Document:

Exhibit
10.7

 

SECOND
AMENDMENT TO LEASE AGREEMENT

 

This
Second Amendment shall be a part of the Lease Agreement with an effective date of August 1, 2011, between DART CONTAINER OF MICHIGAN
LLC, a Michigan limited liability company (“Landlord”), and XG SCIENCES, INC., a Michigan corporation (“Tenant”),
covering the premises known as Lot 29, Oakwood Executive Park, more commonly known as 3101 Grand Oak Drive, Lansing, Michigan
48911. The Lease Agreement has a Commencement Date of September 1, 2011, and has a Termination Date of August 31, 2021.

 

Landlord
and Tenant agree that, from January 1, 2013, through December 31, 2017 (the “Expansion Term”), the Premises as defined
in the Lease Agreement shall be deemed to include Lot 27, Suite B, in the Oakwood Executive Park, more commonly known as 4055
English Oak Drive, Suite B, Lansing, Michigan 48911 (the “Expansion Space”), which is deemed to be comprised of 14,314
square feet and is shown on Exhibit A, attached hereto and made a part hereof.

 

Due
to this expansion of the Premises and by mutual agreement, Landlord and Tenant agree that during the Expansion Term the Base Rent
as defined in the Lease Agreement shall be increased by the following amounts:

 

$6,667.00
per month from January 1, 2013 through December 31, 2013.

 

$6,871.00
per month from January 1,2014 through December 31, 2014.

 

$7,074.00
per month from January 1, 2015 through December 31, 2015.

 

$7,288.00
per month from January 1, 2016 through December 31, 2016.

 

$7,503.00
per month from January 1, 2017 through December 31, 2017.

 

The
Common Cost Estimates for the Expansion Space for the calendar year of 2013 are deemed to be $2,147.00 per month. The Common Cost
Estimates shall be adjusted each subsequent year during the Expansion Term as described in Sec. 4 of the Lease Agreement.

 

During
the Expansion Term, for the Expansion Space, Tenant’s employees and visitors shall be entitled to park in common with other
tenants in any valid parking space within the Park. There will be no assigned parking unless Landlord determines that allocation
of parking spaces among tenants is appropriate, except that Tenant shall be allowed up to two (2) dedicated visitor parking spaces
located in front of the lab entry door of the Expansion Space. For these visitor parking spaces, Tenant, at Tenant’s expense,
shall provide and install “VISITOR PARKING” signs of a kind similar to and to be installed in a manner similar to
the “VISITOR PARKING” sign located outside of Lot 27, Suite A.

 

Provided
that Tenant shall not be in default of any provision of the Lease, Tenant, beginning upon January 1, 2016, shall have the right
to terminate its lease of the Expansion Space upon six (6) months’ prior written notice to Landlord.

 

Within
10 calendar days after its signing of this Second Amendment, Tenant shall provide Landlord with an amended version of the Letter
of Credit described in Sec. 5 of the Lease Agreement which, for the duration of the Expansion Term, extends the Letter of Credit
to cover both the original Premises and the Expansion Space.

 

     

     

    

 

Tenant
accepts the Expansion Space and all equipment therein in “as is” condition. For the purposes of the preceding sentence,
the word “equipment” includes all chemical fume hoods, chemical storage facilities, chemical and air handling equipment,
vent and fume hood duct work, fans, controllers, sensors, and wiring, chemical benches, carts, racks, countertops, shelves, and
casework. The care, maintenance, and replacement of all of this equipment is the responsibility of Tenant, although the equipment
shall at all times remain the sole property of Landlord and shall remain in the Expansion Space and, upon the expiration or earlier
termination of the Expansion Term, shall be returned to Landlord in the same condition as received, normal wear and tear excepted.

 

Tenant
shall be solely responsible for all improvements to the Expansion Space, except that Landlord at its sole expense shall be responsible
for the removal of the cold storage room and the removal of the benches, all as noted on Exhibit A.

 

Utilities
for the Expansion Space are metered in common with the neighboring Suite A. Landlord will maintain all utility accounts in Landlord’s
name and will pay the providers directly. Tenant shall be responsible for its portion of the utilities as billed by Landlord.
Beginning upon January 1, 2013, Landlord will invoice Tenant monthly at the annual rate of $1.50 per square foot for natural gas,
electric, water and sewer (14,314 square feet x $1.50 = $21,471 / 12 = $1,789.25 per month), with each such invoice to be paid
within ten (10) days of Tenant’s receipt. Following the ninth full month of Tenant’s occupancy of the Expansion Space
(which comprises 47% of the combined area of Suites A and B) and annually thereafter, all utility bills will be reviewed in order
to estimate actual usage and adjust the allocation as necessary, including, retroactively, those months already paid by Tenant.
If an adjustment is appropriate, then Landlord shall give Tenant notice stating whether the aggregate amount of the installments
of Tenant’s utility payments previously paid are more or less than the aggregate amount of the installments due, and (i)
if there is a deficiency, then within ten (10) days after the Tenant receives notification of the deficiency, Tenant shall pay
the amount of such deficiency, (ii) if there was an overpayment, then Landlord shall credit Tenant in the amount thereof toward
the subsequent installments of utilities, and (iii) on the first day of the next month and monthly thereafter, Tenant shall be
invoiced at the revised monthly utility rate, with the revised rate to be based upon a reasonable allocation of estimated usage
to be negotiated and agreed to by Landlord and Tenant. The new allocation will be negotiated and agreed to by Landlord and Tenant.
In no event will Tenant’s total utility costs exceed $1.75 per square foot, except for and to the extent of any unit price
increase of any of the utilities.

 

All
other terms and conditions of the original Lease Agreement shall remain in effect as first written and previously amended.

 

The
effective date of this Second Amendment shall be November 16, 2012, regardless of the date written below.

 

Each
party executing this Amendment warrants that it has the requisite power and authority to do so.

 

     

     

    

 

	 	 	XG SCIENCES, INC.,
		 	a Michigan corporation (Tenant)
	WITNESS	 	 
	 	 	 
	/s/ Corinne
    Lyon	 	/s/ Michael
R. Knox
	[signature]	 	BY: Michael R. Knox
	 	 	ITS: Chief Executive Officer
	CORINNE
    LYON	 	 
	[print name]	 	DATE: 11-27-2012
	 	 	 
	 	 	DART CONTAINER OF MICHIGAN LLC,
	WITNESS	 	a Michigan corporation (Landlord)
	 	 	 
	/s/ Diana
    C. Vanderwall	 	/s/ Kevin
M. Fox
	[signature]	 	BY: Kevin M. Fox
	 	 	ITS: Authorized Signer
	Diana
    C. Vanderwall	 	 
	[print name]	 	DATE: 12-5-2012Exhibit 10.8

 

XG SCIENCES,
INC.

Line
of Credit Note

 

	$300,000.00	March 18, 2013
	 	Lansing, Michigan

 

1.         LINE
OF CREDIT. XG Sciences, Inc., a Michigan corporation (“Borrower”),
promises to pay to the order of Michael R. Knox (together with his successors and assigns, the “Lender”)
the sum of Three Hundred Thousand and 00/100 Dollars ($300,000.00), or so much of that amount that is disbursed to or for the
benefit of the Borrower (the “Borrowing”) under
this Line of Credit Note (this “Note”), plus
interest as provided in this Note, less the amounts that have been repaid in accordance with this Note. The amount of the Principal
that has been disbursed to or for the benefit of the Borrower under this Note will be set forth on a supplemental addendum to
this Note, such that the Borrowing is not necessarily the face amount of this Note.

  

Pursuant
to this Note, Lender extends to Borrower a line of credit facility pursuant to which Lender will make loans under this Note to
Borrower, on a revolving basis and upon Borrower's request from time to time (each, a "Revolving Loan"),
provided that: (a) the aggregate principal amount borrowed under this Note at any time may not exceed Three Hundred Thousand and
00/100 Dollars ($300,000.00), and (b) no Event of Default exists or would be caused by the Revolving Loan. Borrower may
borrow, prepay, in whole or in part, and re-borrow pursuant to the terms of this Note.

 

Borrower
may request a Revolving Loan by written notice to Lender, via facsimile transmission, electronic mail or otherwise, in such reasonable
form as Lender may require. Lender will make each Revolving Loan by disbursing the amount requested and approved to Borrower as
soon as practicable in such manner as requested by Borrower.

 

2.           INTEREST.
The principal sum outstanding under this Note from time to time will bear interest at the rate of eight percent (8%) per annum
(the "Interest Rate”). Interest will be calculated based on a 360-day year and charged on the principal sum
outstanding from time to time for the actual number of days elapsed. Notwithstanding any provision to the contrary in this Note,
in no event will the Interest Rate charged on the Borrowing exceed the maximum rate of interest permitted under applicable state
and/or federal usury law. Any payment of interest that would be deemed unlawful under applicable law for any reason will be deemed
received on account of, and will automatically be applied to reduce, the principal sum outstanding and any other sums (other than
interest) due and payable to Lender under this Note, and the provisions of this Note will be deemed amended to provide for the
highest rate of interest permitted under applicable law.

 

		3.	REPAYMENT.

 

(a)           Maturity
of the Note. The entire outstanding principal balance of the
Borrowing, together with all accrued and unpaid interest and any other charges, advances and fees if any, outstanding under
this Note, is due and payable in full to the order of Lender upon the demand of Lender after the earlier of the Maturity Date
or the acceleration of this Note. This Note may be prepaid without penalty. The “Maturity Date” of
this Note is March 18, 2018.

 

     

     

    

  

(b)           Principal
Payment Schedule. Upon the demand of the Lender, the Borrower shall
deliver payments on the outstanding principal amount of this Note to the order of the Lender upon the occurrence of each of the
events listed and in the amounts set forth in the following schedule (the “Payment Schedule”),
provided that, in each case, the Borrower’s obligation
to deliver such payment shall only exist to the extent that the Lender has delivered written notice of such demand to the Borrower
(each such notice, a “Demand Notice”):

 

(i)           $100,000
within sixty (60) calendar days after receipt of a Demand Notice following the date upon which Aspen Advanced Opportunity Fund,
L.P., a Delaware limited partnership (“Aspen”),
and/or its Affiliates (as defined in the Purchase Agreement described below) have provided, as confirmed via written notice from
the Borrower, at least $2,000,000 of aggregate funding to the Borrower pursuant to that certain Purchase Agreement dated March
18, 2013 by and between the Borrower and Aspen (the “Purchase Agreement”);
and

 

(ii)           $100,000
within sixty (60) calendar days after receipt of a Demand Notice following the date upon which Aspen and/or its Affiliates (as
defined in the Purchase Agreement) have provided, as confirmed via written notice from the Borrower, at least $3,000,000 of aggregate
funding to the Borrower pursuant to the Purchase Agreement; and

 

(iii)           $100,000
within sixty (60) calendar days after receipt of a Demand Notice following the date upon which Aspen and/or its Affiliates (as
defined in the Purchase Agreement) have provided, as confirmed via written notice from the Borrower, at least $4,000,000 of aggregate
funding to the Borrower pursuant to the Purchase Agreement.

 

All
other payments under this Note not set forth in the Payment Schedule will be applied in the following order: accrued interest,
fees, charges and advanced costs, and principal.

 

4.           SECURITY.
Borrower grants to Lender a security interest to secure the repayment of the Borrowing, including all Revolving Loans and other
future advances, in all of Borrower’s real and personal property, whether now owned or later acquired, including without
limitation all inventory, equipment, fixtures, accounts, instruments, documents, chattel paper, investment property, letters of
credit, deposit accounts, commercial tort claims, general intangibles, and accessions, and all proceeds of the foregoing (the
“Collateral”).

 

5.           USE
OF PROCEEDS. Borrower certifies that the proceeds of each Revolving
Loan are to be used for its general business purposes.

 

6.           COVENANTS.
Borrower will, until the Borrowing is paid in full, comply with the following covenants:

 

    	 	2	 

     

    

  

(a)           Access
to Business Information. Borrower will furnish to Lender information
regarding its business affairs and financial condition within a reasonable time after Lender’s request. Borrower will maintain
adequate, accurate, and complete books and records in accordance with past practices and give representatives of Lender access
at all reasonable times.

 

(b)           Collateral.
Borrower will give Lender reasonable access to the Collateral for the purpose of performing examinations and to verify its condition
or existence, and will not dispose of Collateral other than in the ordinary course of business without Lender’s consent.

 

(c)           Financial
Statements. Borrower will maintain a standard and modern system for
accounting and will furnish to Lender copies of its financial statements within a reasonable period of time following their completion.

 

(d)           Payment
of Taxes and Claims. Borrower will pay all taxes, assessments and
other governmental charges imposed upon its property or assets or in respect of its business before any penalty or interest accrues,
and all claims for sums that have become due and payable, provided that (unless any material item of property would be lost, forfeited
or materially damaged as a result) no charge or claim need be paid if the amount, applicability or validity of the claim is contested
in good faith. Upon request of Lender, Borrower will provide copies of all federal, state, and local income tax returns and such
other information as Lender may reasonably request.

 

(e)           Compliance
with Laws. Borrower will comply with all laws, regulations and orders
applicable to Borrower or its assets, and will immediately notify Lender of any violation of any law, regulation or order.

 

(f)           Notices
of Certain Events. The Borrower will promptly give notice to the

Lender of:

 

(i)           Any
Event of Default under this Note;

 

(ii)           Any
(a) default or event of default under any contractual obligation of the Borrower that would have a material adverse effect
on the Borrower, or (b) litigation, investigation, or proceeding which may be threatened or exist at any time involving the Borrower,
which, if adversely determined would have a material adverse effect on the business, operations, affairs or condition (financial
or otherwise) of the Borrower, or would impair the ability of the Borrower to perform its obligations under this Note; or

 

(iii)         A
material adverse change in the business, operations, affairs or condition (financial or otherwise) of the Borrower.

 

(g)           Performance
of Contracts. Borrower will perform and comply in all material respects
with all material provisions of all material contracts to which Borrower is a party.

 

    	 	3	 

     

    

 

(h)          Costs.
Borrower will reimburse Lender for any and all fees, costs and expenses including, without limitation, reasonable attorneys’
fees, court costs, litigation and other expenses, incurred or paid by Lender in connection with the enforcement of this Note.

 

(i)           Further
Assurances. Borrower will execute and deliver, or cause to be executed
and delivered, all documents, and take or cause to be taken all actions, that are reasonably necessary from time to time to give
full effect to Lender’s rights under this Note.

 

(j)
          Other Amounts Deemed Loans.
If Borrower fails to pay any tax, assessment, governmental charge or levy, or to comply with any other covenant in this Note,
Lender may pay, satisfy, discharge or bond the same for the account of Borrower, and to the extent permitted by law and at the
option of Lender, all monies so paid by Lender on behalf of Borrower will be deemed additional indebtedness owed by Borrower to
Lender under this Note.

 

(k)          Existence.
Borrower will maintain its good standing existence as a Michigan corporation.

 

(l)           Debt
Instrument. Borrower will not, without the written consent of Lender,
create, or authorize the creation of, or issue any debt instrument having rights, preferences or privileges senior to this Note.

 

7.           EVENTS
OF DEFAULT. Upon the occurrence of any of the following events (each,
an “Event of Default”), Lender may without
any demand or notice whatsoever, cease making advances and declare this Note to be fully due and payable, together with accrued
interest and all fees and charges applicable thereto:

 

(a)          Any
failure to make any payment when due of principal or accrued interest on this Note;

 

(b)          Borrower’s
material breach of any covenant set forth in this Note;

 

(c)          The
dissolution of Borrower; or

 

(d)          A
commencement by Borrower of a voluntary case under any applicable bankruptcy, insolvency or other similar law; or the entry of
a decree or order for relief in respect of the Borrower in a case under any such law or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or other similar official) of Borrower, or for any substantial part of the property of Borrower,
or ordering the wind-up or liquidation of the affairs of Borrower; or the filing and pendency for 30 days without dismissal of
a petition initiating an involuntary case under any such bankruptcy, insolvency or similar law; or the making by Borrower of any
general assignment for the benefit of creditors; or the failure of the Borrower to pay its debts as such debts become due; or
the material taking of action by the Borrower in furtherance of any of the foregoing.

 

    	 	4	 

     

    

  

8.           REMEDIES.
After the occurrence of an Event of Default, Lender may, at its option, cease making disbursements and declare this Note to be
fully due and payable, together with accrued interest and all fees and charges, and may exercise all other remedies available
under applicable law. Borrower will pay all costs of collection incurred by Lender, including his reasonable attorney’s
fees, whether or not payment is obtained before entry of judgment. Lender’s rights and remedies are cumulative. No delay
on the part of Lender in the exercise of any such right or remedy shall operate as a waiver. No single or partial exercise by
Lender of any right or remedy shall preclude any other further exercise of it or the exercise of any other right or remedy.

 

9.           ENTIRE
AGREEMENT. Borrower agrees that there are no conditions or understandings
which are not expressed in this Note.

 

10.         SEVERABILITY.
The declaration of invalidity of any provision of this Note will not affect any part of the remaining provisions.

 

11.         ASSIGNMENT.
No party will assign any of its rights, remedies or obligations described in this Note without the prior written consent of the
other party. This Note is NONNEGOTIABLE.

 

12.         MODIFICATION:
WAIVER OF LENDER. The modification or waiver of any of Borrower’s
obligations or Lender’s rights under this Note must be contained in a writing signed by Lender. A waiver on one occasion
will not constitute a waiver on another occasion.

 

13.         WAIVER
OF BORROWER. Demand, presentment, protest and notice of dishonor,
notice of protest and notice of default are waived by Borrower.

 

14.         GOVERNING
LAW: CONSENT TO JURISDICTION. This Note is delivered in, is intended
to be performed in, and will be construed and enforceable in accordance with and governed by the internal laws of the State of
Michigan, without regard to principles of conflicts of law.

 

	 	BORROWER:
	 	 
	 	XG SCIENCES, INC., a Michigan corporation
	 	 	 
	 	By:	/s/ illegible
	 	 	 
	 	Its:	CEO

 

    	 	5

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