Document:

Exhibit 10.1

 

CFO
CONSULTING AGREEMENT

 

between

 

Quantum
Materials Corp.

 

and

 

Robert
Phillips

 

AGREEMENT
made effective as of the 1st day of January, 2019 by and between Quantum Materials Corp. (the “Company”), address:
STAR Park, 3055 Hunter Road, San Marcos, TX 78666 and Robert Phillips (“Phillips” or “Consultant or Consulting
CFO”), address: 951 Lost Valley Rd. Dripping Springs, Texas 78620.

 

WHEREAS,
the Company desires professional guidance and advice regarding public technology company financial operations and desires
Consultant to act as an Interim Chief Financial Officer; and

 

WHEREAS,
Consultant has expertise in the area of public companies and technology companies and extensive finance background; and is
willing to act as a Consultant, and Interim Chief Financial Officer to the Company upon the terms and conditions set forth in
this Agreement;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual promises herein contained, the parties hereto agree as follows:

 

1.
Independent Consultant. The Company, through the action of its Board of Directors (the “Board”), and/or Chief
Executive Officer (“CEO”) hereby engages the Consultant, and the Consultant will serve the Company, as a consultant.
During the term of this Agreement, the Consultant will serve as the non-employee interim chief financial officer (“Chief
Financial Officer”, “CFO”, “Interim CFO”, or “Consultant or Consulting CFO”) of the
Company on a part-time basis. During the term of this agreement, the Consultant shall devote as much of his productive time, energy
and abilities to the performance of his duties hereunder as is necessary to perform the required duties in a timely and productive
manner. The services rendered by Consultant to the company pursuant to this Agreement shall be as an independent contractor, and
this Agreement does not make Consultant an employee of the Company. The company shall not withhold for Consultant any federal
or state taxes from the amounts to be paid to consultant hereunder, and Consultant agrees that he will pay all taxes due on such
amounts. The Consultant shall have no claim against the Company hereunder or otherwise for vacation pay, sick leave, retirement
benefits, social security, worker’s compensation, health or disability benefits, unemployment insurance benefits, or employee
benefits of any kind.

 

2.
Expertise. Consultant has expertise in the area of public companies and technology companies and an extensive finance and
SEC financial reporting background and is willing to act as a Consultant, and Interim Chief Financial Officer to the Company upon
the terms and conditions set forth in the CFO Consulting Agreement.

 

    	 		 

    	 	 	 

    

 

3.
Duties. The Consultant will perform all duties typically required of a Chief Financial Officer, including, but not limited
to accounting oversight, preparation of quarterly and annual financial statements to be filed with the SEC, filings required on
Forms 8-K and such other filings as may be required and coordination with Quantum Material’s independent public accountants
with respect to quarterly reviews and annual audits. The Consultant recognizes and understands that, in performing the duties
and responsibilities of CFO as provided in this Agreement, he will occupy a position of fiduciary trust and confidence, pursuant
to which he will develop and acquire experience and knowledge with respect the manner in which the Company’s business is
conducted. Consultant CFO will report directly to Stephen Squires, President and CEO of Quantum Materials Corp. and to any other
party designated by Stephen Squires in connection with the performance of the duties under this Agreement and shall fulfill any
other duties reasonably requested by the Company and agreed to by the Consultant. The services rendered by Consultant to the company
pursuant to this Agreement shall be as an independent contractor, and this Agreement does not make Consultant an employee, of
the Company.

 

4.
Compensation. As compensation for the services rendered pursuant to this Agreement which shall be equivalent to $150,000 annually.
Company shall pay Consultant $2,500 per month which shall accrue as a payable to Consultant until such time that $2 million in
cumulative external equity, debt or other funding events occur. In addition, the Company shall issue to Consultant shares common
stock from available stock compensation plan(s) if available or of restricted common stock if no registered share compensation
plan shares are available at share issue date on a monthly basis with a value of $10,000 after extending a 20% discount to the
weighted average closing price on a public stock exchange during such respective payment month.

 

At
the Consultants request, the monthly cash payment and any previously accrued and unpaid cash payments shall be paid in shares
of underlying a registered stock compensation plan or of restricted common stock if no stock compensation plan shares are available,
on a monthly basis after extending a 20% discount to the weighted average closing price on a public stock exchange during such
respective payment month. At the Consultants request, any or all previously accrued and unpaid cash or stock payables due, including
from prior years, shall be paid from shares issued underlying a registered stock compensation plan.

 

Company
further understands and agrees that if restricted stock is issued to Consultant as compensation for this Agreement is earned upon
receipt by Consultant and such shares cannot be canceled, nor the transfer of such shares stopped or hindered by Company for any
reason whatsoever at any time in the future. All shares issued to the consultant shall be deemed irrevocable and non-assessable.
The Consultant also reserves the right to include acquired common stock paid for consulting services in any future S-1, S-8 or
similar registration statements filed with the SEC as SEC regulations allow (See below Section 11 “Piggyback Registration
Rights”).

 

5.
Term. This engagement shall commence upon execution of a Consulting CFO Agreement and shall continue in full force and effect
for a period of one year. The agreement may be extended annually thereafter by mutual agreement, unless terminated earlier by
operation of and in accordance with the Agreement.

 

    	 		 

    	 	 	 

    

 

6.
Termination. The Company may terminate this Agreement at any time by 30 days’ written notice to the Consultant.

 

7.
Confidentiality. The Consultant acknowledges that during the engagement he will have access to and become acquainted with
various trade secrets, inventions, innovations, processes, information, records and specifications owned or licensed by the Company
and/or used by the Company in connection with the operation of its business including, without limitation, the Company’s
business and product processes, financial documents and files, methods, customer lists, accounts and procedures. The Consultant
agrees that he will not disclose any of the aforesaid, directly or indirectly, or use any of them in any manner, either during
the term of this Agreement or at any time thereafter, except as required in the course of this engagement with the Company. All
files, records, documents, financial records, specifications, information, letters, notes and similar items relating to the business
of the Company, whether prepared by the Consultant or otherwise coming into his possession, shall remain the exclusive property
of the Company. Upon the expiration or earlier termination of this Agreement, or whenever requested by the Company, the Consultant
shall immediately deliver to the Company all such files, records, financial documents, specifications, information, and other
items in his possession or under his control.

 

8.
Indemnification. Company agrees to indemnify and hold harmless Consultant from any and all claims, actions, liabilities, costs,
expenses, including attorney fees arising from claims made against Consultant in connection with Company’s possession or
use of advice, guidance, materials, information, data or other services provided by Consultant under this Agreement.

 

9.
Expenses. The Company shall reimburse Consultant for all reasonable and necessary expenses incurred by it in carrying out
its duties under this Agreement. Consultant shall seek approval of any expenses in advance when reasonably possible. Consultant
shall submit related receipts and documentation with his request for reimbursement in a timely manner.

 

10.
Partial Invalidity. If any provision of this Agreement is for any reason found to be unenforceable, all other provisions nonetheless
remain enforceable. If a provision is deemed invalid because of its scope or breadth, it must be deemed valid to the extent of
the scope or breadth permitted by law.

 

11.
Piggyback Registration Rights. The Company agrees that if it proposes to register any of its stock or other securities under
the Securities Act of 1933, as amended (the “Securities Act”), including a registration effected by the Company for
any shareholders, the Company shall, at such time, promptly give Consultant written notice of such registration. Upon the written
request of Consultant given within twenty (20) days after mailing of such notice by the Company, the Company shall cause to register
under the Securities Act, at Company’s expense, all of the stock or other securities of the Consultant, or Consultant’s
designees or transferees, requested by the Consultant to be registered.

 

    	 		 

    	 	 	 

    

 

12.
Rule 144 Cooperation. Notwithstanding the provisions set forth above under the section labeled Piggy-Back Registration rights,
if Consultant elects to sell any of his stock or other securities in the Company pursuant to the provisions of Rule 144 under
the Securities Act, and provided the Consultant has complied with the provisions of Rule 144, the Company will instruct its securities
counsel to issue an opinion letter for delivery to the Company’s transfer agent authorizing Consultant’s sale of his
stock or other securities in the Company pursuant to Rule 144, and, in the foregoing regard, Company agrees that it shall timely
file with the Securities and Exchange Commission (the “Commission”) all reports required to be filed by the Company
pursuant to the Securities and Exchange Act of 1934, as amended, for so long as Consultant remains a shareholder of the Company.
A copy of the Rule 144 opinion letter shall be sent to Consultant via email and U.S. mail.

 

13.
Change of Control. In the event of a “Change of Control” (as defined below) of the Company that occurs prior to
the termination of this Agreement, the remaining balance of all cash payments and common stock payable to the Consultant under
the terms of this agreement will be accelerated so as to become 300% payable of the remaining term. The Company shall issue to
Consultant these shares of common stock on a basis with a value under the terms Section 4 above, based on a weighted average closing
price of the month prior to a public disclosure of any change in control event.

 

For
purposes of this Section, “Change of Control” of the Company is defined as: (i) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, including beneficial ownership consisting of preferred
shares which may or may not be convertible, of securities of the Company representing 25% or more of the total voting power represented
by the Company’s then outstanding voting securities; or (ii) a change in the composition of the Board occurring within a
two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors”
will mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election,
to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination
(but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating
to the election of directors to the Company); or (iii) the date of the consummation of a merger or consolidation of the Company
with any other corporation that has been approved by the stockholders of the Company, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the
total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company; or (iv)
the date of the consummation of the sale or disposition by the Company of all or substantially all the Company’s assets.

 

14.
Miscellaneous

 

(a)
Successors and Assigns. This Agreement is binding on and ensures to the benefit of the Company. Company cannot assign this Agreement
without Consultant’s written agreement.

 

(b)
Modification. This Agreement may be modified or amended only by a writing signed by both the Company and Consultant.

 

    	 		 

    	 	 	 

    

 

(c)
Governing Law. The laws of Texas will govern the validity, construction, and performance of this Agreement. Any legal proceeding
related to this Agreement will be brought in an appropriate Texas court, and both the Company and Consultant hereby consent to
the exclusive jurisdiction of that court for this purpose.

 

(d)
Construction. Wherever possible, each provision of this Agreement will be interpreted so that it is valid under the applicable
law. If any provision of this Agreement is to any extent invalid under the applicable law, that provision will still be effective,
to the extent it remains valid. The remainder of this Agreement also will continue to be valid, and the entire Agreement will
continue to be valid in other jurisdictions.

 

(e)
Waivers. No failure or delay by either the Company or Consultant in exercising any right or remedy under this Agreement will waive
any provision of the Agreement, nor will any single or partial exercise by either the Company or Consultant of any right or remedy
under this Agreement preclude either of them from otherwise or further exercising these rights or remedies, or any other rights
or remedies granted by any law or any related document.

 

(f)
Entire Agreement. This Agreement supersedes all previous and contemporaneous oral negotiations, commitments, writings, and understandings
between the parties concerning the matters in this Agreement.

 

(g)
Notices. All notices and other communications required or permitted under this Agreement shall be in writing and sent by registered
first-class mail, postage prepaid, and shall be effective five days after mailing to the addresses stated below. These addresses
may be changed at any time by like notice.

 

In
the case of the Company: Quantum Materials Corp. STAR Park, 3055 Hunter Road, San Marcos, TX 78666

 

In
the case of Consultant: and Robert Phillips, 951 Lost Valley Rd. Dripping Springs, Texas 78620.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the date and year first above written.

 

Quantum
Materials Corp (The Company”)

 

	Stephen
    Squires, President and CEO	 
	 	 
	/s/
    Stephen Squires	 

 

	Robert
    Phillips (“CFO” or “Consultant or Consulting CFO”)	 
	 	 
	/s/
    Robert PhillipsExhibit

Exhibit 10.1

Amended and Restated Employee Stock Purchase Plan
(As approved by the stockholders on May 4, 2006 and as amended effective as of February 18, 2019)
The purpose of the Employee Stock Purchase Plan (the “Program”) of Quest Diagnostics Incorporated (the “Corporation”) is to provide to employees an ongoing opportunity to purchase shares of Common Stock of the Corporation, par value $0.01 per share (“Common Stock”).  The Program became effective upon its approval by the holders of stock entitled to vote at the Corporation’s May 4, 2006 Annual Meeting of Stockholders and has subsequently been amended.
1.Administration.  The Program will be administered by the Compensation Committee of the Board of Directors (the “Committee”).  The Committee will have authority to (a) exercise all of the powers granted to it under the Program, (b) construe, interpret and implement the Program, (c) to prescribe, amend and rescind rules and regulations relating to the Program, including rules governing its own operations, (d) to make all determinations necessary or advisable in administering the Program and (e) to correct any defect, supply any omission and reconcile any inconsistency in the Program.  The determination of the Committee on any matters relating to the Program shall be final, binding and conclusive.  No member of the Committee shall be liable for any action or determination made in good faith with respect to the Program.  To the extent permitted by applicable law, the Committee may delegate such responsibilities and powers as it specifies to any employee or employees selected by it. Any action undertaken by an administrator in accordance with the Committee’s delegation of authority shall have the same force and effect as if undertaken directly by the Committee.  Any such delegation may be revoked by the Committee at any time.

2.Eligibility.  Such groups of employees of the Corporation or any subsidiary or other entity as may from time to time be designated by the Committee (“Participating Entity”) will be eligible to participate in the Program, in accordance with such rules as may be prescribed from time to time by the Committee.  No employee can participate in the Program if such employee would, immediately after participating in the Program, own stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Corporation or of its parent or subsidiary corporations.  A person may not participate in the Program unless such person is an “employee” as defined in the instructions to the Form S-8 registration statement under the Securities Act of 1933, as amended (or any successor form) as in effect from time to time.

3.Shares Subject to the Program.  The total number of shares of Common Stock which may be delivered pursuant to the Program will be nine million (9,000,000) shares of Common Stock in the aggregate.  In the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization, merger, demerger, consolidation, split-up, spin-off, combination or exchange of shares, or any similar change affecting the Common Stock, or in the event the Company pays an extraordinary cash dividend: (i) the number and kind of shares which may be delivered under the Program; (ii) the number and kind of shares subject to outstanding Options (as hereinafter defined); and (iii) the exercise price of outstanding Options shall be appropriately adjusted consistent with such change in such manner as the Committee may deem equitable to prevent substantial dilution or enlargement of the right granted to, or available for, participants.  Except as expressly provided herein, no issuance by the Corporation of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. The Shares delivered under the Plan may be authorized and unissued shares or shares held in the treasury of the Corporation, including shares purchased by the Corporation (at such time or times and in such manner as it may determine).

4.Participation; Payroll Deductions.  

(a)An eligible employee may participate in the Program by completing the enrollment process specified by the Corporation, including authorizing payroll deductions from the employee’s eligible compensation (as determined from time to time by the Committee).  Payroll deductions authorized by a participating employee will be given effect as soon as practicable after completion of the enrollment process, but may not be retroactive.  

(b)Unless otherwise determined by the Committee, an employee may authorize a payroll deduction at a rate, in whole percentages, of (X) not less than one percent (1%) of the eligible compensation that the employee receives during each payroll period and (Y) not greater than ten percent (10%) of the eligible compensation that the employee receives during each payroll period; provided, however, that employees participating in the Program on June 29 , 2015 shall not be subject to the limitation set forth in clause (X) until such time, if any, as they change the amount of their payroll deduction.    

1

Exhibit 10.1

(c)Payroll deductions authorized under the Program shall be held by the Corporation as part of its general funds.  All funds held by the Corporation under the Program may be used for any corporate purpose. Records will be maintained of the payroll deductions of each participating employee.  Participating employees shall not be credited with, or entitled to receive, interest in respect of payroll deductions.

(d)A participating employee may at any time request to stop, increase or decrease his or her payroll deductions by completing a Corporation-specified process.  These requests shall become effective as soon as practicable after completion of the process.  A participating employee shall have no right to withdraw payroll deductions.

(e)If a participating employee ceases to participate in the Program for any reason (including, without limitation, Program ineligibility or termination of employment), then that participating employee’s uninvested payroll deductions shall be refunded as soon as practicable.  

5.Offerings.  

(a)Certain Definitions; Offering; Corporate Contribution 

(1)The Corporation shall make on the last business day of each calendar month, or on such other date or dates as the Committee may determine, an offer to participating employees to purchase shares of Common Stock under the Program.  Each date on which an offer is made is referred to as an “Offer Date.”

(2)The period beginning on the day following an Offer Date and continuing through (and including) the next Offer Date shall be an “Offer Period.”

(3)The payroll deductions for a participating employee made under the Program during an Offer Period shall be the “Employee Contribution” for that Offer Period.

(4)On each Offer Date, for each employee for which there is an Employee Contribution for the Offer Period ending on that Offer Date, the Corporation shall make a “Corporate Contribution” equal to 0.0526 multiplied by the Employee Contribution.

(5)For each participating employee as of any date, the sum of all Employee Contributions plus all Corporate Contributions that have not yet been invested in shares of Common Stock purchased under the Program shall be the participating employee’s “Program Credits” as of that date.   

(6)“Market Price” means, unless the Committee determines otherwise, the closing price of a share of Common Stock on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock) on the relevant date of determination or, if the Common Stock is not traded on such date, the closing price on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock) on the next preceding day on which the Common Stock was traded.

(b)On any Offer Date, if a participating employee’s Program Credits are sufficient to purchase at least one whole share of Common Stock (based on the Market Price on the Offer Date), then that participating employee will be entitled to purchase Common Stock under the Program on that Offer Date and will be granted an option (an “Option”) to purchase as many shares of Common Stock as may be purchased with the participating employee’s Program Credits.   The exercise price for each Option will be the Market Price on the Offer Date.  The participating employee shall be deemed to have exercised the Option as of the Offer Date and shall acquire the Common Stock subject to the Option.

(c)If on an Offer Date a participating employee’s Program Credits are not sufficient to purchase at least one whole share of Common Stock (based on the Market Price on the Offer Date), then that participating employee will not be entitled to purchase Common Stock under the Program on that Offer Date, and the participating employee’s Program Credits will be applied to the purchase of Common Stock in accordance with Section 5(b) on the next Offer Date. 
6.Common Stock Acquired Under Program.  Common Stock purchased by a participating employee under the Program shall be held by a third party agent in an account established for the participating employee.

2

Exhibit 10.1

7.Certain Rights.

(a)A participating employee shall not have any of the rights or privileges of a stockholder of the Corporation with respect to shares purchased under the Program unless and until ownership of such shares shall have been appropriately evidenced on the Corporation’s books. 

(b)Rights under the Program are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during the participating employee’s lifetime only by the participating employee.

(c)Nothing in the Program shall confer upon any employee the right to continue in the employ of the Corporation or any Participating Entity or affect any right which the Corporation or any Participating Entity may have to terminate such employment.

8.Amendment; Termination.  

(a)The Committee may at any time, or from time to time, amend or suspend the Program in any respect, including retroactively to the extent necessary; provided, however that no such action shall be made without shareholder approval if such approval is required under tax or stock exchange rules and regulations.  Upon any such suspension or amendment of the Program, the Committee may in its discretion determine that all payroll deductions pending investment under the Program will be applied under a successor program, if any, or promptly refunded.

(b)The Program and all rights of employees under any offering hereunder shall terminate at the discretion of the Committee or on the day that participating employees become entitled to purchase a number of shares of Common Stock greater than the number of shares of Common Stock remaining available for purposes of the Program; provided, however, if the number of shares of Common Stock so purchasable is greater than the shares of Common Stock remaining available, the available shares of Common Stock shall be allocated by the Committee among such participating employees in such manner as it deems fair.

(c)Upon termination of the Program all payroll deductions pending investment under the Program shall be applied under a successor program, if any, or promptly refunded.

9.Governmental Regulations.  The Corporation’s obligation to sell and deliver shares of Common Stock under the Program is subject to the approval of any governmental authority required for the authorization, issuance, or sale of such stock.

10.Expenses.  The Committee shall determine in its discretion the extent to which costs of administering and carrying out the Program, including the cost of maintaining participant accounts and costs (including brokerage fees) incurred in connection with transfers or sales of shares under the Program, will be borne by participating employees (including those whose employment has terminated).  

11.Miscellaneous.

(a)As a condition to participation by an employee in the Program, the Corporation may withhold from any compensation to which the participating employee may be entitled all amounts necessary to satisfy all federal, state, city or other taxes required to be withheld in connection with the individual’s participation in the Program pursuant to any law or governmental regulation or ruling.

(b)The Program is not intended to qualify as an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code, but is intended to meet the coverage and participation requirements of Sections 423(b)(3) and 423(b)(5) of the Internal Revenue Code and therefore to qualify as a “Stock Purchase Plan” within the meaning of Rule 16b-3 promulgated under the Securities Exchange Act of 1934.

12.Governing Law.  The Program shall be interpreted, construed and administered in accordance with the laws of the State of New Jersey, without giving effect to principles of conflict of laws.

3

Exhibit 10.1

Annex I: Certain Supplemental Provisions

This Annex I to the Quest Diagnostics Incorporated Amended and Restated Employee Stock Purchase Plan sets forth supplemental terms and conditions applicable to (i) employees whose employment with the Corporation or another Participating Entity terminated (for any reason) on or prior to May 25, 2015 and (ii) employees and former employees whose accounts under the Program held securities of entities other than the Corporation.

1.    Rights on Retirement, Death, or Termination of Employment.

Following retirement or other termination of employment, a participant (or if the participant has died, the representative of the participant’s estate) may elect to have the shares of Common Stock held in the participant’s account under the Program: (i) transferred to a brokerage account designated by the participant; or (ii) sold and the proceeds remitted to the participant.  If the Corporation does not receive a written election relating to the shares in a participant’s account from the participant within 60 days following the date the Corporation notifies the participant of the opportunity to make such election, the participant shall be deemed to have made the election provided for in clause (ii) of the preceding sentence; provided, however, that the Committee may in its discretion establish a different default procedure for participants who fail to make a timely election.  This Part 1 of Annex 1 became effective as of May 25, 2015, including with respect to participants who have retired or whose employment has otherwise terminated prior to such date.
2.    Common Stock of Entities Other than the Corporation.  

With respect to the shares of common stock or other securities of entities other than the Corporation held in accounts under the Program, a participant may elect to have the shares or other securities in the account: (i) delivered to the transfer agent for the issuer of such shares or other securities for the participant’s benefit; (ii) transferred to a brokerage account designated by the participant; or (iii) sold and the proceeds remitted to the participant.  If the Corporation does not receive a written election relating to such shares or other securities in a participant’s account from the participant within 60 days following the date the Corporation notifies the participant of the opportunity to make such election, the participant shall be deemed to have made the election provided for in clause (iii) of the preceding sentence; provided, however, that the Committee may in its discretion establish a different default procedure for participants who fail to make a timely election.  This Part 2 of Annex I became effective as of May 25, 2015.

4

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