Document:

PLATINUM LONG TERM GROWTH IV, LLC

152 WEST 57TH STREET, 54TH FLOOR

NEW YORK, NEW YORK 10019

 

VIA FACSIMILE AND FIRST CLASS MAIL

 

Effective as of June 30, 2013

 

 

Re: FORBEARANCE AGREEMENT

 

Ladies and Gentlemen:

 

Reference is made to
the $2,750,000 8% Senior Secured Promissory Note, issued on or about March 6, 2007, the $150,000 8% Senior Secured Promissory,
issued on or about August 4, 2008, the $190,000 Senior Secured Promissory Note, issued on or about September 29, 2008, the $59,500
Senior Secured Promissory Note, issued on or about October 31, the $136,376 8% Senior Secured Promissory Note, issued on or about
April 3, 2009, the $5,000 8% Senior Secured Promissory Note, issued on or about April 17, 2009, the $15,000 8% Senior Secured Promissory
Note, issued on or about May 12, 2009, the $25,000 8% Senior Secured Promissory Note, issued on or about October 2, 2009,the $20,000
8% senior secured promissory note, issued on or about July I, 2010, the $16,923 8% Senior Secured Promissory Note, issued on or
about October 20, 2010, the $51,000 8% Senior Secured Promissory Note, issued on or about November 12, 2010, the $15,000 8% Senior
Secured Promissory Note, issued on or about January 26, 2011, the $12,750 8% Senior Secured Promissory Note, issued on or about
April 15, 2011, the $15,000 8% Senior Secured Promissory Note, issued on or about September 21, 2011, the the $15,000 8% senior
secured Promissory note , issued on or about October 11, 2011, the $15,000 8% Senior Secured Promissory Note, issued on or about
December 6, 2011, the $15,000 8% Senior Secured Promissory Note, issued on or about December 19, 2011, the $25,000 8% Senior Secured
Promissory Note, issued on or about February 10, 2012, the $12,000 8% Senior Secured Promissory Note, issued on or about March
7, 2012, the $15,000 8% Senior Secured Promissory Note, issued on or about April 16, 2012, and the $20,000 8% Senior Secured Promissory
note, issued on or about May 15, 2012, on or about July 20 for $7,000, and on or about October 17, 2012 for $13,500, and on or
about November 15, 2012 for $12,500, and on or about February 7, 2013 for $17,500 (together the “Notes”) from NaturalNano,
Inc. and NaturalNano Research, Inc. (jointly and severally, the “Borrower”) to Platinum Long Term Growth IV, LLC (the
“Lender”). Capitalized terms used herein and not otherwise defined shall have the respective meanings given in the
Notes.

 

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

 

The Lender is
prepared to forbear from demanding payment of principal on the Notes on the Maturity Date of the Notes, or taking any other
action to collect the principal amount of the Notes (other than conversions in respect thereof) until the earlier of
September 1st, 2013(unless extended by the Lender in its discretion) or the
termination of the Forbearance Period pursuant to the terms of this Letter Agreement (such period, the “Forbearance
Period”), provided the Borrower accepts and agrees to the terms, conditions and covenants set forth herein, and
communicates such acceptance (by delivering a signed copy of this Letter Agreement) to the Lender no later than 5:00 p.m. on
September 1st, 2013; provided further that it is understood that the Borrower is not obligated to make all
interest payments required under the Notes during the Forbearance Period.

 

    	 

    	 

    

 

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

 

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

 

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

 

2. Amount
Due. The Borrower acknowledges and agrees that the Borrower owes the Lender $2,700,605.62 (the “Outstanding Amount”)
as of September 1st, 2013. The Borrower shall also be responsible for reimbursing the Lender for all costs and expenses,
including the fees and expenses of legal counsel that may be incurred in connection with the enforcement of this Letter Agreement,
which, if incurred, shall be added to the Outstanding Amount. The Borrower acknowledges and agrees that the Outstanding Amount
(as reduced by payments made pursuant hereto), plus interest accrued thereon, shall be due and owing upon termination of the Forbearance
Period.

 

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

 

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

 

    	 

    	 

    

 

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

 

6. Adjustment of
Conversion Prices and Ratios. In consideration of the agreement of the Lender to forbear from exercising its rights and remedies
as is set forth herein, (i) the Borrowers covenant and agree that, with respect to any Note that is convertible pursuant to its
terms, the Conversion Price (as defined and as set forth in the Notes) is, effective as of the date hereof, hereafter reduced to
the lowest of (A) 75% of the lowest of the average VWAP (as defined in such Notes) for the one business day, five business day
or ten business day period immediately preceding the date of the conversion request, such period to be selected by the Lender,
or (B) $0.01 per share, effective as of the date hereof, which $0.01 per share Conversion Price shall be subject to such further
adjustment as may be set forth in the Notes, and (ii) within five (5) business days of the date hereof, NaturalNano, Inc. shall
cause an amendment to the Amended and Restated Certificate of Designations (the “Certificate of Designations”) of the
Rights, Preferences, Designations, Qualifications and Limitations of the Series C Preferred Stock, par value $0.01 per share, of
NaturalNano, Inc. to provide that each of the 4,250,000 shares of Series C Preferred Stock held by the Lender shall convert into
160 shares of Common Stock of NaturalNano, Inc. (or an aggregate of 680,000,000 shares of Common Stock of NaturalNano, Inc.).

 

7. Beneficial Ownership
Provisions. The Lender and the Borrower agree that the conversion restriction set forth in Section 7(a) of the Certificate
of Designations shall be deemed waived by the Lender, which waiver shall be deemed effective immediately, notwithstanding the provisions
of such Section 7(a); provided, that, it is understood and agreed that the limitations set forth in Section 7(b)
of the Certificate of Designations shall remain in full force and effect. Further, the 4.99% Limitation, as set forth and as defined
in Notes convertible pursuant to their terms shall be deemed waived by the Lender, which waiver shall be deemed effective immediately,
notwithstanding the provisions of such Notes requiring at least 61 days’ advance written notice; provided, that, it is understood
and agreed that in no event shall the Lender be entitled to convert such Notes into shares of Common Stock to the extent such conversion
would result in the beneficial ownership of more than 9.99% of the then outstanding number of shares of Common Stock on such date
without providing at least 61 days’ advance written notice to the Borrowers that the Lender elects to waive such restriction
with respect to all or a portion of such Notes. For purposes hereof, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934 and Regulation 13d-3 thereunder.

 

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

 

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

 

    	 

    	 

    

 

Termination of Forbearance
Period. The Forbearance Period shall terminate upon the earlier to occur of: (1) 5:00 pm (New York City Time) on September
1st, 2013; (2) the Borrower shall fail to observe, perform, or comply with any of the terms, conditions or provisions
of this Letter Agreement as and when required and/or any other Event of Default (other than the Existing Defaults occurring prior
to the date hereof) shall occur under the Notes or any of the Loan Documents or any other agreement between the Borrower and the
Lender (or its affiliates) or any other indebtedness issued by the Borrower to the Lender or its affiliates; (3) any representation
or warranty made herein, in any document executed and delivered in connection herewith, or in any report, certificate, financial
statement or other instrument or document now or hereafter furnished by or on behalf of the Borrower in connection with this Letter
Agreement, shall prove to have been false, incomplete or misleading in any material respect on the date as of which it was made;
(4) any suit preceding or other action is commenced by any other creditor against the Company; (5) any default or event of default
shall occur under any other indebtedness of the Company, including the Subordinated Notes issued on or about November 2009 or the
“Transaction Documents” referred to therein; or (6) a court of competent jurisdiction shall enter an order for relief
or take any similar action in respect of the Borrower in an involuntary case under any applicable bankruptcy, insolvency, reorganization,
moratorium or similar law now or hereafter in effect or a petition for relief under any applicable bankruptcy, insolvency, reorganization,
moratorium or other similar law shall be filed by or against the Borrower.

 

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

 

    	 

    	 

    

 

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

 

Sincerely,

 

 

PLATINUM LONG TERM GROWTH IV LLC

 

 

By:
/s/ Mar Nordlicht                                    

Name: Mar Nordlicht

Title:

 

 

Accepted and Agreed as of this 23h day of July, 2013

 

NATURALNANO, INC.

 

 

By:
/s/ JAMES WEMETT                                

Name: JAMES WEMETT

Title: CEO

 

 

NATURALNANO RESEARCH, INC.

 

 

By:
/s/ JAMES WEMETT                                

Name: JAMES WEMETT

Title: CEOCape
One Financial Master Fund LTD

 

410
Park Avenue, 15TH floor

New
York, New York 10022

 

Via
Facsimile and First Class Mail

 

Effective
June 30, 2013

 

Re:          FORBEARANCE
AGREEMENT

 

Ladies and Gentlemen:

 

Reference
is made to the $225,000 8% Senior Secured Convertible Note due March 1,
2010, issued on or about November 30, 2009 and the $30,000
added to principle on or about March 8., 2011 from NaturalNano, Inc. and NaturalNano
Research, Inc. (jointly and severally, the “Borrower”) to Cape One Financial Master Fund LTD (the “Lender”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings given in the Notes.

 

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

 

The Lender
is prepared to forbear from demanding payment of principal on the Notes on the Maturity Date of the Notes, or taking any other
action to collect the principal amount of the Notes until the earlier of August 31, 2013 (unless
extended by the Lender in its discretion) or the termination of the Forbearance Period pursuant to the terms of this Letter Agreement
(such period, the “Forbearance Period”), provided the Borrower accepts and agrees to the terms, conditions and covenants
set forth herein, and communicates such acceptance (by delivering a signed copy of this Letter Agreement) to the Lender no later
than 5:00 p.m. on August 31, 2013; provided further it
is understood that Borrower is not obligated to make any interest payments required under the Notes during the Forbearance Period.

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

4.          Interest
Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest at a new interest rate
under the Notes of eighteen percent (18%).

 

5.          Other
Notes. none

 

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

 

    	 

    	 

    

 

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

 

8.          Termination
of Forbearance Period. The Forbearance Period shall terminate upon the earlier to occur of: (1) 5:00 pm (New York City Time)
on August 31, 2013; (2) the Borrower shall fail to observe, perform, or comply with any of the terms, conditions or provisions
of this Letter Agreement as and when required and/or any other Event of Default (other than the Existing Defaults occurring prior
to the date hereof) shall occur under the Notes or any of the Loan Documents or any other agreement between the Borrower and the
Lender (or its affiliates) or any other indebtedness issued by the Borrower to the Lender or its affiliates; (3) any representation
or warranty made herein, in any document executed and delivered in connection herewith, or in any report, certificate, financial
statement or other instrument or document now or hereafter furnished by or on behalf of the Borrower in connection with this Letter
Agreement, shall prove to have been false, incomplete or misleading in any material respect on the date as of which it was made;
(4) any suit preceding or other action is commenced by any other creditor against the Company; or (5) a court of competent jurisdiction
shall enter an order for relief or take any similar action in respect of the Borrower in an involuntary case under any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law now or hereafter in effect or a petition for relief under any
applicable bankruptcy, insolvency, reorganization, moratorium or other similar law shall be filed by or against the Borrower.

 

9.          Adjustment
of Conversion Prices and Ratios. In consideration of the agreement of the Lender to forbear from exercising its rights and
remedies as is set forth herein, (i) the Borrowers covenant and agree that, with respect to any Note that is convertible pursuant
to its terms, the Conversion Price (as defined and as set forth in the Notes) is, effective as of the date hereof, hereafter reduced
to the lowest of (A) 75% of the lowest of the average VWAP (as defined in such Notes) for the one business day, five business day
or ten business day period immediately preceding the date of the conversion request, such period to be selected by the Lender.
This conversion adjustments covers from August 31, 2013 and going forward until changed.

 

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

 

    	 

    	 

    

 

	 	Sincerely,
	 	 
	 	Cape One Financial Advisors, LLC
	 	 
	 	By:	/s/ Reid Drescher 
	 	 	Name:      Reid Drescher

	 	 	Title:        Managing Member

 

Accepted and Agreed as of this
day of JULY 23,2013

 

NATURALNANO, INC.

 

	By:		 
	 	Name:	 
	 	Title:	 

 

	NATURALNANO RESEARCH, INC.	 
	 	 	 
	By:		 
	 	Name:	 
	 	Title:

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