Document:

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A CUSTOMARY
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

THIS
NOTE IS SUBJECT TO THE TERMS OF THAT CERTAIN SECURITIES PURCHASE AGREEMENT BETWEEN THE HOLDER AND QUANTUM MATERIALS CORP. DATED
AS OF THE DATE HEREOF, AS THE SAME MAY BE AMENDED FROM TIME TO TIME.

 

NON-NEGOTIABLE
UNSECURED CONVERTIBLE PROMISSORY NOTE

 

	$__________
    	November
____, 2016

 

FOR
VALUE RECEIVED, Quantum Materials Corp., a Nevada corporation, promises to pay to the order of __________________, in lawful money
of the United States of America in immediately available funds, the lesser of (a) the principal sum of __________________ Dollars
($________), or (b) the outstanding principal balance hereunder, as provided below:

 

1.Unit
Subscription Agreement. This Note is issued pursuant to the Securities Purchase Agreement, dated as of the date hereof, by
and between the Company and the Holder (the “Subscription Agreement”). The Holder is subject to certain restrictions
set forth in the Subscription Agreement and shall be entitled to certain rights and privileges set forth in the Subscription Agreement.
This Note is one of the Notes referred to as the “Notes” in the Subscription Agreement. This Note is being
issued in the series of similar promissory notes in connection with the Offering. Capitalized terms used but not otherwise defined
shall have the meaning ascribed to such terms in the Subscription Agreement.

 

2.Definitions.
As used in this Note, the following terms have the following meanings:

 

“Applicable
Rate” means eight percent (8%) per annum.

 

“Common
Stock” means the Common Stock, par value $0.001 per share, of the Company.

 

“Company”
means Quantum Materials Corp., a Nevada corporation, and any successor thereto.

 

“Conversion
Discount” means 0.80.

 

    	 	 	 

     

    

 

“Conversion
Price” means $0.12. The Conversion Price shall be subject to adjustment to prevent dilution in certain events including:
(a) any subdivisions, combinations and classifications of the Common Stock; or (b) any payment, issuance or distribution by the
Company to its stockholders of (i) a stock dividend, (ii) debt securities of the Company, or (iii) assets (other than cash dividends
payable out of earnings or surplus in the ordinary course of business). The Conversion Price also is subject to a full ratchet
adjustment upon the Company’s issuance of Common Stock, options, warrants, or rights to purchase Common Stock or securities
convertible into Common Stock for a consideration per share which is less than the then- applicable Conversion Price of the Notes,
excluding (i) Common Stock and options issued to officers, directors, and employees of the Company, (ii) the exercise or conversion
of convertible securities of the Company existing as of the date of this Note, or (iii) Common Stock or other securities issued
or issuable to the Holder pursuant to any other contract, agreement or arrangement, whether entered into before or after the date
of this Note.

 

“Convertible
Sum” means the unpaid principal balance hereunder and any accrued and unpaid interest.

 

“Effective
Date” means the effective date of this Note, as set forth in the heading opposite the principal amount hereof.

 

“Equity
Securities” means in connection with a Next Round of Financing, the type of securities that are offered and sold to
investors in such Next Round of Financing.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Event
of Default” has the meaning set forth in Section 5(a).

 

“GAAP”
means United States generally acceptable accounting principles as promulgated by the Financial Accounting Standards Board, as
in effect from time to time, as applied by the Company, on a consolidated basis.

 

“Holder(s)”
when the context refers to a holder of this Note, shall mean any person who shall at the time be the registered holder of this
Note, and, when the context refers to the holder of the Notes collectively, shall mean all persons who shall at the time be the
registered holders of the Notes.

 

“Maturity
Date” means the second anniversary of the Effective Date.

 

“Next
Round of Financing” means the closing of the first round of financing at the minimum amount of $10,000,000 or more,
in a single round of financing (excluding the sale of the Notes and the issuance of securities issued upon conversion of the Notes,
and excluding any other subsequent issuance of convertible debt). The determination of whether a particular financing constitutes
“Next Round of Financing” shall be made by the Board.

 

“Notes”
has the meaning set forth in the Subscription Agreement.

 

    	 	 	 

     

    

 

“Permitted
Assignee” has the meaning set forth in Section 9.

 

“Senior
Indebtedness” means the principal and interest on indebtedness of the Company for money borrowed from commercial banks,
equipment lessors or other financial institutions under a secured or unsecured line of credit, term loan or equipment lease, whether
now or hereafter incurred.

 

“Significant
Event” means, the occurrence of, at anytime following the Effective Date, (a) the Common Stock trading at or above 2.0
times the then-applicable Conversion Price for a period of thirty (30) consecutive trading days, with minimum average trading
volume of 250,000 shares per day over such period and (b) the shares of Common Stock issuable upon Conversion in accordance with
Section 7(b) being (or would reasonably considered to be) freely- tradable by Holder.

 

“Subscription
Agreement” has the meaning set forth in Section 1.

 

3.Interest.
Interest shall accrue on the outstanding principal balance of this Note from the Effective Date to the date converted or paid,
at the Applicable Rate, which interest shall be simple and shall not compound; provided, however, that, upon an
Event of Default and so long as such Event of Default shall continue, interest shall accrue on the outstanding principal balance
of this Note from the date of the Event of Default to the date paid at the lesser of (a) the Applicable Rate plus two percent
(2%) per annum or (b) the greatest amount permitted by applicable law. Subject to the provisions of this Note, accrued and outstanding
interest shall be paid to Holders (x) in cash or in shares of Common Stock at the Conversion Price, at the Company’s sole
discretion, on the first anniversary of the Effective Date and upon the maturity of this Note or upon an Event of Default in accordance
with Section 5(b)(i) hereof, or (y) shall be converted into equity upon a Next Round of Financing, upon a Significant Event, or
upon an optional conversion of the Note as set forth herein, whichever occurs sooner.

 

4.Maturity.
The entire principal balance hereunder, together with all accrued and unpaid interest, shall be due and payable on the Maturity
Date.

 

5.Events
of Default.

 

(a)Events.
The following occurrences shall constitute an “Event of Default” hereunder:

 

(i)failure
to pay principal and/or interest hereunder when due; or

 

(ii)default
by the Company under any material provision of this Note or the Subscription Agreement if such default is not substantially cured
by the Company within thirty (30) days after the Holder has delivered the Company written notice of such default; or

 

(iii)the
institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to institution of bankruptcy
or insolvency proceedings against it or the filing by it of a petition or answer or consent seeking reorganization or release
under the federal Bankruptcy Act, or any other applicable federal or state law, or the consent by it to the filing of any such
petition or the appointment of a receiver, liquidator, assignee, trustee or other similar official of the Company, or of any substantial
part of its property, or the making by it of an assignment for the benefit of creditors, or the taking of corporate action by
the Company in furtherance of any such action; or

 

    	 	 	 

     

    

 

(iv)if,
within sixty (60) days after the commencement of an action against the Company (and service of process in connection therewith
on the Company) seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar relief under any present
or future statute, law or regulation, such action shall not have been resolved in favor of the Company or if, within sixty (60)
days after the appointment without the consent or acquiescence of the Company of any trustee, receiver or liquidator of the Company
or of all or any substantial part of the properties of the Company, such appointment shall not have been vacated.

 

(b)Remedies.
Upon the occurrence of an Event of Default, and so long as such Event of Default shall continue, the Holder may (i) declare the
entire principal balance hereunder, and all accrued and unpaid interest, immediately due and payable and (ii) exercise any and
all of its rights and remedies granted herein, by applicable law, or which the Holder may otherwise have against the Company or
otherwise.

 

6.Prepayment.
The Company may prepay this Note, in whole or in part, at any time upon not less than ten (10) business days’ written notice
to the Holder, without penalty.

 

7.Conversion.

 

(a)Conversion
upon a Next Round of Financing. Upon the closing of the Next Round of Financing, this Note shall, at the election of the Holder,
automatically convert into either (i) shares of Common Stock equal to the Conversion Sum divided by the Conversion Price or (ii)
such number of Equity Securities as shall equal the quotient obtained by dividing (A) the Convertible Sum by (B) the product of
(1) the gross purchase price per Equity Security paid by the purchasers of the Equity Securities for each Equity Security, and
(2) the applicable Conversion Discount. The Equity Securities or Common Stock issued at the closing of the conversion hereof will
be subject to any obligation, and have all the benefits of, the rights, preferences and privileges of the Equity Securities or
Common Stock of the Company, as applicable.

 

(b)Conversion
in the Event of Significant Event. If, at any time prior to the earlier of Company’s full satisfaction of this Note
shall automatically convert into shares of Common Stock equal to the Conversion Sum divided by the Conversion Price. The Common
Stock issued at the closing of the conversion hereof will be subject to any obligation, and have all the benefits of, the rights,
preferences and privileges of the Common Stock of the Company.

 

(c)Optional
Conversion. At any time prior to the Maturity Date, Holder may convert the Note may into shares of Common Stock equal to the
Conversion Sum divided by the Conversion Price.

 

(d)Closing.
At the closing of any conversion, the Holder shall surrender this Note, and the Company shall issue to the Holder a certificate
evidencing the applicable securities issuable upon such conversion. At the Company’s election, fractional units of securities
will not be issued upon conversion of this Note. In lieu of such fractional units, the Company may pay to Holder, by certified
check, the amount of the outstanding principal under the Note that is not so converted. The Holder and the Company will execute
any and all documents necessary or appropriate to effect the conversion.

 

    	 	 	 

     

    

 

(e)Limitations
on Conversion. Notwithstanding anything to the contrary contained in this Note, this Note shall not be convertible by the
Holder hereof, and the Company shall not effect any conversion of this Note or otherwise issue any shares of Common Stock pursuant
hereto, to the extent (but only to the extent) that after giving effect to such conversion or other share issuance hereunder the
Holder (together with its affiliates) would beneficially own in excess of 4.99% (the “Maximum Percentage”)
of the Common Stock. To the extent the above limitation applies, the determination of whether this Note shall be convertible (vis-à-vis
other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities
shall be convertible, exercisable or exchangeable (as among all such securities owned by the Holder and its affiliates) shall,
subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion,
exercise or exchange (as the case may be). No prior inability to convert this Note, or to issue shares of Common Stock, pursuant
to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent
determination of convertibility. For purposes of this paragraph, beneficial ownership and all determinations and calculations
(including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section
13(d) of the Exchange Act. The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity
with the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or
desirable to properly give effect to such Maximum Percentage limitation. The limitations contained in this paragraph shall apply
to a successor Holder of this Note. The holders of Common Stock shall be third party beneficiaries of this paragraph and the Company
may not waive this paragraph without the consent of holders of a majority of its Common Stock. For any reason at any time, upon
the written or oral request of the Holder, the Company shall within one (1) business day confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise of convertible
or exercisable securities into Common Stock, including, without limitation, pursuant to this Note or securities issued pursuant
to the Subscription Agreement. By written notice to the Company, at any time the Holder may increase or decrease the Maximum Percentage
to any other percentage not in excess of 9.99% specified in such notice; provided that any such increase will not be effective
until the 61st day after such notice is delivered to the Company.

 

8.Assignment.
This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by
the Holder without the consent of the Company; provided, however, that any purchaser, assignee or transferee of this Note shall
agree in writing to be bound by the terms of the Subscription Agreement and this Note.

 

9.Treatment
of Note. To the extent permitted by GAAP, the Company will treat, account and report the Note as debt and not equity for accounting
purposes and with respect to any returns filed with federal, state or local tax authorities. The Holder hereby acknowledges the
foregoing, and agrees not to take any position contrary to such treatment with respect to any tax returns filed by the Holder
unless otherwise required by law.

 

    	 	 	 

     

    

 

10.Notices.
Any notice, request or other communication required or permitted hereunder shall be in writing and shall be sent and deemed to
have been duly given all as set forth in the Subscription Agreement.

 

11.No
Shareholder Rights. Nothing contained in this Note shall be construed as conferring upon the Holder or any other person the
right to vote or to consent or to receive notice as a shareholder in respect of meetings of shareholders for the election of members
of the Board of Directors of the Company or any other matters or any rights whatsoever as a shareholder of the Company; and no
dividends shall be payable or accrued in respect of this Note or the interest represented hereby or the shares obtainable hereunder
until, and only to the extent that, this Note shall have been converted.

 

12.Amendments.
The prior written consent of the Holder and the Company shall be required for any change or amendment to this Note.

 

13.Loss
or Mutilation. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this
Note and, if requested in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement or security
reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Note,
the Company at its expense will execute and deliver, in lieu hereof, a new Note of like tenor.

 

14.Governing
Law; Consent to Jurisdiction. This Note will be interpreted and the rights and liabilities of the Holder and the Company determined
in accordance with the laws of the State of Illinois, without regard to its conflict of law provisions. Each of the Holder and
the Company hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in Cook County, Illinois,
and consents that all service of process be sent by nationally recognized overnight courier service directed to the Holder at
the Holder’s address set forth in the Subscription Agreement or to the Company at the Company’s address set forth
in the Subscription Agreement and service so made will be deemed to be completed when received by the Holder or the Company, as
applicable. Each of the Holder and the Company acknowledges and agrees that such venue is the most convenient forum for both the
Holder and the Company. Each of the Holder and the Company waives any objection to venue and any objection based on a more convenient
forum in any action instituted under this Note.

 

15.Waiver
of Jury Trial. The Company and the Holder, by accepting this Note, irrevocably waive any and all rights that each may have
to a trial by jury in any action, proceeding or claim of any nature relating to this Note, any documents executed in connection
with this Note or any transaction contemplated in any of such documents. The Company and Holder, by accepting this Note, acknowledge
that the foregoing waiver is knowing and voluntary.

 

    	 	 	 

     

    

 

16.Miscellaneous.
No delay or omission of the Holder to exercise any right or power arising hereunder shall impair any such right or power to be
considered to be a waiver of any such right or power, nor shall the Holder’s action or inaction impair any such right or
power. If any provision of this Note is found to be invalid by a court, all the other provisions of this Note will remain in full
force and effect. The Company hereby forever waives presentment, protest, notice of dishonor and notice of non-payment. This Note
shall bind the Company and its successors and assigns. The captions contained in this Note are for convenience only, shall not
be deemed to be a part of this Note and shall not be referred to in connection with the construction or interpretation of this
Note. As used in this Note: (a) “or” is not exclusive; (b) “including” and its variants mean “including,
without limitation” and its variants; (c) words defined in the singular have the parallel meaning in the plural and vice
versa; (d) references to “written” or “in writing” include in visual electronic form; and (e) words of
one gender shall be construed to apply to each gender; and a reference to any person includes such person’s successors and
permitted assigns.

 

[Remainder
of Page Left Intentionally Blank; Signature Page Follows]

 

    	 	 	 

     

    

 

WITNESS
the due execution hereof as of the Effective Date, with the intent to be legally bound hereby.

 

	 	QUANTUM MATERIALS CORP.
	 	 	 
	 	By:
    	        
	 	Name:
    	 
	 	Title:QUANTUM
MATERIALS CORP.

WARRANTS

 

THE
WARRANTS EVIDENCED HEREBY AND THE SECURITIES ISSUABLE UPON THE EXERCISE THEREOF ARE SUBJECT TO THE TERMS AND CONDITIONS OF THAT
CERTAIN SECURITIES PURCHASE AGREEMENT BETWEEN QUANTUM MATERIALS CORP., A NEVADA CORPORATION (THE “COMPANY”),
AND THE PERSON IDENTIFIED AT THE END OF THIS INSTRUMENT AS THE INVESTOR (THE “INVESTOR”), DATED AS OF THE DATE
HEREOF, AS THE SAME MAY BE AMENDED FROM TIME TO TIME (THE “UNIT SUBSCRIPTION AGREEMENT”).

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A CUSTOMARY
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

This
Warrant is granted pursuant to the terms and conditions of the Unit Subscription Agreement. Unless otherwise defined herein, capitalized
terms have the definitions ascribed thereto in the Unit Subscription Agreement.

 

This
certifies that the Investor is the holder of warrants to purchase (the “Warrants”) ___________ shares of Common
Stock, par value $0.001 per share, of the Company (“Common Stock”) at a purchase price equal to the Exercise
Price (such shares of Common Stock, the “Applicable Shares”). The exercise price, which shall be deliverable
upon the exercise of each Warrant, shall be $0.15 per share of Common Stock as such price may be amended from time to time as
provided herein (the “Exercise Price”). The Applicable Shares shall be deliverable upon surrender of this instrument
and payment of such Exercise Price to the Company, but subject to the conditions set forth herein. Payment of the Exercise Price
shall be made in immediately available funds and shall be accompanied by the Form of Exercise attached hereto properly completed
by the holder.

 

The
Warrants evidenced hereby shall be exercisable at any time and from time to time for Applicable Shares upon the exercise thereof
in accordance with the terms hereof; provided however, that the Warrants may not be exercised after (and shall expire
upon the occurrence of) the fifth (5th) anniversary of the date hereof.

 

    	 		 

    	 		 

    

 

Exercise
of Warrants

 

The
holder of Warrants evidenced hereby may exercise them, in part or in whole, by surrendering this instrument, with the Form of
Exercise attached hereto properly completed and executed, and paying the Exercise Price (unless the Holder notifies the Company
in such Form of Exercise that such exercise was made pursuant to a Cashless Exercise (as defined below)). In the event that upon
any exercise of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued to the holder hereof a new instrument evidencing the number of Warrants not exercised. No adjustment
to the Exercise Price will be made for any declared and unpaid dividends or distributions on any Applicable Shares issuable upon
exercise of Warrants evidenced hereby.

 

The
Company shall, to the extent necessary, issue fractional Applicable Shares upon exercise of Warrants or pay the cash equivalent
thereof, at the Company’s option.

 

Cashless
Exercise

 

Notwithstanding
anything contained herein to the contrary, the holder may, in its sole discretion, exercise this Warrant in whole or in part and,
in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Exercise
Price, elect instead to receive upon such exercise the “Net Number” of Applicable Shares determined according to the
following formula (a “Cashless Exercise”):

 

Net
Number = (A x B) - (A x C)

D

 

For
purposes of the foregoing formula:

 

A=
the total number of shares with respect to which this Warrant is then being exercised.

 

B
= the quotient of (x) the sum of the VWAP of the Common Stock of each of the ten (10) trading days ending at the close of business
on the Principal Market (as defined below) immediately prior to the time of exercise as set forth in the applicable Form of Exercise,
divided by (y) ten (10).

 

C
= the Exercise Price then in effect for the Applicable Shares at the time of such exercise.

 

D
= the VWAP of the Common Stock at the close of business on the Principal Market on the date of the delivery of the applicable
Form of Exercise.

 

For
purposes of Rule 144(d) promulgated under the Securities Act of 1933, as amended, it is intended that the Applicable Shares issued
in a Cashless Exercise shall be deemed to have been acquired by the holder, and the holding period for the Applicable Shares shall
be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Unit Subscription Agreement.

 

    	 		 

    	 		 

    

 

“Principal
Market” means the OTCQB operated by the OTC Markets Group, Inc. (or any nationally recognized successor thereto); provided,
however, that in the event the Company’s Common Stock is ever listed or traded on The NASDAQ Capital Market, The NASDAQ
Global Market, The NASDAQ Global Select Market, the New York Stock Exchange, the NYSE MKT, the NYSE Arca, the OTC Bulletin Board,
or the OTCQX operated by the OTC Markets Group, Inc. (or any nationally recognized successor to any of the foregoing), then the
“Principal Market” shall mean such other market or exchange on which the Company’s Common Stock is then listed
or traded.

 

“VWAP”
means the volume weighted average price of the Common Stock on the Principal Market, as reported on the Principal Market.

 

Limitations
on Exercises

 

Notwithstanding
anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the holder hereof to the extent (but
only to the extent) that the holder or any of its affiliates would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the Common Stock. To the extent the above limitation applies, the determination of whether this Warrant
shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the holder or any of
its affiliates) and of which such securities shall be exercisable (as among all such securities owned by the holder) shall, subject
to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise
or exchange (as the case may be). No prior inability to exercise this Warrant pursuant to this paragraph shall have any effect
on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. For the
purposes of this paragraph, beneficial ownership and all determinations and calculations (including, without limitation, with
respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder. The provisions of this paragraph shall be implemented
in a manner otherwise than in strict conformity with the terms of this paragraph to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or
to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant. The holders of Common Stock shall be third party
beneficiaries of this paragraph and the Company may not amend or waive this paragraph without the consent of holders of a majority
of its Common Stock. For any reason at any time, upon the written or oral request of the holder, the Company shall within one
(1) business day confirm orally and in writing to the holder the number of shares of Common Stock then outstanding, including
by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including, without limitation,
pursuant to this Warrant or securities issued pursuant to the Unit Subscription Agreement. By written notice to the Company, at
any time the holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in
such notice; provided that any such increase will not be effective until the 61st day after such notice is delivered to the Company.

 

    	 		 

    	 		 

    

 

Taxes
upon Exercise

 

The
Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue of the Applicable Shares upon exercise
of Warrants. Nothing herein shall preclude any tax withholding required by law or regulations.

 

Company
to Provide Applicable Shares

 

The
Company shall from time to time as may be necessary, reserve, out of its authorized but unissued Common Stock, a sufficient number
of Applicable Shares to permit the exercise of the entire number of Warrants evidenced hereby.

 

The
certificates for Applicable Shares issued upon exercise, if any, may have notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company is subject or as the Company may deem necessary or desirable. By acceptance
of a certificate representing any Applicable Shares issued upon exercise of Warrants, the holder hereof acknowledges any restrictions
on transfer set forth on such certificate and agrees that such holder will transfer such Applicable Shares only as provided thereon.

 

All
Applicable Shares delivered upon exercise of Warrants shall be newly issued, duly authorized, validly issued, fully paid and non-assessable
and free from any lien or adverse claim. The Company will endeavor promptly to comply with all federal and state securities laws
regulating the offer and delivery of Applicable Shares upon exercise of Warrants, if any.

 

(a)
Adjustments for Subdivisions, Combinations or Consolidations.

 

(i)
Subdivisions. In the event that the Company shall effect a subdivision of outstanding Applicable Shares, the number of
Applicable Shares issuable upon exercise of this Warrant immediately prior to such subdivision shall be proportionately increased,
and the Exercise Price in effect immediately prior to such subdivision shall concurrently with such subdivision be proportionately
decreased.

 

(ii)
Combinations or Consolidations. In the event that the outstanding Applicable Shares shall be combined or consolidated,
by reclassification or otherwise, into a lesser number of Applicable Shares, the number of Applicable Shares issuable upon exercise
of this Warrant immediately prior to such combination or consolidation shall be proportionately decreased, and the Exercise Price
in effect immediately prior to such combination or consolidation shall, concurrently with the effectiveness of such combination
or consolidation, be proportionately increased.

 

(b)
Adjustment for Reclassification, Exchange or Substitution. If the Applicable Shares shall be changed into the same or a
different number of securities in any class or classes of securities, whether by capital reorganization, reclassification or otherwise
(other than a reorganization, merger, consolidation, or sale of assets provided for below), then and in each such event the holder
of each Warrant shall have the right thereafter to exercise such Warrant for the kind and amount of securities and other securities
and property receivable upon such reorganization, reclassification, or other change, by holders of the number of Applicable Shares
for which such Warrants might have been exercised immediately prior to such reorganization, reclassification or change, all subject
to further adjustment as provided herein.

 

    	 		 

    	 		 

    

 

(c)
Adjustment for Merger or Reorganization, etc. In case of any consolidation or merger of the Company with or into a corporation
or another entity or the conversion of the Company into a corporation by any other means, each Warrant shall thereafter be exercisable
for the kind and amount of equity interests or other securities or property to which a holder of the number of Applicable Shares
of the Company deliverable upon exercise of such Warrant would have been entitled upon such consolidation, merger or sale; and,
in such case, appropriate adjustment (as determined in good faith by the Board of Directors of the Company) shall be made in the
application of the provisions in this Paragraph (c) set forth with respect to the rights and interest thereafter of the holders
of the Warrants, to the end that the provisions set forth in this Section (including provisions with respect to changes in and
other adjustments of the number of Warrants evidenced hereby or the Exercise Price therefor) shall thereafter be applicable, as
nearly as reasonably may be, in relation to any equity interests or other property thereafter deliverable upon the exercise of
the Warrants.

 

(d)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to paragraphs (a) - (d)
hereof, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof
and furnish to each holder of a Warrant or Warrants a certificate setting forth such adjustment or readjustment and showing in
detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time
of any holder of a Warrant, furnish or cause to be furnished to such holder a similar certificate setting forth (i) such adjustments
and readjustments, (ii) the Exercise Price then in effect, and (iii) the number of Applicable Shares and the amount, if any, of
other property which then would be received upon the exercise of such Warrant.

 

Notice
of Certain Transactions

 

In
the event that (a) the Company takes any action which would require an adjustment in the Exercise Price, (b) the Company agrees
to undertake any transaction regarding an adjustment hereunder, or (c) there is a dissolution of liquidation of the Company, then
in each case, the Company shall mail to the holder a notice stating the proposed record or effective date, as the case may be.
The Company shall mail the notice at least five days before the earlier of the proposed record date or the proposed effective
date.

 

Transferability

 

This
instrument and the Warrants may not be transferred except as provided in the legend set forth on the first page hereof. Any permitted
Transfer shall be effected upon surrender of this instrument to the Company for such purpose, together with a written assignment
on the Form of Assignment attached hereto, or in other form satisfactory to the Company, duly executed by the holder hereof, together
with funds to pay any transfer, documentary, stamp or other taxes or government charges payable in connection with such transfer
and any other amounts required pursuant to this instrument. Upon the surrender of this instrument and payment as aforesaid, the
Company will deliver a new instrument, in the name of the assignee and evidencing Warrants in a permissible denomination or denominations
specified in such instrument of assignment. If less than all of the Warrants evidenced by this instrument are being transferred,
the Company will deliver a new instrument for the portion of the Warrants not being transferred.

 

    	 		 

    	 		 

    

 

No
Shareholder Rights

 

Nothing
contained in this instrument shall be construed as conferring upon the Investor or any other person the right to vote or to consent
or to receive notice as a shareholder in respect of meetings of shareholders for the election of members of the Board of Directors
of the Company or any other matters or any rights whatsoever as a shareholder of the Company; and no distributions shall be payable
or accrued in respect of this instrument or the interest represented hereby or the securities obtainable hereunder until, and
only to the extent that, the Warrants shall have been exercised.

 

Amendments

 

This
Instrument and the Warrants, or any portion thereof, may be amended or terminated, and any rights thereunder may be waived, discharged
or revised, at any time and from time to time (and any rights thereunder waived or modified) upon the written consent of the Company
and the Investor.

 

Governing
Law; Consent to Jurisdiction

 

This
Instrument and the Warrants will be interpreted and the rights and liabilities of the Investor and the Company determined in accordance
with the laws of the State of Illinois, without regard to its conflict of law provisions. Each of the Investor and the Company
hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in Cook County, Illinois, and consents
that all service of process be sent by nationally recognized overnight courier service directed to the Investor at the Investor’s
address set forth in the Unit Subscription Agreement or to the Company at the Company’s address set forth in the Unit Subscription
Agreement and service so made will be deemed to be completed when received by the Investor or the Company, as applicable. Each
of the Investor and the Company acknowledges and agrees that such venue is the most convenient forum for both the Investor and
the Company. Each of the Investor and the Company waives any objection to venue and any objection based on a more convenient forum
in any action instituted under this Note.

 

Waiver
of Jury Trial

 

THE
COMPANY AND THE INVESTOR, UPON RECEIPT OF THIS INSTRUMENT, IRREVOCABLY WAIVE ANY AND ALL RIGHTS THAT EACH MAY HAVE TO A TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS INSTRUMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH
THIS INSTRUMENT OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE COMPANY AND INVESTOR ACKNOWLEDGE THAT THE FOREGOING
WAIVER IS KNOWING AND VOLUNTARY.

 

Miscellaneous

 

If
this instrument at any time becomes mutilated, lost, stolen or destroyed, the Company will issue, in exchange and substitution
for and upon cancellation hereof, or in lieu of and in substitution for this instrument, a new instrument of like tenor and representing
an equivalent number of Warrants, but only upon receipt of evidence satisfactory to the Company of such loss, theft or destruction
and indemnity satisfactory to it. Applicants for such substitute instrument must also comply with such other regulations and pay
such other charges as the Company may prescribe.

 

The
Company may deem and treat the holder named on the final page hereof as the absolute owner of the Warrants evidenced hereby (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, any distribution to
the holder hereof and for all other purposes, and the Company shall not be affected by any notice to the contrary.

 

[Remainder
of Page Left Intentionally Blank; Signature Page Follows]

 

    	 		 

    	 		 

    

 

IN
WITNESS WHEREOF, the Company has caused this instrument to be executed as of the date below.

 

	Dated:
    November ___, 2016	QUANTUM
    MATERIALS CORP.
	 	 	 	 	 
	 	By:	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	 	 	 	 
	 	INVESTOR
	 	 
	 	If
    Individual:
	 	 	 	 	 
	 	Investor:	 	 
	 	 	 	 
	 	Investor
    Address:	 
	 	 	 
	 	 	 	 	 
	 	If
    Entity:
	 	 
	 	 
	 	Name
    of Entity
	 	 	 	 	 
	 	By:	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	 	 	 	 
	 	Investor
    Address:	 
	 	 	 

 

    	 		 

    	 		 

    

 

FORM
OF EXERCISE

 

(To
be executed upon exercise of Warrants)

 

The
undersigned holder hereby elects to exercise the Warrant (the “Warrant”) of Quantum Materials Corp., a Nevada
corporation (the “Company”) as specified below. Capitalized terms used herein and not otherwise defined shall
have the respective meanings set forth in the Warrant.

 

1.
Form of Exercise Price. The holder intends that payment of the aggregate Exercise Price shall be made as:

 

	 	[  ]	a
    “Cash Exercise” with respect to _________________ Applicable Shares; and/or
	 	 	 
	 	[  ]	a
    “Cashless Exercise” with respect to _______________ Applicable Shares.

 

In
the event that the holder has elected a Cashless Exercise with respect to some or all of the Applicable Shares to be issued pursuant
hereto, the holder hereby represents and warrants that this Form of Exercise was executed by the holder at __________ [a.m.][p.m.]
on the date set forth below.

 

2.
Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the
Applicable Shares to be issued pursuant hereto, the holder shall pay the aggregate Exercise Price in the sum of $___________________
to the Company in accordance with the terms of the Warrant.

 

3.
Delivery of Warrant Shares. The Company shall deliver to holder, or its designee or agent as specified below, __________
shares of Common Stock in accordance with the terms of the Warrant. Delivery shall be made to holder, or for its benefit, as follows:

 

[  ]   Check
here if requesting delivery as a certificate to the following name and to the following address:

 

	 	Issue
    to:	 
	 	 	 
	 	 	 

 

[  ]   Check
here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

 

	 	DTC
    Participant:	 
	 	DTC
    Number:	 
	 	Account
    Number:	 

 

Date:
_____________ __,

 

	 	 
	Name
    of Registered Holder	 
	 	 	 
	By:    	 	 
	Name:    	 	 
	Title:	            	 

 

	 	Tax
    ID:	 	 

 

	 	Facsimile:	 	 

 

	 	E-mail
    Address:	 	 

 

    	 		 

    	 		 

    

 

[FORM
OF ASSIGNMENT]

 

(To
be executed to transfer the Warrants)

 

FOR
VALUE RECEIVED, ____________________________________ the undersigned hereby sells, assigns and transfers unto

 

	 	 	 Name
	 	 	 Address
	 	 	 Social
    Security or Taxpayer Identification Number

 

___________
Warrants to purchase Applicable Shares (or such other securities or assets of the Company as are purchasable in their place) of
the within-named Company, together with all right, title and interest therein, and does hereby irrevocably con and appoint ___________,
Attorney, to transfer such Warrants on the books of the within-named Company, with full power of substitution. The holder hereby
represents and warrants to the Company that the transfer represented hereby is being made in accordance with the terms of the
instrument evidencing the Warrants.

 

	Date:_____________________	Signature:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}]]