Document:

DATED 8 September 2009 

TRILLIANT
EXPLORATION CORP (1) 

and 

WELLGATE
INTERNATIONAL LIMITED (2) 

	
 

	

	
AGREEMENT

 

 for the sale and purchase of shares in 

 

 BOZEL SA

	

GSC
Solicitors LLP

31-32
Ely Place

London
EC1N 6TD

Tel: 020 7822
2222

Ref:
JHB KJ

	
  

 	
  

 	
  

 	
  

 
	
 THIS
 AGREEMENT is dated 8 September 2009

 
	
  

 	
  

 	
  

 	
  

 
	
 BETWEEN:

 
	
  

 	
  

 	
  

 	
  

 
	
 (1)

 	
 TRILLIANT
 EXPLORATION CORP a company formed and
 existing under the laws of Nevada USA whose principal office is at 545 Eighth
 Avenue Suite 401 New York New York 10018, United States of America (the
 “Purchaser”); and

 
	
  

 	
  

 	
  

 	
  

 
	
 (2)

 	
 WELLGATE
 INTERNATIONAL LIMITED a Company registered under the laws of the British Virgin Islands whose
 registered office is at PO Box 3136 24 De Castro Street Wickhams Cay 1 Road
 Town Tortola British Virgin Islands (the “Seller”).

 
	
  

 	
  

 	
  

 	
  

 
	
 NOW IT IS
 AGREED as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 DEFINITIONS 

 
	
  

 	
  

 	
  

 	
  

 
	
 In this
 Agreement:

 
	
  

 	
  

 	
  

 	
  

 
	
 1.1

 	
  “Agreement” means
 this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.2

 	
  “Bozel Disclosure Letter” means
 the Disclosure Letter to be delivered by the Sellers to the Purchaser at
 Completion making disclosures against the Warranties in the agreed form;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.3

 	
  “Bozel Warrants” means
 the warrants to subscribe for shares created pursuant to various Warrant
 Instruments dated 31 January 2008 and 1 July 2008, said warrants issued to Trafalgar
 Specialised Investments Fund, Crastvell Trading Limited and others entitling
 Warrant Holders to subscribe for shares in Bozel, and which warrants, if
 fully exercised, would give Warrant Holders approximately 45% of the Sale
 Shares on a fully diluted basis;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.4

 	
  “Breach” means any
 instance of the Warranty being untrue, incorrect or misleading in any
 respect;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.5

 	
  “Certificates of Good Standing and
 Incumbency” means certificates of Good Standing and
 Incumbency, or the equivalents of such certificates, for the Company and the
 Subsidiaries and the Purchaser and its subsidiaries;

 

	
  

 	
  

 	
  

 	
  

 
	
 1.6

 	
  “Company” means,
 Bozel SA, a company organized under
 the laws of Luxembourg;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.7

 	
  “Completion” means
 completion of the sale and purchase of the Sale Shares;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.8

 	
 “Completion
 Date” means 16 September 2009;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.9

 	
  “Confidential Information” means
 all information not at present in the public domain used in or otherwise
 relating to the business, customers or financial or other affairs of the
 relevant company including, without limitation, information relating to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the
 marketing of any products or services including, without limitation, customer
 names and lists and any other details of customers, sales targets, sales
 statistics, market share statistics, prices, pricing methods, discount
 practices, market research reports and surveys, and advertising or other
 promotional materials; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 future
 projects, business development or planning, commercial relationships and
 negotiations;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.10

 	
 “Consideration”
 means the consideration for the sale and purchase of the Sale
 Shares amounting to Eighty Million Dollars ($80,000,000) to be settled by the
 issue of the Consideration Shares to be delivered to the Seller pursuant to
 the provisions of clauses 5.1 below;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.11

 	
  “Consideration Shares” means
 Common Shares in the capital of the Purchaser to the value of Eighty Million
 Dollars ($80,000,000) to be delivered to the Seller and Warrant Holders who
 have accepted the Offer to Warrant Holders and exercised their respective
 conversion rights or such lesser amount having regard to the provisions of
 Clauses 3.4 – 3.6 below based on the average volume weighted price of the
 Company’s shares during the 20 trading day period prior to Completion;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.12

 	
  “CVRD” means
 Compagnia de Vale do Rio Dolce, a company registered in Brazil;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.13

 	
  “CVRD Indemnity” means
 the Indemnity given by CVRD (known as Vale under the terms of the Original
 Acquisition Agreement);

 
	
  

 	
  

 	
  

 	
  

 
	
 1.14

 	
  “Debenture” means
 the Debenture in the agreed form to be executed by the Company to secure
 repayment of the Loan and all interest and other charges thereunder;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.15

 	
  “Dollar or $” means
 the lawful currency of the United States of America;

 

	
  

 	
  

 	
  

 	
  

 
	
 1.16

 	
  “Encumbrance”
 means any mortgage, charge, pledge, lien, option, restriction, right of first
 refusal, right of pre-emption, third party right or interest, any other
 encumbrance or security interest of any kind, and any other type of
 preferential arrangement (including, without limitation, title transfer and
 retention arrangements) having a similar effect;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.17

 	
  “Loan” means the
 loan in the sum of $20 million to be advanced by the Purchaser to the Company
 on or before Completion pursuant to the provisions of Clauses 5.3 – 5.6 below;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.18

 	
  “Offer to Warrant Holders” means
 the offer to Warrant Holders to purchase all and any shares in the Company
 that may be issued and allotted as a result of the Warrant Holders converting
 their respective Bozel Warrants into shares in the capital of the Company,
 said offer to be made by the Purchaser in accordance with the terms of the
 Bozel Warrants and pursuant to the provisions of Clause 3.4 below; which
 offer shall remain in effect for 30 days from the date of the signature of
 this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.19

 	
  “Offer Letter” means
 the Offer letter dated 30 August 2009 from the Purchaser to the Seller
 outlining the sale and purchase envisaged under the terms of this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.20

 	
  “Original Acquisition Agreement” means
 the acquisition agreement between the Company and CVRD relating to the sale
 and purchase of Bozel Mineracao SA dated 12 February 2008;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.21

 	
  “Parties” means
 the parties to this Agreement and “Party” means each such party severally;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.22

 	
 “Purchaser’s
 Solicitors” means GSC Solicitors, 31-32 Ely Place, London, EC1N
 6TD;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.23

 	
 “Sale
 Shares” means the shares in issue in the capital of the Company
 owned by the Seller comprising 100% of the issued share capital of the
 Company or as the case may be the enlarged issued and allotted share capital
 of the Company that may be issued and allotted as a result of conversion of
 the Bozel Warrants following the issue of the Offer to Warrant Holders;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.24

 	
  “Secured Indebtedness”
 means all sums due and payable by the Company to Trafalgar Capital
 Specialised Investment Fund and Crastvell Trading Limited;

 

	
  

 	
  

 	
  

 	
  

 
	
 1.25

 	
  “Subsidiaries” means
 Bozel Mineracao SA, Bozel Europe SAS and Bozel LLC which are each 100% owned
 by the Company;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.26

 	
  “Trilliant Disclosure Letter” means
 the disclosure Letter to be delivered by the Purchaser to the Seller at
 Completion making disclosures against the Warranties in the agreed form;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.27

 	
  “Warrant Holders” means
 holders of the Bozel Warrants;

 
	
  

 	
  

 	
  

 	
  

 
	
 1.28

 	
  “Warranties” means
 the mutual warranties, representations and undertakings set out in Schedule 1
 below;

 
	
  

 	
  

 	
  

 	
  

 
	
 2.

 	
 INTERPRETATION

 
	
  

 	
  

 	
  

 	
  

 
	
 In this
 Agreement:

 
	
  

 	
  

 	
  

 	
  

 
	
 2.1

 	
 words
 importing the singular shall include the plural and vice versa;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1.1

 	
 words
 importing any gender shall include all other genders;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1.2

 	
 words
 importing the whole shall be treated as including reference to any part of
 the whole;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1.3

 	
 reference to
 a Recital or Clause is to the relevant recital or clause of this Agreement;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1.4

 	
 reference to
 this Agreement or to any other document is a reference to this Agreement or
 to that other document as modified, amended, varied, supplemented, assigned,
 novated or replaced from time to time;

 
	
  

 	
  

 	
  

 	
  

 
	
 2.2

 	
 Headings
 used in this Agreement shall not affect its construction or interpretation;

 
	
  

 	
  

 	
  

 	
  

 
	
 2.3

 	
 Words and
 phrases defined in any part of this Agreement bear the same meanings
 throughout this Agreement; and

 
	
  

 	
  

 	
  

 	
  

 
	
 2.4

 	
 Except as
 specifically stated in this Agreement any action required to be performed by
 a party to this Agreement which is required to be performed on a day which is
 not a business day shall be performed by the close of business on the
 immediately following business day.

 

	
  

 	
  

 	
  

 	
  

 
	
 3.

 	
 SALE AND PURCHASE

 
	
  

 	
  

 	
  

 	
  

 
	
 3.1

 	
 The Seller shall sell, as beneficial owner, with full title guarantee
 and the Purchaser shall purchase the Sale Shares free from all Encumbrances,
 including without limitation any claims, charges, liens, equities or other
 encumbrances, and together with all rights attached thereto including the
 rights to receive any dividend declared but unpaid with effect from
 Completion.

 
	
  

 	
  

 	
  

 	
  

 
	
 3.2

 	
 The Seller hereby waives all pre-emption rights which it has in
 relation to the Sale Shares pursuant to the Articles of Association of the
 Company or otherwise and in relation to the sale of the Sale Shares to the
 Purchaser.

 
	
  

 	
  

 	
  

 	
  

 
	
 3.3

 	
 The Seller
 covenants, save to the extent that Warrant Holders may have rights in respect
 of the Sale Shares, that the full legal and beneficial interest in the Sale
 Shares will be transferred to the Purchaser at Completion on the terms set
 out in this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 3.4

 	
 The
 Purchaser shall make the Offer to Warrant Holders immediately following
 signing and exchange of this Agreement offering to purchase all of the Sale
 Shares, assuming full conversion of Bozel Warrants, for the Consideration.

 
	
  

 	
  

 	
  

 	
  

 
	
 3.5

 	
 In the event
 any of the Warrant Holders elect not to participate in the proposed sale and
 purchase of the Sale Shares or take no action to respond to the Offer to
 Warrant holders as envisaged under the terms of this Agreement the
 Consideration and the number of Consideration Shares shall be adjusted
 accordingly on a pro rata basis.

 
	
  

 	
  

 	
  

 	
  

 
	
 3.6

 	
 For the
 avoidance of doubt the Warrant Holders not participating in the sale and
 purchase following expiry of the Offer to Warrant Holders shall no longer
 have any right to participate in the Sale and purchase envisaged under the
 terms of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 3.7

 	
 The
 Purchaser covenants with the Seller not to issue and allot any new shares in
 the capital of the Purchaser between signing, exchange and Completion of this
 Agreement without first securing the written approval of any proposed allotee
 to the transaction contemplated by this Agreement including the appointment
 of Michel Marengere as Chairman and Chief Executive Officer of the Purchaser.

 

	
  

 	
  

 	
  

 	
  

 
	
 4.

 	
 CONDITIONS

 
	
  

 	
  

 	
  

 	
  

 
	
 4.1

 	
 This Agreement is conditional upon: the Parties carrying out mutual
 legal, financial, geological and engineering due diligence into the affairs
 and business carried on by the Company and the Subsidiaries and the Purchaser
 and its subsidiaries (as the case may be); each party securing all relevant
 shareholder, regulatory and other approvals to enable the transactions
 contemplated by this Agreement to proceed; and the satisfaction of all requirements
 and delivery of all funds and documents pursuant to Section 6 of this
 Agreement. 

 
	
  

 	
  

 	
  

 	
  

 
	
 4.2

 	
 Between execution of this Agreement and exchange and Completion of
 the Agreement the Parties and their advisors shall carry out mutual due
 diligence and in the event any material issue arises concerning due diligence
 or the ability of either party to perform pursuant to Section 6 herein,
 either Party acting in good faith may on notice in writing terminate this
 Agreement in which case neither Party shall have any further obligation to
 the other.

 
	
  

 	
  

 	
  

 	
  

 
	
 4.3

 	
 The Offer to Warrant Holders and Completion of this Agreement is
 conditional upon the Purchaser purchasing not less than 66% of the issued
 capital of the Company after exercise of the Bozel Warrants on a fully diluted
 basis.

 
	
  

 	
  

 	
  

 	
  

 
	
 5.

 	
 CONSIDERATION AND LOAN

 
	
  

 	
  

 	
  

 	
  

 
	
 5.1

 	
 The Consideration payable to the Seller and the Warrant Holders who
 convert their respective Bozel Warrants into shares in the capital of the
 Company for the Sale Shares shall, subject to any adjustment pursuant to the
 provisions of clauses 3.4 – 3.6 above, amount to Eighty Million Dollars
 ($80,000,000) payable by the issue and allotment of the Consideration
 Shares.. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.2

 	
 At Completion the Purchaser shall advance the Loan to the Company. 

 
	
  

 	
  

 	
  

 	
  

 
	
 5.3

 	
 The Loan shall subsist for a term of one year and shall carry an
 interest coupon, at the rate of not to exceed 14% per annum. In addition, the
 Loan may contain other terms and conditions consistent with market terms
 generally available for a loan of this type.

 
	
  

 	
  

 	
  

 	
  

 
	
 5.4

 	
 As security for the Loan the Company shall execute the Debenture on
 drawdown of the Loan.

 

	
  

 	
  

 	
  

 	
  

 
	
 5.5

 	
 The Loan shall be applied in paying the Secured Indebtedness and to
 provide working capital for the Company.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.

 	
 COMPLETION

 
	
  

 	
  

 	
  

 	
  

 
	
 6.1

 	
 Completion shall take place at the offices of the Purchaser’s
 Solicitors on the Completion Date, or at such other location as mutually
 agreed upon by the Parties.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.2

 	
 At Completion the Seller shall deliver to the Purchaser: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.2.1

 	
 share certificates for the Sale Shares together with Stock Transfer
 Forms duly signed in favour of the Purchaser; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.2.2

 	
 the Certificates of Incorporation of the Company and the Company’s
 Statutory Books Minute Books, books of account and other customary records
 and papers of the Company and the Subsidiaries; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.2.3

 	
 a copy of the Memorandum and Articles of Association of the Company;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.2.4

 	
 all statutory papers for the Subsidiaries together with share
 certificates in the name of the Company; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.2.5

 	
 a Certificates of Good Standing and Incumbency; and

 
	
  

 	
  

 	
  

 
	
  

 	
 6.2.6

 	
 a capitalization table showing the capital structure of the Company
 immediately preceding Completion on a fully diluted basis.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.3

 	
 At
 Completion the Seller shall procure that the Directors of the Company shall
 convene and hold a meeting of the Board of Directors of the Company at which
 the Directors shall:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.3.1

 	
 in the case
 of the Company, vote in favour of the registration of the Purchaser as member
 of the Company in respect of the Sale Shares; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.3.2

 	
 appoint
 William Lieberman as director of the Company with immediate effect and
 approve the resignations of such persons as directors and secretary as may be
 required by the Purchaser provided however that Michel Marengere shall remain
 a Director, Chairman and CEO of the Company and the Subsidiaries, and as
 Chairman and Chief Executive Officer of the Purchaser on mutually agreed
 terms; 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.3.3

 	
 approve the
 Loan and the execution of the Debenture and any other letters or deeds of
 priority with other secured lenders to the Company; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.3.4

 	
 Approve the
 repayment of the Secured Indebtedness set out in the Offer Letter.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.4

 	
 At
 Completion the Purchaser shall convene and hold a meeting of the Board of
 Directors of the Purchaser at which time the director of the Purchaser shall
 approve the issue and allotment of the Consideration Shares and appoint
 Michel Marengere as Chief Executive Officer and Chairman of the Purchaser
 with immediate effect. At Completion the Purchaser shall deliver to Seller
 written consent of a majority of Purchaser’s shareholders in accordance with Section 78.330 of the
 Nevada General Corporation Law, to elect Michel Marengere as Director
 of the Purchaser with immediate effect. 

 
	
  

 	
  

 	
  

 	
  

 
	
 6.5

 	
 At
 Completion the Purchaser shall advance the Loan proceeds to the Company.

 
	
  

 	
  

 	
  

 	
  

 
	
 6.6

 	
 Within sixty
 (60) calendar days of Completion, the Seller will deliver to the Purchaser
 financial statements of the Company which financial statements will be
 audited by a Public Company Accounting Oversight Board (“PCAOB”) member firm,
 and which financial statements will be approved by said PCAOB member firm for
 filing by the Purchaser with the United States Securities and Exchange
 Commission in a report on Form 8-K, 10-Q, 10-K, or such other forms as the
 Purchaser deems necessary and advisable.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.

 	
 WARRANTIES

 
	
  

 	
  

 	
  

 	
  

 
	
 7.1

 	
 In
 consideration of the Purchaser agreeing to enter into this Agreement, the
 Seller, save as disclosed in the Bozel Disclosure Letter, and to the extent
 already indemnified under the CVRD Indemnity, represents, warrants and
 undertakes to the Purchaser that each of the Warranties applicable to the
 Seller is true, complete and accurate in all respects and is not misleading
 and the Seller agrees and acknowledges that the Purchaser is entering into
 this Agreement in reliance on the Warranties and that the Purchaser may treat
 the same as conditions of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.2

 	
 In
 consideration of the Seller agreeing to enter into this Agreement, the
 Purchaser save as disclosed in the Trilliant Disclosure Letter represents,
 warrants and undertakes 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 to the
 Seller that each of the Warranties applicable to the Purchaser is true,
 complete and accurate in all respects and is not misleading and the Purchaser
 agrees and acknowledges that the Seller is entering into this Agreement in
 reliance on the Warranties and that the Seller may treat the same as
 conditions of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.2

 	
 Each of the
 Warranties shall be separate and independent and shall not be limited by
 reference to any other paragraph or sub-paragraph or anything in this
 Agreement. Liability under any Warranty shall not in any way be modified or
 discharged by Completion and insofar as any warranty is expressed to relate
 to the Company it shall also relate to the Subsidiaries and to the extent any
 warranty is expressed to relate to the Purchaser it shall also relate to the
 Purchaser’s subsidiaries.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.3

 	
 The Seller
 agrees with the Purchaser for itself and as trustee for the Company and its
 officers and employees to assign to the Purchaser all the rights, remedies or
 claims which they may have in respect of any misrepresentations or
 inaccuracies in or omissions from any information or advice supplied or given
 by the Company or any of the officers, employees or agents of the Company and
 on which the Seller has relied in giving the Warranties, and/or entering into
 this Agreement and/or the other documents to be entered into on Completion
 provided however it is accepted that such officers and employees may have the
 benefit of indemnity insurance which will be kept in force for a minimum of 3
 years.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.4

 	
 The
 Purchaser agrees with the Seller for itself to assign to the Purchaser all
 the rights, remedies or claims which they may have in respect of any
 misrepresentations or inaccuracies in or omissions from any information or
 advice supplied or given by the Purchaser or any of the officers, employees
 or agents of the Purchaser and on which the Purchaser has relied in giving
 the Warranties, and/or entering into this Agreement and/or the other
 documents to be entered into on Completion provided however it is accepted
 that such officers and employees may have the benefit of indemnity insurance
 which will be kept in force for a minimum of 3 years.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.5

 	
 Claims may
 be made by either party under the Warranties whether or not the other party
 knew or could have discovered (whether by any investigation made by it or on
 its behalf into the affairs of the Company or the Purchaser or otherwise)
 prior to signing this Agreement that any of the Warranties have not been
 complied with or carried out or are otherwise untrue or misleading.

 

	
  

 	
  

 	
  

 	
  

 
	
 7.6

 	
 The Parties
 mutually covenant with and undertake to each other to indemnify each other
 against all losses, costs, charges and expenses (including without limitation
 all legal and accountancy expenses) which either party may incur, whether
 before or after the start of any action, in connection with the investigation
 or settlement of a claim in respect of a Breach or an alleged Breach or the
 enforcement of a settlement and legal proceedings against the other party in
 respect of a Breach or an alleged Breach.

 
	
  

 	
  

 	
  

 	
  

 
	
 7.7

 	
 All sums
 payable under this Agreement shall be paid free and clear of all deductions
 or withholdings whatsoever save only as may be required by law in which case
 the other party shall be obliged to pay to the relevant person such sums as
 will after such deduction or withholding has been made leaves that person
 with the same amount as it would have been entitled to receive in the absence
 of any such requirement to make a deduction or withholding. 

 
	
  

 	
  

 	
  

 	
  

 
	
 8.

 	
 NO RESCISSION

 
	
  

 	
  

 	
  

 	
  

 
	
 8.1

 	
 Neither the
 Seller nor the Purchaser shall be entitled to rescind this Agreement after
 Completion.

 
	
  

 	
  

 	
  

 	
  

 
	
 9.

 	
 RIGHTS OF THIRD PARTIES

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1

 	
 A person who
 is not a party to this Agreement has no rights under the Contracts (Rights of
 Third Parties) Act 1999 to enforce, or to enjoy the benefit of, any term of
 this Agreement but this does not affect any right or remedy of a third party
 which exists or is available apart from that Act.

 
	
  

 	
  

 	
  

 	
  

 
	
 10.

 	
 ASSIGNMENT

 
	
  

 	
  

 	
  

 	
  

 
	
 10.1

 	
 No Party to
 this Agreement shall, without the prior written consent of all other Parties
 assign, transfer or otherwise delegate (in whole or in part) or charge or
 deal in any other manner with the benefit of this Agreement or any of the
 rights under it.

 

	
  

 	
  

 	
  

 	
  

 
	
 11.

 	
 SEVERANCE

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1

 	
 If any
 provision of this Agreement is or becomes illegal, invalid or unenforceable
 in any jurisdiction, that shall not affect:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1.1

 	
 the
 legality, validity or enforceability in that jurisdiction of any other
 provision of this Agreement; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1.2

 	
 the
 legality, validity or enforceability in any other jurisdiction of that or any
 other provision of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.

 	
 ENTIRE AGREEMENT

 
	
  

 	
  

 	
  

 	
  

 
	
 12.1

 	
 This Agreement, and the documents referred to in it, constitute the
 entire agreement and understanding of the Parties and supersedes any previous
 agreement between the Parties relating to the subject matter of this
 Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 12.2

 	
 No reliance on other statement:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Purchaser
 and the Seller each acknowledge and agree that in entering into this
 Agreement, and the documents referred to in it, neither of them rely on, and
 shall have no remedy in respect of, any statement, representation, warranty
 or undertaking (whether negligently or innocently made) of any person
 (whether a party to this Agreement or not) other than as expressly set out in
 this Agreement. Nothing in this Clause shall, however, operate to limit or
 exclude any liability for fraud.

 
	
  

 	
  

 	
  

 	
  

 
	
 13.

 	
 SURVIVAL OF OBLIGATIONS

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Notwithstanding
 Completion each and every right and obligation of the Purchaser and the
 Seller under this Agreement shall, except in so far as fully performed at
 Completion, continue in full force and effect.

 
	
  

 	
  

 	
  

 	
  

 
	
 14.

 	
 FURTHER ASSURANCE

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Seller
 hereby undertakes with the Purchaser at the request and cost and expense of
 the Seller to do or to procure to be done all such further acts and things
 and execute or procure to be executed all such further deeds and documents as
 may be reasonably necessary or desirable fully and effectively to vest in the
 Purchaser the legal and beneficial ownership of the Sale Shares and the
 benefits of this Agreement and,

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 pending such
 vesting, the Seller shall hold the Sale Shares and benefits in trust for the
 Purchaser and shall receive all monies in connection therewith as trustee of
 the Purchaser and shall account to the Purchaser forthwith on receipt.

 
	
  

 	
  

 	
  

 	
  

 
	
 15.

 	
 AMENDMENTS, WAIVERS AND REMEDIES

 
	
  

 	
  

 	
  

 	
  

 
	
 15.1

 	
 No amendment or variation of this Agreement or any of the documents
 referred to in it shall be effective unless contained in a written instrument
 signed by or on behalf of each of the Parties. 

 
	
  

 	
  

 	
  

 	
  

 
	
 15.2

 	
 Waivers and remedies:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 15.2.1

 	
 The rights
 of each Party under this Agreement:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 may be
 exercised as often as necessary;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 are
 cumulative and not exclusive of its rights under the general law; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 may be
 waived only in writing and specifically;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 15.2.2

 	
 Delay in
 exercising or non-exercise of any right under this Agreement is not a waiver
 of that right; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 15.2.3

 	
 Partial
 exercise of any right under this Agreement shall not preclude any further or
 other exercise of that right or any other right under this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 16.

 	
 SUCCESSORS

 
	
  

 	
  

 	
  

 	
  

 
	
 16.1

 	
 This Agreement shall be binding on the Seller and his executors,
 personal representatives and successors whomsoever and, unless the context
 otherwise requires, references to the Seller shall include references to such
 executors, personal representatives and successors; and

 
	
  

 	
  

 	
  

 	
  

 
	
 16.2

 	
 This Agreement shall be binding on, and shall ensure for the benefit
 of, any person to whom any right and/or obligation is validly assigned or
 transferred pursuant to Clause 10.

 

	
  

 	
  

 	
  

 	
  

 
	
 17.

 	
 COSTS, CHARGES AND EXPENSES

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1

 	
 The Purchaser and the Seller shall each pay their own costs, charges
 and expenses relating to the negotiation, preparation, execution and
 implementation of this Agreement and of each document referred to in this
 Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.

 	
 NOTICES & ANNOUNCEMENTS

 
	
  

 	
  

 	
  

 	
  

 
	
 18.1

 	
 Any notice or communication to be given under, or in connection with
 the matters contemplated by, this Agreement shall be in writing and signed by
 or on behalf of the party giving it.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.2

 	
 Any notice or communication referred to in Clause 18.1 shall be
 served by delivering it personally or sending it by pre-paid recorded
 delivery or registered post or by fax to the address and for the attention of
 the relevant Party set out in Clause 18.4 (or as otherwise notified by that
 party under this Agreement).

 
	
  

 	
  

 	
  

 	
  

 
	
 18.3

 	
 Any notice or communication referred to in Clause 18.1 shall be
 deemed to have been received:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 18.3.1

 	
 if delivered
 personally, at the time of delivery; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 18.3.2

 	
 in the case
 of pre-paid recorded delivery or registered post, 48 hours from the date of
 posting provided that if deemed receipt occurs after 5pm on a business day,
 or on a day which is not a business day, the notice shall be deemed to have
 been received at 9am on the next business day.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.4

 	
 The addresses of the Parties for the purposes of Clause 18.2 are:

 

	
  

 	
  

 
	
  

 	
      The
 Purchaser

 
	
  

 	
  

 
	
 Address: 

 	
 Trilliant Exploration Corp.,

 
	
  

 	
 545 Eighth Avenue Suite 401

 
	
  

 	
 New York New York 10018, United States of America

 

	
  

 	
  

 
	
 With a copy to: 

 	
 Befumo & Schaeffer, PLLC, 

 
	
  

 	
 2020 Pennsylvania Ave, Suite 840, 

 
	
  

 	
 Washington,
 DC 20006

 

	
  

 	
  

 
	
  

 	
 The Seller 

 
	
  

 	
  

 
	
  

 	
 Address: 31-32 Ely Place, London, EC1N 6TD

 

	
  

 	
  

 
	
 With a copy to: 

 	
 Joseph P. Galda, General Counsel

 
	
  

 	
 497 Delaware
 Avenue

 
	
  

 	
 Buffalo, New
 York 14202

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 or such
 other address as may be notified in writing from time to time by the relevant
 Party to the other Parties.

 
	
  

 	
  

 
	
 18.5

 	
 Any notice or communication given under this Agreement shall not be
 validly served if sent by electronic mail or fax/facsimile.

 
	
  

 	
  

 	
  

 	
  

 
	
 18.6

 	
 The Parties shall as soon as practicably possible in line with any
 regulatory requirements following signing and exchange of this Agreement
 prepare and make appropriate and mutually approved announcements endorsed by
 Board approval to the market and other interested parties of the transactions
 contemplated pursuant to the terms of this Agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 19.

 	
 COUNTERPARTS

 
	
  

 	
  

 	
  

 	
  

 
	
 19.1

 	
 This Agreement may be executed in any number of counterparts and by
 the Parties on different counterparts, but shall not be effective until each
 Party has executed at least one counterpart; and

 
	
  

 	
  

 	
  

 	
  

 
	
 19.2

 	
 Each counterpart shall constitute an original of this Agreement but
 all the counterparts shall together constitute one and the same agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.

 	
 CONFIDENTIALITY

 
	
  

 	
  

 	
  

 	
  

 
	
 20.1

 	
 For the
 purpose of assuring to the Purchaser the full benefit of the Sale Shares and
 the goodwill and in consideration of the agreement of the Purchaser to
 purchase the Sale Shares on the terms hereof, the Seller agrees as a separate
 and independent agreement that it will not at any time hereafter use, divulge
 or communicate to any person any confidential information concerning the
 business, accounts, financial or contractual arrangements or other dealings,
 transactions or affairs of the Purchaser and/or the Company which may be
 within or which, in the course of matters arising under this 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Agreement,
 may come to their knowledge, and that they will use all reasonable endeavours
 to prevent the use, publication or disclosure of any Confidential Information
 concerning such matters or any of them and not do anything to harm the
 goodwill of the Group.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.2

 	
 Each party
 shall treat as strictly confidential all information received or obtained as
 a result of entering into or performing this Agreement which relates to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.2.1

 	
 the
 provisions or the subject matter of this Agreement or any document referred
 to herein;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.2.2

 	
 the
 negotiations relating to this Agreement or any document referred to herein;
 and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.2.3

 	
 (in the case
 of the Seller only) the Purchaser’s group.

 
	
  

 	
  

 	
  

 	
  

 
	
 20.3

 	
 Each party
 may disclose information which would otherwise be confidential if and to the
 extent:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.3.1

 	
 required by
 the law of any relevant jurisdiction or pursuant to an order of a court of
 competent jurisdiction;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.3.2

 	
 required by
 any securities exchange or regulatory or governmental body to which any party
 is subject to, wherever situated, whether or not the requirement for
 information has the force of law;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.3.3

 	
 that the
 information is disclosed on a strictly confidential basis to the professional
 advisers, auditors and/or bankers of that party;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.3.4

 	
 that the
 information has come into the public domain through no fault of that party;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.3.5

 	
 that the
 other parties to this Agreement have given prior written approval to the
 disclosure, such approval not to be unreasonably withheld or delayed; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20.3.6

 	
 required to
 enable that party to enforce its rights under this Agreement,

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 provided that any such information disclosed pursuant
 to paragraphs 20.3.1 and 20.3.2 shall be disclosed only after notice to the
 other parties to this Agreement.

 

	
  

 	
  

 
	
  

 	
 The
 restrictions contained in this Clause 20 shall continue to apply after the
 date hereof without limit in time and notwithstanding the termination or
 expiration of this Agreement. 

 
	
  

 	
  

 
	
 21.

 	
 GOVERNING LAW AND JURISDICTION 

 
	
  

 	
  

 
	
 21.1

 	
 This
 Agreement shall be governed by and construed in accordance with the law of
 England; and 

 
	
  

 	
  

 
	
 21.2

 	
 The Parties
 submit to the non-exclusive jurisdiction of the Courts of England as regards
 any claim, dispute or matter arising out of or relating to this Agreement or
 its implementation or effect. The Purchaser hereby designates, empowers and
 appoints the Purchaser’s Solicitors to receive for it and on its behalf
 service of process issued out of the English Courts in any legal action or
 proceedings arising out of or in connection with this Agreement; provided,
 however that in the event that the Purchaser’s Solicitors receive any service
 of process they immediately deliver a copy of such process to the addresses
 designated in Section 18.4 hereof. 

 

THIS AGREEMENT is
entered into by the parties on the date first written above. 

	
  

 	
  

 	
  

 
	
 SIGNED by

 	
 )

 	
  

 
	
 William Robert

 	
 )

 	
  

 
	
 Lieberman

 	
 )

 	
 /s/ William
 R Lieberman

 
	
 for and on
 behalf of

 	
 )

 	
 

 
	
 TRILLIANT EXPLORATION

 	
 )

 	
  

 
	
 CORP

 	
 )

 	
  

 
	
  

 	
  

 	
  

 
	
 SIGNED by

 	
 )

 	
  

 
	
 Michel Marengere

 	
 )

 	
 /s/ Michel
 Marengere

 
	
 for and on
 behalf of

 	
 )

 	
 

 
	
 WELLGATE INTERNATIONAL

 	
 )

 	
  

 
	
 LIMITED

 	
 )

 	
  

 

SCHEDULE 1 

Warranties

	
 

	
 

	
 

	
1.

	
All information contained in this Agreement and all other information
 relating to the Company and the Purchaser given by the Seller or the Seller’s
 accountants or the Seller’s Solicitors to the Purchaser or the Purchaser’s
 accountants or by the Purchaser or the Purchaser’s accountants or the
 Purchaser to the Seller or the Seller’s accountants is true, accurate and
 complete in every respect and there is no fact or matter which renders any
 such matters or information untrue, incomplete or misleading or the
 disclosure of which might reasonably affect the willingness of the Purchaser
 to purchase the Sale Shares or the Seller to accept delivery of the
 Consideration Shares on the terms of this Agreement.

	
 

	
 

	
 

	
2.

	
In each case the Parties haves full power and authority to enter into
 and perform this Agreement and this Agreement constitutes valid and binding
 obligations on the each of the Parties in accordance with its terms.

	
 

	
 

	
 

	
3.

	
Neither entering into this Agreement nor performing the obligations
 referred to in those agreements has resulted or will result in the breach of
 any obligation of either party under:

	
 

	
 

	
 

	
 

	
3.1

	
its memorandum or articles of association, statutes, bye laws or
 other terms of charter or corporate regulation;

	
 

	
 

	
 

	
 

	
3.2

	
the memorandum or articles of association, statutes, bye-laws or
 other terms of charter or corporate regulation of the Company;

	
 

	
 

	
 

	
 

	
3.3

	
any law or any order, judgment or decree of any court or governmental
 agency; or

	
 

	
 

	
 

	
 

	
3.4

	
any contract, undertaking or agreement.

	
 

	
 

	
 

	
4.

	
The Sale Shares constitute the whole of the allotted and issued share
 capital of the Company and are fully paid up.

	
 

	
 

	
 

	
5.

	
The Seller is the beneficial owner and registered holder of the Sale
 Shares which have been issued in proper legal form free from all Encumbrances
 and together with all rights attached or accruing in or to them.

	
 

	
 

	
 

	
6.

	
The Seller is entitled to transfer the full legal and beneficial
 ownership of the Sale Shares to the Purchaser on the terms of this Agreement
 without the consent of any third party and the Purchaser is entitled to issue
 and allot the Consideration Shares and deliver the full legal and beneficial
 ownership of the Consideration Shares free of Encumbrances and together with
 all rights attached or accruing in or to them to the Seller on the terms of
 this Agreement without the consent of any third party. 

	
 

	
 

	
 

	
7.

	
No person has the right (whether actual or contingent) to call for
 the creation, allotment, issue, sale or transfer of any share or loan capital
 under any option or other agreement, arrangement or commitment (including
 without limitation, any conversion rights and rights on realisation of
 security,) or to require any loan or share capital to be put under option and
 no person has claimed to be entitled to any of the foregoing. 

	
 

	
 

	
 

	
8.

	
All returns, particulars, resolutions and other documents required to
 be delivered on behalf of the Company and the Purchaser to the Registrar of
 Companies or other authority have been properly made and delivered and were
 when so made and delivered accurate and complete.

	
 

	
 

	
 

	
9.

	
The statutory books, books of account, registers and other records of
 the Company and the Purchaser are up-to-date and maintained in accordance
 with all applicable legal requirements on a proper and consistent basis and
 contain complete and accurate records of all matters required to be disclosed
 or dealt with in them. 

	
 

	
 

	
 

	
10.

	
No notice or allegation has been received that any of the statutory
 books or other records of the Company or the Purchaser is incorrect or should
 be rectified. 

	
 

	
 

	
 

	
11.

	
Neither the
 Company nor the Purchaser is a party to any litigation or arbitration
 proceedings or any proceedings before any tribunal, assessor or expert in any
 jurisdiction and there are no proceedings of any of the aforesaid kind
 pending or threatened either by or against the Company or the Purchaser and
 there are no facts or circumstances which are likely to give rise thereto nor
 is there any dispute with any revenue authority in relation to the affairs of
 the Company or the Purchaser.

	
 

	
 

	
 

	
12

	
No liability has been incurred by the Company or the Purchaser for
 breach of any contract of service or for services, for redundancy payments,
 protective awards or for compensation for wrongful or unfair dismissal or for
 failure to comply with any order for the reinstatement or re-engagement of
 any director or employee or for any other 

	
 

	
 

	
 

	
 

	
liability accruing from the termination of any contract of employment
 or for services nor has any event occurred which would or might give rise to
 any such liability.

	
 

	
 

	
 

	
13.

	
No distress, execution or other process has been levied in respect of
 the Company or the Purchaser which remains undischarged and there is no
 unsatisfied judgment or Court order outstanding against the Company or the
 Purchaser.

	
 

	
 

	
 

	
14.

	
No receiver or manager has been appointed of the whole or any part of
 the assets or undertakings of the Company or the Purchaser.

	
 

	
 

	
 

	
15.

	
No meeting has been convened at which a resolution will be proposed,
 no resolution has been passed, no petition has been presented and no order
 has been made for the winding up of the Company or the Purchaser.ex-10_53.htm

Exhibit 10.53

 

 

PLATINUM LONG TERM GROWTH IV, LLC

152 WEST 57TH STREET,
54TH FLOOR

NEW YORK, NEW YORK 10019

 

VIA FACSIMILE AND FIRST CLASS MAIL

 

Effective August 31, 2009

 

Re: FORBEARANCE AGREEMENT

 

Ladies and Gentlemen:

 

Reference is made to the $2,750,000 8% Senior Secured Promissory Note due March 6, 2009, issued on or about March 6, 2007, the $150,000 8% Senior Secured Promissory Note due March
6, 2009, issued on or about August 4, 2008, the $190,000 Senior Secured Promissory Note due January 31, 2010, issued on or about September 29, 2008, the $59,500 Senior Secured Promissory Note due January 31, 2010, issued on or about October 31, 2008 and the $14,941.34 8% Senior Secured Promissory Note, issued on or about February 20, 2009 (together the
“Notes") from NaturalNano, Inc. and NaturalNano Research, Inc. (jointly and severally, the "Borrower") to Platinum Long Term Growth IV, LLC (the "Lender"). Capitalized terms used herein and not otherwise defined shall have the respective meanings given in the Notes.

 

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

 

The Lender is prepared to forbear from demanding payment of principal on the Notes on the Maturity Date of the Notes, or taking any other action to collect the principal amount of the Notes until the earlier of December 31, 2009 (unless extended by the Lender in its discretion) or the termination of the Forbearance Period
pursuant to the terms of this Letter Agreement (such period, the "Forbearance Period"), provided the Borrower accepts and agrees to the terms, conditions and covenants set forth herein, and communicates such acceptance (by delivering a signed copy of this Letter Agreement) to the Lender no later than 5:00 p.m. on August 31, 2009; provided further it is understood that Borrower is obligated to make all interest payments required under the Notes during the Forbearance Period.

 

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

 

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

 

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

  

  

  

	
Effective August 31, 2009

Page 2

 

 

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

 

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

 

4.           Interest Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest at the interest rate set forth under the Notes (8%); it being understood that the default rate shall apply upon the occurrence of any Event of Default
(other than Existing Defaults) thereunder or upon termination of the Forbearance Period.

 

5.           Other Notes. The Borrower agrees that it shall not provide any holder of the Notes issued on or about March 6, 2007, August 5, 2008, September 29, 2008 or October 31, 2008 (the "Other Notes") any concession or payment with respect to such Other Notes
without first offering the Lender the opportunity to receive such payment or concession with respect to the Notes.

 

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

 

  

  

  

	
Effective August 31, 2009

Page 3

 

 

 

7.          Lender to Retain all Rights. It is understood and agreed that this Letter

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

 

8.          Termination of Forbearance Period, The Forbearance Period shall terminate

upon the earlier to occur of: (1) 5:00 pm (New York City Time) on December 31, 2009; (2) the Borrower shall fail to observe, perform, or comply with any of the terms, conditions or provisions of this Letter Agreement as and when required and/or any other Event of Default (ether than the Existing Defaults occurring prior
to the date hereof) shall occur under the Notes or any of the Loan Documents or any other agreement between the Borrower and the Lender (or its affiliates) or any other indebtedness issued by the Borrower to the Lender or its affiliates; (3) any representation or warranty made herein, in any document executed and delivered in connection herewith, or in any report, certificate, financial statement or other instrument or document now or hereafter furnished by or on behalf of the Borrower in connection with this
Letter Agreement, shall prove to have been false, incomplete or misleading in any material respect on the date as of which it was made; (4) any suit preceding or other action is commenced by any other creditor against the Company; or (5) a court of competent jurisdiction shall enter an order for relief or take any similar action in respect of the Borrower in an involuntary case under any applicable bankruptcy, insolvency, reorganization, moratorium or similar law now or hereafter in effect or a petition for relief
under any applicable bankruptcy, insolvency, reorganization, moratorium or other similar law shall be filed by or against the Borrower.

 

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

  

  

Effective August 31, 2009

Page 4
  

 

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

 

 

	  	  	
Sincerely,

	  	  	  
	  	  	
PLATINUM LONG TERM GROWTH IV, LLC

	  	  	  
	  	  	
By:
	

/s/ Mark Nordlicht 

	  	  	
Name:
	
Mark Nordlicht

	  	  	
Title:
	
Fund Manager

 

 

Accepted and Agreed as of this 31st day of August, 2009

 

	
NATURALNANO, INC.
	  
	  	  	  
	
By:
	

/s/ James Wemett 

	  
	
Name:
	
James Wemett
	  
	
Title:
	
Acting President and CEO
	  

 

 

	
NATURALNANO RESEARCH, INC.
	  
	  	  	  
	
By:
	

/s/ James Wemett 

	  
	
Name:
	
James Wemett
	  
	
Title:
	
Acting President and CEO

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