**Exhibit 10.3**

**CORPORATE STOCK REDEMPTION AGREEMENT**

          This Corporate Stock Redemption Agreement, made this 6th day of May, 2008 (the “Agreement”), by and between Material Technologies, Inc., a Delaware corporation, (the “Corporation”) and The Robert M. Bernstein Revocable Trust (the “Stockholder”) (individually, a “Party”; collectively, the “Parties”).  This Agreement supersedes any and all agreements and understandings which predate this Agreement.

**RECITALS**

          A.        The Stockholder owns 30,000,000 shares of common stock issued by the Corporation (“Subject Shares”).				          B.        The Corporation desires to redeem and purchase from the Stockholder the Subject Shares on the terms and subject to the conditions specified in this Agreement.				          C.        Pursuant to this Agreement and subject to the terms and conditions specified in this Agreement, the Stockholder shall sell, assign, transfer, convey, surrender, deliver, and set over to the Corporation the Subject Shares.				          NOW, THEREFORE, IN CONSIDERATION OF THE RECITALS SPECIFIED ABOVE THAT SHALL BE DEEMED TO BE A SUBSTANTIVE PART OF THIS AGREEMENT, AND THE MUTUAL COVENANTS, PROMISES, UNDERTAKINGS, AGREEMENTS, REPRESENTATIONS AND WARRANTIES SPECIFIED IN THIS AGREEMENT AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, WITH THE INTENT TO BE OBLIGATED LEGALLY AND EQUITABLY, THE PARTIES DO HEREBY COVENANT, PROMISE, AGREE, REPRESENT AND WARRANT AS FOLLOWS:				          1.**   **Redemption of Subject Shares**.**  On the terms and subject to all of the conditions specified by the provisions of this Agreement and upon the performance by each of the Parties of their respective obligations created by the provisions of this Agreement, the Stockholder hereby forever and irrevocably sells, assigns, transfers, surrenders, conveys, delivers, and sets over to the Corporation, and Corporation hereby purchases and redeems from the Stockholder, the Subject Shares, by the Stockholder surrendering and delivering to the Corporation the certificate(s) representing and evidencing the Subject Shares, duly endorsed for transfer or accompanied by stock powers duly executed by the Stockholder.				          2.   Consideration.  As consideration for the Stockholder’s surrender and sale, and the Corporation's purchase and redemption, of the Subject Shares, the Corporation shall issue to the Stockholder a total of 100,000,000 options to purchase common stock pursuant to the Corporation’s 2008 Incentive and Nonstatutory Stock Option Plan, dated April 22, 2008 (the “Purchase Price”), the payment of which shall be made within 30 days of the date first written hereinabove.

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|            |           3.1       Validity of Agreement.  This Agreement is valid and obligates the Stockholder.					          3.2       Share Ownership.  The Stockholder is the owner, free and clear of any encumbrances, of the Subject Shares. The Stockholder has full and complete rights and authorities to transfer, sell, surrender, assign, and convey the Subject Shares to the Corporation.					          3.3       Brokerage and Finder's Fees.  The Stockholder has not incurred any liability to any broker, finder or agent for any brokerage fees, finder's fees or commissions with respect to the transaction contemplated by the provisions of this Agreement.					          3.4       Voluntary Nature of Transaction.****The surrender and sale by the Stockholder to the Corporation of the Subject Shares is made freely and voluntarily by the Stockholder. The Stockholder, in selling and surrendering the Subject Shares to the Corporation, is not acting under fraud, duress, menace or undue influence. |
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|            |           4.1       Validity of Agreement.  This Agreement is valid and obligates the Corporation. The Corporation has full and complete power and authority to redeem the Subject Shares, as contemplated by the provisions of this Agreement.						          4.2       Brokerage and Finder's Fees.  The Corporation has not incurred any liability to any broker, finder or agent for any brokerage fees, finder's fees or commissions with respect to the transactions contemplated by the provisions of this Agreement.						          4.3       Voluntary Nature of Transaction.****The Corporation’s agreement to enter into the transaction contemplated by the provisions of this Agreement is made freely and voluntarily by the Corporation.  The Corporation in redeeming the Subject Shares is not acting under fraud, duress, menace or undue influence. |
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|                                | To the Corporation: | Material Technologies, Inc.					Attn: Robert M. Bernstein, Chief Executive Officer					11661 San Vicente Boulevard, Suite 707					Los Angeles, California 90049					Fax: (310) 473-3177 |
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|                                                                                                                                                                                      | To Stockholder:     | The Robert M. Bernstein Revocable Trust					Attn: Robert M. Bernstein					11661 San Vicente Boulevard, Suite 707					Los Angeles, California 90049					Fax: (310) 473-3177              |
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|                                                                                                                                                                                      | With a copy to:     | Oswald & Yap					Attn: Lynne Bolduc, Esq.					16148 Sand Canyon Avenue					Irvine, CA  92618					Fax: (949) 788-8980                                                           |

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| **CORPORATION:						MATERIAL TECHNOLOGIES, INC.,						a Delaware corporation**/s/ Robert M. Bernstein                                    By: Robert M. Bernstein					Its: Chief Executive Officer | **STOCKHOLDER:						THE ROBERT M. BERNSTEIN						REVOCABLE TRUST**/s/ Robert M. Bernstein                                    By: Robert M. Bernstein, Trustee					Holdings: 30,000,000 shares |
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