Document:

Exhibit
        4.2

       

      

      NON-QUALIFIED
        STOCK OPTION AWARD AGREEMENT

      

      Pursuant
        to the

      NaturalNano,
        Inc.

      2005
        Stock Option Plan

      

      

      Name
        of
        Option Holder:

      

      Date
        of
        Grant:

       

      Number
        of
        Shares:

      

      Exercise
        Price per Share:

      

      Expiration
        Date:

      

      This
        NON-QUALIFIED STOCK OPTION AWARD AGREEMENT (the “Award Agreement”) is made as of
        ____________, 2005 between NaturalNano, Inc., a Delaware corporation (the
        “Company”), and the above-named individual, an employee of the Company or one of
        its Subsidiaries (the “Option Holder”), to record the granting of a
        non-qualified stock option pursuant to the Company’s 2005 Stock Option Plan (the
“Plan”). Terms used herein that are defined in the Plan shall have the meanings
        ascribed to them in the Plan. If there is any inconsistency between the terms
        of
        this Award Agreement and the terms of the Plan, the Plan’s terms shall supersede
        and replace the conflicting terms herein.

      

      
        	 	
                1.

              	
                Grant
                  of Option.
                  The Company hereby grants to the Option Holder, subject to and
                  pursuant to
                  the terms and conditions of the Plan and this Award Agreement,
                  the option
                  to purchase from the Company an aggregate number of shares of common
                  stock
                  of the Company, no par value per share, (the “Shares”) set forth above at
                  an exercise price per share set forth above. The parties intend
                  this
                  Option to be treated as a non-qualified stock option under the
                  Code.

              

      

      

      
        	 	
                2.

              	
                Expiration
                  Date.
                  This Option shall expire on the expiration date set forth above
                  (the
                  “Expiration Date”) unless this Option expires earlier as provided in
                  Sections 5, 6 or 7 of this Award
                  Agreement.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	
                3.

              	
                Exercisability.
                  No Shares may be purchased under this Option and this Option shall
                  not be
                  exercisable until the Option has vested pursuant to the vesting
                  schedule.
                  Under the vesting schedule, a portion of this Option representing
                  the
                  right to purchase one half of the Shares that may be purchased
                  under this
                  Option shall vest on the first anniversary date after the Date
                  of Grant
                  and the right to purchase the remaining Shares that may be purchased
                  under
                  this Option shall vest on the second anniversary date after the
                  Date of
                  Grant, provided that the Option Holder remains in continuous employment
                  with the Company or its Subsidiaries until such anniversary dates.
                  If the
                  Option Holder’s employment is terminated, Section 5 shall govern the
                  Option Holder’s rights under this Option. Notwithstanding the foregoing or
                  any other provision of the Plan or this Award Agreement, this Option
                  may
                  not be exercised after the Expiration
                  Date.

              

      

      

      
        	 	
                4.

              	
                Method
                  of Exercising Options.
                  The Option may be exercised from time to time by written or electronic
                  notice (in the form prescribed by the Company) delivered to and
                  received
                  by the Company, which notice shall be signed or electronically
                  confirmed
                  by the Option Holder and shall state the election to exercise the
                  Option
                  and the number of whole Shares with respect to which the Option
                  is being
                  exercised. Such notice must be accompanied by a check payable to
                  the
                  Company or, subject to the Committee’s approval, such other consideration
                  allowed pursuant to the Plan, in payment of the full Option Price
                  for the
                  number of Shares purchased. As soon as practicable after it receives
                  such
                  notice and payment, as applicable, and following receipt from the
                  Option
                  Holder of payment for any taxes which the Company is required by
                  law to
                  withhold by reason of such exercise, the Company will deliver to
                  the
                  Option Holder a certificate or certificates for the Shares so purchased.
                  The Committee, in its sole discretion, may permit an Option Holder
                  to
                  exercise the Option pursuant to a “cashless exercise” procedure (subject
                  to securities law restrictions), or by any other means the Committee
                  determines is consistent with the Plan’s purpose and applicable
                  law.

              

      

      

      
        	 	
                1.

              	
                Upon
                  the exercise of the Option Holder’s right to purchase Shares under this
                  Option, the number of Shares subject to the Option shall be reduced
                  on a
                  one-for-one basis.

              

      

       

      
        	
              	
                5.

              	
                Cancellation
                  of Options.

              

      

      

      
        	 	
                (a)

              	
                Expiration
                  of Term. On the Expiration Date, the unexercised Options shall be
                  cancelled automatically.

              

      

      

      
        	 	
                (b)

              	
                Termination
                  of Employment. Except as provided in Sections 6 and 7 below, any
                  unvested portion of the Option shall automatically be cancelled
                  upon
                  termination of the Option Holder’s employment with the Company or any of
                  its Subsidiaries for any reason. Any portion of the Option vested
                  at the
                  time of termination may only be exercised by the Option Holder
                  at any time
                  on or prior to the earlier of the Expiration Date or the expiration
                  of
                  three (3) months after the date of termination. Any vested portion
                  of the
                  Option that is not exercised within such time period shall be
                  automatically cancelled. A “termination” includes any event which causes
                  the Option Holder to lose his or her eligibility to participate
                  in the
                  Plan (e.g., an individual is employed by a company that ceases
                  to be a
                  Subsidiary of the Company). 

              

      

       

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                6.

              	
                Death
                  of Option Holder. Upon the death of the Option Holder while the Option
                  Holder is an employee of the Company or a Subsidiary, any unvested
                  portion
                  of the Option shall fully vest. The Option may be exercised by
                  the Option
                  Holder’s estate, or by a person who acquires the right to exercise the
                  Option by bequest or inheritance or by reason of the death of the
                  Option
                  Holder, provided that such exercise occurs both before the Expiration
                  Date
                  and within 6 months after the Option Holder’s death. Any portion of the
                  Option not exercised within such time period will be
                  cancelled.

              

      

      

      
        	 	
                7.

              	
                Disability.
                  Upon termination of the Option Holder’s employment by reason of the Option
                  Holder’s Disability, any unvested portion of the Option shall fully vest.
                  The Option may be exercised by the Option Holder, provided that
                  such
                  exercise occurs both before the Expiration Date and within 6 months
                  after
                  the Option Holder’s termination due to a Disability. Any portion of the
                  Option not exercised within such time period will be cancelled.
                  “Disability” shall mean a condition whereby the Option Holder is unable to
                  engage in any substantial gainful activity by reason of any medically
                  determinable physical impairment which can be expected to result
                  in death
                  or which is or can be expected to last for a continuous period
                  of not less
                  than thirty-six months, all as verified by a physician acceptable
                  to, or
                  selected by, the Company.

              

      

      

      
        	 	
                8.

              	
                Non-Assignability.
                  The Option shall not be assignable or transferable by the Option
                  Holder,
                  except by will or by the laws of descent and distribution. During
                  the life
                  of the Option Holder, the Option shall be exercisable only by the
                  Option
                  Holder.

              

      

      

      
        	 	
                9.

              	
                Rights
                  as a Shareholder. The Option Holder shall have no rights as a
                  shareholder by reason of the Option unless and until certificates
                  for
                  shares of Common Stock are issued to him or
                  her.

              

      

      

      
        	 	
                10.

              	
                Discretionary
                  Plan; Employment. The Plan is discretionary in nature and may be
                  suspended or terminated by the Company at any time. With respect
                  to the
                  Plan, (a) each grant of an Option is a one-time benefit which does
                  not
                  create any contractual or other right to receive future grants
                  of Options,
                  or benefits in lieu of Options; (b) all determinations with respect
                  to any
                  such future grants, including, but not limited to, the times when
                  the
                  Option shall be granted, the number of Shares subject to each Option,
                  the
                  Option Price, and the times when each Option shall be exercisable,
                  will be
                  at the sole discretion of the Company; (c) if the Option Holder
                  is an
                  Employee, the Option Holder’s participation in the Plan shall not create a
                  right to further or continued employment with the Option Holder’s employer
                  and shall not interfere with the ability of the Option Holder’s employer
                  to terminate the Option Holder’s employment relationship at any time with
                  or without cause; (d) the Option Holder’s participation in the Plan is
                  voluntary; (e) the Option is not part of normal and expected compensation
                  for purposes of calculating any severance, resignation, redundancy,
                  end of
                  service payment, bonuses, long-service awards, pension or retirement
                  benefits, or similar payments; (f) the future value of the Shares
                  underlying the Options is unknown and cannot be predicted with
                  certainty;
                  (g) if the underlying Shares do not increase in value, the Option
                  will
                  have no value; and (h) the ability of the Option Holder to sell
                  Shares
                  acquired pursuant to this Option may be limited by applicable securities
                  laws.

              

      

       

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                11.

              	
                Effect
                  of Plan. The Plan is hereby incorporated by reference into this Award
                  Agreement, and this Award Agreement is subject in all respects
                  to the
                  provisions of the Plan, including without limitation the authority
                  of the
                  Committee to adjust awards and to make interpretations and other
                  determinations with respect to all matters relating to this Award
                  Agreement and the Plan.

              

      

      

      
        	 	
                12.

              	
                CMI
                  Merger. Notwithstanding the language of Section 11 of this Agreement,
                  or the provisions of Section 4.2 of the Plan, each
                  holder of an option (a “Company Option”) to purchase Company Common Stock
                  granted prior to the Effective Time of the Merger pursuant to the
                  Plan or
                  otherwise will receive at the Closing, in exchange for a written
                  instrument executed by such holder canceling by its terms all of
                  the
                  Company Options, a duly executed Option Agreement (a “CMI Option
                  Agreement”) evidencing the grant to said holder, pursuant to the CMI Stock
                  Incentive Plan (as defined herein), of an option (each, a “CMI Option”) to
                  acquire one (1) share of CMI Common Stock for every one (1) share
                  of
                  Company Common Stock for which the Company Option is exercisable,
                  on
                  economic and contractual terms substantially and materially similar
                  to the
                  terms and conditions of said Company Option prior to such
                  conversion.

              

      

      

      
        	 	
                13.

              	
                Notice.
                  Notices hereunder shall be in writing and if to the Company shall
                  be
                  addressed to the Secretary of the Company at NaturalNano, Inc.,
                  150 Lucius
                  Gordon Drive, Suite 115, West Henrietta, New York 14586 and if
                  to the
                  Option Holder shall be addressed to the Option Holder at his or
                  her
                  address as it appears on the Company’s
                  records.

              

      

      

      
        	 	
                14.

              	
                Successors
                  and Assigns. This Award Agreement shall be binding upon and inure to
                  the benefit of the successors and assigns of the Company and, to
                  the
                  extent provided in Section 6 hereof, to the heirs or legatees
                  of the
                  Option Holder.

              

      

      

      
        	 	
                15.

              	
                Grant/Exercise
                  Subject to Applicable Regulatory Approvals. Any grant of Options under
                  the Plan is specifically conditioned on, and subject to, any required
                  regulatory approvals. If necessary approvals for the grant or exercise
                  are
                  not obtained, the Options may be cancelled or rescinded, or they
                  may
                  expire, as determined by the Company in its sole and absolute discretion.
                  The Company may restrict the exercise of any Option if the Shares
                  issuable
                  pursuant to the Option have not yet been registered pursuant to
                  the
                  Securities Act of 1933, as amended; provided, however, this limitation
                  shall not apply during the six (6) months immediately prior to
                  the
                  Expiration Date or if the Option Holder agrees in writing that
                  the Shares
                  issuable upon the exercise will be restricted securities and bear
                  a
                  restrictive legend.

              

      

       

      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

      
        	 	
                16.

              	
                Applicable
                  Laws and Consent to Jurisdiction. The validity, construction,
                  interpretation and enforceability of this Award Agreement shall
                  be
                  determined and governed by the laws of the New York without giving
                  effect
                  to the principles of conflicts of law. For the purpose of litigating
                  any
                  dispute that arises under this Award Agreement, the parties hereby
                  consent
                  to exclusive jurisdiction in New York and agree that such litigation
                  shall
                  be conducted in the federal or state courts located in Rochester,
                  New
                  York.

              

      

      

      IN
        WITNESS WHEREOF,
        the
        Company and the Option Holder have caused this Award Agreement to be executed
        on
        the date set forth opposite their respective signatures, it being further
        understood that the date of grant may differ from the date of
        signature.

       

      

      
        	
                Dated:

              	
                ___________________

              	
                NaturalNano,
                  Inc.

              
	 	 	 
	 	 	 
	 	 	 
	 	 	
                By: 
                  ____________________________

              
	 	 	
                Chief
                  Executive Officer

              
	 	 	 
	
                Dated:

              	
                ___________________

              	
                Option
                  Holder

              
	 	 	 
	 	 	 
	 	
                 

              	_____________________________ 

      

      
        
          
          

        

        
          -
            5
            -Exhibit
        4.3 

       

      REGISTRATION
        RIGHTS AGREEMENT

      

      This
        Registration Rights Agreement is entered into as of the 22nd
        day of
        December 2004 (the “Agreement”),
        by
        and between NaturalNano, Inc., a Delaware corporation (the “Company”),
        and
        Technology Innovations, LLC, a limited liability company (the “Purchaser“).

      

      W
        I T N E S S E T H :

      

      WHEREAS,
        the
        Company has offered and sold to Purchaser (the “Offering”)
        an
        aggregate of 10,000,000 shares of the Company’s common stock, par value $.001
        per share (the “Common
        Stock”);
        and

      

      WHEREAS,
        in
        connection with the Offering and as a condition thereto, the Company will
        provide to Purchaser certain limited “piggy-back” registration rights related to
        the Common Stock and as set forth in this Agreement.

      

      NOW, THEREFORE,
        in
        consideration of the foregoing premises and the mutual covenants and agreements
        hereinafter contained, and for other good and valuable consideration, the
        receipt and sufficiency of which are hereby acknowledged, intending to be
        legally bound, the parties hereto hereby agree as follows:

      

      1.    Registration
        Rights.
        The
        Company, currently a privately owned corporation, intends to use its reasonable
        best efforts to effect a transaction whereby the Company will become a publicly
        owned corporation, either by facilitating an initial public offering, merging
        with or being acquired by an existing public company, or by other similar
        and
        satisfactory means. At such time as the Company becomes a public company,
        it
        will use its reasonable best efforts to cause to be prepared and filed with
        the
        Securities and Exchange Commission (“SEC”),
        a
        registration statement on an appropriate form (the “Registration
        Statement”)
        that
        is available pursuant to the Securities Act of 1933, as amended (the
Securities
        Act”),
        that
        will register the Common Stock and permit the offer and re-sale from time
        to
        time of such Common Stock in accordance with the applicable laws, rules and
        regulations promulgated under the Securities Act. The Company will also use
        its
        reasonable best efforts to cause the Registration Statement to become effective
        as promptly as reasonably practicable thereafter, and to keep the Registration
        Statement continuously effective for a period of one year after the Registration
        Statement first becomes effective.

      

      (a)    No
        Firm
        Commitment. The rights granted hereunder to Purchaser are not intended to
        be
        guaranteed and nothing herein is to be construed as the Company making a
        firm
        commitment to file, or cause to be filed with the SEC, a Registration Statement
        related to the Common Stock at any time in the future. 

      

      (b)    Limitations.
        The
        registration rights granted hereunder are limited in that the Company will
        use
        its reasonable best efforts to file a Registration Statement for the Common
        Stock, or in the event the Company or a successor files a registration statement
        under the Securities Act for the public sale of its securities, Purchasers
        will
        have the limited right to include, or “piggyback” the shares, or a portion
        thereof, of the Common Stock in the Registration Statement. However, any
        investment banker and/or underwriter of any such public offering may severely
        restrict or completely negate the ability of Purchasers to include their
        shares
        in any such Registration Statement and public offering. Thus, the right to
        piggyback shares into a Registration Statement will be subject to and contingent
        upon approval by such investment banker and/or underwriter.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)    Reasonable
        Efforts.
        The
        Company will use all reasonable best efforts to cause the managing underwriter
        or underwriters of a proposed underwritten offering to permit the Common
        Stock,
        or a portion thereof, to be included in a piggy-back Registration Statement,
        which will be included on the same terms and conditions as any similar
        securities of the Company or its successor or any other security holder included
        therein, and to permit the sale or other disposition of such Common Stock
        in
        accordance with the intended method of distribution thereof.

      

      (d)    Priority
        in Registrations.
        If a
        piggy-back Registration Statement is an underwritten primary registration
        on
        behalf of the Company or a successor, and the managing underwriters advise
        the
        Company or the successor in writing that in their opinion the number of shares
        of Common Stock requested to be included on a secondary basis in such
        registration exceeds the number which can be sold in such offering without
        materially and adversely affecting the marketability of such primary or
        secondary offering, then the Company or successor will have the right to
        limit
        the number of shares of Common Stock to be included in the Registration
        Statement.

      

      2.    Registration
        Expenses.
        All
        expenses incident to the Company’s performance of or compliance with this
        Agreement including, without limitation, all registration and filing fees,
        costs
        and expenses of compliance with securities or blue sky laws, printing expenses,
        messenger and delivery expenses, and fees and disbursements of counsel for
        the
        Company and all independent certified public accountants, underwriters
        (excluding discounts and commissions, which will be paid by the sellers of
        the
        Common Stock) and other persons retained in connection with the Registration
        Statement, will be borne by the Company or its successor, and the Company
        or its
        successor will pay its internal expenses (including, without limitation,
        all
        salaries and expenses of its employees performing legal or accounting duties),
        the expense of any annual audit or quarterly review, the expense of any
        liability insurance and the expenses and fees for listing the securities
        to be
        registered on each securities exchange on which similar securities issued
        by the
        Company are then listed or on the OTC Bulletin Board or other trading system.
        

      

      3.    Transfer
        of Registration Rights.
        The
        rights granted to the Purchaser under this Agreement may be transferred and/or
        assigned to another party or entity, provided
        that
        nothing contained herein shall be deemed to permit an assignment, transfer
        or
        disposition of the Common Stock in violation of this Agreement or any applicable
        law. Any transferee to whom rights under this Agreement are transferred will,
        as
        a condition to such transfer, deliver to the Company a written instrument
        by
        which such transferee agrees to be bound by the obligations imposed upon
        the
        Purchaser under this Agreement to the same extent as if such transferee were
        a
        Purchaser hereunder.

      

      4.    Change
        of Control.
        In the
        event the Company enters into a transaction that results in a change of control
        of the Company, or whereby the Company is acquired by or merges with another
        entity that is deemed a public company, then the Company will transfer all
        of
        its obligations, rights and duties set forth herein to such other controlling
        party or entity.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.    Recapitalizations,
        Exchanges, etc.
        The
        provisions of this Agreement shall apply to the full extent set forth herein
        with respect to any and all securities into which the Common Stock may be
        converted, exchanged or substituted in any recapitalization
        or other capital reorganization by the Company or any successor, and any
        and all
        equity securities of the Company or any successor or assign of the Company
        (whether by merger, consolidation, sale of assets or otherwise) which may
        be
        issued in respect of, in conversion of, in exchange for or in substitution
        of,
        the Common Stock and will be appropriately adjusted for any stock dividends,
        splits, reverse splits, combinations, recapitalizations and the like occurring
        after the date hereof. The Company shall cause any successor or assign (whether
        by merger, consolidation, sale of assets or otherwise) to enter into a new
        registration rights agreement with the Purchaser on terms substantially the
        same
        as this Agreement as a condition of any such transaction.

      

      6.    No
        Inconsistent Agreements.
        The
        Company has not and shall not enter into any agreement with respect to its
        securities that is inconsistent with the rights granted to the Purchaser
        in this
        Agreement or grant any additional registration rights to any person or with
        respect to any securities that are prior in right to or inconsistent with
        the
        rights granted in this Agreement. 

      

      7.    Amendments
        and Waivers.
        The
        provisions of this Agreement may be amended and the Company may take action
        herein prohibited, or omit to perform any act herein required to be performed
        by
        it, if, but only if, the Company has obtained the written consent of Purchaser
        

      

      8.    Severability.
        Whenever possible, each provision of this Agreement shall be interpreted
        in such
        manner as to be effective and valid under applicable law, but if any provision
        of this Agreement shall be held to be prohibited by or invalid under applicable
        law, such provision shall be ineffective only to the extent of such prohibition
        or invalidity, without invalidating the remainder of such provision or the
        remaining provisions of this Agreement.

      

      9.    Counterparts.
        This
        Agreement may be executed in one or more counterparts each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument.

      

      10.   Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of New York, without regard to the conflicts of laws rules or
        provisions.

      

      11.   Successors
        and Assigns; Third Party Beneficiaries.
        This
        Agreement and all of the provisions hereof shall be binding upon and inure
        to
        the benefit of the parties hereto, each subsequent holder of the Common Stock
        and their respective successors and assigns and executors , administrators
        and
        heirs. Holders of the Common Stock are intended third party beneficiaries
        of
        this Agreement and this Agreement may be enforced by such holders.

      

      12.   Entire
        Agreement.
        This
        Agreement sets forth the entire agreement and understanding between the parties
        as to the subject matter hereof and merges and supersedes all prior discussions,
        agreements and understandings of any and every nature among
        them.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto have caused this Registration Rights Agreement to be duly
        executed as of the date and year first written above.

      

      
        	 	 	 
	 	NATURAL
                NANO, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:
	 	Title 

      

       

      
        	
              	 	 
	 	TECHNOLOGY
                INNOVATIONS, LLC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name:
	 	Title

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