Document:

matechexh10_48.htm

    
      
        

      
Exhibit
10.48

     

    SETTLEMENT AGREEMENT AND
RELEASE

    

    THIS
SETTLEMENT AGREEMENT AND RELEASE (“Agreement”), dated as of August 28, 2008, is
by and among Material Technologies, Inc., a Delaware corporation (“MaTech”) and
Bank Julius Baer & Co. Hong Kong (“Julius Baer”) (Julius Baer shall be
referred to as the “Claimant”) (individually, a “Party”).

    

    RECITALS

    

    WHEREAS, Claimants previously
purchased directly from MaTech shares of the restricted common stock of MaTech
(the “Common Stock”), and pursuant to such agreement, MaTech agreed to certain
registration rights, including filing a registration statement registering the
resale of the shares of Common Stock by Claimant; and

    

    WHEREAS, MaTech has not filed
the required registration statement, and has requested that Claimant waive all
registration rights arising from or related to the Common Stock, and Claimant
has agreed to such request subject to the terms hereof.

    

    NOW THEREFORE, in
consideration of the promises and respective mutual agreements herein contained,
it is agreed by and between the Parties hereto as follows:

    

    1.         
    Consideration.  In
consideration for the Agreement, the receipt and adequacy of which are hereby
acknowledged, the Parties agree as follows:

    

    1.1           Claimant
hereby waives any registration rights they may have with respect to any shares
of common stock of MaTech currently held, including the Common Stock, and also
hereby waives any default by MaTech under its agreements with Claimant arising
from or related to the purchase by Claimant of the Common
Stock;

    

    1.2           Claimant
hereby agrees to return to MaTech, any and all shares of common stock held by
them, including the Common Stock, in exchange for an equal number of newly
issued shares of MaTech common stock (the “Shares”) to be issued after
completion of MaTech’s proposed stock split;

    

    1.4           Claimant
hereby agrees that any and all warrants currently held by Claimant shall be
canceled;

    

    1.5           MaTech
hereby agrees to issue to Julius Baer warrants to purchase 770,000 shares of
MaTech common stock at $0.20 per share, exercisable within 12 months of the date
hereof;

    

    1.6           MaTech
hereby agrees to issue to Anima warrants to purchase 770,000 shares of MaTech
common stock at $0.20 per share (together with the Julius Baer warrants, the
“Warrants”);

    

    1.7           MaTech
hereby agrees, within 45 days, to file a Registration Statement

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    with the
Securities and Exchange Commission registering the Shares and the shares
underlying the Warrants (the “Registration Statement”) and to use best efforts
to have the Registration Statement declared effective, but if the 144 holding
period expires, MaTech can withdraw the Registration Statement; and

    

    2.           
  Mutual
Release.  Expressly conditioned upon timely completion of the
requirements set forth herein, the Parties, each for themselves, their
respective Boards of Directors, officers, shareholders, assigns, employees,
agents, predecessors, heirs, executors, and administrators, successors,
subsidiary entities, former entities, attorneys, and any others claiming under
or through them, both past and present, do hereby release and forever discharge
each other, and each of the others' Boards of Directors, officers, shareholders,
assigns, employees, agents, predecessors, successors, heirs, executors, and
administrators, subsidiary entities, former entities, attorneys, and all others
acting by, through, under, or in concert with the other, and each of them, from
any and all manner of action or actions, cause or causes of action, in law or in
equity, suits, debts, liens, contracts (express, implied in fact, or implied by
law), agreements, promises, liabilities, claims, set offs, rights and claims for
indemnity and/or contribution, refunds, overpayments, demands, damages, losses,
costs, or expenses, of any nature whatsoever, known or unknown, suspected or
unsuspected, fixed or contingent, which each now has or may hereafter have by
reason of any matter, cause, or thing whatsoever from the beginning of time to
the date hereof, including, without limiting the generality of the foregoing,
any matters that or might have been in any way raised, by complaint,
cross-complaint or otherwise and the Agreements shall be null and void and of no
effect.  Notwithstanding the above, or any other provisions of this
instrument, this Agreement shall not affect, discharge, or release any claims,
known or unknown, which arise from or relate to the rights or obligations of the
Parties hereto, whether presently existing or subsequently accruing, with
respect to the obligations created by or arising out of the provisions of this
Agreement.

    

    3.            
 Waiver Under
California Civil Code Section 1542.  Expressly conditioned upon
timely completion of the requirements set forth herein, it is the intention of
the Parties in executing this Agreement that it shall be effective as a waiver
of any and all rights under section 1542 of the Civil Code of California, which
provides:

    

    “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

    

    Each
Party acknowledges that they may have sustained damages, losses, costs or
expenses that are presently unknown or unsuspected arising out of, relating to,
or otherwise in connection with this Action, and that such damages, losses,
costs or expenses as may have been sustained may give rise to additional
damages, losses, costs or expenses in the future.  Nevertheless, each
Party acknowledges that this Agreement has been negotiated and agreed upon in
light of this situation and expressly waives any and all rights which each may
have under section 1542 of the California Civil Code, or any other state or
federal statute or common law principle of similar effect.

     

    
      
         

      

      
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    4.             
Attorney
Advice.  Each of the Parties warrant and represent that in
executing this Agreement, such Party has relied on legal advice from the
attorney of its choice, that the terms of this release and its consequences have
been completely read and explained to such Party by that attorney, and that such
Party fully understands the terms of this Agreement.

     

    5.             
No
Representations.  Each of the Parties acknowledge and represent
that, in executing this Agreement, such Party has not relied on any inducements,
promises, or representations made by any Party or any party representing or
serving such Party, unless expressly set forth herein.

    

    6.            
 Disputed
Claim.  This Agreement pertains to a disputed claim and does
not constitute an admission of liability or wrongdoing by any Party for any
purpose.

    

    7.            
 Covenant
Regarding Assignment.  The Parties represent and warrant that
they are the sole and lawful owner of all right, title and interest in and to
every claim and other matter which each purports to release herein, and that
they have not heretofore assigned or transferred, or purported to assign or
transfer, to any person, firm, association, corporation or other entity, any
right, title or interest in any such claim or other matter.  In the
event that such representation is false, and any such claim or matter is
asserted against any Party hereto (and the successor of such Party) by any party
or entity who is the assignee or transferee of such claim or matter, the Party
shall fully indemnify, defend and hold harmless the Party against who such claim
or matter is asserted (and its successors) from and against such claim or matter
and from all actual costs, demands, fees, expenses, liabilities, and damages
which that Party (and its successors) incurs as a result of the assertion of
such claim or matter.  It is the intention of the Parties that this
indemnity does not require payment as a condition precedent to recovery by a
Party under this indemnity.

    

    8.         
    Covenant Regarding Authority
to Bind Parties.  Each Party executing this Agreement
represents and warrants to the other Party that the individual executing this
Agreement on behalf of each Party has the power and authority to execute this
Agreement and to bind the Party to the terms and conditions of this Agreement by
executing this Agreement.

    

    9.          
   Survival of
Warranties.  The representations and warranties contained in
this Agreement are deemed to and do survive the execution hereof.

    

    10.            Modifications.  This
Agreement may not be amended, canceled, revoked or otherwise modified except by
written agreement subscribed by the Parties to be charged with such
modification.

     

    11.         
  Entire
Agreement.  This Agreement sets forth the entire agreement and
understanding of the Parties hereto with respect to the transactions
contemplated hereby and supersedes all prior agreements, arrangements and
understandings related to the subject matter hereof.

    

    12.         
  Severability.  In
the event that any of the covenants herein contained shall be held unenforceable
or declared invalid for any reason whatsoever, such unenforceability or
invalidity shall not affect the enforceability or validity of the remaining
provisions of this Agreement and such unenforceable or invalid portion shall be
severable from the remainder of this Agreement.

     

    
      
         

      

      
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    13.        
   Headings. The
headings and captions used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this
Agreement.

     

    14.       
    Construction. This
Agreement has been negotiated by the Parties and their respective legal counsel
at arm’s length and thus shall be interpreted fairly in accordance with its
terms and without any strict construction in favor of or against either
Party.

     

    15.          
 Assignment.  This
Agreement shall be binding upon and inure to the benefit of the Parties hereto
and their respective successors and assigns.

     

    16.          
 Choice of
Law.  This Agreement and the rights of the Parties hereunder
shall be governed by and construed in accordance with the laws of the State of
California including all matters of construction, validity, performance, and
enforcement and without giving effect to the principles of conflict of
laws.

    

    17.        
   Jurisdiction.  The
Parties submit to the jurisdiction of the Courts of the County of Orange, State
of California or a Federal Court empaneled in the State of California for the
resolution of all legal disputes arising under the terms of this
Agreement.

    

    18.        
   Counterparts; Facsimile
Signatures.  This Agreement may be executed in several
counterparts and it shall not be necessary for each Party to execute each of
such counterparts, but when all of the Parties have executed and delivered one
of such counterparts, the counterparts, when taken together, shall be deemed to
constitute one and the same instrument, enforceable against each Party in
accordance with its terms.  The Parties hereto agree that this
Agreement may be executed by facsimile signatures and such signatures shall be
deemed originals.

    

    19.          
 Attorneys’
Fees.  In the event any Party hereto shall commence legal
proceedings against the other to enforce the terms hereof, or to declare rights
hereunder, as the result of a breach of any covenant or condition of this
Agreement, the prevailing Party in any such proceeding shall be entitled to
recover from the losing Party its costs of suit, including reasonable attorneys’
fees, as may be fixed by the court.

    

    20.           Incorporation of
Recitals.  The above recitals are incorporated into this
Agreement by this reference.

    

     

    (SIGNATURE
PAGE IMMEDIATELY FOLLOWS)

    

    

    

    

    

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement, as of
the date first written hereinabove.

     

    
      
        	
                MATERIAL TECHNOLOGIES,
      INC., 

                a
      Delaware corporation 

              	 	 	
                BANK JULIUS BAER &
      CO.

                HONG
KONG

              	 
	 	 	 	 	 
	
                /s/
      Robert M. Bernstein

              	 	 	
                 

              	 
	
                By:
      Robert M. Bernstein

              	 	 	
                By:

              	 
	
                Its:
      Chief Executive Officer 

              	 	 	
                Its:

              	 

      

       

       

       

    

    [SETTLEMENT
AGREEMENT AND RELEASE SIGNATURE PAGE]

    

    

     

     

     

    
 

    

    
      
         

      

      
        5matechexh10_49.htm

    
      
        

      
Exhibit
10.49

    

    THE
SECURITIES REPRESENTED BY THIS DOCUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”), OR THE SECURITIES LAWS OF ANY
STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE
144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION
OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE
REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM
REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

     

     

    WARRANT
AGREEMENT

     

    MATERIAL
TECHNOLOGIES, INC.,

    a
Delaware corporation (the “Company”)

    

    THIS IS
TO CERTIFY that, for value received, RBC Dexia Investor Services Bank
Luxembourg, or its assigns (the “Holder”) is entitled, subject to the terms and
conditions set forth herein, to purchase, 5,000,000 shares of Class A common
stock of the Company (the “Warrant Shares”) upon exercise at a purchase price of
$0.20 per Warrant Share (the “Warrant Price”).

    

    1.      TERM.  Subject
to the terms of this Warrant, the Holder shall have the right, at any time
during the period commencing at 9:00 a.m., Pacific Time, on the 19th day of
August, 2008 and ending at 5:00 p.m., Pacific Time, on the 18th day of August,
2009 (the “Termination Date”), to purchase from the Seller the Warrant Shares
upon payment to the Seller of the Warrant Price.

    

    Notwithstanding
anything to the contrary contained in this Warrant or otherwise, the Holder
shall not be required, although it shall have the right, to exercise this
Warrant.

    

    2.      MANNER OF
EXERCISE.  Payment of the aggregate Warrant Price shall be made
as described below.  Upon the payment of all or a portion of the
Warrant Price and delivery of the Election to Purchase, a form of which is
attached hereto, the Company shall issue and cause to be delivered with all
reasonable dispatch to or upon the written order of the Holder, and in such name
or names as the Holder may designate, a certificate or certificates for the
number of full Warrant Shares so purchased upon each exercise of the
Warrant.  Such certificate or certificates shall be deemed to have
been issued and any person so designated to be named therein shall be deemed to
have become a holder of record of such securities as of the date of surrender of
the Warrant (or if less than the entire Warrant is exercised, upon the delivery
of the new Warrant described below) and payment of the Warrant Price, as
aforesaid, notwithstanding that the certificate or certificates representing
such securities shall not actually have been delivered or that the stock
transfer books of the Company shall then be closed.  The Warrant shall
be exercisable, at the election of each Holder, either in full or from time to
time in part and, in the

    
      
         

      

      
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    event
that a certificate evidencing the Warrant is exercised in respect of less than
all of the Warrant Shares specified therein at any time prior to the Termination
Date, a new certificate evidencing the remaining portion of the Warrant shall be
issued by the Company to such Holder.

    

    Payment
of the Warrant Price may be made by either of the following forms, or a
combination thereof:

    

    (i)           Cash
Exercise: cash, bank or cashiers check, or wire transfer payable to the
Company; or

    

    (ii)           Promissory
Note: through a promissory note payable to the Company, but only to the
extent authorized by the Company, and which authorization may be withheld for
any reason whatsoever.

    

    3.      NO STOCKHOLDER
RIGHTS.  Unless and until this Warrant is exercised, this
Warrant shall not entitle the Holder hereof to any voting rights or other rights
as a stockholder of the Company, or to any other rights whatsoever except the
rights herein expressed, and, no dividends shall be payable or accrue in respect
of this Warrant.

    

    4.      EXCHANGE.  This
Warrant is exchangeable upon the surrender hereof by the Holder to the Company
for new Warrants of like tenor representing in the aggregate the right to
purchase the number of securities purchasable hereunder, each of such new
Warrants to represent the right to purchase such number of securities as shall
be designated by the Holder at the time of such surrender.

    

    Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant, and, in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it and
reimbursement to the company of all reasonable expenses incidental thereto, and
upon surrender and cancellation hereof, if mutilated, the Company will make and
deliver a new warrant of like tenor and amount, in lieu hereof.

    

    5.      ELIMINATION OF FRACTIONAL
INTERESTS.  The Company shall not be required to issue
certificates representing fractions of securities upon the exercise of this
Warrant, nor shall it be required to issue scrip or pay cash in lieu of
fractional interests.  All fractional interests shall be eliminated by
rounding any fraction up to the nearest whole number of securities, properties
or rights receivable upon exercise of this Warrant.

    

    6.      RESERVATION AND LISTING OF
SECURITIES.  The Company shall at all times reserve and keep
available out of its authorized shares of common stock or other securities,
solely for the purpose of issuance upon the exercise of this Warrant, such
number of shares of common stock or other securities, properties or rights as
shall be issuable upon the exercise hereof.  The Company covenants and
agrees that, upon exercise of this Warrant and payment of the Warrant Price, all
shares of common stock and other securities issuable upon such exercise shall be
duly and validly issued, fully paid, non-assessable and not subject to the
preemptive rights of any stockholder.

    

    8.      NOTICE.  Any
notice, request, instruction, or other document required by the

    
      
         

      

      
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    terms of
this Warrant, or deemed by any of the Parties hereto to be desirable, to be
given to any other party hereto shall be in writing and shall be given by
personal delivery, overnight delivery, mailed by registered or certified mail,
postage prepaid, with return receipt requested, or sent by facsimile
transmission to the addresses of the Parties as follows:

     

    
      	
               
      

            	
              i.

            	
              To:

            	
              “Company”

            	
              Material
      Technologies, Inc.

              Attn:
      Robert M. Bernstein, Chief Executive Officer

              11661
      San Vicente Boulevard, Suite 707

              Los
      Angeles, California 90049

              Fax:
      (310) 473-3177

            
	 	 	 	 	 
	 	ii.	To:	“Holder”	RBC
      Dexia Investor Services Bank Luxembourg 

              ____________________________________

              ____________________________________

              ____________________________________

              Fax:_________________________________

            

    

     

    The
persons and addresses set forth above may be changed from time to time by a
notice sent as aforesaid.  If notice is given by personal delivery or
overnight delivery in accordance with the provisions of this Section, such
notice shall be conclusively deemed given at the time of such delivery provided
a receipt is obtained from the recipient.  If notice is given by mail
in accordance with the provisions of this Section, such notice shall be
conclusively deemed given upon receipt and delivery or refusal.  If
notice is given by facsimile transmission in accordance with the provisions of
this Section, such notice shall be conclusively deemed given at the time of
delivery if during business hours and if not during business hours, at the next
business day after delivery, provided a confirmation is obtained by the
sender.

    

    9.      GOVERNING
LAW.  This Warrant shall be governed, construed and interpreted
under the laws of the state of California, without giving effect to the rules
governing conflicts of law.

    

    10.    EXCLUSIVE JURISDICTION AND
VENUE.  The Parties agree that the Courts of the County of
Orange, State of California shall have sole and exclusive jurisdiction and venue
for the resolution of all disputes arising under the terms of this Agreement and
the transactions contemplated herein.

    

    11.    SUCCESSORS.  All
the covenants and provisions of this Warrant shall be binding upon and inure to
the benefit of the Company, the Holder and their respective legal
representatives, successors and assigns.

    

    12.    ATTORNEYS’
FEES.  If any legal action or any other proceeding, including
any action for declaratory relief, is brought for the interpretation or
enforcement of this Warrant, the prevailing party shall be entitled to recover
reasonable attorneys’ fees and other costs incurred in that action or
proceeding, in addition to any other relief to which it may be
entitled.  “Prevailing Party” shall include without limitation (a) a
Party who dismisses an action in exchange for sums allegedly due; (b) the Party
who receives performance from the other Party of an alleged breach or a desired
remedy that is substantially equivalent to the relief sought in an action or
proceeding;

    
      
         

      

      
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    or (c)
the Party determined to be the prevailing Party by an arbitrator or a court of
law.

    

    13.    NOTICE OF RIGHT TO
COUNSEL.  Each of the Parties has had the opportunity to, and
has had, this Warrant reviewed by their respective attorney.  Each of
the Parties affirms to the other that they have apprised themselves of all
relevant information giving rise to this Warrant and has consulted and discussed
with their independent advisors the provisions of this Warrant and fully
understands the legal consequences of each provision.  Each Party
further affirms to the other that they have not, and do not, rely upon any
representation of advice from the other or from the other Parties’
counsel.

    

    14.    REPRESENTATIONS OF
HOLDER.

    

    (a)           Holder
has adequate means of providing for current needs and contingencies, has no need
for liquidity in the investment, and is able to bear the economic risk of an
investment in the Warrant Shares offered by Company of the size
contemplated.  Holder represents that Holder is able to bear the
economic risk of the investment and at the present time could afford a complete
loss of such investment.  Holder has had a full opportunity to inspect
the books and records of the Company and to make any and all inquiries of
Company officers and directors regarding the Company and its business as Holder
has deemed appropriate.

     

    (b)           Holder
is an “Accredited Investor” as defined in Regulation D of the Securities Act of
1933 (the “Act”) or Holder, either alone or with Holder’s professional advisers
who are unaffiliated with, have no equity interest in and are not compensated by
Company or any affiliate or selling agent of Company, directly or indirectly,
has sufficient knowledge and experience in financial and business matters that
Holder is capable of evaluating the merits and risks of an investment in the
Warrant Shares offered by Company and of making an informed investment decision
with respect thereto and has the capacity to protect Holder’s own interests in
connection with Holder’s proposed investment in the Warrant Shares.

     

    (c)           Holder
is acquiring the Warrant Shares solely for Holder’s own account as principal,
for investment purposes only and not with a view to the resale or distribution
thereof, in whole or in part, and no other person or entity has a direct or
indirect beneficial interest in such Warrant Shares.

     

    (d)           Holder
will not sell or otherwise transfer the Warrant Shares without registration
under the Act or an exemption therefrom and fully understands and agrees that
Holder must bear the economic risk of Holder's purchase for an indefinite period
of time because, among other reasons, the Warrant Shares have not been
registered under the Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Act and under the applicable
securities laws of such states or unless an exemption from such registration is
available.

    

    

      
        
           

        

        
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    IN
WITNESS WHEREOF, intending to be legally bound, the Parties hereto have
executed this Warrant Agreement on the 29th day of August,
2008.

     

    
       

      
        	COMPANY:	 	 	HOLDER:	 
	 	 	 	 	 
	
                MATERIAL TECHNOLOGIES,
      INC., 

                a
      Delaware corporation

              	 	 	
                RBC DEXIA INVESTOR
      SERVICES

                BANK
      LUXEMBOURG,

              	 
	 	 	 	 	 
	
                 

              	 	 	
                 

              	 
	
                By:
      Robert M. Bernstein

              	 	 	
                By:

              	 
	
                Its:
      Chief Executive Officer

              	 	 	
                Its:

              	 

      

    

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
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    FORM
OF ELECTION TO PURCHASE

    

    The
undersigned, a Holder of the attached Warrant, hereby irrevocably elects to
exercise the purchase right represented by the attached Warrant Agreement for,
and to purchase shares of common stock of Material Technologies, Inc., a
Delaware corporation and herewith makes payment of $__________ therefor, and
requests that the certificates for such securities be issued in the name of, and
delivered to ________________________, whose address is
_______________________________________.

    

    

    
      
        	Dated:__________________________ 	Signature	 
	 	 	 
	
                 

              	 	 
	 	
                (Signature
      must conform in all respects to name 

                of
      Holder of such partial interest as specified on the 

                face
      of the Warrant Certificate)

              	 
	 	 	 
	 	 	 
	 	
                (Insert
      Social Security or Other

                Identifying
      Number of Holder)

              	 

      

    

     

     

     

     

     

     

     

    

      
        
           

        

        
          6

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