Exhibit 10.4

REGULATION S STOCK PURCHASE AGREEMENT

Dated: 29th June, 2005

for

Material Technologies Inc.- COMMON STOCK

TABLE OF CONTENTS

                                                                                                                                                          Page

ARTICLE I  PURCHASE, SALE AND TERMS OF
SHARES........................................................... 1

     1.1      The
Shares...........................................................................................................................
1

     1.2      Price;
Closing.......................................................................................................................
1

     1.3      Delivery of Purchase
Notice.................................................................................................
1

     1.4      Covenant of Best
Efforts......................................................................................................
1

     1.5      Representations by the
Purchaser.........................................................................................
1

ARTICLE II  COVENANTS OF THE
COMPANY..........................................................................
7

     2.1      Operations..........................................................................................................................
7

     2.2      Inspection...........................................................................................................................
7

     2.3      Share
Registry....................................................................................................................
7

ARTICLE III  REPRESENTATIONS AND WARRANTIES OF THE
COMPANY........................ 7

     3.1      Organization and Standing..................................................................................................
8

     3.2      Authority for Agreement.....................................................................................................
8

     3.3      Securities Law Filings,
Etc..................................................................................................
8

     3.4      Capitalization and Issuances of
Stock.................................................................................
9

     3.5      Subsidiaries.......................................................................................................................
9

     3.6      Issuance of
Securities........................................................................................................
9

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     3.7      Governmental Consents; Offering
Exemption.................................................................. 10

     3.8      Litigation.......................................................................................................................
10

     3.10      Financial
Statements....................................................................................................
10

     3.11      Absence of
Liabilities..................................................................................................
10

     3.12      Taxes.........................................................................................................................
11

     3.13      Property and
Assets...................................................................................................
11

     3.14      Intellectual
Property...................................................................................................
11

     3.15      Compliance...............................................................................................................
12

     3.16      Employees................................................................................................................
12

     3.17      Environmental and Safety
Matters..............................................................................
12

     3.18      Books and
Records..................................................................................................
13

     3.19      Brokers or
Finders...................................................................................................
13

     3.20      Disclosures..............................................................................................................
13

     3.21      Escrow...................................................................................................................
13

ARTICLE IV  REGISTRATION
RIGHTS...............................................................................
13

     4.1      Piggy-Back
Registrations...........................................................................................
13

     4.2      Effectiveness.............................................................................................................
14

     4.3      Indemnification by the
Company................................................................................
14

     4.4      Indemnification by Holders of Registrable
Shares....................................................... 16

     4.5      Exchange Act
Reports..............................................................................................
17

     4.6      Expenses.................................................................................................................
18

     4.7      Transferability..........................................................................................................
18

ARTICLE V 
MISCELLANEOUS.........................................................................................
18

     5.1      No Waiver; Cumulative
Remedies............................................................................
18

     5.2      Amendments, Waivers and
Consents.......................................................................
18

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     5.3      Addresses for
Notices...........................................................................................
18

     5.4      Costs, Expenses and
Taxes...................................................................................
19

     5.5      Effectiveness; Binding Effect;
Assignment............................................................... 19

     5.6      Prior
Agreements..................................................................................................
19

     5.7      Severability...........................................................................................................
19

     5.8      Governing Law;
Venue.........................................................................................
19

     5.9      Headings..............................................................................................................
20

     5.10    Survival of Representations and
Warranties........................................................... 20

     5.11    Counterparts........................................................................................................
20

     5.12     Further
Assurances..............................................................................................
20

Regulation S Stock Purchase Agreement, dated as of 28th June 2005 between
Material Technologies, Inc. a Delaware corporation having offices at 11661 San
Vicente Boulevard, Suite 707, Los Angeles, California 90049 (the “Company”), and
Ischian Holdings, Ltd, a BVI International Business Company, the registered
address of which is; 30 De Castro Street, Road Town Tortola, British Virgin
Islands, (the “Purchaser”).

ARTICLE I
PURCHASE, SALE AND TERMS OF SHARES

1.1.      The Company agrees to issue and sell to the Purchaser in an offshore
transaction negotiated outside the U.S. and to be consummated and closed outside
the U.S. and, in consideration of and in express reliance upon the
representations, warranties, covenants, terms and conditions of this Agreement,
the Purchaser agrees to purchase, subject to the conditions hereinafter set
forth, from the Company up to [8,500,000 shares] (the “Shares”) of the Company
as per the following:

> 1.1.a    at a per share purchase price which shall be 20% of the bid price of
> the Company’s shares of Common Stock (the “Purchase Price”) as quoted on the
> OTC Bulletin Board (the “OTCBB”) (or on such other United States stock
> exchange or public trading market on which the shares of the Company trade if,
> at the time of purchase, they are not trading on the OTCBB) for the day
> immediately preceding the date (the “Call Date”) the purchase order (the
> “Purchase Notice”) is received by the Company for a Purchase Notice of not
> less than US$100,000 gross. The floor purchase price will be set at $.15 U.S.

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1.2.      Price; Closing. The transaction will be closed in an offshore
transaction, and the Purchaser will pay the Purchase Price by wire transfer of
immediately available funds in one single payment; the first upon receipt of the
cleared Regulation S Certificate(s). Purchaser shall initiate the closing
process by sending a written Purchase Notice to Seller at the address set forth
below.  The Purchase Notice shall set forth the number of Shares to be
purchased, the total consideration to be paid, the price per share and the
delivery address for the share certificates (the “Closing”).

1.3.      Delivery of Purchase Notice.  Purchaser shall have 90 days from the
date of this Agreement to deliver one or more Purchase Notices to Seller.  A
Purchase Notice may be for all or a part of the shares set forth in Section 1.1
above.  Purchaser may deliver more than one Purchase Notice, provided however,
that number of shares purchased pursuant to all Purchase Notices shall not
exceed the number of Shares set forth in Section 1.1. 

1.4.      Covenant of Best Efforts.  The Purchaser agrees to use its best
efforts to purchase up to [8,500,000] shares between the date hereof and
November 2005.  Purchaser shall only be liable to purchase the number of Shares
set forth in each Purchase Notice. Company shall have the right to terminate
with a ten business day notice.

1.5.      Representations by the Purchaser.  The Purchaser makes the following
representations and warranties to the Company:

> A.        Access to Information The Purchaser, in making the decision to
> purchase the Shares, has relied upon the representations and warranties
> contained in this Agreement as well as independent investigations made by it
> and/or its representatives, if any.  The Purchaser and/or its representatives
> during the course of this transaction, and prior to the purchase of any
> Shares, has had the opportunity to ask questions of and receive answers from
> the management of the Company concerning the business of the Company and to
> receive any additional information, documents, records and books relative to
> the business, assets, financial condition, results of operations and
> liabilities (contingent or otherwise) of the Company.
> 
> B.        Sophistication and Knowledge. The Purchaser and/or its
> representatives has such knowledge and experience in financial and business
> matters that it can represent itself and is capable of evaluating the merits
> and risks of the purchase of the Shares.  The Purchaser is not relying on the
> Company with respect to the tax and other economic considerations of an
> investment in the Shares,

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> and the Purchaser has relied on the advice of, or has consulted with, only the
> Purchaser's own advisor(s). The Purchaser represents that it has not been
> organized for the purpose of acquiring the Shares.
> 
> C.        Lack of Liquidity.  The Purchaser acknowledges that the purchase of
> the Shares involves a high degree of risk and further acknowledges that it can
> bear the economic risk of the purchase of the Shares, including the total loss
> of its investment.  The Purchaser acknowledges and understands that the Shares
> may not be sold to a U.S. Person (as hereinafter defined) or into the United
> States for a period of one (1) year from the date of purchase and that
> Purchaser has no present need for liquidity in connection with its purchase of
> the Shares.
> 
> D.        No Public Solicitation.  The Purchaser is not subscribing for the
> Shares as a result of or subsequent to any advertisement, article, notice or
> other communication published in any newspaper, magazine or similar media or
> broadcast over television or radio, or presented at any seminar or meeting, or
> any solicitation of a subscription by a person not previously known to the
> Purchaser in connection with investments in securities generally.  Neither the
> Company nor the Purchaser has engaged in any ‘Directed Selling Efforts in the
> U.S.’ as defined in Regulation S promulgated by the Securities and Exchange
> Commission (“SEC”) pursuant to The Securities Act of 1933 (the “Securities
> Act”).
> 
> E.         Authority.  The Purchaser has full right and power to enter into
> and perform pursuant to this Agreement and make an investment in the Company,
> and this Agreement constitutes the Purchaser’s valid and legally binding
> obligation, enforceable in accordance with its terms. The Purchaser is
> authorized and otherwise duly qualified to purchase and hold the Shares and to
> enter into this Agreement.
> 
> F.         Brokers or Finders.  No person has or will have, as a result of the
> transactions contemplated by this Agreement, any right, interest or valid
> claim against or upon the Company for any commission, fee or other
> compensation as a finder or broker because of any act or omission by such
> Purchaser or its respective agents, except for AmeriFund Capital Finance, LLC,
> a Florida limited liability corporation and Hunter Wise Financial Securities,
> LLC, a California limited liability corporation..
> 
> G.        Requirements for Transfer.  Purchaser agrees that it will not
> transfer the Shares, and the Company shall not be required to transfer the
> shares unless the transferee executes a representation letter substantially in
> accordance with Exhibit A hereto.

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> H.        Compliance with Regulation S. Any resale of the Shares during the
> ‘distribution compliance period’ as defined in Rule 902(f) to Regulation S
> shall only be made in compliance with exemptions from registration afforded by
> Regulation S.
> 
> I.          Regulation S Exemption.  The Purchaser understands that the Shares
> are being offered and sold to it in reliance on an exemption from the
> registration requirements of United States federal and state securities laws
> under Regulation S promulgated under the Securities Act and that the Company
> is relying upon the truth and accuracy of the representations, warranties,
> agreements, acknowledgments and understandings of the Purchaser set forth
> herein in order to determine the applicability of such exemptions and the
> suitability of the Purchaser to acquire the Shares.  In this regard, the
> Purchaser represents, warrants and agrees that:
> 
> 
> > a.         The Purchaser is not a U.S. Person (as defined below) and is not
> > an affiliate (as defined in Rule 501(b) under the Securities Act) of the
> > Company.  A U.S. Person means any one of the following:
> > 
> > 
> > > i           any natural person resident in the United States of America;
> > > 
> > > ii          any partnership or corporation organized or incorporated under
> > > the laws of the United States of America;
> > > 
> > > iii         any estate of which any executor or administrator is a U.S.
> > > person;
> > > 
> > > iv         any trust of which any trustee is a U.S. person;
> > > 
> > > v          any agency or branch of a foreign entity located in the United
> > > States of America;
> > > 
> > > vi         any non-discretionary account or similar account (other than an
> > > estate or trust) held by a dealer or other fiduciary for the benefit or
> > > account of a U.S. person;
> > > 
> > > vii        any discretionary account or similar account (other than an
> > > estate or trust) held by a dealer or other fiduciary organized,
> > > incorporated or (if an individual) resident in the United States of
> > > America; and

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> > > viii       any partnership or corporation if:
> > > 
> > > 
> > > > (1)        organized or incorporated under the laws of any foreign
> > > > jurisdiction; and
> > > > 
> > > > (2)        formed by a U.S. person principally for the purpose of
> > > > investing in securities not registered under the Securities Act, unless
> > > > it is organized or incorporated, and owned, by accredited investors (as
> > > > defined in Rule 501(a) under the Securities Act) who are not natural
> > > > persons, estates or trusts.
> > 
> > b.         At the time of the origination of contact concerning this
> > Agreement and the date of the execution and delivery of this Agreement, the
> > Purchaser was outside of the United States.
> > 
> > c.         The Purchaser will not, during the period commencing on the date
> > of issuance of the Shares and ending on the first anniversary of such date,
> > or such shorter period as may be permitted by Regulation S or other
> > applicable securities law (the “Restricted Period”), offer, sell, pledge or
> > otherwise transfer the shares in the United States, or to a U.S. Person for
> > the account or for the benefit of a U.S. Person, or otherwise in a manner
> > that is not in compliance with Regulation S.
> > 
> > d.         The Purchaser will, after expiration of the Restricted Period,
> > offer, sell, pledge or otherwise transfer the Shares only pursuant to
> > registration under the Securities Act or an available exemption therein and,
> > in accordance with all applicable state and foreign securities laws.
> > 
> > e.         The Purchaser has not engaged in, and prior to the expiration of
> > the Restricted Period will not engage in, any short selling of or any
> > hedging transaction with respect to the Shares, including without
> > limitation, any put, call or other option transaction, option writing or
> > equity swap.
> > 
> > f.          Neither the Purchaser nor or any person acting on its behalf has
> > engaged, nor will engage, in any directed selling efforts to a U.S. Person
> > with respect to the Shares and the Purchaser and any person acting on its
> > behalf have complied and will comply with the “offering restrictions”
> > requirements of Regulation S under the Securities Act.
> > 
> > g.         The transactions contemplated by this Agreement have not

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> > been pre-arranged with a buyer located in the United States or with a U.S.
> > Person, and are not part of a plan or scheme to evade the registration
> > requirements of the Securities Act.
> > 
> > h.         Neither the Purchaser nor any person acting on its behalf has
> > undertaken or carried out any activity for the purpose of, or that could
> > reasonably be expected to have the effect of, conditioning the market in the
> > United States, its territories or possessions, for any of the Shares.  The
> > Purchaser agrees not to cause any advertisement of the Shares to be
> > published in any newspaper or periodical or posted in any public place and
> > not to issue any circular relating to the Shares, except such advertisements
> > that include the statements required by Regulation S under the Securities
> > Act, and only offshore and not in the U.S. or its territories, and only in
> > compliance with any local applicable securities laws.
> > 
> > i.          Each certificate representing the Shares shall be endorsed with
> > the following legends, in addition to any other legend required to be placed
> > thereon by applicable federal or state securities laws:
> > 
> > 
> > > (A)        “THE SHARES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S.
> > > PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS
> > > AMENDED (“THE SECURITIES ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED
> > > STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT IN
> > > RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT.”
> > > 
> > > (B)        “TRANSFER OF THESE SHARES IS PROHIBITED, EXCEPT IN ACCORDANCE
> > > WITH THE PROVISIONS OF REGULATION S, PURSUANT TO REGISTRATION UNDER THE
> > > SUCURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION. 
> > > HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
> > > SECURITIES ACT.”

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> > j.          The Purchaser consents to the Company making a notation on its
> > records or giving instructions to any transfer agent of the Company in order
> > to implement the restrictions on transfer of the Shares set forth in this
> > Section 1.5.
> > 
> > k.         The Purchaser and any transferees of the shares of the Company’s
> > Common Stock purchased by the Purchaser pursuant to this Agreement shall not
> > be named or identified on any lists of the Office of Foreign Assets Control
> > who are prohibited from purchasing securities of U.S. domestic companies. 
> > Further, this transaction and any resale of shares by the Purchaser to
> > transferees shall not violate the anti-money laundering and other provisions
> > of the Bank Secrecy Act, as amended by the U.S. Patriot Act.
> > 
> > l.          Notwithstanding anything contained herein to the contrary, the
> > Company may refuse to register any transfer of the shares of common stock of
> > the Company that are not made in accordance with Regulation S, pursuant to
> > the registration under the Act or pursuant to an available exemption from
> > registration.

ARTICLE II
COVENANTS OF THE COMPANY

2.1.      Operations.  From and after the date hereof through the final purchase
of the Shares, the Company will operate only in the ordinary course of business.

2.2.      Inspection.  The Company shall permit authorized representatives of
the Purchaser to visit and inspect any of the properties of the Company,
including its books of account (and to make copies thereof and take extracts
there from), and to discuss its affairs, finances and accounts with its
officers, employees, independent accountants, consultants and attorneys, all at
such reasonable times and as often as may be reasonably requested.

2.3.      Share Registry; Removal of Legend.  The Company consents to Purchaser
reselling Shares and to requesting the issuance of share certificates to third
parties, provided however that all such sales are conducted in full compliance
with Regulation S and the Company and its transfer agent are advised of the
identity of each subsequent purchaser.  Shares for which the Regulation S
distribution compliance period has expired shall be delivered free of any
Regulation S legend.  The Company agrees that it shall instruct its transfer
agent to automatically remove any legend required by Regulation S upon the
expiration of the distribution compliance period.  Holders of shares bearing a
Regulation S legend may have the legend

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removed by submitting certificate(s) together with an affidavit as to ownership
and expiration of the distribution compliance period.  Neither the Company nor
the stock transfer agent shall be obligated to remove any other legend required
by law solely by reason of this Article 2.3.

ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

          The Company represents and warrants to the Purchaser as follows, which
representations and warranties shall be true and correct in all material
respects on the date of each closing of the purchase of the Shares:

3.1.      Organization and Standing.  The Company has been duly incorporated and
is validly existing and in good standing under the laws of the State of Deleware
and has the requisite corporate power and authority necessary to own its
properties and to conduct its business as presently conducted, to deliver this
Agreement and all other agreements required to be executed by the Company in
connection with performance under this Agreement (collectively, the “Ancillary
Agreements”, and collectively with this Agreement, the “Transaction Documents”),
to issue and sell the Shares and to carry out the provisions of Transaction
Documents.  The Company is duly qualified to transact business as a foreign
corporation and is in good standing in every jurisdiction in which the failure
to so qualify would have a material adverse effect on the operations or
financial condition of the Company.

3.2.      Authority for Agreement.  The execution and delivery by the Company of
the Transaction Documents, and the performance by the Company of its obligations
there under, have been duly and validly authorized by all requisite corporate
action on the part of the Company.  The Transaction Documents, when executed and
delivered, will be legally valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws of general application affecting enforcement of creditors’ rights,
and general principles of equity that restrict the availability of equitable
remedies.  To the Company’s knowledge, the execution and delivery of the
Transaction Documents by the Company and the performance by the Company of its
obligations there under do not, as of the date hereof, (i) conflict with or
violate the provisions of the Company’s Restated Charter or Bylaws, (ii) require
on the part of the Company any filing with, or any permit, authorization,
consent or approval of, any Governmental Entity, (iii) conflict with, result in
a breach of, constitute (with or without due notice or lapse of time or both) a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify or cancel, or require any notice, consent or
waiver under, any contract, lease, sublease, license, sublicense, franchise,
permit, indenture, agreement or mortgage

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for borrowed money, instrument of indebtedness, lien, encumbrance or other
arrangement to which the Company is a party or by which the Company is bound or
to which its assets are subject, (iv) result in the imposition of any Security
Interest upon any assets of the Company or (v) violate or contravene any United
States federal, Delaware corporate or applicable state statute, rule or
regulation applicable to the Company or any order, writ, judgment, injunction,
decree, determination or award.

3.3.      Securities Law Filings, Etc.  The Company has previously furnished to
the Investors the Company’s filings with the Securities and Exchange Commission
as on the attached schedule 3.3 (collectively the “SEC Filings”). The SEC
Filings, as of the date of the filing thereof with the SEC, complied in all
material respects with the provisions of the Securities Exchange Act of 1934
(the “Exchange Act”), and in each case the rules and regulations promulgated
thereunder, and none of such filings contained any untrue statement of a
material fact or omitted to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

3.4.      Capitalization and Issuances of Stock.  (a) The Company has authorized
and outstanding capital stock as set forth in its SEC Filings.  All outstanding
shares of capital stock of the Company are duly authorized, validly issued and
outstanding, fully paid and non-assessable.  Except as set forth in the SEC
Filings: (i) there are no outstanding options, stock subscription agreements,
warrants or other rights permitting or requiring the Company or others to
purchase or acquire any shares of capital stock or other equity securities of
the Company; (ii) there are no securities issued or outstanding which are
convertible into or exchangeable for any of the foregoing and there are no
contracts, commitments or understandings, whether or not in writing, to issue or
grant any such option, warrant, right or convertible or exchangeable security;
(iii) there are no shares of stock or other securities of the Company reserved
for issuance for any purpose; (iv) there are no voting trusts or other
contracts, commitments, understandings, arrangements or restrictions of any kind
with respect to the ownership, voting or transfer of shares of stock or other
securities of the Company to which the Company or, to the best of the Company's
knowledge, any stockholder of the Company is a party, including without
limitation, any preemptive rights, rights of first refusal, proxies or similar
rights and (v) there is no person who holds a right to require the Company to
register any securities of the Company under the Securities Act or to
participate in any such registration.  The issued and outstanding shares of
capital stock of the Company conform to all statements in relation thereto
contained in the SEC Filings, and the SEC Filings describe all material terms
and conditions thereof.  All issuances by the Company of its securities were
exempt from registration under the Securities Act and any applicable state
securities laws or were issued

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pursuant to a registration statement declared effective by the SEC under the
Securities Act and which registration statement was available for the sale of
the type of securities sold thereunder. With exception to the aforementioned,
the Company is in a few disputes that are being resolved through issuance of
stock. The first is for 1,494,000 million shares or 1.78% of the shares
outstanding. This issuance has a two year anti dilutive clause and a nine month
lock up for resale. The second issuance is for 5% of the shares outstanding as
of 6/30/05. These shares will have an 18 month lock up and no anti dilutive
clause.

3.5.      Subsidiaries. The Company has one subsidiary.

3.6.      Issuance of Securities.  The issuance, sale and delivery of the
Securities in accordance with this Agreement, have been, or will be on or prior
to the Closing, duly authorized, and the Shares reserved for issuance by all
necessary corporate action on the part of the Company.  The Securities, when so
issued, sold and delivered against payment therefore in accordance with the
provisions of this Agreement will be duly and validly issued, fully paid and
non-assessable, and will be free of all liens, charges, claims, encumbrances and
restrictions on transfer other than the restrictions on transfer under the
Transaction Documents and under applicable state and federal securities laws.

3.7.      Governmental Consents. No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any
governmental entity or regulatory body (a “Governmental Entity”) is required on
the part of the Company in connection with the execution and delivery of the
Transaction Documents, the offer, issue, sale and delivery of the Securities or
the other transactions to be consummated as contemplated by this Agreement
except qualifications or filings under the Securities Act and other applicable
state securities laws which qualifications or filings, if required, will be
obtained or made and will be effective within the time periods required by law.

3.8.      Offering Exemption.  Assuming the accuracy of the representations and
warranties made by the Purchaser, the offer, sale and issuance of the Securities
to the Purchaser will be exempt from the registration requirements of the
Securities Act and will have been registered or qualified (or are exempt from
registration and qualification) under the registration, permit or qualification
requirements of all applicable state securities laws.  Neither the Company nor
any agent on its behalf has solicited or will solicit any offers to sell or has
offered to sell or will offer to sell all or any part of the Securities to any
person or persons so as to bring the sale of such Securities by the Company
within the registration provisions of the Securities Act or any state securities
laws.

3.9.      Litigation.  There is no action, suit, proceeding or investigation
pending

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or, to the Company’s knowledge, is currently threatened, against the Company,
except as described on Schedule 3.9 to this Agreement.  The Company is not aware
of any basis for any of the foregoing or any intent on its part to initiate any
of the foregoing.

3.10.    Financial Statements.  The financial statements set forth in the
Company’s SEC Filings (the “Financial Statements”) are complete and correct in
all material respects, are in accordance with the books and records of the
Company as at the dates and for the periods indicated, and have been prepared in
accordance with generally accepted accounting principles consistently applied to
companies domiciled in the United States, except to the extent that the
un-audited financial statements may not contain all required footnotes and are
subject to normal year-end audit adjustments that in the aggregate will not be
material.

3.11.    Absence of Liabilities.  Except as set forth in the Financial
Statements, the Company has no material liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business, that
individually or in the aggregate are not material to the financial condition or
operating results of the Company, and (ii) obligations not required under
generally accepted accounting principles to be reflected in the Financial
Statements.

3.12.    Taxes.  The Company has paid all taxes due as of the date hereof.  The
Company has timely filed or has obtained presently effective extensions with
respect to all Federal, state, county, local and foreign tax returns
(collectively, “Tax Returns”) that the Company are required to file.  The Tax
Returns are true and correct and all taxes shown thereon to be due have been
timely paid, with any exceptions permitted by any taxing authority not having a
materially adverse effect on the Company.  No penalties or other chares are or
will become due with respect to any such Tax Returns as the result of the late
filing thereof.  The Company has either paid or established in the Financial
Statements adequate reserves for the payment of all such taxes due or claimed to
be due by any taxing authority in connection with any such Tax Returns.  None of
the Company's federal income tax returns have been audited by the Internal
Revenue Service, and no controversy with respect to taxes of any type is pending
or, to the knowledge of the Company, threatened.  The Company has withheld or
collected from each payment made to its employees the amount of all taxes
required to be withheld or collected therefrom and has paid all such amounts to
the appropriate taxing authorities when due.  Neither the Company nor any of its
stockholders has ever filed (i) an election pursuant to Section 1362 of the
Internal Revenue Code of 1986, as amended (the “Code”), that the Company be
taxed as an S Corporation, or (ii) a consent pursuant to Section 341(f) of the
Code relating to collapsible corporations.

3.13.    Property and Assets.  The Company has good title to, or a valid
leasehold

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interest in, all of its material properties and assets, including all properties
and assets reflected in the Balance Sheet.  None of such properties or assets is
subject to any mortgage, pledge, lien, security interest, lease, charge or
encumbrance other than those the material terms of which are described in the
Balance Sheet or in Schedule 3.13.  The Company does not own any real estate. 
All personal property of the Company is in good operating condition and repair
(ordinary wear and tear and routinely scheduled maintenance excepted) and is
suitable and adequate for the uses for which it is intended or is being used.

3.14.    Intellectual Property.  To the best of the Company’s knowledge the
Company owns, or has the right to use, free and clear of all liens, charges,
claims and restrictions, all patents, patent applications, trademarks, service
marks, trademark and service mark applications, trade names, copyrights and
licenses presently owned or held by the Company or employed or proposed to be
employed by it in its business as now conducted or proposed to be conducted, as
well as any agreement under which the Company has access to any confidential
information used by the Company in its business (the “Intellectual Property
Rights”).  Except as set forth on Schedule 3.14, the Company has not received
any communications alleging that the Company has violated any of the patents,
trademarks, service marks, trade names, copyrights, licenses, trade secrets or
other proprietary rights of any other person or entity (“Third-Party
Intellectual Property Rights”), and to the best of Company’s knowledge the
business proposed by the Company will not cause the Company to infringe or
violate any Third Party Intellectual Property Rights.  The Company is not aware
of any violation by any third party of any Intellectual Property Rights of the
Company or of any defects therein or in the title thereto.  The Company is not
aware that any employee is obligated under any contract (including any license,
covenant or commitment of any nature) or other agreement, or subject to any
judgment, decree or order of any court or administrative agency, that would
conflict or interfere with: (i) the performance of such employee’s duties as an
officer, employee or director of the Company; (ii) the use of such employee’s
best efforts to promote the interests of the Company; or (iii) the Company’s
business as conducted.

3.15.    Compliance.  The Company has, in all material respects, complied with
all laws, regulations and orders applicable to their business and have all
material permits and licenses required thereby.  There is no term or provision
of any material mortgage, indenture, contract, agreement or instrument to which
the Company is a party or by which it is bound, or, to the best of the Company’s
knowledge, of any state or Federal judgment, decree, order, statute, rule or
regulation applicable to or binding upon the Company that materially adversely
affects the business, prospects, condition, affairs or operations of the Company
or any of its properties or assets.  To the Company’s knowledge, no employee of
the Company is in

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violation of any contract or covenant (either with the Company or with another
entity) relating to employment, patent, other proprietary information
disclosure, non-competition, or non-solicitation.

3.16.    Employees.  The Company is not aware that any employee of the Company
has plans to terminate his or her employment relationship with the Company.  The
Company has complied in all material respects with all applicable laws relating
to wages, hours, equal opportunity, collective bargaining, workers' compensation
insurance and the payment of social security and other taxes.  None of the
employees of the Company is represented by any labor union, and there is no
labor strike or other labor trouble (including, without limitation, any
organizational drive) pending or, to the knowledge of the Company, threatened
with respect to the Company.

3.17.    Environmental and Safety Matters.  To the Company's knowledge, the
Company is not in material violation of any applicable environmental law, and to
its knowledge, no material expenditures are or will be required in order to
comply with any such environmental law.

3.18.    Books and Records.  The books of account, ledgers, order books, records
and documents of the Company accurately and completely reflect all material
information relating to the business of the Company the location and collection
of its assets, and the nature of all transactions giving rise to the obligations
or accounts receivable of the Company.

3.19.    Brokers or Finders.  The Company has not agreed to incur, directly or
indirectly, any liability for brokerage or finders’ fees, agents’ commissions or
other similar charges in connection with the Transaction Documents or any of the
transactions contemplated hereby or thereby, except for: AmeriFund Capital
Finance, LLC,  a Florida limited liability corporation or Hunter Wise Financial
Securities, LLC, a California limited liability corporation.

3.20.    Disclosures.  The Company has provided the Purchaser with all
information requested by the Purchaser in connection with their decision to
purchase the Securities.  Neither this Agreement, any Exhibit hereto nor the
Transaction Documents, nor any report, certificate or instrument furnished to
the Purchaser or its agents in connection with the transactions contemplated by
this Agreement, when read together, contains or will contain any material
misstatement of fact or omits to state a material fact necessary to make the
statements contained herein or therein not misleading.

3.21     Escrow. Delmer C. Gowing III, P.A., located at: 6711 N.Ocean Blvd,
Ocean Ridge, Florida 33435 will serve as Escrow Agent for this transaction.

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ARTICLE IV
REGISTRATION RIGHTS

4.1.      Piggy-Back Registrations.  If at any time after the first anniversary
of the purchase of the Shares, the Company shall determine to register for its
own account or the account of others under the Securities Act (including
pursuant a demand for registration of any stockholder of the Company) any of its
equity securities, other than on Form S-4 or Form S-8 or their then equivalents
relating to shares of Common Stock to be issued solely in connection with any
acquisition of any entity or business or shares of Common Stock issuable in
connection with stock option or other employee benefit plans, it shall send to
each holder of Registrable Shares who is entitled to registration rights under
this Section 4.1 written notice of such determination and, if within 15 days
after receipt of such notice, such holder shall so request in writing, the
Company shall use its best efforts to include in such registration statement all
or any part of the Registrable Shares such holder requests to be registered,
except that if; in connection with a public offering of the Company the managing
underwriter shall impose a limitation on the number of shares of such Common
Stock which may be included in the registration statement because, in its
judgment, such limitation is necessary to effect an orderly public distribution,
then the Company shall be obligated to include in such registration statement
only such limited portion of the Registrable Shares with respect to which such
holder has requested inclusion hereunder on a pro rata basis.

“Registrable Shares” shall mean and include the Shares provided, however, that
shares of Common Stock which are Registrable Shares shall cease to be
Registrable Shares upon the consummation of any sale pursuant to a registration
statement or Rule 144 under the Securities Act.

4.2.      Effectiveness.  The Company will use its best efforts to maintain the
effectiveness for up to 90 days (or such shorter period of time as the
underwriters need to complete the distribution of the registered offering) of
any registration statement pursuant to which any of the Registrable Shares are
being offered, and from time to time will amend or supplement such registration
statement and the prospectus contained therein to the extent necessary to comply
with the Securities Act and any applicable state securities statute or
regulation.  The Company will also provide each holder of Registrable Shares
with as many copies of the prospectus contained in any such registration
statement as it may reasonably request.

4.3.      Indemnification by the Company.  (a)  In the event that the Company
registers any of the Registrable Shares under the Securities Act, the Company
will indemnify and hold harmless each holder and each underwriter of the
Registrable Shares (including their officers, directors, affiliates and
partners) so registered (including any broker or dealer

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through whom such shares may be sold) and each person, if any, who controls such
holder or any such underwriter within the meaning of Section 15 of the
Securities Act from and against any and all losses, claims, damages, expenses or
liabilities, joint or several, to which they or any of them become subject under
the Securities Act, applicable state securities laws or under any other statute
or at common law or otherwise, as incurred, and, except as hereinafter provided,
will reimburse each such holder, each such underwriter and each such controlling
person, if any, for any legal or other expenses reasonably incurred by them or
any of them in connection with investigating or defending any actions whether or
not resulting in any liability, as incurred, insofar as such losses, claims,
damages, expenses, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in the
registration statement, in any preliminary or amended preliminary prospectus or
in the final prospectus (or the registration statement or prospectus as from
time to time amended or supplemented by the Company) or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein not misleading, or any violation by the Company of any rule or
regulation promulgated under the Securities Act or any state securities laws
applicable to the Company and relating to action or inaction required of the
Company in connection with such registration, unless (i) such untrue statement
or alleged untrue statement or omission or alleged omission was made in such
registration statement, preliminary or amended preliminary prospectus or final
prospectus in reliance upon and in conformity with information furnished in
writing to the Company in connection therewith by any such holder of Registrable
Shares (in the case of indemnification of such holder), any such underwriter (in
the case of indemnification of such underwriter) or any such controlling person
(in the case of indemnification of such controlling person) expressly for use
therein, or unless (ii) in the case of a sale directly by such holder of
Registrable Shares (including a sale of such Registrable Shares through any
underwriter retained by such holder of Registrable Shares to engage in a
distribution solely on behalf of such holder of Registrable Shares), such untrue
statement or alleged untrue statement or omission or alleged omission was
contained in a preliminary prospectus and corrected in a final or amended
prospectus copies of which were delivered to such holder of Registrable Shares
or such underwriter on a timely basis, and such holder of Registrable Shares
failed to deliver a copy of the final or amended prospectus at or prior to the
confirmation for the sale of the Registrable Shares to the person asserting any
such loss, claim, damage or liability in any case where such delivery is
required by the Securities Act.

(b)        Promptly after receipt by any holder of Registrable Shares, any
underwriter or any controlling person of notice of the commencement of any
action in respect of which indemnity may be sought against the

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Company, such holder of Registrable Shares, or such underwriter or such
controlling person, as the case may be, will notify the Company in writing of
the commencement thereof (provided, that failure by any such person to so notify
the Company shall not relieve the Company from any liability it may have
hereunder to any other person entitled to claim indemnity or contribution
hereunder) and, subject to the provisions hereinafter stated, the Company shall
be entitled to assume the defense of such action (including the employment of
counsel, who shall be counsel reasonably satisfactory to such holder of
Registrable Shares, such underwriter or such controlling person, as the case may
be), and the payment of expenses insofar as such action shall relate to any
alleged liability in respect of which indemnity may be sought against the
Company.

(c)        In order to provide for just and equitable contribution to joint
liability under the Securities Act in any case in which any holder of
Registrable Shares exercising rights under this Article V or any controlling
person of any such holder, makes a claim for indemnification pursuant to this
Section 4.3 but it is judicially determined (by the entry of a final judgment or
decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be
enforced in such case notwithstanding the fact that this Section 4.3 provides
for indemnification in such case, then, the Company and such holder will
contribute to the aggregate losses, claims, damages or liabilities to which they
may be subject (after contribution from others) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and of
the holder of Registrable Shares on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations.  The relative fault of the
Company on the one hand and of the holder of Registrable Shares on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company on the one
hand or by the holder of Registrable Shares on the other, and each party’s
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission; provided, however, that, in any such case,
(A) no such holder will be required to contribute any amount in excess of the
public offering price of all such Registrable Shares offered by it pursuant to
such registration statement, net of any underwriting discounts or commissions
paid by such holder; and (B) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
will be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

4.4.      Indemnification by Holders of Registrable Shares.  (a)  In the event
that the Company registers any of the Registrable Shares under the Securities

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Act, each holder of the Registrable Shares so registered will, as a condition to
registration of the Registrable Shares, agree to indemnify and hold harmless the
Company, each of its directors, each of its officers who have signed or
otherwise participated in the preparation of the registration statement, each
underwriter of the Registrable Shares so registered (including any broker or
dealer through whom such of the shares may be sold) and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities Act from
and against any and all losses, claims, damages, expenses or liabilities, joint
or several, to which they or any of them may become subject under the Securities
Act, applicable state securities laws or under any other statute or at common
law or otherwise, and, except as hereinafter provided, will reimburse the
Company and each such director, officer, underwriter or controlling person for
any legal or other expenses reasonably incurred by them or any of them in
connection with investigating or defending any actions whether or not resulting
in any liability, insofar as such losses, claims, damages, expenses, liabilities
or actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the registration statement, in any
preliminary or amended preliminary prospectus or in the final prospectus (or in
the registration statement or prospectus as from time to time amended or
supplemented) or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary in
order to make the statements therein not misleading, but only insofar as any
such statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company in connection therewith by such
holder of Registrable shares expressly for use therein; provided, however, that
such holder’s obligations hereunder shall be limited to an amount equal to the
aggregate public offering price of the Registrable Shares sold by such holder in
such registration, net of any underwriting discounts or commissions paid by such
holder.

(b)        In order to provide for just and equitable contribution to joint
liability under the Securities Act in any case in which the Company or another
person entitled to indemnification pursuant to this Section 4.4 makes a claim
for indemnification pursuant to this Section 4.4, but it is judicially
determined (by the entry of a final judgment or decree by a court of competent
jurisdiction and the expiration of time to appeal or the denial of the last
right of appeal) that such indemnification may not be enforced in such case
notwithstanding that this Section 4.4 provides for indemnification, in such
case, then, the Company and such holder will contribute to the aggregate losses,
claims, damages or liabilities to which they may be subject (after contribution
from others) in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and of the holder of Registrable Shares on the
other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations.  The

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relative fault of the Company on the one hand and of the holder of Registrable
Shares on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the
Company on the one hand or by the holder of Registrable Shares on the other, and
each party’s relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission; provided, however, that, in
any such case, (A) no such holder will be required to contribute any amount in
excess of the public offering price of all such Registrable Shares offered by it
pursuant to such registration statement, net of any underwriting discounts or
commissions paid by such holder; and (B) no person or entity guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) will be entitled to contribution from any person or entity who
was not guilty of such fraudulent misrepresentation.

4.5.      Exchange Act Reports.  The Company will use its best efforts to timely
file with the Commission such information as the Commission may require under
the Exchange Act and shall use its best efforts to take all action as may be
required as a condition to the availability of Rule 144 or Rule 144A under the
Securities Act (or any successor exemptive rule hereafter in effect) with
respect to such Common Stock.  The Company shall furnish to any holder of
Registrable Shares forthwith upon request (i) a written statement by the Company
as to its compliance with the reporting requirements of Rule 144, (ii) a copy of
the most recent annual or quarterly report of the Company as filed with the
Commission, and (iii) such other reports and documents as a holder may
reasonably request in availing itself of any rule or regulation of the
Commission allowing a holder to sell any such Registrable Securities without
registration.  The Company agrees to use its best efforts to facilitate and
expedite transfers of the Shares pursuant to Rule 144 under the Securities Act,
which efforts shall include timely notice to its transfer agent to expedite such
transfers of Shares.

4.6.      Expenses.  In the case of each registration effected under Section
4.1, the Company shall bear all reasonable costs and expenses of each such
registration on behalf of the selling holders of Registrable Shares, including,
but not limited to, the Company’s printing, legal and accounting fees and
expenses, Commission and NASD filing fees and “Blue Sky” fees; provided,
however, that the Company shall have no obligation to pay or otherwise bear any
portion of the underwriters’ commissions or discounts attributable to the
Registrable Shares being offered and sold by the holders of the Registrable
Shares, or the fees and expenses of counsel for the selling holders of
Registrable Shares in connection with the registration of the Registrable
Shares.

4.7.      Transferability.  (a) For all purposes of Article IV of this
Agreement, a

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Purchaser or assignee thereof who agrees to be bound by the provisions of this
Article IV shall be deemed at any particular time to be the holder of all
Registrable Securities of which such person shall at such time be the
“beneficial owner,” determined in accordance with Rule 13d-3 under the Exchange
Act.

ARTICLE V
MISCELLANEOUS

5.1.      No Waiver; Cumulative Remedies.  No failure or delay on the part of
any party to this Agreement in exercising any right, power or remedy hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy hereunder.  The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law.

5.2.      Amendments, Waivers and Consents.  Any provision in the Agreement to
the contrary notwithstanding, and except as hereinafter provided, changes in,
termination or amendments of or additions to this Agreement may be made, and
compliance with any covenant or provision set forth herein may be omitted or
waived, if the Company shall obtain consent thereto in writing from the
Purchaser.  Any waiver or consent may be given subject to satisfaction of
conditions stated therein and any waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.

5.3.      Addresses for Notices.  All notices, requests, demands and other
communications provided for hereunder shall be in writing (including telegraphic
communication) and mailed, telegraphed or delivered to each applicable party at
the address set forth on Schedule 5.3 hereto or at such other address as to
which such party may inform the other parties in writing in compliance with the
terms of this Section.  All such notices, requests, demands and other
communications shall be considered to be effective when delivered.

5.4.      Costs, Expenses and Taxes. All parties to bear their own expenses.

5.5.      Effectiveness; Binding Effect; Assignment.  This Agreement shall be
binding upon and inure to the benefit of the Company, the Purchaser and the
respective successors and assigns; provided, that, the Company may not assign
any of its rights or obligations under this Agreement without the prior written
consent of the Purchaser.  The Purchaser may assign all or any part of its
rights and obligations hereunder to any person who acquires any Shares or
Warrants owned by the Purchaser subject to the conditions of this Agreement.

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5.6.      Prior Agreements.  The Transaction Documents executed and delivered in
connection herewith constitute the entire agreement between the parties and
supersede any prior understandings or agreements concerning the subject matter
hereof.

5.7.      Severability.  The provisions of the Transaction Documents are
severable and, in the event that any court of competent jurisdiction shall
determine that any one or more of the provisions or part of a provision
contained therein shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of such Transaction
Document and the terms of the Shares shall be reformed and construed as if such
invalid or illegal or unenforceable provision, or part of a provision, had never
been contained herein, and such provisions or part reformed so that it would be
valid, legal and enforceable to the maximum extent possible.

5.8.      Governing Law; Venue. 

> A.        This Agreement shall be enforced, governed and construed in
> accordance with the laws the State of New York or federal securities law where
> applicable without giving effect to choice of laws principles or conflict of
> laws provisions. Any suit, action or proceeding pertaining to this Agreement
> or any transaction relating hereto shall be brought to the courts sitting in
> New York City, New York, United States of America, and the undersigned hereby
> irrevocably consents and submits to the jurisdiction of such courts for the
> purpose of any such suit, action, or proceeding.  Purchaser acknowledges and
> agrees that venue hereunder shall lie exclusively in New York.
> 
> B.        Purchaser hereby waives, and agrees not to assert against the
> Company, or any successor assignee thereof, by way of motion, as a defense, or
> otherwise, in any such suit, action or proceeding, (i) any claim that the
> Purchaser is not personally subject to the jurisdiction of the above-named
> courts, and (ii) to the extent permitted by applicable law, any claim that
> such suit, action or proceeding is brought in an inconvenient forum or that
> the venue of any such suit, action or proceeding is improper or that this
> Agreement may not be enforced in or by such courts

5.9.      Headings.  Article, section and subsection headings in this Agreement
are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

5.10.    Survival of Representations and Warranties.  All representations and
warranties made in the Transaction Documents, the Shares, or any other

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instrument or document delivered in connection herewith or therewith, shall
survive the execution and delivery hereof or thereof.

5.11.    Counterparts.  This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

5.12.    Further Assurances.  From and after the date of this Agreement, upon
the request of the Purchaser or the Company, the Company and the Purchaser shall
execute and deliver such instruments, documents and other writings as may be
reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of the Transaction Documents and the Shares.

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           IN WITNESS WHEREOF, the parties hereto have caused this Stock
Purchase Agreement to be executed as of the date first above written.

                                                                                                COMPANY:
Material Technologies Inc.

                                                                                                By:    
______________________________
                                                                                                          NAME: 
Robert Bernstein

                                                                                                          TITLE:  
CEO

                                                                                               
PURCHASER: Ischian Holdings, Ltd.

                                                                                                By:    
______________________________
                                                                                                         
NAME: Krishna Orr

                                                                                                         
TITLE: Director

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