-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T0iqulcnTo2s74lWlqkAQ9BRX54geJ2jfXYeO9DoB/ognURD5wFppuekwEP1ZHxL jSyD5vy8Dpp4gQZ2GyBvaw== 0000950103-10-002813.txt : 20100930 0000950103-10-002813.hdr.sgml : 20100930 20100930085004 ACCESSION NUMBER: 0000950103-10-002813 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20100930 DATE AS OF CHANGE: 20100930 GROUP MEMBERS: YINCANG WEI SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ALTAIR NANOTECHNOLOGIES INC CENTRAL INDEX KEY: 0001016546 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS CHEMICAL PRODUCTS [2890] IRS NUMBER: 870372759 STATE OF INCORPORATION: A6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-50361 FILM NUMBER: 101097894 BUSINESS ADDRESS: STREET 1: 204 EDISON WAY STREET 2: N/A CITY: RENO STATE: NV ZIP: 89502 BUSINESS PHONE: (775) 858-3744 MAIL ADDRESS: STREET 1: 204 EDISON WAY STREET 2: N/A CITY: RENO STATE: NV ZIP: 89502 FORMER COMPANY: FORMER CONFORMED NAME: ALTAIR INTERNATIONAL INC DATE OF NAME CHANGE: 19970529 FORMER COMPANY: FORMER CONFORMED NAME: ALTAIR INTERNATIONAL GOLD INC DATE OF NAME CHANGE: 19960611 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Canon Investment Holdings Ltd. CENTRAL INDEX KEY: 0001500686 IRS NUMBER: 000000000 STATE OF INCORPORATION: K3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: VILLA 1, HUAJING GARDEN STREET 2: JIDA, ZHUHAI CITY: GUANGDONG STATE: F4 ZIP: - BUSINESS PHONE: 86-756-3250381 MAIL ADDRESS: STREET 1: VILLA 1, HUAJING GARDEN STREET 2: JIDA, ZHUHAI CITY: GUANGDONG STATE: F4 ZIP: - SC 13D 1 dp19320_13d.htm FORM SC 13D
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No.      )*
 
 
Altair Nanotechnologies, Inc.
(Name of Issuer)
 
 
Common Stock, no par value
(Title of Class of Securities)
 
 
021373105
(CUSIP Number)
 
 
Mr. Guohua Sun
Villa 1, Huajing Garden
Jida, Zhuhai
Guangdong, China
+86 756-3250896
 
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
 
 
September 20, 2010
(Date of Event which Requires Filing of this Statement)
 
 
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-l(f) or 240.13d-l(g), check the following box.  o
 
*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
 
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
 
 
 
 
 

 
 
 
 CUSIP No. 
021373105 
 
1.
Names of Reporting Persons.

Canon Investment Holdings Limited
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
 
(a)
o
 
(b)
o
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
 
OO
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)                                                                                                                                 0;                                                                          o
 
6.
Citizenship or Place of Organization

Hong Kong
NUMBER OF SHARES
BENEFICIALLY OWNED BY
EACH REPORTING PERSON
WITH
7.
Sole Voting Power
0
8.
Shared Voting Power
22,637,602(1)
9.
Sole Dispositive Power
0
10.
Shared Dispositive Power
0
11.
Aggregate Amount Beneficially Owned by Each Reporting Person

22,637,602(1)
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
 
 
o
13.
Percent of Class Represented by Amount in Row (11)

20.7%(2)
 
14.
Type of Reporting Person (See Instructions)

CO
 
 
 
 
 
2

 
 
 

(1)
Pursuant to the Voting Agreements described below, the Buyer (as defined below) and its 100% owner, Mr. Yincang Wei, may be deemed to have beneficial ownership of 22,637,602 Shares (as defined below).  The Voting Agreement Shares (as defined below) also include an additional 1,983,750 Shares (as defined below) underlying stock options that are not exercisable within 60 days of September 20, 2010, i.e., the date of the Voting Agreements described below. Neither the filing of this statement on Schedule 13D nor any of its contents shall be deemed to constitute an admission by the Reporting Persons (as defined below) that it or he is the beneficial owner of any of the common stock referred to herein for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, or for any other purpose, and such beneficial ownershi p is expressly disclaimed.
 
(2)
Based on 108,062,315 shares of common stock outstanding of the Issuer as of September 20, 2010, as reported by Altair Nanotechnologies, Inc. in the Share Subscription Agreement described in Item 4 hereof.  The aggregate number of Voting Agreement Shares (as described below) (including the additional 1,983,750 Shares underlying stock options that are not exercisable within 60 days of September 20, 2010) constitute 22.1% of the issued and outstanding Shares (as defined below) of the Issuer (as defined below) as of September 20, 2010 (based on the 108,062,315 Shares issued and outstanding of the Issuer as of September 20, 2010 as reported by the Issuer in the Share Subscription Agreement described in Item 4 hereof).  
 
 
 
3

 
 
 CUSIP No. 
021373105 
 
1.
Names of Reporting Persons.

Yincang Wei
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
 
(a)
o
 
(b)
o
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
 
OO
5.
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)                                                                                                                                 0;                                                                          o
6.
Citizenship or Place of Organization

People’s Republic of China
NUMBER OF SHARES
BENEFICIALLY OWNED BY
EACH REPORTING PERSON
WITH
7.
Sole Voting Power
0
8.
Shared Voting Power
22,637,602(1)
9.
Sole Dispositive Power
0
10.
Shared Dispositive Power
0
11.
Aggregate Amount Beneficially Owned by Each Reporting Person

22,637,602(1)
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
 
 
o
13.
Percent of Class Represented by Amount in Row (11)

20.7%(2)
 
14.
Type of Reporting Person (See Instructions)

IN
 
 
 
 
4

 
 
 

(1)
Pursuant to the Voting Agreements described below, the Buyer (as defined below) and its 100% owner, Mr. Yincang Wei, may be deemed to have beneficial ownership of 22,637,602 Shares (as defined below). The Voting Agreement Shares (as defined below) also include an additional 1,983,750 Shares (as defined below) underlying stock options that are not exercisable within 60 days of September 20, 2010, i.e., the date of the Voting Agreements described below. Neither the filing of this statement  on Schedule 13D nor any of its contents shall be deemed to constitute an admission by the Reporting Persons (as defined below) that it or he is the beneficial owner of any of the common stock of the Issuer referred to herein for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, or for any other purpose, and such benef icial ownership is expressly disclaimed.
 
(2)
Based on 108,062,315 shares of common stock outstanding of the Issuer as of September 20, 2010, as reported by Altair Nanotechnologies, Inc. in the Share Subscription Agreement described in Item 4 hereof.  The aggregate number of Voting Agreement Shares (as described below) (including the additional 1,983,750 Shares underlying stock options that are not exercisable within 60 days of September 20, 2010) constitute 22.1% of the issued and outstanding Shares (as defined below) of the Issuer (as defined below) as of September 20, 2010 (based on the 108,062,315 Shares issued and outstanding of the Issuer as of September 20, 2010 as reported by the Issuer in the Share Subscription Agreement described in Item 4 hereof).  
 
 
 
5

 

Item 1.  Security and Issuer
 
The class of equity securities to which this statement relates is the common stock, no par value (the “Shares”), of Altair Nanotechnologies, Inc., a corporation incorporated under the laws of Canada (the “Issuer”).  The principal executive offices of the Issuer are located at 204 Edison Way, Reno, Nevada 89502.
 
Item 2.  Identity and Background
 
The names of the persons filing this statement are Canon Investment Holdings Limited, a Hong Kong corporation (the “Buyer”) and Mr. Yincang Wei, the Executive Director and sole stockholder of the Buyer (the Buyer and Mr. Yincang Wei together, the “Reporting Persons”). 
 
The address of the principal office of Buyer is Villa 1, Huajing Garden, Jida, Zhuhai, Guangdong, China. The name, business address, title, present principal occupation or employment of each of the directors and executive officers of the Buyer, which includes Mr. Yincang Wei, is set forth on Schedule A.
 
The Buyer, through its indirect, wholly-owned subsidiary in China, Zhuhai Yintong Energy Co., Ltd. (“YTE”), is engaged in the manufacturing and sale of high-capacity and high-power Li-ion power batteries, energy-storage batters as well as batteries for general uses. YTE’s battery products have wide application in different areas, including lighting equipments, medical facilities, power tools, electric bicycles, electric vehicles, smart grid, domestic energy-storage, and peak-load regulation.
 
During the last five years, none of the Reporting Persons, nor to the best of the Reporting Persons’ knowledge, any of the other persons listed on Schedule A attached hereto, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject, to federal or state securities laws or finding any violation with respect to such laws. 
 
Item 3.  Source and Amount of Funds or Other Consideration
 
As described in response to Item 4, the Voting Agreement Shares (as defined below) to which this statement relates have not been purchased by the Buyer, and thus no funds were used for such purpose.  As an inducement for the Buyer to enter into the Share Subscription Agreement and the other agreements described in Item 4, (i) Al Yousuf LLC (“Al Yousuf”), and (ii) Terry M. Copeland, John C. Fallini, Bruce J. Sabacky, Stephen A. Balogh, Daniel Voelker, C. Robert Pedraza, Tom Keiffer, Jon N. Bengston, George E. Hartman, Pierre Lortie, Robert G. van Schoonenberg, Hossein Asrar Haghighi and Alexander Lee (each, a “Issuer Director and/or Officer” and together, the “Issuer Directors and/or Officers”) ((i) and (ii) collectively the “Relevant Issuer Stockholders”) entered into voting agreements each dated as of September 20, 2010 (each, a “Voting Agreement” and together, the “Voting Agreements”) with the Buyer with respect to the Voting Agreement Shares (as defined below).  The Buyer did not pay additional consideration to the Relevant Issuer Stockholders in connection with the execution and delivery of the respective Voting Agreements.  For a description of the Voting Agreements, see Item 4 below, which description is incorporated herein by reference in response to this Item 3.

Item 4.  Purpose of Transaction 
 
As an inducement for the Buyer to enter into the Share Subscription Agreement (as defined below) and the related agreements described below, the Relevant Issuer Stockholders entered into the Voting Agreements.  The purpose of the Voting Agreements is to facilitate the transactions contemplated by the Share Subscription Agreement and the related agreements described below.
 
 
 
6

 
 
 
Share Subscription Agreement
 
On September 20, 2010, the Buyer and the Issuer entered into a share subscription agreement (the “Share Subscription Agreement”).  Pursuant to the terms and subject to the conditions set forth in the Share Subscription Agreement, the Buyer has agreed to acquire such number of Shares of the Issuer that will constitute 51.0% of the outstanding Shares of the Issuer on a fully diluted basis immediately after the closing under the Share Subscription Agreement (the “Transaction”).  The number of the Shares to be acquired in the Transaction is estimated to be 125,917,996 Shares.  The purchase p rice for the Shares is fixed at U.S. $0.3882 per share, and the total gross proceeds from the offering are estimated at U.S. $48.9 million.  The Issuer has agreed to use the proceeds, in part, to construct a nano lithium titanate oxide (“nLTO”) materials production facility in China that is expected to have an initial annual production capacity of up to 2,000 to 3,000 tons of nLTO materials, and to fund the Issuer’s working capital needs and ongoing operations in the United States.  

The Share Subscription Agreement provides that, effective as of the closing of the Transaction, the board of directors shall consist of 9 directors, 5 of whom shall be designated by the Buyer, 3 of whom shall be independent directors (including one designee by Al Yousuf), and 1 of whom shall be an executive of the Issuer.

Under the Share Subscription Agreement, the Buyer and the Issuer agree to consult with each other as to the appropriate time to effect proposed consolidation of the Shares approved by the stockholders of the Issuer on May 24, 2010, which consolidation is expected to take place around mid-November and will in any event take place prior to the closing of the Transaction and at least 10 business days prior to December 20, 2010.  The ratio of pre-consolidation Shares to post-consolidation Shares shall not be greater than 4:1 without the prior written consent of the Buyer.

The closing of the Transaction is subject to a number of closing conditions, including, without limitation, the receipt of required stockholder approval, no applicable law prohibiting the consummation of the Transaction, the truth and accuracy of representations and warranties made by the parties at closing and the performance of all material obligations by the parties prior to the closing, no material adverse effect on the Issuer and its subsidiaries having occurred, the completion by the government of the United States of its national security review, the Issuer and its subsidiaries having taken all actions necessary to ensure that the closing is permitted by International Traffic In Arms Regulations, receipt of legal opinions, and other closing conditions specified in the Share Subscription Agreement.

The foregoing description of the Share Subscription Agreement is a summary only and is qualified in its entirety by the Share Subscription Agreement, a copy of which is attached as Exhibit 4 to this statement.  The Share Subscription Agreement contains representations and warranties and other statements that are solely for the benefit of the parties to the Share Subscription Agreement and are designed to allocate business and other risks among the parties.  Additionally, these representations and warranties and other statements in the Share Subscription Agreement: (i) speak only as to the specified dates on which they were made, and may be modified or qualified by confidential disclosure schedules, (ii) have been negotiated with the principal purpose of establishing the circumstances in which a party may have the right not to close the transaction if the representations and warranties of the other party prove to be untrue due to a change in circumstance or otherwise, and (iii) may be subject to a different materiality standard than the standard that is applicable to disclosures to investors.  Moreover, information concerning the subject matter of the representations and warranties and other statements made in the Share Subscription Agreement may have changed since the date of the Share Subscription Agreement, and will likely change in the future.  
 
 
 
7

 
 
 
Other Agreements

Concurrent with the execution and delivery of the Share Subscription Agreement, the Buyer and the Issuer entered into an Investor Rights Agreement, pursuant to which, among other things, effective as of the closing of the Transaction, the Buyer will have rights to proportional representation on the Issuer’s board of directors and an option to purchase common shares of the Issuer at market price in an amount sufficient to maintain proportionate ownership in connection with future dilutive issuances.

Additionally, concurrent with the execution and delivery of the Share Subscription Agreement, the Buyer, the Issuer and Al Yousuf entered into a Waiver and Rights Agreement, pursuant to which, among other things, the parties agreed that effective as of the closing of the Transaction, Al Yousuf will have the right to appoint one director as long as its common share ownership remains above 5% on a fully diluted basis.  Under the Waiver and Rights Agreement, the parties also agree at the next annual stockholder meeting of the Issuer following the closing of the Transaction (or if the board of directors of the Issuer decided to call a special stockholder meeting, at such stockholder meeting), the Issuer will propose to amend its articles to inc rease the size of the board of directors to no less than 11 directors and nominate two new directors to the board of directors (one of whom shall be designated by the Buyer and the other director shall be an independent director nominated by the board of directors pursuant to the Issuer’s then existing director nomination practice), and the Buyer and Al Yousuf agree to vote their Shares in favor of such proposal and the election of the two new directors.  

The foregoing descriptions of the Investor Rights Agreement and the Waiver and Rights Agreement are summaries only and are qualified in their entirety by copies of such agreements attached as Exhibits 5 and 6 to this statement.

Voting Agreements
 
Concurrent with the execution and delivery of the Share Subscription Agreement, the Relevant Issuer Stockholders entered into Voting Agreements with the Buyer.  The aggregate number of Shares covered by the Voting Agreements (the “Voting Agreement Shares”) are 24,621,352 Shares, which include 3,253,221 Shares underlying stock options (of which 1,269,471 Shares relate to stock options that are exercisable within 60 days of September 20, 2010).
 
Pursuant to the Voting Agreements, the Relevant Issuer Stockholders have agreed to vote or exercise their right to consent with respect to all Shares that each such Relevant Issuer Stockholder is entitled to vote at the time of any vote to approve the issuance of Shares to the Buyer pursuant to the Share Subscription Agreement at any meeting of the stockholders of the Issuer, at which such issuance of Shares or any related agreements or actions are submitted for the consideration and vote of the stockholders of the Issuer.
 
Under the terms of the Voting Agreements, the Relevant Issuer Stockholders have granted the Buyer an irrevocable proxy with respect to the Voting Agreement Shares. The irrevocable proxy allows the Buyer to vote the Voting Agreement Shares in the manner set forth above.
 
Relevant Issuer Stockholders have also agreed that they will not vote any Shares in favor of, or consent to, and will vote against and not consent to, the approval of any (i) Acquisition Proposal (as defined in the Share Subscription Agreement), (ii) reorganization, recapitalization, liquidation or winding-up of the Issuer or any other extraordinary transaction involving the Issuer, (iii) corporate action the consummation of which would frustrate the purposes, or prevent or delay the consummation, of the transactions contemplated by the Share Subscription Agreement, or (iv) other matters relating to, or in connection with, any of the foregoing matters.
 
 
 
8

 
 
 
In the Voting Agreements, the Relevant Issuer Stockholders have agreed not, without the prior written consent of the Buyer, to directly or indirectly (i) grant any proxy or power of attorney or enter into any voting trust or other agreement or arrangement with respect to the voting of any Shares or (ii) acquire, sell, assign, transfer, pledge, encumber or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the direct or indirect acquisition or sale, assignment, transfer, pledge, encumbrance or other disposition of, any Shares during the terms of the Voting Agreements (except with respect to acquisition of Shares pursuant to exercise of outstanding stock options).  In addition, the Relevant Issuer Stockholders have agreed not to seek or solicit any such acquisition or sa le, assignment, transfer, pledge, encumbrance or other disposition or any such contract, option or other arrangement or understanding and agrees to notify the Buyer promptly, and to provide all details requested by the Buyer, if such Relevant Issuer Stockholder is approached or solicited, directly or indirectly, by any person with respect to any of the foregoing.
 
The Voting Agreement of the Buyer with the Issuer Directors and Officers will terminate upon the (a) earlier of the (i) termination of the Share Subscription Agreement in accordance with its terms, or (ii) the closing under the Share Subscription Agreement, or (b) at any time upon written notice by Buyer to the Relevant Issuer Stockholder.  The Voting Agreement of the Buyer with Al Yousuf also contains these termination provisions and an additional termination right by Al Yousuf if the closing under the Share Subscription Agreement does not occur by January 31, 2011.
 
The foregoing description of the Voting Agreements is qualified in its entirety by reference to the full text of such agreements, filed as Exhibits 2 and 3 to this statement.
 
Except as set forth in this statement, the Share Subscription Agreement, the Investor Rights Agreement, Waiver and Rights Agreement and the Voting Agreements, neither the Reporting Persons nor to Reporting Persons’ knowledge, any person named on Schedule A has any present plans which relate to or would result in any of the actions specified in clauses (a) through (j) of Item 4 of Schedule 13D.
 
Item 5.  Interest in Securities of the Issuer
 
(a)      Pursuant to the Voting Agreements, the Buyer and Mr. Yincang Wei (as the 100% owner of Buyer) may be deemed to have beneficial ownership of 22,637,602 Shares of the Issuer, which includes Shares underlying stock options held by the Relevant Issuer Stockholders that are exercisable within 60 days of September 20, 2010. Such Shares constitute 20.7% of the issued and outstanding Shares of the Issuer as of September 20, 2010 (based on the 108,062,315 Shares issued and outstanding of the Issuer as of September 20, 2010 as reported by the Issuer in the Share Subscription Agreement).  In addition, the Voting Agreement Shares also include an additional 1,983,750 Shares underlying stock options that are not exercisable within 60 days of September 20, 2010, and the Buyer may be deemed to have benefi cial ownership of such stock options when they become exercisable by virtue of the Voting Agreements.  The aggregate number of Voting Agreement Shares (including the additional 1,983,750 Shares underlying stock options that are not exercisable within 60 days of September 20, 2010) constitute 22.1% of the issued and outstanding Shares of the Issuer as of September 20, 2010 (based on the 108,062,315 Shares issued and outstanding of the Issuer as of September 20, 2010 as reported by the Issuer in the Share Subscription Agreement).  Neither the filing of this statement nor any of its contents shall be deemed to constitute an admission by the Reporting Persons that it or he is the beneficial owner of any of the Shares referenced herein for purposes of the Exchange Act, or for any other purpose, and such beneficial ownership is expressly disclaimed.  Other than as provided in this statement, to the Reporting Persons’ knowledge, no Shares are beneficially owned by any of the pers ons listed on Schedule A.
 
(b)     Pursuant to the Voting Agreements, the Reporting Persons may be deemed to have shared power to vote or direct the voting of the Shares described in clause (a) above with the Relevant Issuer Stockholders.
 
The information required by Item 2 relating to the Relevant Issuer Stockholders is, to the best of the Reporting Persons’ knowledge, set forth in Schedule B.  The Reporting Persons make no representation or warranty with respect to the accuracy or completeness of such information.
 
 
 
9

 
 
 
 (c)     Except for the Share Subscription Agreement, the Investor Rights Agreement, the Waiver and Rights Agreement, the Voting Agreements, and the transactions contemplated by such agreements, none of the Reporting Persons, nor to the best of the Reporting Persons’ knowledge, any of the other persons listed on Schedule A attached hereto, has effected any transaction in the Shares during the past 60 days.
 
(d)      Except for the Share Subscription Agreement, the Investor Rights Agreement, the Waiver and Rights Agreement, the Voting Agreements, and the transactions contemplated by such agreements, none of the Reporting Persons, nor to the best of the Reporting Persons’ knowledge, any of the other persons listed on Schedule A attached hereto, has the right to receive or power to direct the receipt of dividends from, or proceeds from the sale of, the Shares.
 
(e)      Not applicable.
 
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer
 
Except as described in Items 3, 4 and 5 above and in the agreements incorporated herein by reference and set forth as exhibits hereto there are no contracts, arrangements, understandings or relationships (legal or otherwise) among the persons named in Item 2, between any of the persons named in Item 2 and any person with respect to the securities of the Issuer, including, without limitation, the transfer or voting of any of the securities, finders fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or losses, or the giving or withholding of proxies or any pledge or contingency, the occurrence of which would give another person voting or investment power over the securities of the Issuer, other than pursuant to professional advisory engagements between the Buyer and its professional advisors in connection with the Transaction.
 
 
 
10

 
 
 
Item 7.  Material to be Filed as Exhibits
 
Exhibit 1: Joint Filing Agreement dated as of September 29, 2010 between the Reporting Persons.
 
Exhibit 2: Voting Agreement dated as of September 20, 2010 between the Buyer and Al Yousuf.
 
Exhibit 3: Voting Agreement dated as of September 20, 2010 between the Buyer and the following directors and/or officers of the Issuer: Terry M. Copeland, John C. Fallini, Bruce J. Sabacky, Stephen A. Balogh, Daniel Voelker, C. Robert Pedraza, Tom Keiffer, Jon N. Bengston, George E. Hartman, Pierre Lortie, Robert G. van Schoonenberg, Hossein Asrar Haghighi and Alexander Lee.
 
Exhibit 4: Share Subscription Agreement dated as of September 20, 2010 between the Issuer and the Buyer (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by the Issuer with the Securities and Exchange Commission on September 20, 2010).
 
Exhibit 5: Investor Rights Agreement dated as of September 20, 2010 between the Issuer and the Buyer (incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed by the Issuer with the Securities and Exchange Commission on September 20, 2010).
 
Exhibit 6: Waiver and Rights Agreement dated as of September 20, 2010 among the Issuer, Al Yousuf and the Buyer (incorporated by reference to Exhibit 10.5 of the Current Report on Form 8-K filed by the Issuer with the Securities and Exchange Commission on September 20, 2010).
 
 
11

 
 
SIGNATURE
 
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

 
Canon Investment Holdings Limited
 
     
     
 
           By:   /s/ Yincang Wei
 
 
Name:  Yincang Wei
 
 
Title:    Executive Director
 
 
Date:    September 30, 2010
 


 
Yincang Wei
 
     
 
           By:  /s/ Yincang Wei
 
 
Date:   September 30, 2010
 
 
 
 
12

 
 
SCHEDULE A
 
 
DIRECTORS AND EXECUTIVE OFFICERS OF BUYER
 
The name, business address, title, present principal occupation or employment of each of the directors and executive officers of the Buyer are set forth below.  If no business address is given, the director’s or officer’s business address is the Buyer’s address.  Unless otherwise indicated, each occupation set forth opposite an individual’s name refers to a position with the Buyer.  Both persons listed below are citizens of the People’s Republic of China.
 
Name and Business Address
Present Principal Occupation
Directors and Executive Officers
 
Mr. Yincang Wei
Executive Director
Mr. Guohua Sun
General Manager
 
 
 
13

 
 
 
SCHEDULE B
 
 
CERTAIN INFORMATION REGARDING THE RELEVANT ISSUER STOCKHOLDERS
 
The information set forth on this Schedule B relating to the Relevant Issuer Stockholders is based on information filed with the Securities and Exchange Commission under the Exchange Act and/or information made available to the Buyer.  While the Buyer has no reason to believe that such information was not reliable as of its date, the Buyer makes no representation or warranty with respect to the accuracy or completeness of such information.  If no business address is given the individual’s business address is 204 Edison Way, Reno, Nevada 89502.  Unless otherwise indicated, each occupation set forth opposite an individual’s name refers to the Issuer.
 
Name and Business Address
 
Present Principal Occupation Including Name and
Address1 of Employer
Issuer Directors and/or Officers
Terry M. Copeland
Chief Executive Officer and Director
 
John Fallini
Chief Financial Officer and Secretary
 
Tom Kieffer
Vice President, Marketing and Sales
 
C. Robert Pedraza
Vice President Corporate Strategy
 
Bruce J. Sabacky
Vice President and Chief Technology Officer
 
Stephen A. Balogh
Vice President, Human Resources
 
Daniel Volker
Vice President, Power and Energy Systems
 
Pierre Lortie
 
Address: 1, Place Ville-Marle, 39th Floor Montreal, Quebec H3B 4M7, Canada
Senior Business Advisor to Fraser Milner Casgrain LLP
 
Address of employer: 1, Place Ville-Marle, 39th Floor Montreal, Quebec H3B 4M7, Canada
 
Jon N. Bengston
 
Address: 2690-A Riggins Court Reno, NV 89509, United States
Founder and director for Pinyon Technology
 
Address of employer: 2690-A Riggins Court Reno, NV 89509, United States
 
Hossein Asrar Haghighi
 
Address: Sheikh Zayed Rd., P.O. Box 25, Dubai, United Arab Emirates
Chief Financial Officer of Al Yousuf Group
 
Address of employer: Sheikh Zayed Rd., P.O. Box 25, Dubai, United Arab Emirates
 
George Hartman
 
 
Address: #105 - 1177 Yonge Street Toronto, Ontario Canada  M4T 2Y4, Canada
Chief Executive Officer and President of Market Logics Inc. and Executive Vice President of The Covenant Group
 
Address of employer: #105 - 1177 Yonge Street Toronto, Ontario Canada  M4T 2Y4, Canada
 
Alexander Lee
 
Address: Sheikh Zayed Rd., P.O. Box 25, Dubai, United Arab Emirates
Managing Director of Al Yousuf, LLC
 
Address of employer: Sheikh Zayed Rd., P.O. Box 25, Dubai, United Arab Emirates
 
 
 
 
14

 
 
 
Robert G. van Schoonenberg
 
Address: PO. Box 725 Newport Beach, CA 92661-0725, United States
Chairman and Chief Executive Officer of BayPoint Capital Partners LLC
 
Address of employer: PO. Box 725 Newport Beach, CA 92661-0725, United States
 
Al Yousuf
 
Name, State of Incorporation and Business Address
 
Principal Business
Al Yousuf LLC
 
A limited liability company formed under the laws of the United Arab Emirates
 
Address: Sheikh Zayed Rd., P.O. Box 25, Dubai, United Arab Emirates
 
Al Yousuf’s principal business is general retail/wholesale trading in automobiles, bikes, marine and allied products, electronics and home appliances and commodities. Al Yousuf also wholly owns companies working in real estate, construction, building maintenance, property management, computers, automobiles, transportation and the manufacture of fishing and pleasure boats and manufacturing membrane. Further, Al Yousuf is a registered tender participant for supply of material and execution of turnkey projects.

To the best of the Buyer’s knowledge, none of the Relevant Issuer Stockholders has during the last five years (i) been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), or (ii) been a party to any civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.  To the best of the Buyer’s knowledge, each Issuer Director and/or Officer listed above is a citizen of the United States, except Mr. Pierre Lortie and Mr. George Hartman, who are both citizens of Canada and Mr. Hossein Asrar Haghighi, who is a citizen o f Canada and Iran.

 
___________________
1  Same address as the individual’s business address unless otherwise indicated.
 
 
15

 
EX-99.1 2 dp19320_ex-01.htm EXHIBIT-99.1
 
 
EXHIBIT 1
 
JOINT FILING AGREEMENT

In accordance with Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended, the undersigned hereby agree to (i) the joint filing on behalf of each of them of a statement on Schedule 13D (including amendments thereto) with respect to the common stock of Altair Nanotechnologies, Inc. and (ii) that this Joint Filing Agreement be included as an exhibit to such joint filing, provided that, as contemplated by Section 13d-1(k)(ii), no person shall be responsible for the completeness and accuracy of the information concerning the other person making the filing unless such person knows or has reason to believe such information is inaccurate.

This Joint Filing Agreement may be executed in any number of counterparts all of which together shall constitute one and the same instrument.


IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of this 30th day of September, 2010.


 
Canon Investment Holdings Limited
 
     
     
 
           By:  /s/ Yincang Wei
 
 
Name:   Yincang Wei
 
 
Title:     Executive Director
 
 
Date:     September 30, 2010
 


 
Yincang Wei
 
     
     
 
           By: /s/ Yincang Wei
 
 
Date:   September 30, 2010
 

 




EX-99.2 3 dp19320_ex-02.htm EXHIBIT-99.2
EXHIBIT 2
 

 
VOTING AGREEMENT
 
AGREEMENT, dated as of September 20, 2010 between Canon Investment Holdings Limited, a company organized under the laws of Hong Kong (“Buyer”), and Al Yousuf LLC, a company organized under the laws of United Arab Emirates (“Shareholder”).
 
WHEREAS, as of the date of this Agreement, Shareholder owns 20,395,863 shares of common stock without par value, of the Company (“Common Stock”) (together with any shares of Common Stock that such Shareholder acquires after the date hereof, including upon exercise or conversion of any options, warrants, rights or other securities convertible into or exercisable for shares of Common Stock, the “Shares”);
 
WHEREAS, concurrently with the execution and delivery of this Agreement, Buyer and Altair Nanotechnologies, Inc., a company organized under the laws of Canada (the “Company”) are entering into a Share Subscription Agreement (the “Share Subscription Agreement”) dated of even date herewith for the sale and issuance by the Company, and the subscription by Buyer, of certain shares of Common Stock;
 
WHEREAS, as an inducement to Buyer entering into the Share Subscription Agreement and incurring the obligations thereunder, Buyer has requested that Shareholder, and Shareholder has agreed to, enter into this Agreement;
 
NOW, THEREFORE, the parties hereto agree as follows:
 
ARTICLE 1
Grant of Proxy; Voting Agreement
 
Section 1.01 .  Voting Agreement.  Shareholder hereby agrees to vote or exercise its right to consent with respect to all Shares that Shareholder is entitled to vote at the time of any vote to approve the Common Stock Issuance to the Buyer at any meeting of the shareholders of the Company, and at any adjournment thereof, at which the Common Stock Issuance or any related agreements (or any amended version thereof) or actions are submitted for the consideration and vote of the shareholders of the Company to give effect to the Common Stock Issuance and such other related agreements or actions.  Shareholder hereby agrees that it wil l not vote any Shares in favor of, or consent to, and will vote against and not consent to, the approval of any (i) Acquisition
 
 
 

 
 
Proposal, (ii) reorganization, recapitalization, liquidation or winding-up of the Company or any other extraordinary transaction involving the Company, (iii) corporate actions the consummation of which would frustrate the purposes, or prevent or delay the consummation, of the transactions contemplated by the Share Subscription Agreement or (iv) other matter relating to, or in connection with, any of the foregoing matters.
 
Section 1.02 .  Irrevocable Proxy.  Shareholder hereby revokes any and all previous proxies granted with respect to the Shares.  By entering into this Agreement, Shareholder hereby grants a proxy appointing Buyer as Shareholder’s attorney-in-fact and proxy, with full power of substitution, for and in Shareholder’s name, to vote, express consent or dissent, or otherwise to utilize such voting power in the manner contemplated by Section 1.01 above as Buyer or its proxy or substitute shall, in Buyer’s sole discretion, deem proper with respect to th e Shares.  The proxy granted by Shareholder pursuant to this Article 1 is irrevocable and is granted in consideration of Buyer entering into this Agreement and the Share Subscription Agreement and incurring certain related fees and expenses.  The proxy granted by Shareholder shall be revoked immediately upon termination of this Agreement in accordance with its terms.
 
ARTICLE 2
Representations and Warranties of Shareholder
 
Shareholder represents and warrants to Buyer that:
 
Section 2.01 .  Corporation Authorization.  The execution, delivery and performance by Shareholder of this Agreement and the consummation by Shareholder of the transactions contemplated hereby are within the corporate powers of Shareholder and have been duly authorized by all necessary corporate action.  This Agreement constitutes a valid and binding Agreement of Shareholder, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar legal requirements affecting creditors' rights generally.
 
Section 2.02 .  Non-Contravention.  The execution, delivery and performance by Shareholder of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) violate the articles or bylaws or comparable organizational documents of Shareholder, (ii) violate any Applicable Law, (iii) require any consent or other action by any Person under any provision of any agreement or other instrument binding on Shareholder, or (iv) result in the imposition of any Lien on the Shares.
 
Section 2.03 .  Ownership of Shares.  Shareholder is the record and beneficial owner of the Shares, free and clear of any Lien and any other limitation or restriction (including any restriction on the right to vote the Shares).  None of
 
 
2

 
 
the Shares is subject to any voting trust or other agreement or arrangement with respect to the voting of such Shares or the disposition of such Shares.
 
Section 2.04 .  Total Shares.  Except for the Shares set forth on the signature page hereto, Shareholder does not beneficially own as of the date of this Agreement any (i) shares of capital stock or voting securities of the Company (including securities entitling Shareholder to vote at the Company Shareholder Meeting), (ii) securities of the Company convertible into or exchangeable for shares of capital stock or voting securities of the Company (including securities entitling Shareholder to vote at the Company Shareholder Meeting), or (iii) options or other rights to acquire from the Company any shares of capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of the Company (including any securities entitling Shareholder to vote at the Company Shareholder Meeting).
 
Section 2.05 .  Finder’s Fees.  No investment banker, broker, finder or other intermediary is entitled to a fee or commission from Buyer or the Company in respect of this Agreement based upon any arrangement or agreement made by or on behalf of Shareholder.
 
ARTICLE 3
Representations and Warranties of Buyer
 
Buyer represents and warrants to Shareholder that:
 
Section 3.01 .  Corporation Authorization.  The execution, delivery and performance by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated hereby are within the corporate powers of Buyer and have been duly authorized by all necessary corporate action.  This Agreement constitutes a valid and binding agreement of Buyer, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar legal requirements affecting creditors' rights generally.
 
ARTICLE 4
Covenants of Shareholder
 
Shareholder hereby covenants and agrees that:
 
Section 4.01 .  No Proxies for or Encumbrances on Shares.  Except pursuant to the terms of this Agreement, Shareholder shall not, without the prior written consent of Buyer, directly or indirectly, (i) grant any proxy or power of attorney or enter into any voting trust or other agreement or arrangement with respect to the voting of any Shares or (ii) acquire, sell, assign, transfer, pledge, encumber or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the direct or indirect acquisition or
 
 
3

 
 
sale, assignment, transfer, pledge, encumbrance or other disposition of, any Shares during the term of this Agreement. Shareholder shall not seek or solicit any such acquisition or sale, assignment, transfer, pledge, encumbrance or other disposition or any such contract, option or other arrangement or understanding and agrees to notify Buyer promptly, and to provide all details requested by Buyer, if Shareholder shall be approached or solicited, directly or indirectly, by any Person with respect to any of the foregoing.
 
ARTICLE 5
Miscellaneous
 
Section 5.01 .  Other Definitional and Interpretative Provisions.  Unless specified otherwise, in this Agreement the obligations of any party consisting of more than one person are joint and several.  The words “hereof”, “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.  References to Articles andSections are to Articles and Sections of this Agreement unless otherwise specified.    Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular.  Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact followed by those words or words of like import.  “Writing”, “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form.  References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof.  References to any Person include the successors and permitted assigns of that Person.  References from or through any date mean, unless otherw ise specified, from and including or through and including, respectively.
 
Section 5.02 .  Further Assurances.  Shareholder and Buyer will each execute and deliver, or cause to be executed and delivered, all further documents and instruments and use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations, to consummate and make effective the transactions contemplated by this Agreement.
 
Section 5.03 .  Amendments and Waivers. (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.
 
 
4

 
 
(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
 
Section 5.04    Termination.  This Agreement shall terminate (a) upon the earlier of the (i) termination of the Share Subscription Agreement in accordance with its terms, or (ii) the Closing under the Share Subscription Agreement, (b) at any time upon written notice by Buyer to Shareholder, or (c) if the Closing under the Share Subscription Agreement does not occur by January 31, 2011.  No party hereto shall be relieved from liability for breach of this Agreement by reason of any such termination.
 
Section 5.05 .  Expenses.  All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.
 
Section 5.06 .  Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of the other parties hereto; except that Buyer may transfer or assign its rights and obligations, in whole or from time to time, in part, to one or more of its Affiliates at any time.
 
Section 5.07 .  Governing Law.  This Agreement shall be governed by and construed in accordance with the law of the State of New York, without regard to the conflicts of law rules of such state.
 
Section 5.08 .  Jurisdiction.  The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Southern District of New York or any New York State court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business i n the State of New York, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
 
 
5

 
 
Section 5.09 . WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
 
Section 5.10 . Counterparts; Delivery; Effectiveness.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Any signed counterpart may be delivered by facsimile or other form of electronic transmission with the same legal force and effect, for all purposes, as delivery of an originally signed agreement. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other parties hereto.  Until and unless each party has received a counte rpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).
 
Section 5.11   Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
 
Section 5.12 .  Specific Performance.  The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in the United States District Court for the Southern District of New York or any New York State court sitting in New York City, in addition to any other remedy to which they are entitled at law or in equity.
 
Section 5.13   Capitalized Terms.  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Share Subscription Agreement.
 

[signature page follows]
 
 
6

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

 
CANON INVESTMENT HOLDINGS LIMITED
 
     
     
 
By:
/s/ Yincang Wei
 
   
Name:
Yincang Wei
 
   
Title:
Chairman
 


 
AL YOUSUF LLC
 
     
     
 
By:
/s/ Iqbal Al Yousuf
 
   
Name:
Iqbal Al Yousuf
 
   
Title:
President
 
 


EX-99 4 dp19320_ex-03.htm EXHIBIT-99.3
EXHIBIT 3
 

VOTING AGREEMENT
 
AGREEMENT, dated as of September 20, 2010 between Canon Investment Holdings Limited, a company organized under the laws of Hong Kong (“Buyer”), and the shareholders listed on the signature pages thereto (each a “Shareholder” and, collectively, “Shareholders”).
 
WHEREAS, each Shareholder owns the number of shares of common stock without par value, of the Company (“Common Stock”) set forth opposite such Shareholder’s name on Schedule A hereto (together with any shares of Common Stock that such Shareholder acquires after the date hereof, including upon exercise or conversion of any options, warrants, rights or other securities convertible into or exercisable for shares of Common Stock, the “Shares”);
 
WHEREAS, concurrently with the execution and delivery of this Agreement, Buyer and Altair Nanotechnologies, Inc., a company organized under the laws of Canada (the “Company”) are entering into a Share Subscription Agreement (the “Share Subscription Agreement”) for the sale and issuance by the Company, and the subscription by Buyer, of certain shares of Common Stock;
 
WHEREAS, as an inducement to Buyer entering into the Share Subscription Agreement and incurring the obligations thereunder, Buyer has requested that the Shareholders, and the Shareholders have agreed to, enter into this Agreement;
 
NOW, THEREFORE, the parties hereto agree as follows:
 
ARTICLE 1
Grant of Proxy; Voting Agreement
 
Section 1.01 .  Voting Agreement.  Each Shareholder hereby agrees to vote or exercise its right to consent with respect to all Shares that such Shareholder is entitled to vote at the time of any vote to approve the Common Stock Issuance to the Buyer at any meeting of the shareholders of the Company, and at any adjournment thereof, at which the Common Stock Issuance or any related agreements (or any amended version thereof) or actions are submitted for the consideration and vote of the shareholders of the Company.  Each Shareholder hereby agrees that it will not vote any Shares in favor of, or consent to, and will vote against an d not consent to, the approval of any (i) Acquisition Proposal, (ii) reorganization, recapitalization, liquidation or winding-up of the Company or any other extraordinary transaction involving the Company, (iii) corporate actions the
 
 
 

 
 
consummation of which would frustrate the purposes, or prevent or delay the consummation, of the transactions contemplated by the Share Subscription Agreement, or (iv) other matters relating to, or in connection with, any of the foregoing matters.
 
Section 1.02 .  Irrevocable Proxy.  Each Shareholder hereby revokes any and all previous proxies granted with respect to the Shares.  By entering into this Agreement, each Shareholder hereby grants a proxy appointing Buyer as such Shareholder’s attorney-in-fact and proxy, with full power of substitution, for and in such Shareholder’s name, to vote, express consent or dissent, or otherwise to utilize such voting power in the manner contemplated by Section 1.01 above as Buyer or its proxy or substitute shall, in Buyer’s sole discretion, deem proper with respect to the Shares.  The proxy granted by each Shareholder pursuant to this Article 1 is irrevocable and is granted in consideration of Buyer entering into this Agreement and the Share Subscription Agreement and incurring certain related fees and expenses.  The proxy granted by each Shareholder shall be revoked upon termination of this Agreement in accordance with its terms.
 
ARTICLE 2
Representations and Warranties of Shareholders
 
Each Shareholder represents and warrants to Buyer that:
 
Section 2.01   Authority and Power.  This Agreement constitutes a valid and binding Agreement of such Shareholder. If such Shareholder is married and the Shares constitute community property under Applicable Law, this Agreement has been duly authorized, executed and delivered by, and constitutes the valid and binding agreement of, such Shareholder’s spouse.  If this Agreement is being executed in a representative or fiduciary capacity, the Person signing this Agreement has full power and authority to enter into and perform this Agreement.
 
Section 2.02   Non-Contravention.  The execution, delivery and performance by such Shareholder of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) violate any Applicable Law, (ii) require any consent or other action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration or to a loss of any benefit to which such Shareholder is entitled under any provision of any agreement or other instrument binding on such Shareholder or (iii) result in the imposition of any Lien on any asset of such Shareholder.
 
Section 2.03 .  Ownership of Shares.  Such Shareholder is the record and beneficial owner of the Shares, free and clear of any Lien and any limitation or restriction on the right to vote the Shares.  None of the Shares is subject to any voting trust or other agreement or arrangement with respect to the voting of such Shares or the disposition of such Shares.
 
 
2

 
 
Section 2.04 .  Total Shares.  Except for the Shares and the options set forth on Schedule A hereto, such Shareholder does not beneficially own or have the right to vote any (i) shares of capital stock or voting securities of the Company (including securities entitling such Shareholder to vote at the Company Shareholder Meeting), (ii) securities of the Company convertible into or exchangeable for shares of capital stock or voting securities of the Company (including securities entitling such Shareholder to vote at the Company Shareholder Meeting) or (iii) options or other ri ghts to acquire from the Company any shares of capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of the Company (including any securities entitling such Shareholder to vote at the Company Shareholder Meeting).
 
Section 2.05 .  Finder’s Fees.  No investment banker, broker, finder or other intermediary is entitled to a fee or commission from Buyer or the Company in respect of this Agreement based upon any arrangement or agreement made by or on behalf of such Shareholder.
 
ARTICLE 3
Representations and Warranties of Buyer
 
Buyer represents and warrants to each Shareholder that:
 
Section 3.01 .  Corporation Authorization.  The execution, delivery and performance by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated hereby are within the corporate powers of Buyer and have been duly authorized by all necessary corporate action.  This Agreement constitutes a valid and binding agreement of Buyer.
 
ARTICLE 4
Covenants of Shareholders
 
Each Shareholder hereby covenants and agrees that:
 
Section 4.01 .  No Proxies for or Encumbrances on Shares.  Except pursuant to the terms of this Agreement, such Shareholder shall not, without the prior written consent of Buyer, directly or indirectly, (i) grant any proxy or power of attorney or enter into any voting trust or other agreement or arrangement with respect to the voting of any Shares or (ii) acquire, sell, assign, transfer, pledge, encumber or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the direct or indirect acquisition or sale, assignment, transfer, pledge, encumbrance or other disposition of, any Shares du ring the term of this Agreement (except with respect to acquisition of shares of Common Stock pursuant to exercise of outstanding options identified on Schedule A hereto). Such Shareholder shall not seek or solicit any such
 
 
3

 
 
acquisition or sale, assignment, transfer, pledge, encumbrance or other disposition or any such contract, option or other arrangement or understanding and agrees to notify Buyer promptly, and to provide all details requested by Buyer, if such Shareholder shall be approached or solicited, directly or indirectly, by any Person with respect to any of the foregoing.
 
ARTICLE 5
Miscellaneous
 
Section 5.01 .  Other Definitional and Interpretative Provisions.  Unless specified otherwise, in this Agreement the obligations of any party consisting of more than one person are joint and several.  The words “hereof”, “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.  References to Articles, Sections, Exhibits and Schedul es are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified.  All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein.  Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular.  Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact followed by those words or words of like import.  “Writing”, “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form.  References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof.  References to any Person include the successors and permitted assigns of that Person.  References from or through any date mean, unless otherwise specified, from and including or through and including, respectively.
 
Section 5.02 .  Further Assurances.  Each Shareholder will each execute and deliver, or cause to be executed and delivered, all further documents and instruments and use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations, to effect the purpose and terms of this Agreement.  Notwithstanding anything in this Agreement to the contrary, this Agreement is not intended to, and shall not, create any obligation on the party of any Shareholder to perform, or not perform, any action in such Shareholder’s capacity a s an officer or director of the Company.
 
Section 5.03 .  Amendments and Waivers.  (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this
 
 
4

 
 
Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.
 
(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
 
Section 5.04    Termination.  This Agreement shall terminate upon the (a) earlier of the (i) termination of the Share Subscription Agreement in accordance with its terms, or (ii) the Closing under the Share Subscription Agreement, or (b) at any time upon written notice by Buyer to a Shareholder.  No party hereto shall be relieved from any liability for breach of this Agreement by reason of any such termination.
 
Section 5.05 .  Expenses.  All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.
 
Section 5.06 .  Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of the other parties hereto, except that Buyer may transfer or assign its rights and obligations, in whole or from time to time, in part, to one or more of its Affiliates at any time.
 
Section 5.07 .  Governing Law.  This Agreement shall be governed by and construed in accordance with the law of the State of New York, without regard to the conflicts of law rules of such state.
 
Section 5.08 .  Jurisdiction.  The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Southern District of New York or any New York State court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business i n the State of New York, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party
 
 
5

 
 
anywhere in the world, whether within or without the jurisdiction of any such court.
 
Section 5.09 . WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
 
Section 5.10 . Counterparts; Delivery; Effectiveness.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Any signed counterpart may be delivered by facsimile or other form of electronic transmission with the same legal force and effect, for all purposes, as delivery of an originally signed agreement. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other parties hereto.  Until and unless each party has received a counte rpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).  
 
Section 5.11   Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
 
Section 5.12 .  Specific Performance.  The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in the United States District Court for the Southern District of New York or any New York State court sitting in New York City, in addition to any other remedy to which they are entitled at law or in equity.
 
Section 5.13   Capitalized Terms.  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Share Subscription Agreement.
 


[signature page follows]
 
 
6

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

 
CANON INVESTMENT HOLDINGS LIMITED
 
     
     
 
By:
/s/ Yincang Wei
 
   
Name:
Yincang Wei
 
   
Title:
Chairman
 
 
 
 
Terry M. Copeland
 
     
 
By:
/s/ Terry M. Copeland
 
 

 
John C. Fallini
 
     
 
By:
/s/ John C. Fallini
 
 

 
Bruce J. Sabacky
 
     
 
By:
/s/ Bruce J. Sabacky
 
 

 
Stephen A. Balogh
 
     
 
By:
/s/ Stephen A. Balogh
 
 

 
Daniel Voelker
 
     
 
By:
/s/ Daniel Voelker
 
 

 
C. Robert Pedraza
 
     
 
By:
/s/ C. Robert Pedraza
 
 

 
Tom Kieffer
 
     
 
By:
/s/ Tom Kieffer
 
 
 
 

 

 
Jon N. Bengston
 
     
 
By:
/s/ Jon N. Bengston
 
 

 
George E. Hartman
 
     
 
By:
/s/ George E. Hartman
 
 

 
Pierre Lortie
 
     
 
By:
/s/ Pierre Lortie
 
 

 
Robert G. van Schoonenberg
 
     
 
By:
/s/ Robert G. van Schoonenberg
 
 

 
Hossein Asrar Haghighi
 
     
 
By:
/s/ Hossein Asrar Haghighi
 
 

 
Alexander Lee
 
     
 
By:
/s/ Alexander Lee
 
 
 
 

 

 
Schedule A

 
Name
 
 
Number of shares
Number of shares
underlying
outstanding options
Terry M. Copeland
9,387
1,025,000
John C. Fallini
7,000
360,000
Bruce J. Sabacky
13,116
437,074
Stephen A. Balogh
41,805
404,463
Daniel Voelker
0
410,000
C. Robert Pedraza
9,446
435,017
Tom Kieffer
0
70,000
Jon N. Bengston
230,099
0
George E. Hartman
231,399
75,000
Pierre Lortie
209,658
36,667
Robert G. van Schoonenberg
220,358
0
Hossein Asrar Haghighi
0
0
Alexander Lee
0
0






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