Document:

Exhibit
        4.4

      
 

      SUBSCRIPTION
        AGREEMENT

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Print
        Name of Subscriber:_____________

      Amount
        Subscribed For: $____________

      

      SUBSCRIPTION
        AGREEMENT

      

      For
        the Purchase of Convertible Note 

      of

      NaturalNano,
        Inc.

      

      This
        SUBSCRIPTION AGREEMENT (the “Subscription Agreement”) sets forth the terms by
        which the undersigned (sometimes also referred to as the “subscriber”) hereby
        subscribes for a Convertible Promissory (“Note” or “Securities”) of NaturalNano,
        Inc., a Delaware corporation (the “Company”). The Company is offering for
        purchase Notes in the aggregate amount of $1,000,000 (subject to increase,
        at
        the Company’s sole discretion)(the “Offering”).

      

      The
        Notes
        will be offered by the Company on a best efforts basis but may utilize the
        services of selected registered broker-dealers. The Notes shall be offered
        only
        to “Accredited Investors,” as such term is defined under Rule 501(a) of the
        Securities Act of 1933, as amended (the “Act”), including, without limitation,
        entities within such definition, without registration, pursuant to the exemption
        from registration created by Regulation D under the Act. The Offering will
        commence on June 6, 2005, and shall terminate on July 31, 2005, unless extended
        by the Company in its sole discretion and without notice to any subscriber
        (the
“Offering Period”).

      

      The
        subscriber agrees to pay the purchase price listed on the signature page
        as a
        subscription for the Note being purchased hereunder. The entire purchase
        price
        is due and payable upon the execution of this Subscription Agreement, and
        shall
        be paid by check, subject to collection, or by wire transfer. The Company
        shall
        have the right to reject this subscription in whole or in part.

      

      The
        Company, at its discretion, will hold a closing on, and issue, the Notes
        upon
        the receipt and acceptance by the Company of Subscription Agreements (“First
        Closing”). As additional subscriptions are received and accepted by the Company,
        the Company will hold additional closings as the Company deems necessary
        until
        (i) it has received and accepted subscriptions for the entire offering or
        (ii)
        the Termination Date, whichever occurs first.

      

      

      

      PROSPECTIVE
        INVESTORS SHOULD RETAIN THEIR OWN PROFESSIONAL 

      ADVISORS
        TO REVIEW AND EVALUATE THE ECONOMIC, TAX AND OTHER 

      CONSEQUENCES
        OF AN INVESTMENT IN THE COMPANY.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      THE
        SECURITIES ARE OFFERED PURSUANT TO THIS SUBSCRIPTION AGREEMENT AND THE OTHER
        DOCUMENTS ANNEXED HERETO (COLLECTIVELY, THE “OFFERING MATERIALS”), WHICH
        OFFERING MATERIALS HAVE NOT BEEN FILED OR REGISTERED WITH OR APPROVED BY
        THE
        SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”), NOR HAS THE COMMISSION
        PASSED UPON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS. NO STATE
        SECURITIES LAW ADMINISTRATOR HAS PASSED ON OR ENDORSED THE MERITS OF THIS
        OFFERING OR THE ACCURACY OR THE ADEQUACY OF THE OFFERING MATERIALS. ANY
        REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

      

      IT
        IS INTENDED THAT THE SECURITIES OFFERED HEREBY WILL BE MADE AVAILABLE ONLY
        TO
“ACCREDITED INVESTORS,” AS DEFINED IN RULE 501 OF REGULATION I PROMULGATED UNDER
        THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THE SECURITIES OFFERED
        HEREBY ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
        REQUIREMENTS OF THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS FOR NONPUBLIC
        OFFERINGS. SUCH EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH
        THE
        OFFERING WILL BE MADE AND RESTRICT SUBSEQUENT TRANSFERS OF THE
        INTERESTS.

      

      THE
        SECURITIES OFFERED HEREBY SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD
        TO
        SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS WILL BE REQUIRED TO
        REPRESENT THAT THEY ARE FAMILIAR WITH AND UNDERSTAND THE TERMS OF THIS
        OFFERING.

      

      NO
        SECURITIES MAY BE RESOLD OR OTHERWISE DISPOSED OF BY AN INVESTOR UNLESS,
        IN THE
        OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION UNDER THE
        APPLICABLE FEDERAL OR STATE SECURITIES LAWS IS NOT REQUIRED OR COMPLIANCE
        IS
        MADE WITH SUCH REGISTRATION REQUIREMENTS.

      

      WE
        DRAW YOUR ATTENTION TO THE ANTIFRAUD PROVISIONS OF THE FEDERAL AND STATE
        SECURITIES LAWS, PARTICULARLY RULE 10b5 UNDER THE SECURITIES EXCHANGE ACT
        OF
        1934, AS AMENDED, WHICH PROHIBITS THE PURCHASE OR SALE OF SECURITIES ON THE
        BASIS OF MATERIAL NONPUBLIC INFORMATION. IN LIGHT OF THESE PROVISIONS, INCLUDING
        RULE l0b5, WE ADVISE YOU THAT, IF YOU ARE IN POSSESSION OF MATERIAL INFORMATION
        RELATING TO THE COMPANY WHICH YOU KNOW OR HAVE REASON TO KNOW IS NONPUBLIC,
        YOU
        SHOULD NOT PURCHASE OR SELL OR CAUSE TO BE PURCHASED OR SOLD ANY OF THE
        COMPANY’S SECURITIES. IN ADDITION, YOU SHOULD NOT DISCLOSE ANY OF SUCH
        INFORMATION UNLESS AND UNTIL SUCH INFORMATION HAS BEEN PUBLICLY
        DISCLOSED.

      

      THE
        OFFERING MATERIALS ARE SUBMITTED IN CONNECTION WITH THE PRIVATE PLACEMENT
        OF THE
        SECURITIES AND DO NOT CONSTITUTE AN OFFER OR SOLICITATION BY ANYONE IN ANY
        JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. IN
        ADDITION, THE OFFERING MATERIALS CONSTITUTE AN OFFER ONLY IF A NAME AND
        IDENTIFICATION NUMBER APPEAR IN THE APPROPRIATE SPACES PROVIDED ON THE COVER
        PAGE AND CONSTITUTE AN OFFER ONLY TO THE PERSON WHOSE NAME APPEARS THEREON.
        ANY
        REPRODUCTION OR DISTRIBUTION OF THE OFFERING MATERIALS IN WHOLE OR IN PART,
        OR
        THE DIVULGENCE OF ANY OF THEIR CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT
        OF
        THE COMPANY, IS PROHIBITED. ANY PERSON ACTING CONTRARY TO THE FOREGOING
        RESTRICTIONS MAY PLACE HIMSELF AND THE COMPANY IN
        VIOLATION OF FEDERAL OR STATE SECURITIES LAWS.

      

      THE
        COMPANY RESERVES THE RIGHT TO ACCEPT OR REJECT ANY SUBSCRIPTION FOR SECURITIES,
        IN WHOLE OR IN PART, OR TO ALLOT TO ANY PROSPECTIVE INVESTOR FEWER THAN THE
        NUMBER OF SECURITIES SUCH INVESTOR DESIRES TO
        PURCHASE.

      
        
          
          

        

        
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      IN
        DECIDING WHETHER TO PURCHASE SECURITIES, EACH INVESTOR MUST CONDUCT AND RELY
        ON
        ITS OWN EVALUATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING
        THE
        MERITS AND RISKS INVOLVED IN MAKING AN INVESTMENT DECISION WITH RESPECT TO
        THE
        SECURITIES. PROSPECTIVE INVESTORS SHOULD NOT CONSTRUE THE CONTENTS OF THE
        OFFERING MATERIALS OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY,
        OR ANY PROFESSIONAL ASSOCIATED WITH THE OFFERING, AS LEGAL OR TAX ADVICE.
        THE
        OFFEREE AUTHORIZED TO RECEIVE THE OFFERING MATERIALS SHOULD CONSULT ITS OWN
        TAX
        COUNSEL, ACCOUNTANT OR BUSINESS ADVISOR, RESPECTIVELY, AS TO LEGAL, TAX AND
        RELATED MATTERS CONCERNING ITS PURCHASE OF THE SECURITIES.

      

      THE
        INFORMATION PRESENTED HEREIN WAS PREPARED BY THE COMPANY AND IS BEING FURNISHED
        SOLELY FOR USE BY PROSPECTIVE INVESTORS IN CONNECTION WITH THE OFFERING.
        THE
        INFORMATION CONTAINED IN THE OFFERING MATERIALS HAS BEEN SUPPLIED BY THE
        COMPANY
        AND HAS BEEN INCLUDED HEREIN IN RELIANCE ON THE COMPANY.

      

      EXCEPT
        AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THE DATE HEREOF.
        NEITHER THE DELIVERY OF THE OFFERING MATERIALS NOR ANY SALE MADE HEREUNDER
        SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY
        IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY AFTER
        THE DATE HEREOF.

      

      NO
        GENERAL SOLICITATION WILL BE CONDUCTED AND NO OFFERING LITERATURE OR ADVERTISING
        IN ANY FORM
        WILL OR MAY BE EMPLOYED IN THE OFFERING OF THE SECURITIES, EXCEPT FOR THE
        OFFERING MATERIALS (INCLUDING AMENDMENTS OR SUPPLEMENTS HERETO). NO PERSON
        IS
        AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED
        IN THE OFFERING MATERIALS AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR
        REPRESENTATION MUST NOT BE RELIED UPON.

      

      BY
        ACCEPTING DELIVERY OF ANY OFFERING MATERIAL, THE OFFEREE AGREES (I) TO KEEP
        CONFIDENTIAL THE CONTENTS THEREOF, AND NOT TO DISCLOSE THE SAME TO ANY THIRD
        PARTY OR OTHERWISE USE THE SAME FOR ANY PURPOSE OTHER THAN EVALUATION BY
        SUCH
        OFFEREE OF A POTENTIAL PRIVATE INVESTMENT IN THE COMPANY AND (II) TO RETURN
        THE
        SAME TO THE COMPANY IF (A) THE OFFEREE DOES NOT SUBSCRIBE TO PURCHASE ANY
        SECURITIES, (B) THE OFFEREE’S SUBSCRIPTION IS NOT ACCEPTED, OR (C) THE OFFERING
        IS TERMINATED OR WITHDRAWN.

      

      THE
        COMPANY WILL MAKE AVAILABLE TO ANY PROSPECTIVE INVESTOR, PRIOR TO THE CLOSING,
        THE OPPORTUNITY TO ASK QUESTIONS OF AND TO RECEIVE ANSWERS FROM REPRESENTATIVES
        OF THE COMPANY CONCERNING THE COMPANY OR THE TERMS AND CONDITIONS OF THE
        OFFERING AND TO OBTAIN ANY ADDITIONAL RELEVANT INFORMATION TO THE EXTENT
        THE
        COMPANY POSSESSES SUCH INFORMATION OR CAN OBTAIN IT WITHOUT UNREASONABLE
        EFFORT
        OR EXPENSE. INVESTORS AGREE TO ADVISE THE COMPANY IN WRITING IF THEY ARE
        RELYING
        UPON ANY SUCH INFORMATION.

      

      FOR
        RESIDENTS OF ALL STATES

      

      IN
        MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION
        OF
        THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS
        INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE
        SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING
        AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF
        THIS
        DOCUMENT.

      
        
          
          

        

        
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      THESE
        SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND
        MAY NOT
        BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE 1933 ACT AND THE
        APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
        THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
        FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
        TIME.

      

      FOR
        FLORIDA RESIDENTS

      

      THE
        SECURITIES REFERRED TO HEREIN WILL BE SOLD TO, AND ACQUIRED BY, THE HOLDER
        IN A
        TRANSACTION EXEMPT UNDER §517.061 OF THE FLORIDA SECURITIES ACT. THE SECURITIES
        HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF FLORIDA. IN ADDITION,
        ALL FLORIDA RESIDENTS SHALL HAVE THE PRIVILEGE OF VOIDING THE PURCHASE WITHIN
        THREE (3) DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE
        BY SUCH
        PURCHASER TO THE ISSUER, AN AGENT OF THE ISSUER OR AN ESCROW
        AGENT OR WITHIN THREE (3) DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS
        COMMUNICATED TO SUCH INVESTOR, WHICHEVER OCCURS LATER.

      

      FOR
        NEW JERSEY RESIDENTS

      

      THESE
        SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE BUREAU OF SECURITIES
        OF
        THE STATE OF NEW JERSEY NOR HAS THE BUREAU PASSED ON OR ENDORSED THE MERITS
        OF
        THIS OFFERING. THE FILING OF THE WITHIN OFFERING DOES NOT CONSTITUTE APPROVAL
        OF
        THE ISSUE OR SALE THEREOF BY THE BUREAU OF SECURITIES. ANY REPRESENTATION
        TO THE
        CONTRARY IS UNLAWFUL.

      

      FOR
        NEW YORK RESIDENTS

      

      THE
        OFFERING MATERIALS HAVE NOT BEEN REVIEWED BY THE ATTORNEY GENERAL OF THE
        STATE
        OF NEW YORK PRIOR TO THEIR ISSUANCE AND USE. THE ATTORNEY GENERAL OF THE
        STATE
        OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY
        REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

      

      THE
        OFFERING MATERIALS DO NOT CONTAIN AN UNTRUE STATEMENT OF A MATERIAL FACT
        OR OMIT
        TO STATE A MATERIAL FACT NECESSARY TO MAKE THE STATEMENTS MADE IN LIGHT OF
        THE
        CIRCUMSTANCES UNDER WHICH THEY WERE MADE NOT MISLEADING. THEY CONTAIN A FAIR
        SUMMARY OF THE MATERIAL TERMS AND DOCUMENTS PURPORTED TO BE SUMMARIZED HEREIN,
        TO THE EXTENT ANY SUCH SUMMARIES ARE SO INCLUDED.

      

      FOR
        TEXAS RESIDENTS

      

      THE
        SECURITIES HAVE NOT BEEN REGISTERED UNDER THE 1933 ACT OR THE TEXAS ACT AND
        ARE
        BEING SOLD IN RELIANCE UPON THE EXEMPTION CONTAINED IN SECTION 5(1)(a) AND
        RULE
        109.13 OF SUCH ACT. THESE SECURITIES CANNOT BE SOLD, TRANSFERRED OR OTHERWISE
        DISPOSED OF TO ANY PERSON OR ENTITY UNLESS SUBSEQUENTLY REGISTERED UNDER
        THE
        1933 ACT AND/OR THE TEXAS ACT OR EXEMPTION THEREFROM.

      

      The
        subscriber acknowledges that the Note being purchased hereunder will not
        be
        registered under the 1933 Act, or the securities laws of any State, that
        absent
        an exemption from registration contained in those laws, the issuance and
        sale of
        the Note, or the shares into which the Note is converted, would require
        registration, and that the Company’s reliance upon such exemption is based upon
        the subscriber’s representations, warranties, and agreements contained in the
        Offering Materials.

      
        
          
          

        

        
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      REPRESENTATIONS,
        WARRANTIES AND AGREEMENTS OF SUBSCRIBER

      

      
        
          1.    The
            subscriber represents, warrants, and agrees as follows:

           

        

      

      (a)    The
        subscriber agrees that this Subscription Agreement is and shall be
        irrevocable.

      

      (b)    The
        subscriber has carefully read the Offering Materials, all of which the
        subscriber acknowledges have been provided to the subscriber. The subscriber
        has
        been given the opportunity to ask questions of, and receive answers from,
        the
        Company concerning the terms and conditions of this Offering and the Offering
        Materials and to obtain such additional written information, to the extent
        the
        Company possesses such information or can acquire it without unreasonable
        effort
        or expense, necessary to verify the accuracy of same as the subscriber desires
        in order to evaluate the investment. The subscriber further acknowledges
        that he
        or she fully understands the Offering Materials, and the subscriber has had
        the
        opportunity to discuss any questions regarding any of the Offering Materials
        with his or her counsel or other advisor. Notwithstanding the foregoing,
        the
        only information upon which the subscriber has relied is that set forth in
        the
        Offering Materials and his or her own independent investigation. The subscriber
        acknowledges that the subscriber has received no representations or warranties
        from the Company, or its respective officers, directors, stockholders, employees
        or agents in making this investment decision other than as specifically set
        forth in the Offering Materials.

      

      (c)    The
        subscriber is aware that the purchase of the Note is a speculative investment
        involving a high degree of risk and that there is no guarantee that the
        subscriber will realize any gain from this investment, and that the subscriber
        could lose the total amount of the subscriber’s investment. The subscriber
        acknowledges that the subscriber has satisfied itself as to its awareness
        of all
        of the risk factors related to the purchase of the Note.

      

      (d)    The
        subscriber understands that no federal or state agency or authority has made
        any
        finding or determination regarding the fairness of this Offering of the Note
        for
        investment, or any recommendation or endorsement of this Offering of the
        Note.

      

      (e)    The
        subscriber is purchasing the Note for the subscriber’s own account, with the
        intention of holding the Note, with no present intention of dividing or allowing
        others to participate in this investment or of reselling or otherwise
        participating, directly or indirectly, in a distribution of the Note, and
        shall
        not make any sale, transfer, or pledge thereof without registration under
        the
        1933 Act and any applicable securities laws of any state or other jurisdiction
        or unless an exemption from registration is available under those laws to
        the
        satisfaction of the Company and its counsel.

      

      (f)    The
        subscriber represents that the subscriber, if an individual, has adequate
        means
        of providing for his or her current needs and personal and family contingencies
        and has no need for liquidity in this investment in the Note. The subscriber
        represents that the subscriber is an “Accredited Investor” as defined in Rule
        501(a) of Regulation D promulgated under the 1933 Act, as evidenced by meeting
        at least one of the following standards:

      

      (i)    the
        Investor is a natural person and had individual income (i.e.,
        not
        including, if applicable, income of the Investor’s spouse) in excess of $200,000
        in the two previous years and reasonably expects to have income in excess
        of
        $200,000 in the present year, or he, she and his or her spouse had joint
        income
        in excess of $300,000 in the two previous years and reasonably expect to
        have
        joint income of $300,000 in the present year;

       

      
        
          
          

        

        
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      (ii)    the
        Investor is a natural person and his or her net worth at the time of his
        or her
        purchase of the Note (i.e.,
        excess
        of total assets over total liabilities), inclusive of home, home furnishings
        and
        automobiles, either individually or jointly with his or her spouse, exceeds
        $1,000,000;

      

      (iii)    the
        Investor is an organization defined in Section 501(c)(3) of the Internal
        Revenue
        Code, business trust, partnership, or corporation with total assets in excess
        of
        $5,000,000, which was not formed for the specific purpose of acquiring the
        Note;

      

      (iv)    any
        trust
        with total assets in excess of $5,000,000, not formed for the specific purpose
        of acquiring the Note, whose purchase is directed by a sophisticated person
        as
        described in Rule 506(b)(2)(ii);

      

      (v)    the
        Investor is an employee benefit plan within the meaning of ERISA and (i)
        the
        Investor’s investment decision is made by a plan fiduciary, as defined in
        Section 3(21) of ERISA, that is either a bank, savings and loan association,
        insurance company, or registered investment advisor, (ii) the investor’s total
        assets are in excess of $5,000,000 or (iii), if a self-directed plan, the
        Investor’s investment decisions are made solely by persons who are Accredited
        Investors;

      

      (vi)    the
        Investor is a bank as defined in Section 3(a)(2) of the Securities Act; any
        savings and loan association or other institution as defined in Section
        3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary
        capacity; any broker or dealer registered pursuant to Section 5 of the
        Securities Exchange Act of 1934; an insurance company as defined in Section
        2(13) of the Securities Act; an investment company registered under the
        Investment Company Act of 1940, as amended; a Small Business Investment Company
        licensed by the U.S. Small Business Administration under Section 301(c) or
        (d)
        of the Small Business Investment Act of 1958; any plan established and
        maintained by a state, its political subdivisions, or any agency or
        instrumentality thereof, for the benefit of its employees, if such plan has
        total assets in excess of $5,000,000; or a private business development company
        as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;
        or

      

      (vii)    the
        Investor is an entity in which all of the equity owners would qualify as
        “Accredited Investors.”

      

      The
        subscriber has no reason to anticipate any material change in his or her
        personal financial condition for the foreseeable future.

      

      (g)    The
        subscriber is financially able to bear the economic risk of this investment,
        including the ability to hold the Note indefinitely or to afford a complete
        loss
        of his or her investment in the Note.

      

      
        
          
          

        

        
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      (h)    The
        subscriber represents that the subscriber’s overall commitment to investments
        which are not readily marketable is not disproportionate to the subscriber’s net
        worth, and the subscriber’s investment in the Note will not cause such overall
        commitment to become excessive. The subscriber understands that the statutory
        basis on which the Notes are being sold to the subscriber and others would
        not
        be available if the subscriber’s present intention were to hold the Note for a
        fixed period or until the occurrence of a certain event. The subscriber realizes
        that, in the view of the Securities and Exchange Commission, a purchase now
        with
        a present intent to resell by reason of a foreseeable specific contingency
        or
        any anticipated change in the market value, or in the condition of the Company,
        or that of the industry in which the business of the Company is engaged or
        in
        connection with a contemplated liquidation, or settlement of any loan obtained
        by the subscriber for the acquisition of the Note, and for which such Note
        may
        be pledged as security or as donations to religious or charitable institutions
        for the purpose of securing a deduction on an income tax return, would, in
        fact,
        represent a purchase with an intent inconsistent with the subscriber’s
        representations to the Company and the Securities and Exchange Commission
        would
        then regard such sale as a sale for which the exemption from registration
        is not
        available. The subscriber will not pledge, transfer or assign this Subscription
        Agreement, or any interest herein or any obligation or right hereunder, without
        first obtaining the written consent of the Company.

      

      (i)    The
        subscriber represents that the funds provided for this investment are either
        separate property of the subscriber, community property over which the
        subscriber has the right of control, or are otherwise funds as to which the
        subscriber has the sole right of management.

      

      (j)    FOR
        PARTNERSHIPS, CORPORATIONS, TRUSTS, OR OTHER ENTITIES ONLY:
        If the
        subscriber is a partnership, corporation, trust or other entity, (i) the
        subscriber has enclosed with this Subscription Agreement appropriate evidence
        of
        the authority of the individual executing this Subscription Agreement to
        act on
        its behalf (e.g.,
        if a
        trust, a certified copy of the trust agreement; if a corporation, a certified
        corporate resolution authorizing the signature and a certified copy of the
        articles of incorporation; or, if a partnership, a certified copy of the
        partnership agreement); (ii) the subscriber represents and warrants that
        it was
        not organized or reorganized for the specific purpose of acquiring the Note;
        (iii) the subscriber has the full power and authority to execute this
        Subscription Agreement on behalf of such entity and to make the representations
        and warranties made herein on its behalf; and (iv) this investment in the
        Company has been affirmatively authorized, if required, by the governing
        board
        of such entity and is not prohibited by the governing documents of the
        entity.

      

      (k)    The
        address shown under the subscriber’s signature at the end of this Subscription
        Agreement is the subscriber’s principal residence if he or she is an individual
        or its principal business address if a corporation or other entity.

      

      (l)    The
        subscriber has such knowledge and experience in financial and business matters
        as to be capable of evaluating the merits and risks of an investment in the
        Note.

      

      (m)    The
        subscriber acknowledges that the certificates for the Note and the shares
        into
        which the Note may be converted which the subscriber will receive will contain
        a
        legend substantially as follows:

       

      THE
        SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
        STATE, AND MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED
        OF
        UNTIL A REGISTRATION STATEMENT WITH RESPECT THERETO IS DECLARED EFFECTIVE
        UNDER
        SUCH ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE
        COMPANY THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS
        IS
        AVAILABLE.

       

      
        
          
          

        

        
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      The
        subscriber further acknowledges that stop transfer orders will be placed
        upon
        the certificates for the Securities which the Note maybe converted into in
        accordance with the 1933 Act.

      

      
        
          2.    Registration
            of Securities.

           

        

      

      (a)   The
        subscriber acknowledges that the Company has agreed to use its best efforts
        to
        include a portion of the shares which the Note may be converted into, or
        Securities with which the shares are exchanged into (also referred to as
        the
“Registrable Securities”) in any registration statement to be filed with the
        Securities and Exchange Commission (the “Commission”) for its own account or the
        accounts of others under the Securities Act (the “Act”) any of its equity
        securities, other than on Form S-4 or Form S-8 or their equivalents relating
        to
        shares of Common Stock to be issued solely in connection with any acquisition
        of
        any entity or business or shares of Common Stock issuable in connection with
        stock option or other employee benefit plans. The piggy back registration
        rights
        shall be subject to underwriter’s approval and other such restrictions (the
“Registration Statement”). The Company shall use its good faith efforts to keep
        such Registration Statement continuously effective as long as the delivery
        of a
        prospectus thereunder is required under the Act and its regulations, including,
        but not limited to, Rule 144 thereunder or its successor regulations (“Rule
        144”), in connection with the disposition of the Securities; provided, that it
        is agreed and acknowledged that such obligation of the Company to maintain
        the
        effectiveness of the Registration Statement shall cease upon the ability
        of the
        subscribers to sell or otherwise dispose of all of the Registrable Securities
        covered by the Registration Statement under Rule 144; provided further, that,
        notwithstanding the Company’s obligation to maintain the effectiveness of the
        Registration Statement pursuant to the immediately preceding proviso, and
        notwithstanding the duration of any Blackout Period, such obligation to maintain
        the effectiveness of the Registration Statement shall cease under all
        circumstances no later than the second anniversary of the date of the final
        Closing of the Offering (the “Final Date”).

      

      (b)    The
        Company agrees to pay all Registration Expenses in connection with the
        Registration Statement. All Selling Expenses relating to Registrable Securities
        registered on behalf of the subscriber pursuant to the Registration Statement
        shall be borne by the subscriber. For purposes of this Subscription Agreement,
        “Registration Expenses” shall mean (i) all registration, listing, qualification
        and filing fees (including NASD filing fees), (ii) fees and disbursements
        of
        counsel for the Company, (iii) accounting fees incident to any such
        registration, (iv) blue sky fees and expenses (including counsel fees in
        connection with the preparation of a Blue Sky Memorandum and legal investment
        survey and NASD filings), (v) all expenses of any persons in preparing or
        assisting in preparing, printing, distributing, mailing and delivering the
        Registration Statement, any prospectus, any underwriting agreements, transmittal
        letters, securities sales agreements, securities certificates and other
        documents relating to the performance of and compliance with this Subscription
        Agreement, and (vi) all internal expenses of the Company (including all salaries
        and expenses of officers and employees performing legal or accounting duties);
        provided, however, that Registration Expenses shall not include any Selling
        Expenses. For purposes of this Subscription Agreement, “Selling Expenses” shall
        mean underwriting discounts, selling commissions and stock transfer taxes
        applicable to the Registrable Securities registered on behalf of the subscriber
        for Note hereunder.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      (c)    The
        Registration Statement will not be deemed to have become effective (and the
        related registration will not be deemed to have been effected) unless it
        has
        been declared effective by the Commission prior to a request by the subscriber
        that such Registration Statement be withdrawn; provided, however, that if,
        after
        it has been declared effective, the offering of any Registrable Securities
        pursuant to such Registration Statement is interfered with by any stop order,
        injunction or other order or requirement of the Commission or any other
        governmental agency or court.

      

      (d)    At
        any
        time or from time to time, the subscriber may elect to have its Registrable
        Securities sold in an underwritten offering and may select the investment
        banker
        or investment bankers and manager or managers that will serve as lead and
        co-managing underwriters with respect to the offering of its Registrable
        Securities, subject to the consent of the Company which shall not be
        unreasonably withheld.

      

      (e)    The
        subscriber agrees, as a condition to the registration obligations with respect
        to the subscriber provided herein, to furnish to the Company such information
        regarding the subscriber required to be included in the Registration Statement,
        the ownership of Registrable Securities by the subscriber and the proposed
        distribution by the subscriber of such Registrable Securities as the Company
        may
        from time to time reasonably request in writing.

      

      (f)    The
        subscriber agrees that, upon receipt of any notice from the Company of the
        happening of any event of the kind which the Company reasonably regards as
        requiring the subscriber to discontinue sale of the Registrable Securities
        pursuant to the Registration Statement, the subscriber will forthwith
        discontinue disposition of the Registrable Securities pursuant to the affected
        Registration Statement until the subscriber’s receipt of the copies of any
        supplemented or amended prospectus as shall be required in the reasonable
        opinion of the Company, and, if so directed by the Company, the subscriber
        will
        deliver to the Company (at the expense of the Company) all copies in its
        possession, other than permanent file copies then in the subscriber’s
        possession, of any prospectus covering such Registrable Securities which
        was
        current at the time of receipt of such notice.

      

      
        
          3.    Indemnification;
            Contribution.

           

        

      

      (a)    Indemnification
        by the Company.
        The
        Company agrees to indemnify and hold harmless each person who participates
        as an
        underwriter of the Securities pursuant to the Registration Statement, the
        subscriber and its respective partners, directors, officers and employees
        and
        each person, if any, who controls any subscriber or underwriter within the
        meaning of Section 15 of the Act or Section 20 of the Securities Exchange
        Act of
        1934, as amended (the “Exchange Act”), as follows:

      

      (i)    against
        any and all losses, liabilities, claims, damages, judgments and reasonable
        expenses whatsoever, as incurred, arising out of any untrue statement or
        alleged
        untrue statement of a material fact contained in the Registration Statement
        pursuant to which Securities were registered under the Act, including all
        documents incorporated therein by reference, or the omission or alleged omission
        therefrom of a material fact required to be stated therein or necessary to
        make
        the statements therein not misleading or arising out of any untrue statement
        or
        alleged untrue statement of a material fact contained in any prospectus,
        including all documents incorporated therein by reference, or the omission
        or
        alleged omission therefrom of a material fact necessary in order to make
        the
        statements therein, in light of the circumstances under which they were made,
        not misleading;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      (ii)    against
        any and all losses, liabilities, claims, damages, judgments and reasonable
        expenses whatsoever, as incurred, to the extent of the aggregate amount paid
        in
        settlement of any litigation, investigation or proceeding by any governmental
        agency or body, commenced or threatened, or of any other claim whatsoever
        based
        upon any such untrue statement or omission, or any such alleged untrue statement
        or omission, if such settlement is effected with the written consent of the
        Company; and

      

      (iii)    against
        any and all reasonable expense whatsoever, as incurred (including fees and
        disbursements of counsel) in investigating, preparing or defending against
        any
        litigation, investigation or proceeding by any governmental agency or body,
        commenced or threatened, in each case whether or not such person is a party,
        or
        any claim whatsoever based upon any such untrue statement or omission, or
        any
        such alleged untrue statement or omission; provided, however, that this
        indemnity agreement does not apply to the subscriber or underwriter with
        respect
        to any loss, liability, claim, damage, judgment or expense to the extent
        arising
        out of any untrue statement or alleged untrue statement of a material fact
        contained in any prospectus, or the omission or alleged omission therefrom
        of a
        material fact necessary to make the statements therein, in the light of the
        circumstances under which they were made, not misleading, in any such case
        made
        in reliance upon and in conformity with written information furnished to
        the
        Company by the subscriber or underwriter expressly for use in a Registration
        Statement (or any amendment thereto) or any prospectus (or any amendment
        or
        supplement thereto); and provided further, in the case of an offering that
        is
        not an underwritten offering, the Company will not be liable to the subscriber
        under the indemnity agreement in this Section 3(a) for any such loss, claim,
        damage, liability (or action or proceeding in respect thereof) or expense
        that
        arises out of the subscriber’s failure to send or give a copy of the final
        prospectus (as its may then be amended or supplemented) to the person asserting
        an untrue statement or alleged untrue statement or omission or alleged omission
        at or prior to the written confirmation of the sale of the Securities to
        such
        person if such statement or omission was corrected in such final prospectus
        (as
        it may then be amended or supplemented) and the Company has previously furnished
        copies thereof in accordance with this Subscription Agreement.

      

      (b)    Indemnification
        by the Subscriber.
        The
        subscriber agrees to indemnify and hold harmless the Company, and each
        underwriter and each of their respective partners, directors, officers and
        employees (including each officer of the Company who signed the Registration
        Statement), and each person, if any, who controls the Company or any underwriter
        within the meaning of Section 15 of the Act, against any and all losses,
        liabilities, claims, damages, judgments and expenses described in the indemnity
        contained in paragraph (a) of this Section (provided that any settlement
        of the
        type described therein is effected with the written consent of the subscriber),
        as incurred, but only with respect to untrue statements or alleged untrue
        statements of a material fact contained in any prospectus or the omissions
        or
        alleged omissions therefrom of a material fact necessary to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading, in any such case made in reliance upon and in conformity with
        written information furnished to the Company by the subscriber expressly
        for use
        in such Registration Statement (or any amendment thereto) or such prospectus
        (or
        any amendment or supplement thereto).

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      (c)    Conduct
        of Indemnification Proceedings.
        Each
        indemnified party or parties shall give reasonably prompt notice to each
        indemnifying party or parties of any action or proceeding commenced against
        it
        in respect of which indemnity may be sought hereunder, but which it or they
        may
        have under this indemnity agreement, except to the extent that the indemnifying
        party is materially prejudiced by such failure to give notice. If the
        indemnifying party or parties so elects within a reasonable time after receipt
        of such notice, the indemnifying party or parties may assume the defense
        of such
        action or proceeding at such indemnifying party’s or parties’ expense with
        counsel chosen by the indemnifying party or parties and approved by the
        indemnified party defendant in such action or proceeding, which approval
        shall
        not be unreasonably withheld; provided, however, that, if such indemnified
        party
        or parties determines in good faith that a conflict of interest exists and
        that
        therefore it is advisable for such indemnified party or parties to be
        represented by separate counsel or that, upon advice of counsel, there may
        be
        legal defenses available to it or them which are different from or in addition
        to those available to the indemnifying party, then the indemnifying party
        or
        parties shall not be entitled to assume such defense and the indemnified
        party
        or parties shall be entitled to separate counsel (limited in each jurisdiction
        to one counsel for all underwriters and another counsel for all other
        indemnified parties under this Subscription Agreement) at the indemnifying
        party’s or parties’ expense. If an indemnifying party or parties is not so
        entitled to assume the defense of such action or does not assume such defense,
        after having received the notice referred to in the first sentence of this
        paragraph, the indemnifying party or parties will pay the reasonable fees
        and
        expenses of counsel for the indemnified party or parties (limited in each
        jurisdiction to one counsel for all underwriters and another counsel for
        all
        other indemnified parties under this Subscription Agreement). No indemnifying
        party or parties will be liable for any settlement effected without the written
        consent of such indemnifying party or parties, which consent shall not be
        unreasonably withheld. If an indemnifying party is entitled to assume, and
        assumes, the defense of such action or proceeding in accordance with this
        paragraph, such indemnifying party or parties shall not, except as otherwise
        provided in this subsection (c), be liable for any fees and expenses of counsel
        for the indemnified parties incurred thereafter in connection with such action
        or proceeding.

      

      (d)   Contribution.

      

      (i)    In
        order
        to provide for just and equitable contribution in circumstances in which
        the
        indemnity agreement provided for in this Section is for any reason held to
        be
        unenforceable by the indemnified parties although applicable in accordance
        with
        its terms in respect of any losses, liabilities, claims, damages, judgments
        and
        expenses suffered by an indemnified party referred to therein, each applicable
        indemnifying party, in lieu of indemnifying such indemnified party, shall
        contribute to the amount paid or payable by such indemnified party as a result
        of such losses, liabilities, claims, damages, judgments and expenses in such
        proportion as is appropriate to reflect the relative fault of the Company,
        on
        the one hand, and of the subscriber (including, in each case, that of their
        respective officers, directors, employees and agents), on the other, in
        connection with the statements or omissions which resulted in such losses,
        liabilities, claims, damages, judgments or expenses, as well as any other
        relevant equitable considerations. The relative fault of the Company, on
        the one
        hand, and of the subscriber (including, in each case, that of their respective
        officers, directors, employees and agents), on the other, shall be determined
        by
        reference to, among other things, whether the untrue or alleged untrue statement
        of a material fact or the omission or alleged omission to state a material
        fact
        relates to information supplied by the Company, on the one hand, or by or
        on
        behalf of the Holder, on the other, and the parties’ relative intent, knowledge,
        access to information and opportunity to correct or prevent such statement
        or
        omission. The amount paid or payable by a party as a result of the losses,
        liabilities, claims, damages, judgments and expenses referred to above shall
        be
        deemed to include, subject to the limitations set forth in paragraph (c)
        of this
        Section, any legal or other fees or expenses reasonably incurred by such
        party
        in connection with investigating or defending any action or claim.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      (ii)    The
        Company and the subscriber agree that it would not be just and equitable
        if
        contribution pursuant to this paragraph (d) were determined by pro rata
        allocation or by any other method of allocation which does not take account
        of
        the equitable considerations referred to in sub-paragraph (i) above.
        Notwithstanding the provisions of this paragraph (d), in the case of
        distributions to the public, the subscriber shall not be required to contribute
        any amount in excess of the amount by which (A) the total price at which
        the
        Securities sold by the subscriber and distributed to the public were offered
        to
        the public exceeds (B) the amount of any damages which the subscriber has
        otherwise been required to pay by reason of such untrue or alleged untrue
        statement or omission. No person guilty of fraudulent misrepresentation (within
        the meaning of Section 11(f) of the Act) shall be entitled to contribution
        from
        any person who was not guilty of such fraudulent misrepresentation.

      

      (iii)    For
        purposes of this Section, each person, if any, who controls the subscriber
        or an
        underwriter within the meaning of Section 15 of the Act (and their respective
        partners, directors, officers and employees) shall have the same rights to
        contribution as the subscriber or underwriter; and each director of the Company,
        each officer of the Company who signed the Registration Statement and each
        person, if any, who controls the Company within the meaning of Section 15
        of the
        Act shall have the same rights to contribution as the Company.

      

      
        	 	
                4.

              	
                The
                  subscriber expressly acknowledges and agrees that the Company is
                  relying
                  upon the subscriber’s representations
                  herein.

              

      

      

      
        	 	
                5.

              	
                The
                  subscriber does not have any direct or indirect affiliation with
                  any
                  member of the National Association of Registrable Securities Dealers,
                  Inc.

              

      

      

      
        	 	
                6.

              	
                The
                  subscriber acknowledges that the subscriber understands the meaning
                  and
                  legal consequences of the representations and warranties which
                  are
                  contained herein and hereby agrees to indemnify, save and hold
                  harmless
                  the Company, and its respective officers, directors, partners,
                  employees,
                  agents, and attorneys, from and against any and all claims or actions
                  arising out of a breach of any representation, warrant or acknowledgment
                  of the subscriber contained herein. Such indemnification shall
                  be deemed
                  to survive any purchase of the Note and to include not only the
                  specific
                  liabilities, losses, damages or obligations with respect to which
                  such
                  indemnity is provided, but also all reasonable costs, expenses,
                  counsel
                  fees and expenses of settlement relating thereto, whether or not
                  any such
                  liabilities, losses, damages or obligations shall have been reduced
                  to
                  judgment.

              

      

      

      
        	 	
                7.

              	
                The
                  Company has been duly and validly incorporated and is validly existing
                  and
                  in good standing as a corporation under the laws of the State of
                  Delaware.
                  The Company has all requisite power and authority, and all necessary
                  authorizations, approvals and orders required as of the date hereof
                  to own
                  its properties and conduct its business and to enter into this
                  Subscription Agreement and to be bound by the provisions and conditions
                  hereof or therein.

              

      

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      
        	 	
                8.

              	
                If
                  the Company utilizes the services of registered broker-dealers,
                  it may pay
                  reasonable and customary fees in connection with the sales by the
                  broker.

              

      

      

      
        	 	
                9.

              	
                Except
                  as otherwise specifically provided for hereunder, no party shall
                  be deemed
                  to have waived any of his or her or its rights hereunder or under
                  any
                  other agreement, instrument or papers signed by any of them with
                  respect
                  to the subject matter hereof unless such waiver is in writing and
                  signed
                  by the party waiving said right. Except as otherwise specifically
                  provided
                  for hereunder, no delay or omission by any party in exercising
                  any right
                  with respect to the subject matter hereof shall operate as a waiver
                  of
                  such right or of any such other right. A waiver on any one occasion
                  with
                  respect to the subject matter hereof shall not be construed as
                  a bar to,
                  or waiver of, any right or remedy on any future occasion. All rights
                  and
                  remedies with respect to the subject matter hereof, whether evidenced
                  hereby or by any other agreement, instrument, or paper, will be
                  cumulative, and may be exercised separately or
                  concurrently.

              

      

      

      
        	 	
                10.

              	
                The
                  parties have not made any representations or warranties with respect
                  to
                  the subject matter hereof not set forth herein, and this Subscription
                  Agreement, together with any instruments executed simultaneously
                  herewith,
                  constitutes the entire agreement between them with respect to the
                  subject
                  matter hereof. All understandings and agreements heretofore entered
                  into
                  between the parties with respect to the subject matter hereof are
                  merged
                  in this Subscription Agreement and any such instrument, which alone
                  fully
                  and completely expresses their
                  agreement.

              

      

      

      
        	 	
                11.

              	
                This
                  Subscription Agreement may not be changed, modified, extended,
                  terminated
                  or discharged orally, but only by an agreement in writing, which
                  is signed
                  by all of the parties to this Subscription
                  Agreement.

              

      

      

      
        	 	
                12.

              	
                The
                  parties agree to execute any and all such other and further instruments
                  and documents, and to take any and all such further actions reasonably
                  required to effectuate this Subscription Agreement and the intent
                  and
                  purposes hereof.

              

      

      

      
        	 	
                13.

              	
                If
                  any provision or any portion of any provision of this Subscription
                  Agreement or the application of any such provision or any portion
                  thereof
                  to any person or circumstance shall be held invalid or unenforceable,
                  the
                  remaining portion of such provision not held invalid or unenforceable
                  to
                  any person or circumstance shall not be affected
                  thereby.

              

      

      

      
        	 	
                14.

              	
                This
                  Subscription Agreement may be executed in one or more counterparts,
                  each
                  of which shall be deemed an original but all of which together
                  shall
                  constitute one and the same instrument. The execution of this Subscription
                  Agreement may be by actual or facsimile
                  signature.

              

      

      

      
        	 	
                15.

              	
                This
                  Subscription Agreement shall be governed by and construed in accordance
                  with the internal laws of the State of New York without giving
                  effect to
                  conflicts of law principles and the subscriber hereby consents
                  to the
                  jurisdiction of the courts of the State of New York and/or the
                  United
                  States District Court located in the State of New
                  York.

              

      

      

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      AMOUNT
        OF NOTE PURCHASED: $            

       

      Manner
        in
        Which Title is to be Held: (check one)

      

      1.    _____ Individual

      2.    _____ Joint
        Tenants with Right of Survivorship (both parties must sign)

      3.    _____ Married
        with Separate Property

      4.    _____ Community
        Property

      5.    _____ Tenants
        in Common

      6.    _____ Corporation

      7.    _____ Partnership

      8.    _____ IRA
        of
        ___________________________________________

      9.    _____  
        Trust,
        dated opened _____________

      10.    
_____ Keogh
        of
        __________________________________________

      11.    
        _____   As
        a
        Custodian for __________________________________________________
 
        under the Uniform Gift to Minors Act of the State of
        _______________________

      12.    
_____ Other
        (please indicate)

      

      
      

      

        
          	
                  INDIVIDUAL
                    INVESTORS

                	
                  ENTITY
                    INVESTORS

                
	 	 
	
                  ___________________________________

                	
                  ____________________________________

                
	
                  Signature
                    (Individual)

                	
                  Name
                    of Entity, if any

                
	 	 
	 	
                  ____________________________________

                
	 	
                  Signature

                
	 	 
	 	 
	
                  ___________________________________

                	
                  Its
                    _________________________________

                
	
                  Signature
                    (all record holders should sign)

                	
                  Title

                
	 	 
	
                  ___________________________________

                	
                  ____________________________________

                
	 	 
	
                  Name(s)
                    Typed or Printed

                	
                  Name
                    Typed or Printed

                
	 	 
	
                  Address
                    to Which Correspondence

                	
                  Address
                    to Which Correspondence

                
	
                  Should
                    be Directed

                	
                  Should
                    be Directed

                
	 	 
	
                  ___________________________________

                	
                  ____________________________________

                
	 	 
	
                  ___________________________________

                	
                  ____________________________________

                
	 	 
	
                  ___________________________________

                	
                  ____________________________________

                
	
                  City,
                    State and Zip Code

                	
                  City,
                    State and Zip Code

                
	 	 
	
                  ___________________________________

                	
                  ____________________________________

                
	
                  Social
                    Security Number

                	
                  Tax
                    Identification Number

                

        

         

        
          The
            foregoing subscription is accepted this ______ day of _______________,
            2005, on
            behalf of NaturalNano, Inc.

        

        

      

    

    
      ___________________________________

       

      

      By:
        _______________________________

      Name:
        Michael Riedlinger

      Title:
        President

      
        
          
          

        

        
          14Exhibit
        4.5

       

      NEITHER
        THESE WARRANTS NOR THE COMMON STOCK ISSUABLE UPON EXERCISE OF THESE WARRANTS
        HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
        OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR
        TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
        SECURITIES UNDER THE ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS
        AVAILABLE.

      

      

      
        	
                2,250,000
                  Warrants

              	
                November
                  29, 2005

              

      

      
 

      NATURALNANO
        INC.

       

      WARRANTS

       

      NaturalNano
        Inc., a Nevada corporation (“NaturalNano”),
        certifies that, for value received, SBI USA, LLC (“SBI”), or registered assigns
        (the “Holder”),
        is the owner of Two Million Two Hundred Fifty Thousand (2,250,000) Warrants
        of
        NaturalNano (the “Warrants”).
        Each Warrant entitles the Holder to purchase from NaturalNano at any time
        prior
        to the Expiration Date (as defined below) one share of the common stock of
        NaturalNano (the “Common
        Stock”)
        for $0.23 per share (the “Exercise
        Price”),
        on the terms and conditions hereinafter provided. The Exercise Price and
        the
        number of shares of Common Stock purchasable upon exercise of each Warrant
        are
        subject to adjustment as provided in this Certificate. 

      

      1. Vesting;
        Expiration Date; Exercise

      

      1.1 Vesting.
        The Warrants shall vest and become exercisable as of the date of this
        Certificate.

      

      1.2 Expiration
        Date. The Warrants shall expire on March 31, 2006 (the “Expiration
        Date”).

      

      1.3 Manner
        of Exercise. The Warrants are exercisable by delivery to NaturalNano of the
        following (the “Exercise
        Documents”):
        (a) this Certificate (b) a written notice of election to exercise the Warrants;
        and (c) payment of the Exercise Price in cash or by check. Within three business
        days following receipt of the foregoing, NaturalNano shall execute and deliver
        to the Holder: (a) a certificate or certificates representing the aggregate
        number of shares of Common Stock purchased by the Holder, and (b) if less
        than
        all of the Warrants evidenced by this Certificate are exercised, a new
        certificate evidencing the Warrants not so exercised.

      

      1.4 Warrant
        Exercise Limitation. Notwithstanding any other provision of this Agreement,
        if as of the date of exercise NaturalNano has a class of securities registered
        under Section 12 of the Securities Exchange Act of 1934, as amended, Holder
        may
        not exercise Warrants under this Section 1 to the extent that immediately
        following such exercise Holder would beneficially own 5% or more of the
        outstanding Common Stock of NaturalNano. For this purpose, a representation
        of
        the Holder that following such exercise it would not beneficially own 5%
        or more
        of the outstanding Common Stock of NaturalNano shall be conclusive and binding
        upon NaturalNano unless the number of shares of Common Stock for which the
        Holder seeks to exercise Warrants would themselves represent 5% or more of
        the
        outstanding Common Stock of NaturalNano following such exercise.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        2. Adjustments
          of Exercise Price and Number and Kind of Conversion
          Shares

      2.1 In
        the event that NaturalNano shall at any time hereafter (a) pay a dividend
        in
        Common Stock or securities convertible into Common Stock; (b) subdivide or
        split
        its outstanding Common Stock; (c) combine its outstanding Common Stock into
        a
        smaller number of shares; then the number of shares to be issued immediately
        after the occurrence of any such event shall be adjusted so that the Holder
        thereafter may receive the number of shares of Common Stock it would have
        owned
        immediately following such action if it had exercised the Warrants immediately
        prior to such action and the Exercise Price shall be adjusted to reflect
        such
        proportionate increases or decreases in the number of shares.

      

      2.2 In
        case
        of any reclassification, capital reorganization, consolidation, merger, sale
        of
        all or substantially all of NaturalNano’s assets or any other change in the
        Common Stock of NaturalNano, other than as a result of a subdivision,
        combination, or stock dividend provided for in Section 2.1 (any of which,
        a
“Change Event”), then, as a condition of such Change Event, lawful provision
        shall be made, and duly executed documents evidencing the same from NaturalNano
        or its successor shall be delivered to the Holder, so that the Holder shall
        have
        the right at any time prior to the expiration of the Warrants to purchase,
        at a
        total price equal to that payable upon the exercise of the Warrants, the
        kind
        and amount of shares of stock and other securities and property receivable
        in
        connection with such Change Event by a holder of the same number of shares
        of
        Common Stock as were purchasable by the Holder immediately prior to such
        Change
        Event. In any such case appropriate provisions shall be made with respect
        to the
        rights and interest of the Holder so that the provisions hereof shall thereafter
        be applicable with respect to any shares of stock or other securities and
        property deliverable upon exercise hereof, and appropriate adjustments shall
        be
        made to the Exercise Price per share payable hereunder, provided the Exercise
        Price for all the Warrants shall remain the same. The
        provisions of this Section 2.2 shall similarly apply to successive
        reclassifications, capital reorganizations, mergers, consolidations, sales
        or
        other transfers. Notwithstanding the foregoing, in the event NaturalNano
        enters
        into a reverse merger (the “Reverse
        Merger”)
        with a
        corporation that is obligated to file reports under Section 13 of the Securities
        Exchange Act of 1934, as amended (the “Public
        Company”),
        or a
        subsidiary of such corporation, pursuant to which NaturalNano’s shareholders
        will acquire control of the Public Company, each Warrant shall thereafter
        entitle the Holder to purchase one share of the Common Stock of the Public
        Company at the Exercise Price in effect immediately prior to the Reverse
        Merger,
        notwithstanding that in the Reverse Merger outstanding shares of Common Stock
        of
        NaturalNano may be exchanged for more than one share of the Public Company’s
        Common Stock.

      

      3. Reservation
        of Shares. NaturalNano
        shall at all times reserve and keep available out of its authorized but unissued
        shares of Common Stock, such number of shares of Common Stock as shall from
        time
        to time be issuable upon exercise of the Warrants. If at any time the number
        of
        authorized but unissued shares of Common Stock shall not be sufficient to
        permit
        the exercise of the Warrants, NaturalNano shall promptly seek such corporate
        action as may be necessary to increase its authorized but unissued shares
        of
        Common Stock to such number of shares as shall be sufficient for such
        purpose.

       

      
        
          
          

        

        
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        4. Certificate
          as to Adjustments. In
          each case of any adjustment in the Exercise Price, or number or type of
          shares
          issuable upon exercise of these Warrants, the Chief Financial Officer of
          NaturalNano shall compute such adjustment in accordance with the terms
          of these
          Warrants and prepare a certificate setting forth such adjustment and showing
          in
          detail the facts upon which such adjustment is based, including a statement
          of
          the adjusted Exercise Price. NaturalNano shall promptly send (by facsimile
          and
          by either first class mail, postage prepaid or overnight delivery) a copy
          of
          each such certificate to the Holder.

      5. Loss
        or Mutilation. Upon
        receipt of evidence reasonably satisfactory to NaturalNano of the ownership
        of
        and the loss, theft, destruction or mutilation of this Certificate, and of
        indemnity reasonably satisfactory to it, and (in the case of mutilation)
        upon
        surrender and cancellation of these Warrants, NaturalNano will execute and
        deliver in lieu thereof a new Certificate of like tenor as the lost, stolen,
        destroyed or mutilated Certificate.

      

      6. Representations
        and Warranties of NaturalNano. NaturalNano
        hereby represents and warrants to Holder that:

      

      6.1 Due
        Authorization. All corporate action on the part of NaturalNano, its
        officers, directors and shareholders necessary for (a) the authorization,
        execution and delivery of, and the performance of all obligations of NaturalNano
        under, these Warrants, and (b) the authorization, issuance, reservation for
        issuance and delivery of all of the Common Stock issuable upon exercise of
        these
        Warrants, has been duly taken. These Warrants constitute a valid and binding
        obligation of NaturalNano enforceable in accordance with their terms, subject,
        as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
        reorganization and similar laws affecting creditors’ rights generally and to
        general equitable principles.

      

      6.2 Organization.
        NaturalNano is a corporation duly organized, validly existing and in good
        standing under the laws of the State of Nevada and has all requisite corporate
        power to own, lease and operate its property and to carry on its business
        as now
        being conducted and as currently proposed to be conducted.

      

      6.3 Valid
        Issuance of Stock. Any shares of Common Stock issued upon exercise of the
        Warrants in accordance with their terms will be duly and validly issued,
        fully
        paid and non-assessable.

      

      6.4 Governmental
        Consents. All consents, approvals, orders, authorizations or registrations,
        qualifications, declarations or filings with any federal or state governmental
        authority on the part of NaturalNano required in connection with the issuance
        of
        the Warrants have been obtained.

      

      7. Representations
        and Warranties of SBI.
        SBI, and any subsequent holder of Warrants, by its acceptance hereof, represents
        and warrants to NaturalNano that:

      

      7.1 It
        is acquiring the Warrants for its own account, for investment purposes
        only.

      

      7.2 It
        understands that an investment in the Warrants and in the shares of Common
        Stock
        issuable upon exercise of the Warrants involves a high degree of risk, and
        it
        has the financial ability to bear the economic risk of this investment in
        the
        Warrants and such shares, including a complete loss of such investment. It
        has
        adequate means for providing for its current financial needs and has no need
        for
        liquidity with respect to this investment.

       

      
        
          
          

        

        
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      7.3 It
        has such knowledge and experience in financial and business matters that
        it is
        capable of evaluating the merits and risks of an investment in the Warrants
        and
        in the shares of Common Stock issuable upon exercise of the Warrants and
        in
        protecting its own interest in connection with such transactions.

      

      7.4 It
        understands that neither the Warrants nor the shares of Common Stock issuable
        upon exercise of the Warrants have been registered under the Securities Act
        of
        1933, as amended (the “Securities
        Act”)
        or under any state securities laws. It is familiar with the provisions of
        the
        Securities Act and Rule 144 thereunder and understands that the restrictions
        on
        transfer on the Warrants and on the shares of Common Stock issuable upon
        exercise of the Warrants may result in it being required to hold the Warrants
        or
        such shares for an indefinite period of time.

      

      7.5 It
        agrees not to sell, transfer, assign, gift, create a security interest in,
        or
        otherwise dispose of, with or without consideration (collectively, “Transfer”)
        any of the Warrants or any of the shares of Common Stock issuable upon exercise
        of the Warrants except pursuant to an effective registration statement under
        the
        Securities Act or an exemption from registration. As a further condition
        to any
        such Transfer, except in the event that such Transfer is made pursuant to
        an
        effective registration statement under the Securities Act, if in the reasonable
        opinion of counsel to NaturalNano any such Transfer would not be exempt from
        the
        registration and prospectus delivery requirements of the Securities Act,
        NaturalNano may require the Holder and the contemplated transferee to furnish
        NaturalNano with letters setting forth such information and agreements as
        may be
        reasonably requested by NaturalNano to ensure compliance with the Securities
        Act.

      

      8. Notices
        of Record Date

      

      In
        the event:

      

      8.1 NaturalNano
        shall take a record of the holders of its Common Stock (or other stock or
        securities at the time receivable upon the exercise of these Warrants), for
        the
        purpose of entitling them to receive any dividend or other distribution,
        or any
        right to subscribe for or purchase any shares of stock of any class or any
        other
        securities or to receive any other right; or

      

      8.2 of
        any consolidation or merger of NaturalNano with or into another corporation,
        any
        capital reorganization of NaturalNano, any reclassification of the capital
        stock
        of NaturalNano, or any conveyance of all or substantially all of the assets
        of
        NaturalNano to another corporation in which holders of NaturalNano’s stock are
        to receive stock, securities or property of another corporation; or

      

      8.3 of
        any voluntary dissolution, liquidation or winding-up of NaturalNano;
        or

      

      8.4 of
        any redemption or conversion of all outstanding Common Stock;

      

      then,
        and in each such case, NaturalNano will mail or cause to be mailed to the
        Holder
        a notice specifying, as the case may be, (a) the date on which a record is
        to be
        taken for the purpose of such dividend, distribution or right, or (b) the
        date
        on which such reorganization, reclassification, consolidation, merger,
        conveyance, dissolution, liquidation, winding-up, redemption or conversion
        is to
        take place, and the time, if any is to be fixed, as of which the holders
        of
        record of Common Stock (or such stock or securities as at the time are
        receivable upon the exercise of these Warrants), shall be entitled to exchange
        their shares of Common Stock (or such other stock or securities), for securities
        or other property deliverable upon such reorganization, reclassification,
        consolidation, merger, conveyance, dissolution, liquidation or winding-up.
        NaturalNano shall use all reasonable efforts to ensure such notice shall
        be
        delivered at least five days prior to the date therein specified. 

       

      
        
          
          

        

        
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      9.    Registration
        Rights.
        

      

      9.1 Definitions.
        For purposes of this Section 9, the following terms shall have the meanings
        set
        forth below:

      

      9.1.1 A
        “Blackout
        Event”
        means any of the following: (a) the possession by NaturalNano of material
        information that is not ripe for disclosure in a registration statement or
        prospectus, as determined reasonably and in good faith by the Chief Executive
        Officer or the Board of Directors of NaturalNano or that disclosure of such
        information in the Registration Statement or the prospectus constituting
        a part
        thereof would be materially detrimental to the business and affairs of
        NaturalNano; or (b) any material engagement or activity by NaturalNano which
        would, in the reasonable and good faith determination of the Chief Executive
        Officer or the Board of Directors of NaturalNano, be materially adversely
        affected by disclosure in a registration statement or prospectus at such
        time.

      

      9.1.2 “Exchange
        Act”
        shall mean the Securities Exchange Act of 1934, as amended.

      

      9.1.3 “Included
        Shares”
        shall mean any Registrable Shares included in a Registration.

      

      9.1.4 “Registrable
        Shares”
        shall mean the shares of Common Stock (or such stock or securities as at
        the
        time are receivable upon the exercise of these Warrants) issuable upon exercise
        of the Warrants and any other warrants and or other securities issued to
        SBI in
        connection with performing investor relations services for NaturalNano, and
        shares or securities issued as a result of stock split, stock dividend or
        reclassification of such shares.

      

      9.1.5 “Registration”
        shall mean a registration of securities under the Securities Act. 

      

      9.1.6 “Registration
        Period”
        with respect to any Registration Statement shall mean the period commencing
        the
        effective date of the Registration Statement and ending upon withdrawal or
        termination of the Registration Statement.

      

      9.1.7 “Registration
        Statement”
        shall mean a registration statement, as amended from time to time, filed
        with
        the SEC in connection with a Registration.

      

      9.1.8 “SEC”
        shall mean the Securities and Exchange Commission.

      

      9.2 Piggyback
        Registration. Unless the Registrable Shares are then included in a
        Registration Statement or can be sold under the provisions of Rule 144 without
        limitation as to volume, whether pursuant to Rule 144(k) or otherwise, if
        NaturalNano shall determine to register any Common Stock under the Securities
        Act for sale in connection with a public offering of Common Stock (other
        than
        pursuant to an employee benefit plan or in connection with a merger, acquisition
        or similar transaction), NaturalNano will give written notice thereof to
        Holder
        and will include in such Registration Statement any of the Registrable Shares
        which Holder may request be included by a writing delivered to NaturalNano
        within 15 days after the notice given by NaturalNano to Holder; provided,
        however, that if the offering is to be firmly underwritten, and the
        representative of the underwriters of the offering refuse in writing to include
        in the offering all of the shares of Common Stock requested by NaturalNano
        and
        others, the shares to be included shall be allocated first to NaturalNano
        and
        any shareholder who initiated such Registration and then among the others
        (including Holder) based on the respective number of shares of Common Stock
        held
        by such persons. If NaturalNano decides not to, and does not, file a
        Registration Statement with respect to such Registration, or after filing
        determines to withdraw the same before the effective date thereof, NaturalNano
        will promptly so inform Holder, and NaturalNano will not be obligated to
        complete the registration of the Included Shares included therein. 

       

      
        
          
          

        

        
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      9.3 Certain
        Covenants. In connection with any Registration: 

      

      9.3.1 NaturalNano
        shall take all lawful action such that the Registration Statement, any amendment
        thereto and the prospectus forming a part thereof do not contain an untrue
        statement of a material fact or omit to state a material fact required to
        be
        stated therein or necessary to make the statements therein, in light of the
        circumstances under which they are made, not misleading. Upon becoming aware
        of
        the occurrence of any event or the discovery of any facts during the
        Registration Period that make any statement of a material fact made in the
        Registration Statement or the related prospectus untrue in any material respect
        or which material fact is omitted from the Registration Statement or related
        prospectus that requires the making of any changes in the Registration Statement
        or related prospectus so that it will not contain any untrue statement of
        a
        material fact or omit to state a material fact necessary to make the statements
        therein, in light of the circumstances under which they are made, not misleading
        (taking into account any prior amendments or supplements), NaturalNano shall
        promptly notify Holder, and, subject to the provisions of Section 9.4, as
        soon
        as reasonably practicable prepare (but, subject to Section 9.4, in no event
        more
        than five business days in the case of a supplement or seven business days
        in
        the case of a post-effective amendment) and file with the SEC a supplement
        or
        post-effective amendment to the Registration Statement or the related prospectus
        or file any other required document so that, as thereafter delivered to a
        purchaser of Shares from Holder, such prospectus will not contain any untrue
        statement of a material fact or omit to state a material fact necessary to
        make
        the statements therein, in light of the circumstances under which they were
        made, not misleading.

      

      9.3.2 At
        least three business days prior to the filing with the SEC of the Registration
        Statement (or any amendment thereto) or the prospectus forming a part thereof
        (or any supplement thereto), NaturalNano shall provide draft copies thereof
        to
        Holder and shall consider incorporating into such documents such comments
        as
        Holder (and its counsel) may propose to be incorporated therein. Notwithstanding
        the foregoing, no prospectus supplement need be delivered in draft form to
        Holder.

      

      9.3.3 NaturalNano
        shall promptly notify Holder upon the occurrence of any of the following
        events
        in respect of the Registration Statement or the prospectus forming a part
        thereof: (a) the receipt of any request for additional information from the
        SEC
        or any other federal or state governmental authority, the response to which
        would require any amendments or supplements to the Registration Statement
        or
        related prospectus; (b) the issuance by the SEC or any other federal or state
        governmental authority of any stop order suspending the effectiveness of
        the
        Registration Statement or the initiation of any proceedings for that purpose;
        or
        (c) the receipt of any notification with respect to the suspension of the
        qualification or exemption from qualification of any of the Shares for sale
        in
        any jurisdiction or the initiation or threatening of any proceeding for such
        purpose.

      

      9.3.4 NaturalNano
        shall furnish to Holder with respect to the Included Shares registered under
        the
        Registration Statement (and to each underwriter, if any, of such Included
        Shares) such number of copies of prospectuses and such other documents as
        Holder
        may reasonably request, in order to facilitate the public sale or other
        disposition of all or any of the Included Shares by Holder pursuant to the
        Registration Statement.

       

      
        
          
          

        

        
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      9.3.5 In
        connection with any registration pursuant to Section 9.2, NaturalNano shall
        file
        or cause to be filed such documents as are required to be filed by NaturalNano
        for normal Blue Sky clearance in states specified in writing by Holder;
provided,
        however,
        that NaturalNano shall not be required to qualify to do business or consent
        to
        service of process in any jurisdiction in which it is not now so qualified
        or
        has not so consented.

      

      9.3.6 NaturalNano
        shall bear and pay all expenses incurred by it and Holder (other than
        underwriting discounts, brokerage fees and commissions and fees and expenses
        of
        more than one law firm) in connection with the Registration of the Registrable
        Shares pursuant to the Registration Statement; provided, however, that
        NaturalNano shall not be obligated to pay the fees and expenses of more than
        one
        legal counsel who shall serve as counsel to all selling shareholders in such
        Registration. 

      

      9.3.7 NaturalNano
        shall require each legal opinion and accountant’s “cold comfort” letter in
        connection with the Registration, if any, to be rendered to Holder as well
        as
        NaturalNano and/or its Board of Directors. 

      

      9.3.8 As
        a condition to including Registrable Shares in a Registration Statement,
        Holder
        must provide to NaturalNano such information regarding itself, the Registrable
        Shares held by it and the intended method of distribution of such Included
        Shares as shall be required to effect the registration of the Included Shares
        and, if the offering is being underwritten, Holder must provide such powers
        of
        attorney, indemnities and other documents as may be reasonably requested
        by the
        managing underwriter.

      

      9.3.9 Following
        the effectiveness of a Registration Statement, upon receipt from NaturalNano
        of
        a notice that such Registration Statement contains an untrue statement of
        material fact or omits to state any material fact required to be stated therein
        or necessary to make the statements therein not misleading in light of the
        circumstances under which they were made, Holder will immediately discontinue
        disposition of Included Shares pursuant to the Registration Statement until
        NaturalNano notifies Holder that it may resume sales of Included Shares and,
        if
        necessary, provides to Holder copies of the supplemental or amended prospectus.
        

      

      9.4 Blackout
        Event. NaturalNano shall not be obligated to file a post-effective amendment
        or supplement to the Registration Statement or the prospectus constituting
        a
        part thereof during the continuance of a Blackout Event; provided, however,
        that
        no Blackout Event may be deemed to exist for more than 60 days. Without the
        express written consent of Holder, if required to permit the continued sale
        of
        Shares by Holder, a post-effective amendment or supplement to Registration
        Statement or the prospectus constituting a part thereof must be filed no
        later
        than the 61st
        day following commencement of a Blackout Event.

      

      9.5 Rule
        144. With a view to making available to Holder the benefits of Rule 144,
        NaturalNano agrees, until such time as Holder can sell all remaining Registrable
        Shares under the provisions Rule 144(k), to:

      

      9.5.1.1 comply
        with the provisions of paragraph (c)(1) of Rule 144; and

      

      
        
          
          

        

        
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        9.5.1.2 file
          with the SEC in a timely manner all reports and other documents required
          to be
          filed by NaturalNano pursuant to Section 13 or 15(d) under the Exchange
          Act;
          and, if at any time it is not required to file such reports but in the
          past had
          been required to or did file such reports, it will, upon the request of
          a
          Purchaser, make available other information as required by, and so long
          as
          necessary to permit sales of its Shares pursuant to, Rule
          144.

      9.6 
        NaturalNano Indemnification. In connection with any Registration covering
        Included Shares, NaturalNano agrees to indemnify and hold harmless Holder,
        and
        its officers, directors and agents (including broker or
        underwriter selling Included Shares for Holder), and each person, if any,
        who
        controls Holder within the meaning of Section 15 of the Securities Act or
        Section 20 of the Exchange Act from and against any and all losses, claims,
        damages and liabilities caused by (a) any violation or alleged violation
        by
        NaturalNano of the Securities Act, Exchange Act, any state securities laws
        or
        any rule or regulation promulgated under the Securities Act, Exchange Act
        or any
        state securities laws, (b) any untrue statement or alleged untrue statement
        of a
        material fact contained in any registration statement or prospectus relating
        to
        the Included Shares (as amended or supplemented if NaturalNano shall have
        furnished any amendments or supplements thereto) or any preliminary prospectus,
        or (c) caused by any omission or alleged omission to state therein a material
        fact required to be stated therein or necessary to make the statements therein
        not misleading in light of the circumstances under which they were made,
        except
        insofar as such losses, claims, damages or liabilities are caused by any
        such
        untrue statement or omission or alleged untrue statement or omission based
        upon
        information furnished in writing to NaturalNano by Holder or on Holder’s behalf
        expressly for use therein.

      

      9.7 Holder
        Indemnification. Holder, by requesting that Registrable Shares be included
        in a Registration, agrees to indemnify and hold harmless NaturalNano, its
        officers, directors and agents and each person, if any, who controls NaturalNano
        within the meaning of either Section 15 of the Securities Act or Section
        20 of
        the Exchange Act to the same extent as the indemnity from NaturalNano to
        Holder
        set forth in Section 9.6, but only with respect to information furnished
        or
        required to be furnished in writing by Holder or on Holder’s behalf expressly
        for use in any registration statement or prospectus relating to the Registrable
        Shares, or any amendment or supplement thereto, or any preliminary prospectus.
        

      

      9.8 Indemnification
        Procedures. In case any proceeding (including any governmental
        investigation) shall be instituted involving any person in respect of which
        indemnity may be sought pursuant to this Section 9, such person (an
“Indemnified
        Party”)
        shall promptly notify the person against whom such indemnity may be sought
        (the
“Indemnifying
        Party”)
        in writing and the Indemnifying Party shall assume the defense thereof,
        including the employment of counsel reasonably satisfactory to such Indemnified
        Party, and shall assume the payment of all fees and expenses; provided that
        the
        failure of any Indemnified Party so to notify the Indemnifying Party shall
        not
        relieve the Indemnifying Party of its obligations hereunder except to the
        extent
        (and only to the extent that) that the Indemnifying Party is materially
        prejudiced by such failure to notify. In any such proceeding, any Indemnified
        Party shall have the right to retain its own counsel, but the fees and expenses
        of such counsel shall be at the expense of such Indemnified Party unless
        (a) the
        Indemnifying Party and the Indemnified Party shall have mutually agreed to
        the
        retention of such counsel or (b) in the reasonable judgment of such Indemnified
        Party representation of both parties by the same counsel would be inappropriate
        due to actual or potential differing interests between them. It is understood
        that the Indemnifying Party shall not, in connection with any proceeding
        or
        related proceedings in the same jurisdiction, be liable for the reasonable
        fees
        and expenses of more than one separate firm of attorneys (in addition to
        any
        local counsel) at any time for all such Indemnified Parties (including in
        the
        case of Holder, all of its officers, directors and controlling persons) and
        that
        all such fees and expenses shall be reimbursed as they are incurred. In the
        case
        of any such separate firm for the Indemnified Parties, the Indemnified Parties
        shall designate such firm in writing to the Indemnifying Party. The Indemnifying
        Party shall not be liable for any settlement of any proceeding effected without
        its written consent (which consent shall not be unreasonably withheld or
        delayed), but if settled with such consent, or if there be a final judgment
        for
        the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
        Indemnified Parties from and against any loss or liability (to the extent
        stated
        above) by reason of such settlement or judgment. No Indemnifying Party shall,
        without the prior written consent of the Indemnified Party, effect any
        settlement of any pending or threatened proceeding in respect of which any
        Indemnified Party is or could have been a party and indemnity could have
        been
        sought hereunder by such Indemnified Party, unless such settlement includes
        an
        unconditional release of such Indemnified Party from all liability arising
        out
        of such proceeding.

       

      
        
          
          

        

        
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      9.9 Contribution.
        To the extent any indemnification by an Indemnifying Party is prohibited
        or
        limited by law, the Indemnifying Party agrees to make the maximum contribution
        with respect to any amounts for which, he, she or it would otherwise be liable
        under this Section 9 to the fullest extent permitted by law; provided, however,
        that (a) no contribution shall be made under circumstances where a party
        would
        not have been liable for indemnification under this Section 9 and (b) no
        seller
        of Registrable Securities guilty of fraudulent misrepresentation (within
        the
        meaning used in the Securities Act) shall be entitled to contribution from
        any
        party who was not guilty of such fraudulent misrepresentation.

      

      10. Nontransferability.
        SBI may not sell or transfer any Warrants to any person other than a director,
        officer, employee, manager or affiliate of SBI (or a person controlled by
        one or
        more directors, officers, employees, managers or affiliates of SBI) or to
        a
        person or entity that assists SBI in providing services to
        NaturalNano without the consent of NaturalNano.

      

      11. Severability.
        If
        any term, provision, covenant or restriction of these Warrants is held by
        a
        court of competent jurisdiction to be invalid, void or unenforceable, the
        remainder of the terms, provisions, covenants and restrictions of these Warrants
        shall remain in full force and effect and shall in no way be affected, impaired
        or invalidated.

      

      12. Notices.
        All
        notices, requests, consents and other communications required hereunder shall
        be
        in writing and shall be effective when delivered or, if delivered by registered
        or certified mail, postage prepaid, return receipt requested, shall be effective
        on the third day following deposit in United States mail: to the Holder,
        at SBI
        USA, LLC, 610 Newport Center Drive, Newport Beach, CA 92660; and if addressed
        to
        NaturalNano, at NaturalNano Inc., 150 Lucius Gordon Drive, West Henrietta,
        NY
        14586, or such other address as Holder or NaturalNano may designate in
        writing.

      

      13. No
        Rights as Shareholder. The
        Holder shall have no rights as a shareholder of NaturalNano with respect
        to the
        shares issuable upon exercise of the Warrants until the receipt by NaturalNano
        of all of the Exercise Documents. 

       

      
        
          
          

        

        
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                NaturalNano
                  Inc.

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Its:

              	
                 

              
	 	
                

              

      

       

      

      Agreed
        to and accepted by:

      

      SBI
        USA, LLC

       

      

      By:
        _____________________________
Shelly
        Singhal, Manager

       

      

      

      

      
        
          
          

        

        
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      EXHIBIT
        “A”

      NOTICE
        OF EXERCISE

      (To
        be signed only upon exercise of the Warrants)

      
 

      To:   NaturalNano
        Inc.

      

      The
        undersigned hereby elects to purchase shares of Common Stock (the
“Warrant Shares”) of NaturalNano Inc.
        (“NaturalNano”), pursuant to the terms of the enclosed warrant
        certificate (the “Certificate”). The undersigned tenders
        herewith payment of the exercise price pursuant to the terms of the Certificate.
        

      

      The
        undersigned hereby represents and warrants to, and agrees with, NaturalNano
        as
        follows: 

      

      1.    Holder
        is acquiring the Warrant Shares for its own account, for investment purposes
        only and not with a view to distribution in violation of the Securities Act
        of
        1933, as amended (the “Securities
        Act”).

      

      2.    Holder
        understands that an investment in the Warrant Shares involves a high degree
        of
        risk, and Holder has the financial ability to bear the economic risk of this
        investment in the Warrant Shares, including a complete loss of such investment.
        Holder has adequate means for providing for its current financial needs and
        has
        no need for liquidity with respect to this investment.

      

      3.    Holder
        has such knowledge and experience in financial and business matters that
        it is
        capable of evaluating the merits and risks of an investment in the Warrant
        Shares and in protecting its own interest in connection with this
        transaction.

      

      4.    Holder
        understands that the issuance of the Warrant Shares to Holder has not been
        registered under the Securities Act or under any state securities laws. Holder
        is familiar with the provisions of the Securities Act and Rule 144 thereunder
        and understands that the restrictions on transfer on the Warrant Shares may
        result in Holder being required to hold the Warrant Shares for an indefinite
        period of time unless the transfer by Holder is registered under the Securities
        Act.

      

      5.    Holder
        agrees not to sell, transfer, assign, gift, create a security interest in,
        or
        otherwise dispose of, with or without consideration (collectively, “Transfer”)
        any of the Warrant Shares except pursuant to an effective registration statement
        under the Securities Act or an exemption from registration. As a further
        condition to any such Transfer, except in the event that such Transfer is
        made
        pursuant to an effective registration statement under the Securities Act,
        if in
        the reasonable opinion of counsel to NaturalNano any Transfer of the Warrant
        Shares by the contemplated transferee thereof would not be exempt from the
        registration and prospectus delivery requirements of the Securities Act,
        NaturalNano may require the contemplated transferee to furnish NaturalNano
        with
        an investment letter setting forth such information and agreements as may
        be
        reasonably requested by NaturalNano to ensure compliance by such transferee
        with
        the Securities Act.

       

      
        
          
          

        

        
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      Each
        certificate evidencing the Warrant Shares will bear the following
        legend:

      

      “THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
        THE
        SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND
        MAY NOT BE EXERCISED, SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN
        EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR UNLESS
        AN
        EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

      

      6.    Immediately
        following this exercise of Warrants, if as of the date of exercise NaturalNano
        has a class of securities registered under Section 12 of the Securities Exchange
        Act of 1934, as amended, the undersigned will not beneficially own five percent
        (5%) or more of the then outstanding Common Stock of NaturalNano (based on
        the
        number of shares outstanding set forth in the most recent periodic report
        filed
        by NaturalNano with the Securities and Exchange Commission and any additional
        shares which have been issued since that date of which Holder is aware have
        been
        issued).

      

      

      Number
        of Warrants Exercised: ______________

      

      

      Dated:
        ____________________   

       
____________________________________

      
        
          
          

        

        
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]