Islands (together with CAGP, the “Stockholders”), on the other hand.  

The Agreement is made pursuant to that Stock and Notes Purchase Agreement dated November 16, 2007 (the “Purchase Agreement”) by and among the Company and its subsidiaries and the Stockholders, which provides for, among other things, the issuance and sale of (i) 4,066,706 shares of Common Stock (as defined below) of the Company (the “Purchased Shares”), (ii) a 10% Senior Secured Convertible Note, in the principal amount of US$5,000,000 (the “First Note”), and (iii) a 5% Senior Secured Convertible Note, in the principal amount of US$15,000,000 Company (the “Second Note”, and together with the First Note, the “Notes”).

As an inducement to the Stockholders to enter into the Purchase Agreement, and in satisfaction of one of the conditions to the obligations of the Stockholders thereunder, the Company agrees with the Stockholders as follows:

Section 1.

Definitions.

As used in the Agreement, the following terms shall have the following meanings:

“Affiliate” means, with respect to any Person, any other Person that (a) directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person, (b) is an officer, director, general partner, trustee or manager of such Person, or of a Person described in clause (a) of this sentence, or (c) is a Relative of such specified Person or of an individual described in clause (a) or (b) of this sentence.  As used in this definition, “Relative” means with respect to any individual, (i) such individual’s spouse, (ii) any direct descendent, parent, grandparent, great grandparent or sibling (in each case, whether by blood or adoption) of such individual or such individual’s spouse, and (iii) any spouse of a Person described in clause (ii) of this sentence.

“Business Day” means any day other than a Saturday or Sunday or any day on which banks in the State of New York are required or authorized to be closed.

“Commission” means the Securities and Exchange Commission or any other agency at the time administering the Securities Act.

“Closing Date” has the meaning set forth in the Subscription Agreement.
 

“Common Stock” means the common stock, $0.001 par value per share, of the Company.

“Deemed Underwriter Inspectors” shall have the meaning set forth in Section 3(s).

“Effective Date” shall have the meaning set forth in Section 2(a).

“Effectiveness Date” means, with respect to the Registration Statement required to be filed pursuant to Section 2 hereunder, the earlier of (a) the 120th calendar day following the Filing Date (or 150th calendar day following the Filing Date in the event of a full review by the Commission) and (b) the fifth (5th) Business Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments.

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“Effectiveness Period” shall have the meaning set forth in
Section 2(a).

“Electing Holder” shall have the meaning set forth in Section 3(a).
 

“Electing Holder Questionnaire” shall have the meaning set forth in Section 2(a).
 

“Event” shall have the meaning set forth in Section 2(b).
 

“Event Date” shall have the meaning set forth in Section 2(b).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect from time to time.

“Filing Date” means, with respect to the Registration Statement required to be filed pursuant to Section 2 hereunder, unless such other date is agreed to by the Holders, in its sole discretion, the earlier of (A) the date on which such Registration Statement is deemed to be filed initially with the Commission and (B) (i) the 120th calendar day following the date hereof, or (ii) if the Second or Third Closing (as defined in the Purchase Agreement) has not occurred as of such 120th calendar day, then in respect of the Registrable Shares in respect of the First Note, such 120th calendar day, and in respect of Registrable Shares in respect of the Purchased Shares and/or Second Note, as applicable, as soon as reasonably practicable following the Second Closing and the Third Closing, as applicable, but in no event later than the 30th calendar day after the Third Closing.

“Free Writing Prospectus” means a free writing prospectus as defined in Rule 405 under the Securities Act.

“Holders” means the Stockholders or any transferee of such Registrable Shares and the rights under this Agreement pursuant to Section 10 hereof.  

“Issuer Free Writing Prospectus” means an issuer free writing prospectus as defined in Rule 433 under the Securities Act.

“Permitted Free Writing Prospectus” shall have the meaning set forth in Section 6.

“Person” shall be construed in the broadest sense and means and includes a natural person, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization and any other entity and any federal, state, municipal, foreign or other government, governmental department, commission, board, bureau, agency or instrumentality, or any private or public court or tribunal.

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“Prospectus” means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Shares covered by the Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

“Registrable Shares” means the Restricted Shares purchased by the Holders pursuant to the Purchase Agreement.

“Registration Statement” means, as the context requires,  the registration statement required to be filed pursuant to Section 2 or Section 3 hereunder, including any appplicable Prospectus, amendments and supplements to the registration statement or applicable Prospectus, including pre- and post-effective amendments, and all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statement.

“Restricted Shares” means shares of Common Stock, shares of Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of shares of Common Stock, and shares of Common Stock issuable upon exercise, exchange or conversion of any other securities which by their terms are exercisable or exchangeable for or convertible into Common Stock (including the Notes).  As to any particular Restricted Shares held by a Holders, once issued, such Restricted Shares shall cease to be Restricted Shares when (i) all such shares of Common Stock have been disposed of pursuant to such effective registration statement, (ii) all such shares of Common Stock are eligible to be sold or distributed pursuant to Rule 144(k) in a single transaction by the Holders, or (iii) they shall have ceased to be outstanding.

“Rule 144” means Rule 144 promulgated under the Securities Act or any successor rule thereto or any complementary rule thereto (including, without limitation, Rule 144A).

“Rule 405” means Rule 405 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

“Rule 430A” means Rule 430A promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

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“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect from time to time.

“Holders” has the meaning set forth in the Preamble to this Agreement.

“Purchase Agreement” has the meaning set forth in the Recitals to this Agreement.

“Trading Day” means a day on which the Common Stock is trading on a Trading Market.
 

“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the Nasdaq Capital Market, the American Stock Exchange, the New York Stock Exchange, the Nasdaq Global Market or the OTC Bulletin Board.

Section 2.

Mandatory Registration.

(a)

On or prior to the Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Shares for an offering to be made on a continuous basis pursuant to Rule 415, or if Rule 415 is not available for offers or sales of the Registrable Shares, for such other means of distribution of Registrable Shares as the Holders may specify.  The Registration Statement required hereunder shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Shares on Form S-3, in which case the Registration Statement shall be on another appropriate form in accordance herewith).  The Registration Statement required hereunder shall contain (except if otherwise directed by the Holders) the “Plan of Distribution” attached hereto as Annex A.  The Holders agrees to furnish to the Company a completed questionnaire in the form attached to the Agreement as Annex B (an “Electing Holder Questionnaire”) not less than five (5) Trading Days prior to the applicable Filing Date.  

Subject to Section 2(b), the Company shall use its best efforts to cause the Registration Statement to be declared effective under the Securities Act (unless it becomes effective automatically upon filing) as promptly as possible after the filing thereof (but such effectiveness date shall not be later than the Effectiveness Date), and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act (including the filing of any necessary amendments, post-effective amendments and supplements) until such date when there are no longer any Registrable Shares outstanding (the “Effectiveness Period”).  The Company shall telephonically request effectiveness of the Registration Statement (unless it becomes effective automatically upon filing) as of 5:00 pm Eastern Standard Time on a Trading Day.  The Company shall promptly notify the Holders via facsimile or email of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission (if possible, otherwise as soon as practicable on the following Trading Day), which shall be the date requested for effectiveness of a Registration Statement (the “Effective Date”), unless the Registration Statement becomes automatically effective upon filing, in which case the “Effective Date” shall be the date on which the Registration Statement was filed.  The Company shall, by 9:30 am Eastern Standard Time on the Trading Day immediately after the Effective Date, file a Rule 424(b) prospectus with the Commission.

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(b)

If: (1) the Registration Statement is not filed on or prior to the Filing Date (it being understood that if the Company files the Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 4(c), the Company shall not be deemed to have satisfied Section 2(b)(1)); or (2) the Registration Statement does not become automatically effective or is not declared effective by the Commission on or before the Effectiveness Date or (3) after the Effective Date, a Registration Statement ceases for any reason to remain continuously effective as to all Registrable Shares for which it is required to be effective, or the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Shares in either event for thirty (30) consecutive calendar days during any 12-month period (provided, no suspension period may begin until at least twelve (12) months have passed since any previous suspension period) (any such failure or breach being referred to as an “Event,” and for purposes of Section 2(b)(1) or Section 2(b)(2) the date on which such breach occurs, and for purposes of Section 2(b)(3) the date on which such thirty (30) calendar day period is exceeded, being referred to as an “Event Date”), then in addition to any other rights or remedies the Holders may have hereunder or under applicable law, the Holders shall receive from the Company, on the Event Date and each thirty (30) day anniversary of the Event Date until the applicable Event is cured with respect to each Restricted Share, as liquidated damages and not as a penalty, cash in an amount equal to 1.0% of the purchase price paid for the (x) the Notes then held by the Holders and not yet converted into shares of Common Stock, and (y) shares of Common Stock purchased under the Purchase Price or shares of Common Stock obtained upon conversion of the Notes (or, in each case, a pro rata portion thereof if the period is less than thirty (30) calendar days); provided, however, that in no event shall the aggregate amounts paid as liquidated damages exceed 1.0% in any thirty (30) calendar day period.  For purposes of the preceding sentence, the applicable Event shall be deemed to be cured on: (x) in the case of Section 2(b)(1), the date on which such Registration Statement is filed, (y) in the case of Section 2(b)(2), the date on which such Registration Statement becomes effective and (z) in the case of Section 2(b)(3), the date on which such Registration Statement becomes effective again or any Prospectus becomes usable again, as applicable.  Such payments shall be made to each Investor in cash not later than three (3) Business Days following the Event Date or end of each thirty (30) calendar day period, as applicable.
 

(c)

In the event that, in the reasonable judgment of the Company, it is advisable to suspend use of a Registration Statement or Prospectus therein due to pending material developments or other events that have not yet been publicly disclosed and as to which the Company believes public disclosure would be detrimental to the Company, the Company shall notify the Holders to such effect, and, upon receipt of such notice, the Holders shall immediately discontinue any sales of Registrable Shares pursuant to such Registration Statement and/or Prospectus until the Holders have received copies of a supplemented or amended prospectus or until the holders are advised in writing by the Company that the then current prospectus may be used and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such prospectus.  Notwithstanding anything to the contrary herein, the Company shall not exercise its rights under the preceding sentence to suspend sales of Registrable Shares for a period in excess of sixty (60) consecutive calendar days during any 12-month period; provided, no suspension period may begin until at least twelve (12) months have passed since any previous suspension period.

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(d)

The Holders acknowledge that the SEC has recently given enhanced scrutiny to registration statements attempting to register the resale of shares obtained by purchasers in private placements and that such SEC reviews have resulted in registrants being denied the use of Rule 415(a)(1)(i).  Accordingly, the Holders agree that (i) the Company shall not be obligated to pay any amount of liquidated damages under subsection (b) above in the event a Registration Statement is not declared effective on or prior to the Event Date solely as a result of or in connection with a determination by the SEC that either the Company or the Holders are ineligible to rely on Rule 415(a)(1)(i) under the Securities Act with respect to the registration of any of the Registrable Securities for resale by the Holders on a continuous or delayed basis; provided, that the Company shall thereafter use its commercially reasonable efforts to find alternative methods to register the Registrable Securities with the SEC for resale; and (ii) in the event the Company, after conducting a pre-filing conference with the SEC, if possible, reasonably determines that it is unable to, or it is inadvisable for the Company to attempt to, register all of the Registrable Securities in a single Registration Statement, the Company may elect to fulfill the registration requirements of this Agreement by registering the Registrable Securities in two or more Registration Statements, provided that the Company shall use its best efforts to file each subsequent Registration Statement no later than the earlier of (A) 60 days following the date on which the last of the Registrable Securities registered under the preceding Registration Statement were sold or (B) 6 months following the date on which the preceding Registration Statement was declared effective.

Section 3.

Incidental Registration.

(a)

If at any time from and after the date hereof, the Company proposes to register any of its securities under the Securities Act (other than (A) any registration of public sales or distributions solely by and for the account of the Company of securities issued (x) pursuant to any employee benefit or similar plan or any dividend reinvestment plan, or (y) pursuant to a S-4 registration in connection with the acquisition of the Company, or (B) pursuant to Section 2 hereof), either in connection with a primary offering for cash for the account of the Company or a secondary offering, the Company will, each time it intends to effect such a registration, give written notice to all Holders at least ten (10) but no more than thirty (30) business days prior to the expected initial filing of a Registration Statement with the Commission pertaining thereto, informing such Holders of its intent to file such Registration Statement, the expected filing date, and of the Holders’ rights to request the registration of the Registrable Shares held by such Holder (the “Company Notice”).  Upon the written request of any Holder made within ten (10) business days after any such Company Notice is given (which request shall specify the Registrable Shares intended to be disposed of by such Holder or its transferees and, unless the applicable registration is intended to effect a primary offering of Shares for cash for the account of the Company, the intended method of distribution thereof), the Company will use its reasonable best efforts to effect the registration under the Securities Act of all Registrable Shares which the Company has been so requested to register by such Holders to the extent required to permit the disposition (in accordance with the intended methods of distribution thereof or, in the case of a registration which is intended to effect a primary offering for cash for the account of the Company, in accordance with the Company’s intended method of distribution) of the Registrable Shares so requested to be registered, including, if necessary, by filing with the Commission a post-effective amendment or a supplement to the Registration Statement or the related Prospectus or any document incorporated therein by reference or by filing any other required document or otherwise supplementing or amending the Registration Statement, if required by the rules, regulations or instructions applicable to the registration form used by the Company for such Registration Statement or by the Securities Act, any state securities or blue sky laws, or any rules and regulations thereunder; provided, however, that if, at any time after giving written notice of its intention to register any securities and prior to the effective date of the Incidental Registration Statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to each Holder and, thereupon, (A) in the case of a determination not to register, the Company shall be relieved of its obligation to register any Registrable Shares in connection with such registration (but not from its obligation to pay the Registration Expenses incurred in connection therewith), and (B) in the case of a determination to delay such registration, the Company shall be permitted to delay registration of any Registrable Shares requested to be included in such Registration Statement for the same period as the delay in registering such other securities.  The registration rights granted pursuant to the provisions of this Section 3(a) shall be in addition to the registration rights granted pursuant to the other provisions of this Agreement.

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(b)

The Company shall be required to include in the registration pursuant to this Section 3 the percentage of the Registrable Shares held by the Holders in such registration as will equal the fraction, (x) the numerator of which shall be the number of all the Registrable Shares and (y) the denominator of which shall be the number of shares of the outstanding capital stock of the Company on a fully-diluted basis, in each case, immediately prior to the effectiveness of such registration statement.  The number of Registrable Shares to be included in the Incidental Registration shall be allocated pro rata among the Holders thereof requesting inclusion in such registration on the basis of the number of securities requested to be included by all such Holders.

(c)

If the registration pursuant to this Section 3 is underwritten and in the good faith judgment of the managing underwriter the inclusion of the Registrable Shares requested to be registered would interfere with the successful marking of the offering, then the number of Registrable Shares to be included in the offering will be reduced to such smaller number with the participation in the offering to be in the following order of priority: (1) first, the securities to which the Company proposes to sell for its own account, (2) second, the shares of Registrable Shares requested by the Holders to be included in such registration , pro rata among the Holders thereof requesting inclusion in such registration on the basis of the number of securities requested to be included by all such Holders, and (3) third, any other securities requested to be included.

Section 4.

Preparation and Filing.

If and whenever the Company is under an obligation pursuant to the provisions of the Agreement to effect the registration of any Registrable Shares, the Company shall, as expeditiously as practicable:

(a)

mail the Electing Holder Questionnaire to the Holders.  The Holders shall have at least ten (10) calendar days from the date on which the Electing Holder Questionnaire is first mailed to the Holders to return a completed and signed Electing Holder Questionnaire to the Company.  The term “Electing Holder” shall mean any Holder that has returned a completed and signed Electing Holder Questionnaire to the Company in accordance with this Section 3(a);
 

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(b)

use its best efforts to cause a registration statement that registers such Registrable Shares to become and remain effective until all of such Registrable Shares have been disposed of;

(c)

furnish, at least five (5) Business Days before filing of the Registration Statement or other registration statement that registers such Registrable Shares, the Prospectus or other prospectus relating thereto or any amendments or supplements relating to such a registration statement or prospectus, to the Electing Holders and any counsel of such holders copies of all such documents proposed to be filed which documents shall be subject to review thereof.  If any such Registration Statement refers to any Electing Holder by name or otherwise as the holder of any securities of the Company, then such Electing Holder shall have the right to require (i) the insertion therein of language, in form and substance reasonably satisfactory to such Electing Holder, to the effect that the holding by such Electing Holder of such securities is not to be construed as a recommendation by such Electing Holder of the investment quality of the Company’s securities covered thereby or (ii) in the event that such reference to such Electing Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force, the deletion of the reference to such Electing Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to the time such reference ceases to be required;

(d)

prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to ensure the inclusion of all Registrable Shares in such applicable registration statement and/or prospectus and as may be necessary to keep such registration statement effective until all of such Registrable Shares have been disposed of and to comply with the provisions of the Securities Act with respect to the sale or other disposition of such Registrable Shares; cause the related Prospectus or other prospectus to be amended or supplemented by any required prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; and respond as promptly as reasonably possible to any comments received from the Commission with respect to such Registration Statement or other registration statement or any amendment thereto;

(e)

notify the Electing Holders immediately at any time when a prospectus relating to such Registrable Shares or any document related thereto includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing and, at the request of the Electing Holders prepare and furnish to such Electing Holders a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the offerees of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

(f)

from the date hereof until all of such Registrable Shares have been disposed of, the Company shall promptly take such action as may be necessary, including preparing a post-effective amendment or supplement to the Registration Statement or Prospectus, or any document incorporated therein by reference, so that (i) each of the Registration Statement and any amendment thereto and the Prospectus and any amendment or supplement thereto (and each report or other document incorporated by reference therein in each case) complies in all respects with the Securities Act and the Exchange Act and the respective rules and regulations thereunder, (ii) each of the Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and (iii) each of the Prospectus and any amendment or supplement to the Prospectus does not at any time prior to the disposal of all of such Registrable Shares include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

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(g)

notify in writing the Electing Holders participating in such registration and their counsel (i) of the receipt by the Company of any notification with respect to any comments by the Commission with respect to such registration statement or prospectus or any amendment or supplement thereto or any request by the Commission for the amending or supplementing thereof or for additional information with respect thereto, (ii) of the receipt by the Company of any notification with respect to the issuance by the Commission of any stop order suspending the effectiveness of such registration statement or prospectus or any amendment or supplement thereto or the initiation or threatening of any proceeding for that purpose, (iii) of the receipt by the Company of any notification with respect to the suspension of the qualification of such Registrable Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purposes and (iv) of the existence of any fact or the happening of any event that causes the Company to become an “ineligible issuer,” as defined in Rule 405;

(h)

use its best efforts to register or qualify such Registrable Shares under such other securities or blue sky laws of such jurisdictions as the Holders reasonably request and do any and all other acts and things which may be reasonably necessary or advisable to enable the Holders to consummate the disposition in such jurisdictions of the Registrable Shares owned by the Holders; provided, however, that the Company will not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required to do so but for this Section 4(h);
 

(i)

without limiting Section 4(h), use its best efforts to cause such Registrable Shares to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the Electing Holders to consummate the disposition of such Registrable Shares;

(j)

use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Shares for sale in any jurisdiction, at the earliest practicable moment;

(k)

furnish to the Electing Holders such number of copies of a summary prospectus, if any, or other prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as such Electing Holders may reasonably request in order to facilitate the public sale or other disposition of such Registrable Shares;

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(l)

in connection with any underwritten offering:
 

(i)

use its best efforts to obtain from its independent certified public accountants comfort letters in customary form and at customary times and covering matters of the type customarily covered by comfort letters and deliver such letters to any applicable underwriters;

(ii)

use its best efforts to obtain from its counsel an opinion or opinions in customary form and deliver such opinions to any applicable underwriters;

(iii)

issue and deliver customary officer’s and other closing certificates to any applicable underwriters;

(iv)

promptly issue to any underwriter to which the Electing Holders may sell shares in such offering, certificates evidencing such Registrable Shares;
 

(v)

the Company shall, if requested, promptly include or incorporate in a prospectus supplement or post-effective amendment to the Registration Statement such information as the applicable underwriters reasonably agree should be included therein and to which the Company does not reasonably object and shall make all required filings of such prospectus supplement or post-effective amendment as soon as practicable after it is notified of the matters to be included or incorporated in such prospectus supplement or post-effective amendment;

(m)

if an Electing Holder is or is to be identified by the Commission or the NASD as an “underwriter”, at the request of such Electing Holder, the Company shall (A) furnish to such Electing Holder, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as the Holders may reasonably request (i) a comfort letter from the Company’s independent certified public accountants at customary times in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Holders, and (ii) an opinion of counsel representing the Company for purposes of such Registration Statement at customary times in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Holders, and (B) permit such Electing Holder to participate in good faith in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable judgment of such holder and its counsel should be included, subject to review by the Company and their counsel after consultation with such holder.  Notwithstanding anything herein to the contrary, no Electing Holder shall be designated as an “underwriter” by the Company in any Registration Statement without the consent of such Electing Holder;
 

(n)

provide a transfer agent and registrar (which may be the same entity and which may be the Company) for such Registrable Shares;

(o)

otherwise use its best efforts to comply with all applicable rules and regulations of the Commission and make available to its securityholders, as soon as reasonably practicable, but in any event not later than eighteen months after (i) the effective date (as defined in Rule 158(c) under the Securities Act) of the Registration Statement, (ii) the effective date of each post-effective amendment to the Registration Statement, and (iii) the date of each filing by the Company with the Commission of an Annual Report on Form 10-K that is incorporated by reference in the Registration Statement, an earnings statement of the Company and its subsidiaries complying with Section 11(a) of the Securities Act and the rules and regulations of the Commission thereunder (including, at the option of the Company, Rule 158);
 

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(p)

if requested by an Electing Holder, the Company shall (i) as soon as practicable incorporate in a prospectus supplement or post-effective amendment such information as such Electing Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Shares, including, without limitation, information with respect to the number of Registrable Shares being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Shares to be sold in such offering; (ii) as soon as practicable make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any Registration Statement reasonably requested by such holder;

(q)

otherwise use its best efforts to take all other steps necessary to effect the registration of such Registrable Shares contemplated hereby; and

(r)

in connection with the due diligence efforts of any Electing Holder who is or is to be identified as an “underwriter,” the Company shall make available for inspection during business hours and upon reasonable advance request by (i) any Electing Holder, (ii) counsel for such Electing Holder and (iii) one firm of accountants or other agents retained by such Electing Holder (collectively, the “Deemed Underwriter Inspectors”), all Records, as shall be reasonably deemed necessary by each Deemed Underwriter Inspector, and cause the Company’s officers, directors and employees to supply all information which any Deemed Underwriter Inspector may reasonably request.

The Company shall not permit any officer, director, underwriter, broker or any other Person acting on behalf of the Company to use any Free Writing Prospectus in connection with the Registration Statement covering Registrable Shares, without the prior written consent of the holders of a majority of the Registrable Shares, which consent shall not be unreasonably withheld or delayed.  Any consent to the use of a Free Writing Prospectus included in an underwriting agreement to which the Electing Holders are parties shall be deemed to satisfy the requirement for such consent.  The Holders, upon receipt of any notice from the Company of any event of the kind described in Sections 4(e) or 4(g), shall forthwith discontinue disposition of the Registrable Shares pursuant to the registration statement covering such Registrable Shares until such holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Sections 4(e) or 4(g), and, if so directed by the Company, the Holders shall deliver to the Company all copies, other than permanent file copies then in such holder’s possession, of the prospectus covering such Registrable Shares at the time of receipt of such notice.

Section 5.

Expenses.

All expenses incurred by the Company, and all expenses separately incurred by the Holders, in complying with their obligations pursuant to the Agreement and in connection with the registration and disposition of Registrable Shares, including, without limitation, all registration and filing fees (including all filing fees incident to filing with the NASD), fees and expenses of complying with securities and blue sky laws, printing expenses, fees and expenses of the Company’s counsel and accountants and the Holders’ counsel shall be paid by the Company, including all underwriting fees and expenses (including legal expenses and expenses of the Company’s other advisors); provided, however, that all underwriting discounts and selling commissions applicable to the Registrable Shares shall be borne by the Holders in the applicable underwritten offering.

11

Section 6.

Indemnification.

(a)

In connection with any registration of any Registrable Shares under the Securities Act pursuant to the Agreement, the Company shall indemnify and hold harmless the Holders, its officers, directors, employees, members, partners, and advisors and their respective Affiliates, each underwriter, broker or any other Person acting on behalf of the Holders and each other Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act against any losses, claims, damages, liabilities, or actions joint or several (or actions in respect thereof), to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or allegedly untrue statement of a material fact contained in the registration statement under which such Registrable Shares were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein or otherwise filed with the Commission, any amendment or supplement thereto or any document incident to registration or qualification of any Registrable Shares, or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or, with respect to any prospectus, necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or any violation by the Company of the Securities Act or state securities or blue sky laws applicable to the Company or relating to action or inaction required of the Company in connection with such registration or qualification under such state securities or blue sky laws; and shall reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action (including any legal or other expenses incurred) arises out of or is based solely upon an untrue statement or allegedly untrue statement or omission or alleged omission made in said registration statement, preliminary prospectus, final prospectus, amendment, supplement, Issuer Free Writing Prospectus or document incident to registration or qualification of any Registrable Shares in reliance upon and in conformity with written information furnished to the Company by the Holders specifically for use in the preparation thereof or for any Holder’s failure to deliver a prospectus, Issuer Free Writing Prospectus or for selling any shares of Common Stock pursuant to such prospectus after the Company has provided to the Holders written notice of the Company’s receipt of a stop order relating to such Registration Statement or for selling any shares of Common Stock pursuant to such prospectus after the Holders have received written notice pursuant to Sections 4(e) or 4(g).

(b)

In connection with any registration of Registrable Shares under the Securities Act pursuant to the Agreement, each Electing Holder shall severally (based on the percentage of all Registrable Shares included in such registration that were owned by such holder) and not jointly and severally indemnify and hold harmless the Company, each director of the Company, each employee and advisor of the Company, each officer of the Company who shall sign such registration statement, each underwriter, broker or other Person acting on behalf of the Holders, the Affiliates of each of the foregoing, and each Person who controls any of the foregoing Persons within the meaning of the Securities Act with respect to any statement or omission from such registration statement, any preliminary prospectus or final prospectus contained therein or otherwise filed with the Commission, any amendment or supplement thereto or Issuer Free Writing Prospectus or any document incident to registration or qualification of any Registrable Shares, if such statement or omission was made in reliance upon and in conformity with written information furnished to the Company or such underwriter by such Electing Holder specifically for use in connection with the preparation of such registration statement, preliminary prospectus, final prospectus, amendment, supplement,  document or Issuer Free Writing Prospectus; provided, however, that the maximum amount of liability in respect of such indemnification shall be limited, in the case of each Electing Holder, to an amount equal to the gross amount actually received by such Electing Holder from the sale of Registrable Shares effected pursuant to such registration.

12

(c)

Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in this Section 5, such indemnified party will, if a claim in respect thereof is made against an indemnifying party, give written notice to the latter of the commencement of such action.  The failure of any indemnified party to notify an indemnifying party of any such action shall not (unless such failure shall have a material adverse effect on the indemnifying party) relieve the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder.  In case any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; provided, however, that if any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict with those available to the indemnifying party, or that such claim or litigation involves or could have an effect upon matters beyond the scope of the indemnity agreement provided hereunder, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party (but shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such indemnified party and any Person controlling such indemnified party for that portion of the fees and expenses of any counsel retained by the indemnified party which is reasonably related to the matters covered by the indemnity agreement provided hereunder. If the indemnifying party assumes the defense of a claim, the indemnified party shall agree to any settlement, compromise or discharge of a claim that the indemnifying party may recommend that has as the sole remedy monetary damages, that by its terms obligates the indemnifying party to pay the full amount of the liability in connection with such claim, and that has no finding or admission of any violation of any law or regulation or of the rights of any Person and no effect on any other claims that may be made against the indemnified party.   If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel with respect to such claim.

(d)

If the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The parties agree that it would not be just and equitable if contribution pursuant hereto does not take account of the equitable considerations referred to herein.  No Person guilty or liable of fraudulent misrepresentation shall be entitled to contribution from any Person.

13

(e)

Notwithstanding any other provision of this Section 6, in no event will any Electing Holder be required to undertake any liability or obligation under this Section 6 for an aggregate amount in excess of the dollar amount of the proceeds (after deducting any fees, discounts and commissions applicable thereto) received by such Electing Holder from the sale of such Electing Holder’s Registrable Shares giving rise to such liability or obligation (net of all expenses paid by such holder in connection with any claim relating to this Section 5 and the amount of any damages such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission).  

(f)

The obligations of the Company under this Section 6 shall be in addition to any liability that the Company may otherwise have to any indemnified party and the obligations of any indemnifying party under this Section 6 shall be in addition to any liability that such indemnifying party may otherwise have to the Company.  The remedies provided in this Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be available to an indemnified party at law or in equity.

Section 7.

Free Writing Prospectus.  Each Holder represents that it has not prepared or had prepared on its behalf or used or referred to or distributed, and agrees that it will not prepare or have prepared on its behalf or use or refer to or, except as contemplated by the Agreement, distribute, any Free Writing Prospectus with respect to the sale of its Registrable Shares pursuant to the Registration Statement, in each case, without the prior written consent of the Company not to be unnecessarily withheld and, in connection with any underwritten offering, the underwriters.  Any such Free Writing Prospectus consented to by the Company and the underwriters, as the case may be, is hereinafter referred to as a “Permitted Free Writing Prospectus.”  The Company represents and agrees that it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping.

Section 8.

Exchange Act Compliance.

The Company shall comply with all of the reporting requirements of the Exchange Act applicable to it and shall comply with all other public information reporting requirements of the Commission which are conditions to the availability of Rule 144.  The Company shall cooperate with the Holders in supplying such information as may be necessary for the Holders to complete and file any information reporting forms presently or hereafter required by the Commission as a condition to the availability of Rule 144. The Company shall cause its counsel to issue a legal opinion to the Company's transfer agent if required by the Company’s transfer agent to effect the removal of any legend to the extent that such legend is permitted to be removed in accordance with the terms of Rule 144, the Agreement and the other applicable rules and regulations.

14

Section 9.

Remedies.  

The Company acknowledges and agrees that any failure by the Company to comply with its obligations under the Agreement may result in material irreparable injury to the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Holders or any holder of Registrable Shares may obtain such relief as may be required to specifically enforce the Company’s obligations hereunder.  The Company further agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

Section 10.

Benefits of Agreement; Third Party Beneficiaries.

Except as provided herein, the Agreement shall bind and inure to the benefit of the Company, the Holders and subject to Section 10, the respective successors and permitted assigns of the Company and the Holders.  

Section 11.

Assignment.

The Holders may assign its rights hereunder to any purchaser or transferee of Registrable Shares; provided, however, that such purchaser or transferee shall, as a condition to the effectiveness of such assignment, be required to execute a counterpart to the Agreement agreeing to be treated as a Holders whereupon such purchaser or transferee shall have the benefits and liabilities of, and shall be subject to the restrictions contained in, the Agreement as if such purchaser or transferee was originally included in the definition of a Holders herein and had originally been a party hereto.  

Section 12.

Entire Agreement.

The Agreement, and the other writings referred to herein or delivered pursuant hereto, contain the entire agreement among the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or understandings with respect thereto.  

15

Section 13.

Other Registration Rights.  The Company will not, on or after the date of the Agreement, enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in the Agreement or otherwise conflicts with the provisions hereof.  The Company shall not permit any securities other than the Registrable Shares to be included in any Registration Statement without the prior written consent of the Holders and upon terms reasonably acceptable to the Holders.

Section 14.

Notices.

All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or sent by telecopy, electronic transmission, nationally-recognized overnight courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below or such other address as may hereafter be designated in writing by such party to the other parties:

(i)

if to the Company, to:

Room 909, Tower B

Chang’an Metropolis Center

No. 88 Nanguanzheng Street  

Xi’an 710068, China

Attention: Guangyu Wu, Chief Executive Officer

Tel: +86 (29) 8765-1096

Fax: +86 (29) 8765-1099

with a copy to:

Bernard & Yam, LLP

401 Broadway, Suite 1501

New York, NY 10013

Attention: Bin Zhou

Tel: 1 (212) 219-7783

Fax: 1 (212) 219-3604

 

(ii)

if to the Holders, to:

Carlyle Asia Investment Advisors Limited

2202-2207A, Plaza 66

1266 Nanjing Xi Road

Shanghai  200040, P.R.C.

Attention: Nicholas Shao

Tel: +86 (21) 6103-3266

Fax: +86 (21) 6103-3220

 

with a copy to:

 

O’Melveny & Myers LLP

Plaza 66, 37th Floor

1266 Nanjing Road West

Shanghai 200040, P.R.C.

Attention: Portia Ku

Tel: + 86 (21) 2307-7000

Fax: + 86 (21) 2307-7300

16

All such notices, requests, consents and other communications shall be deemed to have been delivered (a) in the case of personal delivery or delivery by telecopy, on the date of such delivery, (b) in the case of dispatch by nationally-recognized overnight courier, on the next Business Day following such dispatch and (c) in the case of email, upon receipt of acknowledgement of receipt (d) in the case of mailing, on the fifth Business Day after the posting thereof.

Section 15.

Modifications; Amendments; Waivers.

The terms and provisions of the Agreement may not be modified or amended except pursuant to a writing signed by the Company and the Holders.  Any waiver of any provision of the Agreement requested by any party hereto must be granted in advance, in writing by the party granting such waiver.

Section 16.

Counterparts; Facsimile Signatures.

The Agreement may be executed in any number of original or facsimile counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.

Section 17.

Headings.

The headings of the various sections of the Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of the Agreement.

Section 18.

Governing Law.

The Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any law or rule that would cause the laws of any jurisdiction other than the State of New York to be applied.

Section 19.

Severability.

It is the desire and intent of the parties that the provisions of the Agreement be enforced to the fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, in the event that any provision of the Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of the Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as to not be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of the Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

17

Section 20.

Survival.  The respective indemnities, agreements, representations, warranties and other provisions set forth in the Agreement or made pursuant hereto shall remain in full force and effect, and shall survive the transfer and registration of the Registrable Shares of the Holders.

*  *  *  *

  

 

 

18

IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement on the date first written above.

	 	
    CHINA RECYCLING ENERGY

	 	
    CORPORATION

	 	
     

	 	
     

	 	
    By:

    
                                                                      
    

	 	
    Name:

    
                                                                      
    

	 	
    Title:

    
                                                                      
    

	 	
     

	 	
     

	 	
     

	 	
    For and on behalf of:

	 	
    CARLYLE ASIA GROWTH PARTNERS III,

	 	
    L.P.

	 	
     

	 	
     

	 	
    By:

    
                                                                      
    

	 	
    Name:

    
                                                                      
    

	 	
    Title:

    
                                                                      
    

	 	
     

	 	
    For and on behalf of:

	 	
     

	 	
    CAGP III CO-INVESTMENT, L.P.

	 	
     

	 	
     

	 	
    By:

                                                                      
    

	 	
    Name:

    
                                                                      
    

	 	
    Title:

    
                                                                      
    

S-1altair_8k-ex1001.htm

    Exhibit
      10.1

    EMPLOYMENT
      AGREEMENT

    (Level
      12 Officer)

    

    THIS
      EMPLOYMENT AGREEMENT (this
“Agreement”) is entered into as of  November 13, 2007, 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 Terry Copeland, 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”). The Term shall terminate upon the earlier to occur
      of (i) the Expiration Date, and (ii) the termination of Employee’s employment
      with all of the Consolidated Companies.  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. 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 related to the
      interpretation or enforcement of, and disputes under, this Agreement shall
      survive until the expiration of the last applicable statute of
      limitations.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
 

    3.                Duties.  Employee’s
      title shall be Vice President Operations, Power & Energy
      Group.  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 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.

    

    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 $225,000.  Such
      annual base salary shall be payable in accordance with the Company's customary
      pay schedule.  During the Term, the base salary of Employee shall not
      be reduced below the minimum required by this Section.

    

    4.2           Stock
      Options.   During the period of Employee’s employment with a
      Consolidated Company, Parent has granted, and in the future 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 any past Equity
      Awards shall be amended to provide that all otherwise
      unvested Equity Awards shall, unless otherwise requested by Employee in writing,
      immediately vest as of the effective date of a 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 conditioned upon the
      achievement of performance measures established by the Board after consultation
      with Employee.  The potential amount of the performance bonus for each
      fiscal year if all performance measures are met, shall be at least up to sixty
      percent (60%) of Employee’s base salary paid for the calendar year to which such
      bonus relates.  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.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
 

    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 and policies covering life, disability,
      health, and dental insurance in accordance with the rules 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
      shall be entitled to vacation, sick leave and holidays at full pay in accordance
      with the Consolidated Companies’ policies with the exception that vacation will
      commence at three weeks annually.

    

    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.

    

    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 and the date on which such termination is effective shall
      be made in good faith by the Board of Parent.  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 (f) habitual neglect of or deliberate or intentional refusal to perform
      mutually agreed upon Employee’s duties and obligations under 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.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
 

    6.2           Termination
      by the Company Without Cause.  Employee’s employment with each
      Consolidated Company is “at will,” any Employee’s employment with any and all
      Consolidated Companies is terminable at any time without Cause or any reason
      of
      any kind.  A termination of Employee's employment pursuant to this
      Section 6.2 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 describes the facts underlying Employee's belief
      that Good Reason exists and the Company has failed to cure such situation within
      15 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; (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 the Consolidated Companies’ usual business
      activities,  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

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
 

    (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 expiration of the Eligibility Period, as determined in
      accordance with this Section 6.6.  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 at any time 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
      is 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”), continue to pay, when due in accordance with Section 4.1, to or for
      the benefit of Employee or, if applicable, Employee’s heirs or
      estate:  (a) Employee’s base salary through the period ending on the
      12-month anniversary of the effective date of the termination of Employee's
      service; and (b) Company health benefits coverage then in effect (with Company
      /Employee contributions remaining the same as during the period immediately
      prior to termination) through the period ending on the 12-month anniversary
      of
      the effective date of the termination of Employee's
      service.  Notwithstanding the foregoing, if (y) Employee relocated was
      required to relocate from a location more than 50 miles from the Place of
      Employment in order to commence employment with the Consolidated
      Companies and Employee’s employment is subsequently terminated by Employee
      for Good Reason on or before the two-year anniversary of the Effective Date,
      or
      (z) Employee’ accepts a change in Employee’s place of employment (and relocates
      without terminating his or her Employment for Good Reason based upon such
      change) during the Term and then Employee’s employment is terminated by Employee
      for Good Reason on or before the two-year anniversary of such change in
      Employee’s place of employment, then in case of either (y) or (z) the period
      referred to in subsection (a) above shall be 16 months.

     

    
      
         

      

      
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    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 Section 4.1, to or for the benefit of Employee or, if applicable, his
      heirs
      or estate:  (a) Employee’s base salary through the period ending on
      the 12-month anniversary of the effective date of the termination of Employee’s
      services; (b) Company health benefits coverage then in effect (with Company
      /Employee contributions remaining the same as during the period immediately
      prior to termination) through the period ending on the 18-month anniversary
      of
      the effective date of the termination of Employee’s services; and (iii) a bonus
      equal to sixty percent (60%) of Employee’s base salary paid for the calendar
      year in which termination of Employee’s services occurs, payable in one lump sum
      within 30 days of the end of such year. Notwithstanding the foregoing, if
      (y) Employee relocated was required to relocate from a location more than 50
      miles from the Place of Employment in order to commence employment with the
      Consolidated Companies and Employee’s employment is subsequently terminated
      by Employee for Good Reason on or before the two-year anniversary of the
      Effective Date, or (z) Employee’ accepts a change in Employee’s place of
      employment (and relocates without terminating his or her Employment for Good
      Reason based upon such change) during the Term and then Employee’s employment is
      terminated by the Company without Cause on or before the two-year anniversary
      of
      such change in Employee’s place of employment, then in case of either (y) or (z)
      the period referred to in subsection (a) above shall be 16 months.

    

    7.5           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.

     

    
      
         

      

      
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    7.6           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 7.5 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 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 development, marketing, provision or sale of any technology,
      process, product or service that is being developed, marketed, provided or
      sold
      by any Consolidated Company during the period Employee is employed with any
      Consolidated Company.  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.

    

    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 for a Competing 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.

     

    
      
         

      

      
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    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 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 (the “Proprietary
      Information Agreement”) in the form set forth in the Consolidated Companies’
Policy Manual.  Employee’s execution of such a Proprietary Information
      Agreement is a condition precedent to Employee’s eligibility for any rights and
      benefits under this 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.

     

    
      
         

      

      
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    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.

    

    14.                
      Entire Agreement. This Agreement, together with the Proprietary Information
      Agreement and other agreements required under the Consolidated Companies’
policies, constitute the full and complete understanding and agreement of any
      of
      the Consolidated Companies and Employee with respect to the subject matter
      covered herein and supersedes all prior oral or written understandings and
      agreements with respect thereto (including any offer letter associated with
      the
      commencement of your employment).

    

    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.

     

    
      
         

      

      
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    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:                                    1324
      Deerbourne Drive

    Wesley
      Chapel, FL 33543

    

    

    (b)           To
      Parent/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, 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]

     

    
      
         

      

      
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    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/
      Alan
Gotcher            

    

    Name:
Alan
      Gotcher            

    

    Title:  President
      and
      CEO        

    

    

    

    PARENT:

    

    ALTAIR
      NANOTECHNOLOGIES
      INC.

    a
      Canadian corporation

    

    

    By:
/s/
      Alan
Gotcher            

    

    Name:
Alan
      Gotcher            

    

    Title:  President
      and
      CEO        

    

    

    

    

    

    EMPLOYEE:

    

    

    /s/
      Terry Copeland            

    Terry
      Copeland, an
      individual

     

     

     

    11

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