Document:

EXHIBIT 10.1

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                           MORTGAGEIT SECURITIES CORP.

                                  as Purchaser,

                            MORTGAGEIT HOLDINGS, INC.

                                    as Seller

                             _______________________

                        MORTGAGE LOAN PURCHASE AGREEMENT

                           Dated as of JANUARY 1, 2005

                             _______________________

                         Adjustable Rate Mortgage Loans

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                                TABLE OF CONTENTS
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                                    ARTICLE I
<S>                   <C>                                                                  <C>
DEFINITIONS..................................................................................1
   Section 1.1.       Definitions............................................................1

                                   ARTICLE II
SALE OF MORTGAGE LOANS AND RELATED PROVISIONS................................................2
   Section 2.1.       Sale of Mortgage Loans.................................................2
   Section 2.2.       Payment of Purchase Price for the Mortgage Loans.......................4

                                   ARTICLE III
REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH..........................................6
   Section 3.1.       Seller Representations and Warranties..................................6
   Section 3.2.       Purchaser Representations and Warranties..............................13

                                   ARTICLE IV
SELLER'S COVENANTS..........................................................................15
   Section 4.1.       Covenants of the Seller...............................................15

                                    ARTICLE V
LIMITATION ON LIABILITY OF THE SELLER.......................................................15
   Section 5.1.       Limitation on Liability of the Seller.................................15

                                   ARTICLE VI
TERMINATION.................................................................................15
   Section 6.1.       Termination...........................................................15

                                   ARTICLE VII
MISCELLANEOUS PROVISIONS....................................................................15
   Section 7.1.       Amendment.............................................................15
   Section 7.2.       Governing Law.........................................................15
   Section 7.3.       Notices...............................................................16
   Section 7.4.       Severability of Provisions............................................16
   Section 7.5.       Relationship of Parties...............................................16
   Section 7.6.       Counterparts..........................................................16
   Section 7.7.       Survival..............................................................16
   Section 7.8.       Further Agreements....................................................16
   Section 7.9.       Intention of the Parties..............................................17
   Section 7.10.      Successors and Assigns; Assignment of Purchase Agreement..............17

Exhibits
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Exhibit 1             Mortgage Loan Schedule
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                                        i

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                  This MORTGAGE LOAN PURCHASE AGREEMENT (this "Agreement"),
dated as of January 1, 2005, is made between MortgageIT Holdings, Inc. (the
"Seller") and MortgageIT Securities Corp. (the "Purchaser").

                              W I T N E S S E T H:
                              - - - - - - - - - -

                  WHEREAS, the Seller owns the Mortgage Loans indicated on the
Mortgage Loan Schedule attached as Exhibit 1 hereto (the "Mortgage Loans"),
including rights to (a) any property acquired by foreclosure or deed in lieu of
foreclosure or otherwise, and (b) the proceeds of any insurance policies
covering the Mortgage Loans;

                  WHEREAS, the parties hereto desire that the Seller sell the
Mortgage Loans to the Purchaser, and that the Seller make certain
representations and warranties and undertake certain obligations with respect to
the Mortgage Loans; and

                  WHEREAS, pursuant to the terms of an Amended and Restated
Trust Agreement dated as of January 19, 2005 (the "Trust Agreement"), among the
Purchaser, as depositor, Wilmington Trust Company, as owner trustee (the "Owner
Trustee") and Wells Fargo Bank, National Association, as certificate registrar
and certificate paying agent, the Purchaser will convey the Mortgage Loans to
the Issuer (as defined below); and

                  WHEREAS, pursuant to the terms of a Servicing Agreement dated
as of November 1, 2005 (the "Servicing Agreement"), between the Seller and the
Purchaser, the Seller will service, or cause to be serviced by the Subservicer,
the Mortgage Loans; and

                  WHEREAS, pursuant to the terms of a Sale and Servicing
Agreement dated as of January 19, 2004 among the Purchaser, the Seller, Wells
Fargo Bank, N.A. as Master Servicer (the "Master Servicer") and Securities
Administrator (the "Securities Administrator"), a Trust Estate designated as
MortgageIT Trust 2005-1, a Delaware statutory trust (the "Issuer") and Deutsche
Bank National Trust Company as Indenture Trustee (the "Indenture Trustee"), the
Master Servicer will master service the Mortgage Loans; and

                  WHEREAS, pursuant to the terms of an Indenture dated as of
January 19, 2005 (the "Indenture"), between the Issuer and the Indenture
Trustee, the Issuer will pledge the Mortgage Loans and issue and transfer to the
Purchaser the MortgageIT Trust 2005-1, Mortgage-Backed Notes, Series 2005-1,
Class 1-A-1, Class 1-A-2, Class 2-A, Class 1-M-1, Class 1-M-2, Class 2-M-1,
Class 2-M-2, Class 1-B-1, Class 1-B-2 and Class 2-B-1 Notes (collectively, the
"Notes"), representing debt of the Issuer;

                  NOW, THEREFORE, in consideration of the mutual covenants
herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.1. DEFINITIONS. For all purposes of this Mortgage
Loan Purchase Agreement, except as otherwise expressly provided herein or unless
the context otherwise

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requires, capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in Appendix A attached to the Indenture, which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.

                                   ARTICLE II

                  SALE OF MORTGAGE LOANS AND RELATED PROVISIONS

                  Section 2.1. SALE OF MORTGAGE LOANS.

         (a)      The Seller, by the execution and delivery of this Agreement,
does hereby sell, assign, set over, and otherwise convey to the Purchaser,
without recourse but subject to the terms of this Agreement, all of its right,
title and interest in, to and under the following, whether now existing or
hereafter acquired and wherever located, (i) all of its right, title and
interest in the Mortgage Loans identified on Exhibit 1 as of the Closing Date,
including the related Cut-off Date Principal Balance, all interest accruing
thereon on and after the Cut-off Date, and all collections of interest and
principal due after the Cut-off Date, (ii) the Seller's interest in any
insurance policies related to the Mortgage Loans and (iii) all proceeds of the
foregoing.

         (b)      In connection with such conveyances by the Seller, the Seller
shall on behalf of the Purchaser deliver to, and deposit with Deutsche Bank
National Trust Company, as custodian for the Indenture Trustee, on or before the
Closing Date, the following documents or instruments with respect to each
Mortgage Loan:

                  (i)      the original Mortgage Note endorsed without recourse
         to the order of the Indenture Trustee or in blank, and showing an
         unbroken chain of endorsements from the original payee thereof to the
         Person endorsing it to the Indenture Trustee or in blank or, with
         respect to any Mortgage Loan as to which the original Mortgage Note has
         been lost or destroyed and has not been replaced, a lost note affidavit
         together with a copy of the related Mortgage Note;

                  (ii)     the original Mortgage and, if the related Mortgage
         Loan is a MOM Loan, noting the presence of the MIN and language
         indicating that such Mortgage Loan is a MOM Loan, with evidence of
         recording thereon, or, if the original Mortgage has not yet been
         returned from the public recording office, a copy of the original
         Mortgage certified by the Seller or the public recording office in
         which such original Mortgage has been recorded, or, if the original
         Security Instrument, assignments to the Indenture Trustee or
         intervening assignments thereof which have been delivered, are being
         delivered or will, upon receipt of recording information relating to
         the Security Instrument required to be included thereon, be delivered
         to recording offices for recording and have not been returned to the
         Seller in time to permit their recording as specified in Section
         2.01(b) of the Sale and Servicing Agreement, shall be in recordable
         form;

                  (iii)    unless the Mortgage Loan is a MOM Loan, a certified
         copy of the assignment (which may be in the form of a blanket
         assignment if permitted in the jurisdiction in which the Mortgaged
         Property is located) to "Deutsche Bank National Trust Company, as
         Indenture Trustee", with evidence of recording with respect to each

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         Mortgage Loan in the name of the Indenture Trustee thereon (or if (A)
         the original Security Instrument, assignments to the Indenture Trustee
         or intervening assignments thereof which have been delivered, are being
         delivered or will, upon receipt of recording information relating to
         the Security Instrument required to be included thereon, be delivered
         to recording offices for recording and have not been returned to the
         Seller in time to permit their delivery as specified in Section 2.01(b)
         of the Sale and Servicing Agreement, the Seller may deliver a true copy
         thereof with a certification by the Seller, on the face of such copy,
         substantially as follows: "Certified to be a true and correct copy of
         the original, which has been transmitted for recording" or (B) the
         related Mortgaged Property is located in a state other than Maryland
         and an Opinion of Counsel has been provided as set forth in Section
         2.01(b) of the Sale and Servicing Agreement, shall be in recordable
         form);

                  (iv)     all intervening assignments of the Security
         Instrument, if applicable and only to the extent available to the
         Depositor with evidence of recording thereon;

                  (v)      the original or a copy of the policy or certificate
         of primary mortgage guaranty insurance, to the extent available, if
         any;

                  (vi)     the original or a copy of the policy of title
         insurance or mortgagee's certificate of title insurance or commitment
         or binder for title insurance; and

                  (vii)    originals of all modification agreements, if
         applicable and available.

         If a material defect in any Mortgage File is discovered which may
materially and adversely affect the value of the related Mortgage Loan, or the
interests of the Indenture Trustee (as pledgee of the Mortgage Loans), the
Noteholders or the Certificateholders in such Mortgage Loan, including if any
document required to be delivered to the Indenture Trustee has not been
delivered (provided that a Mortgage File will not be deemed to contain a defect
for an unrecorded assignment under clause (iii) above if the Seller has
submitted such assignment for recording pursuant to the terms of the second
following paragraph), the Seller shall cure such defect, repurchase the related
Mortgage Loan at the Repurchase Price or substitute a Substitute Mortgage Loan
for the related Mortgage Loan upon the same terms and conditions set forth in
Section 3.1 hereof for breaches of representations and warranties as to the
Mortgage Loans.

         In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Seller further agrees that it will cause, at the
Seller's own expense, within 30 days after the Closing Date, the MERS(R) System
to indicate that such Mortgage Loans have been assigned by the Seller to the
Indenture Trustee in accordance with this Agreement for the benefit of the
Noteholders by including (or deleting, in the case of Mortgage Loans which are
repurchased in accordance with the Sale and Servicing Agreement) in such
computer files (a) the code in the field which identifies the specific Trustee
and (b) the code in the field "Pool Field" which identifies the series of the
Notes issued in connection with such Mortgage Loans. The Seller further agrees
that it will not, and will not permit the Master Servicer to, alter the codes
referenced in this paragraph with respect to any Mortgage Loan during the term
of the Indenture, unless and until such Mortgage Loan is repurchased in
accordance with the terms of the Indenture.

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         Promptly after the Closing Date (or after the date of transfer of any
Substitute Mortgage Loan), the Seller, at its own expense, shall complete and
submit for recording in the appropriate public office for real property records
each of the assignments referred to in clause (iii) above, with such assignment
completed in favor of the Indenture Trustee. While such assignment to be
recorded is being recorded, the Indenture Trustee shall retain a photocopy of
such assignment. If any assignment is lost or returned unrecorded to the
Indenture Trustee because of any defect therein, the Seller is required to
prepare a substitute assignment or cure such defect, as the case may be, and the
Seller shall cause such substitute assignment to be recorded in accordance with
this paragraph.

         In instances where an original Mortgage or any original intervening
assignment of Mortgage was not, in accordance with clause (ii) or (iv) above,
delivered by the Seller to the Indenture Trustee, prior to or concurrently with
the execution and delivery of this Agreement, the Seller will deliver or cause
to be delivered the originals of such documents to the Indenture Trustee,
promptly upon receipt thereof.

         The Purchaser hereby acknowledges its acceptance of all right, title
and interest to the Mortgage Loans and other property, now existing and
hereafter created, conveyed to it pursuant to this Section 2.1.

         (c)      The parties hereto intend that the transactions set forth
herein, including the sale of the Mortgage Loans pursuant to this Agreement,
constitute a sale by the Seller to the Purchaser of all the Seller's right,
title and interest in and to the Mortgage Loans and other property as and to the
extent described above. In the event the transactions set forth herein are
deemed by a court of competent jurisdiction not to be a sale, the Seller hereby
grants to the Purchaser a security interest in all of the Seller's right, title
and interest in, to and under the Mortgage Loans and such other property, to
secure all of the Seller's obligations hereunder, and this Agreement shall
constitute a security agreement under applicable law, including, without
limitation, Article 9 of the applicable Uniform Commercial Code. The Seller
agrees to take or cause to be taken such actions and to execute such documents,
including without limitation the filing of all necessary UCC-1 financing
statements filed in the State of Delaware (which shall have been submitted for
filing as of the Closing Date with respect to the Principal Balance of the
Mortgage Loans), any continuation statements with respect thereto and any
amendments thereto required to reflect a change in the name or corporate
structure of the Seller or the filing of any additional UCC-1 financing
statements due to the change in the principal office of the Seller, as are
necessary to ensure that, if this Agreement were deemed to create a security
interest in the Mortgage Loans, such security interest would be deemed to be a
perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of the Indenture.

                  Section 2.2. PAYMENT OF PURCHASE PRICE FOR THE MORTGAGE LOANS.

         (a)      The purchase price for the Mortgage Loans shall be equal to
the sum of (1) $________ * and (2) a 100% Percentage Interest in the Class 1-B-1
Notes and Class 1-B-2 Notes.

         (b)      In consideration of the sale of the Mortgage Loans from the
Seller to the Purchaser on the Closing Date, the Purchaser shall (A) pay to the
Seller on the Closing Date by

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wire transfer of immediately available funds to a bank account designated by the
Seller, the amount specified above in clause (a)(1) and (B) cause the transfer
to the Seller of the Notes in clauses (a)(2).

* Provided Upon Request.

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                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES;
                               REMEDIES FOR BREACH

                  Section 3.1. SELLER REPRESENTATIONS AND WARRANTIES. The Seller
hereby represents and warrants to the Purchaser as of the Closing Date (or if
otherwise specified below, as of the date so specified) that:

         (a)      with respect to the Seller:

                  (i)      the Seller is a corporation duly organized, validly
         existing and in good standing under the laws of the State of Maryland,
         and is qualified and in good standing to do business in each
         jurisdiction where such qualification is necessary, except where the
         failure so to qualify would not reasonably be expected to have a
         material adverse effect on its business as presently conducted or on
         its ability to enter into this Agreement and to consummate the
         transactions contemplated hereby;

                  (ii)     the Seller has full corporate power to own its
         property, to carry on its business as presently conducted and to enter
         into and perform its obligations under this Agreement;

                  (iii)    the execution and delivery by the Seller of this
         Agreement have been duly authorized by all necessary corporate action
         on the part of the Seller; and neither the execution and delivery of
         this Agreement, nor the consummation of the transactions herein
         contemplated hereby, nor compliance with the provisions hereof, will
         conflict with or result in a breach of, or constitute a default under,
         any of the provisions of any applicable law, governmental rule,
         regulation, judgment, decree or order binding on the Seller or its
         properties or the certificate of incorporation or by-laws of the
         Seller, except those conflicts, breaches or defaults which would not
         reasonably be expected to have a material adverse effect on the
         Seller's ability to enter into this Agreement and to consummate the
         transactions contemplated hereby;

                  (iv)     the execution, delivery and performance by the Seller
         of this Agreement and the consummation of the transactions contemplated
         hereby do not require the consent or approval of, the giving of notice
         to, the registration with, or the taking of any other action in respect
         of, any state, federal or other governmental authority or agency,
         except those consents, approvals, notices, registrations or other
         actions as have already been obtained, given or made and, in connection
         with the recordation of the Mortgages, powers of attorney or
         assignments of Mortgages not yet completed;

                  (v)      this Agreement has been duly executed and delivered
         by the Seller and, assuming due authorization, execution and delivery
         by the Purchaser, constitutes a valid and binding obligation of the
         Seller enforceable against it in accordance with its terms (subject to
         applicable bankruptcy and insolvency laws and other similar laws
         affecting the enforcement of the rights of creditors generally);

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                  (vi)     there are no actions, litigation, suits or
         proceedings pending or, to the best of the Seller's knowledge,
         threatened against the Seller before or by any court, administrative
         agency, arbitrator or governmental body (i) with respect to any of the
         transactions contemplated by this Agreement or (ii) with respect to any
         other matter which in the judgment of the Seller if determined
         adversely to the Seller would reasonably be expected to materially and
         adversely affect the Seller's ability to perform its obligations under
         this Agreement; and the Seller is not in default with respect to any
         order of any court, administrative agency, arbitrator or governmental
         body so as to materially and adversely affect the transactions
         contemplated by this Agreement;

                  (vii)    The execution and delivery of this Agreement and the
         performance of the transactions contemplated hereby by the Seller will
         not violate any provision of any existing law or regulation or any
         order or decree of any court applicable to the Seller or any provision
         of the Certificate of Incorporation or Bylaws of the Seller, or
         constitute a material breach of any mortgage, indenture, contract or
         other agreement to which the Seller is a party or by which the Seller
         may be bound; and

                  (viii)   the Seller's chief executive office and principal
         place of business are located in the County of New York in the State of
         New York; and

         (b)      with respect to the Mortgage Loans:

                  (i)      as of the Cut-off Date, the information set forth on
         the Mortgage Loan Schedule with respect to each Mortgage Loan is true
         and correct in all material respects;

                  (ii)     immediately prior to the transfer to the Purchaser,
         the Seller had good title to and is the sole owner of each Mortgage and
         Mortgage Note relating to the Mortgage Loans, and is conveying the same
         free and clear of any and all liens, claims, encumbrances, pledges,
         charges or security interests of any nature, the related Mortgage Note
         and the Mortgage were not subject to any pledge or assignment, and the
         Seller has full legal authority to sell and assign the Mortgage Loans
         pursuant to this Agreement;

                  (iii)    no default, release or waiver exists under the
         mortgage documents, and no modifications to the mortgage documents have
         been made that have not been disclosed;

                  (iv)     there is no monetary default existing under any
         Mortgage or the related Mortgage Note; neither the Seller, any of its
         affiliates nor any servicer of any related Mortgage Loan has taken any
         action to waive any default, breach or event of acceleration with
         respect thereto; and no foreclosure action is threatened or has been
         commenced with respect to such Mortgage Loan;

                  (v)      each Mortgage Loan was underwritten in accordance
         with the underwriting guidelines of the Seller and its affiliates. The
         Seller has no knowledge of any fact that should have led it to expect
         at the time of the initial creation of an interest in the Mortgage Loan
         that such Mortgage Loan would not be paid in full when due;

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                  (vi)     no selection procedures reasonably believed by the
         Seller to be adverse to the interest of the Noteholders or
         Certificateholders have been used in selecting the Mortgage Loans;

                  (vii)    Each Mortgage is a valid and enforceable first lien
         on the Mortgaged Property securing the related Mortgage Note and each
         Mortgaged Property is owned by the Mortgagor in fee simple (except with
         respect to common areas in the case of condominiums, PUDs and de
         minimis PUDs) or by leasehold for a term at least 10 years longer than
         the term of the related Mortgage, subject only to (1) the lien of
         nondelinquent current real property taxes and assessments, (2)
         covenants, conditions and restrictions, rights of way, easements and
         other matters of public record as of the date of recording of such
         Mortgage, such exceptions appearing of record being acceptable to
         mortgage lending institutions generally or specifically reflected in
         the appraisal made in connection with the origination of the related
         Mortgage Loan or referred to in the lender's title insurance policy
         delivered to the originator of the related Mortgage Loan, and (3) other
         matters to which like properties are commonly subject that do not
         materially interfere with the benefits of the security intended to be
         provided by such Mortgage;

                  (viii)   there is no mechanics' lien or claim for work, labor
         or material affecting the premises subject to any Mortgage which is or
         may be a lien prior to, or equal with, the lien of such Mortgage except
         those which are fully insured against by a title insurance policy
         included in the Mortgage File;

                  (ix)     there is no delinquent tax or assessment lien against
         the Mortgaged Property subject to any Mortgage, including the
         obligation of the Mortgagor to pay the unpaid principal and interest on
         such Mortgage Note;

                  (x)      there is no valid offset, defense or counterclaim of
         any obligor under any Mortgage Note or Mortgage, including the
         obligation of the Mortgagor to pay the unpaid principal and interest on
         such Mortgage Note;

                  (xi)     except to the extent insurance is in place which will
         cover such damage, the physical property subject to any Mortgage is
         free of material damage and is in good repair, and there is no
         proceeding pending or, to the best of Seller's knowledge, threatened,
         for the total or partial condemnation of any Mortgaged Property;

                  (xii)    neither any improvement located on or being part of
         the Mortgaged Property, nor the Mortgaged Property itself, is in
         violation of any applicable zoning law or regulation, or subdivision
         law or ordinance;

                  (xiii)   each Mortgage Loan has been serviced since
         origination in accordance with the servicing standard set forth in
         Section 3.01 of the Servicing Agreement and in accordance with all
         applicable laws and regulations, including, without limitation, usury,
         equal credit opportunity, disclosure and recording laws and all
         anti-predatory lending laws and the terms of the related Mortgage Note,
         the Mortgage and other loan documents;

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                  (xiv)    the terms of the Mortgage Note or Mortgage have not
         been impaired, altered or modified in any material respect, except that
         a Mortgage Loan may have been modified by a written instrument which
         has been recorded, if necessary to protect the interests of the owner
         of such Mortgage Loan or the Notes and which has been delivered to the
         Indenture Trustee;

                  (xv)     a lender's policy of title insurance (on an ALTA or
         CLTA form) or binder, or other assurance of title customary in the
         relevant jurisdiction therefor in a form acceptable to Fannie Mae or
         Freddie Mac, which policy insures the Seller and successor owners of
         indebtedness secured by the insured Mortgage as to the first lien
         priority of the Mortgage Loan subject to the standard exceptions set
         forth therein, together with a condominium endorsement and extended
         coverage endorsement, if applicable, and an 8.1 ALTA environmental
         endorsement or equivalent endorsement in an amount at least equal to
         the original principal balance of each such Mortgage Loan or a
         commitment binder, commitment to issue the same or preliminary policy
         affirmatively insuring ingress and egress and insuring against
         encroachments by or upon the Mortgaged Property on the standard ALTA
         form, was effective on the date of the origination of each Mortgage
         Loan, and each such policy is valid and remains in full force and
         effect;

                  (xvi)    at the time of origination, each Mortgaged Property
         was the subject of an appraisal on Form 1004 or Form 2055 with an
         interior inspection which conformed to the underwriting requirements of
         the originator of the Mortgage Loan;

                  (xvii)   if for any Mortgage Loan the related Mortgaged
         Property is in an area identified in the Federal Register by the
         Federal Emergency Management Agency as having special flood hazards, a
         flood insurance policy in a form meeting the requirements of the
         current guidelines of the Flood Insurance Administration is in effect
         with respect to such Mortgaged Property with a generally acceptable
         carrier in an amount representing coverage not less than the least of
         (A) the outstanding Principal Balance of the Mortgage Loan, (B) the
         minimum amount required to compensate for damage or loss on a
         replacement cost basis and (C) the maximum amount of coverage that is
         available under federal law; the Mortgage obligates the Mortgagor
         thereunder to maintain all such insurance, including flood insurance,
         at the Mortgagor's cost and expense, and upon the Mortgagor's failure
         to do so, authorizes the holder of the Mortgage to obtain and maintain
         such insurance at the Mortgagor's cost and expense and to seek
         reimbursement therefor from the Mortgagor;

                  (xviii)  the improvements upon each Mortgaged Property are
         covered by a valid and existing hazard insurance policy which policy
         provides for fire extended coverage and such other hazards as are
         customary in the area where the Mortgaged Property is located
         representing coverage in an amount not less than the lesser of (A) the
         maximum insurable value of the improvements securing such Mortgage Loan
         and (B) the outstanding Principal Balance of the related Mortgage Loan,
         but in no event an amount less than an amount that is required to
         prevent the Mortgagor from being deemed to be a co-insurer thereunder;

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                  (xix)    as of the Cut-off Date, no payment of principal of or
         interest on or in respect of any Mortgage Loan is 30 or more days past
         due, and no borrower under a Mortgage Loan has been 30 or more days
         past due more than once during the twelve months preceding the Cut-off
         Date;

                  (xx)     the information set forth under the caption "The
         Mortgage Pool--General" in the Prospectus Supplement is true and
         correct in all material respects;

                  (xxi)    with respect to each Mortgage Loan secured by a
         leasehold estate:

                           (1)      The leasehold created by direct lease of the
                  freehold estate, the ground lease or memorandum thereof has
                  been recorded, and by its terms permits the leasehold estate
                  to be mortgaged. The ground lease grants any leasehold
                  mortgagee standard protections necessary to protect the
                  security of a leasehold mortgagee including the right of the
                  leasehold mortgagee to receive notice of the lessee's default
                  under the ground lease; the right of the leasehold mortgagee,
                  with adequate time, to cure such default; and, in the case of
                  incurable defaults of the lessee, the right of the leasehold
                  mortgagee to enter into a new ground lease with the lessor on
                  terms financially identical and otherwise substantially
                  identical to the existing ground lease;

                           (2)      The ground lease was made at the origination
                  of the Mortgage Loan, and is in full force and effect without
                  any outstanding defaults, and was and is not subject to liens
                  and encumbrances;

                           (3)      The ground lease has an original term which
                  extends not less than ten (10) years beyond the term of the
                  Mortgage; and

                           (4)      The fee estate of the lessor under the
                  ground lease is encumbered by the ground lease, and any lien
                  of any present or future fee mortgagee is and will be subject
                  to and subordinate to the ground lease. The foreclosure of the
                  fee mortgage will not terminate the leasehold estate or the
                  rights of the sub tenants, and the fee mortgage is subject to
                  the ground lease;

                  (xxii)   each of the Mortgage and the assignment of Mortgage
         is in recordable form and is acceptable for recording under the laws of
         the jurisdiction in which the Mortgaged Property is located;

                  (xxiii)  the Mortgagor has not notified the Seller, and the
         Seller has no knowledge of any relief requested or allowed to the
         Mortgagor under the Servicemembers Civil Relief Act;

                  (xxiv)   none of the Mortgage Loans are reverse mortgage
         loans, graduated payment mortgage loans or growth equity mortgage
         loans. None of the Mortgage Loans provide for deferred interest or
         negative amortization. None of the Mortgage Loans are "buy down"
         mortgage loans;

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                  (xxv)    the terms of the related Mortgage Note and the
         related Mortgage have not been impaired, waived, altered or modified in
         any respect, except by written instruments, (x) if required by law in
         the jurisdiction where the Mortgaged Property is located, or (y) to
         protect the interests of the Indenture Trustee on behalf of the
         Noteholders;

                  (xxvi)   each Mortgage Loan was originated or purchased by (a)
         a savings and loan association, savings bank, commercial bank, credit
         union, insurance company or similar institution which is supervised and
         examined by a federal or state authority (or originated by (i) a
         subsidiary of any of the foregoing institutions which subsidiary is
         actually supervised and examined by applicable regulatory authorities
         or (ii) a mortgage loan correspondent of any of the foregoing and that
         was originated pursuant to the criteria established by any of the
         foregoing) or (b) a mortgagee approved by the Secretary of Housing and
         Urban Development pursuant to sections 203 and 211 of the National
         Housing Act, as amended, in each case within the meaning of Section
         3(a)(41)(A)(ii) of the Exchange Act;

                  (xxvii)  the Seller has not advanced funds, or induced,
         solicited or knowingly received any advance of funds from a party other
         than the owner of the related Mortgaged Property, directly or
         indirectly, for the payment of any amount required by the Mortgage Note
         or Mortgage;

                  (xxviii) with respect to each Mortgage Loan, either (i) the
         Mortgage Loan is assumable pursuant to the terms of the Mortgage Note,
         or (ii) the Mortgage Loan contains a customary provision for the
         acceleration of the payment of the unpaid principal balance of the
         Mortgage Loan in the event the related Mortgaged Property is sold
         without the prior consent of the mortgagee thereunder;

                  (xxix)   each Mortgage Loan complies with applicable local,
         state and federal laws and regulations, including, without limitation,
         usury, equal credit opportunity, real estate settlement procedures, the
         Federal Truth-In-Lending Act ("TILA"), disclosure laws and all
         applicable anti-predatory lending laws and consummation of the
         transactions contemplated hereby, including without limitation, the
         receipt of interest by the owner of such Mortgage Loan, will not
         involve the violation of any such laws or regulations; and

                  (xxx)    No Mortgage Loan is a High Cost Loan or Covered Loan,
         as applicable (as such terms are defined in Appendix E of the Standard
         & Poor's Glossary For File Format For LEVELS(R) Version 5.6 Revised
         attached hereto as Exhibit 2).

                  It is understood and agreed that the representations and
warranties set forth in this Section 3.1 shall survive the sale of the Mortgage
Loans from the Seller to the Purchaser and shall inure to the benefit of the
Purchaser, its successors and assigns, notwithstanding any restrictive or
qualified endorsement on any Mortgage Note or assignment of Mortgage or the
examination of any Mortgage File.

                  Upon discovery by the Seller or upon notice from the
Purchaser, the Indenture Trustee, the Issuer, the Owner Trustee, or any
Custodian, as applicable, of a breach of any representation or warranty in
clause (a) above which materially and adversely affects the interest

                                       11
<PAGE>

of the Noteholders in any Mortgage Loan, the Seller shall, within 90 days of its
discovery or its receipt of notice of such breach, either (i) cure such breach
in all material respects, or (ii) to the extent that such breach is with respect
to a Mortgage Loan and can be cured by the removal of that Mortgage Loan from
the Trust, either (A) repurchase such Mortgage Loan from the Trust at the
Repurchase Price, (B) substitute one or more Substitute Mortgage Loans for such
Mortgage Loan, in each case in the manner and subject to the conditions and
limitations set forth herein.

                  Upon discovery or receipt of notice by the Seller, the
Purchaser or the Indenture Trustee of a breach of any representation or warranty
of the Seller set forth in clause (b) above with respect to any Mortgage Loan
which materially and adversely affects the value of the Mortgage Loans or the
interests of the Purchaser, the Noteholders, the Holders of the Trust
Certificates, or the Indenture Trustee in any of the Mortgage Loans delivered to
the Purchaser pursuant to this Agreement, the party discovering or receiving
notice of such breach shall give prompt written notice to the others. In the
case of any such breach of a representation or warranty set forth in clause (b)
above, the Seller shall, within 90 days from the date that the Seller was
notified or otherwise obtained knowledge of such breach, either (i) cure such
breach in all material respects or (ii) purchase such Mortgage Loan from the
Trust Fund at the Repurchase Price. However, subject to the approval of the
Purchaser, the Seller shall have the option to substitute a Substitute Mortgage
Loan or Loans for such Mortgage Loan. The Repurchase Price for any such Mortgage
Loan repurchased by the Seller, and any amounts paid by the Seller in connection
with the preceding sentence, shall be deposited or caused to be deposited by the
Seller in the Payment Account maintained by the Securities Administrator
pursuant to Section 4.04 of the Sale and Servicing Agreement. The obligations of
the Seller to cure, purchase or substitute a Substitute Mortgage Loan shall
constitute the Purchaser's, the Indenture Trustee's and the Noteholders' sole
and exclusive remedy under this Agreement or otherwise respecting a breach of
representations or warranties hereunder with respect to the Mortgage Loans.

                  In the event that the Seller elects to substitute a Substitute
Mortgage Loan or Loans for a Deleted Mortgage Loan pursuant to this Section
3.1(b), the Seller shall deliver to the Indenture Trustee and the Master
Servicer, as appropriate, with respect to such Substitute Mortgage Loan or
Loans, the original Mortgage Note, the Mortgage, an Assignment of the Mortgage
in recordable form, and such other documents and agreements as are required by
Section 2.1, with the Mortgage Note endorsed as required by Section 2.1. No
substitution will be made in any calendar month after the Determination Date for
such month. Monthly Payments due with respect to Substitute Mortgage Loans in
the month of substitution, to the extent received by the Securities
Administrator, will be retained by the Securities Administrator and remitted by
the Securities Administrator to the Seller on the next succeeding Distribution
Date. After the month of substitution, the Seller shall be entitled to retain
all amounts received in respect of such Deleted Mortgage Loan. Upon such
substitution, the Mortgage Loan Schedule shall be amended to reflect the
addition of the Substituted Mortgage Loan or Loans, the Substitute Mortgage Loan
or Loans shall be subject to the terms of this Agreement in all respects and the
Seller shall be deemed to have made the representations and warranties with
respect to the Substitute Mortgage Loan contained in Section 3.1(b) as of the
date of substitution (other than representation (xx)).

                  In connection with the substitution of one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Securities
Administrator will determine the amount (if

                                       12
<PAGE>

any) by which the aggregate principal balance of all such Substitute Mortgage
Loans as of the date of substitution is less than the aggregate Stated Principal
Balance of all such Deleted Mortgage Loans (in each case after application of
the principal portion of the Monthly Payments due in the month of substitution
that are to be distributed to Noteholders in the month of substitution). The
Seller shall provide the Securities Administrator on the day of substitution for
immediate deposit into the Payment Account the amount of such shortfall, without
any reimbursement therefor. The costs of any substitution as described above,
including any related assignments, opinions or other documentation in connection
therewith shall be borne by the Seller.

                  Any cause of action against the Seller or relating to or
arising out of a breach by the Seller of any representations and warranties made
in clause (b) above shall accrue as to any Mortgage Loan upon (i) discovery of
such breach by the Seller or notice thereof by the party discovering such breach
and (ii) failure by the Seller to cure such breach, purchase such Mortgage Loan
or substitute a Substitute Mortgage Loan pursuant to the terms hereof.

                  Section 3.2. PURCHASER REPRESENTATIONS AND WARRANTIES. The
Purchaser hereby represents and warrants to the Seller as of the date hereof and
as of the Closing Date (or if otherwise specified below, as of the date so
specified) that:

         (a)      the Purchaser is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware, and is
qualified and in good standing to do business in each jurisdiction where such
qualification is necessary, except where the failure so to qualify would not
reasonably be expected to have a material adverse effect on its business as
presently conducted or on its ability to enter into this Agreement and to
consummate the transactions contemplated hereby;

         (b)      the Purchaser has full power to own its property, to carry on
its business as presently conducted and to enter into and perform its
obligations under this Agreement;

         (c)      the execution and delivery by the Purchaser of this Agreement
have been duly authorized by all necessary action on the part of the Purchaser;
and neither the execution and delivery of this Agreement, nor the consummation
of the transactions herein contemplated hereby, nor compliance with the
provisions hereof, will conflict with or result in a breach of, or constitute a
default under, any of the provisions of any law, governmental rule, regulation,
judgment, decree or order binding on the Purchaser or its properties or the
certificate of formation or limited liability company agreement of the
Purchaser, except those conflicts, breaches or defaults which would not
reasonably be expected to have a material adverse effect on the Purchaser's
ability to enter into this Agreement and to consummate the transactions
contemplated hereby;

         (d)      the execution, delivery and performance by the Purchaser of
this Agreement and the consummation of the transactions contemplated hereby do
not require the consent or approval of, the giving of notice to, the
registration with, or the taking of any other action in respect of, any state,
federal or other governmental authority or agency, except those consents,
approvals, notices, registrations or other actions as have already been
obtained, given or made;

                                       13
<PAGE>

         (e)      this Agreement has been duly executed and delivered by the
Purchaser and, assuming due authorization, execution and delivery by the Seller,
constitutes a valid and binding obligation of the Purchaser enforceable against
it in accordance with its terms (subject to applicable bankruptcy and insolvency
laws and other similar laws affecting the enforcement of the rights of creditors
generally); and

         (f)      except as previously disclosed to the Purchaser in the
Prospectus Supplement, there are no actions, suits or proceedings pending or, to
the best of the Purchaser's knowledge, threatened against the Purchaser, before
or by any court, administrative agency, arbitrator or governmental body (i) with
respect to any of the transactions contemplated by this Agreement or (ii) with
respect to any other matter which in the judgment of the Purchaser if determined
adversely to the Purchaser or would reasonably be expected to materially and
adversely affect the Purchaser's ability to perform its obligations under this
Agreement; and the Purchaser is not in default with respect to any order of any
court, administrative agency, arbitrator or governmental body so as to
materially and adversely affect the transactions contemplated by this Agreement;

                                       14
<PAGE>

                                   ARTICLE IV

                               SELLER'S COVENANTS

                  Section 4.1. COVENANTS OF THE SELLER. The Seller hereby
covenants that, except for the transfer hereunder with respect to the Mortgage
Loans, the Seller will not sell, pledge, assign or transfer to any other Person,
or grant, create, incur or assume any Lien on, any Mortgage Loan, whether now
existing or hereafter created, or any interest therein; the Seller will notify
the Indenture Trustee, as assignee of the Purchaser, of the existence of any
Lien (other than as provided above) on any Mortgage Loan immediately upon
discovery thereof; and the Seller will defend the right, title and interest of
the Indenture Trustee, on behalf of the Trust Fund, in, to and under the
Mortgage Loans, whether now existing or hereafter created, against all claims of
third parties claiming through or under the Seller.

                                    ARTICLE V

                      LIMITATION ON LIABILITY OF THE SELLER

                  Section 5.1. LIMITATION ON LIABILITY OF THE SELLER. None of
the directors, officers, employees or agents of the Seller shall be under any
liability to the Purchaser, it being expressly understood that all such
liability is expressly waived and released as a condition of, and as
consideration for, the execution of this Agreement. Except as and to the extent
expressly provided in the Basic Documents, the Seller shall not be under any
liability to the Trust Fund, the Indenture Trustee or the Noteholders. The
Seller and any director, officer, employee or agent of the Seller may rely in
good faith on any document of any kind prima facie properly executed and
submitted by any Person respecting any matters arising hereunder.

                                   ARTICLE VI

                                   TERMINATION

                  Section 6.1. TERMINATION. The respective obligations and
responsibilities of the Seller and the Purchaser created hereby shall terminate,
except for the Seller's indemnity obligations as provided herein, upon the
termination of the Trust Fund pursuant to the terms of the Trust Agreement.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

                  Section 7.1. AMENDMENT. This Agreement may be amended from
time to time by the Seller and the Purchaser only by written agreement signed by
the Seller and the Purchaser.

                  Section 7.2. GOVERNING LAW. This Agreement shall be governed
by and construed in accordance with the laws of the State of New York and the
obligations, rights and

                                       15
<PAGE>

remedies of the parties hereunder shall be determined in accordance with such
laws, without regarding to its rules and principles governing conflicts of law.

                  Section 7.3. NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered at or mailed by registered mail, postage prepaid, addressed
as follows:

                           (i)      if to the Seller:

                                    MortgageIT Holdings, Inc.
                                    33 Maiden Lane, 6th Floor
                                    New York, New York  10038
                                    Attention: General Counsel

or, such other address as may hereafter be furnished to the Purchaser in writing
by the Seller.

                           (ii)     if to the Purchaser:

                                    MortgageIT Securities Corp.
                                    33 Maiden Lane, 6th Floor
                                    New York, New York  10038
                                    Attention: General Counsel

or such other address as may hereafter be furnished to the Seller in writing by
the Purchaser. .

                  Section 7.4. SEVERABILITY OF PROVISIONS. If any one or more of
the covenants, agreements, provisions or terms of this Agreement shall be held
invalid for any reason whatsoever. then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.

                  Section 7.5. RELATIONSHIP OF PARTIES. Nothing herein contained
shall be deemed or construed to create a partnership or joint venture between
the parties hereto, and the services of the Seller shall be rendered as an
independent contractor and not as agent for the Purchaser.

                  Section 7.6. COUNTERPARTS. This Agreement may be executed in
two or more counterparts and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts together shall constitute one and the same Agreement.

                  Section 7.7. SURVIVAL. The representations and warranties made
herein by the Seller and the provisions of Article V hereof shall remain
operative and in full force and effect and shall survive the purchase of the
Mortgage Loans hereunder and the delivery of the Mortgage Loans and related
documents to the Indenture Trustee and the Custodian.

                  Section 7.8. FURTHER AGREEMENTS. The Purchaser and the Seller
each agree to execute and deliver to the other such additional documents,
instruments or agreements as may be necessary or appropriate to effectuate the
purposes of this Agreement. Each of the Purchaser and

                                       16
<PAGE>

the Seller agrees to use its best reasonable efforts to take all actions
necessary to be taken by it to cause the Notes to be issued and rated in the
highest rating category by the Rating Agency, with the Notes to be offered
pursuant to the Purchaser's shelf registration statement, and each party will
cooperate with the other in connection therewith.

                  Section 7.9. INTENTION OF THE PARTIES. It is the intention of
the parties that the Purchaser is purchasing, and the Seller is selling, the
Mortgage Loans (other than the servicing rights with respect thereto), rather
than a loan by the Purchaser to the Seller secured by the Mortgage Loans.
Accordingly, the parties hereto each intend to treat this transaction with
respect to the Mortgage Loans for federal income tax purposes as a sale by the
Seller, and a purchase by the Purchaser, of the Mortgage Loans (other than the
servicing rights with respect thereto). The Purchaser will have the right to
review the Mortgage Loans and the Related Documents to determine the
characteristics of the Mortgage Loans which will affect the federal income tax
consequences of owning the Mortgage Loans and the Seller will cooperate with all
reasonable requests made by the Purchaser in the course of such review.

                  Section 7.10. SUCCESSORS AND ASSIGNS; ASSIGNMENT OF PURCHASE
AGREEMENT. This Agreement shall bind and inure to the benefit of and be
enforceable by the Seller, the Purchaser and their respective successors and
assigns. The obligations of the Seller under this Agreement cannot be assigned
or delegated to a third party without the consent of the Purchaser, which
consent shall be at the Purchaser's sole discretion. The parties hereto
acknowledge that the Purchaser is acquiring the Mortgage Loans for the purpose
of assigning the Mortgage Loans to the Indenture Trustee, on behalf of the Trust
Fund, for the benefit of the Noteholders and Certificateholders. As an
inducement to the Purchaser to purchase the Mortgage Loans, the Seller
acknowledges and consents to the assignment by the Purchaser to the Trustee, on
behalf of the Trust Fund of all of the Purchaser's rights against the Seller
pursuant to this Agreement and to the enforcement or exercise of any right or
remedy against the Seller pursuant to this Agreement by the Purchaser. Such
enforcement of a right or remedy by the Indenture Trustee, on behalf of the
Trust Fund, shall have the same force and effect as if the right or remedy had
been enforced or exercised by the Purchaser directly.

                                       17
<PAGE>

                  IN WITNESS WHEREOF, the Seller and the Purchaser have caused
their names to be signed to this Mortgage Loan Purchase Agreement by their
respective officers thereunto duly authorized as of the day and year first above
written.

                                            MORTGAGEIT SECURITIES CORP.
                                              as Purchaser

                                            By: /s/ John R. Cuti
                                               ---------------------
                                            Name:  John R. Cuti
                                            Title: Secretary

                                            MORTGAGEIT HOLDINGS, INC.
                                              as Seller

                                            By: /s/ John R. Cuti
                                               ---------------------
                                            Name:  John R. Cuti
                                            Title: Secretary

                                       18
<PAGE>

                                    EXHIBIT 1

                             MORTGAGE LOAN SCHEDULE

   [In accordance with Rule 202 of Regulation S-T this Mortgage Loan Schedule
      is being filed in paper pursuant to a continuing hardship exemption.]

<PAGE>

                                    EXHIBIT 2

          Appendix E of the Standard & Poor's Glossary For File Format
                        FOR LEVELS(R) VERSION 5.6 REVISED

Standard & Poor's has categorized loans governed by anti-predatory lending laws
in the Jurisdictions listed below into three categories based upon a combination
of factors that include (a) the risk exposure associated with the assignee
liability and (b) the tests and thresholds set forth in those laws. Note that
certain loans classified by the relevant statute as Covered are included in
Standard & Poor's High Cost Loan Category because they included thresholds and
tests that are typical of what is generally considered High Cost by the
industry.

                                       2
<PAGE>

<TABLE>
<CAPTION>

STANDARD & POOR'S
HIGH COST LOAN CATEGORIZATION

------------------------------------------------------------------------------------------------------------
State/Jurisdiction      Name of Anti-Predatory                              Category under Applicable
                        Lending Law/Effective Date                          Anti-Predatory Lending Law
---------------------   -------------------------------------------------   --------------------------------
<S>                     <C>                                                 <C>
Arkansas                Arkansas  Home Loan  Protection Act, Ark. Code      High Cost Home Loan
                        Ann. ss.ss. 23-53-101 et seq.
                        Effective July 16, 2003
---------------------   -------------------------------------------------   --------------------------------
Cleveland Heights, OH   Ordinance  No.  72-2003 (PSH), Mun. Code  ss.ss.    Covered Loan
                        757.01 et seq.
                        Effective June 2, 2003
---------------------   -------------------------------------------------   --------------------------------
Colorado                Consumer Equity Protection, Colo. Stat. Ann.        Covered Loan
                        ss.ss. 5-3.5-101 et seq.
                        Effective for covered loans offered or entered
                        into  on  or  after   January  1,  2003.   Other
                        provisions  of the Act  took  effect  on June 7,
                        2002
---------------------   -------------------------------------------------   --------------------------------
Connecticut             Connecticut  Abusive Home Loan Lending Practices    High Cost Home Loan
                        Act, Conn. Gen. Stat. ss.ss. 36a-746 et seq.
                        Effective October 1, 2001
---------------------   -------------------------------------------------   --------------------------------
District of Columbia    Home  Loan   Protection   Act,   D.C.               Covered Loan
                        Code  ss.ss. 26-1151.01 et seq.
                        Effective for loans closed on or after January
                        28, 2003
---------------------   -------------------------------------------------   --------------------------------
Florida                 Fair Lending Act,  Fla.  Stat.  Ann. ss.ss.         High Cost Home Loan
                        494.0078 et seq.
                        Effective October 2, 2002
---------------------   -------------------------------------------------   --------------------------------
Georgia (Oct. 1,        Georgia  Fair  Lending  Act, Ga. Code Ann. ss.ss.   High Cost Home Loan
2002 - Mar. 6, 2003)    7-6A-1 et seq.
                        Effective October 1, 2002 - March 6, 2003
---------------------   -------------------------------------------------   --------------------------------
</TABLE>

                                       3
<PAGE>

<TABLE>
<CAPTION>

---------------------   -------------------------------------------------   --------------------------------
<S>                     <C>                                                 <C>
Georgia as amended      Georgia  Fair  Lending  Act, Ga.  Code Ann.         High Cost Home Loan
(Mar. 7, 2003           ss.ss. 7-6A-1 et seq.
- current)              Effective  for loans closed on or after March 7,
                        2003
---------------------   -------------------------------------------------   --------------------------------
HOEPA Section 32        Home  Ownership  and  Equity  Protection  Act of    High Cost Loan
                        1994, 15 U.S.C. ss. 1639, 12 C.F.R.  ss.ss.
                        226.32 and 226.34
                        Effective October 1, 1995, amendments October
                        1, 2002
---------------------   -------------------------------------------------   --------------------------------
Illinois                High Risk Home Loan Act, Ill. Comp.  Stat.  tit.    High Risk Home Loan
                        815, ss.ss. 137/5 et seq.
                        Effective January 1, 2004 (prior to this date,
                        regulations under Residential Mortgage License
                        Act effective from May 14, 2001)
---------------------   -------------------------------------------------   --------------------------------
Indiana                 Indiana Home Loan Practices Act, Ind. Code Ann.     High Cost Home Loan
                        ss.ss. 24-9-1-1 ET SEQ. Effective for loans
                        originated on or after January 1, 2005.
---------------------   -------------------------------------------------   --------------------------------
Kansas                  Consumer   Credit  Code, Kan. Stat. Ann.  ss.ss.    High  Loan  to  Value  Consumer
                        16a-1-101 et seq.                                   Loan (id. ss. 16a-3-207) and;
                                                                            ---------------------------------
                        Sections 16a-1-301 and 16a-3-207 became             High APR  Consumer  Loan (id. ss.
                        effective April 14, 1999; Section 16a-3-308a        16a-3-308a)
                        became effective July 1, 1999
---------------------   -------------------------------------------------   --------------------------------
Kentucky                2003 KY H.B.  287 - High Cost Home Loan Act, Ky.    High Cost Home Loan
                        Rev. Stat. ss.ss. 360.100 et seq.
                        Effective June 24, 2003
---------------------   -------------------------------------------------   --------------------------------
Maine                   Truth in Lending,  Me. Rev. Stat. tit. 9-A,         High Rate High Fee Mortgage
                        ss.ss. 8-101 et seq.
                        Effective September 29, 1995 and as amended
                        from time to time
---------------------   -------------------------------------------------   --------------------------------
</TABLE>

                                       4
<PAGE>

<TABLE>
<CAPTION>

---------------------   -------------------------------------------------   --------------------------------
<S>                     <C>                                                 <C>
Massachusetts           Part 40 and Part 32, 209 C.M.R. ss.ss. 32.00        High Cost Home Loan
                        ET SEQ. and 209 C.M.R. ss.ss. 40.01 ET SEQ.
                        Effective March 22, 2001 and amended from time
                        to time
---------------------   -------------------------------------------------   --------------------------------
                        Massachusetts Predatory Home Loan Practices Act     High Cost Home Mortgage Loan
                        Mass. Gen. Laws ch. 183C, ss.ss. 1 ET SEQ.
                        Effective November 7, 2004
---------------------   -------------------------------------------------   --------------------------------
Nevada                  Assembly  Bill  No.  284, Nev. Rev. Stat. ss.ss.    Home Loan
                        598D.010 et seq.
                        Effective October 1, 2003
---------------------   -------------------------------------------------   --------------------------------
New Jersey              New Jersey Home Ownership  Security Act of 2002,    High Cost Home Loan
                        N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.
                        Effective for loans closed on or after November
                        27, 2003
---------------------   -------------------------------------------------   --------------------------------
New York                N.Y. Banking Law Article 6-l Effective for          High Cost Home Loan
                        applications made on or after April 1, 2003
---------------------   -------------------------------------------------   --------------------------------
New Mexico              Home Loan  Protection  Act, N.M. Rev. Stat. ss.ss.  High Cost Home Loan
                        58-21A-1 et seq.
                        Effective as of January 1, 2004; Revised as of
                        February 26, 2004
---------------------   -------------------------------------------------   --------------------------------
North Carolina          Restrictions  and  Limitations on High Cost Home    High Cost Home Loan
                        Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.
                        Effective July 1, 2000; amended October 1, 2003
                        (adding open-end lines of credit)
---------------------   -------------------------------------------------   --------------------------------
Ohio                    H.B. 386  (codified  in various  sections of the    Covered Loan
                        Ohio Code), Ohio Rev. Code Ann. ss.ss. 1349.25 et
                        seq.
                        Effective May 24, 2002
---------------------   -------------------------------------------------   --------------------------------
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>

---------------------   -------------------------------------------------   --------------------------------
<S>                     <C>                                                 <C>
Oklahoma                Consumer   Credit  Code   (codified  in  various    Subsection 10 Mortgage
                        sections of Title 14A)
                        Effective July 1, 2000; amended effective
                        January 1, 2004
---------------------   -------------------------------------------------   --------------------------------
South Carolina          South  Carolina  High  Cost  and  Consumer  Home    High Cost Home Loan
                        Loans Act, S.C. Code Ann. ss.ss. 37-23-10 et seq.
                        Effective for loans taken on or after January
                        1, 2004
---------------------   -------------------------------------------------   --------------------------------
West Virginia           West  Virginia   Residential   Mortgage  Lender,    West  Virginia   Mortgage  Loan
                        Broker and  Servicer Act, W. Va. Code Ann. ss.ss.   Act Loan
                        31-17-1 et seq.
                        Effective June 5, 2002
---------------------   -------------------------------------------------   --------------------------------
</TABLE>

STANDARD & POOR'S
COVERED LOAN CATEGORIZATION

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------
State/Jurisdiction      Name of Anti-Predatory                              Category under Applicable
                        Lending Law/Effective Date                          Anti-Predatory Lending Law
---------------------   -------------------------------------------------   --------------------------------
<S>                     <C>                                                 <C>
Georgia  (Oct.  1,      Georgia  Fair  Lending Act, Ga. Code Ann. ss.ss.    Covered Loan
2002 - Mar. 6, 2003)    7-6A-1 et seq.
                        Effective October 1, 2002 - March 6, 2003
---------------------   -------------------------------------------------   --------------------------------
New Jersey              New Jersey Home Ownership  Security Act of 2002,    Covered Home Loan
                        N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.
                        Effective November 27, 2003 - July 5, 2004
---------------------   -------------------------------------------------   --------------------------------
</TABLE>

                                       6
<PAGE>

STANDARD & POOR'S
HOME LOAN CATEGORIZATION

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------
State/Jurisdiction      Name of Anti-Predatory                              Category under Applicable
                        Lending Law/Effective Date                          Anti-Predatory Lending Law
---------------------   -------------------------------------------------   --------------------------------
<S>                     <C>                                                 <C>
Georgia  (Oct.  1,      Georgia  Fair  Lending Act, Ga. Code Ann. ss.ss.    Home Loan
2002 - Mar. 6, 2003)    7-6A-1 et seq.
                        Effective October 1, 2002 - March 6, 2003
---------------------   -------------------------------------------------   --------------------------------
Indiana                 Indiana Home Loan Practices Act,                    Home Loan
                        Ind. Code Ann. ss.ss. 24-9-1-1 ET SEQ.
                        Effective for loans originated on or after
                        January 1, 2005.
---------------------   -------------------------------------------------   --------------------------------
New Jersey              New Jersey Home Ownership  Security Act of 2002,    Home Loan
                        N.J. Rev. Stat. ss.ss. 46:10B-22 et seq.
                        Effective for loans closed on or after November
                        27, 2003
---------------------   -------------------------------------------------   --------------------------------
New Mexico              Home Loan  Protection Act, N.M. Rev. Stat. ss.ss.   Home Loan
                        58-21A-1 et seq.
                        Effective as of January 1, 2004; Revised as of
                        February 26, 2004
---------------------   -------------------------------------------------   --------------------------------
North Carolina          Restrictions  and  Limitations on High Cost Home    Consumer Home Loan
                        Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.
                        Effective July 1, 2000; amended October 1, 2003
                        (adding open-end lines of credit)
---------------------   -------------------------------------------------   --------------------------------
South Carolina          South Carolina High Cost and Consumer Home          Consumer Home Loan
                        Loans Act, S.C. Code Ann. ss.ss. 37-23-10
                        ET SEQ. Effective for loans taken on or
                        after January 1, 2004
---------------------   -------------------------------------------------   --------------------------------
</TABLE>

                                       7<PAGE>

                                                                    EXHIBIT 10.1

Confidential treatment has been requested for portions of this Exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated by ***. A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.

                                LICENSE AGREEMENT

                                     BY AND
                                      AMONG

                           ALTAIR NANOMATERIALS, INC.,

                         SPECTRUM PHARMACEUTICALS, INC.

                                       AND

                          ALTAIR NANOTECHNOLOGIES, INC.
                   (only with respect to Sections 6.1 and 10.2)

<PAGE>
                               TABLE OF CONTENTS
<TABLE>
<S>                                                                    <C>
ARTICLE 1. DEFINITIONS.....................................            1
      1.1     "Affiliate"..................................            1
      1.2     "Agreement"..................................            2
      1.3     "Altair Indemnitees".........................            2
      1.4     "API"........................................            2
      1.5     "Claim"......................................            2
      1.6     "Commercially Reasonable Efforts"............            2
      1.7     "Combination Product"........................            2
      1.8     "Compound"...................................            2
      1.9     "Compounds"..................................            2
      1.10    "Confidential Information"...................            2
      1.11    "Current Market Price".......................            3
      1.12    "Disclosing Party"...........................            3
      1.13    "Dollars" or "$".............................            3
      1.14    "EMEA".......................................            3
      1.15    "FDA"........................................            3
      1.16    "Field"......................................            3
      1.17    "First Commercial Introduction"..............            3
      1.18    "Force Majeure"..............................            3
      1.19    "Heads"......................................            3
      1.20    "Improvement(s)".............................            3
      1.21    "Indemnified Party"..........................            3
      1.22    "Indemnifying Party".........................            3
      1.23    "JDC"........................................            3
      1.24    "Know-How"...................................            4
      1.25    "Launch" or "Launched".......................            4
      1.26    "Loss".......................................            4
      1.27    "Manufacturing Cost".........................            4
      1.28    "MHLW".......................................            4
      1.29    "NDA"........................................            4
      1.30    "Net Sales"..................................            4
      1.31    "Patents"....................................            5
      1.32    "Patent Royalty Payment(s)"..................            6
      1.33    "Phase III Trial"............................            6
      1.34    "Product(s)".................................            6
      1.35    "Recipient"..................................            6
      1.36    "Region".....................................            6
      1.37    "Regulatory Authority".......................            6
      1.38    "Regulatory Approval"........................            6
      1.39    "Representatives"............................            6
      1.40    "Reporting Period"...........................            6
      1.41    "Rest of Territory"..........................            6
      1.42    "Spectrum Indemnitees".......................            6
      1.43    "Sublicense Milestone Payments"..............            6
      1.44    "Technology Royalty Payments"................            7
      1.45    "Territory"..................................            7
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                   <C>
      1.46    "Third Party"................................            7
      1.47    "Third Party Offer"..........................            7
      1.48    "Total Supply Price".........................            7
      1.49    "Trademark"..................................            7
      1.50    "Trade Secrets"..............................            7
      1.51    "United States" or "U.S."....................            7

ARTICLE 2. GRANT OF RIGHTS.................................            7
      2.1     Grant of License Rights to Spectrum in the
              Territory....................................            7
      2.2     Sublicense of Spectrum's Rights..............            7
      2.3     Altair Reservation of Rights.................            8

ARTICLE 3. PRODUCT DEVELOPMENT AND COMMERCIALIZATION.......            8
      3.1     Joint Development Committee..................            8
      3.2     Development Efforts..........................            9
      3.3     Development Plan.............................           10
      3.4     Marketing....................................           10
      3.5     Spectrum's Diligence Obligations.............           10
      3.6     Strategic Alliance...........................           10

ARTICLE 4. DATA AND INFORMATION; REGULATORY MATTERS........           11
      4.1     Regulatory Approval..........................           11
      4.2     Communications with Regulatory Authorities...           11
      4.3     Compliance with Regulatory Standards; Adverse
              Events; Post-Marketing Surveillance..........           11
      4.4     Product Complaints; Product Recall...........           12

ARTICLE 5. SUPPLY OF API...................................           12
      5.1     Supply Criteria..............................           12
      5.2     Right of First Negotiation...................           12
      5.3     Right to Manufacture.........................           13
      5.4     Ownership of Manufacturing Data..............           14
      5.5     ***..........................................           14

ARTICLE 6. MILESTONE AND ROYALTY PAYMENTS..................           14
      6.1     Upfront and Milestone Payments...............           14
      6.2     Sublicense Milestone Payments................           15
      6.3     Intellectual Property Royalty Payments.......           16
      6.4     Records and Examination......................           17
      6.5     Mode of Payment; Foreign Exchange............           18
      6.6     Taxes........................................           18
      6.7     Interest.....................................           18

ARTICLE 7. TRADEMARKS......................................           19
      7.1     Trademarks...................................           19
      7.2     Cooperation; Enforcement of Trademarks.......           19
</TABLE>

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                                       ii
<PAGE>

<TABLE>
<S>                                                                   <C>
      7.3     Labeling, Advertising and Promotional
              Materials....................................           19
      7.4     Quality Control..............................           19

ARTICLE 8. IMPROVEMENTS....................................           19
      8.1     Disclosure of Improvements...................           19
      8.2     Ownership of Improvements....................           20
      8.3     Grant of License to Improvements.............           20
      8.4     License from a Third Party...................           20

ARTICLE 9. MAINTENANCE OF PATENT; PATENT INFRINGEMENT......           20
      9.1     Patent Prosecution and Maintenance...........           20
      9.2     Patent Infringement by Third Party...........           22
      9.3     Infringement Action by Third Parties.........           23
      9.4     ***..........................................           23

ARTICLE 10. REPRESENTATIONS AND WARRANTIES.................           23
      10.1    Representations and Warranties...............           23
      10.2    Additional Representations in Connection
              with the Issuances of Common Shares..........           24
      10.3    Additional Representations of Altair.........           25
      10.4    Limitations on Representations and
              Warranties...................................           27

ARTICLE 11.................................................           27

COVENANTS..................................................           27
      11.1    Preservation of Title........................           27
      11.2    No Conflicts.................................           27

ARTICLE 12. CONFIDENTIALITY................................           28
      12.1    Standard of Care.............................           28
      12.2    Non-Disclosure and Non-Use...................           28
      12.3    Exceptions...................................           28
      12.4    No Misappropriation..........................           29
      12.5    Return of Confidential Information...........           29

ARTICLE 13. TERM AND TERMINATION...........................           29
      13.1    Term.........................................           29
      13.2    Unilateral Termination.......................           29
      13.3    Termination for Material Breach..............           30
      13.4    Termination for Insolvency or Bankruptcy.....           30
      13.5    Effects of Termination.......................           30
      13.6    Work-in-Progress.............................           32

ARTICLE 14. INDEMNIFICATION................................           32
      14.1   Indemnification by Spectrum...................           32
      14.2   Indemnification by Altair.....................           32
      14.3   Claims Procedures.............................           33

ARTICLE 15. DISPUTE RESOLUTION.............................           33
</TABLE>

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                                      iii
<PAGE>

<TABLE>
<S>                                                                   <C>
      15.1    Escalation...................................           33
      15.2    Arbitration..................................           34
      15.3    Patent and Trademark Matters.................           34

ARTICLE 16. MISCELLANEOUS..................................           35
      16.1    Governing Law................................           35
      16.2    Assignment...................................           35
      16.3    Force Majeure................................           35
      16.4    Publicity and Disclosure.....................           35
      16.5    Notices......................................           36
      16.6    Amendment; Waiver............................           36
      16.7    Severability.................................           36
      16.8    Compliance with Applicable Laws..............           36
      16.9    Survival.....................................           37
      16.10   No Agency; No Implied Licenses...............           37
      16.11   Construction.................................           37
      16.12   Captions.....................................           37
      16.13   Entire Agreement.............................           37
      16.14   Counterparts; Facsimiles.....................           37
</TABLE>

                                       iv
<PAGE>

                                LICENSE AGREEMENT

      This License Agreement, dated as of January 28, 2005 (the "Effective
Date"), is entered into by and between:

      ALTAIR NANOMATERIALS, INC. (hereinafter "Altair"), a Nevada corporation
with principal offices at 204 Edison Way, Reno, Nevada 89502; SPECTRUM
PHARMACEUTICALS, INC. (hereinafter "Spectrum"), a Delaware corporation with
principal offices at 157 Technology Drive, Irvine California 92618; and (only
with respect to Sections 6.1 and 10.2) ALTAIR NANOTECHNOLOGIES, INC., a Canada
corporation with principal offices at 204 Edison Way, Reno, Nevada 89502.

                                    RECITALS

      WHEREAS, Altair is the owner of Patents, Know-How, Trade Secrets and
Trademarks (each, as defined below) relating to Compounds (as defined below);

      WHEREAS, on the terms and conditions set forth herein, Spectrum desires to
obtain from Altair, and Altair desires to grant to Spectrum, the rights set
forth herein, including a license under Altair's Patents, Know-How, Trade
Secrets and Trademarks, and any Improvements to develop and commercialize one or
more Products (as defined below).

      NOW, THEREFORE, in consideration of the premises and mutual covenants and
agreements set forth below, Altair and Spectrum (individually referred to as
"Party" and collectively as "Parties") hereby agree as follows:

                                   ARTICLE 1.
                                   DEFINITIONS

      Except as otherwise expressly provided herein or unless the context
otherwise requires: (a) the use of the term "including" shall mean "including
but not limited to"; (b) the words "herein", "hereof", "hereunder" and other
words of similar import refer to this Agreement as a whole, and not to any
particular provision; (c) the use of the phrase "by Spectrum" shall mean "by
Spectrum (and/or on behalf of Spectrum)," and the use of the phrase "by Altair"
shall mean "by Altair (and/or on behalf of Altair)"; and (d) the following
initially capitalized terms in this Agreement, whether used in the singular or
plural, shall have the following meanings:

      1.1   "AFFILIATE" of a Party shall mean any entity which directly or
indirectly controls, is controlled by, or is under common control with a Party
to this Agreement. For purposes of this definition, "control" or "controlled"
means ownership, directly or through one or more Affiliates, of more than fifty
percent (50%) of the shares of stock entitled to vote for the election of
directors, in the case of a corporation, or more than fifty percent (50%) of the
equity interests in the case of any other type of legal entity,

                                       1
<PAGE>

status as a general partner in any partnership, or any other arrangement whereby
a Party controls or has the right to control the Board of Directors or
equivalent governing body of a corporation of other entity.

      1.2   "AGREEMENT" shall mean this License Agreement, including all
schedules attached hereto, all as may be respectively amended, modified or
supplemented in writing by the Parties from time to time in accordance with the
terms of this License Agreement.

      1.3   "ALTAIR INDEMNITEES" is defined in Section 14.1.

      1.4   "API" shall mean active pharmaceutical ingredient, and for purposes
of this Agreement shall mean the Compound included in the Product for sale in
the Field in the Territory.

      1.5   "CLAIM" is defined in Section 14.1.

      1.6   "COMMERCIALLY REASONABLE EFFORTS" shall mean the standard that a
reasonable business person would use to develop, manufacture, market, sell and
distribute, a product owned by it or to which it has rights, which is of similar
market potential at a similar stage in its product life, taking into account,
among other factors, the competitiveness of the marketplace, the proprietary
position of the product and the profitability of the product.

      1.7   "COMBINATION PRODUCT" shall mean any Product that contains, in
addition to any Compound, one or more clinically active pharmaceutical
ingredients owned or controlled by a Third Party, and other than another
Compound or any Improvement.

      1.8   "COMPOUND" shall mean either of the following chemical compounds:
(a) lanthanum oxycarbonate 2-hydrate or (b) lanthanum dioxycarbonate, known as
RenaZorb RZB 011 and RenaZorb RZB 012, respectively.

      1.9   "COMPOUNDS" shall mean RenaZorb RZB 011 and RenaZorb RZB 012.

      1.10  "CONFIDENTIAL INFORMATION" shall mean any proprietary or
confidential information of the Disclosing Party (except to the extent such
information falls within an exception recited in Section 12.3, below) that is
communicated in any way or form by the Disclosing Party to the Recipient, either
prior to or after the Effective Date of this Agreement, and whether or not such
information is identified as confidential. Information that is not identified as
confidential shall be deemed Confidential Information if the Recipient knows or
reasonably should have known that the information communicated by the Disclosing
Party is Confidential Information of the Disclosing Party. Information developed
by one Party based on or derived from Confidential Information disclosed by the
other Party shall be deemed Confidential Information of both Parties (and each
Party shall be deemed the Disclosing Party of such Confidential Information).
The terms and conditions of this Agreement shall be considered the Confidential
Information of both Parties.

                                       2
<PAGE>

      1.11  "CURRENT MARKET PRICE" shall mean the average of the reported
closing sale prices on the principal securities market for Altair
Nanotechnologies Inc.'s, or its successor's, common shares for the ***
consecutive trading days immediately preceding and including the date of the
milestone event.

      1.12  "DISCLOSING PARTY" shall mean the Party making disclosure of or
otherwise communicating its Confidential Information to the other Party.

      1.13  "DOLLARS" OR "$" shall mean the lawful currency of the United
States.

      1.14  "EMEA" shall mean the European Agency for the Evaluation of
Medicinal Products.

      1.15  "FDA" shall mean the United States Food and Drug Administration, or
any successor entity thereto performing similar functions.

      1.16  "FIELD" shall mean all human therapeutic and diagnostic uses,
excluding any non-human uses.

      1.17  "FIRST COMMERCIAL INTRODUCTION" shall mean the first date upon which
a Product is shipped for sale by Spectrum (or by an Affiliate or sublicensee of
Spectrum) in the ordinary course of business to a Third Party in any country in
the Territory, after Regulatory Approval.

      1.18  "FORCE MAJEURE" is defined in Section 16.3.

      1.19  "HEADS" is defined in Section 15.1.

      1.20  "IMPROVEMENT(S)" shall mean any and all inventions, discoveries,
improvements, modifications, Product or pharmaceutical formulations, new
indications, chemical processes, manufacturing processes, data (pre-clinical,
clinical or otherwise), information Trade Secrets and Know-How, whether or not
patented or patentable, regarding Compound or Product, that are: (a) conceived
or reduced to practice by either Party, its respective Affiliates or its
respective sublicensees or their respective contractors after the Effective
Date, (b) made in furtherance of, and as a direct result of, either Party
performing its obligations hereunder and (c) related to a Product or to the
manufacture or use of Product by either Party, its respective Affiliates or its
respective sublicensees during the Term.

      1.21  "INDEMNIFIED PARTY" is defined in Section 14.3.

      1.22  "INDEMNIFYING PARTY" is defined in Section 14.3.

      1.23  "JDC" shall mean the Joint Development Committee described in
Section 3.1(a).

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Securities and Exchange Commission. Confidential treatment has been requested
with respect to the omitted portions.

                                       3
<PAGE>

      1.24  "KNOW-HOW" shall mean, to the extent within the scope of the license
grants made herein and necessary for the use, manufacture, sale and importation
of Products, all data, results, information (technical and scientific),
marketing reports, expertise, pre-clinical, clinical and manufacturing data
regarding the Compounds and Products.

      1.25  "LAUNCH" OR "LAUNCHED" shall mean the first date on which the
Product is Detailed in a country in the Territory. For the purposes of this
Section 1.25, "Detailed" shall mean a sales presentation in the Territory to
medical professionals by a sales representative acting on behalf of Spectrum,
its Affiliate or sublicensee during which presentation the sales representative
promotes the Product.

      1.26  "LOSS" is defined in Section 14.1.

      1.27  "MANUFACTURING COST" shall mean, with respect to any pre-clinical
API or clinical API produced by a manufacturer, the sum of the following
components: (a) the costs of goods produced, including, without limitation,
direct labor, material and product testing costs of such pre-clinical API or
clinical API; (b) any Third Party royalty costs that are actually paid by such
manufacturer and are based solely and directly on the manufacture and sale to
Spectrum of such pre-clinical API or clinical API; and (c) if necessary, any
other costs borne by such manufacturer directly and solely for the transport,
customs clearance, duty and/or insurance for such pre-clinical API or clinical
API shipped to Spectrum FOB Spectrum's facilities in Irvine, California, United
States.

      1.28  "MHLW" shall mean the Ministry of Health and Labour and Welfare of
Japan.

      1.29  "NDA" shall mean a New Drug Application (as more fully described in
21 C.F.R. Part 314.5 et seq.), and all amendments and supplements (including
NDAs) thereto, filed with the FDA in the United States, or the equivalent
application filed with any equivalent Regulatory Authority in the Territory.

      1.30  "NET SALES" shall mean the amount received by Spectrum, its
Affiliates, its sublicensees or distributors on account of sales of a Product to
Third Parties in the Territory, less the following deductions to the extent
actually allowed or specifically allocated to the Product by the selling party
using generally accepted accounting principles:

      (i)   sales and excise taxes and duties paid or allowed by the selling
party and any other governmental charges (excluding income taxes) imposed upon
the production, importation, use or sale of such Product;

      (ii)  customary trade, quantity and cash discounts allowed on Product;

      (iii) allowances or credits to customers on account of rejection or return
of Product or on account of retroactive price reductions affecting such Product;

      (iv)  freight and transit insurance costs, if they are included in the
selling price for the Product invoiced to Third Parties, provided always that
such deduction shall not be greater than the balance between the selling price
actually invoiced to the Third Party

                                       4
<PAGE>

and the standard selling price which would have been charged to such Third Party
for such Product exclusive of freight and transit insurance in the respective
country or in a comparable country.

      For the avoidance of doubt, for each Product the Net Sales shall be
calculated only once for the first sale of such Product by either Spectrum, its
Affiliate, its sublicensees or its distributor, as the case may be, to a Third
Party which is neither an Affiliate, sublicensee or distributor of Spectrum. A
sale of Products by Spectrum, its Affiliate, its sublicensee or its distributor
to a wholesaler shall be regarded as the first sale of the Product for the
purpose of calculating Net Sales.

      Such deductions, to be applicable, must in each case be related
specifically to the Product and shall be actually allowed to or taken by Third
Party purchasers and not otherwise recovered by or reimbursed from the Third
Party purchasers to Spectrum, its Affiliates and/or its sublicensees. No
deductions shall be made for commissions paid to individuals whether they be
with independent sales agencies or regularly employed by Spectrum, its
Affiliates or its sublicensees and on their respective payrolls, or for cost of
collections.

      *** If Spectrum, its Affiliates or sublicensees receive non-monetary
consideration, Altair shall be paid in cash for its share of the value of such
consideration.

      Net Sales shall not include the amount received on account of sales of a
Product or of sales of a Product in a particular country for which the Term of
this Agreement has expired.

      With respect to sales of Combination Products, Net Sales of such
Combination Products shall be calculated by multiplying the Net Sales (as
described above with respect to Products) of the Combination Product by the
fraction A/(A+B), where A is the average sale price of the Product when sold in
finished form and B is the sum of the average sale price of each other
clinically active pharmaceutical ingredient included in the Combination Product,
when sold separately in finished form, in each case during the applicable
royalty reporting period or, if sales of both the Product and the other
clinically active pharmaceutical ingredients other than the Compound did not
occur in such period, then in the most recent royalty reporting period in which
sales of both occurred. In the event that such average sale prices cannot be
determined for both the Product and each other clinically active pharmaceutical
ingredient included in the Combination Product, Net Sales of such Combination
Products shall be determined by multiplying the Net Sales (as described above
with respect to Products) of the Combination Product by the fraction C/(C+D),
where C is the fair market value of the Product and D is the sum of the fair
market value of each other clinically active pharmaceutical ingredient included
in the Combination Product, such fair market values shall be determined in good
faith by the Parties.

      1.31  "PATENTS" shall mean any and all unexpired patents and patent
applications (and any patents issued in connection with such patent
applications), as

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with respect to the omitted portions.

                                       5
<PAGE>

specifically listed in Schedule 1.31, including any continuations,
continuations-in-part, divisions, continuing prosecution applications, requests
for continued examinations, extensions, term restorations, renewals, reissues,
re-examinations, and substitutions thereof, and any foreign counterparts
thereof, that claim the Compound(s), the Product(s), methods of making or using
the Compound(s), or methods of making or using the Product(s).

      1.32  "PATENT ROYALTY PAYMENT(S)" is defined in Section 6.3(a).

      1.33  "PHASE III TRIAL" shall mean a controlled study in humans of the
efficacy and safety of a Product that is designed to demonstrate clinically and
statistically whether the Product is safe and effective for use in a particular
indication in a manner sufficient to obtain Regulatory Approval for that Product
in a given country or territory.

      1.34  "PRODUCT(S)" shall mean any human pharmaceutical product containing
a Compound as an API for use in the Field.

      1.35  "RECIPIENT" shall mean the Party receiving or otherwise obtaining
Confidential Information from the Disclosing Party.

      1.36  "REGION" shall mean North America, Europe, Japan or Rest of
Territory.

      1.37  "REGULATORY AUTHORITY" shall mean, with respect to any particular
country, territory or union within the Territory, the governmental authority,
body, commission, agency or other instrumentality of such country, territory or
union with the primary responsibility for the evaluation or approval of medical
products before such medical product can be tested, marketed, promoted,
distributed or sold in such country, including such governmental bodies that
have jurisdiction over the pricing of such medical product. The term "Regulatory
Authority" includes the FDA, the EMEA, the European Member State competent
authorities, and the MHLW, as applicable.

      1.38  "REGULATORY APPROVAL" shall mean any approval(s), registrations or
authorizations of the relevant Regulatory Authority necessary for the marketing
and sale of Product in any country, territory or union in the Territory.

      1.39  "REPRESENTATIVES" is defined in Section 12.2.

      1.40  "REPORTING PERIOD" shall begin on the first day of each calendar
quarter or portion thereof and end on the last day of such calendar quarter or
portion thereof.

      1.41  "REST OF TERRITORY" shall mean, collectively, all countries and
territories in the Territory except for North America, Europe and Japan.

      1.42  "SPECTRUM INDEMNITEES" is defined in Section 14.2.

      1.43  "SUBLICENSE MILESTONE PAYMENTS" shall mean any upfront, milestone
and other payments (including any premiums paid in the purchase of securities,
or other

                                       6
<PAGE>

consideration) made by a sublicensee to Spectrum or its Affiliates, except for
royalty payments that are defined as a percentage of net sales of product,
pursuant to a sublicense of any rights granted by Altair pursuant to this
Agreement.

      1.44  "TECHNOLOGY ROYALTY PAYMENTS" is defined in Section 6.3(b).

      1.45  "TERRITORY" shall mean, subject to early termination pursuant to
Sections 3.5(a) or 13., all countries and territories in the world.

      1.46  "THIRD PARTY" shall mean any person or entity other than Altair,
Spectrum or their respective Affiliates.

      1.47  "THIRD PARTY OFFER" is defined in Section 5.3.

      1.48  "TOTAL SUPPLY PRICE" shall mean total actual cost of supply of API
to Spectrum including all items of Manufacturing Cost, supplier's profit and any
other charges to be paid by Spectrum for supply of API.

      1.49  "TRADEMARK" shall mean the trademark RenaZorb(TM).

      1.50  "TRADE SECRETS" shall mean, to the extent within the scope of the
license grants made herein and necessary for the use, manufacture, sale and
importation of Products, and the manufacture of Compounds, all Confidential
Information, inventions (including, without limitation, unpatented or
unpatentable inventions, but excluding Patents), techniques, methods, processes,
assays, developments, materials, compositions of matter of any type or kind,
standard operating procedures, formulas, specifications, technology, tooling,
and stability data.

      1.51  "UNITED STATES" or "U.S." shall mean the United States of America,
its territories and possessions.

                                   ARTICLE 2.
                                 GRANT OF RIGHTS

      2.1 GRANT OF LICENSE RIGHTS TO SPECTRUM IN THE TERRITORY. Subject to the
terms and conditions of this Agreement, including Altair's reservation of rights
set forth in Section 2.3, Altair hereby grants to Spectrum, and Spectrum hereby
accepts, an exclusive (even as to Altair), royalty-bearing license (with the
right to sublicense in accordance with Section 2.2), under the Patents,
Trademarks, Know-How and Trade Secrets to (a) use, have used, sell, have sold,
offer to sell, import and have imported, make or have made Products in the Field
in the Territory and (b) manufacture Compounds for use in the Field in the
Territory.

      2.2 SUBLICENSE OF SPECTRUM'S RIGHTS. This license includes the right of
Spectrum to grant sublicenses to Affiliates and Third Parties under the licenses
and rights set forth in this Article 2, provided that: (a) the execution of a
sublicense agreement with any Affiliate or Third Party shall not in any way
diminish, reduce or eliminate any of

                                       7
<PAGE>

Spectrum's obligations under this Agreement, and Spectrum shall remain primarily
liable for all such obligations; (b) prior to granting any sublicense, Spectrum
shall notify Altair of its proposed sublicense, including the name of the
proposed sublicensee and the rights to be sublicensed; (c) with respect to
sublicensees which are not pharmaceutical companies which sell products which
are competitive with products being sold or developed by Altair, Spectrum shall
obtain Altair's written approval prior to executing such sublicense, such
approval shall not be unreasonably withheld; and (d) Spectrum shall require and
cause each Affiliate sublicensee and Third Party sublicensee to agree in writing
in its sublicense to be bound by and comply with all of the provisions and
limitations of this Agreement applicable to Spectrum that are applicable to the
rights sublicensed. In the case that Spectrum grants sublicenses hereunder,
Spectrum always shall secure appropriate covenants, obligations and rights from
any such sublicensee so as to ensure that such sublicensee is also required to
comply with Spectrum's covenants and obligations hereunder, including, but not
limited to, its obligations related to payment of royalties and exercise of
commercially reasonable efforts to develop and market products, to the extent
that Spectrum shall not be performing such covenants and obligations. Within
twenty (20) business days after executing each such sublicense, Spectrum shall
notify Altair of the execution of such sublicense and shall, upon Altair's
written request, promptly deliver to Altair a true and complete copy of any
sublicense hereunder.

      2.3 ALTAIR RESERVATION OF RIGHTS. Notwithstanding anything to the contrary
in this Agreement, Altair expressly reserves the right for itself, to use and
exploit Altair's Patents, Trademarks, Know-How and Trade Secrets for all uses,
indications and formulations outside of the Field.

                                   ARTICLE 3.
                    PRODUCT DEVELOPMENT AND COMMERCIALIZATION

      3.1   JOINT DEVELOPMENT COMMITTEE

            (a) Representatives. Within thirty (30) days after the Effective
Date, the Parties shall form a joint development committee ("Joint Development
Committee" or "JDC") that shall consist of up to two (2) representatives each of
Altair and Spectrum, provided that the number of representatives of each of
Altair and Spectrum shall be equal at all times. A Party's representatives on
the JDC may be employees or consultants of, or other individuals that are
contractually bound to, such Party, and that agree to be bound by the terms of
confidentiality and other pertinent provisions of this Agreement. Each Party
shall retain the right to change its representatives to the JDC from time to
time, upon prior written notice to the other Party, or to appoint one or more
substitutes to serve in the place of an absent member(s).

            (b) Responsibilities. The JDC shall be the forum for exchange of
information on Spectrum's Product development and commercialization activities
(including pre- and post-Launch, pre-clinical and clinical studies, regulatory
activities, and Product Registration activities). The JDC's decision-making
authority shall be limited to pre-clinical Compound and Product development
matters only. More specifically, the JDC shall (i) discuss reports made by
Spectrum pursuant to Section

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<PAGE>

3.5(b); (ii) manage and oversee the pre-clinical development of Compounds and
Products in the Field, including, (A) overseeing and reviewing the pre-clinical
development efforts of the Parties in performing their respective activities
pursuant to this Agreement and (B) reviewing and approving the pre-clinical
development matters in the Development Plan (as defined below), and any proposed
modifications thereto; and, (iii) develop the Supply Criteria for API as set
forth in Section 5.1.

            (c) Meetings. The JDC shall meet as often as necessary, but no less
than once every three to four months. Initially, it may be necessary to meet at
least once every 3 months or more often. The Parties shall meet at such times
and at such locations as shall be mutually agreed by the Parties; however,
unless otherwise agreed by the Parties, the location of such meetings shall
alternate between Altair's place of business in Reno, Nevada and Spectrum's
place of business in Irvine, California should the Parties mutually agree to
meet in person. Meetings of the JDC may be held in person, by teleconference or
by videoconference. At least one (1) representative of each Party participating
in a meeting shall constitute a quorum. All decisions of the JDC related to
pre-clinical development shall be made by unanimous vote of the Parties, with
each Party to have one vote. At the invitation of either Party, employees,
consultants and other individuals that are involved in the pre-clinical
development of Products may attend JDC meetings as non-voting participants;
provided that, such employees, consultants and other individuals shall be under
obligations of confidentiality and non-use that are at least as stringent as
those set forth in this Agreement. In the event that an urgent pre-clinical
development matter requires a decision by the JDC, the JDC members may discuss
such matter and work to reach consensus without convening a JDC meeting. Each
Party shall be responsible for bearing its own expenses, and the expenses of its
representatives, in connection with JDC meeting participation.

            (d) Issue Resolution. The members of the JDC shall attempt in good
faith to reach consensus on any pre-clinical development issues presented to, or
considered by it. In the event that the JDC is unable to reach a unanimous
decision regarding an issue considered by it, then the JDC shall refer the issue
to the Chief Executive Officer of each Party, who shall meet as soon as possible
but no later than thirty (30) days after such referral, to discuss the matter in
a good faith attempt to resolve the issue in a commercially reasonable manner.
If the Parties are unable to resolve the issue, then the Chief Executive Officer
of Spectrum shall decide the matter.

      3.2 DEVELOPMENT EFFORTS

            (a) Responsibilities of Altair. If so requested by Spectrum, Altair
shall use Commercially Reasonable Efforts to assist Spectrum in the pre-clinical
development of Compounds and Products, including pre-clinical development
relating to chemistry, manufacturing and controls (CMC), in accordance with the
terms set forth in the Development Plan. In addition to the payments set forth
in Sections 6.1, 6.2 and 6.3 and any payments pursuant to Article 5, Spectrum
shall bear all reasonable costs and expenses in connection with Altair's
assistance pursuant to this Section 3.2(a). Such reasonable costs and expenses
shall be approved in advance by Spectrum. Notwithstanding the above, and except
for work performed under Section 3.3, Spectrum

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shall not be responsible for the cost of any work required by Altair to meet the
quality standards of API necessary to obtain and maintain Regulatory Approval
and the other criteria developed in accordance with Section 5.1 to supply the
API to Spectrum.

            (b) Responsibilities of Spectrum. All activities relating to the
development and commercialization of Products shall be undertaken at Spectrum's
sole responsibility, cost and expense, including: (i) all pre-clinical
development activities; (ii) all activities related to clinical trials; (iii)
all marketing, promotion, sales, distribution, import and export activities
relating to any Product; (iv) all activities relating to any regulatory filings,
registrations, applications and Regulatory Approvals relating to any of the
foregoing; and (v) subject to Article 5, all activities relating to the
manufacture and supply of Compound and Products. Except for any such regulatory
items which apply to Altair's manufacture of API pursuant to Article 5, Spectrum
shall own all regulatory filings, registrations, applications and Regulatory
Approvals relating to Products.

      3.3 DEVELOPMENT PLAN. Within *** after the Effective Date, Spectrum will
prepare and submit to the JDC for its review (and JDC's approval with respect to
pre-clinical development matters), a written Development Plan ("Development
Plan"). Such plan shall set forth (a) Spectrum's plans, and the timeline
therefore, for Product development activities (including pre-clinical and
clinical studies, and regulatory activities) to be conducted by Spectrum in
support of Regulatory Approval of Products throughout the Territory and (b) an
outline of the pre-clinical development assistance to be provided by Altair
pursuant to Section 3.2(a) and an estimated budget and payment schedule for such
assistance. The Development Plan shall be subject to modification from time to
time during the Term, provided that any such modification shall be submitted to
the JDC for its review (and JDC's approval with respect to pre-clinical
development matters).

      3.4 MARKETING. Prior to the anticipated First Commercial Introduction of a
Product anywhere in the Territory, Spectrum shall discuss with the JDC its
marketing plan for the Product, which shall include Spectrum's plans for and
activities related to advertising, labeling, marketing, promotion, sales and
distribution of such Product throughout the Territory. The marketing plan shall
be subject to modification from time to time by Spectrum during the Term, any
such modifications to be provided by Spectrum to the JDC for its comments.
Spectrum shall consider in good faith any comments made by the JDC in response
to such modifications to the marketing plan.

      3.5 SPECTRUM'S DILIGENCE OBLIGATIONS

            (a) Spectrum shall use Commercially Reasonable Efforts to develop
and commercialize one or more Products and to introduce one or more Products in
the Field and in the Territory. In the event that Spectrum fails to meet its
diligence obligations herein with respect to a certain country, in accordance
with the provisions and requirements of Section 13.3, for a material breach of
this provision, Altair shall have the

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right, but not the obligation, to terminate this Agreement with respect to that
country, and such country shall be automatically removed from the Territory.

            (b) Spectrum shall obtain Regulatory Approvals throughout the
Territory, and shall regularly report (no less than once every ***) to the JDC
with respect to Spectrum's Product formulation development (including all
ingredients used or planned to be used in the Product) and regarding efforts and
activities in connection with the the Development Plan and the marketing of the
Product.

            (c) In the event that Spectrum fails to: (i) *** within *** of the
Effective Date; and (ii) *** within *** of the Effective Date, then Altair shall
have the right, but not the obligation, to terminate this Agreement in whole;
provided that, the JDC shall regularly review these milestones and shall have
the authority to change them should scientific and/or regulatory circumstances
warrant such changes. Any modifications of these milestones by the JDC shall be
subject to the procedures set forth in Section 3.1, including Section 3.1(d) for
issue resolution.

      3.6 STRATEGIC ALLIANCE. The Parties shall negotiate in good faith to
establish a joint development program for the development of TiNano Spheres(TM)
for delivery of certain Spectrum compounds in certain human pharmaceutical
applications.

                                   ARTICLE 4.
                    DATA AND INFORMATION; REGULATORY MATTERS

      4.1 REGULATORY APPROVAL. Spectrum shall be responsible, at its expense,
for (i) preparing and filing all Investigational New Drug Applications (INDs)
and NDAs pertaining to the Product in the Field throughout the Territory (ii)
all activities necessary or appropriate to perform prior to filing such INDs and
NDAs, (iii) all activities related to obtaining approval(s) of such INDs and
NDAs and (iv) upon obtaining such approval(s), all activities and
responsibilities related to maintaining each Regulatory Approval in good
standing in compliance with all applicable laws and regulations. Spectrum shall
be the owner of all resulting Regulatory Approvals in the Territory.

      4.2 COMMUNICATIONS WITH REGULATORY AUTHORITIES. Spectrum shall keep Altair
and the JDC advised as to all material regulatory actions, issues and affairs in
the Territory, and shall provide Altair with copies of material official
regulatory actions and decisions.

      4.3 COMPLIANCE WITH REGULATORY STANDARDS; ADVERSE EVENTS; POST-MARKETING
SURVEILLANCE. Spectrum shall adhere to and comply with all applicable ethical,
legal and regulatory standards and requirements in connection with the
Regulatory Approval and commercialization of Products throughout the Territory.
Spectrum shall consult with Altair with respect to all investigations and
reports of adverse drug reactions and responses to Regulatory Authorities. Each
Party shall promptly deliver to the other all correspondence that it receives
from Regulatory Authorities relating to the safety of Product, except for
procedural, non-substantive communications.

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      4.4 PRODUCT COMPLAINTS; PRODUCT RECALL

            (a) Product Complaints. Spectrum shall have sole control over the
response to all material complaints regarding Product in the Territory. Altair
shall promptly refer any Product complaints in the Territory of which it becomes
aware to Spectrum for Spectrum's response. The Parties shall promptly provide to
each other copies of all relevant documentation and information regarding any
such Product complaints.

            (b) Product Recall. If either Spectrum or Altair discovers or
becomes aware of any fact, condition, circumstance or event (whether actual or
potential) concerning or related to Product that may reasonably require recall
or market withdrawal of Product or a "Dear Doctor" letter relating to Product,
such Party shall communicate such fact, condition, circumstance or event
promptly to the other Party. In the event (but only in the event) (i) any
governmental agency or Regulatory Authority issues a request, directive or order
that Product be recalled, (ii) a court of competent jurisdiction orders that
Product be recalled or (iii) Spectrum reasonably determines that Product should
be recalled or withdrawn from the market or that a "Dear Doctor" letter should
be sent relating to use of Product, Spectrum shall take all appropriate remedial
actions with respect thereto. To the extent that it is necessary or appropriate
to communicate with any person or entity in the Territory, including any
Regulatory Authority or governmental agency, the media or any customer,
concerning any such fact, condition, circumstance or event, Spectrum shall be
the primary contact concerning remedial action. Any costs associated with any
remedial action shall be borne by Spectrum, except where such remedial action
arose out of the failure of any API supplied by Altair to Spectrum under this
Agreement and any related supply agreement between Altair and Spectrum to meet
the API specifications set forth in such agreement, in which case the
responsibility for costs shall be determined on a case by case basis depending
on the comparative negligence of the Parties.

                                   ARTICLE 5.
                                  SUPPLY OF API

      5.1 SUPPLY CRITERIA. Within *** of the Effective Date, the JDC shall meet
to develop criteria for the supply of API necessary to support the
commercialization of Products (hereinafter "Supply Criteria"). Such Supply
Criteria shall include quantities of API (including time needed for the
manufacture of such API) necessary to support projected development, performance
and quality standards for such API (including, adherence to specifications and
full compliance to applicable Regulatory Authorities' regulations and guidelines
and quality standards for production processes such as cGMP), timelines to begin
manufacture of commercial quantities of API and manufacturing capacity. Such
Supply Criteria shall be determined by the JDC in accordance with the provisions
of Section 3.1 and shall serve as the basis for developing supply agreements as
set forth below.

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      5.2 RIGHT OF FIRST NEGOTIATION. At any time during the Term, if Spectrum
seeks to manufacture API, by itself, or through its Affiliates or any Third
Party, Altair shall have the right to negotiate an agreement with Spectrum to be
the exclusive supplier, on a Region-by-Region basis, of Spectrum's requirements
for API; provided that Altair is able to meet the quality standards of API
necessary to obtain and maintain Regulatory Approval in such Region and the
other Supply Criteria developed in accordance with Section 5.1. In addition, for
those Regions in which Altair proposes to supply API, it shall in good faith use
Commercially Reasonable Efforts to manufacture cGMP compliant API. In such
event, Spectrum shall first notify Altair in writing of its intention to seek a
supply of API. For a period of ninety (90) days from Altair's receipt of
Spectrum's written notice, Spectrum and Altair shall negotiate in good faith the
terms and conditions of a supply agreement. If, after such 90-day period, the
Parties are unable to agree to the terms of such supply agreement:

            (a) Within thirty (30) days, Altair shall provide to Spectrum its
final offer with respect to such supply agreement, terms of which shall
demonstrate compliance with the Supply Criteria and shall include: the Region(s)
to which its offer applies and the Total Supply Price for API, subject to
Section 5.5 below; and

            (b) Spectrum shall be free (subject to Section 5.3) to negotiate in
good faith a supply agreement with any Third Party, the terms of which shall
address the same terms as those in Altair's final offer (i.e., the Supply
Criteria, the applicable Region(s) and Total Supply Price).

      In the event that Altair declines to supply API for certain Region(s) or
any Regions in the Territory, Spectrum shall be free to negotiate a supply
agreement on any terms with any Third Party for the supply of API for such
Region(s) declined by Altair or for the whole Territory if Altair declines to
supply API in any Region, without regard to Section 5.3.

      5.3 RIGHT TO MANUFACTURE.

            (a) In the event that Altair demonstrates to the satisfaction of the
JDC, subject to the issue resolution requirements of Section 3.1(d), that it has
met or can meet, the Supply Criteria developed in accordance with Section 5.1
with respect to the Territory or the proposed Regions within the Territory, then
Altair shall have the right to manufacture API in the proposed Territory or
Regions on the terms proposed in its final offer unless: (a) within thirty (30)
days of Altair's final offer, Spectrum receives a bona fide Third Party offer to
manufacture API for any such Region(s) covered by Altair's final offer pursuant
to Section 5.2(a) ("Third Party Offer"); and (b) such Third Party Offer meets
the Supply Criteria; and (c) such Third Party Offer's Total Supply Price is less
than the Total Supply Price in Altair's final offer pursuant to Section 5.2(a).
***

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            (b) In the event that the JDC determines, subject to the issue
resolution requirements of Section 3.1(d), that Altair is unable to meet the
Supply Criteria in any Region or the Territory, then Spectrum shall be free to
enter into a supply agreement with any Third Party for supply of Compound in any
such Region or the Territory. For the avoidance of doubt, this Section 5.3 shall
not apply to a Third Party offer to manufacture API for the Region(s) or the
Territory for which Altair declines to supply API.

      5.4 OWNERSHIP OF MANUFACTURING DATA. In the event that Altair is the
exclusive supplier of API to Spectrum for the Territory, Altair shall solely own
all data, results and other information relating to the manufacture of API.
However, Altair shall share copies of all such data, results and other
information with Spectrum.

      5.5 ***

                                   ARTICLE 6.
                         MILESTONE AND ROYALTY PAYMENTS

      6.1 UPFRONT AND MILESTONE PAYMENTS. As consideration for the license
rights granted to Spectrum under Article 2, Spectrum shall pay to Altair the
following amounts, (each of which shall be payable only once per Product, unless
expressed otherwise below) each within thirty (30) days of the applicable events
set forth below, in accordance with the terms and conditions of this Article 6
(except as set forth in Section 6.2, under no circumstances shall such amounts,
once paid, be refundable or creditable against any other payments):

            (a) Upfront payment on the Effective Date: (i) Two hundred thousand
dollars ($200,000) to purchase common shares of Altair Nanotechnologies, Inc. or
its successor, subject to Section 10.2, at a 100% premium to the Current Market
Price as of the Effective Date; and (ii) One hundred thousand (100,000) shares
of common stock of Spectrum, subject to Section 10.2;

            (b) Upon demonstration of satisfactory ***. One hundred thousand
(100,000) shares of common stock of Spectrum, having the same restrictions as
those shares paid by Spectrum pursuant to Section 6.1(a), as of the date of the
report, deemed necessary by the Parties for purposes of FDA registration, of
animal testing demonstrating ***. The demonstration study for this milestone
shall be designed by Altair in consultation with Spectrum and shall be conducted
at Spectrum's expense by an independent laboratory selected by Altair. In the
event that the Parties can not agree, taking into account the experimental
margin of error, whether this milestone has been met as to the similarity of the
results, or if the Parties agree that ***. Within a reasonable time after such
consultations, Spectrum shall notify Altair whether it wishes to continue with
development of Product under this Agreement despite ***. Upon such notice that
it intends to continue developing Product, the milestone will be deemed met, and
the

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payment shall become due and payable. If Spectrum does not intend to continue
such development, this Agreement shall be deemed terminated pursuant to Section
13.2.

            (c) Upon *** in a Phase III Trial of a Product: (i) *** to purchase
common shares of Altair Nanotechnologies, Inc., or its successor, subject to
Section 10.2, at a 100% premium to the Current Market Price as of the date of
*** in a Phase III Trial of a Product or (ii) *** in the event that Altair
Nanotechnologies, Inc.'s, or its successor's, common shares is not publicly
traded on the date of such milestone event;

            (d) Upon the acceptance of an NDA for a Product by the FDA: (i) ***
to purchase common shares of Altair Nanotechnologies, Inc., or its successor,
subject to Section 10.2, at a 50% premium to the Current Market Price of Altair
Nanotechnologies, Inc.'s common shares as of the date of the acceptance of an
NDA for a Product in the United States or (ii) *** in the event that Altair
Nanotechnologies, Inc.'s, or its successor's, common shares is not publicly
traded on the date of such milestone event;

            (e) Upon Obtaining NDA Approval by the FDA: ***

            (f) Upon Obtaining NDA approval by the EMEA ***

            (g) Upon Obtaining NDA approval by the MHLW: ***

            (h) Milestones based on annual, Territory-wide Net Sales: Except as
set forth in Section 6.2, for the avoidance of doubt, the following milestone
payments shall not be creditable against any other milestone payments
hereunder:

                  (i)   Upon *** of annual Net Sales: ***

                  (ii)  Upon *** of annual Net Sales: ***

                  (iii) Upon *** of annual Net Sales: ***

                  (iv)  Upon *** of annual Net Sales: ***

                  (v)   Upon *** of annual Net Sales: ***

      Spectrum shall notify Altair of the achievement of each of the milestone
events set forth in subsections (b) through (g) of this Section 6.1 within the
payment timeline corresponding to the milestone event set forth above.

      6.2 SUBLICENSE MILESTONE PAYMENTS. Spectrum or its Affiliates, as
applicable, shall pay to Altair a non-refundable, non-creditable payment of ***
of all Sublicense Milestone Payments; provided that, in the event that any
Sublicense Milestone Payments are due and owing on account of the attainment of
a sublicense milestone event that is the same as any of those set forth in
Section 6.1, then the amount of such Sublicense Milestone Payment to Altair
hereunder shall be *** of the difference between the milestone amount under
Section 6.1 and the Sublicense Milestone Payment for the same

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event under the provisions of the sublicense.

      6.3 INTELLECTUAL PROPERTY ROYALTY PAYMENTS

            (a) Patent Royalty Rate; Reports. On a quarterly basis, and in
addition to any milestone payments payable to Altair pursuant to Section 6.1,
sublicense payments payable to Altair pursuant to Section 6.2, payments for
Altair's pre-clinical development assistance pursuant to Section 3.2(a), and any
payments for API payable to Altair pursuant to Article 5, Spectrum shall pay to
Altair, within ninety (90) days after the end of each Reporting Period, the
following intellectual property royalty payments ("Patent Royalty Payments") in
accordance with the terms and conditions of this Article 6:

                  (i)   *** percent (***%) of Net Sales for Annual
      Territory-wide Net Sales of up to ***

                  (ii)  *** percent (***%) of Net Sales for Annual
      Territory-wide Net Sales between ***

                  (iii) *** percent (***%) of Net Sales for Annual
      Territory-wide Net Sales exceeding ***

      The obligation of Spectrum to make the above Patent Royalty Payments shall
commence upon the first Launch in each country in the Territory, and shall apply
on a Product-by-Product and country-by-country basis for each given Product in
each given country with an applicable Patent until the expiration of the
last-to-expire Patent that covers the Product within the country in question.
Each Patent Royalty Payment shall be accompanied by a written report (to be
prepared in a mutually agreeable format), setting forth (without limitations)
information necessary for the calculation of such Patent Royalty Payment
(including, on a country-by-country basis, the gross sales of each Product
sold); the calculation of Net Sales from such gross sales; the royalties payable
in Dollars; and any withholding taxes required by law to be deducted. Unless
otherwise requested or consented to in writing by Altair, all Patent Royalty
Payments and reports related to Net Sales by Spectrum's Affiliates and its
sublicensees shall be made to Altair by Spectrum with (or as a part of)
Spectrum's own payments and reports.

            (b) Technology Royalty. In consideration of the rights and licenses
granted under Altair's Know-How, Trade Secrets and Trademarks to Spectrum,
Spectrum shall pay to Altair, on a country-by-country and Product-by-Product
basis, a royalty of *** commencing on the expiration of the last-to-expire
Patent that covers such Product within the country in question ("Technology
Royalty Payment") and continuing until there is generic competition within the
country in question. In addition, this Technology Royalty Payment shall also be
applicable in those countries for which there is no Patent covering such
Product(s), until there is generic competition within the country in question.
The Parties expressly agree that the payment period of this Technology

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Royalty Payment is not an extension of Altair's patent rights beyond their term,
but rather is a period determined for the convenience of the Parties in
appropriately compensating Altair for the rights and licenses granted herein
including those rights and licenses under Altair's Know-How, Trade Secrets and
Trademarks.

      Technology Royalty Payments shall be made on a quarterly basis and paid
within ninety (90) days after the end of each reporting period. Each Technology
Royalty Payment shall be accompanied by a written report (to be prepared in a
mutually agreeable format), setting forth (without limitations) information
necessary for the calculation of such Technology Royalty Payment (including, on
a country-by-country basis, the gross sales of each Product sold); the
calculation of Net Sales from such gross sales; the royalties payable in
Dollars; and any withholding taxes required by law to be deducted. Unless
otherwise requested or consented to in writing by Altair, all Technology Royalty
Payments and reports related to Net Sales by Spectrum's Affiliates and its
sublicensees shall be made to Altair by Spectrum with (or as a part of)
Spectrum's own payments and reports.

            (c) Reduction for Third Party Royalty Obligations. If it is
necessary for Spectrum to acquire and pay for one or more royalty-bearing
licenses from one or more Third Party(ies) in order to fully exercise the
license rights granted by Altair hereunder such that it is necessary for
Spectrum to pay royalties to such Third Party(ies), the royalties owed to Altair
under Section 6.3 shall be reduced by *** of the amount of such Third Party
royalties actually paid by Spectrum; ***

      6.4 RECORDS AND EXAMINATION

            (a) Records. Spectrum and its Affiliates shall keep full, true and
accurate books of account and supporting data and records, and shall cause its
sublicensees to do the same, containing all particulars that may be necessary
for the purpose of calculating and verifying Product sales, Net Sales, and
royalty obligations under this Agreement, on a Product-by-Product and
country-by-country basis for at least three (3) Spectrum fiscal years following
the end of the Spectrum fiscal year to which they pertain, for examination in
accordance with the provisions of Section 6.5(b).

            (b) Examination. If Altair disagrees with the reports provided by
Spectrum, pursuant to Section 6.3, with reasonable justification for such
disagreement, then upon reasonable written notice to Spectrum, a certified
public accountant designated by Altair and reasonably acceptable to Spectrum
shall have the right to audit such records of Spectrum and its Affiliates and to
review the terms of any sublicenses granted by Spectrum, in order to confirm the
accuracy and completeness of all such reports and all such payments. Altair
shall bear all costs and expenses incurred in connection with any such audit.
Such examination shall be made during regular business hours and upon at least
thirty (30) days prior written notice. After review of the accountant's
examination report, Spectrum shall promptly pay any uncontested, understated
amounts. Any overpayment shall be promptly refunded or shall be fully creditable
against amounts

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payable in subsequent payment periods, at Spectrum's election. Spectrum shall
pay contested, understated amounts, if any, that are due promptly after the
dispute is resolved. If Altair's accountant reasonably determines that Royalty
Payments under this Agreement have been, for any four (4) consecutive Reporting
Periods in total, understated by more than ***, Spectrum shall pay the
out-of-pocket costs of the examination. The Parties agree that all Spectrum and
its Affiliates information subject to examination under this Section 6.4(b) may
only be used by Altair for purposes germane to this Section 6.4(b). Altair shall
retain and cause its accountant to retain all such information in confidence.

      6.5 MODE OF PAYMENT; FOREIGN EXCHANGE. All upfront and milestone payments,
Royalty Payments, Minimum Annual Royalties and payments for the purchase of API
that are payable by Spectrum under this Agreement shall be paid in Dollars to
Altair via wire transfer of immediately available funds, or by check if
requested by Altair, and shall be made where directed by Altair from time to
time. For the purpose of computing Net Sales in a currency other than Dollars,
such currency shall be converted into Dollars using the average conversion rate
for the relevant period as reported by The Wall Street Journal on the last
Business Day of the applicable Reporting Period.

      6.6 TAXES. Each Party shall: comply with applicable tax authority
guidelines regarding filing and reporting for income tax purposes, discuss with
each other applicable tax provisions to this Agreement and reasonably cooperate
with each other in obtaining certain desired tax treatments. Neither Party shall
treat its relationship with the other Party under this Agreement as a
partnership or as a pass through entity for tax purposes. The Parties agree that
any taxes that Spectrum is required by law to withhold from amounts payable to
Altair under this Agreement (whether under this Article 6 or otherwise) shall be
deducted by Spectrum from the amounts paid to Altair hereunder at the rate(s)
required by applicable law, and shall be promptly paid to the appropriate
governmental authority on behalf of Altair. Spectrum shall promptly provide to
Altair receipts from the government or taxing authority evidencing payment of
such taxes, if available, or other written proof of payment if official receipts
are not available, and shall provide reasonable assistance to Altair to obtain
tax credits therefore.

      6.7 INTEREST. All payments not made by Spectrum when due shall bear
interest, calculated from the date such payment was due, at a rate per annum
equal to the lesser of: (a) two percent (2%) over the prime rate of interest as
published in the weekly Federal Reserve H.15 Bulletin, or any successor bulletin
thereto or (b) the highest rate permitted by applicable law.

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                                   ARTICLE 7.
                                   TRADEMARKS

      7.1 TRADEMARKS. Other than RenaZorb(TM), all trademarks used in connection
with each Product shall be owned by Spectrum. The development, creation,
registration, maintenance and defense of any trademark(s) other than
RenaZorb(TM) shall be at Spectrum's expense.

      7.2 COOPERATION; ENFORCEMENT OF TRADEMARKS. Altair shall, upon Spectrum's
request, cooperate with Spectrum in any action necessary or desirable to protect
the trademark(s) used or proposed to be used in connection with a Product.
Spectrum shall promptly notify Altair of any apparent infringement by a Third
Party of the Trademark. Spectrum shall also have the right, but not the
obligation, to enforce the Trademark, after notification to Altair and at
Spectrum's risk and expense (including, without limitation, in actions brought
under the Lanham Act in the U.S. and in actions based on comparative
advertising, commercial libel or similar claims in other countries of the
Territory). In any such case, Spectrum shall solicit the participation and views
of Altair during each stage of the action and keep Altair fully informed with an
opportunity to participate in the decision-making process. Spectrum may not
settle or compromise such case without the prior written consent of Altair. In
any such case, Altair shall be entitled, at its own expense, to join as a party
in pursuing enforcement if legally permissible. Should Altair's direct
participation in the legal proceedings be indispensable, Spectrum shall be
entitled to request Altair, at Spectrum's expense, to pursue remedies (which
request Altair shall not unreasonably refuse). On an ongoing basis, upon
Altair's reasonable request, Spectrum shall provide Altair with copies of all
relevant papers, pleadings, correspondence and other documentation in Spectrum's
possession or control relating to the registration, maintenance or enforcement
of the Trademark.

      7.3 LABELING, ADVERTISING AND PROMOTIONAL MATERIALS. All necessary
trademark notations, such as "(R)" or "(TM)" shall be used as appropriate with
the Trademark.

      7.4 QUALITY CONTROL. Spectrum agrees to use the Trademark only in
connection with the Products. When requested in writing, Spectrum agrees to send
to Altair samples of Product, Product labels, packaging, advertising copy and
promotional materials bearing the Trademark and any other documents which may
permit Altair to determine whether the Trademark uses meet the standards,
specifications and directions approved by Altair.

                                   ARTICLE 8.
                                  IMPROVEMENTS

      8.1 DISCLOSURE OF IMPROVEMENTS. Each Party shall promptly and fully
disclose to the other Party any and all Improvements. Such disclosure shall
provide sufficient details regarding the Improvement to enable the Parties to
properly evaluate the inventorship of such Improvement under the U.S. patent
laws.

                                       19

<PAGE>

      8.2 OWNERSHIP OF IMPROVEMENTS

      (a) Any Improvement that primarily pertains to the chemistry, morphology,
physical characteristics, etc. of the Compounds (including any modifications
thereto) shall be solely owned by Altair, regardless of which Party conceived,
developed or reduced to practice such Improvement. Any Improvement that
primarily pertains to Product manufacture, Product formulation or Product
delivery shall be solely owned by Spectrum, regardless of which Party conceived,
developed or reduced to practice such Improvement.

      (b) Subject to Section 9.1(c), any patent applications with respect to
Improvements which are solely owned by one Party as determined in subsection
8.2(a) and which are considered necessary in the reasonable legal and business
judgment of the owning Party will be prepared and filed by, and at the sole
expense of, such owning Party. Each Party hereby agrees to provide the other
with reasonable assistance in assigning (if applicable), preparing, filing,
prosecuting and maintaining such patent applications related to such
Improvements. Each Party shall own and maintain, at its sole expense, any
trademarks associated with the Improvements owned by such Party.

      8.3 GRANT OF LICENSE TO IMPROVEMENTS. Altair hereby grants to Spectrum a
non-exclusive, perpetual, worldwide, royalty-free license to use the
Improvements owned by Altair pursuant to subsection 8.2(a) in the Field.
Spectrum hereby grants to Altair a non-exclusive, perpetual, worldwide,
royalty-free license to use the Improvements owned by Spectrum pursuant to
subsection 8.2(a) outside of the Field. During the Term of this Agreement, both
Parties shall notify the other if it intends to grant a license to any such
Improvements to a Third Party. If, after receiving such notice, the other Party
notifies the Party intending to grant the license that such grant would be
competitive to its Products or products, then such third party license shall not
be granted during the Term of this Agreement.

      8.4 LICENSE FROM A THIRD PARTY. In the event that commercialization of a
Product, including a Product incorporating any Improvement, requires a license
from a Third Party, Spectrum shall consult with Altair regarding any such Third
Party license and the terms thereof. Altair may elect, where possible, to be a
licensee outside of the Field. Spectrum shall use its good faith effort to
assist Altair in obtaining such rights for Altair outside of the Field.

                                   ARTICLE 9.
                   MAINTENANCE OF PATENT; PATENT INFRINGEMENT

      9.1 PATENT PROSECUTION AND MAINTENANCE. *** Altair shall maintain, in its
responsibility and at its expense, those Patents which include claims outside
the Field and Spectrum shall maintain, in its responsibility and at its expense,
those Patents which solely relate to the Field.

            (a) Outside the Field. For Patents which include claims related to
uses outside the Field, Altair shall direct and control the preparation, filing,
prosecution and

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<PAGE>

maintenance of all such Patents in the Territory. Altair shall, in its sole
discretion and expense, select outside patent counsel to carry out such
activities. To the extent the patents or applications relate to any uses within
the Field, Altair shall consult with Spectrum and with the JDC with regard to
the preparation, filing, prosecution and/or maintenance of the Patents and the
scope of claims contained therein. Notwithstanding the preceding sentence,
however, Altair shall in all events have final decision-making authority with
respect to the preparation, filing, prosecution and/or maintenance of such
Patents and the scope of claims contained therein. Spectrum shall cooperate
fully with Altair, at Altair's request, in all matters relating to the
preparation, filing, prosecution and/or maintenance of the Patents, including
without limitation, signing any necessary or appropriate documents, providing
written and testimonial evidence, and doing such other acts as Altair may
reasonably require. In the event Altair elects to discontinue or abandon the
prosecution and/or maintenance of any such Patents, Altair shall give Spectrum
at least sixty (60) days' prior written notice of its election to discontinue or
abandon any such Patent during which time Spectrum may elect, in its sole
discretion, to continue and maintain such Patent at its sole cost and expense by
delivery of written notice to Altair. If Spectrum does not notify Altair in
writing during such sixty (60) day period that it is exercising such rights, the
Patent shall be deemed abandoned and neither Altair nor Spectrum shall have any
further responsibility for any such abandoned Patent.

      (b) Solely in the Field. Spectrum shall direct and control the
preparation, filing, prosecution and maintenance of all Patents in the Territory
which do not include claims related to uses outside of the Field. Spectrum
shall, in its sole discretion and expense, select outside patent counsel to
carry out such activities. Notwithstanding the foregoing, Spectrum shall consult
with Altair and with the JDC with regard to the preparation, filing, prosecution
and/or maintenance of the Patents and the scope of claims contained therein.
Notwithstanding the preceding sentence, however, Spectrum shall in all events
have final decision-making authority with respect to the preparation, filing,
prosecution and/or maintenance of such Patents and the scope of claims contained
therein. Altair shall cooperate fully with Spectrum, at Spectrum's request, in
all matters relating to the preparation, filing, prosecution and/or maintenance
of the Patents, including without limitation, signing any necessary or
appropriate documents, providing written and testimonial evidence, and doing
such other acts as Spectrum may reasonably require. In the event Spectrum elects
to discontinue or abandon the prosecution and/or maintenance of any such
Patents, such Patent shall at that time be excluded from the definition of
Patents and from the scope of the licenses granted under this Agreement.
Spectrum shall give Altair at least sixty (60) days' prior written notice of its
election to discontinue or abandon any such Patent during which time Altair may
elect, in its sole discretion, to continue and maintain such Patent at its sole
cost and expense by delivery of written notice to Spectrum. If Altair does not
notify Spectrum in writing during such sixty (60) day period that it is
exercising such rights, the Patent shall be deemed abandoned and neither Altair
nor Spectrum shall have any further responsibility for any such abandoned
Patent. If Altair does not exercise its rights to maintain such Patent, and
Spectrum later elects to continue and maintain such Patent, then the Patent
shall remain within the definition of Patents and licenses hereunder.

      (c) Joint Inventions. For purposes of this Agreement all inventions
relating to API, the Compounds or Products are Improvements unless otherwise
mutually

                                       21

<PAGE>

agreed to by the Parties. If the Parties mutually agree that an invention is not
an Improvement which ownership is governed by Section 8.2, all other inventions
jointly created, generated, conceived, made, developed, or reduced to practice
jointly by the Parties as of the result of the work performed under this
Agreement shall be the joint property of Spectrum and Altair. Spectrum shall
file, prosecute and maintain patents to any joint inventions, as determined by
the U.S. patent laws. The costs and expenses of such joint inventions shall be
borne by Spectrum. If Spectrum no longer desires to retain responsibility for
such joint invention or for such joint invention in a particular country,
Spectrum will provide at least sixty (60) days written notice to Altair, and
Altair shall have the right, but not the obligation, to assume such
responsibility at its sole cost and expense.

      9.2 PATENT INFRINGEMENT BY THIRD PARTY

            (a) Notice of Infringement. If, during the Term, either Party
becomes aware of any infringement, threatened infringement or suspected
infringement by any Third Party of any Patent in the Field in the Territory,
such Party shall promptly give written notice to the other Party thereof, with
all available details in its possession.

            (b) Spectrum's Right to Pursue Remedies Against Infringement.
Spectrum shall have the first right, but not the obligation, to file suit or
take other action to prevent such infringements of any Patents. To the extent
Spectrum takes such action, Spectrum shall control any such action and may enter
into settlements, stipulated judgments or other arrangements respecting such
infringement, at its own expense; provided, however, that such proposed
settlements, judgments or arrangements shall be subject to Altair's consent, not
to be unreasonably withheld. In the event that Spectrum takes such action,
Spectrum shall indemnify, defend and hold Altair harmless from any costs,
expenses and liabilities respecting the action for such claimed infringement.
Altair shall permit an action to be brought by Spectrum in Altair's name if
required by law. Altair agrees to provide all assistance that Spectrum may
reasonably require in any litigation, including providing written evidence,
deposition and trial testimony, for which Spectrum shall pay to Altair a
reasonable hourly rate of compensation. Any damages or other recovery from an
infringement action undertaken by Spectrum pursuant to this Section 9.2(b) shall
be used (1) first to reimburse Spectrum's legal costs and expenses incurred in
such action, and (2) thereafter apportioned between the Parties as necessary to
return the Parties as nearly as possible to the same relative position they
would have had without the infringement. Spectrum shall promptly notify Altair
in writing of its intention with regard to any such infringement. In the event
that Spectrum elects not to take action against an actual or threatened
infringement, Altair shall have the right to take action against such
infringement, in which case Altair shall (i) pay any and all costs and expenses
incurred in such action, (ii) indemnify, defend and hold Spectrum harmless from
any costs, expenses or liability respecting all such action, and (iii) retain
any and all recovery from such action. Spectrum agrees to provide all assistance
that Altair may reasonably require in any litigation, including providing
written evidence, deposition and trial testimony, for which Altair shall pay to
Spectrum a reasonable hourly rate of compensation.

                                       22

<PAGE>

      9.3 INFRINGEMENT ACTION BY THIRD PARTIES. If a Third Party makes or
threatens against Spectrum, its Affiliates or sublicensees any claim of
infringement of a right based upon the use of, or arising as a result of the
exercise of the rights and licenses granted hereunder (each an "Alleged
Infringement"), Spectrum shall have the right and obligation to respond to and
defend any and all such Alleged Infringements. Spectrum shall promptly notify
Altair in writing and provide a copy of (i) any claim of Alleged Infringement
filed with a court or governmental authority or (ii) any written notice of an
Alleged Infringement from an attorney or law firm. Altair shall have the right
to jointly manage any such litigation, including the selection of counsel, and
agrees to provide any necessary assistance that Spectrum may reasonably require
in any such defense action. In the event of disagreement between Spectrum and
Altair regarding litigation strategy or other matters pertaining to the
litigation, including the selection of counsel, Spectrum shall have the final
decision after consideration of Altair's position. If the Parties are successful
in defending against the Alleged Infringement, reasonable costs of defense shall
be equally shared between the Parties. Should claims be made directly against
Altair, Altair shall also have the right, at its own expense, to retain counsel
of its choice for its own defense in which case each Party will be responsible
for its own costs and attorney fees. ***

      9.4 ***

                                  ARTICLE 10.
                         REPRESENTATIONS AND WARRANTIES

      10.1 REPRESENTATIONS AND WARRANTIES. Each Party hereby represents and
warrants to the other Party as of the Effective Date that:

            (a) such Party (i) is duly organized, validly existing and in good
standing under the laws of the jurisdiction where it is organized; (ii) has the
requisite power and authority and the legal right to enter into this Agreement
and to perform its obligations hereunder; and (iii) has taken all necessary
action on its part to authorize the execution and delivery of this Agreement and
the performance of its obligations hereunder;

            (b) this Agreement has been duly executed and delivered on behalf of
such Party, and constitutes a legal, valid and binding obligation, enforceable
against such Party in accordance with its terms, except as enforceability may be
limited by bankruptcy, fraudulent conveyance, insolvency, reorganization,
moratorium and other laws relating to or affecting creditors' rights generally
and by general equitable principles;

            (c) all necessary consents, approvals and authorizations of all
governmental authorities and other persons required to be obtained by such Party
in connection with this Agreement have been obtained; and

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Certain information on this page has been omitted and filed separately with the
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            (d) the execution and delivery of this Agreement and the performance
of such Party's obligations hereunder, to the present knowledge of the Party,
(i) do not conflict with or violate any requirement of any material law or
regulation of any court, governmental body or administrative or other agency
having authority over it, and (ii) do not conflict with, or constitute default
under, any contractual obligation of such Party.

      10.2 ADDITIONAL REPRESENTATIONS IN CONNECTION WITH THE ISSUANCES OF COMMON
SHARES. Notwithstanding the other provisions in this Agreement, and for purposes
of this Section 10.2 only, Altair Nanotechnologies, Inc. shall be considered a
"Party" to the following representations and warranties:

            (a) Each Party represents, warrants and covenants that (i) all
common shares, or shares of common stock, as the case may be, that may be issued
to the other Party under Section 6.1 of this Agreement will, upon issuance, be
duly authorized, validly issued, fully paid and nonassessable, will be issued in
compliance with all applicable laws (subject to Section 10.2(i)), and will be
issued without charge to the other Party for any transaction-related tax or
other expenses in connection with such issuance and (ii) Altair
Nanotechnologies, Inc. will at all times have authorized and reserved for
issuance hereunder a sufficient number of common shares to provide for the
issuances contemplated by Section 6.1 of this Agreement.

            (b) Each Party confirms that it has been given sufficient access to
information regarding the other and in connection with its decision to purchase
or receive the common shares, or shares of common stock, as the case may be, of
the other Party, including the opportunity to ask questions of, and receive
answers from, persons acting on behalf of the other Party and concerning their
respective financial affairs, prospects and condition.

            (c) Spectrum represents and warrants that it is resident in or
otherwise subject to the securities legislation of the United States, and the
purchase by and sale to Spectrum of any common shares of Altair
Nanotechnologies, Inc. has occurred only in the United States.

            (d) Altair represents and warrants that (i) it is resident in or
otherwise subject to the securities legislation of the United States, and the
purchase by and sale to Altair of any common stock of Spectrum has occurred only
in the United States; (ii) Altair, by reason of its business or financial
expertise, has the capacity to protect its own interests in connection with its
acquisition of shares of the common stock of Spectrum and (iii) Altair is an
"accredited investor" as defined in Rule 501 of Regulation D of the Securities
Act of 1933, as amended (the "Securities Act").

            (e) Each Party represents, warrants and covenants that it shall
acquire the common shares, or shares of common stock, as the case may be, of the
other Party for its own account and not for the account or on behalf of others,
and it is doing so with the intent of retaining the common shares, or shares of
common stock, as the case may be, as an investment and without the current
intent to redistribute the common shares, or shares of common stock, as the case
may be.

                                       24

<PAGE>

            (f) Spectrum acknowledges that: (i) no securities commission or
similar authority has reviewed or passed on the merits of the Altair
Nanotechnologies, Inc. common shares issuable under this Agreement; (ii) without
limiting the generality of the foregoing, any common shares of Altair
Nanotechnologies, Inc. issued to Spectrum pursuant to Section 6.1 hereof may not
be sold, transferred, hypothecated or otherwise traded in Canada or to or for
the benefit of a Canadian resident until the date which is four months and one
day following the issuance thereof and the certificate evidencing such common
shares may bear a legend to that effect; (iii) there is no government or other
insurance covering such common shares of Altair Nanotechnologies, Inc.; (iv)
there are risks associated with the acquisition of the common shares of Altair
Nanotechnologies, Inc.; and (v) there will be restrictions under Canadian and
provincial securities laws on Spectrum's ability to resell the common shares of
Altair Nanotechnologies, Inc.

            (g) Altair acknowledges that: (i) no securities commission or
similar authority has reviewed or passed on the merits of the shares of Spectrum
common stock issuable under this Agreement; (ii) there is no government or other
insurance covering such common shares of Altair Nanotechnologies, Inc.; and
(iii) there are risks associated with the acquisition of shares of the common
stock of Spectrum, including without limitation those described in Spectrum's
filings with the Securities and Exchange Commission.

            (h) Each Party acknowledges that (i) it must and shall bear the
economic risk of holding the common shares, or shares of common stock, as the
case may be, of the other Party for an indefinite period of time because at the
time such shares are issued they will not have been registered under the
Securities Act or any other securities law and, therefore, cannot be sold unless
they are subsequently registered under applicable national, federal, provincial
and state securities laws or an exemption from such registration is available;
(ii) the shares may not be resold or transferred on the official stock transfer
records of the other Party without furnishing to such Party an opinion of
counsel reasonably acceptable to the other Party that such sale or transfer of
the shares will not violate the registration provisions of applicable national,
federal, provincial and state securities laws; and (iii) certificates
representing the shares shall have endorsed on them a restrictive legend to this
effect.

            (i) Each Party acknowledges that the other Party is relying on the
representations, warranties, covenants and acknowledgments in this Section 10.2
to ensure that any common shares, or shares of common stock, as the case may be,
issued under the terms of this Agreement can be issued in reliance on exemptions
from applicable registration and prospectus requirements under Canadian
securities laws and exemptions from registration requirements under United
States federal and state securities laws.

      10.3 ADDITIONAL REPRESENTATIONS OF ALTAIR

            (a) Altair hereby represents and warrants that as of the Effective
Date: (i) it has not previously granted any right, license or interest in or to
the Patents, Trade

                                       25

<PAGE>

Secrets, or Know-How, or any portion thereof, inconsistent with the rights
granted to Spectrum herein; and (ii) to the best of its present knowledge, there
are no material adverse proceedings, claims or actions pending or threatened
relating to the Patents which would materially interfere with Altair's
performance of its obligations or power to make the grants and covenants
hereunder, or Spectrum's use of the Patents.

            (b) To Altair's present knowledge, as of the Effective Date, all
patent or patent applications within the Patents are in compliance with all
legal requirements in the Territory regarding the filing, examination, and
maintenance fees. The above shall not apply to a requirement that, if not
satisfied, would not result in a revocation or lapse or otherwise adversely
affect the enforceability of the patents in question. To Altair's present
knowledge, Altair has not taken any action or, failed to take any action
(including a failure to disclose material prior art in connection with the
prosecution of any patent), or used or enforced or, failed to use or enforce any
of the patent or patent applications within the Patents in a manner that would
result in the abandonment or unenforceability of any of the patent or patent
applications within the Patents.

            (c) As of the Effective Date, to Altair's present knowledge, no
patent or patent applications within the Patents have been or are now involved
in any interference, reissue, reexamination or opposing proceeding in any
jurisdiction within the Territory. To Altair's present knowledge, no such action
has been threatened. To Altair's present knowledge, there is no patent of any
person that claims the same subject matter as is claimed in the patent or patent
applications within the Patents, and Altair is not aware of any prior art that
invalidates any claim in any of the patent or patent applications within the
Patents.

            (d) To Altair's present knowledge, Altair owns, or possesses
adequate licenses or other rights to use, all of the Patents, Trade Secrets, and
Know How.

            (e) To Altair's present knowledge, the use of the Patents, Trade
Secrets, or Know-How to develop, make, have made, use, sell, offer for sale,
have sold, import and export and commercialize Products in the Field in the
Territory, would not infringe upon, violate or constitute the unauthorized use
of any rights owned or controlled by any Third Party, including any patent of
any Third Party. No litigation is now pending and no notice or other claim has
been received by Altair, (A) alleging that Altair has engaged in any activity or
conduct that infringes upon, violates or constitutes the unauthorized use of the
patents of any Third Party, or (B) challenging the ownership, use, validity or
enforceability of any of the patent or patent applications within the Patents.

            (f) To Altair's present knowledge, no Third Party is
misappropriating, infringing, diluting or violating any of the Patents, Trade
Secrets, or Know-How, and no claims for any of the foregoing have been brought
against any Third Party by Altair. Altair has taken reasonable steps in
accordance with normal industry practice to protect all of the Patents, Trade
Secrets, or Know-How.

            (g) Altair is the owner of all right, title and interest in and to
all of the Patents. The Patents are free and clear of any and all encumbrances,
covenants,

                                       26

<PAGE>

conditions and restrictions or, other adverse claims or interests of any kind or
nature, and Altair has not received any written notice or claim or, any oral
notice or claim, challenging Altair's complete and exclusive ownership of the
Patents or suggesting that any other person has any claim of legal or beneficial
ownership with respect thereto, and there is no agreement, decree, arbitral
award or other provision or contingency which obligates Altair to grant licenses
in the Patents.

      10.4 LIMITATIONS ON REPRESENTATIONS AND WARRANTIES. THE LIMITED WARRANTIES
CONTAINED IN SECTIONS 10.1, 10.2 AND 10.3 ARE THE SOLE WARRANTIES GIVEN BY THE
PARTIES HEREUNDER. NEITHER PARTY MAKES ANY IMPLIED WARRANTIES OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE, NOR, EXCEPT AS SET FORTH IN THIS ARTICLE
10, ANY WARRANTIES AS TO THE VALIDITY OR ENFORCEABILITY OF ANY PATENTS LICENSED
HEREUNDER, THE NON-INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD
PARTY, OR THE SAFETY OR EFFICACY OF ANY PRODUCT MADE HEREUNDER NOR ANY
WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES OR
OTHERWISE, AND ALL OTHER EXPRESS OR IMPLIED REPRESENTATIONS AND WARRANTIES
PROVIDED BY COMMON LAW, STATUTE OR OTHERWISE ARE HEREBY DISCLAIMED BY BOTH
PARTIES. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR
INDIRECT, PUNITIVE, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES OF ANY KIND,
INCLUDING LOSS OF PROFITS AND LOSS OR INTERRUPTION OF BUSINESS; PROVIDED THAT
THE FOREGOING PROVISION SHALL NOT BE CONSTRUED TO LIMIT (a) A PARTY'S
INDEMNIFICATION OBLIGATION UNDER THIS AGREEMENT FOR THIRD PARTY CLAIMS WHICH MAY
INCLUDE INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY AND OTHER TYPES OF
DAMAGES; OR (b) DAMAGES ARISING FROM BREACH OF A PARTY'S CONFIDENTIALITY
OBLIGATIONS.

                                   ARTICLE 11.
                                    COVENANTS

      11.1 PRESERVATION OF TITLE. Altair shall retain ownership and title to all
Patents licensed hereunder and shall use diligent efforts at least equivalent to
those Altair uses for its other technology of like kind to preserve and maintain
such ownership and title, subject to Spectrum fully performing all of its
obligations under this Agreement.

      11.2 NO CONFLICTS. Neither Party shall grant any right, license or
interest in or to the Patents, or any portion thereof, inconsistent with the
rights granted to Spectrum herein. Without the other Party's prior written
consent, neither Party shall enter into any agreement that creates additional
obligations upon the other Party or limits the exercise of the other Party's
rights hereunder or diminishes the other Party's rights hereunder.

                                       27

<PAGE>

                                  ARTICLE 12.
                                CONFIDENTIALITY

      The terms of that certain Nondisclosure/nonuse Agreement by and between
Altair Nanotechnologies, Inc. and Spectrum, dated November 3, 2004 (to the
extent such Nondisclosure/nonuse Agreement is not inconsistent to this
Agreement) shall be in addition to the provisions of this Article 12.

      12.1 STANDARD OF CARE. Each Party shall keep all Confidential Information
of the other Party in strict confidence and shall not use such Confidential
Information for any purpose other than the purposes of, or as permitted by, this
Agreement. This provision will survive any termination or expiration of the
Agreement. In consideration of disclosure by either Party to the other Party of
Confidential Information in written, oral, graphic, demonstrative or electronic
form pursuant to the terms of this Agreement, the Recipient undertakes, unless
otherwise stipulated herein, (a) to protect and maintain the Disclosing Party's
Confidential Information using the same degree of care as it uses to maintain
the secrecy of its own information of like kind, but in no event less than a
reasonable standard of care; and (b) to use the Disclosing Party's Confidential
Information only to accomplish the purposes of this Agreement.

      12.2 NON-DISCLOSURE AND NON-USE. Recipient shall not disclose the
Disclosing Party's Confidential Information, except only to its and its
Affiliates' officers, directors, employees, agents or consultants, to authorized
licensees and sublicensees, to authorized contractors or subcontractors, or to
Regulatory Authorities, in each case only when such person(s) have a need to
know such Confidential Information in furtherance of the objectives of this
Agreement (collectively, the "Representatives"), to the extent necessary to
enable such Representatives to perform a Party's obligations under this
Agreement; provided that prior to such disclosure, such Representatives shall be
bound to Recipient by obligations of non-use and non-disclosure that are similar
to or more stringent than those imposed on Recipient pursuant to this Agreement
and that cover the Confidential Information to be disclosed to such
Representatives. Each Party further agrees to refrain, and to cause its
Representatives to refrain, from directly or indirectly taking any action that
would constitute or facilitate the unauthorized use or disclosure of the
Disclosing Party's Confidential Information.

      12.3 EXCEPTIONS. The obligations of confidence, non-use and non-disclosure
set out in this Article 12 shall not apply to information to the extent that:

            (a) Such information is, or later becomes, publicly available
through no fault of Recipient or any of Recipient's Representatives; provided
that Confidential Information shall not be deemed to be generally available to
the public merely because some part of such information is embodied in general
disclosures or because individual features, components or combinations thereof
are now or become known to the public; or

            (b) Recipient can demonstrate and document that such information was
in its rightful possession, without a restriction on use or disclosure, prior to
receipt of the information from the Disclosing Party (or from an entity acting
on behalf of the Disclosing Party); or

            (c) Recipient can demonstrate such information was rightfully
received from a Third Party without any restriction on use or disclosure of such
information; or

                                       28
<PAGE>

            (d) Recipient can demonstrate by written evidence that such
information was independently developed by Recipient without access to or use,
directly or indirectly, of Confidential Information of the Disclosing Party; or

            (e) Such information is required to be disclosed in response to a
valid order from a judicial or administrative authority or in order to file or
prosecute patent applications; provided, however, that Recipient shall: (i)
promptly notify the Disclosing Party of such disclosure requirement, (ii) use
Commercially Reasonable Efforts to limit disclosure to only such authority and
only to the extent required by such order and (iii) make Commercially Reasonable
Efforts to obtain confidential treatment or a protective order for the
disclosure so ordered.

      Notwithstanding the foregoing, this Section 12.3 shall not apply to patent
applications or other patent filings prior to final issuance of a corresponding
patent.

      12.4 NO MISAPPROPRIATION. Each Party represents that the transfer of
Confidential Information, of intellectual property rights and know-how, and of
rights in Product-related documentation by one Party to the other Party pursuant
to this Agreement shall not, to the actual knowledge of the transferring Party,
misappropriate the proprietary or trade secret information of a Third Party.

      12.5 RETURN OF CONFIDENTIAL INFORMATION. Upon the termination or
expiration of this Agreement and the written request of the Disclosing Party,
Recipient shall immediately return to the Disclosing Party or destroy (in
Recipient's sole discretion) all Confidential Information of the Disclosing
Party in whatever form and all copies thereof. Within thirty (30) days after the
date of expiration or termination of this Agreement, the Receiving Party shall
furnish the Disclosing Party with a certificate, duly executed by an officer of
the Receiving Party, confirming that the Receiving Party has complied with its
obligations under this Section 12.5.

                                  ARTICLE 13.
                             TERM AND TERMINATION

      13.1 TERM. The term of this Agreement shall commence on the Effective Date
and shall continue, on a Product-by-Product and country-by-country basis, until
the later to occur of (a) expiration or final rejection without right of appeal
of the last-to-expire Patent that covers such Product in such country; or (b)
*** ("Term"), unless terminated earlier pursuant to Article 13 of this
Agreement.

      13.2 UNILATERAL TERMINATION. Spectrum shall have the unilateral right to
terminate this Agreement, in its entirety or on a Product-by-Product or
country-by-country basis, at any time for any reason upon prior written notice
to Altair given at least sixty (60) days prior to the desired date of
termination.

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      13.3 TERMINATION FOR MATERIAL BREACH. If either Party materially breaches
this Agreement at any time, and fails to cure such breach within one hundred
twenty (120) days of written notice thereof from the non-breaching Party, (which
notice shall describe the breach and shall state the non-breaching Party's
intention to terminate this Agreement if such breach is not cured), the
non-breaching Party shall have the right after such 120-day period, in its
discretion, to terminate this Agreement. Such termination shall be effective
immediately upon the breaching Party's receipt of a notice of termination from
the non-breaching Party, unless the breaching Party can establish that it cured
the breach prior to its receipt of such notice of termination. For purposes of
this Agreement, it is not a "material breach" of this Agreement by Spectrum if
the development of a Product is delayed due to the following: (i) scientific,
medical or technical reasons beyond Spectrum's reasonable control despite its
exercise of Commercially Reasonable Efforts; (ii) an event of Force Majeure; or
(iii) the fault of Altair.

      13.4 TERMINATION FOR INSOLVENCY OR BANKRUPTCY. Each Party, in addition to
any other remedies available to it at law or in equity, may, to the extent
permissible under applicable law, terminate this Agreement by written notice to
the other Party in the event the other Party shall:

            (a) become insolvent or bankrupt, or become unable financially to
conduct business and perform as contemplated by this Agreement;

            (b) make an assignment for the benefit of its creditors pursuant to
a statutory requirement;

            (c) appoint a trustee or receiver for itself for all or a
substantial part of its property;

            (d) have any case or proceeding commenced or other action taken by
or against itself in bankruptcy that is not dismissed within sixty (60) days of
filing;

            (e) seek reorganization, liquidation, dissolution, a winding-up
arrangement, composition or readjustment of its debts or other relief under any
bankruptcy, insolvency, reorganization or other similar act or law of any
jurisdiction, now or hereafter in effect; or

            (f) have issued against itself a warrant of attachment, execution,
distraint or similar process against any substantial part of its property, the
issuance of which causes a material adverse effect.

      13.5 EFFECTS OF TERMINATION

            (a) Rights Upon Expiration. Following the expiration of the Term,
excluding any termination prior to expiration of this Agreement, Spectrum shall
have and retain a perpetual, fully paid-up, non-exclusive license under the
Patents, Know-How, Trade Secrets, and Altair's Improvements, and Altair shall
retain a perpetual, fully paid-up, non-exclusive license to Spectrum's
Improvements. Subject to Altair's rights and

                                       30

<PAGE>

licenses to Spectrum's Improvements, Spectrum shall retain all rights and
interest in all materials, inventions, discoveries and know-how (whether or not
patentable or patented) solely generated by Spectrum in the course of performing
research and development activities under the licenses granted in this
Agreement. Other than rights intended to survive expiration, or as otherwise
provided under Section 13.5(e), neither Party shall have any further rights or
obligations upon the expiration of this Agreement.

            (b) Rights Upon Termination by Altair Under Sections ***, 13.3 or
13.4 or by Spectrum under Section 13.2. Upon any termination of this Agreement
by Altair under Section ***, 13.3 or 13.4 or by Spectrum under Section 13.2
occurring prior to the normal expiration date of this Agreement, (i) all rights
and licenses granted by Altair to Spectrum shall terminate and revert to Altair;
(ii) Altair shall retain a perpetual, fully paid-up, non-exclusive license to
Spectrum's Improvements; (iii) Spectrum shall return to Altair or destroy at
Altair's option all Know-How and Trade Secrets in Spectrum's possession; and
(iv) Spectrum shall promptly (i.e., within three months of such termination or
expiration) transfer and, to the extent possible, assign to Altair or to an
Altair Affiliate or a Third Party designated by Altair, as Altair may direct,
all pre-clinical, clinical and technical data, information, files and other
materials in the possession or under the control of Spectrum relating to
Compound and Product and the development, Regulatory Approval and
commercialization thereof, and, in the case where Altair is not the manufacturer
of API, Spectrum shall also promptly (i.e., within three months of such
termination or expiration) transfer and, to the extent possible, assign to
Altair or to an Altair Affiliate or a Third Party designated by Altair, as
Altair may direct, any technology Spectrum may have which is necessary or useful
to make the Compound or Product. The foregoing provisions shall also apply to
the partial termination of this Agreement by Spectrum on a Product-by-Product or
country-by-country basis in accordance with Section 13.2, provided, however,
that in such event: (1) only those rights specified in (i) and (iv) above that
solely pertain to the Product and/or country being terminated would revert back
to Altair; (2) only that Know-How and Trade Secrets which solely pertain to the
Product and/or country being terminated would be returned to Altair or destroyed
by Spectrum.

            (c) Rights Upon Termination by Spectrum Under Section 13.3. Upon any
termination of this Agreement by Spectrum under Section 13.3 occurring prior to
the normal expiration date of this Agreement, Spectrum shall retain the licenses
granted by Altair to Spectrum hereunder (including the licenses to Altair's
Improvements) for the Term otherwise intended by this Agreement; ***

            (d) Rights Upon Termination by Spectrum Under Section 13.4. Upon any
termination of this Agreement by Spectrum under Section 13.4 occurring prior to
the regularly scheduled expiration date of this Agreement, the licenses granted
by Altair to Spectrum up to such date of termination shall convert to a fully
paid-up, exclusive license and Spectrum's obligations under this Agreement shall
terminate; ***

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            (e) Payments. Not later than ninety (90) days after the expiration
or termination date of this Agreement, each Party shall pay to the other Party
any amounts that are then due and payable.

      13.6 WORK-IN-PROGRESS. Notwithstanding anything in this Agreement to the
contrary, upon any such early termination of the license granted hereunder in
accordance with this Agreement, Spectrum shall be entitled to finish any
work-in-progress and to sell any completed inventory of a Product which remain
on hand as of the date of the termination, so long as Spectrum pays to Altair
the royalties applicable to said subsequent sales in accordance with the terms
and conditions as set forth in this Agreement, provided that no such sales shall
be permitted after the expiration of six (6) months after the date of
termination.

                                  ARTICLE 14.
                                INDEMNIFICATION

      14.1 INDEMNIFICATION BY SPECTRUM. Spectrum shall defend, indemnify and
hold harmless Altair, its Affiliates, its sublicensees and their respective
employees, officers, directors, agents and representatives (the "Altair
Indemnitees") against any and all damages (including for bodily injury, death
and property damage), actions, suits, claims, demands, investigations,
liabilities, penalties and expenses (including reasonable fees and disbursements
of attorneys and consultants) (collectively, a "Loss") arising from or occurring
as a result of a Third-Party's claim, action, suit, judgment or settlement
("Claim") against an Altair Indemnitee to the extent such Loss is based on or
arises out of the (a) clinical testing of Product by Spectrum or its Affiliates;
(b) the manufacture, use, handling labeling, packaging, sale, distribution,
other disposition, importation or exportation of Product, by or on behalf of
Spectrum, its Affiliates, sublicensees or distributors; (c) the administration
of Product to or the use of Product by any individual (including associated
Product liability, including any defect inherent in the Product or the API); (d)
any breach by Spectrum of this Agreement or any of its covenants, agreements,
representations or warranties set forth in this Agreement; or (e) the negligence
or willful misconduct of Spectrum or any Spectrum Indemnitee (as defined in
Section 14.2 below); provided, however, that the foregoing indemnification and
other obligations shall not apply to any Loss to the extent such Loss is caused
by: (i) the failure (undiscoverable by Spectrum in the exercise of ordinary care
applicable to the industry) of any API supplied by Altair to Spectrum pursuant
to this Agreement and any related supply agreement between Altair and Spectrum
to meet the API specifications set forth in such agreement (for the avoidance of
doubt, any Loss resulting from API supplied by Altair in accordance with the API
specifications agreed between Altair and Spectrum shall be subject to Spectrum's
indemnification obligations under this Section 14.1); (ii) a breach by Altair of
this Agreement or any of its covenants, agreements, representations or
warranties set forth in this Agreement; or (iii) the negligence or willful
misconduct of Altair or an Altair Indemnitee.

      14.2 INDEMNIFICATION BY ALTAIR. Altair shall defend, indemnify and hold
harmless Spectrum, its Affiliates, its sublicensees and their respective
employees, officers, directors, agents and representatives (the "Spectrum
Indemnitees") against any

                                       32

<PAGE>

Loss occurring as a result of a Claim against an Spectrum Indemnitee to the
extent such Loss is based on or arises out of (a) the failure (undiscoverable by
Spectrum in the exercise of ordinary care applicable to the industry) of any API
supplied by Altair to Spectrum under this Agreement and any related supply
agreement between Altair and Spectrum to meet the API specifications set forth
in such agreement; (b) a breach by Altair of this Agreement, any of its
covenants, agreements, representations or warranties set forth in this
Agreement; or (c) the negligence or willful misconduct of Altair or any Altair
Indemnitee; provided, however, that the foregoing indemnification and other
obligations shall not apply to any Loss to the extent such Loss is subject to or
within the scope of Spectrum's indemnification and other obligations under
Section 14.1, above.

      14.3 CLAIMS PROCEDURES. A person or entity entitled to be indemnified by
the other Party (an "Indemnified Party") pursuant to Section 14.1 or 14.2 hereof
shall give written notice to the other Party (the "Indemnifying Party") promptly
after such Indemnified Party has actual knowledge of any threatened or asserted
claim as to which indemnity may be sought, and shall permit the Indemnifying
Party to assume the defense of any such claim or any litigation resulting
therefrom; provided that:

            (a) the failure of any Indemnified Party to give notice as provided
herein shall not relieve the Indemnifying Party of its obligations under this
Agreement to the extent that such failure to give notice did not result in
prejudice to the Indemnifying Party or the Indemnifying Party's insurer;

            (b) the Indemnifying Party, in the defense of any such Claim, shall
not, except with the approval of the Indemnified Party (which approval shall not
be unreasonably withheld), consent to entry of any judgment or enter into any
settlement which (i) would result in injunctive or other relief being imposed
against the Indemnified Party; or (ii) does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a
release from all liability in respect to such claim or litigation; and

            (c) the Indemnified Party shall furnish such information regarding
itself or the claim in question as the Indemnifying Party may reasonably request
in writing, and shall be reasonably required in connection with the defense of
such claim or litigation resulting therefrom.

                                  ARTICLE 15.
                              DISPUTE RESOLUTION

      15.1 ESCALATION. Prior to taking action as provided in Section 15.2 of
this Agreement, the Parties shall first submit such dispute to Spectrum's Chief
Executive Officer and to Altair's Chief Executive Officer (the "Heads") for
resolution. The Heads to whom any dispute is submitted shall attempt to resolve
the dispute through good faith negotiations over a reasonable period, not to
exceed forty-five (45) days following one Party's receipt of a notice of dispute
from the other Party, unless otherwise agreed by the Heads. Such forty-five (45)
day period shall be deemed to commence on the date the dispute was submitted to
the Heads. All negotiations pursuant to this Section 15.1 shall

                                       33

<PAGE>

be confidential, and shall be treated as compromise and settlement negotiations
for purposes of applicable rules of evidence.

      15.2 ARBITRATION. Any dispute (except for (a) patent and trademark
disputes described in Section 15.3 and (b) disputes within the decision making
authority of the JDC as set forth in this Agreement) between the Parties that is
not resolved by negotiation and/or escalation pursuant to Sections 15.1 shall,
upon the submission of a written request by either Party to the other Party, be
resolved exclusively by binding arbitration in California, U.S., before one (1)
neutral arbitrator, unless either Party promptly requests a three (3)-person
panel of arbitrators, in which event the three arbitrators shall be used. Any
arbitration proceedings shall be conducted in accordance with the Rules of the
American Arbitration Association, except to the extent that such rules are
inconsistent with this Agreement, and shall be conducted in the English
language. In the event of arbitration by three arbitrators, each Party shall
select a neutral arbitrator, and shall notify the other Party of its selection
of such arbitrator within thirty (30) days after receipt by one Party of the
other Party's written request for binding arbitration. The two arbitrators shall
then mutually select a third neutral arbitrator in accordance with the Rules of
the American Arbitration Association. Each arbitrator shall be free of any
subject matter conflict and conflict with a Party. The arbitrator(s) shall
resolve the dispute in accordance with this Agreement and the substantive laws
(without regard to conflict-of-law and choice-of-law principles thereof, and
excluding the rules of procedure) of the State of California, U.S. The decision
of the arbitrator(s) shall be final and shall be fully and irrevocably accepted
by the Parties. The arbitrator(s) are empowered to award interim and final
injunction and equitable relief but, except as expressly set forth in this
Agreement, the arbitrator(s) are not empowered to award treble, punitive,
exemplary or any other damages in excess of compensatory damages, and each Party
irrevocably waives any claim to recover such damages. The final award of the
arbitrator(s) shall be the sole and exclusive remedy of the Parties, and shall
be enforceable in any court of competent jurisdiction. The Parties agree that
they shall share equally the cost of the arbitration filing and hearing fees,
and the cost of the arbitrator(s). Each Party shall bear its own attorneys' fees
and expert fees and all associated costs and expenses, provided that the
arbitrator(s) may award attorneys' fees to the Party deemed by the arbitrator(s)
to be the Party substantially prevailing in the proceeding.

      15.3 PATENT AND TRADEMARK MATTERS. Notwithstanding the other provisions of
this Article 15, any dispute that requires resolution of the validity,
infringement or claim interpretation of any Patent or Trademark (a) that is
issued in the United States, shall be subject to actions before the U.S. Patent
and Trademark Office and/or submitted exclusively to the federal court located
in the jurisdiction of the district where any of the defendants resides; and (b)
that is issued in any other country, shall be brought before an appropriate
regulatory or administrative body or court in that country, and the Parties
hereby consent to the jurisdiction and venue of such courts and bodies. For the
avoidance of doubt, such Patent and Trademark disputes shall not be subject to
the provisions of Section 15.2.

                                       34

<PAGE>

                                  ARTICLE 16.
                                 MISCELLANEOUS

      16.1 GOVERNING LAW. This Agreement, and any arbitration hereunder, shall
be governed, interpreted and construed in accordance with the substantive laws
of the State of California, U.S., without regard to conflict-of-laws and
choice-of-law principles thereof.

      16.2 ASSIGNMENT. Neither Party may assign this Agreement, in whole or in
part, without the prior written consent of the non-assigning Party, such consent
not to be unreasonably withheld, except, to a successor in interest pursuant to
a merger, acquisition or sale of all or substantially all of the assignor's
assets. Subject to the limitations on assignment herein, this Agreement shall be
binding upon and inure to the benefit of any successors in interest and
permitted assigns of Altair and Spectrum. Any such successor or permitted
assignee of Spectrum's interest shall expressly assume in writing the
performance of all terms and conditions of this Agreement to be performed by
Spectrum.

      16.3 FORCE MAJEURE. Neither Party shall be held liable or responsible to
the other Party, nor be deemed to have defaulted under or breached this
Agreement for failure or delay in fulfilling or performing any term of this
Agreement, when and to the extent such failure or delay is caused by or results
from acts beyond the affected Party's reasonable control, including, without
limitation, fire, floods, earthquakes, embargoes, war, acts of war (whether war
be declared or not), acts of terrorism, insurrections, riots, civil commotions,
strikes, lockouts, acts of God, government acts, or any other cause beyond the
reasonable control of the affected Party (hereinafter a "Force Majeure").
Notwithstanding the foregoing, Altair shall not lose any rights of payment under
Section 3.2(a) and Article 6 which have accrued prior to the Force Majeure.

      16.4 PUBLICITY AND DISCLOSURE. Except as required by law or the rules of
the principal stock exchange on which the Party's stock is traded, no Party
shall originate any public statement, news release or other public announcement
(oral or written), whether in the public press, stockholders' reports, at
investors meetings or meetings with individual investors, or otherwise, relating
to this Agreement or to any sublicense hereunder, or to the performance
hereunder or any such agreements, or use a Party's name for any purpose,
including, without limitation, in connection with the advertising or sale of
Products, without the prior written approval of the other Party, such consent
not to be unreasonably withheld. The Parties each agree to respond to each such
request within five (5) business days of receipt of a request (unless a shorter
period of time is necessary to comply with law). In the case of unintentional
public disclosure concerning this Agreement, any Product or any other subject
matter hereof, the disclosing Party shall promptly inform the other Party of
such disclosure and the other Party shall be entitled to make a public
announcement regarding the subject matter of the disclosure. The other Party
shall notify the disclosing Party of their intention to make such an
announcement. Following a Party's consent to or approval of the public
disclosure of any information pursuant to this Section 16.4, both Parties shall
be entitled to make subsequent public announcements of such information without
renewed compliance with this Section 16.4, unless the scope and/or duration of
such consent or approval is expressly limited. Upon

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<PAGE>

conclusion of this Agreement, the Parties will publish a press release on their
future cooperation.

      16.5 NOTICES. Any communications or notices required or permitted to be
given by either Party under this Agreement shall be in writing, and shall be
either personally delivered or sent by internationally recognized courier (e.g.,
FedEx, DHL), to the addresses set forth below, or to such other addresses as
designated by one Party to the other Party by notice pursuant hereto.

            IF TO SPECTRUM PHARMACEUTICALS, INC.:
            157 Technology Drive
            Irvine, California 92618
            Attn: Rajesh C. Shrotriya, MD
            Telephone: 949.788.6700

      AND

            IF TO ALTAIR NANOMATERIALS, INC.:
            204 Edison Way
            Reno, Nevada 89502
            Attn: Secretary of the Company
            Telephone: 1-775-856-2500

            WITH A COPY TO:

            Heller Ehrman White & McAuliffe LLP
            701 Fifth Avenue
            Seattle, WA 98104
            Attn: Dan Syrdal, Esq.

      16.6 AMENDMENT; WAIVER. No waiver of any term or condition of this
Agreement shall be effective unless made in writing and executed by an
authorized representative of each Party. No failure to act by either Party shall
be deemed to be a waiver of any of such Party's rights herein. Except as
otherwise expressly provided herein, no alteration of or modification to this
Agreement shall be effective unless made in writing and executed by an
authorized representative of each Party.

      16.7 SEVERABILITY. In the event that any provision of this Agreement, or
any part hereof, is held to be void, invalid or unenforceable, then the Parties
shall promptly discuss such issue and replace such void, invalid or
unenforceable provision with a valid and enforceable provision that shall
achieve as far as possible the intentions of the Parties.

      16.8 COMPLIANCE WITH APPLICABLE LAWS. Each Party, its Affiliates and its
sublicensees shall comply in all material respects with all applicable laws,
rules, regulations and governmental orders in connection with their respective
activities and obligations related to this Agreement. Without limiting the
foregoing, each Party, its

                                       36

<PAGE>

Affiliates and its sublicensees shall comply in all material respects with all
applicable United States and foreign laws with respect to the transfer of items
and related technical data to foreign countries, including the Export
Administration Regulations and their foreign equivalents.

      16.9 SURVIVAL. Termination or expiration of this Agreement for any reason
shall be without prejudice to any rights which shall have accrued to the benefit
of either Party prior to such termination or expiration, and shall not relieve
either Party from its obligations which are expressly indicated to survive
expiration or termination of this Agreement. The following Articles and Sections
shall survive termination or expiration of this License Agreement, with such
limitations as are noted: Article 1, to the extent definitions are embodied in
the following listed Articles and Sections of this Agreement; Articles 12
through 16 and, to the extent rights have accrued prior to such termination,
Article 6, Sections 8.2, 8.3, 10.1, 10.2, 10.3 and 10.4 and any other provisions
of this Agreement which, by their context, are intended to survive the
termination or expiration of this Agreement.

      16.10 NO AGENCY; NO IMPLIED LICENSES. Nothing herein shall be deemed to
create an agency, joint venture, amalgamation, partnership, employment,
franchise, fiduciary or similar relationship between Spectrum and Altair.
Spectrum and Altair are not Affiliates of one another. Notwithstanding any of
the provisions of this Agreement, neither Party shall at any time enter into,
incur, or hold itself out to Third Parties as having authority to enter into or
incur, on behalf of the other Party, any commitment, expense, or liability
whatsoever. Nothing in this Agreement shall be construed as granting either
Party, by implication, estoppel or otherwise, any license or other rights which
are not expressly set forth herein.

      16.11 CONSTRUCTION. The Parties mutually acknowledge that they and their
respective attorneys have participated in the negotiation and preparation of
this Agreement. Ambiguities, if any, in this Agreement shall not be construed
against any Party, irrespective of which Party may be deemed to have drafted
this Agreement or authorized the ambiguous provision.

      16.12 CAPTIONS. Titles, headings and other captions are for convenience
only, and are not to be used for interpreting this Agreement. Such titles,
headings and other captions shall not be deemed to affect in any way the
language of the provisions to which they refer.

      16.13 ENTIRE AGREEMENT. This Agreement, including all Schedules attached
hereto, which are hereby incorporated by reference, and that certain
Nondisclosure/nonuse Agreement by and between Altair Nanotechnologies, Inc. and
Spectrum, dated November 3, 2004 (to the extent such Nondisclosure/nonuse
Agreement is not inconsistent to this Agreement) contains the entire
understanding between the Parties hereto with respect to the subject matter
hereof.

      16.14 COUNTERPARTS; FACSIMILES. This Agreement may be executed by original
or facsimile signature in several counterparts, all of which shall be deemed to
be

                                       37

<PAGE>

originals, and all of which, taken together, shall constitute one and the same
Agreement. Notwithstanding the foregoing, the Parties shall deliver original
execution copies of this Agreement to one another as soon as practicable
following execution thereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       38

<PAGE>

      IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives, effective as of the day and
year first above written.

SPECTRUM PHARMACEUTICALS, INC.                    ALTAIR NANOMATERIALS, INC.

____________________________________________      ______________________________
Signature                                         Signature
By: Rajesh Shrotriya, M.D.                        By:  Alan Gotcher, Ph.D.
Title: Chief Executive Officer and President      Title: Chief Executive Officer

                                                  ALTAIR NANOTECHNOLOGIES, INC.
                                                  (only with respect to Sections
                                                   6.1, 10.2, and 10.3)

                                                  ______________________________
                                                  Signature
                                                  By: Alan Gotcher, Ph.D.
                                                  Title: Chief Executive Officer

                                       39

<PAGE>

                                  SCHEDULE 1.31

                             PATENTS AND TRADEMARKS

***

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