Document:

NON-QUALIFIED
      STOCK OPTION AGREEMENT

    

    This
      Non-Qualified Stock Option Agreement (the “Agreement”) is made as of December 7,
      2006 (the “Date of Grant”) between NaturalNano, Inc., a Nevada corporation (the
“Company”), and Sir Harold Kroto, an consultant of the Company or one of its
      Subsidiaries (the “Option Holder”), to record the granting of a non-qualified
      stock option. This Agreement and the option granted hereby are not being made
      pursuant to the Company’s 2005 Incentive Stock Plan (the “Plan”); however, to
      the extent not inconsistent with the terms of this Agreement, the Plan’s terms
      are hereby incorporated in this Agreement by reference. 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 Agreement and the terms
      of
      the Plan, the terms of this Agreement shall, for purposes of this Agreement,
      supersede and replace the conflicting terms in the Plan.

    

    
      	
               

            	
              1.

            	
              Grant
                of Option.
                The Company hereby grants to the Option Holder, subject to and pursuant
                to
                the terms and conditions of this Agreement, the option to purchase
                from
                the Company an aggregate of 50,000 shares of common stock of the
                Company
                (the “Shares”) at an exercise price of $0.10 per Share. 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 December 7, 2011 (the “Expiration Date”)
                unless this Option expires earlier as provided in Sections 5, 6 or
                7 of
                this 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, all shares issued in this grant are vested
                as
                of the grant date, December 7, 2006. If the Option Holder’s services are
                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 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
                as the Committee may determine 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.
                

            

    

     

    
      	 	
              5.

            	
              Cancellation
                of Options.

            

    

    

    
      	
               

            	
              (a)

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

            

    

    

    
      	
               

            	
              (b)

            	
              Termination
                of Consulting Services.
                Except as provided in Sections 6 and 7 below, any unvested portion
                of the
                Option shall automatically be cancelled in the event the Option Holder’s
                consulting services with the Company or any of its Subsidiaries is
                terminated for any reason. Any portion of the Option vested at the
                time of
                termination may 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 would causes the
                Option Holder to lose his or her eligibility to participate in the
                Plan
                (e.g., the consultant ceases to provide the prescribed services to
                the
                Company). 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              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 three
                (3)
                months after the date of 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 agreement 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 90 days
                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
                perform the services required by the Holder’s consulting agreement for a
                period of 30 days as determined by the Company in its reasonable
                discretion.

            

    

    

    
      	
               

            	
              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 her.

            

    

    

    
      	
               

            	
              10.

            	
              Employment.
                This Agreement shall not create in the Option Holder a right to employment
                with the Company or any Subsidiary and shall not interfere with the
                ability of the Company to terminate the Option Holder’s employment
                relationship at any time with or without cause; 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.

            

    

     

    
      	
               

            	
              11.

            	
              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 her address
                as it
                appears on the Company’s records.

            

    

    

    
      	
               

            	
              12.

            	
              Successors
                and Assigns.
                This 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.

            

    

    

    
      	
               

            	
              13.

            	
              Applicable
                Laws and Consent to Jurisdiction.
                The validity, construction, interpretation and enforceability of
                this
                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 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.

            

    

    

    
      
         

      

      
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          2 -

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company and the Option Holder have caused this 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.

     

    
      	 	 	 
	 	
              NaturalNano,
                Inc.

            
	 
 	 
 	 
 
	Date:    December
              7, 2006	By:  	/s/ Kathleen
              A. Browne    
	 	
              
Kathleen
              A.
              Browne  CFO

    

     

    
      	 	 	 
	 	
              Option
                Holder

            
	 
 	 
 	 
 
	Date:     December
              7, 2006	 	/s/ Harold
              Kroto    
	 	
              
Harold
              Kroto    

    

     

    
      
         

      

      
        -
          3 -Unassociated Document

    Exhibit
      10.20.1

    

    PROMISSORY
      NOTE

     

    
      	$166,666.00	 	
              September
                13,
                2006

            

    

      

    FOR
      VALUE
      RECEIVED, the undersigned VOIP, INC., a Texas corporation (“Debtor”), promises
      to pay to the order of BRISTOL INVESTMENT FUND LTD, or its successors or assigns
      (“Lender”), on October 4, 2006 or on demand (“Maturity Date”) at Caledonian
      House, Jennett Street, George Town, Grand Cayman, Cayman Islands, or at such
      other place as the Lender may designate from time to time in writing to the
      Debtor, in lawful money of the United States of America, the principal sum
      of
      One Hundred and Sixty-Six Thousand Six Hundred and Sixty-Six Dollars
      ($166,666.00), together with interest on the unpaid principal balance of this
      Note from the date hereof until paid at twelve percent (12%) per annum. In
      the
      event of Debtor’s default hereunder, interest on amounts past due pursuant to
      this Note shall be paid at a rate of eighteen percent (18%) per annum. Interest
      shall be computed on the basis of a 360-day year.

    

    The
      delay
      or failure to exercise any right hereunder shall not waive such right. The
      undersigned hereby waives demand, presentment, protest, notice of dishonor
      or
      nonpayment, notice of protest, any and all delays or lack of diligence in
      collection hereof and assents to each and every extension or postponement of
      the
      time of payment or other indulgence.

    

    The
      Lender may, at any time, present this Note or any sum payable hereunder to
      the
      Debtor in satisfaction of any sum due or payable by the Lender to Debtor for
      any
      reason whatsoever including but not limited to the payment for securities
      subscriptions.

    

    In
      the
      event of default hereunder such that this Note is placed in the hands of an
      attorney for collection (whether or not suit is filed), or if this Note is
      collected by suit or legal proceedings or through bankruptcy proceedings, Debtor
      agrees to pay reasonable attorney’s fees and expenses of
      collection.

    

    This
      Note
      shall be governed by, and construed and interpreted in accordance with, the
      laws
      of the State of New York. Exclusive jurisdiction relating to this Note shall
      vest in courts located in New York State.

    

    IN
      WITNESS WHEREOF, the undersigned has duly executed and delivered this Note
      the
      date and year first above written.

     

    VoIP,
      INC.

    

     

    By:_______________________

    Name:

    Title:

    Attest:

    

    _______________________

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