Document:

EXHIBIT 10.1

         STOCK PURCHASE AGREEMENT FOR THE PRIVATE SALE OF COMMON STOCK,
                               DATED JULY 22, 2010

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                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE  AGREEMENT (the  "Agreement") is entered into as of
July 22, 2010, by and between  MachineTalker,  Inc., a Delaware corporation (the
"Company"),   and   __________________________,   a  ____________________   (the
"Purchaser"), with respect to the following facts:

                                   WITNESSETH:

         WHEREAS, the Company wishes to issue and sell to accredited investors a
total of 222,222,222  shares (the  "Shares") of the Company's  common stock at a
price of $0.00045 per Share, _____________ of which Shares are being sold to and
purchased by the Purchaser pursuant to this Agreement.

         WHEREAS,  the Purchaser wishes to purchase said Shares on the terms and
subject to the conditions hereinafter set forth.

         NOW,  THEREFORE,  in  consideration  of the  premises and of the mutual
representations,  warranties and agreements set forth herein, the parties hereto
agree as follows:

                                    ARTICLE I
                           SALE AND PURCHASE OF SHARES

         1.1 AGREEMENT TO PURCHASE AND SELL SHARES.  The Company agrees to issue
and sell to the Purchaser,  and the Purchaser hereby agrees to purchase from the
Company,  ________________  Shares of the  Company's  common stock at a price of
$0.00045   per   Share,   representing   a  total   cash   purchase   price   of
$_____________________.

                                   ARTICLE II
                           CLOSING AND PURCHASE PRICE

         2.1  CLOSING.  The  closing  of the sale  and  purchase  of the  Shares
enumerated  in Section 1.1 of this  Agreement  shall take place at the corporate
office of MachineTalker,  Inc., 513 De La Vina Street, Santa Barbara, California
93101, on July 22, 2010 (such closing being called the  "Closing").  The date of
the Closing is referred to as the "Closing Date."

         2.2 PURCHASE PRICE. At the Closing,  Purchaser shall pay to the Company
for  the  Shares  the  aggregate  sum of  _____________________________  Dollars
($________________) (the "Purchase Price"), paid by certified or cashier's check
or wire transfer of immediately  available  funds into one or more bank accounts
designated in writing by the Company on or prior to the Closing.

                                  ARTICLE III
                               CLOSING DELIVERIES

         3.1 COMPANY CLOSING DELIVERIES. At the Closing, the Company shall issue
and deliver to each Purchaser a stock  certificate in the name of the Purchaser.
The  Company  will  also  deliver a copy of  resolutions  signed by its Board of
Directors  and,  where  legally  required,  the  holders  of a  majority  of the
outstanding voting stock of the Company, authorizing and directing the Company's

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directors and  executive  officers to cause the Company to execute and implement
the terms of this Agreement.

         3.2  PURCHASER  CLOSING  DELIVERIES.  As payment in full for the Shares
being  purchased  by the  Purchaser  at the  Closing,  on the  Closing  Date the
Purchaser  shall  deliver to the  Company the  Purchase  Price by  certified  or
cashier's  check or wire transfer of immediately  available  funds into the bank
account(s) designated in writing by the Company on or prior to the Closing.

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF THECOMPANY

         The Company hereby represents and warrants to the Purchaser that:

         4.1  ORGANIZATION,  GOOD STANDING AND  QUALIFICATION.  The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite  corporate power and authority to
own its  properties and assets and to carry on its business as now conducted and
as  presently  proposed to be  conducted.  The Company is duly  qualified  to do
business as a foreign  corporation in each  jurisdiction  where failure to be so
qualified  would have a material  adverse effect on its condition  (financial or
otherwise),  business,  assets,  properties or  operations (a "Material  Adverse
Effect").

         4.2  CAPITALIZATION.  Immediately prior to the Closing,  the authorized
capital stock of the Company will consist of the following:

                  (a) COMMON STOCK. Five hundred million (500,000,000) shares of
common stock,  par value $0.001 per share,  of which  approximately  261,976,793
shares are issued and outstanding.  All outstanding  shares of common stock have
been duly authorized and validly issued,  are fully paid and  nonassessable  and
were issued in compliance with all applicable federal and state securities laws.

                  (b) PREFERRED  STOCK.  No shares of preferred stock are issued
or outstanding.

                  (c)  OPTIONS,  WARRANTS,  RESERVED  SHARES.  The  Company  has
reserved  921,703  shares of its common  stock for  possible  issuance  upon the
exercise of warrants.  Except as reported in financial  statements  filed by the
Company with the Securities and Exchange Commission,  there are no other written
or,  to the  knowledge  of  the  Company,  oral  options,  warrants,  conversion
privileges,  preemptive  rights,  rights  of first  refusal  or other  rights or
agreements  presently  outstanding  to purchase or otherwise  acquire any of the
capital stock of the Company.

         4.3 VALID  ISSUANCE  OF  SHARES.  The  Shares,  when  issued,  sold and
delivered  in  accordance  with the  terms of this  Agreement,  will be duly and
validly issued,  fully paid and nonassessable,  and free and clear of all claims
and  encumbrances.  Based in part upon the  representations  of the Purchaser in
this  Agreement and subject to the  provisions of Section 4.9 below,  the Shares
will be issued in compliance  with all applicable  federal and state  securities
laws.

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         4.4  SUBSIDIARIES.  Except as set  forth in  financial  statements  and
reports filed by the Company with the  Securities and Exchange  Commission,  the
Company does not presently own or control, directly or indirectly,  any interest
in any other  corporation,  partnership,  trust,  joint venture,  association or
other entity.

         4.5  LIABILITIES.  The  Company  has not to its  knowledge  directly or
indirectly created, incurred, assumed or guaranteed any liability except (a) for
liabilities or obligations undertaken in the ordinary course of business, or (b)
liabilities disclosed in its public reports and financial statements filed by it
with the United States Securities and Exchange Commission.

         4.6  CONTRACTS.  The  Company  is not bound by any  written  or, to the
knowledge of the Company,  oral material agreement,  contract,  lease,  license,
instrument,  commitment,  indebtedness or liability,  other than as set forth in
the  Company's  financial  statements  and reports  filed with the United States
Securities and Exchange Commission (each, a "Contract").

         4.7  LITIGATION.   There  is  no  action,  suit,   proceeding,   claim,
arbitration or investigation ("Action") pending (or, to the Company's knowledge,
currently  threatened) against the Company, that could reasonably be expected to
have a Material  Adverse  Effect,  except as described  in reports  filed by the
Company with the United States Securities and Exchange  Commission.  The Company
is not a party to or subject to the provisions of any order,  writ,  injunction,
judgment  or decree of any court or  government  agency or  instrumentality  and
there is no Action by the Company currently pending or which the Company intends
to initiate.

         4.8  GOVERNMENTAL  CONSENTS.  All  consents,   approvals,   orders,  or
authorizations of, or registrations,  qualifications, designations, declarations
or filings with, any federal,  state or local governmental authority on the part
of the Company  required in connection with the consummation of the transactions
contemplated  herein have been or will be complied with in  accordance  with the
time  periods  required  thereby.  Based in part on the  representations  of the
Purchaser  set forth in Section 5 below,  the offer,  sale and  issuance  of the
Shares  in  conformity  with the terms of this  Agreement  are  exempt  from the
registration and prospectus delivery requirements of the Securities Act of 1933,
as amended (the "Act").

         4.9 COMPLIANCE  WITH LAWS;  OTHER  INSTRUMENTS.  To its knowledge,  the
Company is not in violation of or in default under any provision of its Articles
or  Bylaws,  each as in effect on and as of the date of this  Agreement.  To the
Company's  knowledge,  the Company is not in violation  of any  provision of any
statute,  law, rule or regulation.  The execution,  delivery and  performance of
this Agreement and the consummation of the transactions  contemplated hereby and
thereby will not result in any such default or  violation,  or conflict  with or
constitute, with or without the passage of time or the giving of notice or both,
such a default or violation under (a) the Company's  Articles or Bylaws, (b) any
Contract,  or (c) any statutes,  laws,  rules or  regulations  applicable to the
Company, other than those defaults,  violations or conflicts which, if adversely
determined, could not reasonably be expected to have a Material Adverse Effect.

         4.10 TAX MATTERS.  The Company has timely filed all federal,  state and
local tax returns for income taxes,  franchise taxes,  sales taxes,  withholding
taxes, property taxes and, to the Company's knowledge,  all other taxes of every
kind  whatsoever  required  by law to be  filed,  and all such tax  returns  are
complete and accurate in all material  respects and in accordance with all legal
requirements  applicable thereto.  All taxes shown to be due and payable on such
returns,  any assessments imposed,  and, to the Company's  knowledge,  all other

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taxes due and payable by the Company on or before the Closing  have been paid or
will be paid prior to the time they  become  delinquent.  The tax returns of the
Company are not being audited by any governmental  authorities,  and the Company
does  not know of any  additional  tax  liabilities,  deficiencies  or  proposed
adjustments for any period for which any such returns have been filed.

         4.11 FINANCIAL  STATEMENTS.  The Company has delivered to the Purchaser
(a) its  unaudited  balance  sheet  as of  March  31,  2010  and  its  unaudited
statements  of  operations,  stockholders'  equity  and cash flows for the three
months  ended March 31, 2010 and March 31, 2009,  and (b) its audited  financial
statements as reported to the Securities  and Exchange  Commission as of and for
the calendar  year ending  December 31, 2009.  The Financial  Statements  fairly
present, in all material respects,  the Company's financial position as of those
dates and the results of operations  and changes in its  financial  position for
such periods then ended,  and have been  prepared in accordance  with  generally
accepted  accounting  principles  ("GAAP") applied on a consistent basis, except
that the unaudited  Financial  Statements may not contain all footnotes required
by GAAP and are subject to normal year-end  adjustments.  The Company  maintains
and will continue to maintain a standard  system of accounting  established  and
administered in accordance with GAAP.

         4.12  INTELLECTUAL  PROPERTY.  To its  knowledge,  the Company  owns or
possesses  sufficient  legal rights to all patents,  trademarks,  service marks,
trade names, copyrights,  trade secrets,  licenses,  information and proprietary
rights and  processes  ("Proprietary  Assets")  necessary  for its  business  as
presently  conducted and, to the knowledge of the Company, as presently proposed
to be conducted, without, to the knowledge of the Company, any conflict with, or
infringement of, the rights of others. Except as set forth in reports filed with
the United States Securities and Exchange  Commission,  the Company is not bound
by or a party to any options, licenses or agreements of any kind with respect to
the  Proprietary  Assets,  nor does it  currently  intend to enter into any such
agreement. The Company has not received any written communications alleging that
the Company has violated or, by conducting  its business as presently  proposed,
would violate any Proprietary Assets of any other person or entity.

         4.13  PERMITS.   To  its  knowledge,   the  Company  has  all  material
franchises,  permits and licenses  necessary  for the conduct of its business as
now being conducted by it ("Permits").  To its knowledge,  the Company is not in
default under any Permits and the  execution,  delivery and  performance of this
Agreement or the consummation of the transactions  contemplated  hereby will not
result in any suspension,  revocation,  impairment,  forfeiture or nonrenewal of
any Permit.

         4.14 TITLE TO PROPERTY  AND ASSETS.  The Company to its  knowledge  has
good and  marketable  title to its owned  properties  and  assets,  in each case
subject to no mortgage,  pledge, lien, encumbrance,  security interest or charge
of any kind, other than Permitted Liens. With respect to the property and assets
it leases,  the Company to its knowledge is in  compliance  with such leases and
the Company to its knowledge holds valid leasehold interests in such assets free
of  any  liens,  encumbrances,  security  interests  or  claims  of  any  party.
"Permitted Liens" means (a) mechanics',  carriers',  workmen's,  warehousemen's,
repairmen's or other like liens arising in the ordinary course of business,  (b)
liens arising under  conditional  sale contracts and equipment leases with third
parties  entered  into in the  ordinary  course,  (c)  liens for taxes and other
governmental  obligations and (d) other imperfections of title,  restrictions or
encumbrances, if any, which liens, imperfections of title, restrictions or other
encumbrances  do not materially  impair the continued use in the business of the
respective  owner  thereof,  and operation of the specific  assets to which they
relate. The Company does not own any real property.

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         4.15 RELATED-PARTY  TRANSACTIONS.  Except as set forth in reports filed
with the United  States  Securities  and Exchange  Commission,  (a) no employee,
officer or director of the Company or member of his or her  immediate  family is
indebted to the Company, nor is the Company indebted (or committed to make loans
or extend or guarantee credit) to any such persons, and (b) none of the officers
or  directors  of the Company or any members of their  immediate  families  are,
directly or indirectly, interested in any Contract with the Company.

         4.16 ENVIRONMENTAL LAWS. To the Company's knowledge, the Company is not
in violation of, nor has the Company  received  written  notice of any potential
violation of, any applicable environmental statute, law or regulation.

         4.17 EMPLOYEE  BENEFIT PLANS. The Company is not a party to or bound by
any currently effective deferred compensation  agreement,  bonus plan, incentive
plan,  profit  sharing  plan  or  retirement  agreement,  nor  has  the  Company
contracted or agreed to establish  any such plan.  The Company does not have any
Employee Benefit Plan as defined in the Employee  Retirement Income Security Act
of 1974, as amended.

         4.18  INSURANCE.  The  Company  has in full force and  effect  fire and
casualty  insurance  policies,  with  extended  coverage,  sufficient  in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.

         4.19 SHAREHOLDER AGREEMENTS.  Except as set forth in reports filed with
the United States Securities and Exchange Commission, there are no agreements or
arrangements  between the Company and any of the Company's  shareholders,  or to
the Company's  knowledge,  between or among any of the  Company's  shareholders,
which grant special  rights with respect to any shares of the Company's  capital
stock or which in any way  affect any  shareholder's  ability or right to freely
alienate or vote such shares.

         4.20 USE OF  PROCEEDS.  The funds will be utilized to (a) pay  accounts
payable,  and (b) pay certain  outstanding  notes and interest  due, and (c) for
general working capital.

                                   ARTICLE V
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

         Purchaser represents and warrants to the Company that:

         5.1 DUE AUTHORIZATION. Purchaser has all requisite power, authority and
approvals  required to enter into,  execute and deliver  this  Agreement  and to
perform fully Purchaser's obligations hereunder. Purchaser has taken all actions
necessary to authorize it to enter into and perform fully its obligations  under
this  Agreement and to consummate the  transactions  contemplated  herein.  This
Agreement  is, and as of the  Closing,  will be, the  legal,  valid and  binding
obligation of Purchaser, enforceable in accordance with its terms.

         5.2 NO VIOLATION.  Neither the execution and delivery of this Agreement
nor the consummation of the transactions  contemplated  herein will (a) violate,
conflict with, or constitute a default under any contract or other instrument to
which Purchaser is a party or by which  Purchaser or its property is bound;  (b)

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require the consent of any party to any material  contract or other agreement to
which  Purchaser  is a party or by which it or its  property  is  bound;  or (c)
violate any laws or orders to which Purchaser or its property is subject.

         5.3 NO BROKER.  No broker,  finder,  agent or similar  intermediary has
acted for or on behalf of  Purchaser  or is entitled to a fee or  commission  in
connection with this Agreement or the transactions contemplated hereby.

         5.4 SECURITIES REPRESENTATIONS.

                  (a)  Purchaser  is  able  to  bear  the  economic  risk  of an
investment in the Shares for an indefinite  period of time,  can afford the loss
of the entire investment in the Shares,  and will, after making an investment in
the Shares, have sufficient means of providing for Purchaser's current needs and
possible future contingencies.  Additionally,  Purchaser's overall commitment to
investments  which  are  not  readily  marketable  is  not  disproportionate  to
Purchaser's net worth and this Agreement will not cause such overall  commitment
to become excessive.

                  (b)  The  Shares  will  not  be  sold  by  Purchaser   without
registration  under  applicable  securities acts or a proper exemption from such
registration.

                  (c) The Shares are being acquired by Purchaser for Purchaser's
own account and risk,  for investment  purposes,  and not on behalf of any other
person or with a view to, or for resale in  connection  with,  any  distribution
thereof  within  the  meaning  of the Act.  Purchaser  is aware  that  there are
substantial restrictions on the transferability of the Shares.

                  (d)  Purchaser  has had  access  to any  and  all  information
concerning the Company that Purchaser and Purchaser's  financial,  tax and legal
advisors  required or considered  necessary to make a proper  evaluation of this
investment.  The available  information  included all  information  filed by the
Company with the United States Securities and Exchange Commission. In making the
decision to purchase the Shares  herein  agreed to,  Purchaser  and  Purchaser's
advisors  have  relied  upon  their own  independent  investigations,  and fully
understand  that there are no  guarantees,  assurances or promises in connection
with  any  investment   hereunder  and   understand   that  the  particular  tax
consequences  arising from this  investment  in the Company will depend upon the
individual circumstances of Purchaser.

                  (e) Purchaser also  understands  and agrees that stop transfer
instructions  relating  to the Shares will be placed in the  Company's  transfer
ledger,  and that the certificates  evidencing the Shares sold will bear legends
in substantially the following form:

                  The  Shares  represented  by this  Certificate  have  not been
                  registered  under the  Securities Act of 1933, as amended (the
                  "Act") and are "restricted securities" as that term is defined
                  in Rule 144 under the Act. The  securities  may not be offered
                  for sale, sold or otherwise  transferred except pursuant to an
                  effective  registration statement under the Act or pursuant to
                  an exemption from registration under the Act, the availability
                  of  which  is to be  established  to the  satisfaction  of the
                  Company.

                  (f)  Purchaser  knows  that the Shares  are  offered  and sold
pursuant to exemptions  from  registration  under the Securities Act of 1933, as
amended,  and state  securities  law based,  in part,  on these  warranties  and

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representatives,  which are the very essence of this Agreement, and constitute a
material part of the  bargained-for  consideration  without which this Agreement
would not have been executed. Purchaser agrees to indemnify and hold the Company
harmless  for  any  damages   suffered  by  the  Company  as  a  result  of  any
misrepresentation or breach of any representation or warranty of Purchaser.

                  (g) By reason of Purchaser's  business or financial experience
or the business or financial  experience of Purchaser's  professional  advisors,
Purchaser  has the capacity to protect  Purchaser's  own interest in  connection
with this  transaction or has a pre-existing  personal or business  relationship
with  the  Company  or one or more of its  officers,  directors  or  controlling
persons  consisting  of personal or business  contacts of a nature and  duration
such  as  would  enable  a  reasonably  prudent  purchaser  to be  aware  of the
character,  business acumen and general business and financial  circumstances of
such person with whom such relationship exists.

                  (h)  Purchaser is an  "accredited  investor" as defined  under
Rule 501 of Regulation D as  promulgated  under the  Securities  Act of 1933, as
amended.

         5.5 PURCHASER  COUNSEL.  Purchaser  acknowledges that Purchaser has had
the opportunity to review this Agreement and the Exhibits  attached hereto,  the
Company's   reports  filed  with  the  United  States  Securities  and  Exchange
Commission,   and  the  transactions   contemplated   hereby  and  thereby  with
Purchaser's own legal counsel.  Purchaser is relying solely on Purchaser's legal
counsel and not on any  statements or  representations  of the Company or any of
the Company's  representatives,  including  Richardson &  Associates,  for legal
advice with respect to this investment or the transactions  contemplated  hereby
or thereby.

                                   ARTICLE VI
                                 INDEMNIFICATION

         6.1  INDEMNITY OF THE COMPANY.  The Company  shall  indemnify  and hold
harmless Purchaser from and against,  and shall reimburse Purchaser with respect
to, all liabilities,  losses, costs and expenses, including, without limitation,
reasonable  attorneys'  fees  and  disbursements   (collectively  the  "Losses")
asserted  against or incurred by Purchaser  by reason of,  arising out of, or in
connection with any material breach of any  representation or warranty contained
in this Agreement made by the Company.

         6.2  INDEMNITY  OF  THE  PURCHASER.  The  Purchaser  agree  to  defend,
indemnify and hold  harmless the Company from and against,  and to reimburse the
Company with respect to, all liabilities, losses, costs and expenses, including,
without limitation,  reasonable attorneys' fees and disbursements (collectively,
the "Losses")  asserted against or incurred by the Company by reason of, arising
out of, or in  connection  with any  material  breach of any  representation  or
warranty contained in this Agreement made by Purchaser.

         6.3 INDEMNIFICATION PROCEDURE. A party (an "Indemnified Party") seeking
indemnification  shall give prompt notice to the other party (the  "Indemnifying
Party") of any claim for  indemnification  arising  under this  Article  VI. The
Indemnifying  Party shall have the right to assume and to control the defense of
any such claim with counsel reasonably  acceptable to such Indemnified Party, at
the Indemnifying Party's own cost and expense, including the cost and expense of
reasonable attorneys' fees and disbursements in connection with such defense, in

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which event the  Indemnifying  Party shall not be  obligated to pay the fees and
disbursements  of  separate  counsel  for  such in such  action.  In the  event,
however,  that such  Indemnified  Party's  legal counsel  shall  determine  that
defenses may be available to such  Indemnified  Party that are different from or
in addition to those  available to the  Indemnifying  Party, in that there could
reasonably be expected to be a conflict of interest if such  Indemnifying  Party
and the Indemnified Party have common counsel in any such proceeding,  or if the
Indemnified Party has not assumed the defense of the action or proceedings, then
such Indemnifying  Party may employ separate counsel to represent or defend such
Indemnified  Party, and the Indemnifying Party shall pay the reasonable fees and
disbursements of counsel for such  Indemnified  Party. No settlement of any such
claim or payment in connection  with any such  settlement  shall be made without
the  prior  consent  of  the  Indemnifying  Party  which  consent  shall  not be
unreasonably withheld.

                                  ARTICLE VII
                              CONDITIONS TO CLOSING

         7.1  CONDITIONS TO  PURCHASER'S  OBLIGATION TO CLOSE.  The  Purchaser's
obligation  to close the purchase and sale of the Shares is  conditioned  on the
occurrence of the following events on or prior to the Closing in accordance with
Section 3.1 of this Agreement,  to the reasonable satisfaction of the Purchaser,
any of which  may be  waived  by the  Purchaser  in  writing  at or prior to the
Closing:

         (a)      Delivery  at  Closing  of stock  certificates  evidencing  the
                  Shares issuable to Purchaser under this Agreement.

         (b)      Delivery of the Board  resolutions in accordance  with Section
                  3.1(a) of this Agreement.

         (d)      The  representations  and warranties of the Company in Article
                  IV of this  Agreement  remain true and correct at the Closing,
                  except to the extent a  modification  is  consistent  with the
                  intent of this Agreement.

         7.2  CONDITIONS  TO  COMPANY'S  OBLIGATIONS  TO  CLOSE.  The  Company's
obligation  to close the purchase and sale of the Shares is  conditioned  on the
occurrence of the following events at the Closing: (a) Delivery by the Purchaser
of the  Purchase  Price to the Company in  accordance  with  Section 3.2 of this
Agreement;  and (b) the  representations  and  warranties  of the  Purchaser  in
Article V of this  Agreement  remain true and correct at the Closing,  except to
the extent a modification is consistent with the intent of this Agreement.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.1  SURVIVAL  OF  REPRESENTATIONS,   WARRANTIES  AND  AGREEMENTS.  All
representations  and warranties and statements made by a party to this Agreement
or in any document or certificate  delivered  pursuant  hereto shall survive the
date of Closing  for two years.  Each of the  parties  hereto is  executing  and
carrying  out  the   provisions   of  this   Agreement  in  reliance   upon  the
representations,  warranties  and  covenants  and  agreements  contained in this
Agreement or at the closing of the transactions herein provided for and not upon
any  investigation  which it might have made or any  representations,  warranty,
agreement,  promise or information,  written or oral, made by the other party or
any other person other than as specifically set forth herein.

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         8.2 FURTHER ASSURANCES.  If, at any time after the Closing, the parties
shall consider or be advised that any further  deeds,  assignments or assurances
in law or any other  things are  necessary,  desirable or proper to complete the
transactions  contemplated  herein or to vest, perfect or confirm,  of record or
otherwise,  the  title to any  property  or rights of the  parties  hereto,  the
parties agree that their proper officers and directors shall execute and deliver
all such  proper  deeds,  assignments  and  assurances  in law and do all things
necessary,  desirable  or  proper  to vest,  perfect  or  confirm  title to such
property or rights and otherwise to carry out the purpose of this Agreement, and
that the proper  officers and  directors of the parties are fully  authorized to
take any and all such action.

         8.3 NOTICE. All communications,  notices, requests, consents or demands
given or required under this  Agreement  shall be in writing and shall be deemed
to have been duly given when delivered to, or received by prepaid  registered or
certified mail or recognized  overnight courier addressed to, or upon receipt of
a facsimile sent to, the party for whom intended,  as follows,  or to such other
address or  facsimile  number as may be furnished by such party by notice in the
manner provided herein:

                  IF TO THE COMPANY:

                  MachineTalker, Inc.
                  513 De La Vina Street
                  Santa Barbara, California 93101
                  Attention: Roland F. Bryan, Chief Executive Officer
                  Telephone: (805) 957-1680
                  Facsimile: (805) 957-1740

                  IF TO THE PURCHASER:

                  ------------------------

                  ------------------------

                  ------------------------

                                      -9-
<PAGE>

         8.4  ENTIRE  AGREEMENT.   This  Agreement,   and  any  instruments  and
agreements  to be  executed  pursuant to this  Agreement,  sets forth the entire
understanding  of the parties  hereto with  respect to the  Agreement's  subject
matter, merges and supersedes all prior and contemporaneous  understandings with
respect to its subject matter and may not be waived or modified,  in whole or in
part,  except by a writing signed by each of the parties to this  Agreement.  No
waiver of any provision of this  Agreement in any instance shall be deemed to be
a waiver of the same or any other  provision in any other  instance.  Failure of
any party to enforce any provision of this Agreement shall not be construed as a
waiver of its rights under such provision.

         8.5  SUCCESSORS  AND ASSIGNS.  This  Agreement  shall be binding  upon,
enforceable  against and inure to the  benefit of, the parties  hereto and their
respective   heirs,   administrators,   executors,   personal   representatives,
successors  and  assigns,  and  nothing  herein is intended to confer any right,
remedy or benefit upon any other person.

         8.6 GOVERNING LAW AND VENUE.  This  Agreement  shall be governed by and
interpreted in accordance  with the laws of the State of  California,  excluding
its choice of law rules.  The parties consent to jurisdiction in the Federal and
state courts of California for all actions  arising under or in connection  with
this Agreement.

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

         8.8  CONSTRUCTION.   Headings  contained  in  this  Agreement  are  for
convenience only and shall not be used in the  interpretation of this Agreement.
As used herein,  the singular includes the plural,  and the masculine,  feminine
and neuter gender each includes the others where the context so indicates.

         8.9  SEVERABILITY.  If any  provision  of this  Agreement is held to be
invalid or  unenforceable by a court of competent  jurisdiction,  this Agreement
shall be  interpreted  and  enforceable  as if such  provision  were  severed or
limited,  but only to the extent  necessary  to render such  provision  and this
Agreement enforceable.

         8.10  CONFIDENTIALITY AND  NON-DISCLOSURE.  Each party hereto agrees to
use its best efforts to ensure that its authorized  representatives use the same
degree of care as such party uses to protect its own confidential information to
keep  confidential  any  information  furnished  to it  which  any  other  party
identifies as being  confidential or proprietary (so long as such information is
not in the public domain),  except that Purchaser may disclose such  proprietary
or confidential  information to any  representative of Purchaser for the purpose
of evaluating  its investment in the Company as long as such  representative  is
advised of the confidentiality provisions of this Section 8.10.

         8.11  "KNOWLEDGE."  Whenever  any  representation  or  warranty  of the
Company  contained in this  Agreement or in any  certificate  or other  document
delivered in connection  with this Agreement is qualified to the  "knowledge" of
the Company,  such qualification shall mean the actual knowledge of the officers
of the Company.

                                      -10-
<PAGE>

         IN  WITNESS  WHEREOF,  each of the  parties  hereto has  executed  this
Agreement as of the date first above written.

COMPANY:                             MachineTalker, Inc.

                                     By:________________________________________
                                        Roland F. Bryan, Chief Executive Officer

PURCHASER:                           ....

                                     By:________________________________________
                                         .....

                                      -11-EXHIBIT 10.2

            NONSTATUTORY STOCK OPTION AGREEMENT WITH JAMES B. NELSON,
                               DATED JULY 22, 2010

<PAGE>

                               MACHINETALKER, INC.
                       NONSTATUTORY STOCK OPTION AGREEMENT

================================================================================

         THIS  NONSTATUTORY  STOCK OPTION  AGREEMENT  ("AGREEMENT")  is made and
entered into as of the date set forth below, by and between MachineTalker, Inc.,
a Delaware corporation (the "COMPANY"), and the individual ("OPTIONEE") named in
Section 1(b):

         In  consideration of the covenants herein set forth, the parties hereto
agree as follows:

         1.  OPTION INFORMATION.

                  (a)      Date of Option:         JULY 22, 2010
                                                   -------------

                  (b)      Optionee:               JAMES B. NELSON
                                                   ---------------

                  (c)      Number of Shares:       75,000,000
                                                   ----------

                  (d)      Exercise Price:         $0.01 PER SHARE
                                                   ---------------

         2.  ACKNOWLEDGEMENTS.

                  (a)  Optionee  is a  currently  engaged  by the  Company  as a
consultant.  The parties  understand  that Optionee may be hired as an executive
employee of the Company in the future.

                  (b) The Board of Directors  (the "BOARD") has  authorized  the
granting to Optionee  of a  nonstatutory  stock  option  ("OPTION")  to purchase
shares of common stock of the Company  ("STOCK")  upon the terms and  conditions
hereinafter  stated and pursuant to an  exemption  from  registration  under the
Securities Act of 1933, as amended (the  "SECURITIES  ACT") provided by Rule 701
thereunder.

         3.  SHARES;  PRICE.  Company  hereby  grants to  Optionee  the right to
purchase, upon and subject to the terms and conditions herein stated, the number
of shares of Stock set forth in Section 1(c) above (the "SHARES") for cash or on
a  cashless  basis  (or other  consideration  as is  acceptable  to the Board of
Directors of the Company,  in their sole and absolute  discretion)  at the price
per Share set forth in Section 1(d) above (the "EXERCISE PRICE").

         4. TERM OF OPTION;  CONTINUATION OF SERVICE.  This Option shall expire,
and all rights  hereunder to purchase the Shares shall terminate seven (7) years
from the date hereof.  This Option shall earlier terminate subject to Sections 7
and 8  hereof  upon,  and as of the  date  of,  the  termination  of  Optionee's
employment  or engagement if such  termination  occurs prior to the  Termination
Date.  Nothing  contained  herein  shall  confer upon  Optionee the right to the

<PAGE>

continuation  of  his or her  employment  or  engagement  by the  Company  or to
interfere  with  the  right of the  Company  to  terminate  such  employment  or
engagement or to increase or decrease the compensation of Optionee from the rate
in existence at the date hereof.

         5.  VESTING OF OPTION.  Subject to the  provisions  of Sections 7 and 8
hereof and the vesting  schedule in this  Section 5, this  Option  shall  become
exercisable  during the term of Optionee's  employment or engagement.  For every
one month of  consecutive  employment  or  engagement  subsequent to the Date of
Option  in  Section  1(a),   1/36th  of  the  Shares  shall  become  vested  and
exercisable. Any unvested options at the time of the death or termination of the
Optionee   for  any  reason  shall   automatically   expire  and  no  longer  be
exerciseable.

         6. EXERCISE.  This Option shall be exercised by delivery to the Company
of (a) written notice of exercise  stating the number of Shares being  purchased
(in whole  shares  only)  and such  other  information  set forth on the form of
Notice of  Exercise  attached  hereto as  APPENDIX A, (b) a check or cash in the
amount of the Exercise  Price of the Shares covered by the notice (or such other
consideration  as has been approved by the Board of Directors) and (c) a written
investment representation as provided for in Section 13 hereof.  Notwithstanding
anything to the contrary contained in this Option,  this Option may be exercised
by  presentation  and  surrender of this Option to the Company at its  principal
executive  offices with a written  notice of the holder's  intention to effect a
cashless  exercise,  including a  calculation  of the number of shares of Common
Stock to be issued upon such  exercise in  accordance  with the terms  hereof (a
"Cashless Exercise"). In the event of a Cashless Exercise, in lieu of paying the
Exercise Price in cash,  the holder shall  surrender this Option for that number
of shares of Common  Stock  determined  by  multiplying  the number of Shares to
which it would otherwise be entitled by a fraction, the numerator of which shall
be the difference  between the then current Market Price per share of the Common
Stock and the Exercise  Price,  and the  denominator  of which shall be the then
current  Market Price per share of Common Stock.  For example,  if the holder is
exercising  100,000 Options with a per exercise price of $0.75 per share through
a cashless  exercise when the Common  Stock's  current Market Price per share is
$2.00 per share, then upon such Cashless Exercise the holder will receive 62,500
shares of Common  Stock.  Market  Price is  defined  as the  average of the last
reported sale prices on the principal trading market for the Common Stock during
the five (5) trading days  immediately  preceding the exercise date. This Option
shall  not be  assignable  or  transferable,  except  by will or by the  laws of
descent and  distribution,  and shall be exercisable only by Optionee during his
or her lifetime, except as provided in Section 8 hereof.

         7.  TERMINATION OF  EMPLOYMENT.  If Optionee shall cease to be employed
and engaged by the Company for any reason, whether voluntarily or involuntarily,
other than by his or her death,  Optionee  (or if the  Optionee  shall die after
such  termination,   but  prior  to  such  exercise  date,  Optionee's  personal
representative  or the person  entitled to succeed to the Option) shall have the
right  at any time  within  three  (3)  months  following  such  termination  of
employment and engagement or the remaining term of this Option, whichever is the
lesser,  to exercise in whole or in part this Option to the extent,  but only to

                                      -2-
<PAGE>

the extent,  that this Option was  exercisable  as of the date of termination of
employment  and  engagement and had not  previously  been  exercised;  provided,
however:  (i) if Optionee is permanently disabled (within the meaning of Section
22(e)(3) of the Code) at the time of termination,  the foregoing three (3) month
period  shall be extended to six (6) months;  or (ii) if Optionee is  terminated
"for cause", any employment or consulting agreement between the Optionee and the
Company,  this Option shall automatically  terminate as to all Shares covered by
this Option not exercised prior to termination.

         Unless earlier terminated, all rights under this Option shall terminate
in any event on the  expiration  date of this  Option as  defined  in  Section 4
hereof.

         8. DEATH OF OPTIONEE.  If the Optionee shall die while in the employ of
the  Company,  Optionee's  personal  representative  or the person  entitled  to
Optionee's rights hereunder may at any time within six (6) months after the date
of Optionee's  death, or during the remaining term of this Option,  whichever is
the lesser,  exercise this Option and purchase Shares to the extent, but only to
the extent,  that Optionee  could have  exercised  this Option as of the date of
Optionee's  death;  provided,  in any case, that this Option may be so exercised
only to the  extent  that this  Option  has not  previously  been  exercised  by
Optionee.

         9. NO  RIGHTS  AS  SHAREHOLDER.  Optionee  shall  have no  rights  as a
shareholder with respect to the Shares covered by any installment of this Option
until the effective  date of issuance of the Shares  following  exercise of this
Option,  and no adjustment  will be made for dividends or other rights for which
the record date is prior to the date such stock  certificate or certificates are
issued except as provided in Section 10 of this Agreement.

         10.   RECAPITALIZATION.   Subject  to  any   required   action  by  the
shareholders  of the Company,  the number of Shares covered by this Option,  and
the Exercise Price thereof,  shall be proportionately  adjusted for any increase
or decrease  in the number of issued  shares  resulting  from a  subdivision  or
consolidation of shares, or any other increase or decrease in the number of such
shares  effected  without  receipt of  consideration  by the  Company;  provided
however that the conversion of any  convertible  securities of the Company shall
not be deemed having been  "effected  without  receipt of  consideration  by the
Company".

         In the event of a proposed dissolution or liquidation of the Company, a
merger or consolidation in which the Company is not the surviving  entity,  or a
sale of all or  substantially  all of the assets or capital stock of the Company
(collectively, a "REORGANIZATION"), unless otherwise provided by the Board, this
Option shall  terminate  immediately  prior to such date as is determined by the
Board,   which  date  shall  be  no  later   than  the   consummation   of  such
Reorganization. In such event, if the entity which shall be the surviving entity
does not tender to Optionee an offer,  for which it has no  obligation to do so,
to substitute for any unexercised Option a stock option or capital stock of such
surviving of such surviving entity,  as applicable,  which on an equitable basis
shall provide the Optionee with  substantially the same economic benefit as such
unexercised Option,  then the Board may grant to such Optionee,  in its sole and
absolute  discretion and without  obligation,  the right for a period commencing
thirty (30) days prior to and ending immediately prior to the date determined by
the Board pursuant  hereto for termination of the Option or during the remaining

                                      -3-
<PAGE>

term of the Option, whichever is the lesser, to exercise any unexpired Option or
Options  without  regard to the  installment  provisions of Section 5; provided,
however,  that  such  exercise  shall be  subject  to the  consummation  of such
Reorganization.

         Subject to any required action by the  shareholders of the Company,  if
the Company shall be the surviving entity in any merger or  consolidation,  this
Option thereafter shall pertain to and apply to the securities to which a holder
of Shares equal to the Shares subject to this Option would have been entitled by
reason of such  merger  or  consolidation,  and the  installment  provisions  of
Section 5 shall continue to apply.

         In the event of a change  in the  shares of the  Company  as  presently
constituted, which is limited to a change of all of its authorized stock without
par value into the same  number of shares of stock with a par value,  the shares
resulting  from any such  change  shall be deemed to be the  Shares  within  the
meaning of this Option.

         To the  extent  that the  foregoing  adjustments  relate  to  shares or
securities of the Company,  such adjustments  shall be made by the Board,  whose
determination in that respect shall be final, binding and conclusive.  Except as
hereinbefore expressly provided,  Optionee shall have no rights by reason of any
subdivision or  consolidation  of shares of stock of any class or the payment of
any stock  dividend or any other increase or decrease in the number of shares of
stock of any class,  and the number and price of Shares  subject to this  Option
shall not be  affected  by, and no  adjustments  shall be made by reason of, any
dissolution,  liquidation,  merger,  consolidation  or sale of assets or capital
stock, or any issue by the Company of shares of stock of any class or securities
convertible into shares of stock of any class.

         The grant of this Option shall not affect in any way the right or power
of the  Company  to  make  adjustments,  reclassifications,  reorganizations  or
changes in its capital or business structure or to merge, consolidate,  dissolve
or liquidate or to sell or transfer all or any part of its business or assets.

         11. TAXATION UPON EXERCISE OF OPTION.  Optionee  understands that, upon
exercise of this Option,  Optionee will  recognize  income for Federal and state
income tax  purposes,  in an amount equal to the amount by which the fair market
value of the Shares, determined as of the date of exercise, exceeds the Exercise
Price. The acceptance of the Shares by Optionee shall constitute an agreement by
Optionee to report such income in  accordance  with then  applicable  law and to
cooperate  with  Company  in   establishing   the  amount  of  such  income  and
corresponding deduction to the Company for its income tax purposes.  Withholding
for federal or state income and  employment tax purposes will be made, if and as
required by law, from Optionee's then current compensation,  or, if such current
compensation is insufficient to satisfy  withholding tax liability,  the Company
may  require  Optionee  to make a cash  payment  to cover  such  liability  as a
condition of the exercise of this Option.

         12.  MODIFICATION,  EXTENSION  AND  RENEWAL  OF  OPTIONS.  The Board of
Directors or Compensation  Committee may modify,  extend or renew this Option or
accept the  surrender  thereof  (to the extent not  theretofore  exercised)  and

                                      -4-
<PAGE>

authorize the granting of a new option in substitution  therefore (to the extent
not theretofore  exercised).  Notwithstanding  the foregoing  provisions of this
Section 12, no modification shall, without the consent of the Optionee, alter to
the Optionee's detriment or impair any rights of Optionee hereunder.

         13.  INVESTMENT INTENT; RESTRICTIONS ON TRANSFER.

                  (a) Optionee  represents and agrees that if Optionee exercises
         this Option in whole or in part, Optionee will in each case acquire the
         Shares upon such exercise for the purpose of investment  and not with a
         view to, or for resale in connection  with, any  distribution  thereof;
         and  that  upon  such  exercise  of this  Option  in  whole or in part,
         Optionee  (or any person or persons  entitled to  exercise  this Option
         under the  provisions  of Sections 7 and 8 hereof) shall furnish to the
         Company a written statement to such effect, satisfactory to the Company
         in form and  substance.  If the Shares  represented  by this Option are
         registered  under  the  Securities  Act,  either  before  or after  the
         exercise  of this  Option in whole or in part,  the  Optionee  shall be
         relieved of the foregoing  investment  representation and agreement and
         shall not be required to furnish the Company with the foregoing written
         statement.

                  (b) Optionee  further  represents that Optionee has had access
         to the financial  statements  or books and records of the Company,  has
         had the  opportunity  to ask  questions of the Company  concerning  its
         business,  operations and financial condition, and to obtain additional
         information  reasonably  necessary  to  verify  the  accuracy  of  such
         information

                  (c) Unless and until the Shares represented by this Option are
         registered under the Securities Act, all certificates  representing the
         Shares  and  any  certificates   subsequently  issued  in  substitution
         therefor and any certificate for any securities  issued pursuant to any
         stock split,  share  reclassification,  stock dividend or other similar
         capital event shall bear legends in substantially the following form:

         THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE  QUALIFIED UNDER
         THE  SECURITIES  ACT OF  1933  (THE  'SECURITIES  ACT')  OR  UNDER  THE
         APPLICABLE OR SECURITIES  LAWS OF ANY STATE.  NEITHER THESE  SECURITIES
         NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
         DISPOSED OF IN THE ABSENCE OF REGISTRATION  UNDER THE SECURITIES ACT OR
         ANY  APPLICABLE  SECURITIES  LAWS  OF ANY  STATE,  UNLESS  PURSUANT  TO
         EXEMPTIONS THEREFROM.

and/or  such  other  legend or  legends  as the  Company  and its  counsel  deem
necessary or appropriate. Appropriate stop transfer instructions with respect to
the Shares have been placed with the Company's transfer agent.

         14. STAND-OFF  AGREEMENT.  Optionee agrees that, in connection with any
registration of the Company's  securities under the Securities Act, and upon the
request of the Company or any underwriter  managing an underwritten  offering of
the  Company's  securities,  Optionee  shall not sell,  short any sale of, loan,
grant an option  for,  or  otherwise  dispose of any of the Shares  (other  than
Shares  included  in the  offering)  without  the prior  written  consent of the
Company or such managing  underwriter,  as applicable,  for a period of at least
one year following the effective date of registration of such offering.

                                      -5-
<PAGE>

         15. RESTRICTION UPON TRANSFER.  The Shares may not be sold, transferred
or otherwise  disposed of and shall not be pledged or otherwise  hypothecated by
the Optionee except as hereinafter provided.

                  (a) RIGHT OF FIRST REFUSAL.  In the event Optionee  desires to
         transfer any Shares  during his or her lifetime,  Optionee  shall first
         offer to sell such Shares to the Company. Optionee shall deliver to the
         Company written notice of the intended sale, such notice to specify the
         number of Shares to be sold,  the proposed  purchase price and terms of
         payment,  and grant the  Company an option for a period of thirty  (30)
         days  following  receipt of such notice to purchase the offered  Shares
         upon the same  terms and  conditions.  To  exercise  such  option,  the
         Company  shall give notice of that fact to  Optionee  within the thirty
         (30) day  notice  period  and  agree to pay the  purchase  price in the
         manner provided in the notice.  If the Company does not purchase all of
         the Shares so offered during foregoing option period, Optionee shall be
         under no obligation  to sell any of the offered  Shares to the Company,
         but may dispose of such Shares in any lawful  manner during a period of
         one  hundred  and eighty  (180) days  following  the end of such notice
         period,  except  that  Optionee  shall not sell any such  Shares to any
         other  person at a different  price or upon more  favorable  terms than
         those  offered to the  Company  without  the  Company's  express  prior
         written consent.

                  (b) ACCEPTANCE OF RESTRICTIONS. Acceptance of the Shares shall
         constitute  the  Optionee's  agreement  to  such  restrictions  and the
         legending of his  certificates  with respect  thereto.  Notwithstanding
         such  restrictions,  however,  so long as the Optionee is the holder of
         the Shares, or any portion thereof, he shall be entitled to receive all
         dividends declared on and to vote the Shares and to all other rights of
         a shareholder with respect to the Shares.

                  (c) PERMITTED  TRANSFERS.  Notwithstanding  any  provisions in
         this Section 15 to the  contrary,  the  Optionee  may  transfer  Shares
         subject to this Agreement to his or her parents,  spouse,  children, or
         grandchildren,  or a trust for the benefit of the  Optionee or any such
         transferee(s);  provided,  that such permitted transferee(s) shall hold
         the  Shares  subject  to all  the  provisions  of this  Agreement  (all
         references  to the Optionee  herein  shall in such cases refer  mutatis
         mutandis  to the  permitted  transferee,  and  provided  further,  that
         notwithstanding  any other  provisions in this  Agreement,  a permitted
         transferee  may not,  in turn,  make  permitted  transfers  without the
         written consent of the Optionee and the Company.

                                      -6-
<PAGE>

         16.  NOTICES.  Any notice  required to be given pursuant to this Option
shall be in writing and shall be deemed to be delivered  upon receipt or, in the
case of notices by the Company,  five (5) days after  deposit in the U.S.  mail,
postage prepaid,  addressed to Optionee at the address last provided by Optionee
for his or her employee records.

         17.  APPLICABLE  LAW.  This  Option  has  been  granted,  executed  and
delivered in the State of California,  and the  interpretation  and  enforcement
shall be governed by the laws thereof and subject to the exclusive  jurisdiction
of the courts located in the State of California.

         IN WITNESS WHEREOF,  the parties hereto have executed this Option as of
the date first above written.

                           COMPANY:                MachineTalker, Inc.

                                                   By: /s/ Roland F. Bryan
                                                   -----------------------------
                                                   Name: Roland F. Byran
                                                   Title:  Chairman of the Board

                           OPTIONEE:
                                                   By:
                                                   -----------------------------
                                                            (signature)
                                                   Name: James B. Nelson

                                      -7-
<PAGE>

                                   APPENDIX A

                               NOTICE OF EXERCISE

MACHINETALKER, INC.

--------------------------------

--------------------------------

--------------------------------

         Re: Nonstatutory Stock Option

         1) Notice is hereby  given  pursuant  to  Section 6 of my  Nonstatutory
Stock Option  Agreement  that I elect to purchase the number of shares set forth
below at the exercise price set forth in my option agreement:

         Nonstatutory Stock Option Agreement dated: _________________

         Number of shares being purchased: _________________

         Exercise Price: $_______________

         A check  in the  amount  of the  aggregate  price of the  shares  being
purchased is attached.

OR

         2) I elect a cashless exercise pursuant to Section 6 of my Nonstatutory
Stock Option  Agreement.  The Average  Market Price as of  ________________  was
$_________.

         I hereby  confirm that such shares are being  acquired by me for my own
account  for  investment  purposes,  and not with a view to,  or for  resale  in
connection  with,  any  distribution  thereof.  I will not sell or dispose of my
Shares in violation of the Securities Act of 1933, as amended, or any applicable
federal or state securities laws.  Further, I understand that the exemption from
taxable  income at the time of exercise is dependent  upon my holding such stock
for a period of at least one year from the date of  exercise  and two years from
the date of grant of the Option.

         I understand that the certificate  representing  the Option Shares will
bear a restrictive  legend within the contemplation of the Securities Act and as
required  by such other  state or federal law or  regulation  applicable  to the
issuance or delivery of the Option Shares.

                                                  By:
                                                  ------------------------------
                                                           (signature)

                                                  Name:
                                                  ------------------------------

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