Document:

DEMAND
      PROMISSORY NOTE

    

    $____________         ______,
      2007

    

    FOR
      VALUE
      RECEIVED, Red Oak Concepts, Inc., a corporation organized and existing under
      the
      laws of State of Delaware, with offices at 5357 Red Oak Drive ,Coopersburg,
      PA
      18036 (the “Company”), promises to pay to the order of ________________, an
      individual, having an address at ____________________________________ (the
      "Holder"), the principal amount of _____________________ Dollars ($________),
      together with interest incurred thereon at the rate of eight percent (8%) per
      annum. The entire unpaid principal and accrued interest thereon shall be
      immediately due and payable on demand by the Holder. Interest payable hereunder
      shall be calculated for actual days elapsed on the basis of a 360-day year.
      Any
      payments of amounts due hereunder shall be in such currency of the United States
      at the time of payment as shall be legal tender for the payment of public or
      private debts. 

    

    This
      Note
      shall be paid without deduction by reason of any set-off, defense or
      counterclaim of the Company. This Note may be repaid in whole or in part by
      the
      Company without penalty or premium at any time and from time to time. All
      payments received by the Holder hereunder will be applied first to costs of
      collection and fees, if any, then to interest, and the balance to principal.
      

    

    All
      payments shall be made at the address for the Holder set forth above, or at
      such
      other place as the Holder hereof may from time to time designate in writing.
      

    

    The
      undersigned waives presentment for payment, demand, protest and notice of
      protest and of non-payment.

    

    Any
      and
      all notices, requests, consents and demands required or permitted to be given
      hereunder shall be in writing, delivered to the addresses stated above. Either
      party may change by notice the address to which notices to it are to be
      addressed.

    

    Notwithstanding
      any other provision of this Note, interest under this Note shall not exceed
      the
      maximum rate permitted by law; and if any amount is paid under this Note as
      interest in excess of such maximum rate, then the amount so paid will not
      constitute interest but will constitute a prepayment on account of the principal
      amount of this Note.

    

    The
      Company agrees to pay on demand all expenses of collecting and enforcing this
      Note and any guarantee or collateral securing this Note, including, without
      limitation, expenses and fees of legal counsel, court costs and the cost of
      appellate proceedings.

    

    The
      failure or delay by the Holder in exercising any of its rights hereunder in
      any
      instance shall not constitute a waiver thereof in that or any other instance.
      The Holder may not waive any of its rights except by an instrument in writing
      signed by the Holder.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
      Note
      shall be construed and enforced in accordance with, and the rights of the
      parties shall be governed by, the laws of the State of Delaware, without giving
      effect to the conflict of law provisions thereof.

    

    This
      Note
      may not be assigned, transferred or otherwise negotiated by the Holder without
      the prior written consent of the Company. 

    

    This
      Note
      may not be amended without the written approval of the holder.

    

    IN
      WITNESS WHEREOF, the Company has caused this Note to be signed on the date
      first
      set forth above.

    

    

    RED
      OAK
      CONCEPTS, INC.

    

    

    By:      

    Print
      Name:

    Title:Unassociated Document

    Exhibit
      10.1

    

    EMPLOYMENT
      AGREEMENT 

    

    This
      Employment Agreement (“Agreement”) is entered into August 31, 2007 and effective
      as of the Effective Time (as defined below), by and between NaturalNano, Inc.,
      a
      Nevada corporation (the “Company”), and Kent
      A.
      Tapper (“Employee”). 

    

    Conditioned
      on the execution of the Company's standard confidential information and
      non-complete agreements, the date of any such execution or September 4, 2007,
      whichever first occurs, being the "Effective Time" and
      in
      consideration of the mutual covenants and conditions set forth herein, and
      other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereby agree as follows:

    

    1. Employment.
      The
      Company hereby employs Employee in the capacity of Chief Financial Officer
      reporting to the President or Chief Executive Officer. Employee accepts such
      employment and agrees to diligently, conscientiously and exclusively perform
      such services as are customary to such office and as shall from time to time
      be
      assigned to him by the board of directors the Company or any duly formed
      committee thereof or by the President. Employee’s employment will be on a
      full-time business basis requiring the devotion of substantially all of his
      productive business time for the efficient and successful operation of the
      business of the Company.

    

    2. Conditional
      Agreement; Term.
      Should
      this Agreement become effective, the employment hereunder shall be for a one
      year period commencing at the Effective Time, unless earlier terminated as
      provided in Section 4 (the “Initial Term”). This Agreement shall be
      automatically renewed for successive one-year periods upon the expiration of
      the
      Initial Term unless earlier terminated as provided in Section 4. The parties
      expressly agree that designation of a term and renewal provisions in this
      Agreement does not in any way limit the right of the parties to terminate this
      Agreement at any time as hereinafter provided. Reference herein to the term
      of
      this Agreement shall refer both to the Initial Term and any successive term
      as
      the context requires.

    

    3. Compensation
      and Benefits

    

    3.1 Salary.
      For the
      performance of Employee’s duties hereunder, and commencing at the Effective
      Time, the Company shall pay Employee a salary (the “Base Compensation”) at the
      annualized rate of $140,000, payable in accordance with the normal payroll
      practices of the Company. Prior to the end of the Initial Term and any renewal
      term, Employee’s Base Compensation shall be reviewed, taking into account the
      performance of Employee, the financial condition of the Company, and such other
      information as the Company shall determine is appropriate. Based upon such
      review, the Company
      may
      increase (but not decrease) Employee’s Base Compensation, effective upon the
      commencement of the immediately following renewal term. Upon the first closing
      of a funding transaction following the Effective Time that provides gross
      proceeds to the Company of $5 million or more, the Employee's Base Compensation
      shall be increased to $155,000.

    

    3.2 Bonuses. The
      Employee will be eligible during the term of this Agreement for such additional
      bonus payments as may be awarded to the Employee from time to time by the
      Company. 

    

    3.3 Payment
      and Withholding.
      All
      payments required to be made by the Company to the Employee shall be made in
      accordance with the Company’s normal payroll practices and shall be subject to
      the withholding of such amounts, if any, relating to tax and other payroll
      deductions as the Company may reasonably determine should be withheld pursuant
      to any applicable law or regulation.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.4 Personnel
      Policies and Benefits.
      Unless
      otherwise specified herein, the Employee’s employment is subject to the
      Company’s personnel policies and procedures as they may be interpreted, adopted,
      revised or deleted from time to time in the Company’s sole discretion. The
      Employee will be eligible to participate on the same basis as similarly situated
      employees in the Company’s benefit plans in effect from time to time during his
      employment. All
      matters of eligibility for coverage or benefits under any benefit plan shall
      be
      determined in accordance with the provisions of the plan. The Company reserves
      the right to change, alter, or terminate any benefit plan in its sole
      discretion. 

    

    3.5 Paid
      Vacation.
      Employee shall be entitled to a minimum of twenty (20) paid vacation days
      annually. Such vacation days shall be earned at a rate of 1.67 days per month.
      This benefit may be amended by a written policy which the Company may adopt
      from
      time to time with respect to similarly situated employees, but shall not be
      less
      than twenty days. Vacation accrual limits and annual carryover limits shall
      be
      governed by such applicable vacation policy for similarly situated employees
      as
      the Company may have adopted.

    

    3.6 Stock
      Options.
      As soon
      as practicable following the Effective Time, the Company shall grant to the
      Employee an option to purchase up to 750,000 shares of the Company's Common
      Stock at a price per share equal to the closing price on the date such grant
      is
      made (the "Initial Grant"). The Initial Grant shall vest as to: one third on
      the
      first anniversary of the Effective Time; one third on the second anniversary
      of
      the Effective Time; and one third on the third anniversary of the Effective
      Time. The Initial Grant shall be governed pursuant to the NaturalNano, Inc.
      2007
      Incentive Stock Option Plan. 

    

    From
      time
      to time the Company may grant to Employee options under the Company’s then
      current stock option plan to purchase shares of the Company’s common stock at a
      stated exercise price per share ("Additional Grants"). Any Additional Grants
      will vest and be exercisable in accordance with a Stock Option Agreement to
      be
      executed pursuant to the Company’s then current stock option plan. Employee will
      participate in any stock grant program established by the Company on the same
      basis as similarly situated employees.

    

    3.7 Reimbursement
      of Expenses.
      Employee shall be eligible to be reimbursed for all reasonable business
      expenses, including but not limited to expenses for cellular
      telephone,
      BlackBerry, travel, meals and entertainment, incurred by Employee in connection
      with and reasonably related to the furtherance of the Company’s business in
      accordance with the Company’s policy.
      In
      addition, Employee will be eligible to be reimbursed for reasonable home office
      expenses provided Employee receives prior approval before incurring such
      expenses.
      Employee shall submit expense reports and receipts documenting the expenses
      incurred in accordance with Company policy.

    

    4. Termination

    

    4.1 Termination
      Events.
      The
      employment of the Employee and the Term of this Agreement will terminate upon
      the occurrence of any of the following events (“the Termination
      Event”):

    

    (a) The
      Employee’s Death;

     

    (b) The
      Employee’s “Disability”, defined, subject to applicable state and federal law,
      as termination by the Company because the Employee is unable to perform the
      essential functions of Employee’s position (with reasonable accommodation as
      such term is defined in the Americans with Disabilities Act). 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Employee
      is discharged by the Company for “Cause”. As used in this Agreement, the term
“Cause” shall mean a determination by the Company that: 

     

    (i) Employee
      has engaged in theft, dishonesty, or falsification or in conduct constituting
      a felony
      or
      a misdemeanor involving dishonesty or moral turpitude; or

    

    (ii) Employee
      has failed substantially to perform his duties with the Company (other than
      any
      such failure resulting from the Employee’s absence due to approved or legally
      protected leave) after written demand of no less than ten (10) days for
      substantial performance is requested by the Company, which demand specifically
      identifies the manner in which it is claimed Employee has not substantially
      performed his duties, or 

    

    (iii) Employee
      is engaged, or has engaged, in conduct which has, or would reasonably be
      expected to have, a material adverse effect on the Company; or 

    

    (iv)
       Employee
      has materially breached this Agreement, any other agreement between the Employee
      and the Company, or Employee’s duty of loyalty to the Company.

    

    In
      the
      event a failure or breach under (ii) or (iv) above is based on completed actions
      that cannot be undone, and therefore not, in the opinion of the Company, capable
      of cure, Employee may be terminated immediately provided it pays the Employee
      for the cure period. No termination shall be effected for Cause unless Employee
      has been provided with a written notice that states with reasonable specificity
      the acts or omissions which form the basis of the Company’s decision.

     

    (d) Employee
      is terminated by the Company “without Cause”, which the Company may do upon its
      election, regardless of whether it also has the option to terminate for Cause,
      upon written notice, which notice shall specify the date of such
      termination.

    

    (e) Employee
      terminates his employment due to “Good Reason”, which shall mean that any of the
      following has occurred (i) a material default by the Company in the performance
      of any of its obligations hereunder, which default remains uncured by the
      Company for a period of thirty (30) days following receipt of written notice
      thereof to the Company from Employee; (ii) without the Employee’s consent, a
      requirement imposed by the Company that the employee relocate his office to
      a
      location more than fifty (50) miles from his current office location;
      (iii)
      without the Employee’s consent, a reduction in salary imposed by the Company; or
      (iv) without the Employee’s consent, a material diminution in the Employee’s
      title or duties; provided however, that any actions taken by the Company to
      accommodate a disability of the Employee or pursuant to the Family and Medical
      Leave Act shall not be a Good Reason for purposes of this Agreement. The
      Employee may elect to terminate for Good Reason within thirty (30) days of
      the
      Employee’s becoming aware of the existence of Good Reason, so long as the
      Company has not previously notified the Employee of its decision to terminate
      his employment.

     

    (f) Employee
      terminates his employment without Good Reason, which Employee may do at any
      time
      with at least 30 days advance notice.

     

    (g) If
      at any
      time during the course of this Agreement the parties by mutual consent decide
      to
      terminate this Agreement, they shall do so by separate agreement setting forth
      the terms and condition of such termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.2 Effects
      of Termination

    

    (a) Upon
      termination of Employee’s employment hereunder for any reason the Company will
      pay Employee all amounts owed to Employee through the date of Termination and
      any amounts earned by Employee as of the date of Termination but due to be
      paid
      Employee at a future date shall be paid when otherwise due, in accordance with
      applicable law. Notwithstanding any provision herein to the contrary, if the
      Employee is terminated for Cause he shall only be entitled to receive salary
      and
      vacation pay accrued up to and including the date of termination. Upon
termination,
      the entitlement of the Employee or his Estate to benefits, or to continuation
      or
      conversion rights, under any Company sponsored benefit plan shall be determined
      in accordance with applicable law and the provisions of such plan. 

     

    (b)
       Upon
      termination of Employee’s employment under Sections 4.1 (d) or (e), if the
      Employee executes, and does not revoke, a Separation Agreement and Release
      in a
      form acceptable to the Company, the Company shall pay Employee, on the Company’s
      regular payroll dates, commencing on the first such date that occurs at least
      eight days following the Employee’s execution of the Separation Agreement and
      Release, amounts equal to the then applicable Base Compensation, excluding
      bonus, for a period of six (6) months; pay Employee a portion of any bonus
      he
      would have earned had he remained employed, prorated based on the number of
      months he was employed during the calendar year for which the bonus is
      calculated, and paid on the date it would have been paid had he remained
      employed; and if the Employee timely elects and remains eligible for continued
      coverage under COBRA, the Company will pay that portion of the COBRA premiums
      it
      was paying prior to the date of Termination for the period the Employee is
      receiving severance under this Agreement or until the Employee is eligible
      for
      health care coverage under another Employer’s plan, whichever period is shorter.

    

    (c) Following
      a Termination Event, both the Employee and the Company agree not to make to
      any
      person, including but not limited to customers of the Company, any statement
      that disparages the other or which reflects negatively upon the other in any
      manner likely to be harmful to them or their business, business reputation
      or
      personal reputation, including but not limited to statements regarding the
      Company’s financial condition, its officers, directors, shareholders, employees
      and affiliates; provided that both the Employee and the Company may respond
      accurately and fully to any question, inquiry or request for information when
      required by legal process. The Company’s obligations under this section are
      limited to the Company’s officers and directors and Company representatives with
      knowledge of this provision.

    

    (d) Following
      a Termination Event, Employee shall fully cooperate with the Company in all
      matters relating to the winding up of Employee’s pending work including, but not
      limited to, any litigation in which the Company is involved, and the orderly
      transfer of any such pending work to such other Employees as may be designated
      by the Company.

     

    5. General
      Provisions

    

    5.1 Assignment.
      Neither
      party may assign or delegate any of his or its rights or obligations under
      this
      Agreement without the prior written consent of the other party. Provided
      however, the provisions of this Agreement shall inure to the benefit of, and
      be
      binding upon, the Company and its successors and permitted assigns and Employee
      and Employee’s legal representatives, heirs, legatees, distributees, assigns and
      transferees by operation of law, whether or not any such person shall have
      become a party to this Agreement and have agreed in writing to join and be
      bound
      by the terms and conditions hereof.

    

    5.2 Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties with respect to
      the
      subject matter hereof and supersedes any and all prior agreements between the
      parties. The parties hereto have entered into a Proprietary Information,
      Inventions, Non-Competition and Non-Solicitation Agreement with the same
      Effective Date as this Agreement which
      may
      be amended by the parties from time to time without regard to this Agreement.
      The Proprietary Information, Inventions, Non-Competition and Non-Solicitation
      Agreement, contains provisions that are intended by the parties to survive
      and
      do survive termination or expiration of this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.3 Modifications.
      This
      Agreement may be changed or modified only by an agreement in writing signed
      by
      both parties hereto.

    

    5.4 Prior
      Agreements.
      This
      Agreement supersedes all prior written and verbal agreements with the Company
      and/or its Board of Directors and shall govern all future employment
      obligations.

    

    5.5 Headings.
      The
      section headings contained in this Agreement are for reference purposes only
      and
      shall not in any way affect the meaning or interpretation of this
      Agreement.

     

    5.6 Governing
      Law.
      This
      Agreement shall be governed by, construed and enforced in accordance with,
      the
      laws of the State of Delaware, and venue and jurisdiction for any disputes
      hereunder shall be heard in any court of competent jurisdiction in Delaware
      for
      all purposes.

    

    5.7 Severability.
      If any
      provision of this Agreement is held by a court of competent jurisdiction to
      be
      invalid, void or unenforceable, the remaining provisions shall nevertheless
      continue in full force and effect.

    

    5.8 Further
      Assurances.
      The
      parties will execute such further instruments and take such further actions
      as
      may be reasonably necessary to carry out the intent of this
      Agreement.

    

    5.9 Notices.
      Any
      notice expressly provided for under this Agreement shall be in writing, shall
      be
      given either by hand delivery, by courier, or by mail and shall be deemed
      sufficiently given when actually received by the party to be notified, or,
      if
      delivered by courier, when delivered to the party’s address as set forth below,
      or when mailed, if mailed by certified or registered mail, postage prepaid,
      addressed to the party’s address as set forth below. Either party may, by notice
      to the other party, given in the manner provided for herein, change their
      address for receiving such notices.

    

    
      	 	
              ·

            	
              If
                to the Company, to the President or CEO in person or to its corporate
                headquarters at the time notice is given, “Attention: President or
                CEO”.

            

    

     

    
      	 	
              ·

            	
              If
                to the Employee, to his in person or to his home address as listed
                in
                Company records at the time notice is given. 

            

    

     

    5.10 No
      Waiver.
      The
      failure of either party to enforce any provision of this Agreement shall not
      be
      construed as a waiver of that provision, nor prevent that party thereafter
      from
      enforcing that provision of any other provision of this Agreement.

    

    5.11 Legal
      Fees and Expenses.
      In the
      event of any disputes under this Agreement, each party shall be responsible
      for
      their own legal fees and expenses which it may incur in resolving such dispute,
      unless otherwise prohibited by applicable law or a court of competent
      jurisdiction. 

    

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

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Company and Employee have executed this Agreement,
      effective as of the day and year first above written.

    

    

    
      	
              NaturalNano,
                Inc.

            	
              Employee:

            
	
               

               

              By:
                  /s/
                Cathy A. Fleischer

              
                

              

              Name:
                Cathy A. Fleischer

              Title:
                President

            	
               

               

              /s/
                Kent A. Tapper

              
                
                  

                

              

              Kent
                A. Tapper

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