Document:

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

 

	Principal
    Amount: $169,500.00	Issue
    Date: March 29, 2017

 

PROMISSORY
NOTE

 

FOR
VALUE RECEIVED, QUANTUM MATERIALS CORP., a Nevada corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of SBI INVESTMENTS LLC, 2014-1, a statutory series of Delaware limited liability company,
or registered assigns (the “Holder”) the principal sum of $169,500.00 (the “Principal Amount”), together
with interest at the rate of six percent (6%) per annum (with the understanding that the initial six months of such interest for
each tranche funded hereunder shall be guaranteed), at maturity or upon acceleration or otherwise, as set forth herein (the “Note”).
The consideration to the Borrower for this Note is up to $150,000.00 (the “Consideration”) in United States currency,
due to the prorated original issuance discount of $19,500.00 (the “OID”). The Holder shall pay $75,000.00 of the Consideration
(the “First Tranche”) within two (2) business days of the full execution of the Note and transactional documents related
to this Note. At the closing of the First Tranche, the outstanding principal amount under this Note shall be $84,750.00, consisting
of the First Tranche plus the prorated portion of the OID. The Holder may pay, in its sole discretion, such additional amounts
of the Consideration and at such dates as the Holder may choose in its sole discretion, provided, however, that so long as no
Event of Default (as defined herein) has occurred under the Note, Holder shall pay (i) $15,000.00 of the Consideration within
two business days after Borrower’s filing of a Definitive 14-A with respect to the actions contemplated by the Borrower’s
Preliminary 14-A filed on March 15, 2017 (including but not limited to the increase in its authorized common stock to 750,000,000
shares (the “Increase”)) and (ii) $60,000.00 of the Consideration within a reasonable amount of time after Borrower’s
effectuation of the Increase. THE PRINCIPAL SUM DUE TO THE HOLDER SHALL BE PRORATED BASED ON THE CONSIDERATION ACTUALLY PAID
BY THE HOLDER, THE APPLICABLE PORTION OF THE OID, AS WELL AS THE APPLICABLE INTEREST AND FEES. The maturity date for each
tranche funded shall be six (6) months from the effective date of each payment (each a “Maturity Date”), and is the
date upon which the principal sum of each respective tranche, as well as any accrued and unpaid interest and other fees relating
to that respective tranche, shall be due and payable. This Note may not be prepaid in whole or in part except as otherwise explicitly
set forth herein. Any amount of principal or interest on this Note, which is not paid by the Maturity Date, shall bear interest
at the rate of the lesser of (i) twenty four percent (24%) per annum or (ii) the maximum amount allowed by law, from the due date
thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Note is
fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder
(to the extent not converted into the Borrower’s common stock (the “Common Stock”) in accordance with the terms
hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder
shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount
expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on
the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this
Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount
of interest due on such date. As used in this Note, the term “business day” shall mean any day other than a Saturday,
Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order
to remain closed.

 

    	1 

    	 

    

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following additional terms shall also apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1 
Conversion Right. The Holder shall have
the right at any time on or after an Event of Default (as defined herein) under the Note occurs, to convert all or any
part of the outstanding and unpaid principal amount and accrued and unpaid interest of this Note into fully paid and non-assessable
shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the
Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion
Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall
the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the
sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common
Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except
as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of
this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in
effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”),
delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted
by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00
p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion Amount”
means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion
plus (2) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided
in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred
to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant
to Sections 1.3 and 1.4(g) hereof.

 

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1..2
 Conversion Price.

 

(a) 
Calculation of Conversion Price. The Conversion
Price shall be the Variable Conversion Price (as defined herein) (subject to adjustment as further described herein). The “Variable
Conversion Price” shall mean 65% multiplied by the Market Price (as defined herein) (representing a discount rate of 35%).
“Market Price” means the lowest one (1) Trading Prices (as defined below) for the Common Stock during the thirty (30)
Trading Day period ending on the last complete Trading Day prior to the Conversion Date. “Trading Prices” means, for
any security as of any date, the lowest traded price on the Over-the-Counter Pink Marketplace, OTCQB, or applicable trading market
(the “OTCQB”) as reported by a reliable reporting service (“Reporting Service”) designated by the Holder
(i.e. www.Nasdaq.com) or, if the OTCQB is not the principal trading market for such security, on the principal securities exchange
or trading market where such security is listed or traded or, if the lowest intraday trading price of such security is not available
in any of the foregoing manners, the lowest intraday price of any market makers for such security that are quoted on the OTC Markets.
If the Trading Prices cannot be calculated for such security on such date in the manner provided above, the Trading Prices shall
be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted
for which the calculation of the Trading Prices are required in order to determine the Conversion Price of such Notes. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the OTCQB, or on the principal securities
exchange or other securities market on which the Common Stock is then being traded. Each time an Event of Default (as defined
herein) occurs while this Note is outstanding, an additional discount of five percent (5%) shall be factored into the Variable
Conversion Price. All expenses incurred by Holder for the issuance and clearing of the Common Stock into which this Note is convertible
into (including but not limited to expenses incurred for legal opinion letters, the issuance by the Borrower’s transfer
agent of such Common Stock, brokerage deposit fees, and clearing firm fees) shall immediately and automatically be added to the
balance of the Note at such time as the expenses are incurred by Holder.

 

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Each
time, while this Note is outstanding, the Borrower enters into a Section 3(a)(9) Transaction (as defined herein) (including but
not limited to the issuance of new promissory notes or of a replacement promissory note), or Section 3(a)(10) Transaction (as
defined herein), in which any 3rd party has the right to convert monies owed to that 3rd party (or receive shares pursuant to
a settlement or otherwise) at a discount to market greater than the Variable Conversion Price in effect at that time (prior to
all other applicable adjustments in the Note), then the Variable Conversion Price shall be automatically adjusted to such greater
discount percentage (prior to all applicable adjustments in this Note) until this Note is no longer outstanding. Each time, while
this Note is outstanding, the Borrower enters into a Section 3(a)(9) Transaction (including but not limited to the issuance of
new promissory notes or of a replacement promissory note), or Section 3(a)(10) Transaction, in which any 3rd party has a look
back period greater than the look back period in effect under the Note at that time (currently a thirty (30) Trading Day look
back period as described in this Section 1.2(a) applies), then the Holder’s look back period shall automatically be adjusted
to such greater number of days until this Note is no longer outstanding. The Borrower shall give written notice to the Holder,
with the adjusted Variable Conversion Price and/or adjusted look back period (each adjustment that is applicable due to the triggering
event), within one (1) business day of an event that requires any adjustment described in the two immediately preceding sentences.
So long as this Note is outstanding, if any security of the Borrower contains any term more favorable to the holder of such security
or with a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Borrower
shall notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall become a part
of the transaction documents with the Holder.

 

(b)
Authorized Shares. The Borrower covenants
that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a
sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion
of this Note. The Borrower is required at all times to have authorized and reserved three times the number of shares that is actually
issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time)(the “Reserved
Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations hereunder.
The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non- assessable. In addition,
if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares
of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same
time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved,
free from preemptive rights, for conversion of the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed
its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and agrees that its issuance
of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates
to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this
Note.

 

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If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

1..3 
Method of Conversion.

 

(A)
Mechanics of Conversion. Subject to Section
1.1, this Note may be converted by the Holder in whole or in part at any time on or after an Event of Default under the Note occurs,
by submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched
on the Conversion Date prior to 4:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note
at the principal office of the Borrower.

 

(a)
 Surrender of Note Upon Conversion. Notwithstanding
anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall
not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so
converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such
conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical
surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall,
prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion
of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this
Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like
tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the
aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge
and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and
unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

 

(b)
 Payment of Taxes. The Borrower shall not
be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common
Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name),
and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless and until the
person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s
account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established
to the satisfaction of the Borrower that such tax has been paid.

 

(c)
 Delivery of Common Stock Upon Conversion.
Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication)
of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and
deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon
such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion
of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof.

 

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(d)
 Obligation of Borrower to Deliver Common Stock.
Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock
issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall
be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I,
all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive
the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given
a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock
shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or
consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same,
any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective
of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.
The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as
the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time, on such date.

 

(e)
Delivery of Common Stock by Electronic Transfer.
In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating
in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program and the certificates
are unrestricted, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section
1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with
DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

(f)
 Failure to Deliver Common Stock Prior to Deadline.
Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief,
the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline
(other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section)
the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver
such Common Stock (unless such failure results from war, acts of terrorism, an epidemic, or natural disaster). Such cash amount
shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder
(by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added
to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and
such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower
agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate,
interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the
liquidated damages provision contained in this Section 1.4(g) are justified.

 

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1..4
 Concerning the Shares. The shares of Common
Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective
registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect
that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii)
such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv)
such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor. Except as otherwise provided (and
subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of
this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number
of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable
upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant
to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in
the following form, as appropriate:

 

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

 

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The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Borrower so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Borrower does
not accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from
registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Note.

 

1..5 
[Intentionally Omitted].

 

1..6
 Status as Shareholder. Upon submission
of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because
their issuance would exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed
converted into shares of Common Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note shall
cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided
herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms
of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to
the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for
any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower)
the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower
shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its
records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights
and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the
extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion
Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert
this Note.

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1
Distributions on Capital Stock. So long
as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent

(a)
pay, declare or set apart for such payment, any
dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends
on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any
subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’
rights plan which is approved by a majority of the Borrower’s disinterested directors.

 

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2.2
Restriction on Stock Repurchases. So long
as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent redeem,
repurchase or otherwise acquire for cash in any one transaction or series of related transactions any shares of capital stock
of the Borrower or any warrants, rights or options to purchase or acquire any such shares.

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1
Failure to Pay Principal or Interest.
The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration
or otherwise, and such breach continues for a period of five (5) days.

 

3.2
Conversion and the Shares. The Borrower
fails to reserve a sufficient amount of shares of common stock as required under the terms of this Note at any time on or after
the 90th calendar day after the Issue Date (including Section 1.3 of this Note)(and such breach continues for a period of three
(3) days), fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its
obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note,
fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) shares of Common Stock
issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs
its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically
or in certificated form) shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note
as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or
hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof)
on any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required
by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described
in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor
its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice
of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It
shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance
owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s
transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within five (5)
business days, either in cash or as an addition to the balance of the Note, and such choice of payment method is at the discretion
of the Borrower.

 

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3.3
Breach of Covenants. The Borrower breaches
any material covenant or other material term or condition contained in this Note and any collateral documents and such breach
continues for a period of five (5) days after written notice thereof to the Borrower from the Holder or after ten (10) days after
the Borrower should have been aware of the breach.

 

3.4
Breach of Representations and Warranties.
Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant
hereto or in connection herewith, shall be false or misleading in any material respect when made and the breach of which has (or
with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note.

 

3.5
Receiver or Trustee. The Borrower or any
subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of
a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise
be appointed.

 

3.6
Judgments. Any money judgment, writ or
similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other
assets for more than $150,000, and shall remain unvacated, unbonded or unstayed for a period of ten (10) days unless otherwise
consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7
Bankruptcy. Bankruptcy, insolvency, reorganization
or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for
the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.

 

3.8
Delisting of Common Stock. The Borrower
shall fail to maintain the listing or quotation of the Common Stock on the OTCQB or an equivalent replacement exchange, the Nasdaq
Global Market, the Nasdaq Capital Market, the New York Stock Exchange, or the NYSE MKT.

 

3.9
Failure to Comply with the Exchange Act.
The Borrower shall fail to comply with the reporting requirements of the Exchange Act (including but not limited to becoming delinquent
in its filings for more than five (5) business’ days), and/or the Borrower shall cease to be subject to the reporting requirements
of the Exchange Act.

 

3.10
Liquidation. Any dissolution, liquidation,
or winding up of Borrower or any substantial portion of its business.

 

3.11
Cessation of Operations. Any cessation
of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided,
however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission
that the Borrower cannot pay its debts as they become due.

 

    	10 

    	 

    

 

3.12
Financial Statement Restatement. The Borrower
replaces its auditor without the consent of the Holder, which consent shall not be unreasonably withheld,, or any restatement
of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of
this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated
financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note.

 

3.13
Reverse Splits. The Borrower effectuates
a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder.

 

3.14
Replacement of Transfer Agent. In the
event that the Borrower replaces its transfer agent, and the Borrower fails to provide prior to the effective date of such replacement,
a fully executed Irrevocable Transfer Agent Instructions (including but not limited to the provision to irrevocably reserve shares
of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower that reserves the
total amount of shares previously held in reserve for the Note with the Borrower’s immediately preceding transfer agent.

 

3.15
Cross-Default. Notwithstanding anything
to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any
covenant or other term or condition contained in any of the other financial instrument,
including but not limited to all convertible promissory notes, currently issued, or hereafter issued, by the Borrower, to the
Holder or other 3rd party (the “Other Agreements”), after the passage of all applicable notice and cure
or grace periods, shall, at the option of the Holder, be considered a default under this Note, in which event the Holder shall
be entitled to apply all rights and remedies of the Holder under the terms of this Note by reason of a default under said Other
Agreement or hereunder.

 

3.16
Inside Information. Any attempt by the
Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose, or any actual transmittal, conveyance, or
disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public information concerning the Borrower,
to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing of a Form 8-K pursuant
to Regulation FD on that same date.

 

3.17
No bid. At any time while this Note is
outstanding, the lowest Trading Prices on the OTCQB or other applicable principal trading market for the Common Stock is equal
to or less than $0.0001.

 

3.18
No shop. So long as this Note is outstanding,
the Borrower shall not enter into any transaction or arrangement with any party other than the Holder, structured in accordance
with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(9) or 3(a)(10) of the Securities Act (a “3(a)(9)
Transaction”), without prior written consent of the Holder, provided, however, that this Section 3.18 shall not encompass
any 3(a)(9) Transaction entered into by the Company prior to March 28, 2017 so long as the terms of such respective 3(a)(9) Transaction
have not been materially altered on or after March 28, 2017.

 

    	11 

    	 

    

 

3.19
Failure to Repay Upon Qualified Offering.
The Borrower fails to repay the Note, in its entirety, pursuant to the terms of the Note, with funds received from its next completed
offering of $1,000,000.00 or more (consummated on or after the Issue Date).

 

UPON
THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY
DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO:
(Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event
of Default specified in Sections 3.1, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16, 3.17, 3.18
and/or 3.19, the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to 140% (plus an additional 5% per each additional Event of Default that occurs
hereunder) multiplied by the then outstanding entire balance of the Note (including principal and accrued and unpaid interest)
plus Default Interest, if any, plus any amounts owed to the Holder pursuant to Sections 1.4(g) hereof (collectively,
in the aggregate of all of the above, the “Default Sum”), and all other amounts payable hereunder shall immediately
become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all
costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all
other rights and remedies available at law or in equity.

 

If
the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then
in effect, subject to issuance in tranches due to the beneficial ownership limitations contained in this Note.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure
or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of
any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any
rights or remedies otherwise available.

 

    	12 

    	 

    

 

4.2
Notices. All notices, demands, requests,
consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage
prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram,
facsimile, or electronic mail addressed as set forth below or to such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a)
upon hand delivery, upon electronic mail delivery, or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

If
to the Borrower, to:

 

QUANTUM
MATERIALS CORP.

3055
Hunter Road

San
Marcos, TX 78666

e-mail:inquiries@qmcdots.com

 

With
a copy to (which copy shall not constitute notice):

 

Steven
Morse, Esq.

Morse
& Morse, PLLC

1400
Old Country Rd., Ste. 302

Westbury,
NY 11590

Email:
morgold@aol.com

 

If
to the Holder:

 

SBI
INVESTMENTS LLC, 2014-1

369
Lexington Avenue, 2nd Floor New York, NY 10017

e-mail:
jjuchno@seaotterglobal.com

 

With
a copy to (which copy shall not constitute notice):

 

Legal
& Compliance, LLC

330
Clematis Street, Ste. 217

West
Palm Beach, FL 33401

Attn:
Chad Friend, Esq., LL.M.

E-mail:
CFriend@LegalAndCompliance.com

 

    	13 

    	 

    

 

4.3
Amendments. This Note and any provision
hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and
all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended
or supplemented, then as so amended or supplemented.

 

4.4
 Assignability. This Note shall be binding
upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns.
Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act). Notwithstanding
anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement.

 

4.5
Cost of Collection. If
default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable
attorneys’ fees.

 

4.6
 Governing Law. This Note shall be governed
by and construed in accordance with the laws of the State of Florida without regard to principles of conflicts of laws. Any action
brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state
and/or federal courts of Miami-Dade County, Florida. The parties to this Note hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based
upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other
agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with
such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity
or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and
consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction
Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for 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 other manner permitted by law.

 

4.7
Certain Amounts. Whenever pursuant to
this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required
to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder
agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the
amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder
in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired
upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the
Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder
from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.

 

    	14 

    	 

    

 

4.8
Remedies. The Borrower acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of
the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations
under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions
of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition
to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note
and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond
or other security being required.

 

4.9 
Prepayment. Notwithstanding anything to
the contrary contained in this Note, the Borrower may prepay the amount outstanding under this Note, at any time, by making a
payment to the Holder of an amount in cash equal to 130% multiplied by the total outstanding amount owed under the Note at such
time of prepayment. In order to prepay this Note, the Borrower shall provide notice to the Holder ten (10) business days prior
to such respective prepayment date, and the Holder must receive such prepayment within twelve (12) business days of the Holder’s
receipt of the respective prepayment notice, but not sooner than ten (10) business days from the date of notice (the “Prepayment
Period”). The Holder may convert the Note in whole or in part at any time during the Prepayment Period, subject to the terms
and conditions of this Note.

 

4.10
 Section 3(a)(10) Transactions. If
at any time while this Note is outstanding, the Borrower enters into a transaction structured in accordance with, based
upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a “3(a)(10) Transaction”),
then a liquidated damages charge of 100% of the outstanding principal balance of this Note at that time, will be assessed and
will become immediately due and payable to the Holder, either in the form of cash payment, an addition to the balance of the Note,
or a combination of both forms of payment, as determined by the Holder.

 

4.11
Reverse Split Penalty. If at any time
while this Note is outstanding, the Borrower effectuates a reverse split with respect to the Common Stock, without the consent
of the Holder, which consent will not be unreasonably withheld, then a liquidated damages charge of 30% of the outstanding principal
balance of this Note at that time, will be assessed and will become immediately due and payable to the Holder, either in the form
of cash payment, an addition to the balance of the Note, or a combination of both forms of payment, as determined by the Holder.

 

    	15 

    	 

    

 

4.12 
Restriction on Section 3(a)(9) Transactions.
So long as this Note is outstanding, the Borrower shall not enter into any 3(a)(9) Transaction with any party other than the Holder,
without prior written consent of the Holder, which Section 3(a)(9) Transactions shall be defined for purposes of this Agreement
to be an exchange of securities of the Borrower where the securities issued have variable conversion prices based upon the then
market conditions at the time of conversion, provided, however, that this Section 4.12 shall not encompass any 3(a)(9) Transaction
entered into by the Company prior to March 28, 2017 so long as the terms of such respective 3(a)(9) Transaction have not been
materially altered on or after March 28, 2017. In the event that the Borrower does enter into, or makes any issuance of Common
Stock related to a 3(a)(9) Transaction while this Note is outstanding, a liquidated damages charge of 25% of the outstanding principal
balance of this Note, but not less than $15,000, will be assessed and will become immediately due and payable to the Holder at
its election in the form of cash payment or addition to the balance of this Note.

 

4.13
Piggyback Registration Rights. The Borrower
shall include on the next registration statement the Borrower files with SEC (or on the subsequent registration statement if such
registration statement is withdrawn), except with respect to the Borrower’s next underwritten public offering, all shares
issuable upon conversion of this Note. Failure to do so will result in liquidated damages of 25% of the outstanding principal
balance of this Note, but not less than $15,000, being immediately due and payable to the Holder at its election in the form of
cash payment or addition to the balance of this Note.

 

4.14
Terms of Future Financings. So long as
this Note is outstanding, upon any future issuance by the Borrower or any of its subsidiaries of any security with any term more
favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided
to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more favorable term and such term,
at Holder’s option, shall become a part of the transaction documents with the Holder. The types of terms contained in another
security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion
discounts, prepayment rate, conversion look back periods, interest rates, original issue discounts, stock sale price, private
placement price per share, and warrant coverage.

 

4.15 
Right of First Refusal. If at any time
while this Note is outstanding, the Borrower has a bona fide offer of debt financing containing variable rate conversion terms
from any 3rd party, that the Borrower intends to act upon, then the Borrower must first
offer such opportunity to the Holder to provide such financing to the Borrower on the same terms as each respective 3rd party’s
terms. Should the Holder be unwilling or unable to provide such financing to the Borrower within 3 trading days from Holder’s
receipt of written notice of the offer (the “Offer Notice”) from the Borrower, then the Borrower may obtain such financing
from that respective 3rd party upon the exact same terms and conditions offered by the Borrower to the Holder, which
transaction must be completed within 30 days after the date of the Offer Notice. Borrower shall, within two (2) business days
of the respective closing, utilize 50% of all proceeds received by Borrower by each respective 3rd party that provides
financing to the Borrower, to prepay this Note. If the Borrower does not receive
the financing from the respective 3rd party within 30 days after the date of the respective Offer Notice, then the
Borrower must again offer the financing opportunity to the Holder as described above, and the process detailed above shall be
repeated. The Offer Notice must be sent via electronic mail to jjuchno@seaotterglobal.com.

 

[signature
page to follow]

 

    	16 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this March 29, 2017.

 

	QUANTUM
    MATERIALS CORP.	 
	 	 	 
	By:	/s/
    Stephen Squires	 
	Name:	Stephen Squires	 
	Title:	Chief
    Executive Officer	 

 

    	17 

    	 

    

 

EXHIBIT
A — NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $ principal amount of the Note (defined below) into that number of shares of Common Stock
to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of QUANTUM MATERIALS CORP.,
a Nevada corporation (the “Borrower”) according to the conditions of the convertible note of the Borrower dated as
of March 29, 2017 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion,
except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ]	The
    Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the
    undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

 

Name
of DTC Prime Broker:

Account
Number:

 

	 	[  ]	The
    undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock
    set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately
    below or, if additional space is necessary, on an attachment hereto:

 

	 	SBI
    INVESTMENTS LLC, 2014-1	 
	 	369
    Lexington Avenue, 2nd Floor New York, NY 10017	 
	 	e-mail:
    jjuchno@seaotterglobal.com	 

 

	 	Date
    of Conversion:	 
	 	Applicable
    Conversion Price:	$
	 	Number
    of Shares of Common Stock to be Issued	 
	 	Pursuant
    to Conversion of the Notes:	 
	 	Amount
    of Principal Balance Due remaining	 
	 	Under
    the Note after this conversion:	 

 

SBI
INVESTMENTS LLC, 2014-1

 

	 	By:	____________________________
	 	Name:	____________________________
	 	Title:	____________________________
	 	Date:	____________________________

 

    	18TRADING AGREEMENT

 

This
Trading Agreement (this “Agreement”), dated as of the 31st day of March, 2017 (the “Effective
Date”), is entered into by and between L2 Capital, LLC (“L2”) and SBI Investments LLC, 2014-1 (“SBI,”
and together with L2, the “Parties” and each, a “Party”).

 

WHEREAS,
each of the Parties entered into a Securities Purchase Agreement (the “SPAs”) with Quantum Materials Corp.
(the “Issuer”) pursuant to which each Party shall receive certain securities of the Issuer which shall result
in each Party holding shares of common stock of the Issuer (collectively, the shares issued to the Parties, the “Purchase
Shares”);

 

WHEREAS,
the Issuer’s common stock is quoted over the counter and publicly traded; and

 

WHEREAS,
the Parties desire to establish a plan for the orderly trading of the Purchase Shares.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual agreements herein contained, and intending to be legally
bound hereby, the Parties agree as follows:

 

1.       All
Purchase Shares acquired by the Parties pursuant to the SPAs will be held by a designated brokerage firm (the “Broker”)
for the account of the Parties pursuant to an account agreement.

 

2.       The
Parties will direct the Broker to execute trades of the Purchase Shares, from time to time, one order in each instance (each,
an “Order”).

 

3.       Upon
the execution of any Order, any and all proceeds resulting from the same shall be distributed 70% to L2 and 30% to SBI.

 

4.       Each
of the Parties is aware of restrictions under federal and state securities laws on buying and selling securities while in possession
of material nonpublic information. If any Party becomes aware of any material nonpublic information relating to the Issuer, such
Party shall not disclose any such information to the other Party and may not participate or initiate any trades of the Purchase
Shares.

 

5.       All
Broker, legal or other administrative expenses incurred in connection with activities contemplated by this Agreement shall be
shared equally and paid to one of the designated Parties for further payment.

 

6.       Any
controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by a single arbitrator
in an arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on
the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

 

7.       This
Agreement (a) shall be governed by, and construed in accordance with, the laws of the State of New York, (b) constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof, superseding all prior agreements, written or oral,
(c) may not be amended, except in writing signed by both Parties, (d) may be executed in counterparts, (e) shall be enforceable,
notwithstanding the unenforceability of any particular provision hereof, with respect to all other provisions hereof and (f) may
not be assigned by any Party, except with the prior written consent of the other.

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

	 	L2
    CAPITAL, LLC
	 	 	 
	 	By:	/s/
    Adam Long
	 	Name:	Adam
    Long
	 	Title:	Managing
    Partner
	 	 	 
	 	SBI
    INVESTMENTS LLC, 2014-1
	 	 	 
	 	By:	/s/
    Peter Wisniewski
	 	Name:	Peter
    Wisniewski
	 	Title:	President

 

    	 	2

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