Document:

Exhibit 10.6

 

SEPARATION AGREEMENT

 

This Separation Agreement
(“Agreement”) is entered as of August 26, 2020, between Philip L. Rose, Ph.D. (hereinafter referred to as “Executive”)
and XG Sciences, Inc., a Michigan corporation, (hereinafter referred to as the “Company”). Executive and Company
collectively are referred to as the “Parties,” and individually are referred to as a “Party.”

 

RECITALS

 

WHEREAS, Executive
was employed by Company pursuant to the terms of an Employment Agreement dated December 16, 2013 (the “Employment Agreement”);
and

 

WHEREAS, Executive
has certain post-employment obligations set forth in the Confidentiality Agreement referenced in Section 6 of the Employment Agreement;
and

 

WHEREAS, Effective
August 26, 2020 (the “Resignation Date”), Executive has resigned without cause (as term is defined in the Employment
Agreement) pursuant to Section 5 (c) of the Employment Agreement and resigned as a member of the Company’s Board of Directors;
and

 

WHEREAS, while
Executive is not entitled to certain post-resignation severance payments, Company is providing them to Executive provided that
he executes and does not revoke this Agreement, which includes a full and general release of all liability; and

 

NOW, THEREFORE,
in consideration of the promises, the performance of the covenants and agreements hereinafter contained, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.           Adoption
of Recitals. The Parties hereto adopt the above recitals as being true and correct, and they are incorporated herein as
material parts of this Agreement.

 

2.           Severance
Benefits.

 

a.       Provided
that Executive signs and returns this Agreement to the Company without revoking it, and complies with the material terms of this
Agreement, the Company will provide the following Severance Benefits for four (4) months from the Resignation Date: i) continuation
of Executive’s current base salary at the biweekly rate of $8,923 at such times as the normally recurring payroll payments,
and ii) 100% of the COBRA premiums for Executive’s and Executive’s family health insurance benefits as were in effect
on the Resignation Date. Executive acknowledges that Executive has twenty-one (21) days after receipt of this Agreement
to consider and accept this Agreement. Accordingly, Executive must sign and return this Agreement by 5:00 PM on September 16, 2020.
Executive further acknowledges that after Executive has signed the Agreement, Executive may revoke the Agreement within seven
(7) days of signing it.

 

b.       Section 409A
Compliance. This Agreement is intended to comply, to the extent applicable, with the provisions of Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”) and shall, to the extent practicable, be construed in accordance
with such section. For purposes of this Agreement, each amount to be paid or benefit to be provided will be construed as a separate
identified payment for purposes of Section 409A, and any payments that are due within the “short term deferral period”
as defined in Section 409A will not be treated as deferred compensation unless applicable law requires otherwise. The Company makes
no representations or warranties that the payments provided under the Agreement or any other agreement comply with, or are exempt
from, Section 409A, and in no event shall the Company be liable for any
portion of any taxes, penalties, interest, or other expenses that may be incurred by Executive on account of Section 409A.

 

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3.          Release.
In consideration of the Severance Benefits, Executive hereby fully, forever, irrevocably and unconditionally releases, remises
and discharges XG Sciences, Inc., and its related affiliates, subsidiaries, parents, predecessors, and successors, and all of its
respective past and present officers, directors, stockholders, partners, members, Executives, agents, representatives, plan administrators,
attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”)
from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts,
reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses
(including attorneys’ fees and costs), of every kind and nature that Executive ever had or now has against any or all of
the Released Parties, including, but not limited to, any and all claims arising out of or relating to Executive’s employment
with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964;
the Americans With Disabilities Act of 1990; the Age Discrimination in Employment Act; the Genetic Information Nondiscrimination
Act of 2008; the Family and Medical Leave Act; the Worker Adjustment and Retraining Notification Act; Section 806 of the Corporate
and Criminal Fraud Accountability Act of 2002; the Rehabilitation Act of 1973; Executive Order 11246; Executive Order 11141; the
Fair Credit Reporting Act; Sections 1981 and 1983 of the Civil Rights Act of 1866; Sections 1981 through 1988 of Title 42 of the
United States Code, as amended; the Immigration Reform and Control Act; the Equal Pay Act; any local, state, federal or foreign
whistleblower statute, regulation, ordinance or law, including the Michigan Whistleblowers Protection Act and whistleblower/retaliation
claims under the workers’ compensation law; the Fair Labor Standards Act; the Consolidated Omnibus Reconciliation Act; the
Occupational Safety and Health Act; the Fair Credit Reporting Act; the Older Workers’ Benefits Protection Act; the Executive
Retirement Income Security Act of 1974; the Michigan Elliott-Larsen Civil Rights Act (ELCRA); the Michigan Persons with Disabilities
Civil Rights Act; the Bullard-Plawecki Employee Right to Know Act; the Michigan Workforce Opportunity Wage Act; the Michigan Occupational
Safety and Health Act (MIOSHA); the Michigan Social Security Number Privacy Act; the Michigan Internet Privacy Protection Act;
any foreign, federal, state and/or local law, statute, regulation or ordinance prohibiting discrimination, retaliation and/or harassment
or governing wage or commission payment claims; all common law claims including, but not limited to, actions in defamation, intentional
infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract; all claims to any non-vested
ownership interest in the Company, contractual or otherwise, and any claim or damage arising out of Executive’s employment
with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or
local statute or ordinance not expressly referenced above. Executive understands that, by releasing all of Executive’s legally
waivable claims, known or unknown, against the Released Parties, Executive is releasing all of Executive’s rights to bring
any claims against any of them based on any actions, decisions or events occurring through the date Executive signs this Agreement
including the terms and conditions of Executive’s employment and the termination/resignation of Executive’s employment.

 

As a part of this Agreement,
Executive expressly agrees to the release of any rights or claims arising out of the Age Discrimination in Employment Act
(“ADEA,” 29 U.S.C. § 621, et seq.), as amended, including the Older Workers Benefit Protection Act, and in
connection with such waiver: (a) Executive is hereby advised to consult with an attorney prior to signing this Agreement; (b)
Executive shall have a period of twenty-one (21) days from the date of receipt of this Agreement in which to consider the
terms of this Agreement; and (c) Executive may revoke this Agreement at any time during the first seven (7) days following
Executive’s execution of the Agreement, and the waiver and release shall not be effective or enforceable until the
seven (7) day period has expired. As between Executive and the Released Parties,
this Agreement does not constitute a waiver of any claim under the ADEA that may arise after the date of the execution of this
Agreement.

 

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Executive understands that, by releasing
all of Executive’s legally waiveable claims, known or unknown, against the Released Parties, Executive is releasing all of
Executive’s rights to bring any claims against any of them based on any actions, decisions or events occurring through the
date Executive signs this Agreement including the terms and conditions of Executive’s employment and the termination of Executive’s
employment.

 

Nothing in this Agreement shall be construed
to prohibit Executive from contacting, filing a charge or participating in any proceeding or investigation by the U.S. Equal Employment
Opportunity Commission (“EEOC”), the Department of Labor (“DOL”), the National Labor Relations Board (“NLRB”),
the Securities and Exchange Commission (“SEC”) or other government agency (collectively “Government Agencies”).
Notwithstanding the foregoing, Executive agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit
filed by Executive or on Executive’s behalf, with the exception of any award by the SEC.

 

4.           Continuing
Obligations.

 

a.       Confidentiality.
Executive acknowledges and reaffirms Executive’s obligation to keep confidential and not to disclose any and all non-public
information concerning the Company that Executive acquired during the course of Executive’s employment with the Company,
including, but not limited to, any non-public information concerning the Company’s business affairs, business prospects,
and financial condition.

 

b.       Post-Employment
Restrictive Covenants. Executive further acknowledges and reaffirms Executive’s post-employment obligations set forth
in the Confidentiality Agreement referenced in Section 6 of the Employment Agreement, which remain in full force and effect, including
but not limited to any non-compete, non-solicit and non-disclosure obligations.

 

5.           Cooperation.
Following Executive’s resignation without cause (as defined in the Employment Agreement), Executive shall assist and cooperate
with the Company in the orderly transition of work to others if so requested by the Company. Executive shall cooperate with the
Company and be responsive to requests for information relating to business matters about which Executive may have information or
knowledge and reasonably assist the Company, as the case may be, with any litigation, threatened litigation or arbitration proceeding
relating to the Company’s business as to which business Executive had relevant knowledge, and the Company shall reimburse
Executive for reasonable costs, including attorneys’ fees and expenses, actually incurred by Executive in connection with
such assistance.

 

6.           Non-disparagement.
Executive understands and agrees that as a condition for the consideration herein described, Executive shall not make
any false, disparaging or derogatory statements to any person or entity, including any media outlet, regarding the Company or
any of its affiliates, subsidiaries, directors, officers, Executives, agents or representatives or about the Company's or its
subsidiaries’ business affairs and/or financial condition. Executive understands and agrees that Executive’s commitment
not to defame, disparage, or impugn Company’s reputation constitutes a willing and voluntary waiver of Executive’s
rights under the First Amendment of the United States Constitution and other laws. However, these non-disparagement obligations,
do not limit Executive’s ability to truthfully communicate with the EEOC, DOL, NLRB, SEC, and comparable state or local
agencies or departments whether such communication is initiated by Executive or in response to the government. 

 

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7.           Communications
with Government Agencies. Nothing in this Agreement or any other agreement between the Company and Executive or any policy
of the Company:

 

a.       prohibits
Executive from communicating with Government Agencies about a potential violation of the law;

 

b.       limits
Executive’s ability, without notice to or approval from the Company: (i) to file a charge or complaint with a Government
Agency; (ii) to participate in an investigation or proceeding conducted by a Government Agency; or (iii) to provide information
or documents to a Government Agency in connection with an investigation or proceeding; or

 

c.       restricts
Executive’s right to receive a reward or incentive for information provided to a Government Agency.

 

8.           Amendment
and Waiver. This Agreement shall be binding upon the Parties and may not be modified in any manner, except by an instrument
in writing of concurrent or subsequent date signed by duly authorized representatives of the Parties hereto. This Agreement is
binding upon and shall inure to the benefit of the Parties and their respective agents, assigns, heirs, executors, successors and
administrators. No delay or omission by the Company or Executive in exercising any right under this Agreement shall operate as
a waiver of that or any other right. A waiver or consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar to or waiver of any right on any other occasion.

 

9.           Validity.
Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid,
the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or
provision shall be deemed not to be a part of this Agreement.

 

10.   
   Severability. If any provision or part of a provision of this Agreement
(except any provision or part of a provision contained in Sections 2 and 3 of this Agreement) shall be determined to be void
or unenforceable by an arbitrator, court of law, administrative agency or tribunal of competent jurisdiction, the remainder
of the Agreement shall remain valid and enforceable by any party, and all other valid provisions of the Agreement shall
survive and continue to bind the parties. If, however, any provision or part of a provision contained in Sections 2 and/or 3
of this Agreement shall be determined to be void or unenforceable by an arbitrator, court of law, administrative agency or
tribunal of competent jurisdiction, the entire Agreement shall be unenforceable, as each party recognizes and acknowledges
that the duties, rights and obligations set forth in Sections 2 and 3 of this Agreement are essential to the Agreement.

 

11.         Nature
of Agreement. Executive understands and agrees that this Agreement is a separation agreement and does not constitute an
admission of liability or wrongdoing on the part of the Company.

 

12.         Acknowledgments.
Executive acknowledges that Executive has been given at least 21 days to consider this Agreement, and that the Company advised
Executive to consult with an attorney of Executive’s own choosing prior to signing this Agreement. Executive understands
that Executive may revoke this Agreement for a period of seven (7) days after Executive signs this Agreement by notifying the
Company, in writing, and the Agreement shall not be effective or enforceable until the expiration of the Revocation Period. For
the avoidance of doubt, Executive understands and agrees that by entering into this Agreement, Executive is waiving any and all
rights or claims Executive might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit
Protection Act, and that Executive has received consideration beyond that to which Executive was previously entitled. 

 

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13.         Tax
Provision. In connection with the separation benefits to be provided to Executive pursuant to the Employment Agreement,
the Company shall withhold and remit to the tax authorities the amounts required under applicable law,
and Executive shall be responsible for any and all applicable taxes with respect to such payments under applicable law. Executive
acknowledges that Executive is not relying upon the advice or representation of the Company with respect to the tax treatment of
any of the payments set forth in the Employment Agreement.

 

14.       Voluntary
Assent. Executive affirms that no other promises or agreements of any kind have been made to or with Executive by any person
or entity whatsoever to cause Executive to sign this Agreement, and that Executive fully understands the meaning and intent of
this Agreement. Executive states and represents that Executive had an opportunity to fully discuss and review the terms of this
Agreement with an attorney. Executive further states and represents that Executive has carefully read this Agreement, understands
the contents herein, freely and voluntarily assents to all of the terms and conditions hereof and signs Executive’s name
of Executive’s own free act.

 

15.       Entire
Agreement. This Agreement, the Employment Agreement, Confidentiality Agreement referenced in Section 6 of the Employment
Agreement, and the Stock Option Agreement, which survive termination/resignation of Executive’s employment with the Company,
contain and constitute the entire understanding and agreement between Executive and the Company and supersede and cancel any other
previous oral and written negotiations, agreements, and commitments between the Parties.

 

16.       Governing
Law, Venue and Jurisdiction. This Agreement and all transactions contemplated by this Agreement shall be governed by, construed,
and enforced in accordance with the laws of the State of Michigan without regard to any conflicts of laws, statutes, rules, regulations
or ordinances. Executive consents to personal jurisdiction and venue in the Circuit Court in and for Ingham County, Michigan regarding
any action arising under the terms of this Agreement and any and all other disputes between Executive and the Company.

 

17.       Arbitration.
Any and all controversies and disputes between Executive and the Company arising from this Agreement or regarding any other matter
whatsoever shall be submitted to arbitration before a single unbiased arbitrator skilled in arbitrating such disputes under the
American Arbitration Association, utilizing its employment rules.  Any fees paid to the arbitrator or the American Arbitration
Association shall be borne exclusively by the Company. The process for selecting a single unbiased arbitrator shall be decided
between the Company and Executive.  If Executive and the Company are unable to agree upon a single unbiased arbitrator the
selection rules imposed by the AAA shall be used.  Any arbitration action brought pursuant to this section shall be heard
in Lansing, Michigan.  The arbitration shall be governed by the Michigan Uniform Arbitration Act (MCL Section 691.198 et seq.)
and judgment upon the award rendered by the arbitration may be entered by any court having jurisdiction over such award. 
The Circuit Court in and for Lansing, Michigan shall have concurrent jurisdiction with any arbitration panel for the purpose of
entering temporary and permanent injunctive relief, but only with respect to any alleged breach of the Confidentiality Agreement
referenced in Section 6 of the Employment Agreement. The arbitration proceedings shall be recorded, a transcript produced, and
the arbitrator shall issue written findings of fact and conclusions of law in support of the arbitrator’s decision.

 

[Signatures Appear on the Following Page]

 

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

 

	EXECUTIVE	 	XG Sciences, Inc.
	 	 	 	 
	/s/ Philip. L Rose	 	By:	/s/Steven C. Jones
	Philip L. Rose	 	Name:	Steven C. Jones
	 	 	 	Its Authorized Representative

 

    	 	6Exhibit 10.7

 

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT
(the “Agreement”) is entered into on this 26th day of August, 2020 (“Effective Date”) by and
between Philip L. Rose, Ph.D., whose legal address is 6106 Fresno Lane, East Lansing, MI 48823 (“Consultant”) and XG
Sciences, Inc., a Michigan corporation (“XGS” or the “Company”) with its principal office located at 3101
Grand Oak Drive, Lansing, MI 48911.

 

RECITALS:

 

WHEREAS, Consultant
resigned as the Chief Executive Officer of the Company on August 26, 2020, and the Company wishes to engage the Consultant for
certain consulting services on a part-time basis pursuant to the terms of this Agreement in order to ensure continuity of its busines
operations; and

 

WHEREAS, Consultant
wishes to provide such consulting services to XGS;

 

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

 

1.            Services.
During the Term, Consultant will provide those consulting services described on Exhibit A to this Agreement (“Services”).

 

2.           Compensation
and Expenses. In consideration for the Services rendered by the Consultant to XGS throughout the Term, the Company shall compensate
Consultant in accordance with the terms on Exhibit B.

 

3.            Term
of Engagement. This Agreement shall be effective for a period beginning on the Effective Date of this Agreement and expiring
four years thereafter (the “Term”), subject to the right of XGS and/or Consultant to terminate this Agreement pursuant
to paragraph 5 hereof at any time.

 

4.            Confidentiality,
Non-Compete & Non-Solicitation Agreement. The parties previously entered into that certain Confidentiality, Non-Compete
& Non-Solicitation Agreement, dated December 16, 2013 attached hereto as Exhibit C (the “Confidentiality Agreement”).
Such Confidentiality Agreement is hereby incorporated into an made a part of this Agreement, and Consultant agrees to remain bound
by the terms thereof. Consultant agrees that if this Agreement is still in effect at such time as the Restrictive Period defined
in Section 8 of the Confidentiality Agreement lapses, then such Restrictive Period shall automatically be deemed to have been extended
for an additional two (2) years from the last date on which such Restrictive Period would otherwise have been in effect.

 

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5.            Termination.
XGS and Consultant shall each have the right to terminate this Agreement at any time, for any reason, by giving written notice
to the other party at least ten (10) days prior to the effective date of termination ("Termination" or “Termination
Date”). For purposes of this Agreement, the Company shall have the right to terminate this Agreement for “Cause”
if (i) Consultant fails substantially in the performance and/or discharge of his Services for any reason other than the Consultant’s
death or disability, (ii) Consultant engages in any act or failure to act that is or is reasonably likely to be materially harmful
to the reputation of the Company, (iii) Consultant engages in an action or course of conduct that (A) relates to the Company or
its subsidiaries and constitutes deceit, fraud, embezzlement or theft or (B) constitutes a felony or any crime of moral turpitude
or (C) is grossly negligent, (iv) any sanction, suspension or censure of Consultant by, or action or omission of the Consultant
that could provide the basis for sanction, suspension or censure of the Consultant by, any federal, state or local governmental,
regulatory or administrative body having jurisdiction over the Company or its business, (v) Consultant breaches any provision of
(A) this Agreement, (B) the Confidentiality Agreement, (C) that certain Separation Agreement, dated August 26, 2020, between the
parties (the “Separation Agreement”), or (D) engages in conflict of interest activities with the Company or is employed
by, consulting with and/or otherwise affiliated with a competitor of Company, or (vi) engages in any act or fails to act in a manner
that would constitute “cause” under applicable law. Upon any Termination by the Company within the first ninety (90)
days from the Effective Date, a Termination for Cause by the Company after ninety (90) days from the Effective Date, or any early
Termination by Consultant during the Term hereof, any stock option agreements referenced in Exhibit B hereof shall be automatically
deemed to expire ninety (90) days after the date of such Termination. For the avoidance of doubt, upon any Termination without
“Cause” by the Company after ninety (90) days from the Effective Date, there will be no change to the expiration date
of any of the option agreements referenced in Exhibit B.

 

Upon Termination, Consultant agrees to
cease all activities on behalf of XGS; provided, however Consultant agrees to answer any reasonable follow-up inquiries from the
Company regarding any pending matters at the Termination Date. Notwithstanding the foregoing, the Parties agree that this Agreement
will terminate at the end of the Term, unless the parties agree in writing to renew this Agreement.

 

6.            Return
of Property. Upon the Termination of this Agreement, regardless of why the Agreement terminates, Consultant shall return to
XGS and/or certify in writing that Consultant has deleted from all of Consultant’s computer and related storage systems,
all property owned by XGS and all Confidential Information (as defined in the Confidentiality Agreement) of XGS in whatever form
it exists, including all copies thereof.

 

7.           Miscellaneous.

 

a)          Entire
Agreement and Modification. This Agreement supersedes all prior agreements and understandings between the parties and may not
be modified or terminated orally. No modification or attempted waiver of this Agreement will be valid unless in writing and signed
by the party against whom the same is sought to be enforced.

 

b)          Severability
and “Blue Line”. The provisions of this Agreement are separate and severable, and if any of them is declared invalid
and/or unenforceable by a court of competent jurisdiction or an arbitrator, the remaining provisions shall not be affected. If
a court of competent jurisdiction determines that any of the restrictions against disclosure of Confidential Information, and/or
solicitation contained in this Agreement are invalid in whole or in part due to over breadth, whether geographically, temporally,
or otherwise, such court is specifically authorized and requested to reform such provision by modifying it to the smallest extent
necessary to render it valid and enforceable, and to enforce the provision as modified.

 

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c)           No
Construction Against Drafting Party. This Agreement is the joint product of XGS and Consultant and each provision hereof has
been subject to the mutual consultation, negotiation and agreement of XGS and Consultant and shall not be construed for or against
either party hereto and shall not be construed against the party that may have drafted the provision, term, or Agreement. Both
parties have had the opportunity to seek and obtain advice from legal counsel of their own choosing.

 

d)           Governing
Law and Venue. This Agreement will be governed by, and construed in accordance with the provisions of the law of the State
of Michigan, without reference to provisions that refer a matter to the law of any other jurisdiction. The parties agree that courts
of competent jurisdiction in Ingham County, Michigan and the United States District Court for the Western District of Michigan
shall have concurrent jurisdiction for purposes of entering temporary, preliminary and permanent injunctive relief and with regard
to any action arising out of any breach or alleged breach of this Agreement. Consultant waives personal service of any and all
process upon Consultant and consents that all such service of process may be made by certified or registered mail directed to Consultant
at the address stated in the preamble of this Agreement, with service so made deemed to be completed upon actual receipt thereof.
Consultant waives any objection to jurisdiction and venue of any action instituted against Consultant as provided herein and agrees
not to assert any defense based on lack of jurisdiction or venue. Consultant further agrees that any action arising out of this
Agreement or the relationship between the parties established herein shall be brought only in courts of competent jurisdiction
in Ingham County, Michigan or the United States District Court for the Western District of Michigan. Consultant’s liability
for services provided hereunder shall be limited to the amounts paid, or in the case of non-monetary compensation, the value of
such non-monetary compensation issued, by XGS to Consultant for such services except for any breaches by the Consultant of the
Confidentiality Agreement.

 

e)           Notices.
All notices and other communications required or permitted under this Agreement shall be in writing, and shall be deemed properly
given if delivered personally, mailed by registered or certified mail in the United States mail, postage prepaid, return receipt
requested, sent by facsimile, or sent by Express Mail, Federal Express or nationally recognized express delivery service, as follows:

 

		(i)	If to XGS, at the address listed in the preamble to this Agreement or its then primary executive
offices to the attention of the Chief Financial Officer;

 

		(ii)	If to the Consultant, at the address listed as the Consultant’s primary legal residence which
is listed in the preamble to this Agreement. Should this address change, Consultant agrees to promptly notify XGS of such change.

 

Notice given by hand, certified or registered
mail, or by Express Mail, Federal Express or other such express delivery service, shall be effective upon actual receipt. Any party
may change any address to which notice is to be given to it by giving notice as provided above of such change of address.

 

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f)            SEC
Disclosure. Consultant understands and acknowledges that if this Agreement is deemed to be a material agreement of XGS, it
may need to be filed with the Securities and Exchange Commission or provided to a regulatory body in conjunction with any audits
or investigations of XGS’ activities and expressly gives permission to provide this Agreement as needed in such instances.

 

g)           Independent
Parties. The parties agree that the Consultant is acting as an independent contractor under current Internal Revenue Service
guidelines in the provision of services under this Agreement and that the Consultant shall be solely responsible for paying all
taxes due on any compensation hereunder. The Consultant understands and acknowledges that all compensation hereunder is taxable
to the Consultant and XGS has an affirmative obligation to report such amounts of compensation on Form 1099 to the Internal Revenue
Service each year. consultant agrees to provide his social security or tax identification number upon request therefor.

 

Publicity. None
of the parties hereto shall use the name of any other party hereto for promotional purposes without the prior written consent of
the party whose name is proposed to be used, nor shall any party disclose the existence or substance of this Agreement except as
may be required by law.

 

i)            Assignment.
This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns,
provided that neither party shall have the right to assign this Agreement or its rights and obligations hereunder without the prior
written consent of the other party.

 

j)            Attorney’s
Fees. In the event of any dispute arising under the terms of this Agreement, the prevailing party shall be entitled to recover
its reasonable attorney’s fees and costs, in addition to such other relief as may be awarded by a court or arbitrator.

 

k)           Captions.
Captions of the sections of this Agreement are for reference purposes only and do not constitute terms or conditions hereof. The
parties acknowledge they have thoroughly reviewed this Agreement and mutually agree upon its terms and conditions. The provisions
of this Agreement allocate the risks between the parties. The terms and conditions included herein reflect this allocation of risk,
and each provision herein is part of the bargained-for consideration of this Agreement.

 

l)            Waiver.
The waiver by either party of a breach or violation of any provision of this Agreement shall not operate as or be construed to
be a continuing waiver or a waiver of any subsequent breach of either the same or any other provision of this Agreement. This Agreement
is intended solely for the mutual benefit of the parties hereto and there is no intention, expressed or otherwise, to create any
rights or interests for any other party or person other than the parties.

 

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m)          Counterparts
and Electronic Signatures. This Agreement may be signed in counterparts, and by DocuSign, fax or by Adobe Acrobat PDF file,
each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
Both parties expressly stipulate that, to the extent permitted by law, any documents contemplated pursuant to this Agreement may
be executed and become effective by affixing either an electronic or handwritten signature in the appropriate location and transmitting
such document to the other party using traditional, electronic, or facsimile methods of transmission. Any such electronic or facsimile
transmitted signature will be deemed and carry the legal significance of an original signature.

 

[Signatures Appear on the Following Page]

 

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IN WITNESS WHEREOF,
the parties have executed this Agreement on the day and year first set forth above.

 

	XG SCIENCES, INC.:	 	CONSULTANT:
	 	 	 	 	 
	By:	/s/ Steven C. Jones	 	By:	/s/ Philip L. Rose
	Name:	Steven C. Jones	 	Name:	Philip L. Rose
	Title:	Authorized Representative	 	 	 

 

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EXHIBIT A

 

Description of Services: Upon the reasonable request
by any officer of XGS, Consultant shall provide timely assistance with respect to any reasonable inquiries regarding:

 

		a)	existing or potential customers of XGS; or

 

		b)	existing or planned products of XGS; or

 

		c)	technical product performance; or

 

		d)	manufacturing plant operations and/or expansions; or

 

		e)	existing or planned contracts with third parties; or

 

		f)	strategic initiatives of the Company; or

 

		g)	such other matters as may be reaonable requested by XGS.

 

Nothwithstanding the foregoing, Company
agrees that Consultants assistance in the above matters will be in an advisory and review capacity only, and that other than providing
previously prepared Work Product (as defined in the Confidentiality Agreement) that may still be in Consultant’s possession,
Consultant will not have to prepare any new Work Product as part of the Services under this Agreement.

 

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EXHIBIT B

 

Compensation: 

 

1.    Compensation.
So long as this Agreement has not been terminated prior to the date which is eighty five (85) days from the Effective Date, XGS
agrees that as compensation for the Services rendered by Consultant, it will amend, on or before the date which is ninety (90)
days from the Effective Date, the following Stock Option Agreements:

 

		a)	Stock Option Award Agreement, dated July 24, 2017, for 330,000 stock options

		b)	Stock Option Award Agreement, dated April 1, 2020, for 29,000 stock options.

 

to make the following modifications:

 

		i.)	The Type of Grant box will be update to reflect all of such options are “Non-Qualified”

		ii.)	The number of stock options under each such Stock Option Award Agreement will be amended to equal
the vested portion of such stock options as of the date of this Consulting Agreement as follows:

		a.	For the Award Agreement, dated July 24, 2017 – 290,416 options

		b.	For the Award Agreement, dated April 1, 2020 – 9,667 options

		iii.)	Section 2 of each Award Agreement will be amended to reflect that all of the amended shares are
vested.

		iv.)	Section 6(b) will be amended and restated as follows:

 

“(b)         Expiration.
Except as otherwise provided in Section 29 of the Plan in the event of a merger or sale under certain circumstances, or as provided
in Section 8 of this Agreement, the term of your Stock Option expires upon the earliest of the following or upon the breach by
you of any of the restrictive covenants set forth in that certain Confidentiality, Non-Solicitation, and Non-Compete Agreement,
dated December 16, 2013 between you and the Company (the “Non-Compete Agreement”):

 

(i)         immediately
upon the Company’s termination of that certain Consulting Agreement, dated August 26, 2020, between you and the Company
(the “Consulting Agreement”), for “Cause” (as such term is defined in Consulting Agreement) or upon the
breach by you of the Non-Compete Agreement;

 

(ii)         Ninety
(90) days after you terminate the Consulting Agreement for any reason other than death or Disability, provided that if during
any part of such ninety (90) day period your Stock Option is not exercisable solely because of the condition set forth in Section
7 below relating to “Securities Law Compliance”, your Stock Option shall not expire until the earlier of the Expiration
Date or until it shall have been exercisable for an aggregate period of three months after the termination of the Consulting Agreement;

 

(iii)         12 months
after the termination of your service with the Company due to your death or disability; or

 

(iv)         the Expiration
Date.”

 

    	 	8	 

     

    

  

2.       Expenses.
In addition to any compensation payable hereunder, XGS shall also reimburse Consultant for all expenses reasonably incurred by
Consultant in connection with the Services performed on behalf of XGS under this Agreement including, but not limited to, airfare,
hotel, food, and a standard mileage allowance for travel on XGS business using a personally owned vehicle pursuant to IRS guidelines
(all of the foregoing, collectively “Business Expenses”), upon providing the original receipts and an expense report
for such expenses in accordance with XGS’ expense reimbursement policy then in effect. Consultant agrees to abide by and
follow XGS travel and expense policy when incurring any expenses in performing the Services under this Agreement.

 

    	 	9	 

     

    

 

EXHIBIT C

 

Confidentiality, Non-Solicitation and
Non-Compete Agreement, dated Decmeber 16, 2013

 

    	 	10

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