Document:

Exhibit 10.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of January 26, 2021, by and among Quantum
Materials Corp., a Nevada corporation (the “Company”), and Pasaca Capital Inc., a Nevada corporation (as further
defined below, “Purchaser”).

 

RECITALS

 

Whereas,
in connection with the Securities Purchase and Financing Agreement,
dated as of January 26, 2021, by and among the parties hereto (the “Securities Purchase Agreement”), the Company
has agreed, upon the terms and subject to the conditions of the Securities Purchase Agreement, to issue and sell at the Closing
(as defined in the Securities Purchase Agreement) to Purchaser (i) senior secured convertible notes (“Notes”)
in the initial principal amount of Four Million Five Hundred Thousand Dollars ($4,500,000), initially convertible into an aggregate
of 154,228,625 shares (the “Note Shares”) of the Company’s common stock, par value $.001 per share (the
“Common Stock”) and (ii) for Ten Million Five Hundred Thousand Dollars ($10,500,000), shares of Common Stock
(the “Purchased Shares”) that, together with the Note Shares, represent fifty-one percent (51%) of the fully
diluted Common Stock of the Company immediately following the issuance of the Purchased Shares.

 

Whereas,
to induce Purchaser to purchase the Notes and the Purchased
Shares pursuant to the Securities Purchase Agreement, the Company has agreed to grant certain registration rights with respect
to the Registrable Securities (as hereinafter defined) as set forth in this Agreement).

 

Now,
Therefore,
in consideration of the premises and the mutual covenants set forth herein and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Section
1. Definitions. Capitalized terms used herein without definition shall have their respective meanings set forth in the
Securities Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“1933
Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor
statute.

 

“1934
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, or any similar
successor statute.

 

“Effectiveness
Deadline” means (a) the Initial Effectiveness Deadline or (y) an Additional Effectiveness Deadline or (z) a Post-Effective
Period Deadline (each as defined below), as applicable.

 

“Filing
Deadline” means the Initial Filing Deadline or an Additional Filing Deadline (each as defined below), as applicable.

 

“Holders”
shall mean persons holding Registrable Securities or having the right to have issued to them Registrable Securities, including
pursuant to conversion of Notes or pursuant to the Securities Purchase Agreement.

 

“Initial
Public Date” means the first date after the date of this Agreement on with the Company is current in its filings required
under Section 13 or Section 15(d) under the 1934 Act.

 

“Initiating
Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.

 

“New
Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights,
options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible
or exchangeable into or exercisable for such equity securities, that are offered or issued after the Effective Date.

 

    	 

     

    

 

“Person”
or “person” means any individual, firm, limited liability company, partnership, joint venture, corporation,
trust, unincorporated organization, government (or any department, agency or political subdivision thereof), or other entity of
any kind, including any successor of such entity.

 

“Purchaser”
means the initial Purchaser named in the preamble of this Agreement, together with any transferee or assignee thereof to whom
Purchaser assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance
with Section 10 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement
and who agrees to become bound by the provisions of this Agreement in accordance with Section 10. It is expressly contemplated
that persons to whom Purchased Shares, Notes, or Note Shares are transferred shall be included within the definition of the term
“Purchaser.”

 

“Register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415 under the 1933
Act or any successor rule providing for offering securities on a continuous or delayed basis (“Rule 415”),
and the declaration or ordering of effectiveness of such Registration Statement(s) by the United States Securities and Exchange
Commission (the “SEC”).

 

“Registrable
Securities” means (i) the Note Shares issued or issuable upon conversion of the Notes, (ii) the Purchased Shares issued
or issuable pursuant to the Securities Purchase Agreement, and (iii) any shares of capital stock issued or issuable with respect
to the Notes, the Note Shares, or the Purchased Shares as a result of any stock dividend or stock split or in connection with
a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise, without regard to any limitations
on conversion of the Notes or purchase of the Purchased Shares; provided, however, that any such Registrable Securities
shall cease to be Registrable Securities when (a) a Registration Statement with respect to the sale of such securities becomes
effective under the 1933 Act and such securities are disposed of in accordance with such Registration Statement, (b) such securities
are sold in accordance with Rule 144 (as defined in Section 9), (c) such securities become transferable without any restrictions
in accordance with Rule 144(b)(1)(i) (or any successor provision) or (d) such securities have been otherwise transferred, new
certificates for them not bearing a legend restricting further transfers have been delivered by the Company and subsequent public
distribution of such securities shall not require registration or qualification under the 1933 Act.

 

“Registration
Statement” means a registration statement or registration statements of the Company filed under the 1933 Act covering
the Registrable Securities.

 

“Trading
Day” means any day on which the Common Stock is traded on the principal securities exchange or securities market on
which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which
the Common Stock is scheduled to trade, or actually trades, on such exchange or market for less than 4.5 hours.

 

Section
2. Registration.

 

(a)
Demand Registration. If at any time after ninety (90) days after the Initial Public Date, the Company receives a request
from Holders of twenty percent (20%) of the Registrable Securities then issuable or outstanding that the Company file a Form S-1
or Form S-3 registration statement with respect to at least thirty percent (30%) of the Registrable Securities then issuable or
outstanding (or a lesser percent if the anticipated aggregate offering price, net of Selling Expenses, would exceed $fifteen (15)
million), then the Company shall: (x) within ten (10) days after the date such request is given, give notice thereof (the “Demand
Notice”) to all Holders other than the Initiating Holders; and (y) as soon as practicable, and in any event within forty-five
(45) days after the date such request is given by the Initiating Holders (the “Initial Filing Deadline”), file
a Form S-3 registration statement under the 1933 Act covering all Registrable Securities that the Initiating Holders requested
to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders,
as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given,
and in each case, subject to the limitations of Section 2(h). The Company shall use its best efforts to have the Registration
Statement declared effective by the SEC as soon as practicable, but in no event later than the date which is ninety days (90)
days after the Initial Filing Deadline (the “Initial Effectiveness Deadline”).

 

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(b)
Form S-3 Demand. If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request
from Holders of at least ten percent (10%)] of the Registrable Securities then issuable or outstanding that the Company file a
Form S-3 registration statement with respect to such Registrable Securities of such Holders having an anticipated aggregate offering
price, net of selling expenses, of at least $five (5) million, then the Company shall (i) within ten (10) days after the date
such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable,
and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration
statement under the 1933 Act covering all Registrable Securities requested to be included in such registration by any other Holders,
as specified by notice given by each such Holder to the Company within twenty (20) days of the date the Demand Notice is given,
and in each case, subject to the limitations of Section 2(h).

 

(c)
Allocation of Registrable Securities Among Holders. To the extent there exists more than one Initiating Holders and other
Holders requesting to be included in a registration, the initial number of Registrable Securities included in any Registration
Statement and each increase in the number of Registrable Securities included therein shall be allocated pro rata among the Initiating
Holders and other Holders requesting to be included in such registration based on the number of such Registrable Securities held
by each such person at the time the Registration Statement covering such initial number of Registrable Securities or increase
thereof is declared effective by the SEC. This shall apply to any underwriter cut-back pursuant to Section 2(h). In the event
that a Holder sells or otherwise transfers any of its Registrable Securities, each transferee shall be allocated a pro rata portion
of the then remaining number of Registrable Securities included in such Registration Statement for such transferor. Any shares
of Common Stock included in a Registration Statement and which remain allocated to any person which ceases to hold any Registrable
Securities covered by such Registration Statement shall be allocated to the remaining Initiating Holders and other Holders requesting
to be included in such registration, pro rata based on the number of Registrable Securities then held by such persons which are
covered by such Registration Statement. For purposes hereof, the number of Registrable Securities held by a Holder includes all
Registrable Securities issuable upon the conversion of Notes held by person or as to which the person has rights to acquire under
the Securities Purchase Agreement, without regard to any limitations on conversion of the Notes.

 

(d)
Legal Counsel. Subject to Section 6 hereof, Purchaser shall have the right to select one legal counsel to review any offering
pursuant to this Section 2 (“Legal Counsel”), which shall be Richardson & Maloney LLP or such other counsel
as thereafter designated by Purchaser. The Company shall reasonably cooperate with Legal Counsel in performing the Company’s
obligations under this Agreement.

 

(e)
Ineligibility for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable
Securities hereunder, the Company shall undertake to register the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

 

(f)
Sufficient Number of Shares Registered. In the event the number of shares available under the Registration Statement filed
pursuant to Section 2(a) or (b) is insufficient to cover all of the Registrable Securities required to be covered by the Registration
Statement or a Purchaser’s allocated portion of such Registrable Securities pursuant to Section 2(c), the Company shall,
as soon as practicable, but in any event not later than twenty (20) days after the necessity therefor arises (the “Additional
Filing Deadline”), amend the Registration Statement, or file a new Registration Statement (on the short form available
therefor, if applicable), or both, so as to register for resale at least that number of shares of Common Stock is equal to the
sum of (x) 150% of total number of shares issuable upon conversion of outstanding Notes and (y) 125% of total number of shares
issued or issuable as Purchased Shares, in each case as of the second Trading Day immediately preceding the date the Registration
Statement is initially filed with the SEC. The Company shall use its best efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing thereof, but in any event not later than sixty (60)
days following the filing thereof (the “Additional Effectiveness Deadline”). For purposes of the foregoing
provision, the number of shares available under the Registration Statement shall be deemed “insufficient to cover all of
the Registrable Securities” if as of any date of determination the number of shares of Common Stock is equal to the sum
of (x) 100% of the number of Note Shares and Purchased Shares outstanding as of such time and (y) 125% of total number of shares
issuable upon conversion of the outstanding Notes. The calculations set forth in this paragraph shall be made without regard to
any limitations on the conversion of the Notes, and such calculations shall assume that the Notes are then convertible into shares
of Common Stock at the then prevailing conversion price.

 

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(g)
Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) a Registration Statement
covering Registrable Securities and required to be filed by the Company pursuant to Section 2(a), 2(b) or 2(f) of this Agreement
is not (A) filed with the SEC on or before the applicable Filing Deadline or (B) declared effective by the SEC on or before the
applicable Effectiveness Deadline, (ii) the Company fails to timely perform its obligations set forth in clauses (a) through (g)
of Section 3 of this Agreement or (iii) on any day after a Registration Statement has been declared effective by the SEC sales
of all the Registrable Securities required to be included on such Registration Statement cannot be made (other than during the
period (the “Post-Effective Period”) beginning on the first day on which a post-effective amendment is required
to be filed by the Company pursuant to the undertakings referred to in Rule 415 of the 1933 Act and ending on the earlier of (x)
the forty-fifth (45th) day after such date and (y) the date on which such post-effective amendment is declared effective
by the SEC (a “Post-Effective Period Deadline”) or an Allowable Grace Period (as defined below)) pursuant to
such Registration Statement (including because of a failure to keep such Registration Statement effective, to disclose such information
as is necessary for sales to be made pursuant to such Registration Statement or to register sufficient shares of Common Stock,
as determined in accordance with Section 2(f)) (any such failure or breach being referred to as an “Event,”
and the date on which such Event occurs being referred to as the “Event Date”) then, in addition to any other
rights the holders of Notes may have hereunder or under applicable law, on each monthly anniversary of each such Event Date beginning
with the first monthly anniversary of the applicable Event Date (if the applicable Event shall not have been cured by such date
and if it has been cured, a pro rata amount of the amount that would otherwise be payable pursuant to this section 2(g) for the
period from the Event Date or the last monthly anniversary of such Event Date to the date such Event Date has been cured) until
the applicable Event is cured (each a “Liquidated Damages Payment Date”), the Company shall pay to each holder
of Registrable Securities an amount in cash, as partial liquidated damages and not as a penalty, with respect to each Liquidated
Damages Payment Date, equal to the product of (i) 1.5% of the original purchase price of the Registrable Securities held by such
holder, multiplied by (ii) a fraction, the numerator of which shall be the number of total calendar days which have passed since
the immediately preceding Liquidated Damages Payment Date and the denominator of which shall be 30 calendar days. If the Company
fails to pay any partial liquidated damages pursuant to this Section 2(g) in full in a timely manner, such payments shall bear
interest at the rate of 1.00% per month (prorated for partial months) until paid in full.

 

(h)
Underwritings. After the completion of the funding of the Notes and the Stock Payment, if, pursuant to this Section 2,
the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they
shall so advise the Company as a part of their request made pursuant to this Section 2, and the Company shall include such information
in the Demand Notice. The underwriter(s) will be selected by the Initiating Holders, subject only to the reasonable approval of
the Board of Directors. In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration
shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable
Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such
underwriting shall (together with the Company as provided in Section 2.4(e)) enter into an underwriting agreement in customary
form with the underwriter(s) selected for such underwriting; provided, however, that no Holder (or any of their assignees) shall
be required to make any representations, warranties or indemnities except as they relate to such Holder’s ownership of shares
and authority to enter into the underwriting agreement and to such Holder’s intended method of distribution, and the liability
of such Holder shall be several and not joint, and limited to an amount equal to the net proceeds from the offering received by
such Holder. Notwithstanding any other provision of this Section 2, if the managing underwriter(s) advise(s) the Initiating Holders
in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders
shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of
Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities,
including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each
Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number
of Registrable Securities held by the Holders to be included in such underwriting shall not be reduced unless all other securities
are first entirely excluded from the underwriting. To facilitate the allocation of shares in accordance with the above provisions,
the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.

 

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(i)
Company Registration. If the Company proposes to register (including for this purpose a registration effected by the Company
for stockholders other than the Holders) any of its Common Stock under the 1933 Act in connection with the public offering of
such securities solely for cash (other than in a registration relating to a demand pursuant to Section 2), the Company shall,
at such time, promptly give each Holder notice of such registration. Upon the request of each Holder given within twenty (20)
days after such notice is given by the Company, the Company shall, subject to the provisions of Section 2(h), cause to be registered
all of the Registrable Securities that each such Holder has requested to be included in such registration. The Company shall have
the right to terminate or withdraw any registration initiated by it under this Section 2(i) before the effective date of such
registration, whether or not any Holder has elected to include Registrable Securities in such registration. The expenses (other
than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Section 5.

 

(j)
For purposes of this Section 2, a registration shall not be counted as “effected” if, as a result of an exercise of
the underwriter’s cutback provisions in Section 2(h), fewer than sixty percent (60%) of the total number of Registrable
Securities that Holders have requested to be included in such registration statement are actually included.

 

Section
3. Related Obligations. At such time as the Company is obligated to file a Registration Statement with the SEC pursuant
to Section 2(a), 2(b) or 2(f), the Company will use its best efforts to effect the registration of the Registrable Securities
in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)
The Company shall promptly prepare and file with the SEC a Registration Statement with respect to the applicable Registrable Securities
(but in no event later than the applicable Filing Deadline) and use its best efforts to cause such Registration Statement relating
to the Registrable Securities to become effective as soon as practicable after such filing (but in no event later than the applicable
Effectiveness Deadline). No later than the first Business Day after such Registration Statement becomes effective, the Company
will file with the SEC the final prospectus included therein pursuant to Rule 424 (or successor thereto) promulgated under the
1933 Act. Other than during any Post-Effective Period, the Company shall keep each Registration Statement effective pursuant to
Rule 415 at all times until the earlier of (i) the date as of which Purchaser may sell all of the Registrable Securities covered
by such Registration Statement without restriction pursuant to Rule 144(b)(1)(i) (or successor thereto) promulgated under the
1933 Act or (ii) the date on which Purchaser shall have sold all the Registrable Securities covered by such Registration Statement
(the “Registration Period”). Such Registration Statement (including any amendments or supplements thereto and
any prospectuses (preliminary, final, summary or free writing) contained therein or related thereto shall not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading. The term “best efforts” shall mean,
among other things, that the Company (i) shall file a pre-effective amendment and otherwise respond in writing to comments made
by the SEC in respect of a particular Registration Statement within ten (10) Business Days after the receipt of comments by or
notice from the SEC that such amendment is required in order for such Registration Statement to be declared effective and (ii)
shall submit to the SEC, within five (5) Business Days after the Company learns that no review of a particular Registration Statement
will be made by the staff of the SEC or that the staff has no further comments on the Registration Statement, as the case may
be, a request for acceleration of effectiveness of such Registration Statement to a time and date not later than 48 hours after
the submission of such request.

 

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(b)
The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to
Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during
the Registration Period, and, during such Registration Period, comply with the provisions of the 1933 Act with respect to the
disposition of all Registrable Securities of the Company covered by such Registration Statement.

 

(c)
The Company shall (A) permit Legal Counsel to review and comment upon (i) the Registration Statement at least three (3) Business
Days prior to its filing with the SEC, and (ii) all amendments and supplements to all Registration Statements (except for Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and any similar or successor reports) within
a reasonable number of days prior to their filing with the SEC, and (B) not file any document, registration statement, amendment
or supplement described in the foregoing clause (A) in a form to which Legal Counsel reasonably objects within a reasonable time
prior to filing. The Company shall not submit a request for acceleration of the effectiveness of a Registration Statement or any
amendment or supplement thereto without providing prior notice thereof to Legal Counsel and each Purchaser. The Company shall
furnish to Legal Counsel, without charge, (i) promptly after the same is prepared and filed with the SEC, one copy of any Registration
Statement (which may be an electronic copy) and any amendment(s) thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits that have not been filed via the SEC’s Electronic Data Gathering Analysis
and Retrieval system (“EDGAR”) and (ii) upon the effectiveness of any Registration Statement, one copy of the
prospectus included in such Registration Statement and all amendments and supplements thereto. The Company shall reasonably cooperate
with Legal Counsel in performing the Company’s obligations pursuant to this Section 3.

 

(d)
The Company shall furnish to each Holder whose Registrable Securities are included in any Registration Statement, without charge,
(i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference that have not been filed
via EDGAR, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, at least one
copy of the prospectus included in such Registration Statement and all amendments and supplements thereto and (iii) such other
documents, including copies of any prospectus (preliminary, final, summary or free writing), as Purchaser may reasonably request
from time to time in order to facilitate the disposition of the Registrable Securities owned by Purchaser.

 

(e)
The Company shall use its best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Purchaser of the Registrable Securities covered by a Registration Statement under the securities or “blue
sky” laws of all applicable states of the United States, (ii) prepare and file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness
thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required
to qualify but for this Section 3(e) or (y) subject itself to service of process in suits (other than those arising out of the
offer and sale of the Registrable Securities) general taxation in any such jurisdiction. The Company shall promptly notify Legal
Counsel and each Purchaser who holds Registrable Securities of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any
proceeding for such purpose.

 

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(f)
The Company shall notify Legal Counsel and Purchaser in writing of the happening of any event, as promptly as practicable, and
in any event within three (3) Business Days, after becoming aware of such event, as a result of which the prospectus included
in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and promptly
prepare and file with the SEC a supplement or amendment to such Registration Statement to correct such untrue statement or omission,
and deliver at least one copy of such supplement or amendment to Legal Counsel and each Purchaser. The Company shall also promptly
notify Legal Counsel and each Purchaser in writing (i) when a prospectus or any prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness
shall be delivered to Legal Counsel and Purchaser by facsimile on the same day of such effectiveness and by overnight mail), (ii)
of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information,
and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate.

 

(g)
The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such
an order or suspension is issued, to obtain the withdrawal of such order or suspension as soon as reasonably practicable and to
notify Legal Counsel and each Purchaser who holds Registrable Securities being sold of the issuance of such order and the resolution
thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)
At the reasonable request (in the context of the securities laws) of Purchaser, the Company shall furnish to Purchaser, on the
date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as Purchaser may reasonably
request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and substance
as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed
to Purchaser, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration
Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to Purchaser.

 

(i)
At the reasonable request (in the context of and subject to securities laws, including Regulation FD) of Purchaser, the Company
shall make available for inspection during regular business hours by (i) Purchaser, (ii) Legal Counsel and (iii) one firm of accountants
or other agents retained by Purchaser (collectively, the “Inspectors”), all pertinent financial and other records,
and pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be
reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information
which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and
shall not make any disclosure (except to Purchaser) or use of any Record or other information which the Company determines in
good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure of such Records
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933
Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than
by disclosure in violation of this or any other agreement of which the Inspector has knowledge. Purchaser agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through
other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, the Records deemed confidential. Each Inspector which exercises its rights
under this Section 3(i) shall be obligated to execute a non-disclosure agreement containing such reasonable terms as the Company
may request. The fees and expenses of the Inspectors shall be borne by the applicable Purchaser.

 

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(j)
The Company shall hold in confidence and not make any disclosure of information concerning Purchaser provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning Purchaser
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to
Purchaser and allow Purchaser, at Purchaser’s expense, to undertake appropriate action to prevent disclosure of, or to obtain
a protective order for, such information.

 

(k)
The Company shall use its best efforts to (i) cause the Initial Public Date to occur on or before March 31, 2021, (ii) cause the
Common Stock to be listed on the New York Stock Exchange or on the NASDAQ Stock Market and to remain eligible for trading thereon,
(iii) cause all the Registrable Securities covered by a Registration Statement to be listed on each securities exchange on which
securities of the same class or series issued by the Company are listed, and (iv) without limiting the generality of the foregoing,
arrange for at least two market makers to register with the Financial Industry Regulatory Authority, Inc. (“FINRA”)
as such with respect to such Registrable Securities. The Company shall pay all fees and expenses in connection with satisfying
its obligation under this Section 3(k). Notwithstanding the anything to the contrary in the foregoing part of Section 3(k), the
obligations under Section 3(k) shall not be undertaken if the Board of Directors of the Company in the exercise of its good faith
business judgment determines that such actions would not be in the best interests of the Company and its shareholders or would
not be permitted by applicable law.

 

(l)
The Company shall cooperate with Purchaser who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as Purchaser may reasonably request and registered in such names as Purchaser may request.

 

(m)
The Company shall provide a transfer agent and registrar of all such Registrable Securities not later than the effective date
of the applicable Registration Statement.

 

(n)
If requested by Purchaser, the Company shall (i) as soon as reasonably practicable incorporate in a prospectus supplement or post-effective
amendment such information as an Purchaser requests to be included therein relating to the sale and distribution of Registrable
Securities, including information with respect to the number of Registrable Securities being offered or sold, the purchase price
being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon
as reasonably practicable make all required filings of such prospectus supplement or post-effective amendment after being notified
of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable,
supplement or make amendments to any Registration Statement if reasonably requested by an Purchaser of such Registrable Securities.

 

(o)
The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earning statement (in form complying with the provisions of Section 11 of the 1933
Act and Rule 158 promulgated under the 1933 Act) covering a twelve (12)-month period beginning not later than the first day of
the Company’s fiscal quarter next following the effective date of a Registration Statement.

 

    	8

     

    

 

(p)
The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

(q)
Within ten (10) Business Days after a Registration Statement which covers applicable Registrable Securities is ordered effective
by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such
Registrable Securities (with copies to Purchaser) confirmation that such Registration Statement has been declared effective by
the SEC in substantially the form attached hereto as Exhibit A, provided that if the Company changes its transfer agent,
it shall immediately deliver any previously delivered notices under this Section 3(q) and any subsequent notices to such new transfer
agent.

 

(r)
If required, the Company shall make such filings with FINRA (including providing all required information and paying required
fees thereto) as and when reasonably requested by Purchaser and make all other filings and reasonably promptly take all other
actions reasonably necessary to expedite and facilitate disposition by Purchaser of Registrable Securities pursuant to a Registration
Statement, including responding to any comments received from FINRA.

 

(s)
Notwithstanding anything to the contrary in Section 3(f), at any time after the applicable Registration Statement has been declared
effective by the SEC, the Company may delay the disclosure of material non-public information concerning the Company the disclosure
of which at the time is not, in the good faith opinion of the Board of Directors of the Company and its counsel, in the best interest
of the Company and, in the opinion of counsel to the Company, otherwise required (a “Grace Period”); provided,
that the Company shall promptly (i) notify Purchasers in writing of the existence of material non-public information giving rise
to a Grace Period (provided that in each notice the Company shall not disclose the content of such material non-public information
to Purchaser) and the date on which the Grace Period will begin, and (ii) notify Purchaser in writing of the date on which the
Grace Period ends; and, provided further, that (A) no Grace Period shall exceed fifteen (15) consecutive days, (B) during any
365-day period such Grace Periods shall not exceed an aggregate of thirty (30) days and (C) the first day of any Grace Period
must be at least five (5) Trading Days after the last day of any prior Grace Period (a Grace Period that satisfies all of the
requirements of this Section 3(s) being referred to as an “Allowable Grace Period”). For purposes of determining
the length of a Grace Period above, the Grace Period shall begin on and include the date the holders receive the notice referred
to in clause (i) and shall end on and include the later of the date the holders receive the notice referred to in clause (ii)
and the date referred to in such notice. The provisions of Section 3(f) hereof shall not be applicable during the period of any
Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by the provisions of Section 3(f)
with respect to the information giving rise thereto unless such material non-public information is no longer applicable. For the
purposes of this Section 3(s), “material nonpublic information” means information relating to the Company that has
not been made public but could reasonably have an impact on its share price.

 

Section
4. Obligations of Purchaser.

 

(a)
At least seven (7) Business Days prior to the first anticipated filing date of a Registration Statement and at least five (5)
Business Days prior to the filing of any amendment or supplement to a Registration Statement, the Company shall notify Purchaser
in writing of the information, if any, the Company requires from Purchaser if Purchaser elects to have any of Purchaser’s
Registrable Securities included in such Registration Statement or, with respect to an amendment or a supplement, if Purchaser’s
Registrable Securities are included in such Registration Statement (each an “Information Request”). Provided
that the Company shall have complied with its obligations set forth in the preceding sentence, it shall be a condition precedent
to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities
of Purchaser that Purchaser shall promptly furnish to the Company, within a reasonable time period prior to filing, in response
to an Information Request, such information regarding itself, the Registrable Securities held by it and the intended method of
disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable
Securities and shall execute such documents in connection with such registration as the Company may reasonably request. Purchaser
selling Registrable Securities pursuant to a Registration Statement shall be required to be named as a selling stockholder in
the related prospectus and, if required, to deliver or cause to be delivered a prospectus to purchasers.

 

    	9

     

    

 

(b)
Purchaser, by Purchaser’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless Purchaser has notified
the Company in writing of Purchaser’s election to exclude all of Purchaser’s Registrable Securities from such Registration
Statement.

 

(c)
Purchaser agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of 3(f), written notice from the Company of an Allowable Grace Period or written notice from the Company
that a previously effective Registration Statement is no longer effective, it will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement(s) covering such Registrable Securities until Purchaser’s receipt of the
copies of the supplemented or amended prospectus contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice
that no supplement or amendment is required or that the Allowable Grace Period has ended or that the Registration Statement is
effective. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of
Common Stock to a transferee of Purchaser in accordance with the terms of the Securities Purchase Agreement in connection with
any sale of Registrable Securities with respect to which Purchaser has entered into a contract for sale prior to Purchaser’s
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence
of 3(f) and for which Purchaser has not yet settled.

 

Section
5. Expenses of Registration. All expenses, other than underwriting discounts and commissions, incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3, including all registration, listing and qualifications
fees, printers and accounting fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company
shall also reimburse Purchaser for the reasonable fees and disbursements of Legal Counsel in connection with registration, filing
or qualification pursuant to Sections 2 and 3 of this Agreement up to a maximum amount of $35,000.

 

Section
6. Indemnification. In the event any Registrable Securities are included in a Registration Statement under this Agreement:

 

(a)
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend Purchaser, the
directors, officers, partners, members, managers, employees, agents, representatives of, and each person, if any, who controls
Purchaser within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement
or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto
or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or
alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary, final, summary or free
writing prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC)
or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light
of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged violation by
the Company of the 1933 Act, the 1934 Act, any other law, including any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any breach, default or
violation of this Agreement by the Company (the matters in the foregoing clauses (i) through (iv), collectively, “Violations”).
Subject to Section 6(c), the Company shall reimburse the Indemnified persons, promptly as such expenses are incurred and are due
and payable, for any legal fees or other expenses reasonably incurred by them in connection with investigating or defending any
such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section
6(a) and the contribution agreement contained in Section 7: (i) shall not apply to a Claim by an Indemnified person arising out
of or based solely upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the
Company by such Indemnified person for such Indemnified person expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto or any preliminary, final, summary or free writing prospectus or
any amendment thereof or supplement thereto, if such Registration Statement or preliminary, final, summary or free writing prospectus
was timely made available by the Company pursuant to Section 3(d) and (ii) shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified
person and shall survive the transfer of the Registrable Securities by Purchaser pursuant to Section 9.

 

    	10

     

    

 

(b)
Purchaser covered by a Registration Statement agrees to severally and not jointly indemnify, hold harmless and defend, to the
same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who
signs the Registration Statement, and each person, if any, who controls the Company within the meaning of the 1933 Act or the
1934 Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become
subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based
upon any Violation by such Purchaser, in each case to the extent, and only to the extent, that such Violation occurs in reliance
upon and in conformity with written information furnished to the Company by such Purchaser expressly for use in connection with
such Registration Statement or any such amendment thereof or supplement thereto or any related preliminary, final, summary or
free writing prospectus or any amendment thereof or supplement thereto; and, subject to Section 6(c), such Purchaser shall reimburse
the Indemnified Parties, promptly as such expenses are incurred and are due and payable, for any legal fees or other expenses
reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Purchaser,
which consent shall not be unreasonably withheld; provided, further, however, that the aggregate liability of Purchaser in connection
with any Violation shall not exceed the net proceeds to such Purchaser as a result of the sale of Registrable Securities pursuant
to the Registration Statement giving rise to such Claim. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by Purchaser
pursuant to Section 9.

 

    	11

     

    

 

(c)
Promptly after receipt by an Indemnified person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly notified, to assume control
of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified person or the Indemnified
Party, as the case may be. In any such proceeding, any Indemnified person or Indemnified Party may retain its own counsel, but,
except as provided in the following sentence, the fees and expenses of that counsel will be at the expense of that Indemnified
person or Indemnified Party, as the case may be, unless (i) the indemnifying party and the Indemnified person or Indemnified Party,
as applicable, shall have mutually agreed to the retention of that counsel, (ii) the indemnifying party does not assume the defense
of such proceeding in a timely manner or (iii) in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel for the Indemnified person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified person or Indemnified Party and any other party represented by such
counsel in such proceeding. In the event the Company is the indemnifying party, the Company shall pay reasonable fees for up to
one separate legal counsel for Purchaser, and such legal counsel shall be selected by Purchaser. The Indemnified Party or Indemnified
person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Claim
by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified
Party or Indemnified person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or
Indemnified person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.
No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written
consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying
party shall, without the prior written consent of the Indemnified Party or Indemnified person, consent to entry of any judgment
or enter into any settlement or other compromise with respect to any pending or threatened action or claim in respect of which
indemnification or contribution may be or has been sought hereunder (whether or not the Indemnified Party or Indemnified person
is an actual or potential party to such action or claim) which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such Indemnified Party or Indemnified person of a release from all liability in respect to such Claim
or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of
the Indemnified Party or Indemnified person with respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time
of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified person or
Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend
such action.

 

(d)
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

Section
7. Contribution. To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying
party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no person involved in the sale of Registrable Securities
which person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with
such sale, shall be entitled to contribution from any person involved in such sale of Registrable Securities who was not guilty
of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited to an amount equal
to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to the Registration
Statement giving rise to such action or claim for indemnification less the amount of any damages that such seller has otherwise
been required to pay in connection with such sale.

 

Section
8. Reports under the 1934 Act. With a view to making available to Purchaser the benefits of Rule 144 promulgated under
the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit Purchaser to sell securities of the
Company to the public without registration (“Rule 144”), the Company agrees to:

 

(a)
make and keep adequate current public information available, as those terms are understood and defined in Rule 144;

 

(b)
file with the SEC in a timely manner all reports and other documents required of the Company under the 1934 Act so long as the
Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s obligations
under Section 4(c) of the Securities Purchase Agreement) and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

    	12

     

    

 

(c)
furnish to Purchaser so long as Purchaser owns Registrable Securities, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144 and the 1934 Act, (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be
reasonably requested to permit the Purchaser to sell such securities pursuant to Rule 144 without registration.

 

Section
9. Assignment of Registration Rights. The rights under this Agreement shall be automatically assignable by Purchaser to
any transferee of all or any portion of Registrable Securities if: (i) Purchaser agrees in writing with the transferee or assignee
to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such transfer or
assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of
(a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights
are being transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities
by the transferee or assignee is restricted under the 1933 Act and applicable state securities laws; (iv) at or before the time
the Company receives the written notice contemplated by clause (ii) of this sentence, the transferee or assignee agrees in writing
with the Company to be bound by all of the provisions contained herein, and (v) such transfer shall have been made in accordance
with the applicable requirements of the Securities Purchase Agreement.

 

Section
10. Amendment of Registration Rights. Provisions of this Agreement may be amended and the observance thereof may be waived
(either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the
Company and persons comprising Purchaser who then hold at least a majority of the Registrable Securities. Any amendment or waiver
effected in accordance with this Section 10 shall be binding upon Purchaser and the Company. No such amendment shall be effective
to the extent that it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered
or paid to any person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same
consideration also is offered to all of the parties to this Agreement.

 

Section
11. Rights to Future Stock Issuances.

 

(a)
Right of First Offer. Subject to the terms and conditions of this Section 11(a) and applicable securities laws, if the
Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to each Holder. A Holder
shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among
(i) itself, (ii) its Affiliates and (iii) its beneficial interest holders, such as limited partners, members or any other person
having “beneficial ownership,” as such term is defined in Rule 13d-3 promulgated under the 1934 Act, of such Holder
(“Holder Beneficial Owners”); provided that each such Affiliate or Holder Beneficial Owner (x) agrees to enter
into this Agreement, and (y) agrees to purchase at least such number of New Securities as are allocable hereunder to the Holder
holding the fewest number of Registrable Securities (assuming conversion of all Notes).

 

(i)
The Company shall give notice (the “Offer Notice”) to each Holder, stating (i) its bona fide intention to offer
such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it
proposes to offer such New Securities.

 

    	13

     

    

 

(ii)
By notification to the Company within twenty (20) days after the Offer Notice is given, each Holder may elect to purchase or otherwise
acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the
proportion that the Common Stock then held by such Holder (including all shares of Common Stock then issuable (directly or indirectly)
upon conversion of the Notes) bears to the total Common Stock of the Company then outstanding (assuming full conversion of the
Notes). At the expiration of such twenty-day (20-day) period, the Company shall promptly notify each Holder that elects to purchase
or acquire all the shares available to it (each, a “Fully Exercising Investor”) of any other Holder’s
failure to do likewise. During the ten-day (10-day) period commencing after the Company has given such notice, each Fully Exercising
Investor may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of shares specified above,
up to that portion of the New Securities for which Holders were entitled to subscribe but that were not subscribed for by the
Holders which is equal to the proportion that the Common Stock issued and held, or issuable (directly or indirectly) upon conversion
of the Notes, bears to the Common Stock issued and held, or issuable (directly or indirectly) upon conversion of the Notes, by
all Fully Exercising Investors who wish to purchase such unsubscribed shares. The closing of any sale pursuant to this Section
11(a)(ii) shall occur within the later of ten (10) business days of the date that the Offer Notice is given and the date of initial
sale of New Securities pursuant to Section 11(a)(iii).

 

(iii)
If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Section 11(a)(ii),
the Company may, during the ten-business-day (10-busniess-day) period following the expiration of the periods provided in Section
11(a)(ii), offer and sell the remaining unsubscribed portion of such New Securities to any person or persons at a price not less
than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter
into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within ten (10)
days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be
offered unless first reoffered to the Holders in accordance with this Section 11(a).

 

(iv)
The right of first offer in this Section 11(a) shall not be applicable to (i) securities issued pursuant to options granted under
the Company’s stock option plans, the grant of which was approved by the Board of Directors or restricted stock issued to
new hires, provided that such stock is subject to vesting of at least twenty-five percent (25%) at the end of year one of service
and the balance vesting ratably over the next thirty-six (36) months and (ii) the issuance of Purchased Shares pursuant to the
Securities Purchase Agreement.

 

Section
12. Miscellaneous.

 

(a)
The provisions of this Agreement shall apply to the full extent set forth herein with respect to (i) the shares of Common Stock,
(ii) any and all shares of voting common stock of the Company into which the shares of Common Stock are converted, exchanged or
substituted in any recapitalization or other capital reorganization by the Company and (iii) any and all equity securities of
the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may
be issued in respect of, in conversion of, in exchange for or in substitution of, the shares of Common Stock and shall be appropriately
adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date
hereof. The Company shall cause any successor or assign (whether by merger, consolidation, sale of assets or otherwise) to enter
into a new registration rights agreement with Purchaser on terms substantially the same as those remaining under this Agreement
as a condition of any such transaction.

 

(b)
A person is deemed to be a holder of Registrable Securities whenever such person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

    	14

     

    

 

(c)
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when
sent by electronic transmission (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses and electronic transmission numbers for such communications
shall be:

 

If
to the Company:

 

Quantum
Materials Corp.

3055
Hunter Road

San
Marcos, Texas 78666

Attention:
Steve Squires

 

With
copy to:

 

Grable
Martin Fulton PLLC

4316
Shenandoah St

Dallas,
TX 75205

Email:
dwant@grablemartin.com

Attention:
David M. Wang, Esq.

 

If
to a Purchaser:

 

Pasaca
Capital Inc.

800
East Colorado Boulevard, Suite 888

Pasadena,
CA 91101

Facsimile:

Email:
Robert.Kasprzak@PasacaCapital.com

Attention:
Chief Legal Officer

 

With
copy to:

 

Richardson
& Maloney LLP

2071
North Altadena Drive

Altadena,
California 91001

Email:
es@RichardsonMaloney.com

Attention:
Edward T. Swanson, Esq.

 

Written
confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine or computer containing the time, date, recipient facsimile number
and, in the case of an electronic facsimile, an image of the first page of such transmission or (C) provided by a courier or overnight
courier service shall be rebuttable evidence of personal service, receipt by facsimile or deposit with a nationally recognized
overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively. Each party to this Agreement (including
a Holder by transfer of Registrable Securities (including on an as-exercised or as-converted basis) may change or add its address
for notice by notice to the other parties pursuant to this Section 12(c). Notwithstanding the foregoing, the Company or its counsel
may transmit versions of any Registration Statement (or any amendments or supplements thereto) to Legal Counsel in satisfaction
of its obligations under Section 3(c) to permit Legal Counsel to review such Registration Statement prior to filing (and solely
for such purpose) by email to es@richardsonmaloney.com, provided that delivery and receipt of such transmission shall be
confirmed by electronic, telephonic or other means.

 

(d)
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

    	15

     

    

 

(e)
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of California, including Section 1646.5 of the California Civil Code, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of California or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of California. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting the County of Los Angeles, California, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)
This Agreement and the other Transaction Documents constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein and therein. This Agreement and the other Transaction Documents supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof. The Company shall not enter into any agreement
with respect to its securities that is inconsistent with the rights granted to Purchaser in this Agreement.

 

(g)
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors
and assigns of each of the parties hereto.

 

(h)
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(i)
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to each other party; provided
that an electronic signature (including facsimile or PDF) shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not an electronic signature.

 

(j)
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
The rights of each Holder under this Agreement shall be exercisable severally by each such person and the obligations of Company
under this Agreement shall be for the benefit of each Holder. All consents and other determinations to be made by Purchaser pursuant
to this Agreement shall be made, unless otherwise specified in this Agreement, by persons comprising Purchaser holding at least
a majority of the Registrable Securities, determined as if all of the Notes then outstanding have been exercised for Registrable
Securities without regard to any limitations on conversion of the Notes. Any consent or other determination approved by Purchasers
as provided in the immediately preceding sentence shall be binding on all persons comprising Purchaser.

 

(l)
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

    	16

     

    

 

(m)
Purchaser shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies that Purchaser
has been granted at any time under any other agreement or contract and all of the rights that Purchaser has under any law. Any
person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without
posting a bond or other security or proving actual damages), to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law.

 

(n)
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns and, to
the extent provided in Sections 6(a) and 6(b) hereof, each Purchaser, the directors, officers, partners, members, managers, employees,
agents, representatives of, and each person, if any, who controls any Purchaser within the meaning of the 1933 Act and the 1934
Act and each of the Company’s directors, each of the Company’s officers who signs the Registration Statement, and
each person, if any, who controls the Company within the meaning of the 1933 Act and the 1934 Act, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

 

(o)
Unless the context otherwise requires, (i) all references to Sections, Schedules or Exhibits are to sections, schedules or exhibits
contained in or attached to this Agreement, (ii) each accounting term not otherwise defined in this Agreement has the meaning
assigned to it in accordance with GAAP, (iii) words in the singular or plural (including Purchaser) include the singular and plural
and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter and
(iv) the use of the word “including” in this Agreement shall be by way of example rather than limitation.

 

*
* * * * *

 

    	17

     

    

 

IN
WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above
written.

 

	 	“The Company”
	 	 
	 	Quantum Materials Corp.

        

	 	 	 
	 	By
    	/s/
    Stephen Squires
	 	
    	Steve Squires
	 	
    	President & CEO

 

	 	“Pasaca”
	 	 
	 	Pasaca Capital Inc.

        

	 	 	 
	 	By
    	/s/
    Charles Huang         
	 	Name:
    	Charles Huang
	 	Title:
    	Chairman and CEO

 

    	18

     

    

 

SCHEDULE
OF PURCHASERS

 

	Purchaser’s
    Name	 	Purchaser Address and Facsimile

                                                                                Number
	 	Purchaser’s
                                         Legal Representative’s

        Address,
        Email Address, and

        Facsimile Number

	 	 	 	 	 
	Pasaca
    Capital Inc. 	 	800
                                         East Colorado Boulevard, Suite 888

        Pasadena,
        CA 91101

        Attention:
Chief Legal Officer

        Robert.Kasprzak@PasacaCapital.com
	 	Richardson
                                         & Maloney LLP

                                                                              2071
North Altadena Drive

        Altadena,
        California 91001

        Email:
        es@RichardsonMaloney.com

        Attention: Edward T. Swanson, Esq.

 

    	 

     

    

 

EXHIBIT
A

 

FORM
OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Transfer
Agent]

[Address]

[Address]

Facsimile:

Attention:

 

	 	Re:	[Issuer]

 

Ladies
and Gentlemen:

 

We
are counsel to Quantum Materials Corp., a Nevada corporation (the “Company”), and have represented the Company
in connection with that certain Securities Purchase and Financing Agreement (the “Securities Purchase Agreement”)
entered into by and among the Company and Purchaser named therein (collectively with transferees as defined in the Securities
Purchase Agreement, “Purchaser”) pursuant to which the Company issued to Purchaser shares of the Company’s
common stock, no par value $.001 per share (the “Common Stock”) and Notes (as defined in the Securities Purchase
Agreement) convertible into shares of Common Stock. Pursuant to the Securities Purchase Agreement, the Company also has entered
into a Registration Rights Agreement with Purchaser (the “Registration Rights Agreement”) pursuant to which
the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement),
including the shares of Common Stock issuable upon conversion of the Notes, under the Securities Act of 1933, as amended (the
“1933 Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on
, 2021, the Company filed a Registration Statement on Form [S- ] (File No. 333- ) (the “Registration Statement”)
with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities which names
each Initiating Holder (as defined in the Registration Rights Agreement) and each other Holder (as defined in the Registration
Rights Agreement) requesting to be included in such registration as a selling stockholder thereunder.

 

In
connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on
[ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff,
that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant to the Registration
Statement.

 

	 	Very truly yours,
	 	 	 
	 	[ISSUER’S COUNSEL]
	 	 	 
	 	By	              

 

cc:
Initiating Holders and Other Holders of Registrable Securities (See Annex 1)

 

    	 

     

    

 

Annex
1

 

Holders

 

[LIST
NAMES OF HOLDERS]Exhibit 10.4

 

DISTRIBUTION
AGREEMENT

 

This
Distribution Agreement (the “Agreement”), effective as of the date of January 26, 2020 (the “Effective Date”),
by and between Quantum Materials Corp., a Nevada corporation (“QMC”), and Pasaca Capital Inc., a Nevada corporation
(“Pasaca”). Both QMC and Pasaca may be referred to individually as a “Party” and collectively as the “Parties.”

 

WHEREAS
QMC produces quantum dots and nanoparticles that can be applied in a variety of applications across multiple industries (the “Quantum
Dots”). QMC employs quantum dots in products and services that it offers in the marketplace and as components of products
developed and distributed by QMC customers.

 

WHEREAS
QMC HealthID Incorporated, a Nevada corporation, is a wholly owned subsidiary of QMC, and provides QMCTM HealthID, an application-based
platform that allows individuals to share their health status (the “QMCTM HealthID IP”).

 

WHEREAS
Pasaca and its affiliates desire to resell, distribute and act as a sales representative for Quantum Dots and the QMCTM HealthID
IP.

 

WHEREAS
QMC desires to grant to Pasaca and its affiliates the authority to resell, distribute and act as a sales representative for Quantum
Dots and the QMCTM HealthID IP.

 

NOW,
THEREFORE, in consideration of the mutual promises in this Agreement and other good and valuable consideration, the receipt and
sufficiency of which are acknowledged by the Parties, the Parties agree as follows:

 

	 	1.	Appointment.
    QMC hereby appoints Pasaca to act as a resell, distribute and act as an independent distributor of Quantum Dots and the QMCTM
    HealthID IP (the “Distribution Rights”) pursuant to this Agreement. Pasaca is authorized to assign and delegate
    the Distribution Rights (and the associated obligations) to certain of its subsidiaries and other of its designees (the “Designees”),
    and, for avoidance of doubt, the performance of obligations by a Designee shall be credited to the obligations of Pasaca in
    this Agreement. The Designees may be amended by written consent of QMC, which shall not be unreasonably withheld, conditioned
    or delayed, and such assignment and delegation shall be effective only after such Designee enters into this Agreement pursuant
    a joinder agreement acceptable to QMC. Subject to such joinder, Pasaca shall, absent the consent of QMC, be responsible for
    the performance of its Designees. Upon executing a joinder agreement, a Designee shall also be a Party to this Agreement to
    the extent provided in such joinder agreement.
	 	 	 
	 	2.	Status
    as Independent Contractor. Pasaca and any Designees are independent contractors pursuant to this Agreement. Nothing in
    this Agreement creates any agency, joint venture, partnership, or other form of joint enterprise, employment, or fiduciary
    relationship between the Parties. Neither Party has any express or implied right or authority to assume or create any obligations
    on behalf of or in the name of the other Party or to bind the other Party to any contract, agreement, or undertaking with
    any third party. Pasaca and any Designees shall be solely responsible for any and all costs or expenses that it may incur
    in the performance of its obligations hereunder.

 

    	Page 1

     

    

 

	 	3.	Minimum
    Guaranteed Revenues. Pasaca guarantees to QMC (i) cumulative gross royalties and/or gross sales, licensing or other revenues
    generated from the activities of Pasaca and Designees in an amount of no less than Fifteen Million Dollars ($15,000,000) (the
    “Minimum Revenues”) over the period including 2020 and continuing until 12 months after QMC has completed development
    of a functioning product integrating the QMCTM HealthID IP and Innova Medical Group, Inc.’s products (the “Revenue
    Period”). If at the end of the Revenue Period the Minimum Revenues have not been achieved, Pasaca may extend the Revenue
    Period by up to 24 months by payment to QMC of advance royalties (to be credited against Minimum Revenues) of $25,000 for
    each six-month extension period. If at the end of the Revenue Period, as it may be extended, the Minimum Revenues have not
    been achieved and QMC is otherwise not in breach of this Agreement, Pasaca shall purchase from QMC advance royalties in an
    amount equal to the deficiency.
	 	 	 
	 	4.	Revenue
    Calculations.

 

(a)
QMC shall maintain an account (the “Revenue Account”) that shall be increased by the amount of revenue actually received
from Qualifying Sales (net of refunds and applicable credits from returns). The Revenue Account shall be provided to Pasaca at
least monthly and shall be subject to audit at Pasaca’s request.

 

(b)
“Qualifying Sales” means sales activities of Pasaca or Designees of Quantum Dots or relating to the QMCTM HealthID
IP and shall include and sales to third-party customers, Pasaca or Designees. As used herein, “sales” includes all
methods of commercialization, including but not limited to royalties, licenses and product sales. For avoidance of doubt, the
Parties agree that the current contemplated transactions, including those with Nuffield, are Qualifying Sales and the revenues
associated therewith or arising therefrom will apply in meeting the Minimum Revenues.

 

	 	5.	Additional
    QMC Obligations. QMC shall, as soon as is practicable (a) develop a functioning product integrating QMCTM HealthID
    and Innova Medical Group, Inc.’s products (b) integrate the QMCTM HealthID technology with Pasaca’s analytics
    engine partner, Enabling Tech Capital, Ltd. and Pasaca’s COVID-19 rapid test kit providers as identified by Pasaca.
    During the term of this Agreement, QMC shall diligently support, update, upgrade and keep current all such intellectual property
    and its full integration as contemplated herein.
	 	 	 
	 	6.	Other
    Agreements. The Parties may enter into other agreements applicable to the sale and distribution of Quantum Dots and the
    QMCTM HealthID IP (the “Additional Agreements”). Additional Agreements shall be supplemental to this Agreement,
    except that in any case where the terms of an Additional Agreement are inconsistent with the terms of this Agreement, the
    terms of this Agreement shall supersede those of the Additional Agreement, except if the inconsistent terms of the Additional
    Agreement are stipulated expressly to supersede this Agreement. It is the intent of the Parties that this Agreement not set
    forth all of the terms of the sale and distribution of Quantum Dots and the QMCTM HealthID IP. The Parties anticipate
    entering into an intellectual property agreement relating to any jointly developed intellectual property and the ownership
    and cross-licensing thereof.

 

    	Page 2

     

    

 

	 	7.	Orders.

 

(a)
All sales solicited by Pasaca or Designees are subject to approval, rejection or modification by QMC. Pasaca and Designees shall
have no authority to enter into any agreement on behalf of QMC or to otherwise bind QMC to sell or deliver any Quantum Dots and
QMCTM HealthID IP. Pasaca and Designees shall promptly notify QMC with respect to all sales prospects, including forwarding
to QMC all orders, requests for quotation and sales inquiries.

 

(b)
QMC reserves the right, in good faith, to:

 

(i)
accept, or decline to accept, any order received from any party whether or not solicited by Pasaca or Designees;

 

(ii)
cancel, terminate, or modify any order previously accepted by QMC; or

 

(iii)
negotiate any terms and conditions of any order, including modifying the purchase price or payment terms.

 

	 	8.	General
    Pasaca and Designee Obligations. Pasaca and Designees shall at its own expense:

 

(a)
market, advertise, promote, and solicit the sale of Quantum Dots and the QMCTM HealthID IP with good business practice, in
each case using its best efforts to maximize sales volume;

 

(b)
initiate and attend sales calls and meetings with prospective and existing customers;

 

(c)
develop and execute a sales and marketing plan sufficient to fulfill its obligations under this Agreement;

 

(d)
observe all directions and instructions given to it by QMC in relation to the marketing, advertisement, and promotion of Quantum
Dots and the QMCTM HealthID IP;

 

(e)
market, advertise, promote and solicit the sale of Quantum Dots and the QMCTM HealthID IP and conduct business in a manner
that reflects favorably at all times on the good name, goodwill, and reputation of QMC;

 

    	Page 3

     

    

 

(f)
promptly notify QMC of any complaint or adverse claim about any product or its use; and

 

(g)
provide, upon QMC’s request, assistance to QMC to collect payment from customers of amounts due.

 

	 	9.	Prohibited
    Acts. Notwithstanding anything to the contrary in this Agreement, neither Pasaca and Designees nor its personnel shall
    directly or indirectly:

 

(a)
make any representations, warranties, guarantees, indemnities, similar claims, or other commitments: (i) actually, apparently,
or ostensibly on behalf of QMC, or (ii) to any party with respect to Quantum Dots or the QMCTM HealthID IP, which representations,
warranties, guarantees, indemnities, similar claims, or other commitments are additional to or inconsistent with any then-existing
representations, warranties, guarantees, indemnities, similar claims, or other commitments in this Agreement or any written documentation
provided by QMC;

 

(b)
engage in any unfair, anti-competitive, misleading, or deceptive practices respecting Quantum Dots or the QMCTM HealthID
IP, including any product disparagement; or

 

(c)
sell, market, advertise, promote, solicit the sale of, or offer to sell any goods that compete with the products of Supplier,
except to the extent this restriction is prohibited by applicable Law.

 

	 	10.	Compliance
    with Laws. Pasaca and Designees shall at all times comply with all laws. Without limiting the generality of the foregoing,
    Pasaca and Designees shall not engage in any activity or transaction involving Quantum Dots or the QMCTM HealthID IP,
    by way of marketing, promotion, advertising, the solicitation of the sale, lease, use, or otherwise, that violates any law.
	 	 	 
	 	11.	Intellectual
    Property Rights. The Parties acknowledges and agrees that:

 

(a)
any and all QMC intellectual property rights are the sole and exclusive property of QMC;

 

(b)
any and all Pasaca or Designee intellectual property rights are the sole and exclusive property of Pasaca or such Designee, as
applicable;

 

(c)
Pasaca and Designees shall not acquire any ownership interest in any QMC intellectual property right under this Agreement;

 

(d)
QMC shall not acquire any ownership interest in any Pasaca or Designee intellectual property right under this Agreement;

 

    	Page 4

     

    

 

(e)
any goodwill derived from the use by Pasaca and Designees of QMC intellectual property inures to the benefit of QMC;

 

(f)
any goodwill derived from the use by QMC of Pasaca or Designee intellectual property inures to the benefit of Pasaca or such Designee,
as applicable;

 

(g)
if Pasaca or Designees acquires any intellectual property rights in or relating to Quantum Dots or the QMCTM HealthID IP
(including any rights in any trademarks, derivative works or patent improvements relating thereto), by operation of law, or otherwise,
such rights are deemed and are hereby irrevocably assigned to QMC without further action by either of the Parties;

 

(h)
if QMC acquires any intellectual property rights in or relating to Pasaca or Designee intellectual property (including any rights
in any trademarks, derivative works or patent improvements relating thereto), by operation of law, or otherwise, such rights are
deemed and are hereby irrevocably assigned to Pasaca or such Designee, as applicable, without further action by either of the
Parties;

 

(i)
Pasaca and Designees shall use QMC intellectual property rights solely for the purposes of performing its obligations under this
Agreement and only in accordance with this Agreement and the instructions of QMC; and

 

(j)
QMC shall use Pasaca and Designees intellectual property rights solely for the purposes of performing its obligations under this
Agreement and only in accordance with this Agreement and the instructions of Pasaca and Designees.

 

	 	12.	IP
    License. Subject to QMC’s trademark policies, which may be amended from time to time in QMC’s sole discretion,
    and the terms and conditions of this Agreement and any Additional Agreement, QMC hereby grants to Pasaca and Designees a non-exclusive,
    non-transferable, and non-sublicensable license to use QMC’s trademarks solely on or in connection with the marketing,
    promotion, advertising, and sale of Quantum Dots and the QMCTM HealthID IP. In connection therewith and subject the terms
    and conditions of this Agreement and any Additional Agreement, Pasaca and Designees shall not, and shall not cause or encourage
    other parties to:

 

(a)
take any action that may interfere with any of QMC’s rights in or to QMC’s intellectual property rights, including
QMC’s ownership or exercise thereof;

 

(b)
challenge any right, title, or interest of QMC in or to QMC’s intellectual property rights;

 

(c)
make any claim or take any action adverse to QMC’s ownership of QMC’s intellectual property rights;

 

(d)
register or apply for registrations, anywhere in the world, for QMC’s trademarks or any other trademark that is similar
to QMC’s trademarks;

 

    	Page 5

     

    

 

(e)
engage in any action that tends to disparage, dilute the value of, or reflect negatively on Quantum Dots or the QMCTM HealthID
IP; and

 

(f)
alter, obscure, or remove any of QMC’s trademarks or trademark or copyright notices or any other proprietary rights notices
placed on Quantum Dots and QMCTM HealthID, marketing materials, or other materials that QMC may provide.

 

QMC
reciprocally agrees to the foregoing with respect to Pasaca and Designee intellectual property.

 

	 	13.	Term;
    Termination.

 

(a)
The term of this Agreement commences on the Effective Date and continues for a period of five years, unless and until terminated
as provided under this Agreement (the “Initial Term”).

 

(b)
Upon expiration of the Initial Term, this Agreement automatically renews for additional successive five (5) year terms unless
and until either Party provides written notice of nonrenewal at least 90 days prior to the end of the then-current term (each
a “Renewal Term” and together with the Initial Term, the “Term”), or unless and until sooner terminated
as provided under this Agreement. If the Term is renewed for any Renewal Term(s) pursuant to this Section 13(b), the terms and
conditions of this Agreement during each such Renewal Term are the same as the terms in effect immediately prior to such renewal.
In the event either Party provides timely notice of its intent not to renew this Agreement, then, unless earlier terminated in
accordance with its terms, this Agreement terminates on the expiration of the Initial Term or then-current Renewal Term, as applicable.

 

(c)
QMC may terminate this Agreement by providing written notice to Pasaca or a Designee, as applicable:

 

(i)
if Pasaca or such Designee breaches any provision of this Agreement, and either the breach cannot be cured or, if the breach can
be cured, it is not cured by Pasaca or such Designee within 30 days after Pasaca or such Designee’s receipt of written notice
of such breach;

 

(ii)
if Pasaca or such Designee becomes insolvent or files, or has filed against it, a petition for voluntary or involuntary bankruptcy
or pursuant to any other insolvency law, makes or seeks to make a general assignment for the benefit of its creditors or applies
for, or consents to, the appointment of a trustee, receiver, or custodian for a substantial part of its property, or is generally
unable to pay its debts as they become due; or

 

(iii)
if Pasaca or such Designee sells, transfers or disposes of all or substantially all of its assets, or merges or consolidates with
any other entity.

 

    	Page 6

     

    

 

(d)
Pasaca may terminate this Agreement by providing written notice to QMC:

 

(iv)
if QMC breaches any provision of this Agreement, and either the breach cannot be cured or, if the breach can be cured, it is not
cured by QMC within 30 days after QMC’s receipt of written notice of such breach;

 

(v)
if QMC becomes insolvent or files, or has filed against it, a petition for voluntary or involuntary bankruptcy or pursuant to
any other insolvency law, makes or seeks to make a general assignment for the benefit of its creditors or applies for, or consents
to, the appointment of a trustee, receiver, or custodian for a substantial part of its property, or is generally unable to pay
its debts as they become due; or

 

(vi)
if QMC sells, transfers or disposes of all or substantially all of its assets, or merges or consolidates with any other entity.

 

(e)
Any termination under Section 13(c) or (d) will be effective on the respective Party’s receipt of notice of termination
or such later date (if any) set forth in such notice.

 

(f)
Upon the expiration or earlier termination of this Agreement, each respective Party shall promptly:

 

(vii)
cease to represent itself as the other Party’s authorized representative with respect, and shall otherwise desist from all
conduct or representations that might lead the public to believe that such Party is authorized by the other Party to market, promote
or solicit sales of the other Party’s products or services;

 

(viii)
destroy all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other Party’s
Confidential Information; and

 

(ix)
permanently erase all of the other Party’s Confidential Information from its computer systems.

 

	 	14.	Confidentiality.
    All non-public, confidential or proprietary information of each Party (“Confidential Information”) disclosed by
    such Party to another Party, whether disclosed orally or disclosed or accessed in written, electronic, or other form or media,
    and whether or not marked, designated, or otherwise identified as “confidential,” in connection with this Agreement
    is confidential, solely for the receiving Party’s use in performing its obligations under this Agreement and may not
    be disclosed or copied unless authorized by the disclosing Party in writing. Confidential Information does not include any
    information that: (a) is or becomes generally available to the public other than as a result of the recipient Party’s
    breach of this Agreement; (b) is obtained by the recipient Party on a non-confidential basis from a third party that was not
    legally or contractually restricted from disclosing such information; or (c) the recipient Party establishes by documentary
    evidence, was in the recipient Party’s possession prior to the disclosing Party’s disclosure hereunder. Upon the
    disclosing Party’s request, the recipient Party shall promptly destroy all documents and other materials received from
    the disclosing Party. The disclosing Party shall be entitled to injunctive relief for any violation of this Section.

 

    	Page 7

     

    

 

	 	15.	Indemnification.
    Each Party shall indemnify, defend, and hold harmless the other Party and its officers, directors, employees, agents, affiliates,
    successors, and permitted assigns (collectively, “Indemnified Party”) against any and all losses, damages, liabilities,
    deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever
    kind, including reasonable attorneys’ fees, fees and the costs of enforcing any right to indemnification under this
    Agreement, and the cost of pursuing any insurance providers, incurred by Indemnified Party, relating to any claim of a third
    party or the indemnified Party arising out of or occurring in connection with such Party’s negligence, willful misconduct,
    or breach of this Agreement. No indemnifying Party under this Section shall enter into any settlement without the other Party’s
    or Indemnified Party’s prior written consent.
	 	 	 
	 	16.	Limitation
    of Liability. IN NO EVENT WILL ANY PARTY BE LIABLE FOR ANY LOSS OF USE, REVENUE, OR PROFIT OR FOR ANY CONSEQUENTIAL, INCIDENTAL,
    INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
    OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE POSSIBILITY
    OF SUCH DAMAGES.
	 	 	 
	 	17.	Entire
    Agreement. This Agreement constitutes the sole and entire agreement between the Parties with respect to the subject matter
    contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties,
    both written and oral, regarding such subject matter.
	 	 	 
	 	18.	Notices.
    All notices under this Agreement shall be made in writing and shall be deemed duly given if delivered either in person, by
    certified or registered mail, return receipt requested and postage prepaid, or by recognized overnight courier service. All
    notices shall be addressed to the Parties at their respective addresses first set forth above (or to such other address that
    the receiving Party may designate from time to time in accordance with this section). Notices shall be effective on receipt.
	 	 	 
	 	19.	Severability.
    If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal, or unenforceable,
    such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate
    or render unenforceable such term or provision in any other jurisdiction.

 

    	Page 8

     

    

 

	 	20.	Amendment.
    The Parties may not amend this Agreement except by written instrument signed by the Parties.
	 	 	 
	 	21.	Waiver.
    No waiver by any Party of any of the provisions of this Agreement shall be effective unless explicitly set forth in writing
    and signed by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising,
    any right, remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor
    shall any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise
    thereof or the exercise of any other right, remedy, power, or privilege.
	 	 	 
	 	22.	Assignment;
    Successors and Assigns. Except as provided in this Agreement, neither Pasaca nor any Designee may assign any of its rights
    or delegate any of its obligations under this Agreement without the prior written consent of QMC. Any purported assignment
    or delegation in violation of the provisions of this Agreement is null and void. Except as provided in this Agreement, or
    in a joinder agreement, no assignment or delegation relieves the assigning or delegating Party of any of its obligations under
    this Agreement. QMC may assign any of its rights or delegate any of its obligations to any parent or subsidiary corporation
    of QMC or to any purchaser acquiring all or substantially all of QMC’s assets. This Agreement is binding on and inures
    to the benefit of the Parties and their respective successors and permitted assigns.
	 	 	 
	 	23.	Choice
    of Law; Choice of Forum. This Agreement and all matters arising out of or relating to this Agreement shall be governed
    by and construed in accordance with the laws of Texas, without giving effect to any conflict of laws provisions thereof that
    would result in the application of the laws of a different jurisdiction. Any legal suit, action, or proceeding arising out
    of this Agreement and all contemplated transactions shall be instituted exclusively in the state or federal courts of Dallas,
    Texas. EACH PARTY IRREVOCABLY: (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS; (B) WAIVES ANY OBJECTION TO SUCH
    COURTS BASED ON VENUE OR INCONVENIENC; AND (C) WAIVES ANY RIGHT TO TRIAL BY JURY. Service of process, summons, notice or other
    document by certified or registered mail, return receipt requested and postage prepaid shall be effective service of process
    for any suit, action, or other proceeding brought in any such court.
	 	 	 
	 	24.	Counterparts.
    This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed
    to be one and the same agreement. A signed (including electronically signed) copy of this Agreement delivered by email is
    deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

    	Page 9

     

    

 

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

 

	QUANTUM
    MATERIALS CORP.,	 
	a
    Nevada corporation,	 
	 	 	 
	By:	/s/
    Stephen Squires	 
	 	Stephen
    Squires,	 
	 	President	 

 

	PASACA
    CAPITAL INC.,	 
	a
    Nevada corporation,	 
	 	 	 
	By:	/s/
                                         Charles Huang
	 
	 	Charles
    Huang,	 
	 	President
    & CEO	 

 

    	Page 10

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