Document:

Exhibit
10.1

 

**Confidential
Portions of this document have been redacted and filed separately with the Securities and Exchange Commission.

 

LICENSE
AND DEVELOPMENT AGREEMENT

 

THIS
LICENSE AND DEVELOPMENT AGREEMENT (this “Agreement”) is made as of 19 November, 2018 (the
“Effective Date”), by and between Quantum Materials Corporation, a Nevada corporation (the “Licensor”),
and Amtronics CC, a limited liability company (the “Licensee”). Each of the parties to this Agreement
will be referred to individually as a “Party” or jointly as the “Parties.”

 

RECITALS

 

WHEREAS,
Assam Electronics Development Corporation Ltd., Amtronics CC, Mega Consortium Limited and the Licensor are parties to that certain
Memorandum of Understanding – Nano-India (ASSAM), dated as of October 25, 2017 (the “MOU”).

 

WHEREAS,
Amtronics CC, with certain other parties, formed the Licensee to, among other things, facilitate the transactions contemplated
by the MOU.

 

WHEREAS,
the Parties desire to implement certain terms of the MOU set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the premises, the mutual covenants of the Parties hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE
I

DEFINITIONS.

 

The
following initially capitalized terms have the following meanings (and derivative forms of them shall be interpreted accordingly):

 

“Agents”
has the meaning given in Section 6.1.

 

“Affiliate”
means an entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common
control with a Party. For this purpose, “control” means the ownership of fifty percent (50%) or more
of the voting securities entitled to elect the directors or management of the entity, or the actual power to elect or direct the
management of the entity.

 

“Claim”
has the meaning given in Section 8.1.

 

“Commercialize”
means any and all activities directed to marketing, promoting, distributing, importing, having imported, exporting, having exported,
selling, having sold, or offering to sell a product or service.

 

“Commercially
Reasonable Efforts” means the level of efforts required to carry out a task in a diligent and sustained manner without
undue interruption, pause or delay using such effort and employing such resources as would
normally be exerted or employed by a similarly situated company for a product of similar market or profit potential or
strategic value at a similar stage of its product life, taking into account safety and efficacy; the competitiveness of
alternative products; proprietary position of the product; pricing and reimbursement; and all other relevant scientific, regulatory
and commercial factors.

 

 

    	1

     

    

 

“Commercialization
Wind-Down Period” has the meaning given in Section 9.3(c).

 

“Confidential
Information” has the meaning given in Section 6.1.

 

“Develop”
and “Development” shall mean any and all activities, testing and studies required to develop one or
more products or services for regulatory approval and/or commercial sale.

 

“Disclosing
Party” has the meaning given in Section 6.1.

 

“Exclusion”
has the meaning given in Section 6.2.

 

“Field
of Use” means [Manufacture of quantum dots, thin film quantum dot solar cells, and light emitting diodes for
lighting and display applications.

 

“Gross
Sales” means the gross amount invoiced by the Licensee, or its Affiliates, licensees or sublicensees for the sale
of a Licensed Product[, less any of the following applicable deductions to the extent actually granted and included in the
invoiced amounts. Even if there is overlap between any of deductions, each individual item shall only be deducted once in each
Gross Sales calculation].

 

If
the Licensee (or its Affiliates, licensees or sublicensees) structure a commercial transfer of quantities of Licensed Product
as something other than a “sale” such that the Licensee (or its Affiliates, licensees or sublicensees) receives value
as a direct result of such other commercial transfer, as a free marketing sample or is intended for resale by the Licensee or
its Affiliates, licensees or sublicensees, then such transfer shall be deemed to be a sale at the value received by the Licensee
(or its Affiliates, licensees or sublicensees).

 

“Improvements”
has the meaning given in Section 5.1.

 

“Indemnities”
has the meaning given in Section 8.1.

 

“Know-How”
means all techniques and data and other know-how and technical information including inventions (whether or not patentable), improvements
and developments, practices, methods, concepts, trade secrets, documents, computer data, computer code, apparatus, test data,
analytical and quality control data, formulation, manufacturing, patent data or descriptions, development information, drawings,
specifications, designs, plans, proposals and technical data and manuals and all other proprietary information reasonably necessary
to commercially exploit the License, Licensed Products and Licensed Technology or generated pursuant to research and development
activities, and including all non-patent intellectual property rights in relation to such items.

 

“License”
has the meaning given in Section 3.1.

 

“Licensed
Know-How” shall mean Know-How that (a) the Licensor reasonably determines to be necessary and/or useful to Commercialize,
Develop or Manufacture Licensed Products, and is) controlled by the Licensor on the Effective Date.

 

“Licensed
Patents” means the Patents listed on Schedule A hereto.

 

 

 

    	2

     

    

 

“Licensed
Product(s)” means (a) any product the Commercializing, Development, exporting, importing, making or having made,
Manufacturing, offering for sale, selling or using of which would, but for the licenses granted to Licensee hereby, infringe a
Valid Claim of the Licensed Patents, or (ii) utilize any Licensed Know-How.

 

“Licensed
Technology” means, collectively, the Licensed Patents and the Licensed Know-How.

 

“Manufacture”
or “Manufacturing” shall mean any and all activities and operations involved in or relating to the manufacturing,
quality control testing (including in-process, release and stability testing), releasing or packaging, for development or commercial
purposes.

 

“Patent”
means any patent application or patent anywhere in the world, including all of the following kinds: provisional, utility, divisional,
continuation, continuation-in-part, and substitution applications; and utility, re-issue, re-examination, renewal and extended
patents, and patents of addition, and any supplementary protection certificates, restoration of patent terms and other similar
rights.

 

“Product”
means Quantum Dots (nanoscale semiconductor crystals) solar cells, LED lighting.

 

“Recipient”
has the meaning given in Section 6.1.

 

“Recoveries”
has the meaning given in Section 5.4(e).

 

“Royalty”
has the meaning given in Section 4.4(a).

 

“Royalty
Period” has the meaning given in Section 4.4(b).

 

“Territory”
means the territory of The State of Assam India.

 

“Third
Party” means an entity other than a Party or an Affiliate of a Party.

 

“Valid
Claim” means a claim of either (a) an issued and unexpired Patent included within the Licensed Patents which has
not been held permanently revoked, unenforceable, or invalid by a decision of a court or other governmental agency of competent
jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been admitted to be invalid or
unenforceable through reissue or disclaimer or otherwise, or (b) a pending Patent application within the Licensed Patents which
claim was filed in good faith and has not been abandoned or finally disallowed without the possibility of appeal or refiling of
said application.

 

References
in the body of this Agreement to “Sections” refer to the sections of this Agreement. The terms “include,”
“includes,” “including” and derivative forms of them shall be deemed followed by the phrase “without
limitation” regardless of whether such phrase appears there (and with no implication being drawn from its inconsistent inclusion
or non-inclusion).

 

 

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ARTICLE
II

PROGRAM

 

Section
2.1 General. In connection with the establishment of a nanoscale semiconductor crystal manufacturing facility in
Guwahati, the State of Assam, Republic of India, the Licensee shall devote Commercially Reasonable Efforts to Commercialize, Develop
and Manufacture the Licensed Products in the above describe field of use and territory(s). The Licensee shall be deemed
to have satisfied such Commercially Reasonable Efforts if it has meet the milestones as identified addendum A.

 

Section
2.2 Updates. The Licensee will provide the Licensor with a written report of progress in development of the
Manufacturing process and Commercialization of the Licensed Products and the Licensee’s and its Affiliates’
activities in that regard. Within 45 days after the signing of this agreement a development committee comprising one
representative from each company will be formed and quarterly reports will be provided to all stake holders.

 

ARTICLE
III

LICENSES

 

Section
3.1 License Grant. The Licensor hereby grants to the Licensee a [non-]exclusive license under and to the Licensed
Technology to Commercialize, Develop, export, import, make or have made, Manufacture, offer for sale, sell and use Licensed Products,
within the Field of Use and in the Territory (the “License”). The foregoing License shall be exclusive
with respect to the production of Licensed Products within the State of Assam, Republic of India.

 

Section
3.2 Rights and Restrictions. The Licensee does hereby agree that it will NOT (and will cause its Affiliates and
any sublicensee not to) at any time Commercialize, Develop, distribute, exploit, make use of, profit from or sell the License
or the Licensed Products outside of the Field of Use or the Territory (the “Exclusion”). Furthermore,
any assignment, license, sale, sublicense, transfer or other disposition of the Licensee’s rights in the License shall retain,
be subject to and be governed by the Exclusion; and the Licensee and its Affiliates and successors shall make every reasonable
effort to ensure that any direct or indirect assignee or licensee or any other agent shall comply with, respect and abide by the
Exclusion.

 

ARTICLE
IV

FINANCIAL
TERMS

 

Section
4.1 Upfront Fee. The Licensee shall pay the Licensor an upfront payment of $500,000.00 within [30]
business days after the Effective Date and an additional $500,000.00 within 60 days after the effective date .

 

Section
4.2 Purchase of Equipment.

 

(a) Reactors.
The Licensee shall purchase two (2) production reactors used for the production of Licensed Products for an aggregate
purchase price of $[**Confidential Treatment Requested], payable as follows:

 

	 	 	(i)	$[**Confidential
    Treatment Requested] shall be payable within 60 business days after the Effective Date;
	 	 	(ii)	$[**Confidential
    Treatment Requested] shall be payable immediately upon delivery to the licensees designated freight forwarder; and
	 	 	(iii)	$[**Confidential
    Treatment Requested] shall be payable when the reactors are received, setup and operational, as determined by the Licensor.

 

[**Confidential
Treatment Requested] indicates that portions of this document have been redacted and filed separately with the Securities
and Exchange Commission.

 

 

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(b) Schlenk
Line Equipment. The Licensee shall purchase the automated equipment for two (2) Schlenk lines from the Licensor for an
aggregate purchase price of $[**Confidential Treatment Requested], payable 50% with order and 40% upon delivery to
licensees designated freight forwarder and balance once equipment is received, setup and operational as determined by
Licensor.

 

(c) Inline
Equipment. The Licensee shall purchase the inline laminating, printing and associated equipment from the Licensor for an
aggregate purchase price of $[**Confidential Treatment Requested], payable 50% with order and 40% upon delivery to
licensees designated freight forwarder and balance once equipment is received, setup and operational as determined by
Licensor.

 

(d) Other
Equipment. The Licensee shall purchase related to the License and Licensed Products exclusively from the Licensor at the
Licensor’s then-prevailing prices and terms.

 

Section
4.3 Consulting and Training.

 

(a) Training.
For a period of 36 following the Effective Date, the Licensor shall provide training to the Licensee’s
employees and contractors in connection with the manufacturing of the Licensed Products, as the mutually agreed by the
Parties, as mutually agreed between the Parties. The fees for such consulting services will be billed at the Licensor’s
then-prevailing hourly rates for such services. As of the date of this Agreement, it is anticipated that the average rate for
such services will be approximately $[**Confidential Treatment Requested] per hour, which may vary depending on the
nature of the training, the experience and specialized expertise of the personnel performing such training and other economic
factors at such time. Amounts payable in respect of services under this Section 4.3(a) shall be invoiced to the
Licensee monthly in arrears and paid to the Licensor, as directed by the Licensor, which amounts shall be due within thirty
(30) days after the date of invoice.

 

(b) Consulting.

 

(i) Facility
Design. The Licensee shall pay an aggregate amount of approximately $[**Confidential Treatment Requested] in
connection with the Licensor’s consulting services related to the design of the Manufacturing facility, payable under
terms and conditions to be negotiated.

 

(ii) Other
Consulting. For a period of 5 years following the Effective Date, the Licensor agrees to provide consulting
services for the implementation and operation of the items set forth in Section 4.2 and the Manufacturing of Licensed
Products, as mutually agreed between the Parties. The fees for such consulting services will be billed at the
Licensor’s then-prevailing hourly rates for such services. As of the date of this Agreement, it is anticipated that the
average rate for such services will be approximately $[**Confidential Treatment Requested] per hour, which may vary
depending on the nature of the services, the experience and specialized expertise of the consultant performing such services
and other economic factors at such time. Amounts payable in respect of services under this Section 4.3(b) shall be
invoiced to the Licensee monthly in arrears and paid to the Licensor, as directed by the Licensor, which amounts shall be due
within thirty (30) days after the date of invoice.

 

[**Confidential
Treatment Requested] indicates that portions of this document have been redacted and filed separately with the Securities
and Exchange Commission.

 

 

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Section
4.4 Royalty.

 

(a)
Royalty Amounts. Subject to the terms and conditions of this Agreement, in consideration of the rights and licenses granted
herein, the Licensee shall pay to the Licensor a royalty equal to [**Confidential Treatment Requested] percent ([**Confidential
Treatment Requested]%) of Gross Sales (collectively, the “Royalty”).

 

(b) Payment
Timing. The Royalty shall be paid quarterly (the “Royalty Period”), within ten (10) days after
the end of the relevant calendar quarter for which royalties are due.

 

(c) Royalty
Payment Reports. With respect to each Royalty Period, at the time(s) when the payments of Section 4.4(b) are due,
the Licensee shall provide to the Licensor a written report stating the number and description of all items sold during the
Royalty Period, the Gross Sales associated with such sales, and the calculation of Gross Sales on such sales. The report
shall provide all such information on a country-by-country and product-by-product basis.

 

(d) Records.
The Licensee shall keep, for a period of six (6) years following the end of the calendar year to which such records relate,
and ensure that its Affiliates keep, complete and accurate records of its sales to which Royalties may apply, including all
records that may be necessary for the purposes of calculating all payments due under this Agreement. The Licensee shall make
such records available for inspection to the Licensor, including the Licensor’s accounting, financial and legal
representatives, at the Licensee’s premises on reasonable notice during regular business hours.

 

(e) Audit. No
more than once per calendar year, the Licensor shall have the right to retain an independent certified public accountant to
perform on behalf of the Licensor an audit of such books and records of the Licensee and its Affiliates as are necessary
(in the reasonable opinion of the auditor) to verify Gross Sales for the period or periods requested by the Licensor and the
accuracy of any report or payments made under this Agreement. If an audit reveals an underpayment, the Licensee shall
promptly pay to the Licensor the amount of such undisputed underpayment [plus interest] in accordance with Section
4.4(a). If the audit reveals that the undisputed monies owed by the Licensee to the Licensor has been understated by more
than fifteen percent (15%) for any calendar year, the Licensee shall, in addition, pay the reasonable costs of such
audit.]

 

(f) Licensee/Sublicensee
Reports, Records and Audits. If the Licensee grants any licenses or sublicenses with respect to the Licensed Products or
Licensed Technology, the agreements, certificates, documents and other instruments for such licenses and sublicenses shall
include an obligation for the sublicensee to (i) provide reports with sufficient information to allow such verification in
accordance with Section 4.4(c); (ii) maintain, for a period of six (6) years following the end of the calendar year to
which such records relate, records adequate to document and verify the proper payments to be paid to the Licensor hereunder
in accordance with Section 4.4(d); and (iii) allow the Licensor (or the Licensee if requested by the Licensor) to
verify the payments due in accordance with Section 4.4(e).

 

Section
4.5 Expenses. The Licensor shall pay or reimburse all reasonable travel and other related costs, expenses and
fees incurred by the Licensor arising from, in connection with, or related to the commissioning and supervision activities
relating to this Agreement, the MOU and the other agreements, certificates, documents and other instruments related
thereto.

 

[**Confidential
Treatment Requested] indicates that portions of this document have been redacted and filed separately with the Securities
and Exchange Commission.

 

 

    	6

     

    

 

Section
4.6 Payment Issues.

 

(a) Manner
of Payment. All payments due under this Agreement to the Licensor shall be made by bank wire transfer in immediately
available funds to an account designated by the Licensor. All amounts due and payable hereunder shall be paid in U.S. dollars
without offset, set-off, deduction or counterclaim, however arising. If any currency conversion shall be required in
connection with the calculation of amounts payable hereunder, such conversion shall be made using the average of the exchange
rates for the purchase and sale of U.S. dollars, as reported by Bank of America in New York, New York (or its successor
entity) on the last business day of the Royalty Period to which such payment pertains. With any payment in relation to which
a currency conversion is performed to calculate the amount of payment due, the Licensee shall provide to the Licensor a true,
accurate and complete copy of the exchange rates used in the calculation.

 

(b) Non-refundable,
Non-creditable Payments. Each payment that is required under this Agreement is non-refundable and
non-creditable.

 

ARTICLE
V

INTELLECTUAL
PROPERTY

 

Section
5.1 Improvements. All developments, including inventions, whether patentable or otherwise, discoveries, ideas,
improvements, trade secrets, and writings which arise from, are in connection with or relate to the Licensed Products or the
Licensed Technology, and which the Licensee, either by itself or in conjunction with any other entity, entities, person or
persons, has acquired, acquired knowledge of, conceived, developed or made while engaged in any activity on behalf of or
while acting for the Licensor or otherwise as contemplated by the MOU and the other agreements, certificates, documents and
other instruments contemplated by the MOU during the term of this Agreement (the “Improvements”),
shall, on and after the start of the Term, be owned by and shall become the sole and exclusive property of the Licensor. The
Licensee hereby assigns, conveys and transfers, and agrees to so assign, convey and transfer to the Licensor, all of its
right, title and interest in and to any and all such Improvements and to disclose in writing to the Licensor, as soon as
practicable, all Improvements that it believes in its good faith judgment may be of material significance to the Licensor,
and to reduce any such Improvements to writing at the request of the Licensor if it has not already done so. At any time, and
from time to time, upon the request and at the expense of the Licensor, the Licensee will, and will cause its Agents to,
execute and deliver any and all instruments, documents and papers, give evidence and do any and all other acts which, in the
reasonable opinion of counsel for the Licensor, are or may reasonably be necessary or desirable to document such transfer or
to enable the Licensor to file and prosecute applications for and to acquire, maintain and enforce any and all patents,
trademark registrations or copyrights under United States or foreign law with respect to any such Improvements or to obtain
any extension, validation, reissue, continuance or renewal of any such patent, trademark or copyrights. The Licensor will be
responsible for the preparation of any such documents, papers and other instruments and for the prosecution of any
such proceedings. The Licensee covenants and warrants that the Improvements will not infringe upon any copyright, patent,
trademark, trade secret or other intellectual property interest of any third party. The Licensee will indemnify and hold the
Licensor harmless from and against all such infringement claims, damages, losses and suits and damages. The Licensor shall
not enter into any settlement with respect to such infringement claims without the prior written consent of the Licensee if
the relief provided by such settlement consists of monetary damages that are to be paid by the Licensee, including, but not
limited to, attorney’s fees and costs, and shall promptly following any bona-fide claim of infringement correct the
Improvements so as not to be infringing, or secure at its own expense the right of the Licensor to use the Improvements
without infringement. Licensor is obligated to continual to improve and optimize their patented quantum dot solar cell
technology and to achieve a peak solar cell conversion efficiency of 15% on or before the 18th month following
execution of this agreement. If licensor does not achieve this target performance within this time frame the licensee will
deduct and accrue 10% from the total amount of royalties owing until such time the target performance is achieved. Once the
target is achieved the accrued royalties will be paiod to licensor.

 

 

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Section
5.2 Patent Term Restoration. The Parties shall cooperate with each other, including by providing necessary
information and assistance as the other Party may reasonably request, to obtain patent term restoration or supplemental
protection certificates or their equivalents in any country where applicable to Licensed Patents.

 

Section
5.3 Cooperation of the Parties. At the reasonable request of the responsible (as provided for in this Article
V) Party, the other Party agrees to cooperate fully in the preparation, filing, prosecution, enforcement and maintenance of
any Licensed Patents under this Agreement. Such cooperation includes executing all papers and instruments (or causing its personnel
to do so) reasonably useful to enable the other Party to apply for and to prosecute patent applications in any country; and promptly
informing the other Party of any matters coming to such Party’s attention that may affect the preparation, filing, prosecution,
enforcement or maintenance of any such Patents.

 

Section
5.4 Infringement by Third Parties.

 

(a) Notice.
Each Party shall promptly report in writing to the other Party during the term of this Agreement of any known or suspected
infringement, misappropriation or unauthorized use of Licensed Technology, of which such Party becomes aware, and shall
provide the other Party with all available evidence supporting such infringement, suspected infringement, misappropriation or
unauthorized use or suspected misappropriation or unauthorized use.

 

(b) Right
to Action. The Licensor shall have the sole and exclusive right and not the obligation to initiate a suit or take other
appropriate action that it believes is reasonably required to enforce Licensed Technology. To the extent that any such suit
or action pertains to Licensed Products, the Licensor shall give the Licensee advance notice of its intent to file any such
suit or take any such action and the reasons therefor, and shall provide the Licensee with an opportunity to make suggestions
and comments regarding such suit or action. Thereafter, to the extent any such suit or action pertains to Licensed Products,
the Licensor shall keep the Licensee promptly informed, and shall from time to time consult with the Licensee regarding the
status of any such suit or action and shall provide the Licensee with copies of all material documents (e.g., complaints,
answers, counterclaims, material motions, orders of the court, memoranda of law and legal briefs, interrogatory responses,
depositions, material pre-trial filings, expert reports, affidavits filed in court, transcripts of hearings and trial
testimony, trial exhibits and notices of appeal) filed in, or otherwise relating to, such suit or action.

 

(c) Contingent
Right to Action. If the Licensor declines to initiate a suit or take other appropriate action to enforce Licensed Patent
rights with respect to a Licensed Product within sixty (60) days of such notice, then, subject to Section 5.4(b), the
Licensee may, upon written notice to the Licensor, initiate a suit or take other appropriate action to enforce such Licensed
Patent rights. The Licensee shall keep the Licensor promptly informed, and shall from time to time consult with the Licensor
regarding the status of any such suit or action and shall provide The Licensor with copies of all material documents (e.g.,
complaints, answers, counterclaims, material motions, orders of the court, memoranda of law and legal briefs, interrogatory
responses, depositions, material pre-trial filings, expert reports, affidavits filed in court, transcripts of hearings and
trial testimony, trial exhibits and notices of appeal) filed in, or otherwise relating to, such suit or action.

 

 

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(d) Conduct
of Action. The Party initiating suit shall have the sole and exclusive right to select counsel for any suit initiated by
it under this Section 5.4. If required under applicable law in order for such Party to initiate and/or maintain such
suit, the other Party shall join as a party to the suit. If requested by the Party initiating suit, the other Party shall
provide reasonable assistance to the Party initiating suit in connection therewith at no charge to such Party except for
reimbursement of reasonable out-of-pocket expenses incurred in rendering such assistance. The Party initiating suit shall
assume and pay all of its own out-of-pocket costs incurred in connection with any litigation or proceedings described in this Section
5.4, including the fees and expenses of the counsel selected by it. The other Party shall have the right to participate
and be represented in any such suit by its own counsel at its own expense.

 

(e) Recoveries.
Any damages, license fees, royalties or other compensation (including but not limited to any amount received in settlement
of such litigation) (“Recoveries”) obtained as a result of any proceeding described in this Section
5.4 or from any counterclaim or similar claim asserted in a proceeding described in this Section 5.4, by
settlement or otherwise, shall be applied in the following order of priority:

 

	 	(i)	first,
    to reimburse each Party for all expenses of the suit incurred by such Party, including but not limited to attorneys’
    fees and disbursements, travel costs, court costs and other litigation expenses;
	 	 	 
	 	(ii)	second,
    the Licensee shall be entitled to receive that portion of the remaining Recoveries reasonably attributable to sales of the
    Licensed Product (as determined by a court of competent jurisdiction in a final, non-appealable decision); provided,
    that the Recoveries reasonably attributable to sales of Licensed Product to which the Licensee is entitled after reimbursement
    of expenses shall be treated as sales for purposes of this Agreement and the Licensor shall be entitled to receive royalties
    on such constructive sales pursuant to the terms of this Agreement as if such sales had occurred during the time period of
    the infringement; and
	 	 	 
	 	(iii)	third,
    the Party initiating the suit shall be entitled to sixty percent (60%), and the non-initiating Party shall be entitled to
    forty percent (40%), of the balance of the Recoveries.].

 

ARTICLE
VI

CONFIDENTIALITY;
PUBLICITY

 

Section
6.1 General. During the term of this Agreement, and for a period of five (5) years following the
expiration or earlier termination hereof, each Party (the “Recipient”) shall maintain in confidence
all information of the other Party (the “Disclosing Party”) that is disclosed by the other Party
and identified as, confidential at the time of disclosure (the “Confidential Information”), and
shall not use, disclose or grant the use of the Confidential Information except on a need-to-know basis to those directors,
officers, managers, employees, contractors, permitted licensees, permitted assignees and agents (collectively,
“Agents”), to the extent such disclosure is reasonably necessary in connection with performing its
obligations or exercising its rights under this Agreement. To the extent that disclosure is authorized by this Agreement,
prior to disclosure, the Recipient shall obtain agreement of any such Person to hold in confidence and not make use of the
Confidential Information for any purpose other than those permitted by this Agreement. The Recipient shall notify the
Disclosing Party promptly upon discovery of any unauthorized use or disclosure of the Disclosing Party’s Confidential
Information. Each Party agrees to take reasonable steps to ensure that the other Party’s Confidential Information shall
be maintained in confidence including such steps as it takes to prevent the disclosure of its own proprietary and
confidential information of like character. Each Party shall take all steps necessary to ensure that its directors, officers,
managers, employees, contractors, permitted licensees, permitted assignees and agents shall comply with the terms and
conditions of this Agreement.

 

 

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Section
6.2 Exclusions from Nondisclosure Obligation. The nondisclosure and nonuse obligations in Section 6.1
shall not apply to any Confidential Information to the extent that the Recipient can establish by competent written proof
that it:

 

	 	(a)	at
    the time of disclosure is publicly known;
	 	 	 
	 	(b)	after
    disclosure, becomes publicly known by publication or otherwise, except by breach of this Agreement by the Recipient;
	 	 	 
	 	(c)	was
    in the Recipient’s possession in documentary form at the time of disclosure hereunder;
	 	 	 
	 	(d)	is
    received by the Recipient from a Third Party who has the lawful right to disclose the Confidential Information and who shall
    not have obtained the Confidential Information either directly or indirectly from the disclosing Party; or
	 	 	 
	 	(e)	is
    independently developed by such Party (i.e., without reference to Confidential Information of the disclosing Party).

 

Section
6.3 Required Disclosures. If either Party is required, pursuant to a governmental law, regulation or order, to
disclose any Confidential Information of the other Party, the receiving Party, if practicable (a) shall give advance written
notice to the disclosing Party, (b) shall make a reasonable effort to cooperate with the other Party’s efforts to
obtain a protective order requiring that the Confidential Information so disclosed be used only for the purposes for which
the law or regulation required and (c) shall disclose the Confidential Information solely to the extent required by the law
or regulation; provided however, that this Section 6.3 shall not permit any disclosure or use of such
Confidential Information beyond the required disclosure (and shall not permit use of the disclosed information, if disclosure
remains confidential from the general public, as may be the case of information disclosed pursuant to a protective
order).

 

Section
6.4 Terms of Agreement. The terms of this Agreement are the Confidential Information of both Parties. However,
each Party shall be entitled to disclose the terms of this Agreement under legally binding obligations of confidence and
limited use to: legal, financial and investment banking advisors; and potential and actual investors, lenders, acquirors and
licensees or sublicensees and counsel for the foregoing. In addition, if legally required, a copy of this Agreement and or
description thereof may be filed or furnished by either Party with the U.S. Securities and Exchange Commission (or relevant
non-U.S. counterpart). In that case, the filing Party will if requested by the other Party diligently seek confidential
treatment for terms of this Agreement for which confidential treatment is reasonably available, and shall provide the
non-filing Party reasonable advance notice of the terms proposed for redactions and a reasonable opportunity to request that
the filing Party make additional redactions to the extent confidential treatment is reasonably available under the
law.

 

 

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Section
6.5 Return of Confidential Information. Promptly after the termination or expiration of this Agreement for any
reason, each Party shall return to the other Party all tangible manifestations of such other Party’s Confidential
Information at that time in the possession of the receiving Party.

 

Section
6.6 Publicity. Except as provided by Section 6.4, other than a mutually agreed press releases (should the
Parties so agree), and other than repeating information in mutually agreed press releases, neither Party will generate or allow
any publicity regarding this Agreement or the transaction contemplated hereunder. Notwithstanding the foregoing, each Party may
make such public announcements as may be required in order to comply with applicable securities laws and regulations, but in this
case shall if practicable first confer and seek approval from (i.e., attempt to reach consensus with) the other Party as to what
will be said in the disclosure, allowing a reasonable time prior to the disclosure for the other Party to review and for the attempt
to reach consensus as to the text of any such required disclosure in advance.

 

ARTICLE
VII

DISCLAIMERS

 

Section
7.1 Limitation of Liability. EXCEPT TO THE EXTENT SUCH PARTY MAY BE REQUIRED TO INDEMNIFY THE OTHER PARTY UNDER ARTICLE
VIII (INDEMNIFICATION) OR AS REGARDS A BREACH OF A PARTY’S RESPONSIBILITIES PURSUANT TO ARTICLE VI
(CONFIDENTIALITY), NEITHER PARTY NOR ITS RESPECTIVE AFFILIATES SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT, EXEMPLARY,
CONSEQUENTIAL OR PUNITIVE DAMAGES HEREUNDER, WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE.

 

Section
7.2 Disclaimer of Warranties. THE LICENSOR MAKES NO REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS OR IMPLIED,
AND EXPLICITLY DISCLAIMS ANY REPRESENTATION AND WARRANTY, INCLUDING WITH RESPECT TO ANY ACCURACY, COMMERCIAL UTILITY, COMPLETENESS,
FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, NON-INFRINGEMENT OR TITLE FOR THE INTELLECTUAL PROPERTY, PATENT RIGHTS, LICENSE
AND ANY LICENSED PRODUCT PROVIDED OR MANUFACTURED BY THE LICENSOR OR ANY AUTHORIZED THIRD PARTY. Furthermore, nothing in this
Agreement will be construed as:

 

	 	(a)	a
    representation or warranty by the Licensor as to the validity or scope of any Licensed Patent;
	 	(b)	a
    representation or warranty that anything made, used, sold or otherwise disposed of under the License is or will be free from
    infringement of patents, copyrights, trademarks or any other forms of intellectual property rights or tangible property rights
    of Third Parties;
	 	(c)	obligating
    the Licensor to bring or prosecute actions or suits against Third Parties for patent, copyright or trademark infringement;
	 	(d)	conferring
    by implication, estoppel or otherwise any license or rights under any Patent rights of the Licensor, regardless of whether
    such Patent rights are dominant or subordinate to rights under the Licensed Patents; and
	 	(e)	obligating
    the Licensor to furnish any know-how except for the Licensed Know-How.

 

 

    	11

     

    

 

Section
7.3 Covenants.

 

(a) Covenants
of the Licensee. The Licensee, its Affiliates and Sublicensees shall not, directly or indirectly (including where such is
done by a Third Party on behalf of the Licensee, its Affiliates or Sublicensees, at the urging of the Licensee,
its Affiliates or Sublicensees or with the assistance of the Licensee, its Affiliates and/or Sublicensee) bring an action
to challenge the enforceability or validity of any Licensed Patent or other Licensed Technology.

 

(b) Compliance
with Laws. Each Party agrees to comply with all applicable laws, ordinances,
regulations, rules, statutes or other pronouncement having the effect of law of any city, county, federal, multinational,
national, provincial, state or other political subdivision, domestic or foreign, that apply to its activities or
obligations under this Agreement, including but not limited to United States export laws and regulations and laws and
regulations requiring the approval, consent, license, permit or other authorization from an applicable agency of the United
States government regarding the export of data or materials to certain foreign countries without prior approval of the
agency.

 

ARTICLE
VIII

INDEMNIFICATION

 

Section
8.1 Indemnification. Each Party hereby agrees to indemnify, save and hold harmless the other Party and its
officers, directors, shareholders, managers, members, partners, trustees, agents, contractors and employees (the
“Indemnities”), as applicable, from and against, any and all assessments, charges, claims, costs,
damages, deficiencies, expenses, fines, interest, liabilities, losses, penalties and taxes (including, without limitation,
attorneys’ fees, costs of investigation and court costs, each a “Claim”) asserted against,
imposed on or incurred by such person or entity (or any of them) in any way relating to or arising from, in connection with
or relating to any breach of, inaccuracy in or violation of any agreement, covenant, indemnity, obligation, representation or
warranty of the indemnifying Party or the failure of the indemnifying Party to perform any of its agreements, covenants,
promises or obligations contained in this Agreement to the extent authorized by law.

 

Section
8.2 Procedures. In the event of a Third-Party Claim, the applicable Indemnitee shall (a) provide prompt written
notice of any Third-Party Claim giving rise to an indemnification obligation hereunder, (b) permit the indemnifying Party to assume
full responsibility to investigate, prepare for and defend against any such Third-Party Claim, (c) provide reasonable assistance
in the defense of such claim at the indemnifying Party’s reasonable expense, and (d) not compromise or settle such Third-Party
Claim without the indemnifying Party’s advance written consent. If the Parties cannot agree as to the application of the
foregoing Section 8.1, each may conduct separate defenses of the Third-Party Claim, and each Party reserves the right to
claim indemnity from the other in accordance with this Article VIII upon the resolution of the underlying Third-Party Claim.

 

 

    	12

     

    

 

ARTICLE
IX

TERM

 

Section
9.1 Term. The term of this Agreement shall commence on the Effective Date and shall expire on a country-by-country
basis on the expiration of the last Royalty Term for a Product in the particular country (and payment of any required
payments to the Licensor in such country), in each case, unless earlier terminated by a Party as set forth below in this Article
IX.

 

Section
9.2 Material Breach. If either Party believes that the other is in breach of its material obligations hereunder,
then the non-breaching Party may deliver notice of such breach to the other Party. For all breaches other than a failure to
make a payment set forth in this Agreement, the breaching Party shall have sixty (60) days to cure such breach from the
receipt of the notice. For any breach arising from a failure to make a payment set forth in this Agreement, the breaching
Party shall have thirty (30) days from the receipt of the notice to cure such breach. If the Party receiving notice of breach
fails to cure that breach within the applicable period set forth above, then the Party originally delivering the notice of
breach may terminate this Agreement on written notice of termination.

 

Section
9.3 Effect of Expiration or Termination.

 

(a) Terminated
Licenses. Upon termination of this Agreement other than for Licensee’s breach, the licenses granted to the
Licensee in Section 3.1 shall terminate solely with respect to the Licensed Product(s) and country(ies) in which the
termination becomes effective.

 

(b) Survival.
Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such
expiration or termination, including outstanding payments to the Licensor by the Licensee, and the provisions of Article
IV (Financial Terms), Article V (Intellectual Property), Article VI (Confidentiality), Article VII
(Disclaimers), Article VIII (Indemnification), Article IX (Term) and Article X (Miscellaneous) shall
survive the expiration or termination of this Agreement.

 

(c) Commercialization
Wind-Down Period. Provided that the Licensee, its Affiliates and its sublicensees, as applicable, are not in breach of
any provision of this Agreement at the time of termination, such party shall be permitted to distribute and sell remaining
Licensed Products that were in inventory or in production on an effective termination date for a period of twelve (12) months
following the effective termination date (“Commercialization Wind-Down Period”). The Licensee, its
Affiliates and its sublicensee (as applicable) shall make all payments to the Licensor on sales of such Licensed Products and
meet all other obligations in accordance with the terms of this Agreement during the Commercialization Wind-Down
Period.

 

(d) Sublicenses.
Notwithstanding the foregoing, termination of this Agreement shall not be construed as a termination of any sublicense of
any sublicensee in good standing hereunder, and thereafter each such sublicensee shall be considered a direct licensee of the
Licensor, provided that (i) the Licensee has first represented and warranted to the Licensor that, to the Licensees’
actual knowledge, as of the effective date of such termination, such sublicensee is then in full compliance with all terms
and conditions of its sublicense, and (ii) such sublicensee agrees in writing to assume all applicable obligations of the
Licensee under this Agreement.

 

 

    	13

     

    

 

ARTICLE
X

MISCELLANEOUS

 

Section
10.1 Successors and Assignment. This Agreement may not be assigned by either Party without the other Party’s
prior written consent; provided that either Party shall be permitted to assign its rights and obligations hereunder, without
the other Party’s consent, to a third party in the event of a change in control or any sale, assignment, transfer or
other conveyance to such third party of all or substantially all of the business or assets of the assigning Party or
corporate restructuring involving all or substantially all of the assigning Party’s voting securities or other
ownership interests. In addition, the Licensor may assign this Agreement, or any of its rights under this Agreement, in
connection with the sale of, monetization of, transfer of, or obtaining financing on the basis of the payments due to the
Licensor under this Agreement or debt or project financing in connection with this Agreement, it being understood and agreed
that such assignment shall not undo the license or assignment to the Licensee in Section 3.1. Subject to the
foregoing, this Agreement shall be binding on the Parties and their respective successors and permitted assigns, and such
permitted assigns shall expressly agree to be bound by all the terms and conditions herein. No partial assignment of the
rights or obligations granted hereunder shall be permitted. The Parties agree that the terms of this Agreement shall apply
only to themselves and are not for the benefit of any third party beneficiaries.

 

Section
10.2 Amendments. This Agreement may not be altered, amended or modified except by a written instrument
executed by all Parties hereto.

 

Section
10.3 Notices. Any notices to be given hereunder by any Party to the other may be effected either by personal
delivery in writing, by mail, registered or certified, postage prepaid with return receipt requested, by facsimile or by
e-mail. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed
communicated as of three (3) days after mailing; facsimile and e-mail notices shall be deemed communicated one (1) business
day after transmission, receipt confirmed. Notices shall be addressed to the Parties at the addresses listed on the signature
page to this Agreement. Each Party may change its address or other information by written notice in accordance with this
Section.

 

Section
10.4 Governing Law. This Agreement shall be construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Agreement shall be governed by, the laws of the
Texas USA, without giving effect to provisions thereof regarding conflict of laws. Any action or proceeding seeking to
enforce any provision of, or based on any right arising out of, this Agreement shall be brought against any of the parties in
the courts of the State of Texas, County of Travis, or, if it has or can acquire jurisdiction, in the United States District
Court for the District which includes the County of Travis, and each of the parties hereby irrevocably and unconditionally
consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding,
waives any objection to venue laid therein and agrees not to commence any action, suit or proceeding relating thereto except
in such courts. Process in any action or proceeding referred to in the preceding sentence may be served on any Party anywhere
in the world.

 

Section
10.5 Enforcement of This Agreement. Any failure by a Party to take immediate action with respect to a breach of
any provision of this Agreement does not waive such Party’s right to act with respect to such breach or any other
breach. Any action or inaction by a Party in response to any breach of this Agreement does not limit such Party’s
rights with respect to actions it may take in response to any other similar or different type of breach.

 

 

    	14

     

    

 

Section
10.6 Severability. If any portion of this Agreement is found to be invalid or unenforceable by any court of
competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Further, any provision
of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not
held invalid or unenforceable.

 

Section
10.7 Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to
the matters set forth herein, and supersedes any prior agreement between the Parties with respect to the subject matter of this
Agreement. No Party has made any agreements, covenants, promises, representations or warranties relating to the subject matter
of this Agreement except as otherwise set forth herein, and any prior agreements or understandings not specifically set forth
herein shall be of no force or effect.

 

Section
10.8 Headings. Headings in this Agreement are for reference only and do not limit the scope or extent of such
section.

 

Section
10.9 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via
facsimile, electronic mail or other transmission method and any counterpart so delivered shall be deemed to have been duly
and validly delivered and be valid and effective for all purposes.

 

Section
10.10 Relationship. No agency, employee-employer, franchiser-franchisee, joint venture, partnership or other
relationship is intended or created by this Agreement.

 

Section
10.11 Force Majeure. Neither Party shall be responsible or liable to the other Party for nonperformance or delay
in performance of any terms or conditions of this Agreement due to acts of God, acts of governments, wars, riots, strikes or
other labor disputes, fire, flood, or other causes beyond the reasonable control of the nonperforming or delayed Party and
without the negligence of such Party.

 

[Signature
page follows.]

 

 

    	15

     

    

 

IN
WITNESS WHEREOF, the Parties have by duly authorized persons executed this Agreement as of the date first written above.

 

	 	Quantum
    Materials Corporation
	 	 	 
	 	By:	/s/
    Stephen B. Squires
	 	Name:	Stephen
    B. Squires
	 	Title:	President
    & CEO
	 	 	 
	 	Address
    for Notices:
	 	 	 
	 	3055
    Hunter Road
	 	San
    Marcos, Texas 78666
	 	Attn:
    Stephen Squires
	 	Email:
    ssquires@qmcdots.com
	 	 	 
	 	Amtronics
    CC
	 	 	 
	 	By:	/s/
    Dr. George Anthony Balchin
	 	Name:	Dr.
    George Anthony Balchin
	 	Title:	Managing
    Director
	 	 	 
	 	Address
    for Notices:
	 	 	 
	 	 	 
	 	 	 
	 	Attn:
    	 
	 	Email:
    	 

 

 

    	 

     

    

 

Schedule
A

 

MILESTONES
- Licensee

 

	 	a)	Within
    60 days of execution of this agreement licensee will provide proof of funding in the amount of Twenty million U.S. dollars
    ($20,000,000.00) for this project.
	 	b)	Within
    120 days of execution of this agreement licensee will provide proof that construction on the facility has commenced.
	 	c)	Within
    no later than 120 days of execution of this agreement licensee will place purchase orders and pay deposits on the purchase
    of the initial lab equipment to include but not be limited to the Schlenk lines, Micro reactors and support equipment.
	 	d)	Within
    210 days of execution of this agreement licensee will provide proof that construction on the facility has been completed.
	 	e)	Within
    300 days of execution of this agreement licensee will provide proof that quantum dot production has commenced at the Assam
    facility.
	 	f)	Within
    30 months of execution of this agreement licensee will provide proof that solar cell production has been established. 

 

MILESTONES
– Licensor

 

	 	a)	Licensor
    is obligated to continual to improve and optimize their patented quantum dot solar cell technology and to achieve a peak solar
    cell conversion efficiency of 15% on or before the 18th month following execution of this agreement. If licensor
    does not achieve this target performance within this time frame the licensee will deduct and accrue 10% from the total amount
    of royalties owing until such time the target performance is achieved. Once the target is achieved the accrued royalties will
    be paid to licensor.
	 	b)	Licensor
    is obligated to timely ship production and process equipment and to insure all equipment is of the latest generation. Licensor
    will make all shipments expeditiously and any shipments that are delayed beyond the initial target date and effect the licensee
    milestone dates will automatically add 15 days to the licensee milestone dates referenced above.

 

Annual
Minimum Royalties

 

Annual
minimum royalties will commence on January 15, 2021 and will be as follows:

 

January
15th , 2021 Minimum royalty = $[**Confidential Treatment Requested]

January
15th , 2022 Minimum royalty = $[**Confidential Treatment Requested]

January
15th , 2023 Minimum royalty = $[**Confidential Treatment Requested]

January
15th , 2024 Minimum royalty = $[**Confidential Treatment Requested]

January
15th , 2025 Minimum royalty = $[**Confidential Treatment Requested]

 

Since
robust sales are anticipated from 2025 forward annual minimum royalties will likely no longer be relevant. In the event this is
not the case annual minimum royalties of $[**Confidential Treatment Requested] will be used as default to perpetuity.

 

[**Confidential
Treatment Requested] indicates that portions of this document have been redacted and filed separately with the Securities
and Exchange Commission.PARTIAL
PAYMENT AND TEMPORARY STAND STILL AGREEMENT

 

THIS
PARTIAL PAYMENT AND TEMPORARY STAND STILL AGREEMENT (this “Partial Payment Agreement”) is entered
into as of January 14, 2019, by and among Quantum Materials Corp., a Nevada corporation (the “Company”),
Carson Diversified Investments, LP, a Texas limited partnership (“Diversified”), and Carson Haysco Holdings,
LP, a Texas limited partnership (“Haysco,” and together with Diversified, the “Holders”).
Each of the parties to this Partial Payment Agreement will be referred to individually as a “Party”
or jointly as the “Parties.”

 

WHEREAS,
the Company and Holders entered into that certain Amended and Restated Subscription Agreement dated January 15, 2015 (the
“Subscription Agreement”).

 

WHEREAS,
the Company previously issued that certain Convertible Debenture, dated January 15, 2015 (the “Diversified Debenture”),
in the original principal amount of $250,000 to Diversified.

 

WHEREAS,
the Company previously issued that certain Convertible Debenture, dated January 15, 2015 (the “Haysco Debenture,”
and together with the Diversified Debenture, the “Debentures”), in the original principal amount of
$250,000 to Haysco.

 

WHEREAS,
the Parties previously entered into that certain agreement, dated as of October 10, 2016 (the “First Extension Agreement”),
for the purpose of, among other things, amending the Debentures to extend the Maturity Date of each of the Debentures.

 

WHEREAS,
the Parties previously entered into that certain Ten-Day Extension Agreement, dated as of January 12, 2018 (the “Ten-Day
Extension Agreement”), for the purpose of amending the Debentures to extend the Maturity Date of each of the Debentures.

 

WHEREAS,
the Parties previously entered into that certain Extension Agreement, dated as of January 24, 2018 (the “2018 Extension
Agreement), for the purpose of, among other things, amending the Debentures to extend the Maturity Date of each of the Debentures,
allow for the partial conversion of the Debentures at Holders’ election, and to expand the secured interest for each Debenture
to include both the Phase 1 and Phase 2 Microreactors.

 

WHEREAS,
the Holders sent Company a Notice of Default and Immediate Demand for Payment on December 21, 2018 via certified mail after
Company did not pay the outstanding principal amounts due to Diversified and Haysco on the Maturity Date.

 

WHEREAS,
the Parties desire to amend the Debentures as set forth in this Amendment.

 

NOW,
THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree, intending to be legally bound, as follows:

 

Section 1. Payments.

 

	 	(a)	Diversified
Payments. The Company shall pay to Diversified:

 

	 	(i)	$75,000.00
    in immediately available funds by cash or wire transfer on the date of this Amendment as a payment applicable first to interest
    accrued on the outstanding principal since December 15, 2018 at the Default Rate (as defined in Section 1C of the Debentures)
    and then to the original principal amount; and

 

    	 

     

    

 

	 	(ii)	the
    remaining outstanding principal amount under the Diversified Debenture, plus all accrued and unpaid interest on the Diversified
    Debenture at the Default Rate, on the Amended Maturity Date (as defined in Section 2 below).

 

	 	(b)	Haysco
Payments. The Company shall pay to Haysco:

 

	 	(i)	$75,000.00
    in immediately available funds by cash or wire transfer on the date of this Amendment as a payment applicable first to interest
    accrued on the outstanding principal since December 15, 2018 at the Default Rate and then to the original principal amount;
    and
	 	 	 
	 	(ii)	the
    remaining outstanding principal amount under the Haysco Debenture, plus all accrued and unpaid interest on the Haysco Debenture
    at the Default Rate, on the Amended Maturity Date.

 

(c) Effect
of Payments. Upon full payment of the funds described in Section 1(a) and Section 1(b) above, each Holder
agrees, covenants, promises, represents and warrants that:

 

	 	(i)	all
    indebtedness of the Company owed to such Holder on, as of and through the Amended Maturity Date (the “Outstanding
    Amounts”), and all guaranties, liens, pledges, security interests, subordinating interests and other collateral
    interests that may have been granted or created in favor of such Holder in connection with Outstanding Amounts (including
    but not limited to the security interests granted in Section 3 of each of the Debentures, as amended, the “Collateral
    Interests”), shall be discharged, paid, released, satisfied and terminated in full and shall be of no further
    force and effect;
	 	 	 
	 	(iii)	to
    evidence the foregoing, such Holder agrees to execute such UCC-3 termination statements, assignments and other releases and
    discharges as shall reasonably be accurately prepared and requested by the Company related to the secured interests granted
    by the Debentures. After receipt of the Outstanding Amounts, the Company or its designee is authorized to file any and all
    UCC termination statements as may be necessary to release the liens and security interests granted to the Holders pursuant
    to each of the Debentures at the Company’s expense; and
	 	 	 
	 	(iv)	such
    Holder shall, upon receipt of the its respective portion of the Outstanding Amounts, forward the original Diversified Debenture
    or Haysco Debenture, as applicable, to the Company.

 

Section
2. Amendment to Debentures. The Maturity Date, as defined in Section 2(A) of each of the Debentures and as
amended, shall be March 1, 2019 (herein the “Amended Maturity Date”).

 

Section
3. Standstill. Each of the Holders agrees, covenants, promises, represents and warrants that it shall not do any
of the following prior to the Maturity Date:

 

	 	(a)	exercise
    any remedy under either or both of the Debentures with respect to any Event of Default or any other breach, default or other
    violation under either or both of the Debentures or the other agreements, certificates, documents and other instruments described
    in Section 15(D) of each of the Debentures, including but not limited to the any rights under Section 3 of each of the Debentures;
    or

 

    	2

     

    

 

	 	(c)	demand
    any payment of principal, accrued and unpaid interest, penalties or any other amounts under either or both of the Debentures
    prior to the Amended Maturity Date.

 

Section
4. Full Force and Effect. This Amendment is not intended by the parties to be a novation of the Debentures, and,
except as expressly modified herein, all agreements, covenants, obligations, promises, representations, terms or warranties as
set forth in the Debentures are hereby reaffirmed and shall otherwise remain in full force and effect as originally written, including,
but not limited to, Holders’ rights of partial conversion of any outstanding principal balance as granted in Section 1(b)
of the 2018 Extension Agreement. Any reference to either Debenture shall refer to such Debenture as amended by the First Extension
Agreement, the Ten-Day Extension Agreement, the 2018 Extension Agreement, and this Partial Payment Agreement. The execution, delivery
and performance of this Partial Payment Agreement shall not operate as a limitation or waiver of or, except as expressly set forth
herein, as an amendment to any power, remedy or right of the Holders under their respective Debentures.

 

Section
5. Governing Law. This Partial Payment Agreement shall be construed and enforced in accordance with, and all
questions concerning the construction, validity, interpretation and performance of this Partial Payment Agreement shall be
governed by, the laws of the State of Texas without giving effect to provisions thereof regarding conflict of
laws.

 

Section
6. Counterparts. This Partial Payment Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via
facsimile, electronic mail or other transmission method and any counterpart so delivered shall be deemed to have been duly and
validly delivered and be valid and effective for all purposes.

 

[Signature
page follows.]

 

    	3

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.

 

	 	QUANTUM
    MATERIALS CORP.
	 	 	 
	 	By:
    	/s/
    Stephen     B. Squires
	 	Name:
    	Stephen
    B. Squires 
	 	Title:
    	President
    
	 	 	 
	 	CARSON
    DIVERSIFIED INVESTMENTS, LP
	 	 	 
	 	By:
    	Carson
    Diversified GP, LLC,
	 	 	its
    General Partner

	 	 	 	 
	 	 	By:
    	/s/
    W.     C. Carson 
	 	 	Name:
    	W.C
    Carson 
	 	 	Title:
    	Manager
    of the General Partner 
	 	 	 	 

	 	CARSON
    HAYSCO HOLDINGS, LP
	 	 	 
	 	By:
    	Carson
    Diversified GP, LLC,
	 	 	its
    General Partner
	 	 	 

	 	 	By:
    	/s/
    W. C. Carson 
	 	 	Name:
    	W.C
    Carson 
	 	 	Title:
    	Manager
    of the General Partner

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