Document:

SITRICK
AND COMPANY

A
division of Sitrick Brincko Group LLC, a subsidiary of Resources Global Professionals

  

April
23, 2015

 

Mr.
Kevin Maloney, Co-Founder and CEO

Quantum Sphere, Inc.

2905
Tech Center Drive

Santa Ana, CA 92705

 

Dear
Mr. Maloney:

 

This
letter, when accepted on behalf of QuantumSphere, Inc., a Nevada corporation (“Client”), as provided below, will constitute
the agreement with respect to the engagement of Sitrick And Company, a division of Sitrick Brincko Group, LLC (“Sitrick”)
as corporate communications and investor relations advisor, specialist and consultant on the following terms and conditions (“Agreement”):

 

	 	1.	Client,
    effective as of April 23, 2015, has retained Sitrick to provide consulting advice and public relations services.
	 	 	 
	 	2.	Client
    will engage Sitrick for a 12-month period from the effective date noted in  Section 1·above to perform the planned
    roles, activities and responsibilities summarized on Exhibit 1 (“Scope of Work”) attached which is incorporated
    as part of this Agreement.
	 	 	 
	 	3.	For
    the first six months of this engagement starting with the effective date in #1 above, Client shall pay Sitrick monthly fee
    of $10,000 in cash. It is agreed that the first two monthly payments can be paid by Client anytime up to sixty (60) days past
    the normal due dates set forth in Section 7 hereof without penalty. For the second six months of this engagement, Client shall:
    a) pay Sitrick $10,000 in cash per month on the first day of each month, plus b) issue to Sitrick 5,000 fully paid, nonassessable
    shares of unregistered, restricted Client common stock per month on the first day of each month with no-cost piggyback registration
    rights (the “Shares”), plus c) issue to Sitrick a common stock purchase warrant (“Warrant”) in the
    form attached hereto as Exhibit 2 on the date of this Agreement entitling Sitrick, or its assigns, to purchase one (1) fully-paid,
    nonassessable share of Client common stock for each Share issued pursuant to this Agreement. The Warrant shall have: a) a
    strike price equal to $2.00 per Share, b) a five-year term, c) anti-dilution protection for stock splits, stock dividends,
    reorganizations and other customary anti-dilution terms set forth in Exhibit 2, and d) other usual and customary terms typical
    of warrants issued to investors, including, without limitation, typical representations, warranties and indemnities by Client,
    no-cost piggyback registration rights and cashless exercise rights. The Warrant shall be issued in conjunction with the execution
    of this Agreement and shall have such vesting, exercise and other terms and conditions as are set forth in the form attached
    hereto as Exhibit 2.

 

11999
San Vicente Boulevard / Penthouse / Los Angeles, CA 90049 / office 310 788 2850 / fax 310 788 2855

LOS ANGELES        NEW YORK        SAN
FRANCISCO        CIDCAGO        WASIDNGTON D.C.

  

    	 	 	 

     

    

 

April
23, 2015

 

	 	 4.	Client
will also reimburse Sitrick for all out-of-pocket expenses paid to third parties. All individual out-of-pocket expenses in excess
of $1,000 shall require the consent of Client. Client’s obligation to pay Sitrick for fees and expenses is not contingent
upon obtaining any particular result(s).
	 	 	 
	 	5.	In
    addition,     Sitrick may request a “success fee” if we believe we have performed services for a client which
    result in significant     benefits to the client beyond those we believe a normal investor relations, consulting and public
    relations firm could achieve.     In this event, we would meet with you in advance and discuss any such proposed success fee
    with you, which success fee would     be subject to your written agreement.
	 	 	 
	 	6.	Please
    review our invoices upon receipt. If you have any questions, please feel free to contact us. However, unless we receive
    written     notification to the contrary within thirty days of the date of the invoice, we will assume that there is no
    objection to the     invoice as submitted, and, in the absence of such written objection, Client agrees to the reasonableness
    of the fees and expenses     charged and the necessity of the services rendered under this engagement.
	 	 	 
	 	7.	Client
    shall, within twenty days of date of invoice, pay Sitrick for (a) any and all fees, and (b) for all out-of-pocket costs and
    expenses (which were not covered by an expense advance and that do not violate Section 4 above) which are incurred by Sitrick
    in connection with its engagement hereunder. Such costs and expenses include, without limitation, travel costs, production
    costs, long distance and photocopy charges, advertisements and other out-of-pocket costs and expenses. With respect to travel
    costs, Client will reimburse Sitrick for actual costs incurred, unless non-commercial transportation is used, in which case
    Client will reimburse Sitrick for transportation costs that Sitrick would have incurred by using commercial transportation.
    When in New York, if an apartment available to Sitrick personnel is used in lieu of a hotel, the cost of a standard room at
    The Grand Hyatt or comparable hotel will be charged. Client agrees that Sitrick shall have the right, at the conclusion or
    termination of the engagement, to apply any unused expense advance against unpaid fees.
	 	 	 
	 	8.	Sitrick’s
    engagement hereunder may be terminated by either party on 30 days prior written notice after a minimum initial term of six
    months from the date specified in Section 1 above.
	 	 	 
	 	9.	All
    provisions of this Agreement relating to (i) the payment of fees, costs and expenses, and (ii) indemnification, will survive
    conclusion of the engagement or any termination of the engagement by either party.
	 	 	 
	 	10.	In
    the event any employee of Sitrick, at any time, is required or requested to participate or provide testimony, documents or
    other evidence in any action, arbitration or other proceeding relating, directly or indirectly, to our engagement, whether
    or not our engagement has been terminated or concluded, Client shall pay Sitrick for the time spent in preparing for and providing
    such participation or testimony, at Sitrick’s thet;t standard billing rates, and for any costs and expenses, including
    attorneys’ fees, incurred in connection therewith.

 

    	 	2	 

     

    

 

April
23, 2015

  

	 	11.	Client
    agrees to indemnify and hold harmless Sitrick, its shareholders, parent company, affiliates, officers, directors, employees
    and agents (each such entity or person being referred to as an “Indemnified Person”) from and against any and
    all losses, claims, damages, liabilities, costs and expenses (including for Indemnified Person’s own negligence, passive
    or active, and including, but not limited to, reasonable attorneys’ fees) which any Indemnified Person may be subject
    to or incur in connection with the services rendered by Sitrick to or for Client. This paragraph shall not apply to any such
    losses, claims, damages, liabilities, costs or expenses of any Indemnified Person that are judicially and finally determined
    to have resulted from Sitrick’s or such other Indemnified Person’s gross negligence or willful misconduct.
	 	 	 
	 	12.	Each
    of the parties hereto agrees to keep this Agreement, and the terms and conditions hereof, including invoices, billing statements
    and time sheets, strictly confidential, except only as may be necessary to enforce this Agreement or as required to be disclosed
    by law or judicial process; provided, however, that Client acknowledges and consents to Sitrick disclosing to the media or
    others that Sitrick is acting in its capacity as a public relations firm for the benefit of Client.
	 	 	 
	 	13.	In
    the performance of this Agreement, Sitrick may receive, or otherwise have access to, confidential, proprietary and/or other
    nonpublic information belonging to Client, some or all of which may be specifically designated by Client as confidential (“Confidential
    Information”).
	 	 	 
	 	14.	Sitrick
    agrees to maintain in strictest confidence all Confidential Information and to take reasonable measures to maintain the confidentiality
    of such information. Sitrick agrees, with respect to such Confidential Information, to use the same methods and degree of
    care to prevent disclosure of such Confidential Information as it uses to prevent disclosure of its own proprietary and Confidential
    Information. Sitrick further agrees not to use, or disclose to any third party, any Confidential Information for any purpose
    without the prior consent of Client or unless compelled by court order or other legal or governmental process requiring such
    disclosure. Notwithstanding the foregoing, confidentiality obligations shall not apply to any information which (i) enters
    (or has entered) the public domain through no fault of Sitrick; (ii) which was known to Sitrick prior to receipt from Client;
    (iii) is or becomes available to Sitrick on a non-confidential basis from a source other than Client (unless Sitrick is aware
    of a duty of confidentiality on the part of the source owed to Client); (iv) which is independently developed or acquired
    by Sitrick without reference to, or use of, Confidential Information; or (v) which is permitted to be disseminated or otherwise
    disclosed pursuant to the next paragraph of this Agreement.

  

    	 	3	 

     

    

  

April
23, 2015

 

	 	15.	 It
    is expressly understood between the parties that a key function Sitrick will be providing in connection with its public relations
    services will be the dissemination of information and materials as an investor and public relations firm, including the disclosure
    and dissemination of certain information and materials received from Client or its affiliated representatives, agents, and/or
    entities or as to which Client has consented to its dissemination and disclosure or which prior to such disclosure and dissemination,
    has not been specifically identified and designated by Client as Confidential Information not to be disclosed. Notwithstanding
    the foregoing or anythirig in this Agreement to the contrary, it shall be the responsibility of Client to specifically identify
    and designate to Sitrick the information provided to Sitrick which is not to be disclosed because it is Confidential Information.
	 	 	 
	 	16.	In
    the event that Sitrick is requested or required to produce: (i) any Confidential Information or (ii) any documents generated
    by Sitrick in connection with this engagement by subpoena, request for information or documents, production of records consistent
    with its retention as Client’s expert, or other similar legal process (“Request”), Sitrick will provide
    Client prompt written notice of the Request so that Client may seek a protective order or otherwise seek to limit or protect
    such Confidential Information and/or documents from disclosure. The Recipient expressly agrees to comply with all applicable
    federal securities laws with respect to trading on “material, nonpublic information.” Client agrees to give
    Sitrick prompt notice of the opening of each trading window under the Client’s Insider Trading Policy and Sitrick shall
    be permitted to trade in securities of the Client in a manner not inviolation of applicable federal securities laws or the
    Client’s Insider Trading Policy.
	 	 	 
	 	17.	We
    wish to point out that as a firm with a diversified practice we are often called upon to represent clients in many fields
    and with different interests. It is expressly understood between the parties that Sitrick will not represent another client
    on the particular subject matter of substantive work performed under this engagement where such other client is adverse to
    Client on that subject matter. However, nothing contained herein in any way prohibits or restricts Sitrick from representing
    a client now or in the future whose interests conflict with or are adverse to Client on matters other than the particular
    subject matter of substantive work performed under this engagement. In such event, Sitrick would of course maintain the confidentiality
    of information provided by you.
	 	 	 
	 	18.	Each
of the parties agrees not to solicit for employment, or employ any employee of the other during the pending of Sitrick’s
engagement and for a period of two years thereafter. Ifeither party hires an employee of the other during the engagement or within
the two year period following the conclusion or termination of the engagement, the hiring party agrees to pay the employer of
the employee(s) so hired, as liquidated damages, a fee equal to one hundred percent of the annualized total gross billings generated
by each such hired employee for the twelve-month period prior to such employee’s departure, or the annual gross salary of
the employee at the time of departure, whichever is higher in dollar amount. All terms contained in this paragraph will survive
for a period of two years following the date of any termination or conclusion of this engagement. 

 

    	 	4	 

     

    

  

April
23, 2015

 

	 	19. 	 Any
    sums not paid to Sitrick pursuant to this Agreement within thirty days of date of invoice shall bear interest at the rate
    of ten percent (10%) per annum. By signing this Agreement, we agree that, in the event of any dispute or claim arising out
    of or relating to this Agreement, our relationship, our charges, or our services, SUCH DISPUTE OR CLAIM SHALL BE RESOLVED
    BY SUBMISSION TO FINAL AND BINDING ARBITRATION BEFORE A SINGLE NEUTRAL ARBITRATOR IN LOS ANGELES COUNTY, UNDER THE AUSPICES
    AND RULES OF JUDICIAL ARBITRATION AND MEDIATION SERVICES (“JAMS”) USING JAMS STREAMLINED PROCEDURES. BY AGREEING
    TO ARBITRATE CLIENT WAIVES ANY RIGHT IT MAY HAVE TO A COURT OR JURY TRIAL. Judgment upon such arbitration may be entered in
    the Superior Court for Los Angeles County, California, which the parties agree has, and hereby consent to, jurisdiction over
    all such matters. This Agreement shall be interpreted and enforced in accordance with the substantive laws of the State of
    California applicable to contracts made and to be performed therein. In the event that a dispute arises hereunder, the prevailing
    party in any litigation or arbitration shall be entitled to attorneys’ fees and all costs and expenses of any sort.
	 	 	 
	 	20.	If any term or provision of this Agreement shall be declared invalid by order, decree or judgment of a
                                                                              court of competent jurisdiction, this Agreement shall be construed as if such portion had not been inserted herein (except
                                                                              when such construction would constitute a substantial deviation from the general intent and purpose of the parties as
                                                                              reflected in this Agreement) and shall not affect the validity or enforceability of the remaining terms and provisions
                                                                              hereof.

	 	 	 
	 	21.	The
    parties acknowledge and agree that all understandings, representations and agreements heretofore made or reached by them are
    merged into this Agreement which alone fully and completely expresses the Agreement between the parties. This Agreement may
    be amended or modified only by a writing signed by both the parties.

 

	Very truly yours,
	 	 
	 	SITRICK BRINCKO GROUP, LLC
	 	 	 
	 	By:	/s/ Michael
    Sitrick
	 	 	Michael
    Sitrick
	 	 	Chairman
    and Chief Executive Officer

 

    	 	5	 

     

    

 

April
23, 2015

 

Agreed
to and accepted this 23rd Day of April, 2015

 

QUANTUMSPHERE, INC.

 

	 	By:	/s/
    Kevin Maloney
	 	 	Kevin
    Maloney 
	 	 	Co-Founder
    and CEO

 

    	 	6	 

     

    

  

April
23, 2015

 

EXHIBIT
2:

 

Warrant

 

(see
attached)

 

    	 	7	 

     

    

 

THE
SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON EXEMPTIONS
FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS, INCLUDING, WITHOUT LIMITATION, THE EXEMPTION CONTAINED IN SECTION 4(2) OF THE
SECURITIES ACT. NONE OF THE SECURITIES MAY BE SOLD OR TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT HAS BECOME AND IS THEN EFFECTIVE
WITH RESPECT TO SUCH SECURITIES, (2) THE SECURITIES ARE TRANSFERRED PURSUANT TO RULE 144 PROMULGATED UNDER THE SECURITIES ACT
(OR ANY SUCCESSOR RULE) OR (3) THE COMPANY (AS HEREINAFTER DEFINED) HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO IT, TO THE EFFECT THAT THE PROPOSED SALE OR TRANSFER OF THE SECURITIES IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT
AND ALL OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS.

 

COMMON
STOCK PURCHASE WARRANT

 

For
the Purchase of 30,000 Shares

 of Common Stock, $0.001 par value of

 

QUANTUMSPHERE, INC.

 

Issue
Date: April 23, 2015

 

For
value received, Sitrick Brincko Group, LLC (the “Holder”), or its assigns, is entitled to, on or before the
date specified below on which this Common Stock Purchase Warrant (the “Warrant”) expires, but not thereafter,
to subscribe for, purchase and receive up to 30,000 number of fully paid and nonassessable shares of the common stock, no par
value (the “Common Stock”), of QuantumSphere, Inc., a Nevada corporation (the “Company”),
set forth above, at a price of $2.00 per share (the “Exercise Price”), upon presentation and surrender of this
Warrant and upon payment by bank check or wire transfer of the Exercise Price for such shares of Common Stock to the Company at
its principal office.

 

1.Exercise
of Warrant. This Warrant may be exercised in whole or in part, from time to time, as follows: 5,000 shares of Common
Stock commencing on the seven-month anniversary of the date hereof (the “Issue Date”), and an additional
5,000 shares of Common Stock on each monthly anniversary of the Issue Date thereafter through the twelve-month anniversary of
the Issue Date, at which time this Warrant may be exercised in whole or in part, from time to time, as to 30,000 shares of
Common Stock, and expiring on the fifth (5th) anniversary of the Issue Date, by presentation and surrender hereof to the
Company, with the Exercise Form annexed hereto duly executed and accompanied by payment by bank check or wire transfer of the
Exercise Price for the number of shares specified in such form, together with all federal and state taxes applicable upon
such exercise, if any. If this Warrant should be exercised in part only, the Company shall, upon surrender ‘of this
Warrant for cancellation, execute and deliver a new Warrant evidencing the right of the Holder to purchase the balance of the
shares purchasable hereunder with otherwise identical terms hereto. Upon receipt by the Company of this Warrant and the
Exercise Price at the office of the Company, in proper form for exercise, the Holder shall be deemed to be the holder of
record of the shares of Common Stock issuable upon such exercise of the close of business on the date on which this Warrant
shall have been so exercised, such shares to be free and clear of encumbrances (other than securities laws), validly issued,
fully-paid and nonassessable, notwithstanding that certificates representing such shares of Common Stock shall not then be
actually delivered to the Holder. If the subscription rights represented hereby shall not be exercised at or before 5:00
P.M., Pacific Time, on the expiration date specified above, this Warrant shall become void and without further force or
effect, and all rights represented hereby shall cease and expire.

 

    	 	 	 

     

    

  

2.Rights
of the Holder. Prior to exercise of this Warrant, the Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
in the Company, either at law or equity, and the rights of the Holder hereunder are limited to those expressed in this Warrant
and are not enforceable against the Company except to the extent set forth herein.

 

3.Adjustment
in Number of Shares. The number of and kind of securities purchasable upon exercise of this Warrant and the Exercise Price
shall be subject to adjustment from time to time as follows:

 

(A)Adjustment
for Reclassifications and Subdivisions. In case at any time, or from time to time, after the Issue Date the holders of the
Common Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant)
shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled
to receive, without payment therefore, other or additional stock or other securities or property (including cash) by way of stock-split,
spinoff, reclassification, combination of shares or similar corporate rearrangement, then and in each such case the Holder(s)
of this Warrant, upon the exercise hereof as provided in Section 1, shall be entitled to receive the amount of stock and other
securities and property which such Holder(s) would hold on the date of such exercise if on the Issue Date they had been the holder
of record of the number of shares of Common Stock of the Company called for on the face of this Warrant and had thereafter, during
the period from the Issue Date, .to and including the date of such exercise, retained such shares and/or all other or additional
stock and other securities and property receivable by them as aforesaid during such period, giving effect to all adjustments called
for during such period. Appropriate adjustments shall be made to the Exercise Price per share payable hereunder, provided that
the aggregate Exercise Price payable for the total number of shares purchasable under this Warrant (as adjusted) shall remain
the same.

 

(B)Adjustment
for Reorganization, Consolidation, Merger. In case of any reorganization of the Company (or any other corporation the stock
or other securities of which are at the time receivable on the exercise of this Warrant) after the Issue Date, or in case, after
such date, the Company (or any such other corporation) shall consolidate with or merge into another corporation or convey all
or substantially all of its assets or business(es) to another corporation, then and in each such case the Holder(s) of this Warrant,
upon the exercise hereof as provided in Section 1, at any time after the consummation of such reorganization, consolidation, merger
or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise
of this Warrant prior to such consummation, the stock or other securities or property to which such Holder(s) would be entitled
had the Holders exercised this Warrant immediately prior thereto, all subject to further adjustment as provided herein; in each
such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property receivable upon
the exercise of this Warrant after such consummation. Appropriate adjustments shall be made to the Exercise Price per share payable
hereunder, provided the aggregate Exercise Price payable for the total number of shares purchasable under this Warrant (as adjusted)
shall remain the same.

 

4.Officer’s
Certificate. Whenever the number of shares of Common Stock issuable upon exercise of this Warrant or the Exercise Price
shall be adjusted as required by the provisions hereof, the Company shall forthwith file in the custody of its Secretary at
its principal office, an officer’s certificate showing the adjusted number of shares of Common Stock or Exercise Price
determined as herein provided and setting forth in reasonable detail the facts requiring such adjustment. Each such
officer’s certificate shall be made available at all reasonable times for inspection by the Holder(s) and the Company.
shall, forthwith after each such adjustment, deliver a copy of such certificate to the Holder(s). Such certificate shall be
conclusive as to the correctness of such adjustment.

 

    	 	2	 

     

    

 

5.
Cashless Exercise. Inlieu of the payment methods set forth above, the Holder may elect to exchange all or some of this
Warrant for shares of Common Stock equal to the value of the amount of the Warrant being exchanged on the date of exchange. If
Holder elects to exchange this Warrant. as provided in this Section 5, Holder shall tender to the Company the Warrant for
the amount being exchanged, along with written notice of Holder’s election to exchange some or all of the Warrant, and he
Company shall issue to Holder the number of shares of the Common Stock computed using the following formula:

 

	 	X
    =	Y
    (A-B)
	 	 	     A

 

Where:
X = the number of shares of Common Stock to be issued to Holder.

 

	 	Y
    =	the
    number of shares of Common Stock purchasable under the amount of the Warrant being exchanged (as adjusted to the date of such
    calculation).
	 	 	 
	 	A
    = 	the
    fair market value of one share of the Common Stock. 
	 	 	 
	 	B
    =	Exercise
    Price (as adjusted to the date of such calculation).

 

For
purposes of the above calculation fair market value of one share of Common Stock shall be determined by the Company’s Board
of Dire:tors in good faith; provided, however, that if at the time of such exercise the Common Stock is quoted in the over-the-counter
market maintained by OT<?B Markets Group, Inc. (other than ore Pink) (the “OTC Market”) or listed
on a national securities exchange in the United States or a foreign country, including without limitation, the NASDAQ Stock Market
or NYSE MKT (an “Exchange”), then the fair market value of one share of Common Stock shall be the average
of the closing bid and asked prices of the Common Stock quoted on the OTC or the average closing price of the Common Stock on
an Exchange, whichever is applicable, as report:d by Bloomberg L.P. for the five (5) trading days prior to the Company’s
receipt of notification of exercis of the arrant by Holder. If the Common Stock is listed on an exchange in the United Stats and
m a foreign country, then the for the purpose of determining fair market value hereunder, the prices on the

exchange
in the United States shall govern.

 

6.Restrictions
on Transfer. Certificates for the shares of Common Stock to be issued upon exercise of this Warrant shall bear the following
legend:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS, AND HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON EXEMPTIONS
FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS, INCLUDING, WITHOUT LIMITATION, THE EXEMPTION CONTAINED IN SECTION 4(2) OF THE
SECURITIES ACT. NONE OF THE SECURITIES MAY BE SOLD OR TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT HAS BECOME AND IS THEN EFFECTIVE
WITH RESPECT TO SUCH SECURITIES, (2) THE SECURITIES ARE TRANSFERRED PURSUANT TO RULE 144 PROMULGATED UNDER THE SECURITIES ACT
(OR ANY SUCCESSOR RULE)

 

    	 	3	 

     

    

 

WARRANT
EXERCISE FORM

 

	TO:QUANTUMSPHERE, INC.	DATE: _______________

   

The
undersigned hereby elects irrevocably to exercise the within Warrant and to purchase _________
shares of the Common Stock of the Company called for thereby, and hereby makes payment of the Exercise Price pursuant
thereto.

 

The
undersigned hereby made payment according to the following method (Please check the applicable blank):

 

cash
(check or wire transfer)

 

cashless
exercise in accordance with Section 5 of the Warrant

 

Please
issue the shares of the Common Stock as to which this Warrant is exercised to:

  

 

 

 

 

 

 

and
if said number of Warrants shall not be all the Warrants evidenced by the Common Stock Purchase Warrant surrendered in
connection with this exercise, then the Company shall issue a new Warrant Certificate for the balance remaining of such
Warrants to __________________________ at the address stated above.

 

	 	By:	 
	 	Print
    Name:	 

 

    	 	4CONSULTING
AGREEMENT

 

This
CONSULTING AGREEMENT (this “Agreement’’) is made and entered into as of July 15, 2015, by and between DC Consulting
LLC (“Consultant”), a Florida limited liability company, with its principal place of business at 1045 Primera Blvd,
Suite 1033, Lake Mary, Florida 32746, and QuantumSphere, Inc.(“Client”), a Nevada corporation, with its principal
place of business at 2905 Tech Center Drive, Santa Ana, CA 92705.

 

WHEREAS,
Client desires to retain Consultant to provide services as described in the Agreement, and Consultant agrees to provide such services.

 

NOW,
THEREFORE, in consideration of the mutual understandings contained herein, the parties agree as follows:

 

	1.	Scope
    of Services. Consultant will provide management consulting services, business advisory services, shareholder information services,
    and public relations services. Consultant will provide strategy on marketing of Company’s business strategies and increase
    market awareness. Consultant will assist in scheduling meetings with institutional and retail investors, assist in increasing
    the general market awareness of Client, and assist Client with all aspects of Client’s communication platform, including
    financial, media, and trade industries.
	 	 
	2.	Term
    of the Agreement. This Agreement will commence on July 15, 2015, and will tenninate on July 14, 2016, at 5:00 PM EST subject
    to the terms set forth herein. Renewal and modifications to the Agreement can be negotiated following the completion of this
    Agreement.
	 	 
	3.	Compensation.
	 	 
	 	3.1.	Cash
    Compensation. Client will pay Consultant as follows: (i) $40,000 per month (Months 1-4) with the first payment due upon execution
    of this Agreement in the amount of $20,000, and the remaining $20,000 to be paid upon QSI securing at least $500,000 of financing
    following execution of this Agreement; the same $20,000 payment (with $20,000 deferred) shall apply for month 2 of this Agreement
    as well; (ii) $35,000 per month (Months 5-8); and (iii) $30,000 per month (Months 9-12). All payments are due on the first
    business day of each month. The total amount of payments for months 1-12 is $420,000.
	 	 	 
	 	3.2	Stock
    Compensation. Client will issue Consultant 150,000 shares of restricted common stock of QuantumSphere, Inc. upon execution
    of this Agreement, then 50,000 shares of restricted common stock on each of the 30, 60 and 90 day anniversaries of this Agreement,
    for a total of 300,000 restricted common shares. Thereafter, 25,000 shares of restricted common stock shall be issued per
    month (months 5-12), for a total of 200,000 restricted shares of common stock. Jn total, Consultant shall be issued 500,000
    restricted shares of common stock of Quantum.Sphere, Inc. for rendering services for a period of one (1) year.

 

    	 	 	 

     

    

 

	 	3.3	Consultant
    does not make any promise or guarantee any money or increased value to be earned by Client based on Consultant’s efforts
    and availability to increase awareness of Client’s company or brand. Such fee shall be earned by Consultant’s
    efforts and availability alone, such as Consultant being available to work on behalf of Client during normal business hours
    and to perform the services described in Paragraph 1. Consultant will work in an advisory capacity, but Consultant is not
    a licensed broker dealer and will not be paid compensation based on Consultant’s success in raising capital for Client.
	 	 	 
	 	3.4.	Consultant
    shall be compensated for any work performed under this Agreement. This earned money is nonrefundable and will be paid out
    as described in Paragraph 3.1, and 3.2.
	 	 	 
	 	3.5.	Consultant
    shall receive the remaining compensation in Paragraph 3.1 and 3.2 within ten days following any change of control arrangements
    by the Client.
	 	 	 
	4.	Independent
    Contractor. The Consultant shall perform the consulting services described in Paragraph las an independent contractor
    without the power to enter into any undertaking, commit to any expenses, incur any liability or bind or represent the Client
    for any purpose whatsoever, and nothing contained in this Agreement shall be interpreted to create an employment relationship,
    agency relationship, partnership or joint venture between the Client and the Consultant.
	 	 
	5.	Termination.
    This Agreement may be tenninated by either Party upon thirty (30) days written notice to the other Party in accordance
    with Paragraph 7.11, but no sooner than ninety (90) days after the execution of the Agreement. Client shall continue to pay
    Consultant during the thirty (30) day termination period pursuant to Paragraph 3.1 and 3.2. Whether or not the Agreement is
    tenninated, any money paid or stock issued to Consultant by Client is non-refundable.
	 	 
	6.	Client
    Responsibilities. Client warrants that any and all information provided by Client to Consultant in connection with the
    execution of this Agreement and the services to be provided, is true, accurate and complete in all respects. Client will provide
    Consultant with complete access to Client’s business information and financial records necessary to execute this Agreement.
    Client understands that Consultant may and will rely upon the veracity of the aforementioned information without conducting
    independent investigation or review. Client agrees to indemnify and hold Consultant hannless from and against any loss, costs,
    damages, claims, expenses, attorney’s fees, and liabilities resulting from, or in connection with (i) the performance
    or non-performance of Client’s obligations that is caused by an act, omission, default, or negligence of Client, or
    (ii) the failure of Client to comply with any of the tenns and conditions set forth herein or the failure to conform to statutes,
    ordinances, or other regulations or requirements of any government authority in connection with the performance of the obligations
    in this Agreement.

 

    	 	 	 

     

    

 

7.
General Provisions.

 

	 	7.1.	This
    Agreement is governed by the laws of the State of Florida Client consents to venue in Seminole County, Florida and in the
    United States District Cowt for the Middle District of Florida. Client consents to service of process under Florida law, inany
    action commenced to enforce this agreement.
	 	 	 
	 	7.2.	This
    Agreement constitutes the final, exclusive and complete statement of the parties agreement respecting the subject matter addressed
    herein. This Agreement may not subsequently be amended or modified except by a writing signed by both parties hereto. This
    Agreement supersedes all prior agreements and understandings with respect to such subject matter as specified within this
    Agreement. Client hereby confirms that any infonnation disclosed to Client by Consultant, or any discussions held between
    the parties, prior to the date of this Agreement will be subject to the terms of this Agreement.
	 	 	 
	 	7.3.	A
    late fee of 18% of the total fees earned to date as specified in Paragraph 3.1, 1 Yz% per month as specified in Paragraph
    3.1, or the highest fee permitted by law will apply in the event that Client fails to compensate Consultant pursuant to the
    terms of Paragraph 3.1. For the avoidance of doubt, the second payment of $20,000 for months one and two of this Agreement
    from the proceeds of not less than $500,000 of new funding obtained by Client, shall not be deemed to invoke the application
    of this Section 7.3.
	 	 	 
	 	7.4.	In
    the event any suit or other action is commenced to construe or enforce any provision of this Agreement, the losing party will
    pay to the prevailing party a reasonable sum for attorneys’ fees and costs, in addition to all other amounts that prevailing
    party is entitled to receive from the losing party.
	 	 	 
	 	7.5.	Any
    provision of this Agreement found to be in violation of the Securities Exchange Commission (“SEC”) or any law
    under the SEC shall be void ab initio. Any void ab initio of provisions of this Agreement are severable and
    the remaining provisions, including those related to compensation, will remain effective.
	 	 	 
	 	7.6.	No
    amendment or modification of this agreement will be effective unless made inwriting and signed by both parties to this agreement.
	 	 	 
	 	7.7.	No
    term or condition of this agreement shall be deemed to have been waived, nor shall either party be estoppoo from enforcing
    any provisions of this agreement, except by a statement in writing signed by the party against whom enforcement of the waiver
    or estoppel is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall incorporate
    only as to the specific tenn or condition waived, and shall not constitute a waiver of such term or condition for the future
    or as to any act other than that specifically waived. The failme of either party to enforce at any time any of the provisions
    of this Agreement shall not be construed as a waiver of such provisions or of the right of such party thereafter to enforce
    any such provisions.

 

    	 	 	 

     

    

 

	 	7.8.	The
    provisions of this contract are severable. Ifany provision of this contract is held invalid, the remaining provisions continue
    in effect.
	 	 	 
	 	7.9.	Reserved.
	 	 	 
	 	7.10.	Both
    parties have had an opportunity to review this Agreement indepth and have had the opportunity to consult with competent legal
    counsel. Each party fully understands the terms of this Agreement and freely and voluntarily signs the Agreement. This Agreement
    is the result of negotiations between the parties and should not be construed against any party because that party or that
    party’s attorney drafted this Agreement.
	 	 	 
	 	7.11.	Any
    notice, demand, or request required or permitted to be given hereunder shall be inwriting and shall be deemed effective
    two days after having been deposited inthe United States mail, postage prepaid, registered or certified, and addressed to
    the addressee at its main office, as set forth above.Any party may change its address for purposes of this Agreement by written
    notice given in accordance herewith.

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date set forth above.

 

DC
CONSULTING, LLC 

 

	By:
    	/s/
    Dan Conway	 
	Name:	Dan
Conway	 
	Title:	President	 

 

QUANTUMSPHERE,
INC.

 

	By:	/s/
    Kevin D. Maloney	 
	 	Kevin
    D. Maloney	 
	 	CEO
    & President	 

 

    	 	 	 

     

    

 

ADDENDUM
NO. 1

 

This
Addendum No. 1 (the “Addendum”) to that certain Consulting Agreement (the “Agreement”), executed on July
15, 2015, by and between DC Consulting LLC (“Consultant”), a Florida limited liability company, with its principal
place of business at 1045 Primera Blvd, Suite 1033, Lake Mary, FL 32746, on the one hand, and QuantumSphere, Inc. (“QSI”),
a Nevada corporation, with its principal place of business at 2905 Tech Center Drive, Santa Ana, CA 92705, on the other hand,
is made and entered into as of November 28, 2015. Consultant and QSI are collectively referred to herein as the “Parties”
and independently as a “Party”.

 

1.
Defined Terms. All capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the
Agreement.

 

2.
Reseller. Consultant shall serve as a non-exclusive reseller of QSI nanocatalysts in India for end-use applications in
the ammonia industry. It is expressly understood by the Parties that QSI presently has a contractual relationship with Casale,
S.A. (“Casale”) as evidenced by a Joint Development Agreement (“JDA”) executed in May 2015 that provides
(i) exclusivity to Casale with respect to the use of QSI nanocatalysts in the ammonia, methanol and gas-to-olefins sectors, and
(ii) prohibits the use of QSI nanocatalysts in conjunction with ammonia converter technology other than Casale. Notwithstanding
the foregoing, QSI agreed to work with Consultant with respect to written introductions made by Consultant to ammonia plant owner/operators
in India and accepted by QSI (“Deal Registrations”), including any Deal Registration made by Consultant based on referrals
by its affiliates as well as ammonia plant owner/operators (collectively, “QSI Nanocatalyst Sales Prospects”).

 

3.
Compensation.

 

a. Cash
Retainer. The amount of the cash retainer is to be determined and mutually agreed upon.

 

b. Common
Stock Purchase Warrants. The amount of the warrants to purchase common stock (“Warrants”) of QSI is to be determined
and mutually agreed upon. The Warrants shall be exercisable for a period of five (5) years at an exercise price of $2.00 per share.

 

c. Reseller
Commission. The sale of QSI nanocatalysts to QSI Nanocatalyst Prospects, each of which shall be evidenced by a Deal Registration,
shall be compensated as follows:

 

	 	i.	Existing Casale Contractual Relationships. In the case of Deal Registrations where there is (i) an existing contractual relationship by and between Casale and the ammonia owner/operator located in India and identified in a Deal Registration, or (ii) a submission that has, or will be, made by Casale to a request for proposal (“RFP”) by an ammonia owner/operator located in India and identified in a Deal Registration, the following shall apply: 
	 	 	 
	 	 	(a)	Consultant shall be entitled to receive six percent (6.0%) of the gross revenue realized by QSI from QSI Nanocatalyst Sales Prospects relating to the sales of QSI nanocatalysts used in conjunction with Casale ammonia converter technology. Payment shall be made to Consultant net 30 from date of receipt of revenues by QSI.

 

    	 	 	 

     

    

 

	 	ii.	Non-Casale Contractual Relationships. In the case of Deal Registrations where there is not (i) an existing contractual relationship by and between Casale and the ammonia owner/operator in India identified in the Deal Registration, or (ii) a submission that has, or will be, made by Casale to a request for proposal (“RFP”) by an ammonia owner/operator located in India and identified in a Deal Registration, the following shall apply: 
	 	 	 
	 	 	(a)	Consultant shall be entitled to receive twelve percent (12.0%) of the gross revenue received by QSI from QSI Nanocatalyst Sales Prospects relating to the sales of QSI nanocatalysts used in conjunction with Casale ammonia converter technology. Payment shall be made to Consultant net 30 from date of receipt of revenues by QSI.
	 	 	 	 
	 	 	(b)	The Parties understand and agree that QSI does not have a referral agreement with Casale or any ammonia base catalyst provider (“Ammonia Catalyst Provider”) for the placement of the products, technology and services of Casale or an Ammonia Catalyst Provider; provided, however, the Parties shall negotiate in good faith a referral fee, payable by QSI to the Consultant relating to the the placement of the products, technology and services of Casale, or an Ammonia Catalyst Provider that QSI may have a contractual relationship with in the future, as the case may be, expressly subject to agreement by Casale and the Ammonia Catalyst Provider of payment of a referral fee to QSI. Any referral fee paid by QSI to Consultant in relation to this Section 3.c.ii.(b) shall be identical to the amount, if any, paid by Casale and the Ammonia Catalyst Provider to QSI in the form of a referral fee for the placement of the foregoing parties respective products, technology and services. 

 

	4.	Term; Change
of Control. The term of this Addendum shall be for a period of three (3) years from the Effective Date (“Term”),
expressly subject to the following change of control (“Change of Control”) provision:

 

	 	a.	Change of Control. If, prior to conclusion of the Term, a change of control involving QSI (“Change of Control”) is consummated, defined as a merger, sale of substantially all of the stock, assets or business, or other reorganization involving QSI in which QSI is not the surviving entity, this Addendum shall be terminated as of the effective date of the Change of Control.
	 	 	 
	 	 	(i)	Effect of Change of Control. Consultant shall be entitled to receive a commission on all written, fully executed, contractual relationships relating to the sale of QSI nanocatalysts to a QSI Nanocatalysts Sales Prospect as of the effective date of a Change of Control subject to the following: (i) to the extent payment has not been received by QSI as of the effective date of a Change of Control, QSI shall establish an independent third (3rd) party escrow account (“Escrow Account”) for the benefit of Consultant for the deposit of the applicable commissions, payable net 30 from the deposit of the applicable commission(s) into the Escrow Account. 

 

    	 	 	 

     

    

 

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

 

DC
CONSULTING, LLC 

 

	By:
    	/s/
    Dan Conway	 
	Name:	Dan
Conway	 
	Title:	President	 

 

QUANTUMSPHERE,
INC.

 

	By:	/s/
    Kevin D. Maloney	 
	 	Kevin
    D. Maloney	 
	 	CEO
    & President

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