Document:

Exhibit 10.12

NOVA ENERGY HOLDING, INC.

2006 EQUITY INCENTIVE PLAN

STOCK
OPTION AGREEMENT

(INCENTIVE AND NON-QUALIFIED STOCK OPTIONS)

Pursuant to your
Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement (“Agreement”),
Nova Energy Holding, Inc. (the “Company”) has granted you an option (“Stock
Option”) under its 2006 Equity Incentive Plan (the “Plan”) to purchase the
number of shares of the Company’s Common Stock indicated in your Grant Notice
at the exercise price indicated in your Grant Notice. Defined terms not
explicitly defined in this Stock Option Agreement but defined in the Plan shall
have the same definitions as in the Plan.

The details of
your Stock Option are as follows:

Section 1.              Grant of Stock Option.

1.1          Type of Stock Option.
The type of Stock Option that you have been awarded is referenced in your Grant
Notice.

1.2          Incentive Stock
Option $100,000 Limitation.  As
stated in Section 6.8 of the Plan, to the extent that the aggregate Fair
Market Value (determined as of the time the Stock Option is granted) of the
Common Stock with respect to which Incentive Stock Options granted under the
Plan (and all other plans of the Company and its Subsidiaries and Parent
Company) become exercisable for the first time by any Optionee in any calendar
year exceeds $100,000, such Stock Options or portions thereof which exceed such
limit (according to the order in which they are granted) shall be treated as
Non-Qualified Stock Options.

1.3          Number of Shares
and Exercise Price. The number of shares of Common Stock subject to your
Stock Option and the exercise price per share referenced in your Grant Notice
may be adjusted from time to time for capitalization adjustments, as provided
in Section 22 of the Plan.

Section 2.              Vesting. Subject
to the limitations contained herein, your Stock Option will vest as provided in
your Grant Notice, provided that vesting will cease upon the termination of
your Continuous Service except as otherwise provided in your Grant Notice or
the Plan. The unvested portion of your Stock Option, after giving effect to the
vesting schedule provided in your Grant Notice, will terminate immediately upon
the termination of your Continuous Service.

Section 3.              Exercise of Stock Options. Except
as otherwise provided herein, and subject to the provisions of the Plan
(including the requirements in Section 14 of the Plan, restrictions on the
transferability of the Stock Option and special provisions relating to exercise
or termination of the Stock Option following your termination of Continuous
Service, death or Disability, certain changes in capitalization of the Company
or a Change in Control), the Stock Option granted pursuant to this Agreement
shall be subject to exercise as follows:

 

(a)           You may exercise
the vested portion of your Stock Option during its term by delivering a Notice
of Exercise (in a form designated by the Company) together with the exercise
price to the Committee, or to such other person as the Committee may designate,
during regular business hours, together with such additional documents as the
Company may then require.

(b)           By exercising your
Stock Option, you agree that, as a condition to any exercise of a Stock Option,
the Company may require you to enter into an arrangement providing for the
payment by you to the Company of any tax withholding obligation of the Company
arising by reason of (1) the exercise of your Stock Option, (2) the
lapse of any substantial risk of forfeiture to which the shares of Common Stock
are subject at the time of exercise, or (3) the disposition of shares of
Common Stock acquired upon such exercise.

(c)           If your Stock
Option is an Incentive Stock Option, by exercising your Stock Option, you agree
to notify the Company in writing within 15 days after the date of any
disposition of any of the shares of Common Stock issued upon exercise of your
Stock Option that occurs within two years after the Date of Grant or within one
year after such shares of Common Stock are issued upon exercise of your Stock
Option.

(d)           By
exercising your Stock Option, you agree that the Company (or a representative
of the underwriter(s)) may, in connection with an underwritten registration of
the offering of any securities of the Company under the Act, require that you
not sell, dispose of, transfer, make any short sale of, grant any Stock Option
for the purchase of, or enter into any hedging or similar transaction with the
same economic effect as a sale, any shares of Common Stock or other securities
of the Company held by you, for a period of time specified by the underwriter(s),
provided that such restrictions shall expire not later than 180 days following
the date the registration statement filed under the Act by the Company is
declared effective by the Securities and Exchange Commission. You further agree
to execute and deliver such other agreements as may be reasonably requested by
the Company and/or the underwriter(s) that are consistent with the
foregoing or that are necessary to give further effect thereto. In order to
enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to your shares of Common Stock until the end of such
period.

Section 4.              Method of Payment. Payment
of the exercise price is due in full upon exercise of all or any part of the
Stock Option. You may elect to make payment of the exercise price in any manner
permitted by the Grant Notice, which may include one or more the following:

(a)           Payment by cash, certified or cashier’s check, bank
draft, money order, wire transfer payable to the order of the Company, free
from all collection charges;

(b)           Delivery of shares of Common Stock already
owned by you and having a Fair Market Value equal to the aggregate exercise
price, or by a combination of cash and shares of Common Stock, in each case to
the extent permitted by applicable law and not in violation of any instrument
or agreement to which the Company is a party and, unless approved by the
Committee, not resulting in a charge to the Company’s reported earnings; or

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(c)           If permitted by the
Committee, in its sole discretion, at the time your Stock Option is exercised, delivery (including by facsimile or by
electronic mail) to the Company or its designated agent of an executed
irrevocable option exercise form together with irrevocable instructions from
the Participant to a broker or dealer, reasonably acceptable to the Company, to
sell certain of the shares of Common Stock purchased upon exercise of the Stock
Option or to pledge such shares as collateral for a loan and promptly deliver
to the Company the amount of sale or loan proceeds necessary to pay such
purchase price and any tax withholding obligations that may arise in connection
with such exercise (otherwise known as a “cashless exercise”).

Section 5.              Whole Shares. You
may exercise your Stock Option only for whole shares of Common Stock.

Section 6.              Term of Stock Option.

6.1          Commencement.
The term of your Stock Option commences on the Date of Grant, which is set
forth in the Grant Notice.

6.2          Expiration. Except
as otherwise provided in Section 35 of the Plan in the event of a Change
in Control, the term of your Stock Option expires upon the earliest of the following:

(a)           immediately upon
the termination of your Continuous Service for “Cause” (as such term is defined
in your Grant Notice or employment agreement, if any) or upon the breach by you
of any restrictive covenant set forth in any agreement with the Company or a
Subsidiary or Parent Company;

(b)           three months after
the termination of your Continuous Service for any reason other than death or
Disability, provided that if during any part of such three month period your
Stock Option is not exercisable solely because of the condition set forth in Section 7
below relating to “Securities Law Compliance”, your Stock Option shall not
expire until the earlier of the Expiration Date indicated in your Grant Notice
or until it shall have been exercisable for an aggregate period of three months
after the termination of your Continuous Service, except as may otherwise by
required to comply with the requirements for exemption under Section 409A
of the Code;

(c)           12 months after the
termination of your Continuous Service due to death or Disability;

(d)           the Expiration Date
indicated in your Grant Notice; or

(e)           the tenth
anniversary of the Date of Grant.

For purposes of clause (a) above, if there is a conflict between
the definition of “Cause” as defined in your Grant Notice and as defined in
your employment agreement, if any, the most restrictive definition of “Cause”
shall apply unless your employment agreement expressly provides otherwise.

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6.3          The Committee may cancel, rescind, suspend,
withhold or otherwise limit or restrict your Stock Option at any time if you
are not in compliance with all applicable provisions of this Agreement and the
Plan, or if you engage in any “Detrimental Activity.”

For
purposes of this Section 6.3, “Detrimental Activity” shall include:

(i)            the rendering of services for any
organization or engaging directly or indirectly in any business which is or
becomes competitive with the Company, any Parent Company or any Subsidiary or
the willful or intentional breach of any agreement between the Company, a
Parent Company or a Subsidiary and you regarding noncompetition with the
Company, such Parent Company or such Subsidiary (or the finding by a court or
other tribunal that any such agreement regarding noncompetition is
unenforceable);

(ii)           the willful or intentional breach of
any agreement or policy of the Company, any Parent Company or a Subsidiary
regarding the protection and disclosure of the confidential information of the
Company, any Parent Company or any Subsidiary;

(iii)          the willful
or intentional breach of the provisions of any agreement between the Company,
any Parent Company or a Subsidiary and
you regarding the protection, declaration or assignment of inventions or the
protection, declaration or assignment of copyrights;

(iv)          the willful or intentional breach of
the provisions of any agreement between the Company, a Parent Company or
a Subsidiary and you prohibiting you from
directly or indirectly (i) inducing or attempting to induce any employee
of the Company, a Parent Company or a Subsidiary to quit employment with the Company, a Parent Company or a
Subsidiary; (ii) otherwise interfering
with or disrupting the Company’s, a Parent Company’s or a Subsidiary’s relationship with its employees, customers or
suppliers; (iii) identifying employees of the Company, a Parent Company or
a Subsidiary for any future employer of
you; (iv) soliciting, enticing or hiring away any employee of the Company,
a Parent Company or a Subsidiary; or
(v) hiring or engaging any employee of the Company, a Parent Company or
a Subsidiary or any former employee of the
Company, a Parent Company or a Subsidiary whose employment with the Company, a Parent Company or a
Subsidiary ceased less than one year before
the date of such hiring or engagement (or the finding by a court or
other tribunal that any such agreement regarding such matters is unenforceable); or

(v)           any activity that may result
in termination of your employment for “Cause” as defined in this Agreement or
your Grant Notice or an employment agreement between the Company, a Parent Company or a Subsidiary and
you.

Upon exercise of your
Stock Option, you must certify in a manner acceptable to the Committee that you
are in compliance with the terms and conditions of the Plan and this Agreement.
In the event you fail to comply with the provisions of this Section 6.3
prior to, or during the two years after, any exercise of your Stock Option,
such exercise may be rescinded within two years thereafter. In the event of any
such rescission, you must pay to the Company the amount of any gain realized or
payment received as a result of the rescinded exercise, in such

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manner and on such terms and conditions as may be
required, and the Company shall be entitled to set-off against the amount of
any such gain any amount owed you by the Company, any Parent Company or any
Subsidiary.

6.4          Incentive Stock
Option Employee Rule. If your Stock Option is an Incentive Stock Option,
note that to obtain the federal income tax advantages associated with an “Incentive
Stock Option,” the Code requires that at all times beginning on the Date of
Grant of your Stock Option and ending on the day three months before the date
of your Stock Option’s exercise, you must be an employee of the Company or a
Subsidiary or Parent Company, except in the event of your death or Disability. The
Company has provided for extended exercisability of your Stock Option under
certain circumstances for your benefit but cannot guarantee that your Stock
Option will necessarily be treated as an “Incentive Stock Option” if you
continue to provide services to the Company or a Subsidiary or Parent Company
as a consultant, adviser or director after your employment terminates or if you
otherwise exercise your Stock Option more than three months after the date your
employment terminates.

Section 7.              Securities Law Requirements. Notwithstanding
anything to the contrary contained herein, you may not exercise your Stock
Option unless the shares of Common Stock issuable upon such exercise are then
registered under the Act or, if such shares of Common Stock are not then so
registered, the Company has determined that such exercise and issuance would be
exempt from the registration requirements of the Act. The exercise of your
Stock Option must also comply with other applicable laws and regulations
governing your Stock Option, and you may not exercise your Stock Option if the
Company determines that such exercise would not be in material compliance with
such laws and regulations or would result in liability under Section 16 of
the  Securities Exchange Act of 1934, as
amended.

Section 8.              No Right to Continue Employment
or Service. Nothing in this Agreement, the Plan, your
Grant Notice or your Notice of Exercise shall confer upon you any right to
continue to serve the Company or any Subsidiary or Affiliate in the capacity in
effect at the time the Stock Option was granted or shall affect the right of
the Company or any Subsidiary or Affiliate to terminate (i) your
employment, if you are an employee, with or without notice and with or without
cause, (ii) your service as a consultant or adviser, if you are a
consultant or adviser, pursuant to the terms of your agreement with the Company
or any Subsidiary or Affiliate or (iii) your service as a director, if you
are a director, pursuant to the Bylaws of the Company or any Subsidiary or
Affiliate and any applicable provisions of the corporate law of the state in
which the Company or any Subsidiary or Affiliate is incorporated, as the case
may be.

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Section 9.              Withholding
of Taxes.

(a)           At
the time you exercise your Stock Option, in whole or in part, or at any time
thereafter as requested by the Company, you hereby authorize withholding from
payroll and any other amounts payable to you, and otherwise agree to make
adequate provision for (including by means of a “cashless exercise” pursuant to
a program developed under Regulation T as promulgated by the Federal Reserve
Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or
a Subsidiary or Affiliate, if any, which arise in connection with your Stock
Option.

(b)           Upon your request
and subject to approval by the Company, in its sole discretion, and compliance
with any applicable conditions or restrictions of law, the Company may withhold
from fully vested shares of Common Stock otherwise issuable to you upon the
exercise of your Stock Option a number of whole shares of Common Stock having a
Fair Market Value, determined by the Company as of the date of exercise, not in
excess of the minimum amount of tax required to be withheld by law. If the date
of determination of any tax withholding obligation is deferred to a date later than
the date of exercise of your Stock Option, share withholding pursuant to the
preceding sentence shall not be permitted unless you make a proper and timely
election under Section 83(b) of the Code, covering the aggregate
number of shares of Common Stock acquired upon such exercise with respect to
which such determination is otherwise deferred, to accelerate the determination
of such tax withholding obligation to the date of exercise of your Stock Option.
Notwithstanding the filing of such election, shares of Common Stock shall be
withheld solely from fully vested shares of Common Stock determined as of the
date of exercise of your Stock Option that are otherwise issuable to you upon
such exercise. Any adverse consequences to you arising in connection with such
share withholding procedure shall be your sole responsibility.

(c)           You may not
exercise your Stock Option unless the tax withholding obligations of the
Company and/or any Subsidiary and/or any Affiliate are satisfied. Accordingly,
you may not be able to exercise your Stock Option when desired even though your
Stock Option is vested, and the Company shall have no obligation to issue a
certificate for such shares of Common Stock or release such shares of Common
Stock from any escrow provided for herein or under the Plan.

Section 10.            Non-Assignability. Your
Stock Option is not transferable, except by will or by the laws of descent and
distribution, and is exercisable during your life only by you. Notwithstanding
the foregoing, by delivering written notice to the Company, in a form
satisfactory to the Company, you may designate a third party who, in the event
of your death, shall thereafter be entitled to exercise your Stock Option.

Further,
with the approval of the Committee, you may transfer your Non-Qualified Stock
Option for no consideration to or for the benefit of your Immediate Family
(including, without limitation, to a trust for the benefit of your Immediate
Family or to a partnership or limited liability company for one or more members
of your Immediate Family), subject to such limits as the Committee may
establish, and the transferee shall remain subject to all the terms and
conditions applicable to your Non-Qualified Stock Option prior to such transfer.
The term “Immediate Family” shall mean your spouse, parents, children,
stepchildren, adoptive

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relationships,
sisters, brothers and grandchildren (and, for this purpose, shall also include
you).

At your request and subject to the approval of the
Committee, Common Stock purchased upon exercise of your Non-Qualified Stock
Option may be issued or transferred into your name and the name of your spouse
jointly with rights of survivorship.

Section 11.            Notice. For
purposes of this Agreement, notices and all other communications provided for
in this Agreement shall be in writing and shall be deemed to have been duly
given (a) one business day following confirmed facsimile transmission, (b) three
business days after being delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, or (c) one business day after
being sent via overnight delivery service, as follows:

	
  

  	
  If to the Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Nova Energy Holding, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
  Attn:

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

and, if to you, to the address shown on your Grant
Notice, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

Section 12.            Governing Plan Document. Your
Stock Option granted pursuant to this Agreement is subject to the terms and
conditions set forth in the Plan, a copy of which is attached to this Agreement.
All the terms and conditions of the Plan, as may be amended from time to time,
and any rules, guidelines and procedures which may from time to time be
promulgated and adopted pursuant to the Plan, are hereby incorporated into this
Agreement, without regard to whether such terms and conditions (including, for
example, provisions relating to certain changes in capitalization of the
Company) are not otherwise set forth in this Agreement. In the event of any
conflict between the provisions of this Agreement and of the Plan, the
provisions of the Plan shall govern.

Section 13.            Compliance with Section 409A of the Code. Your Stock Option shall
remain subject at all times to compliance with the requirements for exemption
from Section 409A of the Code. If the Committee determines that your Stock
Option or any payment, distribution, deferral election, transaction or any
other action or arrangement contemplated by your Stock Option or the Plan
would, if undertaken, cause you to become subject to Section 409A of the
Code, your Stock Option or such payment, distribution, deferral election,
transaction or other action or arrangement shall not be undertaken and the
related provisions of the Plan and this Agreement shall be deemed modified or,
if necessary, rescinded in order to comply with the requirements for exemption
from Section 409A of the Code to the extent determined by the Committee.

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NOVA ENERGY HOLDING, INC.

2006 EQUITY INCENTIVE PLAN

STOCK
OPTION GRANT NOTICE

Nova Energy
Holding, Inc. (the “Company”), pursuant to its 2006 Equity Incentive Plan
(the “Plan”), hereby grants to the Optionee named below an option (“Stock
Option”) to purchase the number of shares of the Company’s Common Stock set
forth below. The terms and conditions of this Stock Option are subject to all
of the terms and conditions as set forth herein and in the Optionee’s Stock
Option Agreement, the Plan and the Notice of Exercise, all of which are
attached hereto and incorporated herein in their entirety.

	
  Optionee:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Optionee:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vesting Commencement Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of Shares Subject to the Stock Option:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercise Price:

  	
   

  	
   

  	
  Per Share $

  	
   

  	
   Total $

  	
   

  	
   

  

 

Type of
Grant:                                      o            Incentive
Stock Option(1)                  o            Non-Qualified
Stock Option

(1)             If this is an
Incentive Stock Option, it (plus your other outstanding Incentive Stock
Options) cannot be first exercisable  for
more than $100,000 in fair market value of shares (measured at the time of
grant) in any calendar year.  Any excess
over $100,000 is a Non-Qualified Stock Option.

Vesting Schedule:  Your Stock Option shall vest according to the
schedule set forth below, provided you are in Continuous Service from the Date
of Grant through the applicable date upon which vesting is scheduled to occur.  Notwithstanding the foregoing, your Stock
Option will fully vest on the date your Continuous Service terminates due to
your death or Disability.

	
   

  	
  Number or

  Percentage

  of Shares

  	
   

  	
   

  	
   

  	
  Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [          ]

  	
   

  	
  [                                                ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [          ]

  	
   

  	
  [                                                ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [          ]

  	
   

  	
  [                                                ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [          ]

  	
   

  	
  [                                                ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [          ]

  	
   

  	
  [                                                ]

  	
   

  

 

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Termination
for Cause:  Unless
you have an employment agreement with the Company or any Subsidiary that has a
more restrictive definition of “Cause”, for purposes of your Stock Option, the
termination of your Continuous Service for “Cause” shall mean termination due
to any of the following:  (i) commission
of an act of fraud, theft, wrongful diversion of funds or dishonesty against
the Company; (ii) arrest or conviction for any felony; arrest or conviction
for any misdemeanor involving moral turpitude which might, in the Company’s
sole discretion, cause embarrassment to the Company; (iii) willful or
repeated tardiness or absenteeism; (iv) insubordination; (v) self-dealing;
(vi) willful or repeated violation of Company policy; (vii) willful
or repeated non-performance or substandard performance of duties; (viii) willful
violation of any Employee Confidentiality and Invention Assignment Agreement
between the Company and you in the form separately provided to you; or (ix) violation
of any state or federal laws, rules or regulation in connection with or
during performance of work.. If you have an employment agreement with the
Company or any Subsidiary that has a more restrictive definition of “Cause”,
then the definition of “Cause” in your employment agreement will apply for
purposes of your Stock Option unless your employment agreement expressly
provides otherwise.]

Expiration
Date:  Unless
sooner terminated in accordance with your Stock Option Agreement or the terms
of the Plan, the Stock Option will terminate on                      ,
2016.

Payment:  By one or a combination of the following
methods (described in the Stock Option Agreement):

·                              By cash, check, bank
draft, money order or wire transfer;

·                              By delivery of
already-owned shares if the shares are publicly traded; and/or

·                              By
“cashless exercise” as described in the Stock Option Agreement.

Additional
Terms/Acknowledgements: The undersigned Optionee
acknowledges receipt of, and understands and agrees to, this Grant Notice, the
Stock Option Agreement and the Plan. Optionee further acknowledges that as of
the Date of Grant, this Grant Notice, the Stock Option Agreement, and the Plan
set forth the entire understanding between Optionee and the Company regarding
the Stock Option and the acquisition of Common Stock of the Company pursuant to
the exercise thereof and supersede all prior oral and written agreements on
that subject.

	
  Nova Energy Holding, Inc.

  	
   

  	
  Optionee:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  

 

 9Untitled Page

		

			

			

			

			EXHIBIT 10.1

					

					

				

		
			ADDENDUM TO WARRANT TO PURCHASE COMMON STOCK

					

				

		

		
			This Addendum to Warrant to Purchase Common Stock is entered into as of the 12th day of June 2006 by and between Material Technologies, Inc., a Delaware corporation (the “Company”) and La Jolla Cove Investors, Inc., a California corporation (the “Holder”).

				

				WHEREAS, the Company and Holder are parties to that certain Warrant to Purchase Common Stock dated as of May 30, 2006 (“Warrant”); and

		

		
			

			

			WHEREAS, the parties desire to amend the Warrant in certain respects.

			

			NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Holder agree as follows:

			

				All terms used herein shall have the definitions set forth in the Warrant.

					

				
	The number of Warrant Shares is hereby increased to 50,000,000. Holder agrees that, beginning on the date that a Registration Statement filed by the Company with the Securities and Exchange Commission becomes effective that registers the Warrant Shares, Holder will exercise the Warrant, pay the Exercise Price to the Company, and acquire the Warrant Shares, at a rate of at least 1,250,000 of the Warrant Shares per week, to continue for 40 consecutive weeks until all of the Warrant Shares have been purchased by Holder.

					

				
	Except as specifically amended herein, all other terms and conditions of the Warrant shall remain in full force and effect.
			

			IN WITNESS WHEREOF, the Company and Holder have caused this Addendum to Warrant to Purchase Common Stock to be signed by its duly authorized officers on the date first set forth above.

				

				

				Material Technologies, Inc.                                           La Jolla Cove Investors, Inc.

				

				By:   /s/ Robert M. Bernsteain                                       By:   /s/ Travis Huff                               

					

				Name:   Robert M. Bernstein                                        Name:   Travis Huff                              

					

				Title:  President                                                             Title:    Portfolio Manager

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