Exhibit
4.1


 


PROMISSORY
NOTE


 


	U.S. $8,400,000.00	December
    30, 2022



 


FOR
VALUE RECEIVED, Inpixon, a Nevada corporation (“Borrower”), promises to pay in lawful money of the United States of
America to the order of Streeterville Capital, LLC, a Utah limited liability company, or its successors or assigns (“Lender”),
the principal sum of $8,400,000.00, together with all other amounts due under this Promissory Note (this “Note”).
This Note is issued pursuant to that certain Note Purchase Agreement of even date herewith between Borrower and Lender (the “Purchase
Agreement”).


 


1.
PAYMENT. Borrower shall pay to Lender the entire outstanding balance of this Note on or before the date that is twelve (12) months
from the date hereof (the “Maturity Date”). Borrower will make all payments of sums due hereunder to Lender at Lender’s
address set forth in the Purchase Agreement, or at such other place as Lender may designate in writing. Unless otherwise agreed or required
by applicable law, payments will be applied first to any unpaid collection costs and late charges, then to accrued interest and finally
to principal.


 


2.
INTEREST. Interest shall accrue on the outstanding balance of this Note at the rate of ten percent (10%) per annum from the date
hereof until this Note is paid in full. Upon the occurrence of an Event of Default (as defined below), interest shall accrue on the outstanding
balance of this Note at the lesser of the rate of twenty-two percent (22%) per annum or the maximum rate permitted by applicable law.
All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day
months, shall compound daily and shall be payable in accordance with the terms of this Note.


 


3.
ORIGINAL ISSUE DISCOUNT; TRANSACTION EXPENSES. This Note carries an original issue discount of $1,885,000.00. In addition, Borrower
agrees to pay $15,000.00 to Lender to cover Lender’s legal fees, accounting costs, due diligence, monitoring and other transaction
costs incurred in connection with the purchase and sale of this Note, all of which amounts are included in the initial principal balance
of this Note and are fully earned and payable as of the date hereof.


 


4.
PREPAYMENT. Borrower may pay all or any portion of the amount owed earlier than it is due; provided that in the event Borrower
elects to prepay all or any portion of the outstanding balance, it shall pay to Lender 115% of the portion of the outstanding balance
Borrower elects to prepay. Early payments of less than all principal, fees and interest outstanding will not, unless agreed to by Lender
in writing, relieve Borrower of Borrower’s remaining obligations hereunder. Following an Event of Default, each time Borrower sells
any of its common or preferred stock in a financing for the purpose of raising capital, it will be required to make a mandatory prepayment
hereunder in amount equal to the lesser of twenty-five percent (25%) of the amount raised in such financing and the outstanding balance
due under this Note as of the closing date of such financing, payable within five (5) days of receiving such amount.


 


5.
REDEMPTIONS. Beginning on the date that is six (6) months from the date hereof and at the intervals indicated below until this
Note is paid in full, Lender shall have the right to redeem, up to an aggregate of one sixth (1/6) of the initial principal balance of
this Note plus any interest accrued hereunder each month (each monthly exercise, a “Monthly Redemption Amount”) by
providing written notice (each, a “Monthly Redemption Notice”) delivered to Borrower by facsimile, email, mail, overnight
courier, or personal delivery; provided, however, that if Lender does not exercise any Monthly Redemption Amount in its
corresponding month then such Monthly Redemption Amount shall be available for Lender to redeem in any future month in addition to such
future month’s Monthly Redemption Amount. Upon receipt of any Monthly Redemption Notice, Borrower shall pay the applicable Monthly
Redemption Amount in cash to Lender within five (5) business days of Borrower’s receipt of such Monthly Redemption Notice.


 






     


     


    

 


6.
Monitoring FeeS. Borrower shall be charged a separate fee equal to ten percent
(10%) of the outstanding balance on the date that is six (6) months from the issuance date of this Note to cover Lender’s accounting,
legal and other costs incurred in monitoring this Note based on the then-current outstanding balance of this Note. The foregoing fee
shall automatically be added to the outstanding balance on the applicable date without any further action by either party.


 


7.
EVENT OF DEFAULT. The occurrence of any of the following shall constitute an “Event of Default” under this
Note:


 


(a)
Failure to Pay. Borrower shall fail to pay when due, whether at stated maturity, upon acceleration or otherwise, any principal
or interest payment, or any other payment required under the terms of this Note on the date due.


 


(b)
Breaches of Covenants. Borrower or any other person or entity defaults or otherwise fails to observe or perform any covenant,
obligation, condition or agreement of Borrower contained herein or in any other Transaction Document (as defined in the Purchase Agreement),
only if such default or breach remains uncured for a period of at least five (5) Trading Days.


 


(c)
Representations and Warranties. Any representation or warranty made by Borrower to Lender in this Note, the Purchase Agreement,
any other Transaction Document, or any related agreement shall be false, incorrect, incomplete or misleading in any material respect
when made or furnished.


 


(d)
Voluntary Bankruptcy or Insolvency Proceedings. Borrower shall (i) apply for or consent to the appointment of a receiver,
trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii)  make a general assignment for
the benefit of its or any of its creditors, (iii) be dissolved or liquidated, or (iv) commence a voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official
in an involuntary case or other proceeding commenced against it.


 


(e)
Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator, or custodian
of Borrower or of all or a substantial part of its property, or an involuntary case or other proceedings seeking liquidation, reorganization,
or other relief with respect to Borrower or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect
shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of
commencement.


 


(f)
Judgment. A judgment or judgments for the payment of money in excess of the sum of $600,000.00 in the aggregate shall be rendered
against Borrower and either (i) the judgment creditor executes on such judgment or (ii) such judgment remains unpaid or undischarged
for more than sixty (60) days from the date of entry thereof or such longer period during which execution of such judgment shall be stayed
during an appeal from such judgment.


 


(g)
Attachment. Any execution or attachment shall be issued whereby any substantial part of the property of Borrower shall be taken
and the same shall not have been vacated or stayed within thirty (30) days after the issuance thereof.


 


(h)
Cross Default. Borrower breaches or any event of default occurs under any term or provision of any Other Agreement (as defined
hereafter). For purposes hereof, “Other Agreement” means collectively, all existing and future agreements and instruments
between, among or by Borrower, on the one hand, and Lender, on the other hand.


 






    2


     


    

 


8.
ACCELERATION; REMEDIES.


 


(a)
At any time following the occurrence of an Event of Default (other than an Event of Default referred to in Sections 6(d) and 6(e)),
Lender may, by written notice to Borrower, declare all unpaid principal, plus all accrued interest and other amounts due hereunder to
be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived, anything contained herein to the contrary notwithstanding. Upon the occurrence or existence of any Event of Default described
in Sections 6(d) and 6(e), immediately and without notice, all outstanding unpaid principal, plus all accrued interest and
other amounts due hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding. In addition
to the foregoing remedies, upon the occurrence or existence of any Event of Default, Lender may exercise any other right, power or remedy
permitted to it by law, either by suit in equity or by action at law, or both.


 


(b)
Upon the occurrence of a Change in Control (as defined below), and without further notice to Borrower, all unpaid principal, plus all
accrued interest, original issue discount, and other amounts due hereunder, shall become immediately due and payable. For purposes hereof,
a “Change in Control” means a sale of all or substantially all of Borrower’s assets, or a merger, consolidation,
or other capital reorganization of Borrower with or into another company, and does not include a significant equity financing; provided
however that a merger, consolidation, or other capital reorganization in which the holders of the equity of Borrower outstanding
immediately prior to such transaction continue to hold (either by the voting securities remaining outstanding or by being converted into
voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities
of Borrower, or such surviving entity, outstanding immediately after such transaction shall not constitute a Change in Control.


 


9.
UNCONDITIONAL OBLIGATION; NO OFFSET. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable
obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset it now
has or may have hereafter against Lender, its successors and assigns, and agrees to make all payments due hereunder in accordance with
the terms of this Note.


 


10.
NO USURY. Notwithstanding any other provision contained in this Note or in any instrument given to evidence the obligations evidenced
hereby: (a) the rates of interest and charges provided for herein and therein shall in no event exceed the rates and charges which result
in interest being charged at a rate equaling the maximum allowed by law; and (b) if, for any reason whatsoever, Lender ever receives
as interest in connection with the transaction of which this Note is a part an amount which would result in interest being charged at
a rate exceeding the maximum allowed by law, such amount or portion thereof as would otherwise be excessive interest shall automatically
be applied toward reduction of the unpaid principal balance then outstanding hereunder and not toward payment of interest.


 


11.
ATTORNEYS’ FEES. If this Note is placed in the hands of an attorney for collection or enforcement prior to commencing arbitration
or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender otherwise takes action to collect
overdue amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay the reasonable costs incurred
by Lender for such collection, enforcement or action including, without limitation, reasonable attorneys’ fees and disbursements.


 


12.
GOVERNING LAW; VENUE. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of Utah. The provisions set forth in the Purchase Agreement to
determine the proper venue for any disputes are incorporated herein by this reference.


 






    3


     


    

 


13.
ARBITRATION OF DISPUTES. Borrower agrees that any dispute arising under this Note shall be subject to the Arbitration Provisions
(as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.


 


14.
WAIVERS. Borrower hereby waives presentment, notice of nonpayment, notice of dishonor, protest, demand and diligence.


 


15.
LOSS OR MUTILATION. On receipt by Borrower of evidence reasonably satisfactory to Borrower of the loss, theft, destruction or
mutilation of this Note and, in the case of any such loss, theft or destruction of this Note, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to Borrower or, in the case of any such mutilation, on surrender and cancellation of such Note, Borrower
at its expense will execute and deliver, in lieu thereof, a new Note of like amount and tenor.


 


16.
NOTICES. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by this reference.


 


17.
AMENDMENT AND WAIVER. This Note and its terms and conditions may be amended, waived or modified only in writing by Borrower and
Lender.


 


18.
SEVERABILITY. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the
objective of the parties to the fullest extent permitted and the balance of this Note shall remain in full force and effect.


 


19.
ASSIGNMENTS. Borrower may not assign this Note without the prior written consent of Lender. This Note may be offered, sold, assigned
or transferred by Lender without the consent of Borrower.


 


20.
FINAL NOTE. This Note, together with the other Transaction Documents, contains the complete understanding and agreement of Borrower
and Lender and supersedes all prior representations, warranties, agreements, arrangements, understandings, and negotiations. THIS NOTE,
TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF ANY ALLEGED PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.


 


21.
Waiver of Jury Trial. BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE
TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES
HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, BORROWER ACKNOWLEDGES THAT IT KNOWINGLY AND VOLUNTARILY IS WAIVING SUCH PARTY’S RIGHT
TO DEMAND TRIAL BY JURY.


 


22.
TIME IS OF THE ESSENCE. Time is of the essence of this Note and each and every provision hereof in which time is an element.


 


23.
LIQUIDATED DAMAGES. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions of
this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’
inability to predict future interest rates and other relevant factors. Accordingly, Lender and Borrower agree that any fees, balance
adjustments, default interest or other charges assessed under this Note are not penalties but instead are intended by the parties to
be, and shall be deemed, liquidated damages.


 


[Remainder
of page intentionally left blank]


 




    4


     


    

 


IN
WITNESS WHEREOF, Borrower has caused this Note to be issued as of the date first set forth above.


 


		BORROWER:
	 	 	 
		INPIXON
	 	 	 
	 	By:	/s/
    Nadir Ali
	 	Name: 	Nadir
    Ali
	 	Title:	CEO




 





[Signature
Page to Promissory Note]


 


 


5