Document:

Exhibit
      10.1

    LINE
      OF CREDIT AGREEMENT

    

    Date:
      June 28, 2006

    

    

    THIS
      AGREEMENT
      is
      entered into between NATURALNANO,
      INC.,
      a
      Nevada corporation having an office address at 150 Lucius Gordon Drive, Suite
      115, West Henrietta, New York 14586 (the “Borrower”) and TECHNOLOGY
      INNOVATIONS, LLC,
      a New
      York limited liability company having an office address at 150 Lucius Gordon
      Drive, Suite 117, West Henrietta, New York 14586 (the “Lender”).

    

    The
      Lender has agreed to lend Borrower an amount up to one million dollars
      ($1,000,000.00) in accordance with the terms of this Agreement. 

    

    
      	 	
              1.

            	
              COMMITMENT. The
                Lender agrees to make advances to the Borrower at any time during
                this
                Agreement and prior to the Termination Date, in an aggregate principal
                amount up to but not exceeding the sum of $1,000,000 at any one time
                outstanding (the “Commitment”). Advances (the “Advances”) shall be
                requested and made in accordance with the terms of Section 7(a) hereof.
                During this period, the Borrower may use the Commitment by borrowing,
                paying, renewing or prepaying the outstanding balance as reflected
                by this
                Agreement, in whole or in part, and reborrowing, all in accordance
                with
                the terms and conditions hereof. Notwithstanding any provision herein
                to
                the contrary, the Borrower may not request aggregate advances of
                greater
                than $300,000 in any thirty (30) day period. The Commitment shall
                extend
                through March 31, 2007, which date shall be the Termination Date.
                During
                the term of the Commitment, Borrower’s obligations shall be represented by
                a Promissory Note in the form attached hereto as Exhibit A (the
                “Note”).

            

    

    

    
      	 	
              2.

            	
              NOTICE
                OF BORROWING. The Borrower shall give the Lender written notice of
                the
                date and the amount of each proposed borrowing pursuant to the Commitment,
                which notice shall comply with the requirements of Section 7(a) hereof.
                Notwithstanding any provision herein to the contrary, the Borrower
                must
                provide the Lender at least fifteen (15) days’ prior written notice before
                each Advance. On or before the date specified in such notice, the
                Lender
                will make the amount then to be loaned by it available to the Borrower.
                

            

    

    

    
      	 	
              3.

            	
              INTEREST.
                The Borrower shall pay interest upon the amount at any time outstanding
                upon the Note, at the rate of eight percent (8%) per annum. Interest
                on
                the outstanding balance of principal advanced shall accrue and be
                payable
                upon payment or prepayment in full of the unpaid principal
                balance.

            

    

    

    
      	 	
              4.

            	
              PAYMENT.
                Payment shall be made within
                fifteen (15) business days after demand therefor, which demand may
                be made
                at any time after
                the Termination Date in accordance with the terms of the Note. All
                payments (including prepayments) by the Borrower on account of principal
                and interest on the Note shall be made to the Lender by corporate
                check at
                the address specified in the Note or by wire
                transfer.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              5.

            	
              USE
                OF PROCEEDS. The proceeds of the loans made hereunder shall be used
                for
                the corporate working capital purposes of the
                Borrower.

            

    

    

    
      	 	
              6.

            	
              EVENTS
                OF DEFAULT. Upon the occurrence and continuance of any Event of Default
                as
                defined in the Note, the Lender may, by notice to the Borrower, declare
                the Commitment immediately terminated and, upon thirty (30) days’ prior
                written notice, declare any amounts outstanding hereunder to be due
                and
                payable, whereupon the outstanding principal amount of the Note,
                together
                with accrued interest thereon, shall become immediately due and payable
                without presentment, demand, protest, or other notice of any kind,
                all of
                which are hereby expressly waived, notwithstanding anything contained
                herein to the contrary.

            

    

    

    
      	 	
              7.

            	
              MISCELLANEOUS.

            

    

    

    
      	 	
              a.

            	
              Notices.
                Any
                and all notices to be delivered in connection herewith shall be in
                writing
                and shall be deemed given when delivered if delivered personally,
                ten days
                after being sent if properly sent by airmail, or three days after
                being
                sent if properly sent by recognized express courier service guaranteeing
                delivery during such period, in each case addressed to the other
                party at
                the address set forth above or such other address as any party may
                furnish
                by notice to the other as herein
                provided.

            

    

    

    
      	 	
              b.

            	
              No
                Waiver, Cumulative Remedies, Amendment.
                No failure to exercise and no delay in exercising on the part of
                the
                Lender, any right, power, or privilege hereunder or under the Note
                shall
                operate as a waiver thereof; nor shall any single or partial exercise
                of
                any right, power, or privilege hereunder preclude any other or further
                exercise thereof or the exercise of any other right, power, or privilege.
                The rights and remedies herein provided are cumulative and not exclusive
                of any rights or remedies provided by law. No modification or waiver
                of
                any provision of this Agreement nor consent to any departure by the
                Borrower from the provisions hereof shall be effective unless the
                same
                shall be in writing from the Lender, and then such waiver or consent
                shall
                be effective only in the specific instance and for the purpose for
                which
                it is given. No notice to the Borrower shall entitle the Borrower
                to any
                other or further notice in other similar circumstances unless expressly
                provided for herein. No course of dealing between the Borrower and
                the
                Lender shall operate as a waiver of any of the rights of the Lender
                under
                this Agreement.

            

    

    

    
      	 	
              c.

            	
              Payment
                of Fees.
                The Borrower agrees to pay all reasonable costs and expenses of the
                Lender
                in connection with the enforcement of, or the preservation of rights
                arising under, the Note, including reasonable legal fees and disbursements
                arising in connection therewith.

            

    

    

    
      	 	
              d.

            	
              Entire
                Agreement.
                This Agreement and the Note constitute the entire agreement between
                Borrower and Lender with respect to the subject matter hereof and
                supersede all prior understandings and agreements, written or oral,
                regarding the subject matter. Unless otherwise provided herein, this
                Agreement may be modified or amended only by a written consent executed
                by
                both parties.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              e.

            	
              Successors
                and Assigns.
                This Agreement shall be binding upon and inure to the benefit of
                the
                Borrower and the Lender and their respective successors and assigns,
                except that the Borrower may not transfer or assign any of its rights
                or
                interests hereunder without the prior written consent of the
                Lender.

            

    

    

    
      	 	
              f.

            	
              Construction.
                This Agreement and the rights and obligations of the parties hereunder
                and
                thereunder shall be governed by, and construed in accordance with,
                the
                laws of the State of New York. Both parties consent to the jurisdiction
                of
                the state and federal courts located in Rochester, New York with
                respect
                to any disputes arising between the
                parties.

            

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement on the date set forth
      above.

    

    

    
      	 	
              BORROWER:

            
	 	 
	 	
              NATURALNANO,
                INC.

            
	 	 
	 	 
	 	
              By:
                /s/ Kathleen A.
                Browne              
                

            
	 	
              Name:
                Kathleen A. Browne

            
	 	
              Title:
                Chief Financial Officer

            
	 	 
	 	 
	 	
              LENDER:

            
	 	 
	 	
              TECHNOLOGY
                INNOVATIONS, LLC

            
	 	 
	 	 
	 	
              By:
                /s/ Michael L.
                Weiner                  

            
	 	
              Name:
                Michael L. Weiner

            
	 	
              Title:
                ManagerExhibit
      10.2

    

    PROMISSORY
      NOTE

    

    
      	
              $1,000,000

            	
              June
                28, 2006

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, NaturalNano, Inc., a corporation organized under
      the
      laws of the State of Nevada, with its principal offices at 150 Lucius Gordon
      Drive, Suite 115, West Henrietta, New York 14586 (“Debtor”), hereby promises to
      pay to Technology Innovations, LLC, a limited liability company organized under
      the laws of the State of New York, with its principal offices 150 Lucius Gordon
      Drive, Suite 117, West Henrietta, New York 14586 (“Creditor”), the principal sum
      of one million dollars ($1,000,000.00) or such lesser amount as shall have
      been
      advanced pursuant to the Line of Credit Agreement of even date herewith between
      Creditor and Debtor, together with interest thereon at the rate of eight percent
      (8%) per annum, in lawful money of the United States of America.

    

    1. Repayment.
      The
      entire amount of principal and interest due under this Note shall be payable
      within fifteen (15) business days after demand therefor, which demand may be
      made at any time after March 31, 2007 (the “Maturity Date”). Debtor may prepay
      all or any part of this Note at any time without premium or penalty.
Partial
      payments shall be applied first to accrued and unpaid interest and then to
      principal.

    

    2. Interest
      Calculations.
      Interest under this Note shall be compounded monthly on the basis of actual
      days
      elapsed.

    

    3. Events
      of Default.
      Upon
      the occurrence, whether before or after the Maturity Date, and during the
      continuance of any of the following events (each of which shall be an “Event of
      Default”), Creditor may declare the principal of and interest on this Note to be
      due and payable upon thirty (30) days’ prior written notice, and the principal
      of and interest on this Note shall, upon such declaration, become due and
      payable, anything in this Note to the contrary notwithstanding:

    

    
      	 	
              (a)

            	
              Debtor
                fails to pay any principal of or interest on this Note when due;
                or

            

    

    

    
      	 	
              (b)

            	
              Debtor
                is dissolved or liquidated; or

            

    

    

    
      	 	
              (c)

            	
              Debtor
                makes an assignment for the benefit of creditors, commences (as the
                debtor) a case in bankruptcy, or commences (as the debtor) any proceeding
                under any other insolvency law; or

            

    

    

    
      	 	
              (d)

            	
              A
                case in bankruptcy or any proceeding under any other insolvency law
                is
                commenced against Debtor (as the debtor) and a court having jurisdiction
                in the premises enters a decree or order for relief against Debtor
                as the
                debtor in such case or proceeding, and such case or proceeding is
                continued for sixty (60) days, or Debtor consents to or admits the
                material allegations against it in any such case or proceeding;
                or

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (e)

            	
              A
                trustee, receiver or agent (however named) is appointed or authorized
                to
                take charge of substantially all of the property of Debtor for the
                purpose
                of enforcing a lien against such property or for the purpose of general
                administration of such property for the benefit of
                creditors.

            

    

    

    4. Severability.
      The
      invalidity, illegality or unenforceability of any provision of this Note shall
      not render invalid, illegal or unenforceable any other provision
      hereof.

    

    5. No
      Waiver of Remedies.
      No
      failure or delay on the part of Creditor in the exercise of any power or right
      in this Note shall operate as a waiver thereof, and no exercise or waiver of
      any
      single power or right, or the partial exercise thereof, shall affect Creditor’s
      rights with respect to any and all other rights and powers.

    

    6. Maximum
      Interest.
      This
      Note is subject to the express condition that at no time shall Debtor be
      obligated or required to pay interest on the unpaid principal balance due
      hereunder at a rate which is in excess of the maximum interest rate permitted
      under applicable law. If by the terms of this Note, Debtor is at any time
      required or obligated to pay interest on the unpaid principal balance due
      hereunder at a rate in excess of such maximum rate, then for such time as the
      rate of interest under this Note would be deemed excessive, its application
      shall be suspended and there shall be charged instead interest at such maximum
      rate.

    

    7. Notices.
      Any and
      all notices to be delivered in connection herewith shall be in writing and
      shall
      be deemed given when delivered if delivered personally, ten days after being
      sent if properly sent by airmail, or three days after being sent if properly
      sent by recognized express courier service guaranteeing delivery during such
      period, in each case addressed to the other party at the address set forth
      above
      or such other address as any party may furnish by notice to the other as herein
      provided.

    

    8. Successors
      and Assigns.
      This
      Note shall inure to the benefit of Creditor, any holder of this Note and their
      respective successors and permitted assigns. Whenever Debtor or Creditor is
      referred to in this Note, such references shall be deemed references to its
      successors and permitted assigns and, in the case of Creditor, any other holder
      of this Note. Neither party may assign its rights or obligations under this
      Note
      without the prior written consent of the other party.

    

    9. Headings
      and Captions.
      Any
      headings or captions preceding the text of the separate sections hereof are
      intended solely for convenience of reference and shall not constitute a part
      of
      this Note, nor shall they affect its meaning, construction or
      effect.

    

    10. Governing
      Law; Jurisdiction.
      This
      Note shall be construed and interpreted in accordance with the laws of New
      York
      without reference to New York’s choice of law rules. Debtor and Creditor agree
      that any litigation in connection with this Note shall be commenced and
      conducted by any of them only in New York in the County of Monroe, or in the
      U.S. District Court whose jurisdiction includes such county, which courts shall
      have exclusive jurisdiction thereof. Debtor and Creditor submit to the venue
      of
      such courts and agree that service of process upon them shall be valid if
      delivered to the applicable address specified herein.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

      
        	 	 	 
	 	NATURALNANO, INC.
	 
 	 
 	 
 
	 	By:  	/s/
                Kathleen A. Browne
	 	
                
Name:
                Kathleen A. Browne
	 	
                Title:
                  Chief Financial
                  Officer

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