Exhibit 10.186


 


Alpha
Capital


 


Via Facsimile
and First Class Mail


 


Effective 01/01/15


 


		Re:	FORBEARANCE AGREEMENT



 


Ladies and Gentlemen:


 


Reference is
made to attached ledger stating the Senior Secured Convertible Note due, from NaturalNano, Inc. and NaturalNano Research, Inc.
(jointly and severally, the “Borrower”) to Alpha Capital (the “Lender”). Capitalized terms used herein
and not otherwise defined shall have the respective meanings given in the Notes.


 


The Borrower
has requested that the Lender forbear from exercising its various rights and remedies under the Notes and other related documents
(collectively, the “Loan Documents”) that may otherwise be exercised by the Lender on the date hereof, in order to
provide the Borrower with additional time during which it may resolve its current financial problems.


 


The Lender is
prepared to forbear from demanding payment of principal on the Notes on the Maturity Date of the Notes, or taking any other action
to collect the principal amount of the Notes until the earlier of June 30, 2015 (unless extended by the Lender in its discretion)
or the termination of the Forbearance Period pursuant to the terms of this Letter Agreement (such period, the “Forbearance
Period”), provided the Borrower accepts and agrees to the terms, conditions and covenants set forth herein, and communicates
such acceptance (by delivering a signed copy of this Letter Agreement) to the Lender no later than 5:00 p.m. on June 30, 2015;
provided further it is understood that Borrower is obligated to make all interest payments required under the Notes during the
Forbearance Period.


 


Upon execution
by the Borrower, this letter shall be a binding agreement among the respective parties hereto (referred to as the “Letter
Agreement”).


 


By its execution,
the Borrower represents, warrants and covenants as follows:


 


1.       No
Duress. The Borrower has freely and voluntarily entered into this Letter Agreement after an adequate opportunity to review
and discuss the terms and conditions and all factual and legal matters relevant hereto with counsel freely and independently chosen
by it and this Letter Agreement is being executed without fraud, duress, undue influence or coercion of any kind or nature whatsoever
having been exerted by or imposed upon any parly.


 


2.       Amount
Due. The Borrower does not contest the amounts outstanding under the Notes as set forth in the Lender’s books and records
(the “Outstanding Amount”). The Borrower shall also be responsible for reimbursing the Lender for all costs and expenses,
including the fees and expenses of legal counsel that may be incurred in connection with the enforcement of this Letter Agreement,
which, if incurred, shall be added to the Outstanding Amount. The Borrower acknowledges and agrees that the Outstanding Amount,
plus interest accrued thereon, shall be due and owing upon termination of the Forbearance Period.


 




    	 



    	Page 2



    

 


3.       No
Defenses.  The Borrower has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims,
or causes of action of any kind or nature whatsoever against the Lender, its officers, directors, employees, attorneys, legal
representatives or affiliates (collectively, the “Lender Group”), directly or indirectly, arising out of, based upon,
or in any manner connected with, any transaction, event, circumstance, action, failure to act, or occurrence of any sort or type,
whether known or unknown, which occurred, existed, was taken, permitted, or began prior to the execution of this Letter Agreement
and accrued, existed, was taken, permitted or begun in accordance with, pursuant to, or by virtue of the Notes or any of the terms
or conditions of the Loan Documents, or which directly or indirectly relate to or arise out of or in any manner are connected
with the Notes or any of the Loan Documents; TO THE EXTENT ANY SUCH DEFENSES, AFFIRMATIVE OR OTHERWISE, RIGHTS OF SETOFF, RIGHTS
OF RECOUPMENT, CLAIMS, COUNTERCLAIMS, OR CAUSES OF ACTION EXIST, SUCH DEFENSES, RIGHTS, CLAIMS, COUNTERCLAIMS, AND CAUSES OF ACTION
ARE HEREBY FOREVER WAIVED, DISCHARGED AND RELEASED.


 


4.       Interest
Continues to Accrue.  During the Forbearance Period, the Outstanding Amount shall bear interest at the interest and it being
understood that the default rate shall apply upon the occurrence of any Event of Default (other than Existing Defaults) thereunder
or upon termination of the Forbearance Period.


 


5.       Other
Notes.  none


 


6.       Forbearance.
 During the Forbearance Period, the Lender agrees that it will not take any further action against the Borrower or exercise or
move to enforce any other rights or remedies provided for in the Loan Documents or otherwise available to it, at law or
in equity, by virtue of the occurrence and/or continuation of any default or Event of Default under the Notes existing on the
date hereof, including any default relating to the Borrower’s failure to maintain the effectiveness of any registration
statement (the “Existing Defaults”), or take any action against any property in which the Borrower has any
interest.


 


7.       Lender
to Retain all Rights. It is understood and agreed that this Letter Agreement does not waive or evidence consent to any default
or Event of Default (including the Existing Defaults) under the Notes or the Loan Documents. The parties hereto acknowledge and
agree that the Lender (i) shall retain all rights and remedies it may now have with respect to the Notes and the Borrower’s
obligations under the Loan Documents (“Default Rights”), and (ii) shall have the right to exercise and enforce such
Default Rights upon termination of the Forbearance Period. The parties further agree that the exercise of any Default Rights by
the Lender upon termination of the Forbearance Period shall not be affected by reason of this Letter Agreement, and the parties
hereto shall not assert as a defense thereto the passage of time,


 




    	 



    	 



    

 


Alpha
Capital


 


Via
Facsimile and First Class Mail


 


Effective 01/01/15


 


		Re:	FORBEARANCE AGREEMENT



 


Ladies and Gentlemen:


 


Reference is
made to attached ledger stating the Senior Secured Convertible Note due, from NaturalNano, Inc. and NaturalNano Research, Inc.
(jointly and severally, the “Borrower”) to Alpha Capital (the “Lender”). Capitalized terms used herein
and not otherwise defined shall have the respective meanings given in the Notes.


 


The Borrower
has requested that the Lender forbear from exercising its various rights and remedies under the Notes and other related documents
(collectively, the “Loan Documents”) that may otherwise be exercised by the Lender on the date hereof, in order to
provide the Borrower with additional time during which it may resolve its current financial problems.


 


The Lender is
prepared to forbear from demanding payment of principal on the Notes on the Maturity Date of the Notes, or taking any other action
to collect the principal amount of the Notes until the earlier of June 30, 2015 (unless extended by the Lender in its discretion)
or the termination of the Forbearance Period pursuant to the terms of this Letter Agreement (such period, the “Forbearance
Period”), provided the Borrower accepts and agrees to the terms, conditions and covenants set forth herein, and communicates
such acceptance (by delivering a signed copy of this Letter Agreement) to the Lender no later than 5:00 p.m. on June 30, 2015;
provided further it is understood that Borrower is obligated to make all interest payments required under the Notes during the
Forbearance Period.


 


Upon execution
by the Borrower, this letter shall be a binding agreement among the respective parties hereto (referred to as the “Letter
Agreement”).


 


By its execution,
the Borrower represents, warrants and covenants as follows:


 


1.       No
Duress.   The Borrower has freely and voluntarily entered into this Letter Agreement after an adequate
opportunity to review and discuss the terms and conditions and all factual and legal matters relevant hereto with counsel
freely and independently chosen by it and this Letter Agreement is being executed without fraud, duress, undue influence or
coercion of any kind or nature whatsoever having been exerted by or imposed upon any party.


 


2.       Amount
Due. The Borrower does not contest the amounts outstanding under the Notes as set forth in the Lender’s books and records
(the “Outstanding Amount”). The Borrower shall also be responsible for reimbursing the Lender for all costs and expenses,
including the fees and expenses of legal counsel that may be incurred in connection with the enforcement of this Letter Agreement,
which, if incurred, shall be added to the Outstanding Amount. The Borrower acknowledges and agrees that the Outstanding Amount,
plus interest accrued thereon, shall be due and owing upon termination of the Forbearance Period.


 




    	 



    	Page 2



    

 


3.       No
Defenses. The Borrower has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims,
or causes of action of any kind or nature whatsoever against the Lender, its officers, directors, employees, attorneys, legal
representatives or affiliates (collectively, the “Lender Group”), directly or indirectly, arising out of, based upon,
or in any manner connected with, any transaction, event, circumstance, action, failure to act, or occurrence of any sort or type,
whether known or unknown, which occurred, existed, was taken, permitted, or began prior to the execution of this Letter Agreement
and accrued, existed, was taken, permitted or begun in accordance with, pursuant to, or by virtue of the Notes or any of the terms
or conditions of the Loan Documents, or which directly or indirectly relate to or arise out of or in any manner are connected
with the Notes or any of the Loan Documents; TO THE EXTENT ANY SUCH DEFENSES, AFFIRMATIVE OR OTHERWISE, RIGHTS OF SETOFF, RIGHTS
OF RECOUPMENT, CLAIMS, COUNTERCLAIMS, OR CAUSES OF ACTION EXIST, SUCH DEFENSES, RIGHTS, CLAIMS, COUNTERCLAIMS, AND CAUSES OF ACTION
ARE HEREBY FOREVER WAIVED, DISCHARGED AND RELEASED.


 


4.       Interest
Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest at the interest and it being
understood that the default rate shall apply upon the occurrence of any Event of Default (other than Existing Defaults) thereunder
or upon termination of the Forbearance Period.


 


5.       Other
Notes. none


 


6.       Forbearance.  During the Forbearance Period, the Lender agrees that it will not take any further action against the Borrower
or exercise or move to enforce any other rights or remedies provided for in the Loan Documents or otherwise available to it, at
law or in equity, by virtue of the occurrence and/or continuation of any default or Event of Default under the Notes existing
on the date hereof, including any default relating to the Borrower’s failure to maintain the effectiveness of any registration
statement (the “Existing Defaults”), or take any action against any property in which the Borrower has any interest.


 


7.       Lender
to Retain all Rights. It is understood and agreed that this Letter Agreement does not waive or evidence consent to any default
or Event of Default (including the Existing Defaults) under the Notes or the Loan Documents. The parties hereto acknowledge and
agree that the Lender (i) shall retain all rights and remedies it may now have with respect to the Notes and the Borrower’s
obligations under the Loan Documents (“Default Rights”), and (ii) shall have the right to exercise and enforce such
Default Rights upon termination of the Forbearance Period. The parties further agree that the exercise of any Default Rights by
the Lender upon termination of the Forbearance Period shall not be affected by reason of this Letter Agreement, and the parties
hereto shall not assert as a defense thereto the passage of time, estoppel, laches or any statute of limitations to the extent
that the exercise of any Default Rights was precluded by this Letter Agreement.


 




    	 



    	Page 3



    

 


8.       Termination
of Forbearance Period. The Forbearance Period shall terminate upon the earlier to occur of: (1) 5:00 pm (New York City Time)
on June 30, 2015; (2) the Borrower shall fail to observe, perform, or comply with any of the terms, conditions or provisions of
this Letter Agreement as and when required and/or any other Event of Default (other than the Existing Defaults occurring prior
to the date hereof) shall occur under the Notes or any of the Loan Documents or any other agreement between the Borrower and the
Lender (or its affiliates) or any other indebtedness issued by the Borrower to the Lender or its affiliates; (3) any representation
or warranty made herein, in any document executed and delivered in connection herewith, or in any report, certificate, financial
statement or other instrument or document now or hereafter furnished by or on behalf of the Borrower in connection with this Letter
Agreement, shall prove to have been false, incomplete or misleading in any material respect on the date as of which it was made;
(4) any suit preceding or other action is commenced by any other creditor against the Company; or (5) a court of competent jurisdiction
shall enter an order for relief or take any similar action in respect of the Borrower in an involuntary case under any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law now or hereafter in effect or a petition for relief under any
applicable bankruptcy, insolvency, reorganization, moratorium or other similar law shall be filed by or against the Borrower.


 


Upon termination
of the Forbearance Period, should the Notes or any of the Borrower’s obligations under the Loan Documents not be satisfied
in full, the Lender shall be entitled to pursue immediately its various rights and remedies, including its Default Rights, against
the Borrower, all collateral given by the Borrower to secure the Loan and the obligations under the Loan Documents, without regard
to notice and cure periods, all of which are hereby waived by the Borrower. Without limiting the generality of the foregoing, upon
termination of the Forbearance Period, the Lender shall be permitted to immediately exercise its rights to demand and collect on
the Outstanding Amount.


 




    	 



    	Page 4



    

 


If the foregoing is acceptable
to you, please sign in the space provided below.


 


	 	Sincerely,
	 	 
	 	Alpha Capital
	 	 	 
	 	By:	/s/ Kourad Ackermann
	 	 	Name: Kourad Ackermann
	 	 	Title: Director


 


Accepted and Agreed as of this of February
25 ,2015


 


NATURALNANO, INC.


 


	By:	 	 
	 	Name:	 
	 	Title:	 


 


NATURALNANO RESEARCH, INC.


 


	By:	 	 
	 	Name:	 
	 	Title: