Document:

Exhibit
      4.2

     

    

     

    THIS
      NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
      SECURITIES LAWS. NEITHER THIS NOTE NOR SUCH SHARES OF COMMON STOCK MAY BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND ANY APPLICABLE STATE
      SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUING
      CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    

    
      	Principal Amount $[  
               ] 	
              Issue
                Date: March 7,
                2007

            

    

         

    

    8%
      SENIOR SECURED PROMISSORY NOTE DUE MARCH 7, 2009

    

     

    FOR
      VALUE
      RECEIVED, NaturalNano, Inc., a Nevada corporation (“NaturalNano”), and
      NaturalNano Research, Inc., a Delaware corporation and wholly owned subsidiary
      of NaturalNano (“NN Research” and, together with NaturalNano, the “Borrowers”),
      hereby jointly and severally promise to pay to the order of [ ] (the “Holder”),
      the sum of [ ], on March 7, 2009 (the “Maturity Date”). 

     

    This
      Note
      is one of the Notes issued pursuant to the terms of a loan and security
      agreement between the Borrowers and the Holder, dated the date of this Note
      (the
“Loan Agreement”).

     

    Interest
      on the outstanding principal balance shall be paid at the rate of eight percent
      (8%) per annum, payable quarterly on the first day of June, September, December
      and March of each year; provided, however, that the first interest payment
      shall
      be due on June 1, 2007 and a final interest payment due on the Maturity Date.
      Interest shall be payable to the holder of this Debenture of record on the
      fifteenth day of the preceding month. Interest shall be computed on the basis
      of
      a 360-day year, using the number of days actually elapsed. Interest may be
      paid
      in cash or in shares of NaturalNano’s common stock, par value $.001 per share
      (“Common Stock”); provided, that any payment in shares of Common Stock shall be
      subject to the provisions of Section 1.2 of this Note. Interest shall be payable
      at the default interest rate of the lesser of (x) eighteen percent (18%) per
      annum or (y) the maximum rate of interest which may legally be charged, (a)
      if
      the Borrowers fail to make any monetary payment due on this Note within ten
      (10)
      days after the date such payment is due and continuing at such rate until the
      payment default is cured, and (b) during the pendency of any Event of Default,
      as hereinafter defined, other than a failure to make any monetary
      payment.

     

    Payment
      of this Note is secured by a security interest in the Collateral, as defined
      in
      the Loan Agreement, and the Holder of this Note shall have all rights granted
      to
      the Investors, as defined in the Loan Agreement, pursuant the Loan Agreement.
      This Note is one of the Notes of like tenor issued pursuant to the Loan
      Agreement in the aggregate initial principal amount of $3,347,500, such Notes
      being collectively referred to as the “Notes.”

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
      1. 

     

    Interest
      Payments

     

    1.1. Payment
      of Interest in Cash.
      Except
      as provided in Section 1.2 of this Note, interest shall be paid in cash on
      the
      interest payment date.

     

    1.2. Payment
      of Interest in Stock.
      The
      Borrowers may pay interest on this Note in shares of Common Stock provided
      that
      the following conditions are met:

     

    1.2.1. The
      shares of Common Stock issuable in payment of interest shall be subject to
      a
      current and effective registration statement and NaturalNano shall deliver
      to
      the Holder an unlegended stock certificate or, if the Holder shall have provided
      NaturalNano with account information, NaturalNano shall have caused the shares
      to be electronically delivered to Holder’s brokerage account.

     

    1.2.2. NaturalNano
      shall be current in its filings with the Securities and Exchange Commission
      pursuant to the Securities Exchange Act of 1934, as amended.

     

    1.2.3. The
      Common Stock shall be traded on the OTC Bulletin Board, the Nasdaq Stock Market
      or the New York or American Stock Exchange, NaturalNano shall not have received
      notice from any such market or exchange to the effect that the Common Stock
      may
      be subject to delisting from such market or exchange, and no event shall have
      occurred which would result in the delisting of the Common Stock from such
      market.

     

    1.2.4. The
      number of shares of Common Stock to be issued shall be determined by dividing
      the amount of the interest payment by eighty five percent (85%) of the daily
      volume weighted average price (“VWAP”) of the Common Stock for the 20 trading
      days immediately preceding (but not including) the day that is one trading
      day
      prior to the interest payment date. 

     

    1.2.5. VWAP
      means the daily volume weighted average price of the Common Stock for such
      date
      (or the nearest preceding date) on the primary trading market on which the
      Common Stock is then listed or quoted as reported by Bloomberg Financial L.P.
      (based on a trading day from 9:30 a.m. EST to 4:02 p.m. Eastern Time) using
      the
      VAP function.

     

    Section
      2. Conversion

     

    2.1. Conversion
      Right.
      The
      Holder shall have the right at any time and from time to time until the
      principal and interest on this Note shall have been paid in full, to convert
      the
      principal and any interest due under this Note into shares of Common Stock
      as
      provided in this Section 2.

     

    2.2. Conversion
      Procedure.
      If the
      Holder exercises its right of conversion, the Holder shall give NaturalNano
      a
      Notice of Conversion in the form annexed to this Note, setting forth the amount
      of principal and interest which the Holder is converting into Common Stock
      at
      the Conversion Price in effect on the date of such notice. The date of such
      notice is referred to as the Conversion Date. Upon delivery to NaturalNano
      of a
      completed Notice of Conversion, NaturalNano shall issue and deliver to the
      Holder within three (3) business days after the Conversion Date (such third
      day
      being the “Delivery Date”) that number of shares of Common Stock for the amount
      of principal and interest on the Note which is being converted, as set forth
      in
      Section 2.9 of this Note. To the extent that the Holder does not elect to
      convert interest, the Borrowers shall pay accrued interest to the Conversion
      Date on that portion of the principal of the Note with respect to which accrued
      interest is not being converted, such payment to be made not later than the
      Delivery Date. Except to the extent that the unpaid principal balance of this
      Note is being presented for conversion, the Holder shall not be required to
      present this Note in order to effect conversion, and the Holder shall maintain
      a
      ledger setting forth each conversion of principal and interest on this Note
      and
      such ledger shall, absent manifest error, be deemed to be binding and conclusive
      on the Borrowers.

    
      
         

      

      
        -
          2 -

        
          

        

      

      
         

      

    

    2.3. Conversion
      Price.
      The
      Conversion Price shall be $0.22 per share of Common Stock, subject to adjustment
      as set forth in Section 2.4 of this Note and in the Loan Agreement. The number
      of shares of Common Stock to be issued upon each conversion of this Note shall
      be determined by dividing that portion of the principal and interest of the
      Note
      to be converted by the Conversion Price in effect on the Conversion
      Date.

     

    2.4. Adjustment
      to the Conversion Price.
      The
      Conversion Price and number and kind of shares or other securities to be issued
      upon conversion shall be subject to adjustment from time to time upon the
      happening of certain events while this conversion right remains outstanding,
      as
      follows:

     

    2.4.1. Merger
      or Sale of Assets.
      If
      NaturalNano shall at any time consolidate with or merge into or sell or convey
      all or substantially all its assets to any other Person, as defined in the
      Loan
      Agreement, this Note, as to the unpaid principal portion thereof and accrued
      interest thereon, shall thereafter be deemed to be convertible into such number
      and kind of shares of capital stock or other securities and property as would
      have been issuable or distributable on account of such consolidation, merger,
      sale or conveyance, upon or with respect to the securities subject to the
      conversion or purchase right immediately prior to such consolidation, merger,
      sale or conveyance. The foregoing provision shall similarly apply to successive
      transactions of a similar nature by any such successor or purchaser. Without
      limiting the generality of the foregoing, the anti-dilution provisions of this
      Section shall apply to such securities of such successor or purchaser after
      any
      such consolidation, merger, sale or conveyance.

     

    2.4.2. Reclassification.
      If
      NaturalNano at any time shall, by reclassification or otherwise, change the
      Common Stock into the same or a different number of securities of any class
      or
      classes that may be issued or outstanding, this Note, as to the unpaid principal
      portion thereof and accrued interest thereon, shall thereafter be convertible
      into an adjusted number of such securities and kind of securities as would
      have
      been issuable as the result of such change with respect to the Common Stock
      immediately prior to such reclassification or other change.

     

    2.4.3. Stock
      Splits, Combinations and Dividends.
      If the
      shares of Common Stock are subdivided or combined into a greater or smaller
      number of shares of Common Stock, or if a dividend is paid on the Common Stock
      in shares of Common Stock, the Conversion Price shall be proportionately reduced
      in case of subdivision of shares or stock dividend or proportionately increased
      in the case of combination of shares, in each such case by the ratio which
      the
      total number of shares of Common Stock outstanding immediately after such event
      bears to the total number of shares of Common Stock outstanding immediately
      prior to such event.

     

    2.4.4. Stock
      Issuance.
      If,
      while
      this Note is outstanding, the Company sells or otherwise issues any Convertible
      Securities, shares of Common Stock, or shares of any class of capital stock
      at a
      price per share of Common Stock, or with a conversion right or Conversion Price
      to acquire Common Stock at a price per share of Common Stock (other than (x)
      an
      Exempt Issuance, as defined in the Loan Agreement, or (y) an issuance covered
      by
      Sections 2.4.1, 2.4.2 or 2.4.3 of this Note), that is less than the Conversion
      Price in
      effect
      at the time of such sale (such lower price being referred to as the “Lower
      Price”), the Conversion Price shall be reduced to an adjusted Conversion Price
      which is equal to the Lower Price. Such
      adjustment shall be made successively whenever any such sale or other issuance
      at a Lower Price is made. The term “Convertible Security” shall mean any debt or
      equity security or instrument upon the conversion or exercise of which shares
      of
      Common Stock may be issued.

    
      
         

      

      
        -
          3 -

        
          

        

      

      
         

      

    

    (a) For
      purposes of this Section 2.4.4, the price at which such shares of Common Stock
      are issued shall be the consideration paid for the Common Stock or the price
      at
      which the Company agrees to issue shares of Common Stock. The price at which
      any
      Convertible Security is issued shall be the amount received for the issuance
      of
      the Convertible Security plus the minimum amount of additional consideration
      which is payable upon exercise or conversion of the Convertible Security. If
      the
      Company issues securities as a unit, regardless of whether such issuance is
      defined as a unit, a separate computation shall be made with respect to (x)
      shares of Common Stock and convertible securities (based on the maximum number
      of shares of Common Stock which may be issued upon conversion, including
      conversion of interest or dividends, but excluding warrants, rights and options)
      and (y) warrants, options or rights, with a separate computation being made
      as
      to each warrant, option or right which is issued. If warrants, options or rights
      are issued, the Company shall not be deemed to have received any consideration
      for the issuance of the shares upon exercise of the warrant, option or right
      other than the lowest exercise price provided therein. If the Company has an
      agreement which provides for the issuance of shares at a fixed price or a
      formula price with a maximum price, the Company shall be deemed to have issued
      securities at such maximum price regardless of whether any securities are
      actually sold, and any issuance of securities below such maximum price shall,
      if
      such price is a Lower Price, be a sale which results in an adjustment pursuant
      to this Section 2.4.4.

     

    (b) By
      way of
      example, if the Company issues for $1,000,000 securities consisting of 500,000
      shares of Common Stock and a convertible note for $1,000,000 with a conversion
      price of $.40 and warrants to purchase 1,000,000 shares of Common Stock at
      $.40,
      the Lower Price would be determined by dividing the total consideration paid
      for
      the Common Stock and the note ($1,000,000) by the number of shares of Common
      Stock issued (3,000,000 shares, representing the 500,000 shares issued at
      closing plus the 2,500,000 shares issuable upon conversion of the note), which
      would result in Lower Price of $.333, which would become the adjusted Conversion
      Price. If, in the same example, the exercise price of the warrant were $.30
      per
      share, the Lower Price would be $.30, which would become the adjusted Conversion
      Price. If, in either case, the conversion price of all or any part of the
      convertible security or the exercise price of all or any of the warrants were
      subsequently reduced, a further adjustment would be made.

     

    (c) Any
      stock
      or convertible securities (other than warrants or options which shall be valued
      at the lowest stated Conversion Price thereof) issued for services that are
      not
      Exempt Issuances shall, for purposes of this Warrant, be valued at the par
      value
      thereof unless such issuance is made with the prior written approved of the
      Investors, as defined in the Loan Agreement, in which event the securities
      shall
      be valued in the manner as set forth in the Investors’ approval.

     

    2.5. Notice
      of Adjustment.
      Whenever the Conversion Price is adjusted pursuant to Section 2.4 of this Note,
      NaturalNano shall promptly mail to the Holder a notice setting forth the
      Conversion Price after such adjustment and setting forth a statement of the
      facts requiring such adjustment.

     

    2.6. Reservation
      of Shares.
      During
      the period that the conversion right exists, NaturalNano will reserve from
      its
      authorized and unissued Common Stock a sufficient number of shares to provide
      for the issuance of Common Stock issuable upon the full conversion of this
      Note
      and as described in the Loan Agreement. NaturalNano represents that upon
      issuance, such shares will be duly and validly issued, fully paid and
      non-assessable. NaturalNano agrees that its issuance of this Note shall
      constitute full authority to its officers, agents, and transfer agents who
      are
      charged with the duty of executing and issuing stock certificates to execute
      and
      issue the necessary certificates for shares of Common Stock upon the conversion
      of this Note.

     

    2.7. Right
      to Require Conversion.
      Provided an Event of Default or an event which with the passage of time or
      the
      giving of notice could become an Event of Default has not occurred, whether
      or
      not such Event of Default has been cured, and provided that all of the shares
      of
      Common Stock issuable upon conversion of the Note, have been registered pursuant
      to the Securities Act of 1933, as amended (the “Securities Act”) the Borrowers
      shall have the right to require the Holder of this Note to covert all or any
      portion of this Note into shares of Common Stock at the Conversion Price on
      the
      date that the Borrowers give notice of such required conversion, subject to
      the
      following terms and conditions.

    
      
         

      

      
        -
          4 -

        
          

        

      

      
         

      

    

    2.7.1. The
      Borrowers may only exercise such right if a registration statement covering
      the
      sale by the Holder of the shares of Common Stock issuable upon conversion of
      this Note (the “Registration Statement”) is current and effective and, based on
      the date of the prospectus forming a part of the registration statement and
      the
      age of the financial statements contained in the registration statement, the
      registration statement can be used by the Holder in connection with the sale
      of
      the Common Stock for at least three months without the need to file a
      post-effective amendment to update the registration statement, and there shall
      not have occurred any material event concerning either of the Borrowers for
      which disclosure would be necessary in order that the information contained
      in
      the registration statement is true and correct in all material respects and
      does
      not omit any information necessary to make the information contained therein
      not
      misleading. The notice of required conversion shall include the certificate
      of
      the Borrowers’ respective chief executive officers as to the matters set forth
      in this Section 2.7.1.

     

    2.7.2. The
      Common Stock shall be traded on the OTC Bulletin Board, the Nasdaq Stock Market
      or the New York or American Stock Exchange and shall be eligible for transfer
      using the facilities of the Depository Trust Company (the “DTC Program”);
      NaturalNano shall not have received notice from any such market or exchange
      to
      the effect that the Common Stock may be subject to delisting from such market
      or
      exchange, and no event shall have occurred which would result in the delisting
      of the Common Stock from such market.

     

    2.7.3. The
      closing price of the Common Stock on the principal market or exchange on which
      the stock is traded is not less than $1.00 for not less than 20 consecutive
      trading days ending on the date prior to the date on which NaturalNano gives
      notice to the Holder exercising its rights under this Section 2.7.

     

    2.7.4. NaturalNano
      will tender to the Holder such number of shares of Common Stock as are issuable
      upon conversion of the principal amount of this Note being converted, but not
      such number of shares as would result in a violation of the 4.99% Limitation,
      as
      hereinafter defined.

     

    2.7.5. Any
      partial exercise of the rights under this Section 2.7 shall be made
      proportionately as to the Holder and all other holders of the
      Notes.

     

    2.8. Limitation
      on Right to Convert or Exercise Securities.

     

    2.8.1. Notwithstanding
      any other provision of this Note, except as expressly provided in this Note,
      the
      Holder shall not be entitled to convert this Note into
      shares of Common Stock to the extent that such conversion would result in
      beneficial ownership by the Holder and its Affiliates, as defined in the Loan
      Agreement, of more than 4.99% of the then outstanding number of shares of Common
      Stock on such date. For the purposes of this Agreement beneficial ownership
      shall be determined in accordance with Section 13(d) of the 1934 Act, and
      Regulation 13d-3 thereunder. The limitation set forth in this Section 2.4 is
      referred to as the “4.99%
      Limitation.”
The
      4.99% Limitation may not be waived by the Holder or by the Borrowers, and any
      attempted wavier or modification of the 4.99% Limitation shall be void;
      provided, however, that to the extent provided in the Loan Agreement and Section
      2.7.4 of the Note, the references in this Section 2.8 to 4.99% shall be deemed
      to be 9.99%.

    
      
         

      

      
        -
          5 -

        
          

        

      

      
         

      

    

    2.8.2. The
      4.99%
      Limitation shall terminate upon the close of business on the business day
      immediately preceding the date fixed for consummation of any transaction
      resulting in a Change of Control of the Company. A “Change in Control” means a
      consolidation or merger of the Company with or into another company or entity
      in
      which the Company is not the surviving entity or the sale of all or
      substantially all of the assets of the Company to another company or entity
      not
      controlled by the then existing stockholders of the Company in a transaction
      or
      series of transactions. Upon the occurrence of a Change of Control, the Company
      shall promptly send written notice thereof, by hand delivery or by overnight
      delivery, to the Holder.

     

    2.9. Mechanics
      of Conversion.

     

    2.9.1. Delivery
      of Certificate Upon Conversion.
      Except
      as otherwise set forth herein, not later than the Delivery Date, NaturalNano
      shall deliver to the Holder (a) a certificate or certificates which, after
      the
      effective date of a registration statement covering the shares of Common Stock
      issuable upon conversion of this Note (the “Effective Date”), shall be free of
      restrictive legends and trading restrictions (other than those required by
      the
      Securities Act) representing the number of shares of Common Stock being acquired
      upon the conversion of the Note, and (b) a bank check in the amount of accrued
      and unpaid interest on the portion of the Note being converted unless the Holder
      converts such interest into Common Stock. After the Effective Date, NaturalNano
      shall, upon request of the Holder, deliver any certificate or certificates
      required to be delivered by NaturalNano under this Section 2.9 electronically
      through the Depository Trust Company or another established clearing company
      performing similar functions if NaturalNano’s transfer agent has the ability to
      deliver shares of Common Stock in such manner. If in the case of any Notice
      of
      Conversion such certificate or certificates are not delivered to or as directed
      by the applicable Holder by the Delivery Date, the Holder shall be entitled
      to
      elect by written notice to the Borrowers at any time on or before its receipt
      of
      such certificate or certificates thereafter, to rescind such conversion, in
      which event the conversion shall be deemed void ab initio.

     

    2.9.2. Obligation
      Absolute; Partial Liquidated Damages.
      NaturalNano’s obligations to issue and deliver the Common Stock upon conversion
      of this Note in accordance with the terms hereof are absolute and unconditional,
      irrespective of any action or inaction by the Holder to enforce the same, any
      waiver or consent with respect to any provision hereof, the recovery of any
      judgment against any Person or any action to enforce the same, or any setoff,
      counterclaim, recoupment, limitation or termination, or any breach or alleged
      breach by the Holder or any other Person of any obligation to the Borrowers
      or
      either of them or any violation or alleged violation of law by the Holder or
      any
      other Person, and irrespective of any other circumstance which might otherwise
      limit such obligation of the Borrowers to the Holder in connection with the
      issuance of such shares. In the event the Holder shall elect to convert any
      or
      all of this Note, NaturalNano may not refuse conversion based on any claim
      that
      such Holder or any one associated or affiliated with the Holder of has been
      engaged in any violation of law, agreement or for any other reason unless an
      injunction from a court, on notice, restraining and or enjoining conversion
      of
      all or part of this Note shall have been sought and obtained and NaturalNano
      posts a surety bond for the benefit of the Holder in the amount of 150% of
      the
      Conversion Value of Note outstanding, which is subject to the injunction, which
      bond shall remain in effect until the completion of arbitration or litigation
      of
      the dispute and the proceeds of which shall be payable to the Holder to the
      extent it obtains judgment. In the absence of an injunction precluding the
      same,
      NaturalNano shall issue the Common Stock or, if applicable, cash, upon a
      properly noticed conversion. If NaturalNano fails to deliver to the Holder
      such
      certificate or certificates pursuant to this Section 2.9 within two trading
      days
      of the Delivery Date applicable to such conversion, the Borrowers shall pay
      to
      the Holder, in cash, as liquidated damages and not as a penalty, for each $5,000
      of Conversion Value of Note being converted, $50 per trading day (increasing
      to
      $100 per trading day three (3) trading days after such damages begin to accrue
      and increasing to $200 per trading day six (6) trading days after such damages
      begin to accrue) for each trading day after the Delivery Date until such
      certificates are delivered. Nothing herein shall limit a Holder’s right to
      pursue actual damages for the Company’s failure to deliver certificates
      representing shares of Common Stock upon conversion within the period specified
      herein and such Holder shall have the right to pursue all remedies available
      to
      it hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief.

    
      
         

      

      
        -
          6 -

        
          

        

      

      
         

      

    

    2.9.3. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Conversion.
      If
      NaturalNano fails to deliver to the Holder such certificate or certificates
      pursuant to this Section 2.9 by the Delivery Date, and if after such Delivery
      Date the Holder purchases (in an open market transaction or otherwise) Common
      Stock to deliver in satisfaction of a sale by such Holder of the Common Stock
      which the Holder was entitled to receive upon the conversion relating to such
      Delivery Date (a “Buy-In”),
      then
      the Borrowers shall pay in cash to the Holder the amount by which (a) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      Common Stock so purchased exceeds (i) the product of (x) the aggregate number
      of
      shares of Common Stock that such Holder was entitled to receive from the
      conversion at issue multiplied by (y) the price at which the sell order giving
      rise to such purchase obligation was executed. For example, if the Holder
      purchases Common Stock having a total purchase price of $11,000 to cover a
      Buy-In with respect to an attempted conversion of this Note with respect to
      which the aggregate sale price giving rise to such purchase obligation is
      $10,000, under the immediately preceding sentence the Borrowers shall be
      required to pay the Holder $1,000. The Holder shall provide the Borrowers
      written notice indicating the amounts payable to the Holder in respect of the
      Buy-In, together with applicable confirmations and other evidence reasonably
      requested by the Borrowers. Nothing in this Section 2.9 shall limit a Holder’s
      right to pursue any other remedies available to it hereunder, at law or in
      equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to NaturalNano’s failure to timely deliver
      certificates representing shares of Common Stock upon conversion of the shares
      of this Note pursuant to its terms.

     

    2.9.4. Fractional
      Shares.
      Upon a
      conversion hereunder, NaturalNano shall not be required to issue stock
      certificates representing fractions of shares of the Common Stock. All
      fractional shares shall be carried forward and any fractional shares which
      remain after a Holder converts all of this Note shall be rounded up to the
      next
      whole number of shares.

     

    2.9.5. Transfer
      Taxes.
      The
      issuance of certificates for shares of the Common Stock on conversion of this
      Note shall be made without charge to the Holder thereof for any documentary
      stamp or similar taxes that may be payable in respect of the issue or delivery
      of such certificate, provided that the Borrowers shall not be required to pay
      any tax that may be payable in respect of any transfer involved in the issuance
      and delivery of any such certificate upon conversion in a name other than that
      of the Holder of this Note and the Borrowers shall not be required to issue
      or
      deliver such certificates unless or until the person or persons requesting
      the
      issuance thereof shall have paid to the Borrower the amount of such tax or
      shall
      have established to the satisfaction of the Borrowers that such tax has been
      paid.

     

    Section
      3. Events
      of Default.

     

    3.1. The
      entire unpaid principal amount of this Note, together with interest thereon
      shall, on written notice from the Holders of a majority of the outstanding
      principal amount of the Notes or by the Agent, as defined in the Loan Agreement,
      upon the request of the holders of a majority of the outstanding principal
      amount of the Notes, forthwith become and be due and payable if any one or
      more
      Events of Default shall have occurred (for any reason whatsoever and whether
      such happening shall be voluntary or involuntary or be affected or come about
      by
      operation of law pursuant to or in compliance with any judgment, decree or
      order
      of any court or any order, rule or regulation of any administrative or
      governmental body) and be continuing.

    
      
         

      

      
        -
          7 -

        
          

        

      

      
         

      

    

    3.2. The
      occurrence of any one or more of the following events or conditions shall
      constitute an “Event
      of Default”
under
      this Agreement:

     

    3.2.1. Borrowers’
      failure to make any payment of principal or interest or any other sums within
      fifteen (15) days of the date when due on this Note or on any of the
      Obligations, as defined in the Loan Agreement.

     

    3.2.2. Any
      representation or warranty or other statement made or furnished to the Holder
      by
      or on behalf of the Borrowers in the Loan Agreement or in any document or
      instrument furnished in connection with the Loan Agreement proves to have been
      false or misleading in any material respect when made or furnished.

     

    3.2.3. Breach
      of
      or failure in the due observance or performance in any material respect of
      any
      covenant, condition or agreement on the part of the Borrower to be observed
      or
      performed pursuant to the Loan Agreement or any of the other Transaction
      Documents and the failure to cure (if curable) any such breach or failure within
      fifteen (15) days after receipt of written notice thereof from the holder of
      any
      Note issued pursuant to the Loan Agreement to the Borrower; provided, however,
      that the obligations of NaturalNano with respect to its failure to file the
      Registration Statement (as defined in the Registration Rights Agreement, or
      the
      failure of the registration statement to be declared effective shall be subject
      to the provisions of the Registration Rights Agreement and not this Section
      3.

     

    3.2.4. Failure
      of the Common Stock to be listed or quoted on the OTC Bulletin Board, the Nasdaq
      Stock Market or the American or New York Stock Exchange for any
      reason.

     

    3.2.5. Failure
      of the Common Stock, at any time after the Registration Statement becomes
      effective, to be eligible for transfer pursuant to the DTC Program for any
      reason.

     

    3.2.6. Breach
      of
      or failure in the due observance or performance of any covenant, condition
      or
      agreement on the part of the Borrowers to be observed or performed pursuant
      to
      any Transaction Documents or breach by Borrower of any other agreement with
      Investors beyond the expiration of any grace or cure periods provided
      therein.

     

    3.2.7. A
      judgment or judgments for the payment of money in excess of $25,000 shall be
      rendered against either Borrower, and any such judgment shall remain unsatisfied
      and in effect for any period of 30 consecutive days without a stay of execution;
      or

     

    3.2.8. Either
      Borrower shall (a) apply for or consent to the appointment of a receiver,
      trustee or liquidator of all or a substantial part of any of its assets; (b)
      be
      unable, or admit in writing its inability, to pay its debts as they mature;
      (c)
      file or permit the filing of any petition, case arrangement, reorganization,
      or
      the like under any insolvency or bankruptcy law, or the adjudication of it
      as a
      bankrupt, or the making of an assignment for the benefit of creditors or the
      consenting to any form or arrangement for the satisfaction, settlement or delay
      of debt or the appointment of a receiver for all or any part of its properties;
      or (d) any action shall be taken by the Borrower for the purpose of effecting
      any of the foregoing; or

     

    3.2.9. An
      order,
      judgment or decree shall be entered, or a case shall be commenced, against
      either Borrower, without its application, approval or consent by any court
      of
      competent jurisdiction, approving a petition or permitting the commencement
      of a
      case seeking reorganization or liquidation of such Borrower or appointing a
      receiver, trustee or liquidator of the Borrower, or of all or a substantial
      part
      of the assets of the Borrower, and the Borrower, by any act, indicate its
      approval thereof, consent thereto, or acquiescence therein, or such order,
      judgment, decree or case shall continue unstayed and in effect for any period
      of
      90 consecutive days or an order for relief in connection therewith shall be
      entered; or

    
      
         

      

      
        -
          8 -

        
          

        

      

      
         

      

    

    3.2.10. If
      the
      Borrower shall dissolve or liquidate, or be dissolved or liquidated, or cease
      to
      legally exist, or merge or consolidate, or be merged or consolidated with or
      into any other corporation; or

     

    3.2.11. Failure
      by the Borrower to pay any other indebtedness or obligation in excess of
      $25,000, or if any such other indebtedness or obligation which is not subject
      to
      a bonafide dispute shall be accelerated, or if there exists any event of default
      under any instrument, document or agreement governing, evidencing or securing
      such other indebtedness or obligation which is not subject to a bonafide
      dispute; or

     

    3.2.12. Failure
      by the Borrower to take all steps necessary to grant Investors a perfected
      first
      priority security interest in any intellectual property acquired subsequent
      to
      the Closing Date; or 

     

    3.2.13. Substantial
      loss, theft, damage, or destruction of the Collateral provided to the Investors
      pursuant to this Agreement, and not covered by insurance in any material
      respect.

     

    Section
      4. Miscellaneous

     

    4.1. Usury
      Saving Provision.
      All
      payment obligations arising under this Note are subject to the express condition
      that at no time shall the Borrowers be obligated or required to pay interest
      at
      a rate which could subject the Holder to either civil or criminal liability
      as a
      result of being in excess of the maximum rate which the Borrowers are permitted
      by law to contract or agree to pay. If by the terms of this Note, the Borrowers
      are at any time required or obligated to pay interest at a rate in excess of
      such maximum rate, the applicable rate of interest shall be deemed to be
      immediately reduced to such maximum rate, and interest thus payable shall be
      computed at such maximum rate, and the portion of all prior interest payments
      in
      excess of such maximum rate shall be applied and shall be deemed to have been
      payments in reduction of principal.

     

    4.2. Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    4.3. Governing
      Law.
      This
      Agreement and the rights of the parties shall be construed and enforced in
      accordance with the laws of the State of New
      York
      applicable to agreements executed and to be performed wholly within such state
      and without regard to
      principles of conflicts of law.
      Each
      party irrevocably (a) consents to the jurisdiction of the federal and state
      courts situated
      in New
      York County, New York in
      any
      action that may be brought pursuant to this Agreement, and (b)
      submits to and accepts, with respect to its properties and assets, generally
      and
      unconditionally, the in personam jurisdiction of the aforesaid courts, waiving
      any defense that such court is not a convenient forum. In any such litigation
      to
      the extent permitted by applicable law, each party waives personal service
      of
      any summons, complaint or other process, and agrees that the service thereof
      may
      be made either (i) in the manner for giving of notices provided in Section
      4.5
      of this Note (other than by telecopier) or (ii) in any other manner permitted
      by
      law. 

    
      
         

      

      
        -
          9 -

        
          

        

      

      
         

      

    

    4.4. Waiver
      of Right to Trial by Jury.
      BORROWERS
      HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL
      BY
      JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN
      CONNECTION WITH THIS NOTE AND WAIVE ANY RIGHT TO BRING A COUNTERCLAIM AGAINST
      THE HOLDER IN ANY ACTION TO ENFORCE THIS NOTE. THIS WAIVER CONSTITUTES A
      MATERIAL INDUCEMENT FOR HOLDER TO ACCEPT THIS NOTE.

     

    4.5. Notice.
      All
      notices, requests or other communications required or permitted to be given
      under this Agreement to any party shall be in writing and shall be deemed to
      have been sufficiently given when delivered by personal service or sent by
      registered mail, overnight
      courier services with provided evidence of delivery or attempted
      delivery,
      or
      facsimile, to the Borrowers c/o NaturalNano, Inc., 15 Schoen Place, Pittsford,
      New York 14534-2025,
      telecopier (585) 267-4825, to the attention of the person who executed this
      Note
      on behalf of NaturalNano of this Agreement or to the Holder at its address
      set
      forth on the Borrower’s records.
      Either
      party may, be like notice, change the address or telecopy number or the person
      to whom notice is to be given.
      Notice
      shall be deemed given when received or when attempted delivery is made (based
      on
      evidence of attempted delivery by the United States Postal Service or an
      overnight courier or a messenger service), provided that notice by telecopier
      shall be deemed given when receipt is acknowledged by the
      recipient.

     

    4.6. Amendment
      Provision.
      The
      term “Note” and all reference thereto, as used throughout this instrument, shall
      mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented; provided, however, that the
      terms of the 4.99% Limitation may not be modified, amended or
      waived.

     

    4.7. Assignability.
      This
      Note shall be binding upon the Borrowers and their respective successors and
      assigns, and shall inure to the benefit of the Holder and its successors and
      assigns. The Borrowers may not assign any of its obligations under this Note
      without the consent of the Holder.

     

    4.8. Cost
      of Collection.
      If
      default is made in the payment of this Note, Borrowers shall pay the Holder
      hereof reasonable costs of collection, including reasonable attorneys’ fees,
      regardless of whether the Holder commenced litigation in order to enforce its
      rights under this Note.

     

    4.9. Stockholder
      Status.
      The
      Holder shall not have rights as a stockholder of NaturalNano with respect to
      unconverted portions of this Note. However, from and after the Conversion Date,
      the Holder will have all the rights of a shareholder of NaturalNano with respect
      to the shares of Common Stock to be received by Holder after delivery by the
      Holder of a Conversion Notice to the Borrower regardless of whether physical
      certificates shall have been delivered.

     

     

    [Signature
      on following page]

    
      
         

      

      
        -
          10 -

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the
      parties have caused this Agreement to be duly executed and delivered by the
      proper and duly authorized officers as of the date and year first above
      written.

     

    
      	 	 	 
	 	NATURALNANO,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:

	 	Title:
              

    

     

    
      	 	 	 
	 	NATURALNANO
              RESEARCH, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:

	 	Title:

    

    

    
      
         

      

      
        -
          11 -

        
          

        

      

      
         

      

    

    

    NOTICE
      OF CONVERSION

    

    (To
      be
      executed by the Holder in order to convert the Note)

    

    

    The
      undersigned hereby elects to convert $_________ of the principal and $_________
      of the interest due on the Note issued by NaturalNano, Inc. and NaturalNano
      Research, Inc. on March ___, 2007 into shares of Common Stock of NaturalNano,
      Inc. according to the conditions set forth in such Note, as of the date written
      below.

    

    Date
      of
      Conversion:__________________________________________

    

    Conversion
      Price:____________________________________________

    

    Number
      of
      Shares To Be Delivered:_______________________________

    

    Signature:__________________________________________________

    

    Print
      Name and
      Title:_____________________________________________________________________________________________________________________

    

    Address:______________________________________________________________________________________________________________________________

    

    ______________________________________________________________________________________________________________________________

    
      
         

      

      
        -
          12 -Exhibit
      4.3

     

    
      	
              WA-[ 
                 ]

            	
            	
              Warrant
                to Purchase

              **       
                **

              Shares
                of Common Stock

            

    

     

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. NEITHER THIS WARRANT NOR SUCH SHARES OF COMMON STOCK
      MAY
      BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND ANY APPLICABLE
      STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
      ISSUING CORPORATION THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    Void
      after 5:30 P.M. New York City time on March 7, 2011

     

    SERIES
      A COMMON STOCK PURCHASE WARRANT

    (subject
      to mandatory exercise as provided in Section 10 of this
      Warrant)

     

    OF

     

    NATURALNANO,
      INC.

     

    This
      is
      to certify that, FOR VALUE RECEIVED, [ ]., or registered assigns (“Holder”), is
      entitled to purchase, on the terms and subject to the provisions of this
      Warrant, from NaturalNano, Inc., a Nevada corporation (the “Company”), at an
      exercise price (the “Exercise Price”) of twenty two cents ($0.22) per share, [ ]
      shares of common stock, par value $.001 per share (“Common Stock”), of the
      Company at any time during the period (the “Exercise Period”) commencing on the
      date of this Warrant and ending at 5:30 P.M. New York City time, on March 7,
      2011; provided, however, that if such date is a day on which banking
      institutions in the State of New York are authorized by law to close, then
      on
      the next succeeding day which such banks are not authorized to close. The number
      of shares of Common Stock to be issued upon the exercise or conversion of this
      Warrant and the price to be paid for a share of Common Stock may be adjusted
      from time to time in the manner set forth in this Warrant. The shares of Common
      Stock deliverable upon such exercise or conversion, and as adjusted from time
      to
      time, are hereinafter sometimes referred to as “Warrant Shares,” and the
      exercise price for the purchase of a share of Common Stock pursuant to this
      Warrant in effect at any time, as the same may be adjusted from time to time,
      is
      hereinafter sometimes referred to as the “Exercise Price.” This Warrant was
      issued pursuant to a Loan and Security Agreement (the “Loan Agreement”) dated
      March 7, 2007, between the Company, the initial holder of this Warrant and
      the
      other investors named therein, and the holder of this Warrant is entitled to
      the
      benefits of the Loan Agreement and the Registration Rights Agreement, as defined
      in the Loan Agreement. The date of the initial issuance of this Warrant is
      the
      Closing Date under the Loan Agreement. Reference in this Warrant to “all of the
      Warrants” or words of like import shall relate to all of the Series A Common
      Stock Purchase Warrants issued pursuant to the Loan Agreement.

     

    1. Exercise
      of Warrant.
      

     

    (a) This
      Warrant may be exercised in whole at any time or in part from time to time
      during the Exercise Period by presentation and surrender hereof to the Company
      at its principal office, or at the office of its stock transfer agent, if any,
      with the Purchase Form annexed hereto duly executed and accompanied by payment
      of the Exercise Price for the number of shares of Common Stock specified in
      such
      form. Payment of the Exercise Price may be made either by check (subject to
      collection) or wire transfer in the amount of the Exercise Price. If this
      Warrant should be exercised in part only, whether pursuant to this Section
      1(a)
      or pursuant to Section 1(b) of this Warrant, the Company shall, upon surrender
      of this Warrant for cancellation, execute and deliver a new Warrant evidencing
      the rights of the Holder hereof to purchase the balance of the shares of Common
      Stock purchasable hereunder. The holder of this Warrant shall not be required
      to
      physically deliver this Warrant upon exercise of this Warrant pursuant to this
      Section 1(a) or on conversion of this Warrant as provided in Section 1(b) of
      this Warrant. Upon receipt by the Company of this Warrant at its office, or
      by
      the stock transfer agent of the Company at its office, in proper form for
      exercise, or upon delivery of the notice of conversion or exercise without
      delivery of this Warrant, the Holder shall be deemed to be the holder of record
      of the shares of Common Stock issuable upon such exercise, notwithstanding
      that
      the stock transfer books of the Company shall then be closed or that
      certificates representing such shares of Common Stock shall not then be actually
      delivered to the Holder.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) In
      lieu
      of exercising this Warrant by payment of the Exercise Price pursuant to Section
      1(a) of this Warrant, and subject to the limitations provisions of Section
      1(c)
      of this Warrant, the Holder shall have the right, on notice to the Company,
      to
      convert this Warrant, in whole or in part to the extent that this Warrant has
      not been exercised pursuant to said Section 1(a) of this Warrant or converted
      pursuant to this Section 1(b), for the number of shares of Common Stock equal
      to
      a fraction of the number of shares of Common Stock as to which this Warrant
      is
      being converted, the numerator of which is excess of the Current Market Value
      (as defined below) per share over the total cash exercise price per share,
      and
      the denominator of which is the Market Price of the Common Stock as of the
      trading day immediately prior to the Conversion Date. For the purpose of this
      Warrant, the terms (x) “Current Market Value” shall be the last sales per share
      of the Common Stock (as reported by Bloomberg, L.P. or, if the Common Stock
      is
      traded on the Nasdaq Stock Market or the New York or American Stock Exchange,
      as
      reported by such market or exchange) as of the trading day immediately prior
      to
      the Conversion Date, and (y) “Market Price of the Common Stock” shall be the
      average of the low bid price per share of the Common Stock (as reported by
      Bloomberg L.P. or, if the Common Stock is traded on the Nasdaq Stock Market
      or
      the New York or American Stock Exchange, as reported by such market or exchange)
      for the five trading days prior to the Conversion Date. The Conversion Date
      shall mean, the date on which the Holder gives the Company notice of conversion
      by hand delivery or telecopier. In the event that Bloomberg, L.P. shall not
      provide such information, the information shall be provided by a person or
      entity that regularly provides price and volume information that is selected
      by
      the Holders of a majority of the Warrants then outstanding, based on the number
      of shares of Common Stock issuable upon exercise of the Warrants. The parties
      understand and agree that, for purposes of Rule 144 of the Securities and
      Exchange Commission under the Securities Act of 1933, as amended (the
“Securities Act”), if the holder converts the Warrant pursuant to this Section
      1(b), its holding period will commence on the Closing Date, as defined in the
      Loan Agreement.

     

    (c) The
      holder of this Warrant may
      not
make
      a
      cashless exercise pursuant
      to Section 1(b) of this Warrant (i) during the twelve months following the
      initial issuance of this Warrant and (ii) thereafter if the sale by the Holder
      of the Warrant Shares is covered by
      an
      effective registration statement.

     

    (d) The
      Holder shall not be entitled to exercise or convert this Warrants to the extent
      that, on the date of such conversion or exercise, the sum of (i) the number
      of
      shares of Common Stock beneficially owned by the Holder and its Affiliates,
      as
      defined in the Loan Agreement, on such date plus (ii) the number of shares
      of
      Common Stock issuable upon exercise or conversion of this Warrant would result
      in the Holder and its Affiliates beneficially owning more than 4.99% of the
      outstanding shares of Common Stock of the Company, except as expressly provided
      in Section 1(e) of this Agreement. For the purposes of the provision to the
      immediately preceding sentence, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Exchange Act of 1934, as amended, and
      Regulation 13d-3 of the Commission thereunder. This limitation shall not affect
      the ability of the Investor to exercise or convert the warrants in a manner
      which would result in the Company having issued in the aggregate shares of
      Common Stock in excess of the 4.99% limitation as long as the Holder does not,
      at any one time as a result of such conversion or exercise, beneficially own
      more than such percentage. Under conditions set forth in the Loan Agreement
      and
      in Section 10(a)(i) of this Warrant, the reference in this Section 1(d) to
      4.99%
      shall mean 9.99%. The limitation set forth in this Section 1(d) is referred
      to
      as the “4.99% Limitation.” The 4.99% Limitation may not be waived, modified or
      amended and any attempted waiver, modification or amendment of the 4.99%
      Limitation shall be void.

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    (e) The
      4.99%
      Limitation shall terminate upon the close of business on the business day
      immediately preceding the date fixed for consummation of any transaction
      resulting in a Change of Control of the Company. A “Change in Control” means a
      consolidation or merger of the Company with or into another company or entity
      in
      which the Company is not the surviving entity or the sale of all or
      substantially all of the assets of the Company to another company or entity
      not
      controlled by the then existing stockholders of the Company in a transaction
      or
      series of transactions. Upon the occurrence of a Change of Control, the Company
      shall promptly send written notice thereof, by hand delivery or by overnight
      delivery, to the Holder.

     

    2. Reservation
      and Delivery of Shares.

     

    (a) The
      Company hereby agrees that at all times there shall be reserved for issuance
      upon exercise of this Warrant such number of shares of Common Stock as shall
      be
      required for issuance and delivery upon exercise or conversion of this Warrant
      and that it shall not increase the par value of the Common Stock.

     

    (b) Except
      as
      otherwise set forth herein, upon delivery of a completed Purchase Form
      accompanied, if the exercise is not a cashless exercise, by payment of the
      Exercise Price, not later than three (3) business days after the Exercise Date
      (such third day being the “Delivery Date”), the Company shall deliver to the
      Holder a certificate or certificates which, after the effective date of a
      registration statement covering the shares of Common Stock issuable upon
      exercise of this Warrant (the “Effective Date”), shall be free of restrictive
      legends and trading restrictions (other than those required by the Securities
      Act) representing the number of shares of Common Stock being acquired upon
      such
      exercise. After the Effective Date, the Company shall, upon request of the
      Holder, deliver any certificate or certificates required to be delivered by
      the
      Company under this Section 2(b) electronically through the Depository Trust
      Company or another established clearing company performing similar functions
      if
      the Company’s transfer agent has the ability to deliver shares of Common Stock
      in such manner. If in the case of any exercise of this Warrant such certificate
      or certificates are not delivered to or as directed by the applicable Holder
      by
      the second day after the Delivery Date, the Holder shall be entitled to elect
      by
      written notice to the Company at any time on or before its receipt of such
      certificate or certificates thereafter, to rescind such conversion, in which
      event the conversion shall be deemed void ab initio.

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

    (c) The
      Company’s obligations to issue and deliver the Common Stock upon exercise of
      this Warrant in accordance with the terms hereof are absolute and unconditional,
      irrespective of any action or inaction by the Holder to enforce the same, any
      waiver or consent with respect to any provision hereof, the recovery of any
      judgment against any Person or any action to enforce the same, or any setoff,
      counterclaim, recoupment, limitation or termination, or any breach or alleged
      breach by the Holder or any other Person of any obligation to the Company or
      any
      violation or alleged violation of law by the Holder or any other Person, and
      irrespective of any other circumstance which might otherwise limit such
      obligation of the Company to the Holder in connection with the issuance of
      such
      shares. In the event the Holder shall elect to exercise this Warrant in whole
      or
      in part, the Company may not refuse to effect such exercise based on any claim
      that the Holder or any one associated or affiliated with the Holder of has
      been
      engaged in any violation of law, agreement or for any other reason unless an
      injunction from a court, on notice, restraining and or enjoining such exercise
      shall have been sought and obtained and the Company posts a surety bond for
      the
      benefit of the Holder in the amount of 150% of the Value, which is subject
      to
      the injunction, which bond shall remain in effect until the completion of
      arbitration or litigation of the dispute and the proceeds of which shall be
      payable to the Holder to the extent it obtains judgment. In the absence of
      an
      injunction precluding the same, the Company shall issue the Common Stock upon
      a
      properly executed Purchase Form. If the Company fails to deliver to the Holder
      such certificate or certificates pursuant to this Section 2(b) within two
      trading days of the Delivery Date applicable to such exercise, the Company
      shall
      pay to the Holder, in cash, as liquidated damages and not as a penalty, for
      each
      $5,000 of Value of the Warrant being exercised, $50 per trading day (increasing
      to $100 per trading day three (3) trading days after such damages begin to
      accrue and increasing to $200 per trading day six (6) trading days after such
      damages begin to accrue) for each trading day after the Delivery Date until
      such
      certificates are delivered. Nothing herein shall limit a Holder’s right to
      pursue actual damages for the Company’s failure to deliver certificates
      representing shares of Common Stock upon exercise within the period specified
      herein and such Holder shall have the right to pursue all remedies available
      to
      it hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief.

     

    (d) If
      the
      Company fails to deliver to the Holder such certificate or certificates pursuant
      to this Section 2(b) by the Delivery Date, and if after such Delivery Date
      the
      Holder purchases (in an open market transaction or otherwise) Common Stock
      to
      deliver in satisfaction of a sale by such Holder of the Common Stock which
      the
      Holder was entitled to receive upon the exercise relating to such Delivery
      Date
      (a “Buy-In”),
      then
      the Company shall pay in cash to the Holder the amount by which (a) the Holder’s
      total purchase price (including brokerage commissions, if any) for the Common
      Stock so purchased exceeds (i) the product of (x) the aggregate number of shares
      of Common Stock that such Holder was entitled to receive from the exercise
      at
      issue multiplied by (y) the price at which the sell order giving rise to such
      purchase obligation was executed. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of this Warrant with respect to which the aggregate sale
      price giving rise to such purchase obligation is $10,000, under the immediately
      preceding sentence the Company shall be required to pay the Holder $1,000.
      The
      Holder shall provide the Company written notice indicating the amounts payable
      to the Holder in respect of the Buy-In, together with applicable confirmations
      and other evidence reasonably requested by the Borrowers. Nothing in this
      Section 2(d) shall limit a Holder’s right to pursue any other remedies available
      to it hereunder, at law or in equity including, without limitation, a decree
      of
      specific performance and/or injunctive relief with respect to the Company’s
      failure to timely deliver certificates representing shares of Common Stock
      upon
      exercise of this Warrant pursuant to its terms.

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

    3. Fractional
      Shares.
      No
      fractional shares or script representing fractional shares shall be issued
      upon
      the exercise of this Warrant. With respect to any fraction of a share called
      for
      upon any exercise or conversion of this Warrant, the Company shall round the
      number of shares of Common Stock to be issued to the next higher integral number
      of shares 

     

    4. Exchange,
      Transfer, Assignment or Loss of Warrant.
      This
      Warrant is exchangeable, without expense, at the option of the Holder, upon
      presentation and surrender hereof to the Company or at the office of its stock
      transfer agent, if any, for other Warrants of different denominations entitling
      the holder thereof to purchase in the aggregate the same number of shares of
      Common Stock purchasable hereunder. Subject to the provisions of Section 11
      of
      this Warrant, upon surrender of this Warrant to the Company or at the office
      of
      its stock transfer agent, if any, with the Assignment Form annexed hereto duly
      executed and funds sufficient to pay any transfer tax, the Company shall,
      without charge, execute and deliver a new Warrant in the name of the assignee
      named in such instrument of assignment and this Warrant shall promptly be
      canceled. This Warrant may be divided or combined with other Warrants which
      carry the same rights upon presentation hereof at the office of the Company
      or
      at the office of its stock transfer agent, if any, together with a written
      notice specifying the names and denominations in which new Warrants are to
      be
      issued and signed by the Holder hereof. The term “Warrant” as used herein
      includes any Warrants into which this Warrant may be divided or exchanged.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Warrant, and (in the case of loss, theft
      or
      destruction) of reasonably satisfactory indemnification, and upon surrender
      and
      cancellation of this Warrant, if mutilated, the Company will execute and deliver
      a new Warrant of like tenor. Any such new Warrant executed and delivered shall
      constitute an additional contractual obligation on the part of the Company,
      whether or not this Warrant so lost, stolen, destroyed, or mutilated shall
      be at
      any time enforceable by anyone.

     

    5. Rights
      of the Holder.
      The
      Holder shall not, by virtue of this Warrant, be entitled to any rights of a
      stockholder in the Company, either at law or equity, and the rights of the
      Holder are limited to those expressed in the Warrant, the Loan Agreement and
      the
      Registration Rights Agreement and are not enforceable against the Company except
      to the extent set forth herein and therein.

     

    6. Adjustments
      To Exercise Price.
      The
      Exercise Price in effect at any time and the number and kind of securities
      purchasable upon exercise of each Warrant shall be subject to adjustment as
      follows:

     

    (a) In
      case
      the Company shall, subsequent to the date of the initial issuance of this
      Warrant, (i) pay a dividend or make a distribution on its shares of Common
      Stock
      in shares of Common Stock, (ii) subdivide or reclassify its outstanding Common
      Stock into a greater number of shares or otherwise effect a stock split or
      distribution, or (iii) combine or reclassify its outstanding Common Stock into
      a
      smaller number of shares or otherwise effect a reverse split, then,
      in
      each such event, the Exercise Price shall, simultaneously with the happening
      of
      such event, be adjusted by multiplying the then Exercise Price by a fraction,
      the numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such event and the denominator of which shall be the number
      of shares of Common Stock outstanding immediately after such event, and the
      product so obtained shall thereafter be the Exercise Price then in effect.
      The
      Exercise Price, as so adjusted, shall be readjusted in the same manner upon
      the
      happening of any successive event or events described herein in this
      Section 6. The number of shares of Common Stock that the Holder of this
      Warrant shall thereafter, on the exercise hereof as provided in Section 1,
      be entitled to receive shall be adjusted to a number determined by multiplying
      the number of shares of Common Stock that would otherwise (but for the
      provisions of this Section 6(a)) be issuable on such exercise by a fraction
      of which (a) the numerator is the Exercise Price that would otherwise (but
      for the provisions of this Section 6(a)) be in effect, and (b) the
      denominator is the Exercise Price in effect on the date of such exercise (prior
      to any adjustment pursuant to Section 6(f) of this Warrant).

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

    (b) In
      case
      the Company shall, subsequent to the date of the initial issuance of this
      Warrant, distribute to all holders of Common Stock evidences of its indebtedness
      or assets (excluding (x) cash dividends or distributions paid out of current
      earnings and (y) dividends or distributions referred to in Section 6(a) of
      this
      Warrant), then in each such case the Exercise Price in effect thereafter shall
      be determined by multiplying the Exercise Price in effect immediately prior
      thereto by a fraction, of which the numerator shall be the total number of
      shares of Common Stock outstanding multiplied by the Current Market Price per
      share of Common Stock, less the fair market value (as determined by the
      Company’s Board of Directors) of said assets or evidences of indebtedness so
      distributed or of such rights or warrants, and of which the denominator shall
      be
      the total number of shares of Common Stock outstanding multiplied by such
      Current Market Price per share of Common Stock. Such adjustment shall be made
      successively whenever such a record date is fixed. Such adjustment shall be
      made
      whenever any such distribution is made and shall become effective immediately
      after the record date for the determination of stockholders entitled to receive
      such distribution.

     

    (c) If,
      while
      this Warrant is outstanding, the Company sells or otherwise issues any
      Convertible Securities, shares of Common Stock, or shares of any class of
      capital stock at a price per share of Common Stock, or with a conversion right
      or exercise price to acquire Common Stock at a price per share of Common Stock
      (other than (x) an Exempt Issuance, as defined in the Loan Agreement, or (y)
      an
      issuance covered by Section 6(a) or 6(b) of this Warrant), that is less than
      the
      Exercise Price in
      effect
      at the time of such sale (such lower price being referred to as the “Lower
      Price”), the Exercise Price shall be reduced to an adjusted Exercise Price which
      is equal to the Lower Price. Such
      adjustment shall be made successively whenever any such sale or other issuance
      at a Lower Price is made. The term “Convertible Security” shall mean any debt or
      equity security or instrument upon the conversion or exercise of which shares
      of
      Common Stock may be issued.

     

    (i)
      For
      purposes of this Section 6(c), the price at which such shares of Common Stock
      are issued shall be the consideration paid for the Common Stock or the price
      at
      which the Company agrees to issue shares of Common Stock. The price at which
      any
      Convertible Security is issued shall be the amount received for the issuance
      of
      the Convertible Security plus the minimum amount of additional consideration
      which is payable upon exercise or conversion of the Convertible Security. If
      the
      Company issues securities as a unit, regardless of whether such issuance is
      defined as a unit, a separate computation shall be made with respect to (x)
      shares of Common Stock and convertible securities (based on the maximum number
      of shares of Common Stock which may be issued upon conversion, including
      conversion of interest or dividends, but excluding warrants, rights and options)
      and (y) warrants, options or rights, with a separate computation being made
      as
      to each warrant, option or right which is issued. If warrants, options or rights
      are issued, the Company shall not be deemed to have received any consideration
      for the issuance of the shares upon exercise of the warrant, option or right
      other than the lowest exercise price provided therein. If the Company has an
      agreement which provides for the issuance of shares at a fixed price or a
      formula price with a maximum price, the Company shall be deemed to have issued
      securities at such maximum price regardless of whether any securities are
      actually sold, and any issuance of securities below such maximum price shall,
      if
      such price is a Lower Price, be a sale which results in an adjustment pursuant
      to this Section 2(c).

     

    (ii)
      By
      way of example, if the Company issues for $1,000,000 securities consisting
      of
      500,000 shares of Common Stock and a convertible note for $1,000,000 with a
      conversion price of $.40 and warrants to purchase 1,000,000 shares of Common
      Stock at $.40, the Lower Price would be determined by dividing the total
      consideration paid for the Common Stock and the note ($1,000,000) by the number
      of shares of Common Stock issued (3,000,000 shares, representing the 500,000
      shares issued at closing plus the 2,500,000 shares issuable upon conversion
      of
      the note), which would result in Lower Price of $.333, which would become the
      adjusted Exercise Price of this Warrant. If, in the same example, the exercise
      price of the warrant were $.30 per share, the Lower Price would be $.30, which
      would become the adjusted Exercise Price. If, in either case, the conversion
      price of all or any part of the convertible notes or the exercise price of
      all
      or any of the warrants were subsequently reduced, a further adjustment would
      be
      made.

     

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

     

    (iii)
      Any
      stock or convertible securities (other than warrants or options which shall
      be
      valued at the lowest stated exercise price thereof) issued for services that
      are
      not Exempt Issuances shall, for purposes of this Warrant, be valued at the
      par
      value thereof unless such issuance is made with the prior written approved
      of
      the Investors, as defined in the Loan Agreement, in which event the securities
      shall be valued in the manner as set forth in the Investors’
approval.

     

    (d) In
      case
      the Company shall, subsequent to the date of initial issuance of this Warrant,
      issue rights or warrants to all holders of its Common Stock entitling them
      to
      subscribe for or purchase shares of Common Stock (or securities convertible
      into
      Common Stock) at a price (or having a conversion price per share) less than
      the
      Current Market Price per share of Common Stock for the record date mentioned
      below, if issuance does not result in an adjustment pursuant to Section 6(c)
      of
      this Warrant, the Exercise Price shall be adjusted to an adjusted Exercise
      equal
      to the price determined by multiplying the Exercise Price in effect immediately
      prior to the date of such issuance by a fraction, of which the numerator shall
      be the number of shares of Common Stock outstanding on the record date mentioned
      below plus the number of additional shares of Common Stock which the aggregate
      offering price of the total number of shares of Common Stock so offered (or
      the
      aggregate conversion price of the convertible securities so offered) would
      purchase at such Current Market Price per share of the Common Stock, and of
      which the denominator shall be the number of shares of Common Stock outstanding
      on such record date plus the number of additional shares of Common Stock offered
      for subscription or purchased (or into which the convertible securities so
      offered are convertible). Such adjustment shall be made successively whenever
      such rights or warrants are issued and shall become effective immediately after
      the record date for the determination of stockholders entitled to receive such
      rights or warrants; and shall be effective regardless of whether such rights
      are
      exercised or expire in whole or in part unexercised. The provisions of this
      Section 6(d) are in addition to the provisions of Section 6(c) and any
      adjustment pursuant to this Section 6(d) shall be made after the application
      of
      Section 6(c).

     

    (e) Subject
      to the provisions of Section 6(a) of this Warrant, whenever the Exercise Price
      payable upon exercise of each Warrant is adjusted pursuant to this Section
      6,
      the number of shares of Common Stock issuable upon exercise or conversion of
      this Warrant shall simultaneously be adjusted by multiplying the number of
      shares of Common Stock issuable upon exercise of each Warrant in effect on
      immediately prior to the adjustment by the Exercise Price then in effect and
      dividing the product so obtained by the Exercise Price, as adjusted. In no
      event
      shall the Exercise Price per share be less than the par value per share, and,
      if
      any adjustment made pursuant to said Section 6 would result in an Exercise
      Price
      which would be less than the par value per share, then, in such event, the
      Exercise Price per share shall be the par value per share; provided, however,
      that the limitation contained in this sentence shall not affect the number
      of
      shares of Common Stock issuable upon exercise or conversion of this
      Warrant.

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

    (f) In
      the
      event that at any time, as a result of an adjustment made pursuant to this
      Section 6, the Holder of any Warrant thereafter shall become entitled to receive
      any shares of the Company, other than Common Stock, thereafter the number of
      such other shares so receivable upon exercise of any Warrant shall be subject
      to
      adjustment from time to time in a manner and on terms as nearly equivalent
      as
      practicable to the provisions with respect to the Common Stock contained in
      this
      Section 6.

     

    (g) Irrespective
      of any adjustments in the Exercise Price or the number or kind of shares
      purchasable upon exercise of Warrants, Warrants theretofore or thereafter issued
      may continue to express the same price and number and kind of shares as are
      stated in this and similar Warrants initially issued by the
      Company.

     

    7. Officer’s
      Certificate.
      Whenever the Exercise Price shall be adjusted as required by the provisions
      of
      Section 6 of this Warrant, the Company shall forthwith file in the custody
      of
      its Secretary or an Assistant Secretary at its principal office and with its
      stock transfer agent, if any, an officer’s certificate showing the adjusted
      Exercise Price and the adjusted number of shares of Common Stock issuable upon
      exercise of each Warrant, determined as herein provided, setting forth in
      reasonable detail the facts requiring such adjustment, including a statement
      of
      the number of additional shares of Common Stock, if any, and such other facts
      as
      shall be necessary to show the reason for and the manner of computing such
      adjustment. Each such officer’s certificate shall be made available at all
      reasonable times for inspection by the Holder, and the Company shall, forthwith
      after each such adjustment, mail, by certified mail, return receipt requested
      and by telecopier and e-mail, a copy of such certificate to the Holder at the
      Holder’s address set forth in the Company’s Warrant Register.

     

    8. Notices
      To Warrant Holders.
      So long
      as this Warrant shall be outstanding, (a) if the Company shall pay any dividend
      or make any distribution upon Common Stock (other than a regular cash dividend
      payable out of retained earnings) or (b) if the Company shall offer to the
      holders of Common Stock for subscription or purchase by them any share of any
      class or any other rights or (c) if any capital reorganization of the Company,
      reclassification of the capital stock of the Company, consolidation or merger
      of
      the Company with or into another corporation, sale, lease or transfer of all
      or
      substantially all of the property and assets of the Company to another
      corporation, or voluntary or involuntary dissolution, liquidation or winding
      up
      of the Company shall be effected, then in any such case, the Company shall
      cause
      to be mailed by certified mail, return receipt requested, to the Holder, at
      least fifteen days prior to the date specified in clauses (i) and (ii), as
      the
      case may be, of this Section 8 a notice containing a brief description of the
      proposed action and stating the date on which (i) a record is to be taken for
      the purpose of such dividend, distribution or rights, or (ii) such
      reclassification, reorganization, consolidation, merger, conveyance, lease,
      dissolution, liquidation or winding up is to take place and the date, if any
      is
      to be fixed, as of which the holders of Common Stock or other securities shall
      receive cash or other property deliverable upon such reclassification,
      reorganization, consolidation, merger, conveyance, dissolution, liquidation
      or
      winding up.

     

    9. Reclassification,
      Reorganization or Merger.
      In case
      of any reclassification, capital reorganization or other change of outstanding
      shares of Common Stock of the Company, or in case of any consolidation or merger
      of the Company with or into another corporation (other than a merger in which
      the Company is the continuing corporation and which does not result in any
      reclassification, capital reorganization or other change of outstanding shares
      of Common Stock of the class issuable upon exercise of this Warrant) or in
      case
      of any sale, lease or conveyance to another corporation of the property of
      the
      Company as an entirety, the Company shall, as a condition precedent to such
      transaction, cause effective provisions to be made so that the Holder shall
      have
      the right thereafter by exercising this Warrant, to purchase the kind and amount
      of shares of stock and other securities and property receivable upon such
      reclassification, capital reorganization and other change, consolidation,
      merger, sale or conveyance by a holder of the number of shares of Common Stock
      which might have been purchased upon exercise of this Warrant immediately prior
      to such reclassification, change, consolidation, merger, sale or conveyance.
      Any
      such provision shall include provision for adjustments which shall be as nearly
      equivalent as may be practicable to the adjustments provided for in this
      Warrant. The foregoing provisions of this Section 9 shall similarly apply to
      successive reclassifications, capital reorganizations and changes of shares
      of
      Common Stock and to successive consolidations, mergers, sales or conveyances.
      Notwithstanding the foregoing, in the event that, as a result of any merger,
      consolidation, sale of assets or similar transaction, all of the holders of
      Common Stock receive and are entitled to receive no consideration other than
      cash in respect of their shares of Common Stock, then, at the effective time
      of
      the transaction, the rights to purchase Common Stock pursuant to the Warrants
      shall terminate, and the holders of the Warrants shall, notwithstanding any
      other provisions of this Warrant, receive in respect of each Warrant to purchase
      one (1) share of Common Stock, upon presentation of the Warrant Certificate,
      the
      amount by which the consideration per share of Common Stock payable to the
      holders of Common Stock at such effective time exceeds the Exercise Price in
      effect on such effective date, without giving effect to the transaction;
      provided, however, that if such transaction would, but for this Section 9,
      result in a reduction in the Exercise Price pursuant to Section 6(c) of this
      Warrant, the Exercise Price shall be reduced to reflect that transaction. In
      the
      event that, in such a transaction, the value of the consideration to be received
      per share of Common Stock is equal to or less than the Exercise Price, the
      Warrants shall automatically terminate and no consideration will be paid with
      respect thereof.

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

     

    10. Mandatory
      Exercise.

     

    (a) i)The
      Company shall have the right at any time, on not less than forty five (45)
      days
      written notice, to require the Holder to exercise the outstanding Warrants,
      if,
      and only if, the Market Price of the Common Stock shall equal or exceed the
      “Target Price” and the “Trading Volume” shall equal or exceed the “Target
      Volume” on any consecutive twenty (20) trading days ending on the trading day
      prior to the date that the Company delivers notice of mandatory exercise. Notice
      of mandatory exercise shall be mailed by first class mail, postage prepaid,
      and
      sent by telecopier or e-mail, and shall be deemed given on the date of receipt
      of the notice by the Holder, provided that receipt is acknowledged. The Company
      must require that all Warrants be exercised if it requires any Warrants to
      be
      exercised; provided, however, that if exercise pursuant to this Section 10(a)(i)
      would result in a violation of the 4.99% Limitation (provided, however, that
      for
      purposes of this Section 10, the references to 4.99% shall be deemed to be
      9.99%), the Company shall not have the right to require exercise of the Holders’
Warrants to the extent that the exercise of the Warrants would result in such
      a
      violation. In such event, the Company may subsequently exercise its right to
      require exercise of the remaining Warrants held by the Holder at such future
      time as, and to the extent that, such exercise would not result in a violation
      of the 4.99% Limitation.

     

    (ii)
      As
      used in this Section 10, the following terms shall have the meanings set forth
      below:

     

    (A) “Mandatory
      Exercise Date” shall mean the date by which the Warrants are required to be
      exercised, as set forth in the notice of mandatory exercise from the Company
      to
      the Holders of the Warrants, subject to Section 10(b)(ii) of this
      Warrant.

     

    (B) “Market
      Price” shall mean the closing price of the Common Stock (as reported by
      Bloomberg L.P. or, if the Common Stock is traded on the Nasdaq Stock Market
      or
      the New York or American Stock Exchange, as reported by such market or
      exchange).

    
      
        
        

      

      
        -
          9 -

        
          

        

      

      
        
        

      

    

    (C) “Target
      Price” shall mean seventy five cents ($.75); which price shall be subject to
      adjustment for events described in Section 6(a) of this Warrant.

     

    (D) “Trading
      Volume” shall mean the trading volume in the Common Stock (as reported by
      Bloomberg L.P. or the Nasdaq Stock Market or the New York or American Stock
      Exchange, as the case may be).

     

    (E) “Target
      Volume” shall mean one hundred fifty thousand (150,000) shares.

     

    (b) Notwithstanding
      any other provision of this Section 10:

     

    (i)
      The
      Company may only exercise the right of required exercise pursuant to Section
      10(a)(i) of this Warrant if a registration statement covering the sale by the
      Holder of the shares of Common Stock issuable upon exercise of this Warrant
      is
      current and effective and, based on the date of the prospectus forming a part
      of
      the registration statement and the age of the financial statements contained
      in
      the registration statement, the registration statement can be used by the Holder
      in connection with the sale of the Common Stock for at least three months after
      the Mandatory Exercise Date without the need to file a post-effective amendment
      to update the registration statement, and there shall not have occurred any
      material event concerning the Company or its Affiliates for which disclosure
      would be necessary in order that the information contained in the registration
      statement is true and correct in all material respects and does not omit any
      information necessary to make the information contained therein not misleading.
      The redemption notice shall include the certificate of the Borrowers’ respective
      chief executive officers as to the matters set forth in this Section
      10(b)(i).

     

    (ii)
      In
      the event that, at any time subsequent to the date on which the Company gives
      notice of mandatory exercise and before the Mandatory Exercise Date, the shares
      of Common Stock issuable upon exercise of the Warrants are not subject to a
      current and effective registration statement, the Company’s right to require
      exercise of the Warrants shall be suspended with respect to all Warrants that
      have not then been exercised or converted and such notice of mandatory exercise
      shall be deemed to have been withdrawn; provided, however, that the Holder’s
      right to convert the Warrant as provided in Section 1(b) of this Warrant shall
      continue for the balance of the Exercise Period. Nothing in the preceding
      sentence shall be construed to prohibit or restrict the Company from thereafter
      requiring mandatory exercise of the Warrants in the manner provided for, and
      subject to the provisions of, this Section 10.

     

    (c) The
      notice of mandatory exercise shall specify (i) the Mandatory Exercise Date,
      (ii)
      the representation required by Section 10(b)(i) of this Warrant, and (iii)
      the
      number of Warrants with respect to which mandatory exercise is being demanded
      if
      exercise of less than all of the Warrants is being demanded. No failure to
      mail
      such notice or any defect therein or in the mailing thereof shall affect the
      validity of the demand for mandatory exercise except as to a Holder (a) to
      whom
      notice was not mailed or (b) whose notice was defective. An affidavit of the
      Chief Financial Officer of the Company that notice of mandatory exercise has
      been mailed shall, in the absence of fraud, be prima facie evidence of the
      facts
      stated therein.

     

    
      
        
        

      

      
        -
          10 -

        
          

        

      

      
        
        

      

    

    (d) The
      Holder’s obligation to exercise this Warrant in accordance with the terms of
      this Section 10 are absolute and unconditional, irrespective of any action
      or
      inaction by the Company to enforce the same.

     

    11. Transfer
      to Company with the Securities Act.

     

    (a) The
      Holder of this Warrant shall be entitled to the benefits of the Registration
      Rights Agreement.

     

    (b) This
      Warrant or the Warrant Shares or any other security issued or issuable upon
      exercise of this Warrant may not be sold or otherwise disposed of except
      pursuant to an effective registration statement under the Securities Act, or
      an
      exemption from the registration requirements of such Act.

     

    
      	 	 	 
	Dated
              as
              of March 7, 2007	NATURALNANO,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	Name:  	
              

            
	 	Title:	 

    

    
      
        
        

      

      
        -
          11 -

        
          

        

      

      
        
        

      

    

    PURCHASE
      FORM

     

     

    Dated:
      ,
      20  

     

    
      	______	
              The
                undersigned hereby irrevocably exercises this Warrant to the extent
                of
                purchasing _______ shares of Common Stock and hereby makes payment
                of
                $____________ in payment of the Exercise Price
                therefor.

            

    

     

    
      	______	
              The
                undersigned hereby irrevocably converts this Warrant pursuant to
                the
                cashless conversion provisions of Section 1(b) of this Warrant with
                respect to _______ shares of Common
                Stock.

            

    

     

    

     

    INSTRUCTIONS
      FOR REGISTRATION OF STOCK

     

    Name:______________________________________________________________________________________________________________________________________  

    (Please
      typewrite or print in block letters)

     

    

     

    Signature:___________________________________________
      

     

    Social
      Security or Employer Identification No.________________________

     

    ASSIGNMENT
      FORM

     

    FOR
      VALUE
      RECEIVED,____________________________________________________________________________________________________________

     

    hereby
      sells, assigns and transfer unto

     

    Name
      ______________________________________________________________________________________________________________________________________

    (Please
      typewrite or print in block letters)

     

    Address____________________________________________________________________________________________________________________________________
      

     

    Social
      Security or Employer Identification No._______________________ 

     

    The
      right
      to purchase Common Stock represented by this Warrant to the extent of
      _________shares as to which such right is exercisable and does hereby
      irrevocably constitute and appoint __________________ attorney to transfer
      the
      same on the books of the Company with full power of substitution.

     

    Dated:
      ,
      20 

    

     

    Signature_________________________________________
      

     

    Signature
      Medallion Guaranteed:

     

    

    _________________________________________________
      

    
      
        
        

      

      
        -
          12 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]