Document:

THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND HAVE BEEN TAKEN
FOR  INVESTMENT  PURPOSES  ONLY AND NOT WITH A VIEW TO OR FOR SALE IN CONNECTION
WITH ANY  DISTRIBUTION  THEREOF.  THESE  SECURITIES MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED,  IS IN EFFECT WITH RESPECT TO SUCH  SECURITIES OR THE  CORPORATION  HAS
RECEIVED  AN  OPINION  IN FORM AND  SUBSTANCE  SATISFACTORY  TO THE  CORPORATION
PROVIDING THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT OF 1933, AS AMENDED, IS AVAILABLE.

                          ALTAIR NANOTECHNOLOGIES INC.

                          COMMON SHARE PURCHASE WARRANT

______ Series 2003C Warrants                     Warrant Certificate No. 2003C-_

                   Void after 5:00 p.m., Pacific Standard Time
           on May [__], 2008 or on such earlier date specified herein

                          ALTAIR NANOTECHNOLOGIES INC.
                     (Incorporated under the laws of Canada)

This Series 2003C  Warrant  Certificate  ("Warrant  Certificate")  is to certify
that, for value received,  _______________  or registered assigns (the "Holder")
shall have the right to purchase from Altair  Nanotechnologies Inc. (hereinafter
called the "Corporation") one fully paid and non-assessable  Common Share of the
Corporation (a "Common  Share") for each Series 2003C Warrant  (individually,  a
"Warrant")  represented  by this  Warrant  Certificate  during  the time  period
commencing  on  the  date  this  Warrant  is  executed  by the  Corporation  and
continuing until 5:00 p.m.  (Pacific  Standard time) on the earliest to occur of
(i) May [__], 2008 [date that is fifth  anniversary of issue date],  (ii) at any
time more than one-year after May [__], 2003 [the date of issue],  the 180th day
following  the date on which  the  closing  price of the  Common  Shares  on the
Corporation's principal trading market has equaled or exceeded U.S. $3.50 for 10
days,  whether  or not  consecutive,  and (iii) at any time the  re-sale  of the
Common Shares  issuable upon  exercise of the 2003C Warrant is  registered,  the
180th day  following the date on which the closing price of the Common Shares on
the  Corporation's  principal  trading market has equaled or exceeded U.S. $3.50
for 10 days, whether or not consecutive (the earliest of (i), (ii) or (iii), the
"Expiry  Time").  The exercise  price for the purchase of each such Common Share
shall be U.S.  $1.35 per share  (the  "Exercise  Price").  The  number of Common
Shares to be received  upon the exercise of each Warrant and the Exercise  Price
may be adjusted from time to time as hereinafter set forth.

The Warrants shall be subject to the following terms and conditions:

1.       For the purposes of this Warrant, the term "Common Shares" means common
         shares without  nominal or par value in the capital of the  Corporation
         as  constituted  on the date  hereof;  provided  that in the event of a
         change,   subdivision,    redivision,    reduction,    combination   or
         consolidation  thereof or any other adjustment under section 10 hereof,
         or successive  such  changes,  subdivisions,  redivisions,  reductions,
         combinations,  consolidations or other adjustments, then subject to the
         adjustments, if any, having been made in accordance with the provisions
         of this Warrant Certificate,  "Common Shares" shall thereafter mean the
         shares,  other securities or other property resulting from such change,
         subdivision,  redivision,  reduction,  combination or  consolidation or
         other adjustment.

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2.       This  Warrant  Certificate  shall  be  signed  by  an  officer  of  the
         Corporation  holding office at the time of signing, or any successor or
         replacement person and notwithstanding any change in any of the persons
         holding  said  offices  between  the  time of  actual  signing  and the
         delivery  of the  Warrant  Certificate  and  notwithstanding  that such
         officer signing may not have held office at the date of the delivery of
         the Warrant  Certificate,  the Warrant  Certificate  so signed shall be
         valid and binding upon the Corporation.

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3.       All rights  under any of the  Warrants in respect of which the right of
         subscription  and purchase  therein  provided for shall not theretofore
         have been exercised  shall wholly cease and determine and such Warrants
         shall be wholly void and of no valid or binding effect after the Expiry
         Time.

4.       The right to purchase  Common Shares  pursuant to the Warrants may only
         be exercised by the Holder at or before the Expiry Time by:

         (a)      duly completing and executing a Subscription  Form in the form
                  attached hereto, in the manner therein indicated; and

         (b)      surrendering  this Warrant  Certificate and the duly completed
                  and  executed  Subscription  Form  to the  Corporation  at the
                  address specified in section 22 below together with payment of
                  the purchase price for the Common Shares subscribed for in the
                  form of cash or a certified  cheque payable to the Corporation
                  in an  amount  equal to the  then  applicable  Exercise  Price
                  multiplied by the number of Common Shares subscribed for.

5.       Upon receipt of the Subscription  Form, this Warrant  Certificate,  and
         payment as aforesaid,  the Corporation  shall cause to be issued to the
         Holder  the number of Common  Shares to be issued and the Holder  shall
         become a  shareholder  of the  Corporation  in respect  of such  Common
         Shares,  effective as of the date of receipt by the Corporation of such
         Subscription  Form,  Warrant  Certificate,  and  payment  and  shall be
         entitled to delivery of a certificate or  certificates  evidencing such
         shares. The Corporation shall cause such certificate or certificates to
         be mailed to the Holder at the address or  addresses  specified in such
         Subscription  Form within ten (10)  business  days of such  receipt and
         payment as herein provided or, if so instructed by the Holder, held for
         pick-up  by the Holder at the  principal  office of the  registrar  and
         transfer agent of the Common Shares, Equity Transfer Services Inc. (the
         "Transfer Agent").

6.       No fractional shares or stock  representing  fractional shares shall be
         issued upon the  exercise  of any  Warrant.  In lieu of any  fractional
         shares which would otherwise be issuable,  the Corporation shall either
         pay cash equal to the product of such  fraction  multiplied by the fair
         market  value  of  one  Common  Shares  on the  date  of  exercise,  as
         determined in good faith by the  Corporation's  Board of Directors,  or
         issue  the  next  largest   whole  number  of  Common   Shares  at  the
         Corporation's option.

7.       The Warrants may not be exercised  unless at the time of exercise (i) a
         registration statement registering the Common Shares issuable upon such
         exercise is effective under the Securities Act of 1933, as amended (the
         "1933 Act"),  or the  transaction in which such shares are to be issued
         is exempted from the  application of the  registration  requirements of
         the 1933 Act, and (ii) the Common Shares  issuable upon exercise of the

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         Warrants  have  been  registered  or  qualified  under  any  applicable
         Canadian,  provincial,  state  securities  laws  or an  exemption  from
         registration or  qualification is available under such laws. The Common
         Shares  issuable  upon  exercise  of  this  Warrant  are  and  will  be
         "restricted  securities"  under the 1933 Act inasmuch as they are being
         acquired from the  Corporation in a transaction  not involving a public
         offering,  and  that,  under  the 1933 Act and  applicable  regulations
         thereunder,  such securities may be resold without  registration  under
         the  1933  Act  only  in  certain  limited   circumstances.   Unless  a
         registration  statement  registering  the Common  Shares  issuable upon
         exercise  of any  Warrant is  effective  under the 1933 Act at the time
         such Common Shares are issued, the certificates  evidencing such Common
         Shares shall bear the legend set forth below,  together  with any other
         legends  required by the laws of the  Province of Ontario and any other
         state or province with jurisdiction:

                  THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED,  OR QUALIFIED UNDER  APPLICABLE STATE
                  SECURITIES  LAWS AND HAVE BEEN TAKEN FOR  INVESTMENT  PURPOSES
                  ONLY AND NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY
                  DISTRIBUTION  THEREOF.  THESE  SECURITIES  MAY  NOT BE SOLD OR
                  OTHERWISE TRANSFERRED UNLESS A REGISTRATION STAEMENT UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED,  IS IN EFFECT WITH RESPECT
                  TO SUCH  SECURITIES OR THE CORPORATION HAS RECEIVED AN OPINION
                  IN  FORM  AND  SUBSTANCE   SATISFACTORY   TO  THE  CORPORATION
                  PROVIDING THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
                  OF THE SECURITIES ACT OF 1933, AS AMENDED, IS AVAILABLE.

         The legend set forth above shall be removed by the Corporation from any
         certificate  evidencing the Common Shares issuable upon exercise of the
         Warrants only (i) upon receipt by the Corporation of an opinion in form
         and substance  satisfactory to the Corporation  that such legend may be
         removed pursuant to Rule 144 promulgated  under the 1933 Act, (ii) upon
         confirmation  that a  registration  statement  under the 1933 Act is at
         that time in effect  with  respect  to such  Common  Shares,  that such
         transfer  will  not  jeopardize   the  exemption  or  exemptions   from
         registration pursuant to which the respective Common Shares were issued
         and  that  the  Holder  will  comply  with  the   prospectus   delivery
         requirements  in connection  with any re-sale of the respective  Common
         Shares.

8.       The holding of a Warrant shall not  constitute the Holder a shareholder
         of the  Corporation nor entitle him to any right or interest in respect
         thereof except as herein expressly provided.

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<PAGE>

9.       The Corporation  covenants and agrees that until the Expiry Time, while
         any of the Warrants  shall be  outstanding,  it shall reserve and there
         shall remain unissued out of its authorized capital a sufficient number
         of Common Shares to satisfy the right of purchase herein  provided,  as
         such right of purchase  may be adjusted  pursuant to sections 10 and 11
         hereof.  All Common  Shares  which shall be issued upon the exercise of
         the right to purchase herein provided for, upon payment therefor of the
         amount  at  which  such  Common  Shares  may at the  time be  purchased
         pursuant to the  provisions  hereof,  shall be issued as fully paid and
         non-assessable  shares and the holders  thereof  shall not be liable to
         the Corporation or its creditors in respect thereof.

10.      (a)      If and whenever at any time after the date hereof and prior to
                  the Expiry Time the Corporation shall (i) subdivide,  redivide
                  or change its then  outstanding  Common  Shares into a greater
                  number of Common Shares,  (ii) reduce,  combine or consolidate
                  its then  outstanding  Common  Shares into a lesser  number of
                  Common  Shares or (iii)  issue  Common  Shares (or  securities

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<PAGE>

                  exchangeable  for or  convertible  into Common  Shares) to the
                  holders of all or  substantially  all of its then  outstanding
                  Common Shares by way of a stock dividend or other distribution
                  (any  of  such   events   herein   called  a   "Common   Share
                  Reorganization"),  then the  Exercise  Price shall be adjusted
                  effective  immediately  after the  effective  date of any such
                  event in (i) or (ii)  above or the  record  date at which  the
                  holders of Common Shares are determined for the purpose of any
                  such dividend or  distribution in (iii) above, as the case may
                  be,  by  multiplying  the  Exercise  Price in  effect  on such
                  effective  date or  record  date,  as the  case  may be,  by a
                  fraction, the numerator of which shall be the number of Common
                  Shares  outstanding  on such effective date or record date, as
                  the case may be,  before  giving  effect to such Common  Share
                  Reorganization  and the  denominator  of  which  shall  be the
                  number of Common Shares  outstanding  immediately after giving
                  effect to such Common Share Reorganization  including,  in the
                  case where  securities  exchangeable  for or convertible  into
                  Common  Shares are  distributed,  the number of Common  Shares
                  that would be  outstanding if such  securities  were exchanged
                  for or converted into Common Shares.

         (b)      If and whenever at any time after the date hereof and prior to
                  the Expiry Time, the Corporation shall distribute any class of
                  shares or rights,  options  or  warrants  or other  securities
                  (other  than  those  referred  to  in  section  10(a)  above),
                  evidences  of   indebtedness   or  property   (excluding  cash
                  dividends  paid in the  ordinary  course) to holders of all or
                  substantially all of its then outstanding  Common Shares,  the
                  number of Common Shares to be issued by the Corporation  under
                  this  Warrant  shall,  at the time of exercise of the right of
                  subscription and purchase under this Warrant  Certificate,  be
                  appropriately  adjusted and the Holder shall receive,  in lieu
                  of the  number of the  Common  Shares in  respect of which the
                  right to  purchase  is then  being  exercised,  the  aggregate
                  number of Common  Shares or other  securities or property that
                  the Holder would have been  entitled to receive as a result of
                  such  event,  if, on the record date  thereof,  the Holder had
                  been the  registered  holder of the number of Common Shares to
                  which the Holder was theretofore entitled upon the exercise of
                  the rights of the Holder hereunder.

         (c)      If and whenever at any time after the date hereof and prior to
                  the  Expiry  Time  there is a  capital  reorganization  of the
                  Corporation  or a  reclassification  or  other  change  in the
                  Common Shares (other than a Common Share  Reorganization) or a
                  consolidation  or merger or  amalgamation  of the  Corporation
                  with or into any other corporation or other entity (other than
                  a consolidation,  merger or amalgamation which does not result
                  in any  reclassification of the outstanding Common Shares or a
                  change of the  Common  Shares  into  other  securities),  or a
                  transfer  of all  or  substantially  all of the  Corporation's
                  assets to  another  corporation  or other  entity in which the
                  holders of Common Shares are entitled to receive shares, other
                  securities or other  property (any of such events being called
                  a  "Capital  Reorganization"),  the  Holder,  where he has not
                  exercised the right of  subscription  and purchase  under this
                  Warrant  Certificate  prior  to the  effective  date  of  such
                  Capital Reorganization, shall be entitled to receive and shall
                  accept,  upon the exercise of such right,  on such date or any
                  time thereafter,  for the same aggregate consideration in lieu
                  of the  number  of Common  shares to which he was  theretofore
                  entitled to subscribe for and purchase,  the aggregate  number
                  of shares or other  securities  or  property  which the Holder
                  would  have  been  entitled  to  receive  as a result  of such
                  Capital  Reorganization if, on the effective date thereof,  he
                  had been the registered  holder of the number of Common Shares
                  to which he was  theretofore  entitled  to  subscribe  for and
                  purchase.

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<PAGE>

         (d)      If and whenever at any time after the date hereof and prior to
                  the Expiry Time,  any of the events set out in section  10(a),
                  (b) or (c)  shall  occur  and the  occurrence  of  such  event
                  results in an adjustment of the Exercise Price pursuant to the
                  provisions  of this  section  10,  then the  number  of Common
                  Shares purchaseable pursuant to this Warrant shall be adjusted
                  contemporaneously with the adjustment of the Exercise Price by
                  multiplying   the  number  of  Common  Shares  then  otherwise
                  purchaseable  on  the  exercise  thereof  by a  fraction,  the
                  numerator  of which  shall  be the  Exercise  Price in  effect
                  immediately  prior to the  adjustment  and the  denominator of
                  which  shall  be  the  Exercise  Price   resulting  from  such
                  adjustment.

         (e)      If the  Corporation  takes any  action  affecting  its  Common
                  Shares to which the  foregoing  provisions of this section 10,
                  in the opinion of the board of directors  of the  Corporation,
                  acting  in good  faith,  are not  strictly  applicable,  or if
                  strictly  applicable would not fairly adjust the rights of the
                  Holder  against  dilution  in  accordance  with the intent and
                  purposes  hereof,  or would  otherwise  materially  affect the
                  rights  of the  Holder  hereunder,  then the  Corporation  may
                  execute  and  deliver  to  the  Holder  an  amendment   hereto
                  providing  for  an  adjustment  in  the  application  of  such
                  provisions  so as to adjust such rights as  aforesaid  in such
                  manner  as the  board  of  directors  of the  Corporation  may
                  determine to be equitable in the circumstances, acting in good
                  faith.  The  failure  of the  taking of action by the board of
                  directors of the  Corporation to so provide for any adjustment
                  on or prior to the effective  date of any action or occurrence
                  giving rise to such state of facts will be conclusive evidence
                  that  the  board  of  directors  has  determined  that  it  is
                  equitable to make no adjustment in the circumstances.

11.      The  following  rules  and  procedures   shall  be  applicable  to  the
         adjustments made pursuant to section 10:

         (a)      any Common  Shares  owned or held by or for the account of the
                  Corporation shall be deemed not be to outstanding except that,
                  for the  purposes of section 10, any Common  Shares owned by a
                  pension  plan or  profit  sharing  plan for  employees  of the
                  Corporation or any of its subsidiaries shall not be considered
                  to be owned or held by or for the account of the Corporation;

         (b)      no adjustment in the Exercise Price shall be required unless a
                  change of at least 1% of the  prevailing  Exercise Price would
                  result,  provided,  however, that any adjustment which, except
                  for the provisions of this section 11(b), would otherwise have
                  been required to be made,  shall be carried  forward and taken
                  into account in any subsequent adjustment;

         (c)      the adjustments  provided for in section 10 are cumulative and
                  shall  apply  to  successive   subdivisions,   consolidations,
                  dividends,  distributions  and other  events  resulting in any
                  adjustment under the provisions of such section;

         (d)      in the absence of a  resolution  of the board of  directors of
                  the  Corporation  fixing a record  date  for any  dividend  or
                  distribution  referred  to in section  10(a)(iii)  above,  the
                  Corporation  shall be deemed to have fixed as the record  date
                  therefor the date on which such  dividend or  distribution  is
                  effected;

         (e)      if the  Corporation  sets a record date to take any action and
                  thereafter  and before the taking of such action  abandons its
                  plan to take such action,  then no  adjustment to the Exercise
                  Price will be required by reason of the setting of such record
                  date;

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<PAGE>

         (f)      forthwith  after any  adjustment to the Exercise  Price or the
                  number of Common Shares purchaseable pursuant to the Warrants,
                  the  Corporation  shall provide to the Holder a certificate of
                  an officer of the  Corporation  certifying as to the amount of
                  such  adjustment  and, in reasonable  detail,  describing  the
                  event  requiring  and the manner of computing  or  determining
                  such adjustment; and

         (g)      any question that at any time or from time to time arises with
                  respect to the amount of any  adjustment to the Exercise Price
                  or  other   adjustment   pursuant   to  section  10  shall  be
                  conclusively  determined  by a firm of  independent  chartered
                  accountants (who may be the Corporation's  auditors)  selected
                  by the  board of  directors  of the  Corporation  and shall be
                  binding upon the Corporation and the Holder.

12.      Within 30 days after the effective  date or record date, as applicable,
         of any event  referred to in section 10, the  Corporation  shall notify
         the Holder of the particulars of such event and the estimated amount of
         any adjustment required as a result thereof.

13.      On the  happening  of each and every such event set out in section  10,
         the  applicable  provisions  of this  Warrant,  including  the Exercise
         Price,  shall, ipso facto, be deemed to be amended  accordingly and the
         Corporation  shall take all necessary  action so as to comply with such
         provisions as so amended.

14.      The  Corporation  shall not be  required  to deliver  certificates  for
         Common Shares while the share  transfer  books of the  Corporation  are
         properly closed,  having regard to the provisions of sections 10 and 11
         hereof,  prior to any  meeting of  shareholders  or for the  payment of
         dividends or for any other purpose and in the event of the surrender of
         any Warrant in accordance with the provisions  hereof and the making of
         any  subscription  and payment for the Common Shares called for thereby
         during any such period delivery of  certificates  for Common Shares may
         be  postponed  for not more  than  five (5) days  after the date of the
         re-opening of said share transfer books.  Provided,  however,  that any
         such  postponement  of  delivery  of  certificates   shall  be  without
         prejudice  to the  right of the  Holder  so  surrendering  the same and
         making  payment  during such period to receive after the share transfer
         books shall have been re-opened such certificates for the Common Shares
         called for, as the same may be adjusted  pursuant to sections 10 and 11
         hereof as a result of the  completion  of the event in respect of which
         the transfer books were closed.

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<PAGE>

15.      Subject as  hereinafter  provided,  all or any of the rights  conferred
         upon the Holder by the terms  hereof may be  enforced  by the Holder by
         appropriate   legal   proceedings.   No  recourse  under  or  upon  any
         obligation, covenant or agreement contained herein shall be had against
         any  shareholder  or  officer of the  Corporation  either  directly  or
         through the  Corporation,  it being expressly  agreed and declared that
         the obligations under the Warrants are solely corporate obligations and
         that no personal  liability  whatever shall attach to or be incurred by
         the  shareholders  or  officers  of the  Corporation  or any of them in
         respect  thereof,  any and all  rights and  claims  against  every such
         shareholder,  officer or director  being hereby  expressly  waived as a
         condition of and as a consideration for the issue of the Warrants.

16.      (a) The Warrants may not be assigned or transferred  except as provided
         herein and in accordance with and subject to the provisions of the 1933
         Act  and the  Rules  and  Regulations  promulgated  thereunder  and any
         applicable state,  Canadian, and provincial securities laws. Assignment
         of a Warrant will be permitted only (i) upon receipt by the Corporation
         of an opinion in form and  substance  satisfactory  to the  Corporation
         that the Warrant may be  transferred  pursuant to Rule 144  promulgated
         under  the 1933  Act,  or (ii) upon  confirmation  that a  registration
         statement  under the 1933 Act is at that time in effect with respect to
         the Warrant and that such transfer will not jeopardize the exemption or
         exemptions from registration  pursuant to which the Warrant was issued.
         Any purported transfer or assignment made other than in accordance with
         this Section 16 shall be null and void and of no force and effect.

         (b) Any assignment  permitted  hereunder  shall be made by surrender of
         this Warrant  Certificate to the  Corporation  at its principal  office
         with the  Assignment  Form  annexed  hereto  duly  executed  and  funds
         sufficient  to pay any  transfer  tax. In such event,  the  Corporation
         shall, without charge, execute and deliver a new Warrant Certificate in
         the  name of the  assignee  named  in  such  Assignment  Form,  and the
         Warrants  represented  by this Warrant  Certificate  shall  promptly be
         cancelled.  This Warrant  Certificate  may be divided or combined  with
         other Warrants which carry the same rights upon presentation thereof at
         the principal office of the Corporation  together with a written notice
         signed by the Holder thereof, specifying the names and denominations in
         which new Warrants are to be issued. The terms "Warrant" and "Warrants"
         as used herein include any Warrants in substitution  for or replacement
         of this Warrant,  or into which the Warrant represented by this Warrant
         Certificate may be divided or exchanged.

17.      The Holder may  subscribe  for and purchase any lesser number of Common
         Shares than the number of shares expressed in this Warrant Certificate.
         In the case of any  subscription  for a lesser  number of Common Shares
         than  expressed  in  this or any  successor  Warrant  Certificate  or a
         transfer  of any of the  Warrants  pursuant  to section  16, the Holder
         shall be  entitled  to receive  at no cost to the Holder a new  Warrant
         Certificate in respect of the balance of Warrants not then exercised or
         transferred.  Any new  Warrant  Certificate(s)  shall be  mailed to the
         Holder  or  assignee  by the  Corporation  or,  at its  direction,  the
         Transfer  Agent,  within  five  (5)  business  days of  receipt  by the
         Corporation  of  all  materials  required  by  sections  5  or  16,  as
         applicable.

18.      Each Holder of this Warrant,  the Warrant  Shares or any other security
         issued or issuable upon  exercise of this Warrant  shall  indemnify and
         hold harmless the  Corporation,  its  directors and officers,  and each
         person,  if any,  who  controls  the  Corporation,  against any losses,
         claims,  damages  or  liabilities,  joint  or  several,  to  which  the
         Corporation or any such director, officer or any such person may become
         subject  under the 1933 Act or statute or common  law,  insofar as such
         losses, claims, damages or liabilities,  or actions in respect thereof,
         arise out of or are based upon the  disposition  by such  Holder of the
         Warrant the Common Shares issuable upon the exercise of this Warrant in
         violation of the terms of this Warrant Certificate.

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<PAGE>

19.      If  any  Warrant  Certificate  becomes  stolen,   lost,   mutilated  or
         destroyed,  the  Corporation  shall,  on  such  terms  as it may in its
         discretion  acting  reasonably  impose,  issue  and sign a new  Warrant
         Certificate  of  like  denomination,  tenor  and  date  as the  Warrant
         Certificate so stolen, lost, mutilated or destroyed for delivery to the
         Holder.

20.      The  Corporation  and  the  Transfer  Agent  may  deem  and  treat  the
         registered  holder of any Warrant  Certificate as the absolute owner of
         the Warrants represented thereby for all purposes,  and the Corporation
         and neither the Corporation nor the Transfer Agent shall be affected by
         any notice or knowledge to the contrary except where the Corporation or
         the Transfer Agent is required to take notice by statute or by order of
         a court of  competent  jurisdiction.  A Holder shall be entitled to the
         rights evidenced by such Warrant  Certificate free from all equities or
         rights of set-off  or  counterclaim  between  the  Corporation  and the
         original  or any  intermediate  holder  thereof and all persons may act
         accordingly  and the  receipt by any such  Holder of the Common  Shares
         purchaseable  pursuant to such Warrant shall be a good discharge to the
         Corporation  and the  Transfer  Agent  for the  same  and  neither  the
         Corporation  nor the Transfer  Agent shall be bound to inquire into the
         title of any such Holder except where the  Corporation  or the Transfer
         Agent is  required  to take notice by statute or by order of a court of
         competent jurisdiction.

21.      Provisions  of  this  Warrant   Certificate  may  be  amended  and  the
         observance  thereof may be waived (either  generally or in a particular
         instance  and either  retroactively  or  prospectively),  only with the
         written  consent  of the  Corporation  and the  Holder of this  Warrant
         Certificate.

22.      All notices to be sent hereunder shall be deemed to be validly given to
         the  Holders  of the  Warrants  on the date of  receipt  if  personally
         delivered, sent by telecopier or overnight courier, charges prepaid, or
         five days after  deposit in the United  States mail,  by  registered or
         certified  mail,  postage  prepaid,  addressed to such holders at their
         post office  addresses  appearing  in the  register of Warrant  holders
         caused to be  maintained  by the  Corporation.  All  notices to be sent
         hereunder shall be deemed to be validly given to the Corporation on the
         date  of  receipt  if  personally  delivered,  sent  by  telecopier  or
         overnight courier,  charges prepaid,  or five days after deposit in the
         United States mail, by registered or certified mail,  postage  prepaid,
         addressed to the  Corporation at 204 Edison Way, Reno,  Nevada 89502 or
         such other address as the Corporation  shall have designated by written
         notice to such registered owner.

23.      This  Warrant  shall be governed by the laws of the State of Nevada and
         the  federal  laws of the  United  States  applicable  therein  (within
         reference to the conflict of laws provisions thereof).

24.      Notwithstanding  anything to the contrary herein contained,  the Holder
         may not exercise any of the Warrants to the extent that,  giving effect
         to such exercises,  the number of Common Shares then beneficially owned
         by the Holder, as determined under Section 13(d) of the Exchange Act of
         1934, as amended, exceeds 9.999% of the then total number of issued and
         outstanding Common Shares (including for such purpose the Common Shares
         issuable upon such exercise). Each delivery of an exercise notice under
         this Warrant Certificate will constitute a representation by the Holder
         that it has  evaluated  the  limitation  set forth in this  letter  and
         determined that issuance of the full number of Common Shares  requested
         in such exercise  notice is permitted  hereunder.  The exercise cap set
         forth  hereunder  shall not restrict the number of Common  Shares which

                                       8
<PAGE>

         the Holder may receive or  beneficially  own in order to determine  the
         amount of securities or other consideration that the Holder may receive
         in  the  event  of  a  merger   or  other   business   combination   or
         reclassification involving the Corporation.

         The  Corporation is not  responsible  for tracking (and has no means to
         track) the number of Common  Shares  beneficially  owned by the Holder,
         and neither the Corporation nor the Corporation's counsel has provided,
         or has any  obligation to provide,  advice to the Holder  regarding the
         Holders  ownership  of  Common  Shares  or  compliance  with  governing
         securities  laws.  The  Corporation  is not  liable  for any  civil  or
         criminal  damages or sanctions  that may be imposed upon or against the
         Holder  as a  result  of  the  Holder's  failure  to  comply  with  the
         provisions  of this  Warrant or governing  state or federal  securities
         laws.  Notwithstanding  anything  in this  Warrant  Certificate  to the
         contrary,  this  Section 24 shall not be subject  to  amendment  by the
         parties hereto.

               [intentionally left blank; signature page follows]

                                       9
<PAGE>

         IN WITNESS WHEREOF the Corporation has caused this Series 2003C Warrant
Certificate to be signed by its duly authorized officer.

         DATED as of the _____________ day of ______, ____.

                                       ALTAIR NANOTECHNOLOGIES INC.

                                       By: _____________________________________
                                       Its: ____________________________________

                                       10
<PAGE>

                                SUBSCRIPTION FORM

TO BE COMPLETED UPON EXERCISE:

The undersigned hereby subscribes for  ________________  common shares of Altair
Nanotechnologies  Inc.  according to the terms and  conditions  set forth in the
annexed Warrant  Certificate (or such number of other  securities or property to
which such  warrant  entitles  the  undersigned  to acquire  under the terms and
conditions  set  forth in the  annexed  warrant  certificate).  The  undersigned
represents  that the common  shares being  acquired upon exercise of the Warrant
Certificate are being acquired for the account of the undersigned for investment
and not with a view to,  or for  resale in  connection  with,  the  distribution
thereof and that the  undersigned  has no present  intention of  distributing or
reselling such shares.  The subscriber  acknowledges  and agrees that any legend
required  the  Warrant  Certificate  or by  applicable  law may be placed on any
certificates representing common shares delivered to the undersigned.

         Address for Delivery of Shares:    ____________________________________
                                            ____________________________________
                                            ____________________________________
                                            ____________________________________

                                            Attention: _________________________

         Tendered (U.S. $_____ per share) Exercise Price $______________________

         Dated at ________________, this _______ day of ______________, _______.

                                         _______________________________________
                                         Holder's Name

                                         _______________________________________
                                         Authorized Signature

                                         _______________________________________
                                         Title (if applicable)

Signature guaranteed:

                                       11
<PAGE>

                                 ASSIGNMENT FORM

TO BE COMPLETED IF WARRANTS ARE TO BE ASSIGNED:

TO:      ALTAIR NANOTECHNOLOGIES INC.
         204 Edison Way
         Reno, Nevada 89502

         By signing below, the undersigned represents, warrants and certifies to
Altair Nanotechnologies Inc. as follows:

         (a)  the  undersigned  is  the  record  and  beneficial  owner  of  the
         Warrant(s) represented by the Warrant Certificate attached hereto; and

         (b) either
                  _____ (i) attached  hereto is an opinion in form and substance
         satisfactory to the  Corporation  that the Warrant(s) to be transferred
         hereby may be transferred  pursuant to Rule 144  promulgated  under the
         1933 Act, or

                  ______ (ii) a registration  statement under the 1933 Act is at
         that time in effect with respect to the  Warrant(s)  to be  transferred
         hereby  and  transfer  of  such  Warrant(s)  will  not  jeopardize  the
         exemption  or  exemptions  from  registration  pursuant  to which  such
         Warrant(s) were issued.

By signing below,  the  undersigned  hereby  transfers,  assigns and conveys all
right,  title and interest in and to _________  of the Warrants  represented  by
this Warrant Certificate to ____________________________________________________
residing at ______________________________________________________  for good and
valuable consideration. You are hereby instructed to take the necessary steps to
effect this transfer.

         Dated at ___________________, this ______ day of _____________, _____.

                  Witness:          )       ____________________________________
                                    )       Holder's Name )
                                    )
                                    )       ____________________________________
                                    )       Authorized Signature )
                                    )
                                    )       ____________________________________
                                    )       Title (if applicable) )
                                    )
Signature guaranteed:               )

                                       12REGISTRATION RIGHTS AGREEMENT

                  This REGISTRATION RIGHTS AGREEMENT (this  "Agreement"),  dated
as of May 16, 2003, is entered into by and among Altair Nanotechnologies Inc., a
corporation  incorporated  under the Business  Corporation  Act of Canada,  with
headquarters  located at 1725 Sheridan  Avenue,  Suite 140, Cody,  Wyoming 82414
(the "Company"),  and the undersigned  buyers (each, a "Buyer" and collectively,
the "Buyers").

                                    WHEREAS:

         A. In connection  with the Stock Purchase and  Subscription  Agreements
between  the Company and each of the  parties  executed in  connection  with the
Confidential  Offering  Summary  dated May 15,  2003 (the  "Securities  Purchase
Agreement"),  the Company has agreed, subsequent to the date of the Confidential
Offering  Summary,  (i) to issue and sell to the Buyers  shares of the Company's
common stock,  no par value (the "Common Stock") and (ii) to issue Warrants (the
"Warrants")  which will be  exercisable  to purchase  Company  Common Stock (the
"Warrant Shares"); and

         B. To induce the Buyers to execute and deliver the Securities Purchase
Agreement,  the Company has agreed to provide certain  registration rights under
the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations
thereunder, or any similar successor statute (collectively, the "1933 Act"), and
applicable state securities laws.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained  herein  and other  good and  valuable  consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  the Company and the
Buyers hereby agree as follows:

1.       DEFINITIONS.
         ------------

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

         a. "Investor" means a Buyer, any transferee or assignee thereof to whom
a Buyer  assigns its rights under this  Agreement and who agrees to become bound
by the  provisions  of this  Agreement  in  accordance  with  Section 10 and any
transferee  or assignee  thereof to whom a  transferee  or assignee  assigns its
rights under this  Agreement and who agrees to become bound by the provisions of
this Agreement in accordance with Section 10.

         b.  "Person"  means a  corporation,  a limited  liability  company,  an
association,  a partnership,  an  organization,  a business,  an  individual,  a
governmental or political subdivision thereof or a governmental agency.

         c. "Register," "registered," and "registration" refer to a registration
effected by preparing and filing one or more Registration Statements (as defined
below) in  compliance  with the 1933 Act and pursuant to Rule 415 under the 1933
Act or any  successor  rule  providing  for offering  securities on a continuous
basis ("Rule 415"),  and the  declaration or ordering of  effectiveness  of such
Registration   Statement(s)  by  the  United  States   Securities  and  Exchange
Commission (the "SEC").

                                       1
<PAGE>

         d.  "Registrable  Securities"  means the Common Stock  purchased by the
Buyers  pursuant to the  Securities  Purchase  Agreement and the Warrant  Shares
issued or issuable upon exercise of the Warrants and any shares of capital stock
issued or issuable with respect to such Common Stock, Warrants or Warrant Shares
as a result of any stock  split,  stock  dividend,  recapitalization,  exchange,
anti-dilution rights,  liquidated damages payment or similar event or otherwise,
without regard to any limitation on the exercise of the Warrants.

         e.  "Registration  Statement"  means a  registration  statement  of the
Company filed pursuant to Rule 415 under the 1933 Act.

Capitalized  terms used herein and not otherwise  defined  herein shall have the
respective meanings set forth in the Securities Purchase Agreement.

2.       REGISTRATION.
         -------------

         a. Mandatory  Registration.  The Company shall prepare, and, as soon as
practicable, but in no event later than thirty (30) calendar days after the date
hereof,  file with the SEC a Registration  Statement or Registration  Statements
(as is necessary) on Form S-3 (or if such form is  unavailable,  such other form
as is available for registration)  covering the resale of all of the Registrable
Securities.  The initial  Registration  Statement prepared pursuant hereto shall
register for resale at least that number of shares of Company Common Stock equal
to the number of Registrable Securities as of the date immediately preceding the
date the  Registration  Statement  is initially  filed with the SEC,  subject to
adjustment as provided in Section  3(b).  The Company shall use its best efforts
to have the  Registration  Statement  declared  effective  by the SEC as soon as
practicable,  but in no event later than one hundred  twenty (120) calendar days
after the date hereof.

         b. Piggy-Back Registrations.  If at any time prior to the expiration of
the  Registration  Period (as defined in Section  3(a)) the Company  proposes to
file with the SEC a Registration  Statement  relating to an offering for its own
account  or the  account of others  under the 1933 Act of any of its  securities
(other than on Form S-4 or Form S-8 (or their equivalents at such time) relating
to  securities to be issued solely in  connection  with any  acquisition  of any
entity or business or equity securities issuable in connection with stock option
or other employee benefit plans),  if all of the Registrable  Securities are not
then registered under a currently effective Registration Statement,  the Company
shall promptly send to each Investor  written notice of the Company's  intention
to file a  Registration  Statement  and of such  Investor's  rights  under  this
Section 2(b) and, if within twenty (20) days after receipt of such notice,  such
Investor  shall so  request  in  writing,  the  Company  shall  include  in such
Registration  Statement  all or any  part  of the  Registrable  Securities  such
Investor  requests  to be  registered,  subject to the  priorities  set forth in
Section 2(b) below.  No right to registration  of Registrable  Securities  under
this Section 2(b) shall be construed to limit any  registration  required  under
Section  2(a).  The  obligations  of the Company  under this Section 2(b) may be
waived by the Buyers.  If an offering  in  connection  with which an Investor is
entitled to registration  under this Section 2(b) is an  underwritten  offering,
then  each  Investor   whose   Registrable   Securities  are  included  in  such

                                       2
<PAGE>

Registration  Statement shall, unless otherwise agreed by the Company, offer and
sell such  Registrable  Securities in an  underwritten  offering  using the same
underwriter or underwriters and, subject to the provisions of this Agreement, on
the same terms and  conditions as other shares of Company  common stock included
in such underwritten  offering.  If a registration pursuant to this Section 2(b)
is to be an underwritten public offering and the managing  underwriter(s) advise
the Company in writing that in their reasonable good faith opinion, marketing or
other  factors  dictate  that a  limitation  on the  number of shares of Company
common stock which may be included in the Registration Statement is necessary to
facilitate  and not  adversely  affect the proposed  offering,  then the Company
shall  include in such  registration:  (1) first,  all  securities  the  Company
proposes  to sell for its own  account;  (2)  second,  up to the full  number of
securities  proposed  to be  registered  for  the  account  of  the  holders  of
securities  entitled  to  inclusion  of  their  securities  in the  Registration
Statement by reason of demand registration rights; and (3) third, the securities
requested to be  registered  by the  Investors  and other  holders of securities
entitled to participate in the registration,  as of the date hereof,  drawn from
them pro rata based on the number  each has  requested  to be  included  in such
registration.

         c.  Allocation  of  Registrable  Securities.   The  initial  number  of
Registrable  Securities included in any Registration Statement and each increase
in the number of Registrable  Securities included therein shall be allocated pro
rata among the Investors based on the number of Registrable  Securities held, or
which could be held,  by each  Investor at the time the  Registration  Statement
covering such initial  number of Registrable  Securities or increase  thereof is
declared  effective by the SEC. In the event that an Investor sells or otherwise
transfers any of such Person's Registrable Securities,  each transferee shall be
allocated  a pro  rata  portion  of the then  remaining  number  of  Registrable
Securities  included in such  Registration  Statement for such  transferor.  Any
shares of Common Stock  included in a  Registration  Statement  and which remain
allocated to any Person which ceases to hold any Registrable Securities shall be
allocated  to  the  remaining  Investors,  pro  rata  based  on  the  number  of
Registrable Securities then held by such Investors.

         d. Legal  Counsel.  Subject to Section 5 hereof,  each Buyer shall have
the right to select  one  legal  counsel  to review  and  oversee  any  offering
pursuant  to this  Section 2 ("Legal  Counsel").  The Company  shall  reasonably
cooperate with Legal Counsel in performing the Company's  obligations under this
Agreement.

         e.  Ineligibility  for Form  S-3.  In the  event  that  Form S-3 is not
available for any registration of Registrable Securities hereunder,  the Company
shall (i) register the sale of the Registrable Securities on another appropriate
form and (ii)  undertake to register the  Registrable  Securities on Form S-3 as
soon as such form is available,  provided  that the Company  shall  maintain the
effectiveness of the Registration  Statement then in effect until such time as a
Registration  Statement on Form S-3 covering the Registrable Securities has been
declared effective by the SEC.

         f. Rule 416. The Company and the Investors each  acknowledge  that each
Registration  Statement  prepared  in  accordance  hereunder  shall  include  an
indeterminate  number of Registrable  Securities  pursuant to Rule 416 under the
1933 Act so as to cover any and all  Registrable  Securities  which  may  become
issuable (i) to prevent dilution resulting from stock splits, stock dividends or
similar   transactions   and  (ii)  if  permitted  by  law,  by  reason  of  the

                                       3
<PAGE>

anti-dilution  provisions contained in the Warrants in accordance with the terms
thereof (collectively,  the "Rule 416 Securities").  In this regard, the Company
agrees to use all  reasonable  efforts  to  ensure  that the  maximum  number of
Registrable  Securities  which may be registered  pursuant to Rule 416 under the
1933 Act are covered by each  Registration  Statement and,  absent guidance from
the SEC or other definitive authority to the contrary, the Company shall use all
reasonable efforts to affirmatively support and to not take any position adverse
to the position that each  Registration  Statement filed hereunder covers all of
the  Rule 416  Securities.  If the  Company  determines  that  the  Registration
Statement  filed  hereunder does not cover all of the Rule 416  Securities,  the
Company shall  immediately (i) provide to each Investor written evidence setting
forth the basis for the Company's  position and the authority  therefor and (ii)
prepare  and  file  an  amendment  to  such  Registration  Statement  or  a  new
Registration Statement in accordance with Section 2(g).

         g. Sufficient Number of Shares  Registered.  In the event the number of
shares  available under a Registration  Statement filed pursuant to Section 2(a)
is  insufficient  to cover all of the  Registrable  Securities  or an Investor's
allocated  portion of the Registrable  Securities  pursuant to Section 2(c), the
Company  shall  amend the  Registration  Statement,  or file a new  Registration
Statement (on the short form available therefor, if applicable),  or both, so as
to cover at least one hundred  twenty-five  percent  (125%) of such  Registrable
Securities in each case, as soon as practicable, but in any event not later than
fifteen (15) days after the necessity  therefor arises. The Company shall use it
best efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable  following the filing thereof.  For purposes of
the foregoing  provision,  the number of shares  available  under a Registration
Statement  shall  be  deemed  "insufficient  to  cover  all of  the  Registrable
Securities" if at any time the number of Registrable  Securities is greater than
the  number  of  shares  of  Common  Stock   available  for  resale  under  such
Registration  Statement.  For  purposes  of the  calculation  set  forth  in the
foregoing sentence, any restrictions on the exercisability of the Warrants shall
be  disregarded  and such  calculation  shall  assume that the Warrants are then
exercisable into shares of Common Stock.

3.       RELATED OBLIGATIONS.
         -------------------

         Whenever an Investor has requested that any  Registrable  Securities be
registered  pursuant to Section 2(b) or at such time as the Company is obligated
to file a Registration  Statement with the SEC pursuant to Section 2(a) or 2(g),
the  Company  will  use its best  efforts  to  effect  the  registration  of the
Registrable  Securities in accordance  with the intended  method of  disposition
thereof and, pursuant thereto, the Company shall have the following obligations:

         a.  Registration.  The Company shall promptly prepare and file with the
SEC a Registration  Statement with respect to the Registrable  Securities (on or
prior to the  thirtieth  (30th)  calendar  day  after  the date  hereof  for the
registration  of  Registrable  Securities  pursuant to Section 2(a)) and use its
best efforts to cause such  Registration  Statement  relating to the Registrable
Securities to become  effective as soon as possible after such filing (but in no
event later than one hundred  twenty (120)  calendar  days after the date hereof
for the  registration of Registrable  Securities  pursuant to Section 2(a)), and
keep such  Registration  Statement  effective  pursuant to Rule 415 at all times
until the earlier of (i) the date as of which the  Investors may sell all of the
Registrable  Securities without restriction  pursuant to Rule 144(k) promulgated
under  the 1933 Act (or  successor  thereto)  or (ii) the date on which  (A) the

                                       4
<PAGE>

Investors  shall have sold all the  Registrable  Securities  and (B) none of the
Warrants  is  outstanding  (the  "Registration   Period"),   which  Registration
Statement  (including  any amendments or  supplements  thereto and  prospectuses
contained  therein) shall not contain any 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 in which they were
made, not misleading.

         b.  Amendments.  The Company  shall  prepare and file with the SEC such
amendments   (including   post-effective   amendments)   and  supplements  to  a
Registration   Statement  and  the  prospectus  used  in  connection  with  such
Registration  Statement,  which  prospectus is to be filed  pursuant to Rule 424
promulgated  under the 1933 Act, as may be necessary  to keep such  Registration
Statement  effective at all times during the  Registration  Period,  and, during
such  period,  comply with the  provisions  of the 1933 Act with  respect to the
disposition  of all  Registrable  Securities  of the  Company  covered  by  such
Registration  Statement  until such time as all of such  Registrable  Securities
shall  have  been  disposed  of in  accordance  with  the  intended  methods  of
disposition by the seller or sellers  thereof as set forth in such  Registration
Statement.

         c.  Disclosure  Materials.  The Company  shall furnish to each Investor
whose Registrable Securities are included in any Registration Statement, without
charge,  upon request (i) promptly after the same is prepared and filed with the
SEC,  at least  one copy of such  Registration  Statement  and any  amendment(s)
thereto,   including   financial   statements  and   schedules,   all  documents
incorporated therein by reference and all exhibits,  (ii) upon the effectiveness
of any Registration  Statement,  (10) copies of the prospectus  included in such
Registration Statement and all amendments and supplements thereto (or such other
number of copies as such Investor may  reasonably  request) and (iii) such other
documents,  including  copies of any  preliminary or final  prospectus,  as such
Investor may  reasonably  request from time to time in order to  facilitate  the
disposition of the Registrable Securities owned by such Investor.

         d. State Securities  Laws. The Company shall use reasonable  efforts to
(i) register and qualify the  Registrable  Securities  covered by a Registration
Statement under such other  securities or "blue sky" laws of such  jurisdictions
in the United States as Legal Counsel or any Investor reasonably requests,  (ii)
prepare   and  file  in  those   jurisdictions,   such   amendments   (including
post-effective   amendments)   and   supplements  to  such   registrations   and
qualifications as may be necessary to maintain the effectiveness  thereof during
the  Registration  Period,  (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Registration  Period and (iv) take all other  actions  reasonably  necessary  or
advisable to qualify the Registrable  Securities for sale in such jurisdictions;
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith  or as a  condition  thereto  to (x)  qualify  to do  business  in any
jurisdiction  where it would not  otherwise  be required to qualify but for this
Section 3(d), (y) subject itself to general taxation in any such jurisdiction or
(z) file a general consent to service of process in any such  jurisdiction.  The
Company  shall  promptly  notify  Legal  Counsel  and each  Investor  who  holds
Registrable  Securities of the receipt by the Company of any  notification  with
respect to the suspension of the  registration  or  qualification  of any of the
Registrable  Securities  for sale under the securities or "blue sky" laws of any
jurisdiction  in the  United  States  or its  receipt  of  actual  notice of the
initiation or threatening of any proceeding for such purpose.

                                       5
<PAGE>

         e. Underwriting  Agreement.  In the event Investors who hold a majority
of the Registrable  Securities being offered in the offering select underwriters
for the offering, the Company shall enter into and perform its obligations under
an  underwriting  agreement,  in usual and customary  form,  including,  without
limitation,  customary  indemnification and contribution  obligations,  with the
underwriters of such offering.

         f.  Notification.  As promptly as  practicable  after becoming aware of
such event,  the Company shall notify Legal Counsel and each Investor in writing
of the happening of any event as a result of which the prospectus  included in a
Registration  Statement,  as then in effect,  includes an untrue  statement of a
material fact or omission 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 promptly  prepare a  supplement  or
amendment to such  Registration  Statement  to correct such untrue  statement or
omission,  and deliver ten (10) copies of such  supplement or amendment to Legal
Counsel and each  Investor (or such other  number of copies as Legal  Counsel or
such Investor may reasonably  request).  The Company shall also promptly  notify
Legal  Counsel  and  each  Investor  in  writing  (i) when a  prospectus  or any
prospectus  supplement or  post-effective  amendment has been filed,  and when a
Registration  Statement or any  post-effective  amendment  has become  effective
(notification of such effectiveness shall be delivered to Legal Counsel and each
Investor by  facsimile  on the same day of such  effectiveness  and by overnight
mail),  (ii) of any  request  by the  SEC for  amendments  or  supplements  to a
Registration Statement or related prospectus or related information and (iii) of
the Company's  reasonable  determination  that a  post-effective  amendment to a
Registration Statement would be appropriate.

         g. Stop-Order and Suspension. The Company shall use its best efforts to
prevent the issuance of any stop order or other suspension of effectiveness of a
Registration  Statement,  or the suspension of the  qualification  of any of the
Registrable  Securities  for sale in any  jurisdiction  and, if such an order or
suspension  is issued,  to obtain the  withdrawal of such order or suspension at
the earliest  possible  moment and to notify Legal Counsel and each Investor who
holds  Registrable  Securities  being sold (and, in the event of an underwritten
offering,  the  managing  underwriters)  of the  issuance  of such order and the
resolution  thereof or its receipt of actual notice of the  initiation or threat
of any proceeding for such purpose.

         h. Requested  Information.  At the request of any Investor, the Company
shall  furnish  to  such  Investor,  on the  date  of the  effectiveness  of the
Registration  Statement  and  thereafter  from time to time on such  dates as an
Investor may  reasonably  request (i) if required by an  underwriter,  a letter,
dated such date, from the Company's  independent certified public accountants in
form and  substance as is  customarily  given by  independent  certified  public
accountants to underwriters in an underwritten public offering, addressed to the
underwriters,  and (ii) if required by an underwriter,  an opinion,  dated as of
such date, of counsel representing the Company for purposes of such Registration
Statement,  in  form,  scope  and  substance  as  is  customarily  given  in  an
underwritten public offering, addressed to the underwriters and the Investors.

         i.  Inspection.  In connection with the preparation of any Registration
Statement,  the Company shall make available for inspection by (i) any Investor,
(ii) Legal  Counsel,  (iii) any  underwriter  participating  in any  disposition
pursuant to a  Registration  Statement,  (iv) one firm of  accountants  or other

                                       6
<PAGE>

agents retained by the Investors and (v) one firm of attorneys  retained by such
underwriters (collectively,  the "Inspectors") all pertinent financial and other
records,  and  pertinent  corporate  documents  and  properties  of the  Company
(collectively,  the "Records"),  as shall be reasonably deemed necessary by each
Inspector,  and cause the Company's officers,  directors and employees to supply
all information which any Inspector may reasonably request;  provided,  however,
that  each  Inspector  shall  hold in strict  confidence  and shall not make any
disclosure  (except to an  Investor)  or use of any Record or other  information
which the  Company  determines  in good faith to be  confidential,  and of which
determination the Inspectors are so notified,  unless (a) the disclosure of such
Records is  necessary  to avoid or correct a  misstatement  or  omission  in any
Registration  Statement  or is  otherwise  required  under the 1933 Act, (b) the
release of such Records is ordered pursuant to a final,  non-appealable subpoena
or order from a court or government  body of competent  jurisdiction  or (c) the
information  in such  Records has been made  generally  available  to the public
other than by  disclosure  in violation of this or any other  agreement of which
the Inspector has knowledge.  Each Investor agrees that it shall,  upon learning
that disclosure of such Records is sought in or by a court or governmental  body
of competent  jurisdiction  or through  other means,  give prompt  notice to the
Company and allow the Company, at its expense,  to undertake  appropriate action
to prevent  disclosure  of, or to obtain a  protective  order for,  the  Records
deemed confidential.

         j. Confidential  Information.  The Company shall hold in confidence and
not make any  disclosure of information  concerning an Investor  provided to the
Company  unless (i)  disclosure of such  information is necessary to comply with
federal or state  securities  laws,  (ii) the disclosure of such  information is
necessary  to avoid or correct a  misstatement  or omission in any  Registration
Statement,  (iii) the  release  of such  information  is ordered  pursuant  to a
subpoena or other final,  non-appealable order from a court or governmental body
of  competent  jurisdiction  or (iv) such  information  has been made  generally
available to the public other than by disclosure in violation of this  Agreement
or any other  agreement.  The Company  agrees that it shall,  upon learning that
disclosure of such information concerning an Investor is sought in or by a court
or  governmental  body of competent  jurisdiction  or through other means,  give
prompt  written  notice  to  such  Investor  and  allow  such  Investor,  at the
Investor's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

         k. Listing.  The Company  shall use  reasonable  efforts  either to (i)
cause all the Registrable  Securities covered by a Registration  Statement to be
listed on each  securities  exchange  on which  securities  of the same class or
series  issued by the  Company are then  listed,  if any, if the listing of such
Registrable  Securities  is then  permitted  under the rules of such exchange or
(ii) secure designation and quotation of all the Registrable  Securities covered
by the  Registration  Statement  on the Nasdaq  National  Market  System or, if,
despite the Company's best efforts to satisfy the preceding  clause (i) or (ii),
the Company is unsuccessful  in satisfying the preceding  clause (i) or (ii), to
secure  the  inclusion  for  quotation  on The Nasdaq  SmallCap  Market for such
Registrable Securities and, without limiting the generality of the foregoing, to
arrange for at least two market makers to register with the National Association
of Securities Dealers, Inc. as such with respect to such Registrable Securities.
"Reasonable  efforts"  shall  not  include  approving  a  reverse  stock  split,
consolidation  or  similar  transaction.  The  Company  shall  pay all  fees and
expenses in connection with satisfying its obligation under this Section 3(l).

                                       7
<PAGE>

         l.  Certificates.  The Company shall  cooperate  with the Investors who
hold Registrable  Securities being offered to facilitate the timely  preparation
and delivery of certificates (not bearing any restrictive  legend)  representing
the Registrable  Securities to be offered  pursuant to a Registration  Statement
and enable such certificates to be in such denominations or amounts, as the case
may be, as the Investors may reasonably  request and registered in such names as
the Investors may request.

         m.  Transfer  Agent.  The Company  shall  provide a transfer  agent and
registrar of all such  Registrable  Securities not later than the effective date
of such Registration Statement.

         n. Underwriter  Requests.  If requested by the managing underwriters or
an Investor,  the Company  shall:  (i)  immediately  incorporate in a prospectus
supplement  or  post-effective   amendment  such  information  as  the  managing
underwriters  and the Investors agree should be included therein relating to the
sale and distribution of Registrable Securities,  including, without limitation,
information  with respect to the number of Registrable  Securities being sold to
such  underwriters,  the purchase price being paid therefor by such underwriters
and any other terms of the underwritten (or best efforts underwritten)  offering
of the  Registrable  Securities  to be sold  in such  offering;  (ii)  make  all
required filings of such prospectus  supplement or  post-effective  amendment as
soon as notified of the matters to be incorporated in such prospectus supplement
or  post-effective  amendment;  and (iii)  supplement or make  amendments to any
Registration  Statement if requested by an Investor or any  underwriter  of such
Registrable Securities.

         o. Best  Efforts.  The Company  shall use its best efforts to cause the
Registrable  Securities covered by the applicable  Registration  Statement to be
registered with or approved by such other  governmental  agencies or authorities
as  may  be  necessary  to  consummate  the  disposition  of  such   Registrable
Securities.

         p.  Compliance  With Laws.  The Company  shall  otherwise  use its best
efforts  to  comply  with all  applicable  rules and  regulations  of the SEC in
connection  with any  registration  hereunder and the Company shall use its best
efforts  to file  with the SEC in a timely  manner  all  reports  and  documents
required  of the  Company  under  the 1933 Act and the 1934 Act (as  defined  in
Section 6(a)).

         q. Confirmation.  Upon request, within five (5) business days after the
Registration  Statement  which  includes the  Registrable  Securities is ordered
effective by the SEC, the Company shall  deliver,  and shall cause legal counsel
for  the  Company  to  deliver,  to the  transfer  agent  for  such  Registrable
Securities  (with  copies to the  Investors  whose  Registrable  Securities  are
included in such  Registration  Statement)  confirmation  that the  Registration
Statement has been declared  effective by the SEC in the form attached hereto as
Exhibit A.

         r.  Disposition.  The Company shall take all other  reasonable  actions
necessary to expedite and facilitate disposition by the Investors of Registrable
Securities pursuant to a Registration Statement.

                                       8
<PAGE>

4.       OBLIGATIONS OF THE INVESTORS.
         ----------------------------

         a. At least seven (7) days prior to the first  anticipated  filing date
of the Registration Statement, the Company shall notify each Investor in writing
of the information the Company requires from each such Investor if such Investor
elects to have any of such Investor's  Registrable  Securities  included in such
Registration  Statement. It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement with respect
to the Registrable  Securities of a particular Investor that such Investor shall
furnish to the Company such  information  regarding  itself and the  Registrable
Securities held by it as shall be reasonably required to effect the registration
of such  Registrable  Securities  and shall execute such documents in connection
with such registration as the Company may reasonably request.

         b. Each  Investor  by such  Investor's  acceptance  of the  Registrable
Securities  agrees to cooperate with the Company as reasonably  requested by the
Company  in  connection  with the  preparation  and  filing of any  Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such  Investor's  election  to  exclude  all  of  such  Investor's   Registrable
Securities from such Registration Statement.

         c. In the event any Investor  elects to participate in an  underwritten
public  offering  pursuant to Section 2, each such Investor agrees to enter into
and perform such  Investor's  obligations  under an underwriting  agreement,  in
usual   and   customary   form,   including,   without   limitation,   customary
indemnification and contribution  obligations,  with the managing underwriter of
such offering and take such other actions as are reasonably required in order to
expedite or facilitate the disposition of the Registrable Securities.

5.       EXPENSES OF REGISTRATION.
         ------------------------

         All  reasonable  expenses,   other  than  underwriting   discounts  and
commissions,   incurred   in   connection   with   registrations,   filings   or
qualifications pursuant to Sections 2 and 3, including,  without limitation, all
registration, listing and qualifications fees, printers and accounting fees, and
fees  and   disbursements   of  counsel  for  the  Company  (but  not  fees  and
disbursements of Legal Counsel) shall be paid by the Company.

6.       INDEMNIFICATION.
         ---------------

         In the event any Registrable  Securities are included in a Registration
Statement under this Agreement:

         a. To the fullest extent permitted by law, the Company will, and hereby
does,  indemnify,  hold  harmless  and  defend  each  Investor  who  holds  such
Registrable Securities, the directors,  officers,  partners,  employees, agents,
representatives  of, and each Person,  if any, who controls any Investor  within
the meaning of the 1933 Act or the  Securities  Exchange Act of 1934, as amended
(the  "1934  Act"),  and any  underwriter  (as  defined in the 1933 Act) for the
Investors,  and the  directors  and officers  of, and each  Person,  if any, who
controls,  any such  underwriter  within the meaning of the 1933 Act or the 1934
Act (each,  an  "Indemnified  Person"),  against  any losses,  claims,  damages,
liabilities,  judgments,  fines,  penalties,  charges,  costs,  attorneys' fees,
amounts  paid  in  settlement  or  expenses,  joint  or  several  (collectively,
"Indemnified  Damages"),  incurred in investigating,  preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the

                                       9
<PAGE>

foregoing  by or  before  any  court or  governmental,  administrative  or other
regulatory  agency,  body or the SEC, whether pending or threatened,  whether or
not an Indemnified Person is or may be a party thereto (collectively, "Claims"),
to which any of them may become  subject  insofar as such  Claims (or actions or
proceedings,  whether commenced or threatened,  in respect thereof) arise out of
or are based upon:  (i) any untrue  statement or alleged  untrue  statement of a
material  fact  in a  Registration  Statement  or any  post-effective  amendment
thereto  or in any  filing  made in  connection  with the  qualification  of the
offering  under the securities or other "blue sky" laws of any  jurisdiction  in
which Registrable Securities are offered ("Blue Sky Filing"), or the omission or
alleged  omission  to state a material  fact  required  to be stated  therein or
necessary  to make the  statements  therein  not  misleading,  (ii)  any  untrue
statement  or alleged  untrue  statement  of a material  fact  contained  in any
preliminary  prospectus if used prior to the effective date of such Registration
Statement, or contained in the final prospectus (as amended or supplemented,  if
the Company files any amendment  thereof or supplement  thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make the statements made therein,  in light of the circumstances under which the
statements  therein were made,  not  misleading,  (iii) any violation or alleged
violation  by the  Company  of the  1933  Act,  the 1934  Act,  any  other  law,
including,  without  limitation,  any  state  securities  law,  or any  rule  or
regulation  thereunder  relating  to  the  offer  or  sale  of  the  Registrable
Securities  pursuant to a Registration  Statement or (iv) any material violation
of this Agreement (the matters in the foregoing  clauses (i) through (iv) being,
collectively,  "Violations"). The Company shall reimburse the Investors and each
such underwriter or controlling  person,  promptly as such expenses are incurred
and  are due and  payable,  for any  legal  fees or  other  reasonable  expenses
incurred by them in connection with  investigating  or defending any such Claim.
Notwithstanding  anything to the contrary contained herein, the  indemnification
agreement  contained in this Section 6(a):  (i) shall not apply to a Claim by an
Indemnified  Person  arising  out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company by such Indemnified  Person or underwriter for such  Indemnified  Person
expressly  for  use in  connection  with  the  preparation  of the  Registration
Statement  or  any  such  amendment  thereof  or  supplement  thereto,  if  such
prospectus  was timely made  available by the Company  pursuant to Section 3(d);
(ii) with respect to any preliminary prospectus,  shall not inure to the benefit
of any such Person from whom the Person  asserting any such Claim  purchased the
Registrable  Securities  that are the subject  thereof (or to the benefit of any
Person  controlling such Person) if the untrue statement or omission of material
fact contained in the preliminary prospectus was corrected in the prospectus, as
then amended or  supplemented,  if such  prospectus was timely made available by
the Company  pursuant to Section 3(d), and the  Indemnified  Person was promptly
advised in writing not to use the incorrect  prospectus  prior to the use giving
rise to a violation and such Indemnified  Person,  notwithstanding  such advice,
used it;  (iii)  shall not be  available  to the extent such Claim is based on a
failure of the  Investor to deliver or to cause to be delivered  the  prospectus
made available by the Company,  if such  prospectus was timely made available by
the Company  pursuant to Section  3(d);  (iv) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company,  which consent shall not be unreasonably  withheld;  and
(v) shall not apply to the extent  such  Claim is based  upon the  failure of an
Investor to comply with governing  laws and  regulations.  Such indemnity  shall
remain in full force and effect  regardless of any  investigation  made by or on
behalf  of  the  Indemnified  Person  and  shall  survive  the  transfer  of the
Registrable Securities by the Investors pursuant to Section 10.

                                       10
<PAGE>

         b. In connection with any  Registration  Statement in which an Investor
is  participating,  each such  Investor  agrees  to  severally  and not  jointly
indemnify,  hold harmless and defend,  to the same extent and in the same manner
as is set forth in Section 6(a), the Company, each of its directors, each of its
officers who signs the Registration Statement, each Person, if any, who controls
the Company within the meaning of the 1933 Act or the 1934 Act (collectively and
together with an Indemnified Person, an "Indemnified Party"),  against any Claim
or Indemnified Damages to which any Indemnified Party may become subject,  under
the 1933 Act, the 1934 Act or  otherwise,  insofar as such Claim or  Indemnified
Damages  arise  out of or are  based  upon any  Violation,  in each  case to the
extent, and only to the extent,  that such Violation (i) occurs in reliance upon
and in  conformity  with  written  information  furnished to the Company by such
Investor  expressly for use in connection with such Registration  Statement (ii)
is based on a failure of the Investor to deliver or to cause to be delivered the
prospectus  made  available by the Company,  if such  prospectus was timely made
available  by the  Company  pursuant to Section  3(d),  or (iii) is based on the
failure of the  Investor to comply with  governing  laws and  regulations;  and,
subject  to  Section  6(d),  such  Investor  will  reimburse  any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending  any such  Claim;  provided,  however,  that the  indemnity  agreement
contained in this Section 6(b) and the  agreement  with respect to  contribution
contained  in Section 7 shall not apply to  amounts  paid in  settlement  of any
Claim if such  settlement is effected  without the prior written consent of such
Investor, which consent shall not be unreasonably withheld;  provided,  further,
however, that the Investor shall be liable under this Section 6(b) for only that
amount of a Claim or Indemnified  Damages as does not exceed the net proceeds to
such Investor as a result of the sale of Registrable Securities pursuant to such
Registration  Statement.  Such  indemnity  shall remain in full force and effect
regardless of any  investigation  made by or on behalf of such Indemnified Party
and shall  survive the transfer of the  Registrable  Securities by the Investors
pursuant  to Section 10.  Notwithstanding  anything  to the  contrary  contained
herein,  the  indemnification  agreement  contained  in this  Section  6(b) with
respect  to any  preliminary  prospectus  shall not inure to the  benefit of any
Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus was corrected on a timely basis in the prospectus,
as then amended or supplemented.

         c.  The  Company  shall  be  entitled  to  receive   indemnities   from
underwriters,  selling brokers,  dealer managers and similar securities industry
professionals participating in any distribution,  to the same extent as provided
above,  with  respect  to  information  such  persons  so  furnished  in writing
expressly for inclusion in the Registration Statement.

         d. Promptly after receipt by an Indemnified Person or Indemnified Party
under this Section 6 of notice of the  commencement  of any action or proceeding
(including  any  governmental  action or  proceeding)  involving  a Claim,  such
Indemnified  Person or Indemnified Party shall, if a Claim in respect thereof is
to be made against any  indemnifying  party under this Section 6, deliver to the
indemnifying  party  a  written  notice  of the  commencement  thereof,  and the
indemnifying  party shall have the right to  participate  in, and, to the extent
the indemnifying  party so desires,  jointly with any other  indemnifying  party
similarly  noticed,  to assume  control  of the  defense  thereof  with  counsel
mutually  satisfactory to the indemnifying  party and the Indemnified  Person or

                                       11
<PAGE>

the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person or Indemnified  Party shall have the right to retain its own
counsel with the fees and expenses to be paid by the indemnifying  party, if, in
the  reasonable  opinion of counsel  retained  by the  indemnifying  party,  the
representation  by such counsel of the Indemnified  Person or Indemnified  Party
and the  indemnifying  party would be  inappropriate  due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party  represented by such counsel in such  proceeding.  The Company shall
pay reasonable  fees for only one separate legal counsel for the Investors,  and
such legal  counsel  shall be  selected by the  Investors  holding a majority in
interest of the Registrable Securities included in the Registration Statement to
which the Claim  relates.  The  Indemnified  Party or  Indemnified  Person shall
cooperate fully with the  indemnifying  party in connection with any negotiation
or  defense  of any such  action  or claim by the  indemnifying  party and shall
furnish to the indemnifying  party all information  reasonably  available to the
Indemnified  Party or Indemnified  Person which relates to such action or claim.
The indemnifying  party shall keep the Indemnified  Party or Indemnified  Person
fully  apprised at all times as to the status of the  defense or any  settlement
negotiations with respect thereto. No indemnifying party shall be liable for any
settlement  of any  action,  claim or  proceeding  effected  without its written
consent,  provided,  however, that the indemnifying party shall not unreasonably
withhold,  delay or condition its consent. No indemnifying party shall,  without
the consent of the Indemnified Party or Indemnified Person,  consent to entry of
any judgment or enter into any  settlement  or other  compromise  which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified  Person of a release from all liability
in respect to such claim or litigation.  Following  indemnification  as provided
for hereunder,  the indemnifying  party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations  relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice to the  indemnifying  party  within a
reasonable  time of the  commencement  of any such action shall not relieve such
indemnifying  party of any liability to the  Indemnified  Person or  Indemnified
Party under this Section 6, except to the extent that the indemnifying  party is
prejudiced in its ability to defend such action.

         e. The  indemnification  required  by this  Section  6 shall be made by
periodic  payments of the amount thereof during the course of the  investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

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

7.       CONTRIBUTION.
         ------------

         To  the  extent  any   indemnification  by  an  indemnifying  party  is
prohibited or limited by law, the indemnifying  party agrees to make the maximum
contribution  with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable  Securities guilty of fraudulent  misrepresentation
(within  the  meaning of Section  11(f) of the 1933 Act)  shall be  entitled  to
contribution  from any seller of  Registrable  Securities  who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds  received by
such seller from the sale of such Registrable Securities.

                                       12
<PAGE>

8.       REPORTS UNDER THE 1934 ACT.
         --------------------------

         With a view to making  available to the  Investors the benefits of Rule
144  promulgated  under the 1933 Act or any other  similar rule or regulation of
the SEC that may at any time  permit the  Investors  to sell  securities  of the
Company to the public without  registration ("Rule 144"), the Company agrees to,
until  such  time  as all of the  Registrable  Securities  may be  sold  without
restriction pursuant to Rule 144(k):

         a.  make and keep  public  information  available,  as those  terms are
understood and defined in Rule 144;

         b. file with the SEC in a timely manner all reports and other documents
required  of the  Company  under  the  1933  Act and the 1934 Act so long as the
Company remains subject to such  requirements and the filing of such reports and
other documents is required for the applicable provisions of Rule 144; and

         c. furnish to each Investor so long as such  Investor owns  Registrable
Securities,  promptly upon request,  (i) a written statement by the Company that
it has complied  with the reporting  requirements  of Rule 144, the 1933 Act and
the 1934 Act, (ii) a copy of the most recent  annual or quarterly  report of the
Company and such other  reports and  documents so filed by the Company and (iii)
such other information as may be reasonably requested to permit the investors to
sell such securities pursuant to Rule 144 without registration.

9.       LIQUIDATED DAMAGES.
         ------------------

         The Company  agrees that the Buyers will suffer  damages if the Company
violates any provision of or fails to fulfill its  obligations  pursuant to this
Agreement  (a  "Registration  Default")  and that it would  not be  possible  to
ascertain  the  extent  of  such  damages.  Accordingly,  in the  event  of such
Registration  Default,  the  Company  hereby  agrees to pay  liquidated  damages
("Liquidated   Damages")  to  each  Buyer   following  the  occurrence  of  such
Registration Default in an amount determined by multiplying (i) one percent (1%)
of such  Buyer's  portion of the  Purchase  Price (as defined in the  Securities
Purchase  Agreement) by (ii) the  percentage  derived by dividing (A) the actual
number of days elapsed from the last day of the date of the Registration Default
or the prior 30-day period, as applicable,  to the day such Registration Default
has been completely  cured by (B) 30, in cash, or at the Buyer's option,  in the
number of shares of Company common stock equal to the quotient of (v) the dollar
amount of the  Liquidated  Damages on the Payment Date (as defined below) by (w)
the  closing  bid  price  of the  Company's  common  stock as of the date of the
Registration  Default  (as  quoted  in the  Principal  Market  or the  market or
exchange  where the  Company's  common  stock is then  traded).  The  Liquidated
Damages  payable  pursuant hereto shall be payable within five (5) business days
from the end of the calendar  month  commencing on the first  calendar  month in
which the Registration Default occurs (each, a "Payment Date").

                                       13
<PAGE>

10.      ASSIGNMENT OF REGISTRATION RIGHTS.
         ---------------------------------

         The rights under this Agreement  shall be  automatically  assignable by
the Investors to any transferee of all or any portion of Registrable  Securities
if: (i) the Investor agrees in writing with the transferee or assignee to assign
such rights,  and a copy of such  agreement is furnished to the Company within a
reasonable time after such assignment;  (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such  transferee or assignee,  and (b) the  securities  with
respect to which such  registration  rights are being  transferred  or assigned;
(iii) immediately  following such transfer or assignment the further disposition
of such  securities by the  transferee or assignee is restricted  under the 1933
Act and applicable state securities laws; provided, however, that the transferee
or  assignee  may  subsequently  transfer  or assign  all or any  portion of the
Registrable  Securities if an exemption from registration  under the 1933 Act is
applicable  to such  transfer  or  assignment;  (iv) at or  before  the time the
Company receives the written notice contemplated by clause (ii) of this sentence
the transferee or assignee agrees in writing with the Company to be bound by all
of the provisions  contained herein;  and (v) such transfer shall have been made
in  accordance  with the  applicable  requirements  of the  Securities  Purchase
Agreement.

11.      AMENDMENT OF REGISTRATION RIGHTS.
         --------------------------------

         Provisions of this Agreement may be amended and the observance  thereof
may  be  waived  (either  generally  or  in a  particular  instance  and  either
retroactively  or  prospectively),  only with the written consent of the Company
and Investors who then hold two-thirds (2/3) of the Registrable Securities.  Any
amendment or waiver effected in accordance with this Section 11 shall be binding
upon each Investor and the Company.  No such amendment shall be effective to the
extent  that it  applies  to less  than all of the  holders  of the  Registrable
Securities.  No consideration shall be offered or paid to any Person to amend or
consent to a waiver or  modification  of any provision of any of this  Agreement
unless the same  consideration  also is  offered  to all of the  parties to this
Agreement.

12.      MISCELLANEOUS.
         -------------

         a. A Person is deemed to be a holder of Registrable Securities whenever
such Person owns or is deemed to own of record such Registrable  Securities.  If
the Company receives conflicting instructions,  notices or elections from two or
more Persons with respect to the same Registrable Securities,  the Company shall
act upon  the  basis of  instructions,  notice  or  election  received  from the
registered owner of such Registrable Securities.

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

                                       14
<PAGE>

If to the Company:

                  Altair Nanotechnologies Inc.
                  1725 Sheridan Avenue, Suite 140
                  Cody, Wyoming  82414
                  Telephone:        (307) 587-8245
                  Facsimile:        (307) 587-8357
                  Attention:        William P. Long, Chief Executive Officer

With a copy to:

                  Altair Nanotechnologies Inc.
                  204 Edison Way
                  Reno, Nevada  89502
                  Telephone:        (775) 837-1966
                  Facsimile:        (775) 857-1920
                  Attention:        Edward Dickinson, Chief Financial Officer

                  Stoel Rives LLP
                  201 South Main Street
                  Suite 1100
                  Telephone:         (801) 578-6908
                  Facsimile:         (801) 578-6999
                  Attention:         Bryan T. Allen, Esq.

If to a Buyer,  to it at the  address  and  facsimile  number  set  forth on the
Schedule of Buyers attached hereto, with copies to such Buyer's  representatives
as set  forth  on the  Schedule  of  Buyers,  or at such  other  address  and/or
facsimile  number  and/or to the attention of such other person as the recipient
party has specified by written  notice given to each other party five days prior
to the effectiveness of such change.

         c.  Failure  of any party to  exercise  any right or remedy  under this
Agreement or otherwise,  or delay by a party in exercising such right or remedy,
shall not operate as a waiver  thereof.

         d. This Agreement shall be governed by and construed in all respects by
the internal laws of the State of Illinois (except for the proper application of
the United States federal securities laws),  without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of Illinois or
any other  jurisdictions)  that would cause the  application  of the laws of any
jurisdictions  other than the State of Illinois.  Each party hereby  irrevocably
submits  to the  non-exclusive  jurisdiction  of the  state and  federal  courts
sitting the City of Chicago,  for the adjudication of any dispute hereunder.  If
any  provision  of this  Agreement  shall be  invalid  or  unenforceable  in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or  enforceability  of any  provision  of this  Agreement  in any other
jurisdiction.

         e. This Agreement,  the Securities  Purchase Agreement and the Warrants
constitute  the entire  agreement  among the parties  hereto with respect to the
subject  matter  hereof  and  thereof.  There  are  no  restrictions,  promises,
warranties or undertakings, other than those set forth or referred to herein and

                                       15
<PAGE>

therein.  This  Agreement,  the Securities  Purchase  Agreement and the Warrants
supersede all prior agreements and understandings  among the parties hereto with
respect to the subject matter hereof and thereof.

         f.  Subject to the  requirements  of Section 10, this  Agreement  shall
inure to the benefit of and be binding upon the permitted successors and assigns
of each of the parties hereto.

         g. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

         h. This  Agreement may be executed in identical  counterparts,  each of
which shall be deemed an original but all of which shall  constitute one and the
same agreement.  This Agreement,  once executed by a party,  may be delivered to
the other party hereto by  facsimile  transmission  of a copy of this  Agreement
bearing the signature of the party so delivering this Agreement.

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

         j. All consents and other  determinations  to be made by the  Investors
pursuant to this Agreement  shall be made,  unless  otherwise  specified in this
Agreement,  by  Investors  holding a  majority  of the  Registrable  Securities,
determined as if all of the Warrants then  outstanding  have been converted into
Registrable  Securities  without  regard to any  limitation  on  exercise of the
Warrants.

         k.  The  language  used in this  Agreement  will  be  deemed  to be the
language  chosen by the parties to express  their mutual  intent and no rules of
strict construction will be applied against any party.

         l. This Agreement is intended for the benefit of the parties hereto and
their respective  permitted  successors and assigns,  and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

                                   * * * * * *

                                       16
<PAGE>

         IN WITNESS WHEREOF,  the parties have caused this  Registration  Rights
Agreement to be duly executed as of day and year first above written.

COMPANY:

ALTAIR NANOTECHNOLOGIES INC.

By:
_____________________________________________________
Name:  William P. Long
Title:  CEO

BUYERS:
CRANSHIRE CAPITAL, L.P.

By:      Downsview Capital, Inc.,
         the General Partner

By: _________________________________________________
Name:    Mitchell P. Kopin
Title:   President

VERTICAL VENTURES, LLC

By:________________________________________________
Name:______________________________________________
Title:_____________________________________________

PHOTON FUND LTD

By:________________________________________________
Name:______________________________________________
Title:_____________________________________________

___________________________________________________
[name of investor]

By:________________________________________________
Name:______________________________________________
Title:_____________________________________________

                                       17
<PAGE>

<TABLE>
<CAPTION>

                               SCHEDULE OF BUYERS

------------------------------------------------------------ ----------------------------------------
                        BUYER NAME                                             CONTACT INFORMATION
------------------------------------------------------------ ----------------------------------------
<S>                                                          <C>
Cranshire Capital, L.P.                                      666 Dundee Rd., Ste. 1901
                                                             Northbrook, Illinois 60062
                                                             Attn: Mitchell P. Kopin
                                                             (p) 847/562-9030
                                                             (f) 847/562-9031
------------------------------------------------------------ ----------------------------------------

Vertical Ventures, LLC                                       650 Fifth Avenue, 6th Floor
                                                             New York, NY  10019
                                                             Attn:_________________
                                                             (p) ___________________
                                                             (f) ____________________
------------------------------------------------------------ ----------------------------------------

Photon Fund LTD                                              372 Bay StreetToronto, Ontario
                                                             M5H 2W9   Canada
                                                             Attn:_________________
                                                             (p) ___________________
                                                             (f) ____________________

------------------------------------------------------------ ----------------------------------------
</TABLE>

                                       18

<PAGE>

                                                                     EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]

Attn: ___________________

Re: Altair Nanotechnologies Inc.

Ladies and Gentlemen:

         We  are  counsel  to  Altair   Nanotechnologies   Inc.,  a  corporation
incorporated under the laws of the Canada (the "Company"),  and have represented
the Company in connection with that certain  Securities  Purchase Agreement (the
"Purchase Agreement") entered into by and among the Company and the buyers named
therein  (collectively,  the "Holders")  pursuant to which the Company issued to
the Holders  shares of its common stock,  no par value (the "Common  Stock") and
Warrants  exercisable into its Common Stock (the "Warrant Shares").  Pursuant to
the Purchase Agreement,  the Company also has entered into a Registration Rights
Agreement with the Holders (the  "Registration  Rights  Agreement")  pursuant to
which the Company  agreed,  among other  things,  to  register  the  Registrable
Securities  (as defined in the  Registration  Rights  Agreement),  including the
Common Stock and Warrant  Shares,  under the  Securities Act of 1933, as amended
(the  "1933  Act").  In  connection  with the  Company's  obligations  under the
Registration  Rights  Agreement,  on  __________,  2003,  the  Company  filed  a
Registration  Statement on Form S-3 (File No.  _____________) (the "Registration
Statement") with the Securities and Exchange  Commission (the "SEC") relating to
the  Registrable  Securities  which  names  each  of the  Holders  as a  selling
stockholder thereunder.

         In connection  with the  foregoing,  we advise you that a member of the
SEC's  staff has  advised  us by  telephone  that the SEC has  entered  an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF  EFFECTIVENESS]  on [ENTER DATE OF  EFFECTIVENESS]  and we have no knowledge,
after  telephonic  inquiry of a member of the SEC's  staff,  that any stop order
suspending its  effectiveness  has been issued or that any  proceedings for that
purpose  are  pending  before,  or  threatened  by, the SEC and the  Registrable
Securities  are  available  for  resale  under  the  1933  Act  pursuant  to the
Registration Statement.

                                           Very truly yours,

                                           [ISSUER'S COUNSEL]

                                           By:__________________________________

cc:      [LIST NAMES OF HOLDERS]

                                       19

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