Amended
and Restated Employment Agreement


 


This
Amended and Restated Employment Agreement (the “Agreement”) is made and entered into as of the 15th day of
June, 2016, by and between Stephen B. Squires (the “Executive”) and Quantum Materials Corp., a Nevada corporation
(the “Company”) (collectively, the “Parties”).


 


WHEREAS,
the Company desires to employ the Executive on the terms and conditions set forth in this Agreement;


 


WHEREAS,
the Executive desires to be employed by the Company on the terms and conditions set forth in this Agreement; and


 


WHEREAS,
the Company and Executive had previously entered into an Amended and Restated Employment Agreement dated November 17, 2015 (the
“Initial Employment Agreement”), and


 


WHEREAS,
the Executive and the Company have entered into a separate Restricted Stock Award Agreement, which shall remain in full force
and effect after the Parties execute this Agreement, and which shall survive the termination of this Agreement for any reason,
notwithstanding any other term in this Agreement.


 


NOW,
THEREFORE, in consideration of the mutual covenants, promises and obligations set forth in this Agreement, and other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:


 


1.Term
of this Agreement. This Agreement shall commence as of the 30th day of June, 2016, (the “Effective Date”)
and shall continue, subject to the terms of this Agreement, until the 30th day of June, 2018 unless either party terminates Executive’s
employment as set forth in this Agreement (the “Employment Term”). This Agreement replaces, amends, and restates
the Initial Employment Agreement between Executive and the Company. The Executive or the Company may terminate this Agreement
and the employment relationship at any time and for any reason (by providing thirty (30) days’ advanced written notice to
the other party). The Executive shall, however, be entitled to receive compensation upon termination of employment under certain
circumstances as set forth below in Section 5.


 


2.Position
and Duties.


 


2.1Position
and Responsibilities. During the Employment Term, the Executive shall have the title Founder of the Company and shall serve
as the Managing Director of Solterra Renewable Technologies, Inc., a wholly-owned subsidiary of the Company (“Solterra”),
reporting to the board of directors (the “Board”). In addition, the Executive shall serve as the Chief Executive
Officer of Quantum Materials Asia Co. Ltd. (“Quantum Asia”). In those capacities, the Executive shall (i) be
responsible for the sales and research and development affairs of the Solterra and Quantum Asia; (ii) perform any services, duties
or responsibilities consistent with the Executive’s position; and (iii) perform such services, duties and responsibilities,
as shall be determined from time-to-time by the Board or as may otherwise be required to effectively perform the Executive’s
position. As part of the Company’s strategy to list the company on the NASDAQ Stock Exchange, the Executive resigns his
seat on the Company’s Board as of the Effective Date. The Company agrees that the Board will provide due consideration for
one or more candidates for a Board seat nominated by the Executive. The Executive may from time-to-time be required to travel
within the United States and overseas in the performance of the Executive’s services, duties and responsibilities, and will
be obliged to travel to such locations as the Company, the Board, or the performance of the Executive’s services, duties,
and responsibilities reasonably require, with the costs of such travel to be paid by the Company in accordance with the Company’s
travel reimbursement policies, as amended from time to time.


 




    	 	 	 



     

    


 


2.2Full-Time
and Energy Devoted to Executive’s Employment. During the Employment Term, the Executive shall (i) devote substantially
all of the Executive’s business time, attention, skill, and energy to the business of Solterra and Quantum Asia and the
performance of the Executive’s services, duties and responsibilities under this Agreement; (ii) use the Executive’s
best efforts, skill and knowledge in the performance of the Executive’s services, duties and responsibilities and to promote
the success of the Company’s, Solterra’s and Quantum Asia’s business; (iii) serve the Company’s, Solterra’s
and Quantum Asia’s interests faithfully, efficiently and diligently; (iv) put in whatever time, energy or attention is necessary
to accomplish the Executive’s duties and expectations; (v) cooperate with the reasonable and lawful directives of the Board
in the furtherance of the best interests of the Company; and (vi) comply with the Company’s policies and procedures as well
as all applicable laws, rules and regulations.


 


2.3Executive
is Not Currently Bound by a Conflicting Agreement. The Executive and the Company jointly agree and stipulate that the execution
and delivery of this Agreement by the Executive and the performance by the Executive of Executive’s services, duties and
responsibilities under this Agreement does not and shall not constitute a breach of, or otherwise contravene, the terms of any
other non-compete agreement, employment agreement or other agreement or policy to which the Executive is a party or otherwise
bound.


 


2.4No
Engagement in Conflicting Obligations. The Executive shall not engage in any other new business, profession or occupation
for compensation or otherwise which would conflict or interfere with the Executive’s performance or ability to perform the
Executive’s services, duties and responsibilities under this Agreement.


 


Notwithstanding
the foregoing, the Executive will be permitted to (i) with the prior written consent of the Board (which consent will not
be unreasonably withheld or delayed) act or serve as a director, trustee, committee member or principal of any type of business,
civic or charitable organization as long as such activities are disclosed in writing to the Company’s Chief Executive Officer
in accordance with the Company’s Employee Handbook, and (ii) purchase or own less than five percent (5%) of the publicly
traded securities of any corporation; provided that, such ownership represents a passive investment and that the Executive is
not a controlling person of, or a member of a group that controls, such corporation; provided further that, the activities described
in clauses (i) and (ii) of this Section 3.4 do not interfere with the performance of the Executive’s services, duties and
responsibilities under this Agreement. The Parties acknowledge and stipulate by agreement, that Executive’s contemplated
positions and work with Solterra and Quantum Asia do not constitute a conflict with the Company.


 


3.Place
of Performance. The principal place of Executive’s employment shall be in San Marcos, TX. Executive may be required
to travel on Company business during the Employment Term.


 


4.Compensation.


 


4.1Base
Salary. Until such time as the Company records its first $10,000,000 in revenue (the “Revenue Trigger”), the Company
shall pay the Executive an annual rate of base salary of no less than $225,000.00; after the occurrence of the Revenue Trigger,
the Company shall pay the Executive an annual rate of base salary of no less than $247,500.00; in either case in periodic installments
in accordance with the Company’s customary payroll practices, but no less frequently than monthly. The Executive’s
annual base salary, as in effect from time to time, shall be referred to in this Agreement as “Base Salary”.


 




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4.2Annual
Bonuses. Executive shall be eligible for an annual bonus based on personal performance and/or Company performance metrics
to be determined by the Company and Executive on an annual basis (“Target Bonus”). Equity Awards. The
Company has previously granted the Executive right to purchase shares of the Company’s common stock (“Option”),
$0.001 par value per share, pursuant to the Company’s 2013 Employee Benefit and Consulting Services Compensation Plan (“Equity
Plan”). All other terms and conditions of such awards shall be governed by the terms and conditions of the Equity Plan
and the applicable Grant of Option agreement.


 


4.3Employee
Benefits. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans, practices
and programs maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”),
on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent
with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel
any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable
law.


 


4.4Vacation.
During the Employment Term, the Executive shall be entitled to four weeks of paid vacation days per calendar year (prorated for
partial years) in accordance with the Company’s vacation policies, as in effect from time to time.


 


4.5Business
Expenses. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment
and travel expenses incurred by the Executive in connection with the performance of the Executive’s duties hereunder in
accordance with the Company’s expense reimbursement policies and procedures.


 


4.6Indemnification.
In the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil,
criminal, administrative or investigative (a “Proceeding”), other than any Proceeding initiated by the Executive
or the Company related to any contest or dispute between the Executive and the Company or any of its affiliates with respect to
this Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive is or was a director or
officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer,
member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, the Executive shall
be indemnified and held harmless by the Company to the maximum extent permitted under applicable law from and against any liabilities,
costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’
fees). Costs and expenses incurred by the Executive in defense of such Proceeding (including attorneys’ fees) shall be paid
by the Company in advance of the final disposition of such litigation upon receipt by the Company of: (i) a written request for
payment; (ii) appropriate documentation evidencing the incurrence, amount and nature of the costs and expenses for which payment
is being sought; and (iii) an undertaking adequate under applicable law made by or on behalf of the Executive to repay the amounts
so paid if it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company under this Agreement.
The Company shall secure and maintain insurance covering its contractual indemnity obligations set forth herein, and shall separately
secure and maintain directors and officers liability insurance coverage pursuant to which Executive shall be covered as a named
or additional assured.


 


4.7Clawback
Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any
other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company which
is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions
and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or
any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).


 




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5.Termination
of Employment. The Employment Term and the Executive’s employment hereunder may be terminated by either the Company
or the Executive at any time and for any reason; provided that, unless otherwise provided herein, either party shall be required
to give the other party at least thirty (30) days advance written notice of any termination of the Executive’s employment.
Upon termination of the Executive’s employment during the Employment Term, the Executive shall be entitled to the compensation
and benefits described in this Section  5 and shall have no further rights to any compensation or any other benefits
from the Company or any of its affiliates. 


 


5.1For
Cause or Without Good Reason.


 


(a)The
Executive’s employment hereunder may be terminated by the Company for Cause or by the Executive without Good Reason. If
the Executive’s employment is terminated by the Company for Cause or by the Executive without Good Reason, the Executive
shall be entitled to receive:


 


	 	(i)	any
    accrued but unpaid Base Salary and accrued but unused vacation, which shall be paid within one (1) week following the Termination
    Date (as defined below); 
	 	 	 
	 	(ii)	reimbursement
    for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance with
    the Company’s expense reimbursement policy; and
	 	 	 
	 	(iii)	such
    employee benefits (including equity compensation), if any, as to which the Executive may be entitled under the Company’s
    employee benefit plans as of the Termination Date; provided that, in no event shall the Executive be entitled to any payments
    in the nature of severance or termination payments except as specifically provided herein.
	 	 	 
	 	 	Items
    5.1(a)(i) through 5.1(a)(iii) are referred to herein collectively as the “Accrued Amounts”.


 


(b)For
purposes of this Agreement, “Cause” shall mean:


 


	 	(i)	the
    Executive’s willful and repeated failure to perform his duties (other than any such failure resulting from incapacity
    due to physical or mental illness);
	 	 	 
	 	(ii)	the
    Executive’s willful and repeated failure to comply with any valid and legal directive of the Board;
	 	 	 
	 	(iii)	the
    Executive’s intentional engagement in dishonesty, illegal conduct or gross misconduct, which is, in each case, materially
    injurious to the Company or its affiliates;
	 	 	 
	 	(iv)	the
    Executive’s embezzlement, intentional misappropriation or fraud, whether or not related to the Executive’s employment
    with the Company;


 




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	 	(v)	the
    Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state
    law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;
	 	 	 
	 	(vi)	the
    Executive’s willful and repeated violation of a material policy of the Company;
	 	 	 
	 	(vii)	the
    Executive’s willful unauthorized disclosure of Confidential Information (as defined below); or
	 	 	 
	 	(viii)	the
    Executive’s knowing and intentional material breach of any material obligation under this Agreement or any other written
    agreement between the Executive and the Company.


 


For
purposes of this provision, no act or failure to act on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action
or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted
to be done, by the Executive in good faith and in the best interests of the Company.


 


In
the event of conduct the Company contends Executive has engaged in conduct described in (i), (ii), (vi), (vii) or (viii) above,
termination of the Executive’s employment shall not be deemed to be for Cause unless the Company gives Executive notice
of the specific conduct at issue in writing and a reasonable opportunity to cure same, after which, if the Company contends it
remains uncured, the Company must deliver to the Executive a copy of a resolution duly adopted by the affirmative vote of not
less than a majority of the Board finding in good faith that there is Cause to terminate Executive’s employment.


 


(c)For
purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following, in each case during
the Employment Term without the Executive’s written consent:


 


	 	(i)	a
    material reduction in the Executive’s Base Salary;
	 	 	 
	 	(ii)	a
    relocation of the Executive’s principal place of employment by more than ten (10) miles, except for required travel
    on Company business to an extent substantially consistent with the Executive’s business travel obligations as of the
    date of relocation;
	 	 	 
	 	(iii)	any
    material breach by the Company of any material provision of this Agreement or any material provision of any other agreement
    between the Executive and the Company;
	 	 	 
	 	(iv)	the
    Company’s failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement
    in the same manner and to the same extent that the Company would be required to perform if no succession had taken place,
    except where such assumption occurs by operation of law;
	 	 	 
	 	(v)	a
    material adverse change in the Executive’s title, authority, duties or responsibilities (other than temporarily while
    the Executive is physically or mentally incapacitated or as required by applicable law); or
	 	 	 
	 	(vi)	a
    material adverse change in the reporting structure applicable to the Executive.


 




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The
Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence
of the circumstances providing grounds for termination for Good Reason within sixty (60) days of the initial existence of such
grounds and the Company has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances,
if curable. If the Executive does not terminate his employment for Good Reason within one hundred twenty (120) days after the
first occurrence of the applicable grounds, then the Executive will be deemed to have waived his right to terminate for Good Reason
with respect to such grounds.


 


Notwithstanding
the foregoing, in the event that a Change in Control (as defined below) occurs during the Employment Term, the Executive may terminate
his employment for any reason during the thirty (30) day period following the Change in Control and such termination shall be
deemed to be for Good Reason.


 


5.2Without
Cause or for Good Reason. The Employment Term and the Executive’s employment hereunder may be terminated by the Executive
for Good Reason or by the Company without Cause. In the event of such termination, the Executive shall be entitled to receive
the Accrued Amounts and subject to the Executive’s compliance with Section  6, Section  7 and
Section  8 of this Agreement and his execution of a release of claims in favor of the Company, its affiliates and
their respective officers and directors in a form provided by the Company (the “Release”) and such Release
becoming effective within fifty-two (52) days following the Termination Date (such within fifty-two (52) day period, the “Release
Execution Period”), the Executive shall be entitled to receive the following: 


 


(a)a
lump sum payment equal to the sum of the Executive’s Base Salary for the remaining period of the Employment Term, which
shall be paid within seven (7) days following the effective date of the Release;


 


(b)If
the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”),
the Company shall pay the full premium to insure Executive and his dependents until the earliest of: (i) the eighteen-month anniversary
of the Termination Date; (ii) the date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the
date on which the Executive becomes eligible to receive substantially similar coverage from another employer.


 


(c)To
the extent any equity granted to Executive that is subject to time vesting is not already vested as of the Termination Date, all
unvested equity shall immediately vest and all restrictions on the transferability of such equity shall be lifted on the Termination
Date.


 


5.3Death
or Disability.


 


(a)The
Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the Employment Term,
and the Company may terminate the Executive’s employment on account of the Executive’s Disability.


 


(b)If
the Executive’s employment is terminated during the Employment Term on account of the Executive’s death or Disability,
the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the Accrued
Amounts and the following:


 


	 	(i)	if
    before the Revenue Trigger, a lump sum payment equal to two times the sum of the Executive’s Base Salary and Target
    Bonus for the year in which the Termination Date occurs, and if after the Revenue Trigger, one times the sum of the Executive’s
    Base Salary and Target Bonus for the year in which the Termination Date occurs, which in either case shall be paid within
    seven (7) days following the Termination Date; 


 




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	 	(ii)	If
    the Executive’s family timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation
    Act of 1985 (“COBRA”), the Company shall pay the full premium to insure his spouse and dependents until
    the eighteen-month anniversary of the Termination Date. 
	 	 	 
	 	(iii)	To
    the extent any equity granted to Executive that is subject to time vesting is not already vested as of the Termination Date,
    all unvested equity shall immediately vest and all restrictions on the transferability, subject to SEC Rule 144, of such equity
    shall be lifted on the Termination Date. 


 


(c)For
purposes of this Agreement, Disability shall mean the Executive’s inability, due to physical or mental incapacity, to substantially
perform his duties and responsibilities under this Agreement for one hundred eighty (180) days out of any three hundred sixty-five
(365) day period. Any question as to the existence of the Executive’s Disability as to which the Executive and the Company
cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the
Company. If the Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician
and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made
in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.


 


5.4Change
in Control Termination.


 


(a)Notwithstanding
any other provision contained herein, if the Executive’s employment hereunder is terminated by the Executive for Good Reason
or by the Company without Cause (other than on account of the Executive’s death or Disability), in each case within twelve
(12) months following a Change in Control, the Executive shall be entitled to receive the Accrued Amounts and subject to the Executive’s
compliance with Section  6, Section  7 and Section  8 of this Agreement and his execution
of a Release which becomes effective within fifty-two (52) days following the Termination Date, the Executive shall be entitled
to receive a lump sum payment equal to the remainder of the Executive’s Base Salary for the unexpired Employment Term, which
shall be paid within seven (7) days following the effective date of the Release, and to the extent any equity granted to Executive
that is subject to time vesting is not already vested as of the Termination Date, all unvested equity shall immediately vest and
all restrictions on the transferability of such equity shall be lifted on the Termination Date. 


(b)If
the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”),
the Company shall pay the full premium to insure Executive and his dependents until the earliest of: (i) the eighteen-month anniversary
of the Termination Date; (ii) the date the Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the
date on which the Executive becomes eligible to receive substantially similar coverage from another employer.


 


(c)For
purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the following:


 


	 	(i)	one
    person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock
    held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power
    of the stock of such corporation; provided that, a Change in Control shall not occur if any person (or more than one person
    acting as a group) owns more than fifty percent (50%) of the total fair market value or total voting power of the Company’s
    stock and acquires additional stock;


 




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	 	(ii)	one
    person (or more than one person acting as a group) acquires (or has acquired during the twelve-month period ending on the
    date of the most recent acquisition) ownership of the Company’s stock possessing twenty-five percent (25%) or more of
    the total voting power of the stock of such corporation;
	 	 	 
	 	(iii)	a
    majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election
    is not endorsed by a majority of the Board before the date of appointment or election; or
	 	 	 
	 	(iv)	the
    sale of all or substantially all of the Company’s assets.


 


5.5Notice
of Termination. Any termination of the Executive’s employment hereunder by the Company or by the Executive during the
Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive’s death) shall be communicated
by written notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section
 25. The Notice of Termination shall specify: 


 


(a)The
termination provision of this Agreement relied upon;


 


(b)To
the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated; and


 


(c)The
applicable Termination Date.


 


5.6Termination
Date. The Executive’s Termination Date shall be:


 


(a)If
the Executive’s employment hereunder terminates on account of the Executive’s death, the date of the Executive’s
death;


 


(b)If
the Executive’s employment hereunder is terminated on account of the Executive’s Disability, the date that it is determined
that the Executive has a Disability;


 


(c)If
the Company terminates the Executive’s employment hereunder for Cause, the date the Notice of Termination is delivered to
the Executive;


 


(d)If
the Company terminates the Executive’s employment hereunder without Cause, the date specified in the Notice of Termination,
which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered; and


 


(e)If
the Executive terminates his employment hereunder with or without Good Reason, the date specified in the Executive’s Notice
of Termination, which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered.


 


Notwithstanding
anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a “separation
from service” within the meaning of Section 409A.


 




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5.7Resignation
of All Other Positions. Upon termination of the Executive’s employment hereunder for any reason, the Executive shall
be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof)
of the Company.


 


5.8IRS
Section 280G.


 


(a)If
any of the payments or benefits received or to be received by the Executive (including, without limitation, any payment or benefits
received in connection with a Change in Control or the Executive’s termination of employment, whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein
as the “280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the
Code and would, but for this Section 5.8, be subject to the excise tax imposed under Section 4999 of the Code (the “Excise
Tax”), then such 280G Payments shall be reduced in a manner determined by the Company (by the minimum possible amounts)
that is consistent with the requirements of Section 409A until no amount payable to the Executive will be subject to the Excise
Tax. If two economically equivalent amounts are subject to reduction but are payable at different times, the amounts shall be
reduced (but not below zero) on a pro rata basis.


 


(b)All
calculations and determinations under this Section 5.8 shall be made by an independent accounting firm or independent tax counsel
appointed by the Company (the “Tax Counsel”) whose determinations shall be conclusive and binding on the Company
and the Executive for all purposes. For purposes of making the calculations and determinations required by this Section 5.8, the
Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section
4999 of the Code. The Company and the Executive shall furnish the Tax Counsel with such information and documents as the Tax Counsel
may reasonably request in order to make its determinations under this Section 5.8. The Company shall bear all costs the Tax Counsel
may reasonably incur in connection with its services.


 


6.Confidential
Information. The Executive understands and acknowledges that during the Employment Term, he will have access to and learn
about Confidential Information, as defined below.


 


6.1Confidential
Information Defined.


 


(a)Definition.
For purposes of this Agreement, “Confidential Information” includes, but is not limited to, all information
not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly
to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies,
techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations,
know-how, trade secrets, computer programs, computer software, applications, operating systems, software design, web design, work-in-process,
databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial
information, results, accounting information, accounting records, legal information, marketing information, advertising information,
pricing information, credit information, design information, payroll information, staffing information, personnel information,
employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings,
sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs,
styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries,
experimental processes, experimental results, specifications, customer information, customer lists, client information, client
lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Company or any of its affiliates, including
but not limited to, Solterra and Quantum Asia or each its businesses, or of any other person or entity that has entrusted information
to the Company in confidence.


 




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The
Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information
that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to
be confidential or proprietary in the context and circumstances in which the information is known or used.


 


The
Executive understands and agrees that Confidential Information includes information developed by him in the course of his employment
by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential
Information shall not include information that is known to him before joining the Company or generally available to and known
by the public at the time of disclosure to the Executive; provided that, such disclosure is through no direct or indirect fault
of the Executive or person(s) acting on the Executive’s behalf.


 


(b)Company
Creation and Use of Confidential Information. The Executive understands and acknowledges that the Company has invested, and
continues to invest, substantial time, money and specialized knowledge into developing its resources, creating a customer base,
generating customer and potential customer lists, training its employees, and improving its offerings in the field of information
technology. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues
to use and create Confidential Information. This Confidential Information provides the Company with a competitive advantage over
others in the marketplace.


 


(c)Disclosure
and Use Restrictions. The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential;
(ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be
disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees
of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business
of the Company and, in any event, not to anyone outside of the direct employ of the Company, except as required in the performance
of the Executive’s authorized employment duties to the Company or with the prior consent of Chief Executive Officer acting
on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of
such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records,
files, media or other resources containing any Confidential Information, or remove any such documents, records, files, media or
other resources from the premises or control of the Company, except as required in the performance of the Executive’s authorized
employment duties to the Company or with the prior consent of Chief Executive Officer acting on behalf of the Company in each
instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing
herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation,
or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure
does not exceed the extent of disclosure required by such law, regulation or order. The Executive shall promptly provide written
notice of any such order to Chief Executive Officer.


 


The
Executive understands and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information
shall commence immediately upon the Executive first having access to such Confidential Information (whether before or after he
begins employment by the Company) and shall continue during and after his employment by the Company until such time as such Confidential
Information has become public knowledge other than as a result of the Executive’s breach of this Agreement or breach by
those acting in concert with the Executive or on the Executive’s behalf.


 




    	 	10	 



     

    


 


7.Restrictive
Covenants.


 


7.1Acknowledgment.
The Executive understands that the nature of the Executive’s position gives him access to and knowledge of Confidential
Information and places him in a position of trust and confidence with the Company.


 


The
Executive further understands and acknowledges that the Company’s ability to reserve these for the exclusive knowledge and
use of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure
by the Executive is likely to result in unfair or unlawful competitive activity.


 


7.2Non-competition.
Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered
to the Executive, during the Employment Term and for the two (2) years, to run consecutively, beginning on the last day of the
Executive’s employment with the Company, for any reason or no reason and whether employment is terminated at the option
of the Executive or the Company, the Executive agrees and covenants not to engage in Prohibited Activity within the United States
of America.


 


For
purposes of this Section 7, “Prohibited Activity” is activity in which the Executive contributes his
knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant,
agent, employee, partner, director, stockholder, officer, volunteer, intern or any other similar capacity to an entity engaged
in the same or similar business as the Company, i.e. nanotechnology primarily involving quantum dots. Prohibited Activity also
includes activity that may require or inevitably requires disclosure of trade secrets, proprietary information or Confidential
Information about the Company’s quantum dots technology.


 


Nothing
herein shall prohibit the Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of
any corporation, provided that such ownership represents a passive investment and that the Executive is not a controlling person
of, or a member of a group that controls, such corporation.


 


This
Section 7 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such
rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent
jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation
or order. The Executive shall promptly provide written notice of any such order to Chief Executive Officer.


 


7.3Non-solicitation
of Employees. The Executive agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or
recruit, or induce the termination of employment of any employee of the Company, Solterra or Quantum Asia during two (2) years,
to run consecutively, beginning on the last day of the Executive’s employment with the Company.


 


7.4Non-solicitation
of Customers. The Executive understands and acknowledges that because of the Executive’s experience with and relationship
to the Company, Solterra and Quantum Asia, he will have access to and learn about much or all of the Company’s, Solterra’s
and Quantum Asia’s Customer Information. “Customer Information” includes, but is not limited to, names,
phone numbers, addresses, e-mail addresses, order history, order preferences, chain of command, pricing information and other
information identifying facts and circumstances specific to the customer and relevant to services.


 




    	 	11	 



     

    


 


The
Executive understands and acknowledges that loss of this customer relationship and/or goodwill will cause significant and irreparable
harm.


 


The
Executive agrees and covenants, during two (2) years, to run consecutively, beginning on the last day of the Executive’s
employment with the Company, not to directly or indirectly solicit, contact (including but not limited to e-mail, regular mail,
express mail, telephone, fax, and instant message), attempt to contact or meet with the Company’s, Solterra’s or Quantum
Asia’s current customers for purposes of offering or accepting goods or services similar to or competitive with those offered
by the Company.


 


8.Non-disparagement.
The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any
public forum any defamatory remarks, comments or statements concerning the Company, Solterra, Quantum Asia or their businesses,
or any of their employees, officers, and existing and prospective customers, suppliers, investors and other associated third Parties.


 


This
Section 8 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such
rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent
jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation
or order. The Executive shall promptly provide written notice of any such order to the Chief Executive Officer.


 


9.Acknowledgement.
The Executive acknowledges and agrees that the services to be rendered by him to the Company are of a special and unique character;
that the Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business and marketing
strategies by virtue of the Executive’s employment; and that the restrictive covenants and other terms and conditions of
this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company.


 


The
Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Company’s
rights under Section  6, Section  7 and Section  8 of this Agreement; that he has no
expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection
herewith; that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions of Section
 6, Section  7 and Section  8 of this Agreement or the Company’s enforcement thereof.


 


10.Remedies.
In the event of a breach or threatened breach by the Executive of Section  6, Section  7 or Section
 8 of this Agreement, the Executive hereby consents and agrees that the Company shall be entitled to seek, in addition
to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach
from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not
afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief
shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.


 




    	 	12	 



     

    


 


11.Proprietary
Rights in Intellectual Property.


 


11.1Work
Product. The Executive acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries,
ideas and other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived
or reduced to practice by the Executive individually or jointly with others during the period of his employment by the Company
and relating in any way to the business or contemplated business, research or development of Solterra or Quantum Asia (regardless
of when or where the Work Product is prepared or whose equipment or other resources is used in preparing the same) and all printed,
physical and electronic copies, all improvements, rights and claims related to the foregoing, and other tangible embodiments thereof
(collectively, “Work Product”), as well as any and all rights in and to copyrights, trade secrets, trademarks
(and related goodwill), mask works, patents and other intellectual property rights therein arising in any jurisdiction throughout
the world and all related rights of priority under international conventions with respect thereto, including all pending and future
applications and registrations therefor, and continuations, divisions, continuations-in-part, reissues, extensions and renewals
thereof (collectively, “Intellectual Property Rights”), shall be the sole and exclusive property of the Company.


 


11.2Definition
of “Work Product”. For purposes of this Agreement, Work Product includes, but is not limited to, Company Group
information, including plans, publications, research, strategies, techniques, agreements, documents, contracts, terms of agreements,
negotiations, know-how, computer programs, computer applications, software design, web design, work in process, databases, manuals,
results, developments, reports, graphics, drawings, sketches, market studies, formulae, notes, communications, algorithms, product
plans, product designs, styles, models, audiovisual programs, inventions, unpublished patent applications, original works of authorship,
discoveries, experimental processes, experimental results, specifications, customer information, client information, customer
lists, client lists, manufacturing information, marketing information, advertising information, and sales information.


 


11.3Work
Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant times,
to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work made for hire”
as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that the foregoing does
not apply, the Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive’s entire
right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim
and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding
thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company’s rights,
title or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Company would
have had in the absence of this Agreement.


 


11.4Further
Assurances; Power of Attorney. During and after his employment, the Executive agrees to reasonably cooperate with the Company
to (a) apply for, obtain, perfect and transfer to the Company the Work Product as well as an Intellectual Property Right in the
Work Product in any jurisdiction in the world; and (b) maintain, protect and enforce the same, including, without limitation,
executing and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other
documents and instruments as shall be requested by the Company. The Executive hereby irrevocably grants the Company power of attorney
to execute and deliver any such documents on the Executive’s behalf in his name and to do all other lawfully permitted acts
to transfer the Work Product to the Company and further the transfer, issuance, prosecution and maintenance of all Intellectual
Property Rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate with the Company’s
request (without limiting the rights the Company shall have in such circumstances by operation of law). The power of attorney
is coupled with an interest and shall not be effected by the Executive’s subsequent incapacity.


 


11.5No
License. The Executive understands that this Agreement does not, and shall not be construed to, grant the Executive any license
or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials,
software or other tools made available to him by the Company.


 




    	 	13	 



     

    


 


12.Company
Security.


 


12.1Security
and Access. The Executive agrees and covenants (a) to comply with all Company security policies and procedures as in force
from time to time including without limitation those regarding computer equipment, telephone systems, voicemail systems, facilities
access, monitoring, key cards, access codes, Company intranet, internet, social media and instant messaging systems, computer
systems, e-mail systems, computer networks, document storage systems, software, data security, encryption, firewalls, passwords
and any and all other Company facilities, IT resources and communication technologies (“Facilities Information Technology
and Access Resources”); (b) not to access or use any Facilities and Information Technology Resources except as authorized
by the Company; and (iii) not to access or use any Facilities and Information Technology Resources in any manner after the termination
of the Executive’s employment by the Company, whether termination is voluntary or involuntary. The Executive agrees to notify
the Company promptly in the event he learns of any violation of the foregoing by others, or of any other misappropriation or unauthorized
access, use, reproduction or reverse engineering of, or tampering with any Facilities and Information Technology Access Resources
or other Company property or materials by others.


 


12.2Exit
Obligations. Upon (a) voluntary or involuntary termination of the Executive’s employment or (b) the Company’s
request at any time during the Executive’s employment, the Executive shall (i) provide or return to the Company any and
all Company property, including keys, key cards, access cards, identification cards, security devices, employer credit cards,
network access devices, computers, cell phones, smartphones, PDAs, pagers, fax machines, equipment, speakers, webcams, manuals,
reports, files, books, compilations, work product, e-mail messages, recordings, tapes, disks, thumb drives or other removable
information storage devices, hard drives, negatives and data and all Company documents and materials belonging to the Company
and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information or Work
Product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or
any of its business associates or created by the Executive in connection with his employment by the Company; and (ii) delete or
destroy all copies of any such documents and materials not returned to the Company that remain in the Executive’s possession
or control, including those stored on any non-Company devices, networks, storage locations and media in the Executive’s
possession or control.


 


13.Publicity.
The Executive hereby consents to any and all uses and displays, by the Company and its agents, representatives and licensees,
of the Executive’s name, voice, likeness, image, appearance and biographical information in, on or in connection with any
pictures, photographs, audio and video recordings, digital images, websites, television programs and advertising, other advertising
and publicity, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes and all other printed and
electronic forms and media throughout the world, at any time during his employment by the Company, for all legitimate commercial
and business purposes of the Company (“Permitted Uses”) without further consent from or royalty, payment or
other compensation to the Executive. For any legitimate commercial or business purposes after the employment of the Executive,
the Company must get prior written approval to use the Executive’s name, voice, likeness, image, appearance and biographical
information in, on or in connection with any pictures, photographs, audio and video recordings, digital images, websites, television
programs and advertising, other advertising and publicity, sales and marketing brochures, books, magazines, other publications,
CDs, DVDs, tapes and all other printed and electronic forms and media throughout the world.


 




    	 	14	 



     

    


 


14.Governing
Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Texas without
regard to conflicts of law principles. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought
only in a state or federal court located in the state of Texas, county of Harris. The Parties hereby irrevocably submit to the
exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding
in such venue.


 


15.Deductions
and Withholdings. The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local
taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.


 


16.IRS
Section 409A. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and
administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this
Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments
under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service
or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A,
each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this
Agreement upon a termination of employment shall only be made upon a “separation from service” under Section 409A.
Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement
comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest
or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.


 


Notwithstanding
any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination
of employment is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A
and the Executive is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i), then such payment
or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date
(the “Specified Employee Payment Date”). The aggregate of any payments that would otherwise have been paid
before the Specified Employee Payment Date shall be paid to the Executive in a lump sum on the Specified Employee Payment Date
and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.


 


17.Entire
Agreement. With the exception of Restricted Stock Award Agreement, and unless specifically provided herein, this Agreement
contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter
hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and
oral, with respect to such subject matter. The Parties hereby acknowledge and agree that the Restricted Stock Award Agreement
shall remain in full force and effect notwithstanding the execution of this Agreement and shall survive the termination of this
Agreement. The Parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in
legal proceedings alleging breach of the Agreement.


 


18.Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in
writing and signed by the Executive and by Chief Executive Officer of the Company. No waiver by either of the Parties of any breach
by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed
a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure
of or delay by either of the Parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude
any other or further exercise thereof or the exercise of any other such right, power or privilege.


 




    	 	15	 



     

    


 


19.Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if
any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of
the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with any such modification
to become a part hereof and treated as though originally set forth in this Agreement.


 


The
Parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement
in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision,
deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications
as it deems warranted to carry out the intent and agreement of the Parties as embodied herein to the maximum extent permitted
by law.


 


The
Parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of
them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision
or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable
provisions had not been set forth herein.


 


20.Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.


 


21.Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.


 


22.Tolling.
Should the Executive violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue
will run from the first date on which the Executive ceases to be in violation of such obligation.


 


23.Notification
to Subsequent Employer. When the Executive’s employment with the Company terminates, the Executive agrees to notify
any subsequent employer of the restrictive covenants section contained in this Agreement. In addition, the Executive authorizes
the Company to provide a copy of the restrictive covenants section of this Agreement to third Parties, including but not limited
to, the Executive’s subsequent, anticipated or possible future employer.


 


24.Successors
and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment
by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement
to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors
and assigns.


 


25.Notice.
Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent
by registered or certified mail, return receipt requested, or by overnight carrier to the Parties at the addresses set forth below
(or such other addresses as specified by the Parties by like notice):


 




    	 	16	 



     

    


 


If
to the Company:


Quantum
Materials Corp.


3055
Hunter Road


San
Marcos, TX 78666


Attn:
Daniel Carlson, Chairman of the Board


 


If
to the Executive:


Stephen
Squires


16640
FM 1826


Driftwood,
Texas 78619


 


26.Representations
of the Executive. The Executive represents and warrants to the Company that:


 


26.1The
Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not conflict with
or result in a violation of, a breach of, or a default under any contract, agreement or understanding to which he is a party or
is otherwise bound.


 


26.2The
Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation,
non-competition or other similar covenant or agreement of a prior employer.


 


27.Survival.
Upon the expiration or other termination of this Agreement, the respective rights and obligations of the Parties hereto shall
survive such expiration or other termination to the extent necessary to carry out the intentions of the Parties under this Agreement.


 


28.Executive’s
Acknowledgment of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY
ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT
WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.


 


[SIGNATURE
PAGE FOLLOWS]


 




    	 	17	 



     

    


 


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


 


	 	COMPANY:
	 	 	 
	 	QUANTUM MATERIALS CORP.
	 	 	 
	 	By:	/s/
    Daniel Carlson
	 	Name:
    	Daniel
    Carlson
	 	Title:
    	Chairman
    of the Board of Directors
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	By:	/s/
    Stephen B. Squires
	 	Name:
    	Stephen
    B. Squires