Document:

Exhibit 10.5 

 

THE EXCHANGE CONTEMPLATED HEREIN
IS INTENDED TO COMPORT WITH THE REQUIREMENTS OF SECTION 3(a)(9) OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

EXCHANGE AGREEMENT

 

This Exchange Agreement
(this “Agreement”) is entered into as of April 14, 2021 by and between Chicago Venture Partners, L.P., a Utah limited
partnership (“Lender”), and Sysorex, Inc. a Nevada corporation (“Borrower” or the “Company”).
Capitalized terms used in this Agreement without definition shall have the meanings given to them in the Original Note (defined below).

 

A. Borrower previously
sold and issued to Lender that certain Promissory Note dated December 31, 2018 (the “Original Note”), pursuant to
that certain Note Purchase Agreement dated December 31, 2018 by and between Lender and Borrower (the “Purchase
Agreement,” and together with the Original Note and all other documents entered into in conjunction therewith, the
“Transaction Documents”), of which an aggregate amount (principal, interest, fees and costs) of $870,654.88 (the
“Outstanding Balance”) remains outstanding.

 

B. Borrower is a party
to that certain Agreement and Plan of Merger by and among the Company and TTM Acquisition Corp., a Nevada corporation and wholly
owned subsidiary of SYSX and TTM Digital Assets & Technologies, Inc., a Nevada corporation
(“TTM”)., dated April 8, 2021 with the closing on April 14, 2021 (the “Transaction Effective
Date”), pursuant to which the Company will acquire all of the issued and outstanding capital stock of TTM (the
“Transaction”).

 

C. In connection with the
Transaction, Borrower and Lender desire, in full satisfaction of all rights to repayment in cash and any other obligations of the
Borrower to Lender arising under the Original Note, to exchange (such exchange is referred to as the “Note
Exchange”) the Original Note for the delivery of 1,530,149 shares (the “Exchange Shares”) of the
Company’s Common Stock, par value $0.00001 (the “Common Stock”) at an effective price per Exchange Share
equal to $0.569, according to the terms and conditions of this Agreement.

 

D. The
Note Exchange will consist of Lender surrendering the Original Note in exchange for the Exchange Shares, which will be issued free of
any restrictive securities legend. Other than the surrender of the Original Note, no consideration of any kind whatsoever shall be given
by Lender to Borrower in connection with this Agreement.

 

E. Lender
and Borrower have agreed to exchange the Original Note for the Exchange Shares on the terms and conditions set forth herein.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1. Recitals
and Definitions. Each of the parties hereto acknowledges and agrees that the recitals set forth above in this Agreement are true and
accurate, are contractual in nature, and are hereby incorporated into and made a part of this Agreement.

 

    

    

    

 

2. Issuance
of Exchange Shares. Pursuant to the terms and conditions of this Agreement, the Note Exchange shall occur with Lender surrendering
the Original Note to Borrower and the Exchange Shares being delivered to Lender on the Transaction Effective Date. On the Transaction
Effective Date, the Original Note shall be cancelled and all obligations of Borrower under the Original Note shall be deemed fulfilled.
All Exchange Shares delivered hereunder shall be delivered via DWAC to Lender’s designated brokerage account. Borrower agrees to
provide all necessary cooperation or assistance that may be required to cause all Exchange Shares delivered hereunder to become Free Trading
within a reasonable time after the Transaction Effective Date. For purposes hereof, the term “Free Trading” means that
(a) the Exchange Shares have been cleared and approved for public resale by the compliance departments of Lender’s brokerage firm
and the clearing firm servicing such brokerage, and (b) such shares are held in the name of the clearing firm servicing Lender’s
brokerage firm and have been deposited into such clearing firm’s account for the benefit of Lender.

 

3. Closing.
The closing of the transactions contemplated hereby (the “Closing”) along with the delivery of the Exchange Shares
to Lender shall occur on the Transaction Effective Date by means of the exchange by email of .pdf documents by Borrower and Lender, but
shall be deemed to have occurred at the offices of Hansen Black Anderson Ashcraft PLLC in Lehi, Utah.

 

4. Holding
Period, Tacking and Legal Opinion. Borrower represents, warrants and agrees that for the purposes of Rule 144 (“Rule 144”)
of the Securities Act of 1933, as amended (the “Securities Act”), the holding period of the Original Note and the Exchange
Shares will include Lender’s holding period of the Original Note from December 31, 2018. Borrower agrees not to take a position
contrary to this Section 5 in any document, statement, setting, or situation. Borrower agrees to take all action necessary to issue the
Exchange Shares without restriction, and not containing any restrictive legend without the need for any action by Lender; provided that
the applicable holding period has been met. In furtherance thereof, at the Closing, counsel to Lender may, in its sole discretion, provide
an opinion that: (a) the Exchange Shares may be resold pursuant to Rule 144 without volume or manner-of-sale restrictions; and (b) the
transactions contemplated hereby and all other documents associated with this transaction comport with the requirements of Section 3(a)(9)
of the Securities Act. Borrower represents that it is not subject to Rule 144(i). The Exchange Shares are being issued in substitution
of and exchange for and not in satisfaction of the Original Note. Borrower acknowledges and understands that the representations and agreements
of Borrower in this Section 5 are a material inducement to Lender’s decision to consummate the transactions contemplated herein.

 

5.
Representations, Warranties and Agreements.

 

(a) Borrower Representations,
Warranties and Agreement. In order to induce Lender to enter into this Agreement, Borrower, for itself, and for its affiliates,
successors and assigns, hereby acknowledges, represents, warrants and agrees as follows: (a) Borrower has full power and authority
to enter into this Agreement and to incur and perform all obligations and covenants contained herein, all of which have been duly
authorized by all proper and necessary action; (b) no consent, approval, filing or registration with or notice to any governmental
authority is required as a condition to the validity of this Agreement or the performance of any of the obligations of Borrower
hereunder; (c) no Event of Default has occurred under the Original Note, and any Events of Default that may have have occurred
thereunder have been or are hereby waived by Lender; (d) the issuance of the Exchange Shares is duly authorized by all necessary
corporate action and the Exchange Shares, when issued in accordance with the terms hereof, will be validly issued, fully paid and
non-assessable, free and clear of all taxes, liens, claims, pledges, mortgages, restrictions, obligations, security interests and
encumbrances of any kind, nature and description; (e) Borrower has not received any consideration in any form whatsoever for issuing
the Exchange Shares, other than the surrender of the Original Note; (f) upon delivery of the Exchange Shares, the Original Note
shall be deemed cancelled; and (g) Borrower has taken no action which would give rise to any claim by any person for a brokerage
commission, placement agent or finder’s fee or other similar payment by Borrower related to this Agreement.

 

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(b) Lender Representations Warranties
and Agreement. In order to induce the Company to enter into this Agreement, Lender for itself, and for its affiliates, successors
and assigns, hereby acknowledges, represents, warrants and agrees as follows: (a) Lender has full power and authority to enter into this
Agreement and to incur and perform all obligations and covenants contained herein, all of which have been duly authorized by all proper
and necessary action; (b) no consent, approval, filing or registration with or notice to any governmental authority is required as a condition
to the validity of this Agreement or the performance of any of the obligations of Lender hereunder,;(c) Lender understands that the Exchange
Shares are being offered and exchanged in reliance on specific exemptions from the registration requirements of United States federal
and state securities laws and that the Company is relying in part upon the truth and accuracy of, and Lender’s compliance with,
the representations, warranties, agreements, acknowledgments and understandings of Lender set forth herein and in the Exchange Documents
in order to determine the availability of such exemptions and the eligibility of Lender to acquire the Exchange Shares; (d) Lender understands
that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation
or endorsement of the the Exchange Shares or the fairness or suitability of the investment in the Exchange Shares nor have such authorities
passed upon or endorsed the merits of the offering of the Exchange Shares; (e) Lender is acquiring the Exchange Shares in the ordinary
course of its business, Lender has such knowledge, sophistication, and experience in business and financial matters so as to be capable
of evaluation of the merits and risks of the prospective investment in the Exchange Shares and has so evaluated the merits and risk of
such investment and Lender is an “accredited investor” as defined in Regulation D under the Securities Act; (f) Lender owns
the Original Note free and clear of any liens, (g) the issuance of the Exchange Shares shall not result in Lender beneficially owning
a number of shares of Common Stock, when aggregated with any other shares of Common Stock beneficially owned at such time, that would
result in Lender beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and the rules promulgated thereunder) more than 9.99% of all of the issued and outstanding shares
of Common Stock; and (h) Lender understands that this Agreement does not constitute an admission of liability by any party, including
any admission of default under the Transaction Documents.

 

6. Ownership
Limitation. Notwithstanding anything to the contrary contained in this Agreement, Borrower shall not issue any Exchange Shares
to Lender to the extent that such issuance would cause Lender (together with its affiliates) to beneficially own a number of shares
exceeding 9.99% of the number of shares of Common Stock outstanding on such date (including for such purpose the shares of Common
Stock issuable upon such issuance) (the “Maximum Percentage”). If Lender makes a request for an issuance of
Exchange Shares that would cause Lender to beneficially own a nmber of shares of Common Stock exceeding the Maximum Percentage,
Borrower shall issue the maximum number of Exchange Shares available to Lender so as to not cause Lender’s ownership of Common
Stock to exceed the Maximum Percentage. For purposes of this section, beneficial ownership of Common Stock will be determined
pursuant to Section 13(d) of the Exchange Act. By written notice to Borrower, Lender may increase, decrease or waive the Maximum
Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day
notice requirement is enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns of Lender.

 

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7. Consent
to Merger. By its execution of this Agreement, Lender hereby consents to an acquisition/merger transaction involving Borrower and
TTM Digital Assets & Technologies, Inc.

 

8. Arbitration.
By its execution of this Agreement, each party agrees to be bound by the Arbitration Provisions (as defined in the Purchase Agreement)
set forth as an exhibit to the Purchase Agreement and the parties agree to submit all Claims (as defined in the Purchase Agreement) arising
under this Agreement or any Transaction Document or other agreement between the parties and their affiliates to binding arbitration pursuant
to the Arbitration Provisions.

 

9. Governing
Law; Venue. This Agreement shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Agreement shall be governed by, the internal laws of the State of Nevada, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Nevada or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of Nevada. The provisions set forth in the Purchase Agreement to
determine the proper venue for any disputes are incorporated herein by this reference. BORROWER HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

10. Counterparts.
This Agreement may be executed in any number of counterparts with the same effect as if all signing parties had signed the same document.
All counterparts shall be construed together and constitute the same instrument. The exchange of copies of this Agreement and of signature
pages by facsimile transmission or other electronic transmission (including email) shall constitute effective execution and delivery of
this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted
by facsimile transmission or other electronic transmission (including email) shall be deemed to be their original signatures for all purposes.

 

11. Attorneys’
Fees. In the event of any arbitration or action at law or in equity to enforce or interpret the terms of this Agreement, the
parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore
be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such prevailing party in
connection with the arbitration, litigation and/or dispute without reduction or apportionment based upon the individual claims or
defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s
power to award fees and expenses for frivolous or bad faith pleading.

 

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12. No
Reliance. Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers, equity holders,
representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives, officers, directors,
or employees except as expressly set forth in this Agreement and the Transaction Documents and, in making its decision to enter into the
transactions contemplated by this Agreement, Borrower is not relying on any representation, warranty, covenant or promise of Lender or
its officers, directors, members, managers, equity holders, agents or representatives other than as set forth in this Agreement.

 

13. Severability.
If any part of this Agreement 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 Agreement shall remain in full force and effect.

 

14. Entire
Agreement. This Agreement, together with the Transaction Documents, and all other documents referred to herein, supersedes all other
prior oral or written agreements between Borrower, Lender, its affiliates and persons acting on its behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither Lender nor Borrower makes any
representation, warranty, covenant or undertaking with respect to such matters.

 

15. Amendments.
This Agreement may be amended, modified, or supplemented only by written agreement of the parties. No provision of this Agreement may
be waived except in writing signed by the party against whom such waiver is sought to be enforced.

 

16. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.
This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Lender hereunder may be
assigned by Lender to a third party, including its financing sources, in whole or in part. Borrower may not assign this Agreement or any
of its obligations herein without the prior written consent of Lender.

 

17. Time
of Essence. Time is of the essence with respect to each and every provision of this Agreement.

 

18. Notices.
Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted under this Agreement to be given
to Borrower or Lender shall be given as set forth in the “Notices” section of the Purchase Agreement.

 

19. Further
Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

	 	COMPANY:
	 	 	 
	 	SYSOREX, INC.
	 	 
	 	By:	/s/ Zaman Khan
	 	 	Zaman
Khan, Chief Executive Officer

 

	 	LENDER:
	 	 	 
	 	CHICAGO VENTURE PARTNERS, L.P..
	 		 
	 	By:	Chicago Venture Management, L.L.C,
	 	 	 
	 	By:	CVM, Inc., its Manager

 

	 	 	By:	/s/ John M. Fife
	 	 	 	John
M. Fife, President

  

[Signature Page to Exchange Agreement]

 

 

6Exhibit 10.6

 

SECURITIES
SETTLEMENT AGREEMENT

 

This
SECURITIES SETTLEMENT AGREEMENT (the “Agreement”), dated as of April 14, 2021 (the “Effective Date”),
is by and between Sysorex, Inc., a Nevada corporation (the “Company”), and First Choice International Company, Inc.,
a Delaware corporation (“First Choice”).

 

RECITALS:

 

WHEREAS,
First Choice is entitled to the repayment of debt, assigned to it by Systat Software, Inc., a Delaware corporation (“Systat”)
as set forth on Schedule 1 in the aggregate amount of $3,000,000 promissory note (the “Indebtedness”); and

 

WHEREAS,
First Choice advanced $2,000,000 (the “Loan”) on behalf of the Company to Systat and the Company has pledged the Shares
(as defined below) to First Choice as collateral to secure repayment of the Loan; and

 

WHEREAS,
the Company is a party to that certain Agreement and Plan of Merger by and among the Company, TTM Acquisition Corp., a Nevada corporation
and TTM Digital Assets & Technologies, Inc., a Nevada corporation (“TTM”) pursuant to which the Company acquired
all of the issued and outstanding capital stock of TTM (the “Transaction”);

 

WHEREAS,
in anticipation of the Transaction, the Company and First Choice desire to enter into this Agreement whereby the Company will grant First
Choice a Right (defined below) to be issued an aggregate of 5,272,4071 shares (the “Rights
Shares”) of the Company’s common stock, $0.00001 par value per share (“Common Stock”), determined
by dividing the Indebtedness by a price per share equal to $0.569 in full satisfaction and payment in full of the Indebtedness in accordance
with the terms and conditions of this Agreement;

 

WHEREAS,
upon grant of the Right to the Rights Shares to First Choice as set forth herein, the Indebtedness will be cancelled; and

 

WHEREAS,
the Shares shall be included on a to be executed Registration Rights Agreement, the form of which is attached hereto as Exhibit B.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the recitals above incorporated herein by this reference and the mutual covenants contained herein and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and First Choice
hereby agree as follows:

 

1.
GRANT OF RIGHT IN FULL SATISFACTION OF INDEBTEDNESS.

 

(a) Grant
of Right. In connection and concurrent with the effective time of the closing of the Transaction (the “Transaction Effective
Time”), in full satisfaction and in lieu of cash payment of the Indebtedness due to First Choice, on the Closing Date (as defined
below) the Company will grant First Choice a right (“Right”) to be issued the Rights Shares in accordance with the
Right to Shares Letter Agreement attached hereto as Exhibit A (the “Rights Letter Agreement”).

 

 

 

		1	Number
of Closing Shares shall not exceed 9.99% of the total issued and outstanding shares of Common Stock of the Company as of the Transaction
Effective Time.

 

     

    

    

 

(b)
Closing. The grant of the Right shall take place at a closing (the “Closing”) to be managed by the remote exchange
of documents. The date and time of the Closing shall be concurrent with the Transaction Effective Time, or at such other time or on such
other date as parties hereto may mutually agree in writing (the “Closing Date”).

 

(c)
Closing Deliveries.

 

(i) On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to First Choice:

 

(A)
the Rights Letter Agreement, duly executed by the Company; and

 

(B) the
Registration Rights Agreement, by and between the Company and First Choice in the form attached hereto as Exhibit B (the “Registration
Rights Agreement,” together with this Agreement, the “Transaction Documents”), duly executed by the Company.

 

(ii) On
or prior to the Closing Date, First Choice shall deliver or cause to be delivered to the Company, as applicable, the following:

 

(A)
the Rights Letter Agreement, duly executed by First Choice;

 

(B)
the Registration Rights Agreement, duly executed by First Choice; and

 

(B)
evidence of the cancellation of the Indebtedness.

 

“Trading
Day” refers to a day on which the principal market or exchange on which the Company’s Common Stock is then listed or
quoted for trading, including, the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, or the OTCQB Marketplace maintained by the OTC Market Group Inc. (or any successors to any of the foregoing).

 

2.
FIRST CHOICE’S REPRESENTATIONS AND WARRANTIES.

 

First
Choice represents and warrants to the Company with respect to only itself that, as of the date hereof and the Closing Date:

 

(a) Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of First Choice and shall constitute
the legal, valid and binding obligation of First Choice enforceable against First Choice in accordance with its terms, except as such
enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(b)
No Conflicts. The execution, delivery and performance by First Choice of this Agreement and the consummation by First Choice of
the transactions contemplated hereby will not (i) result in a violation of the organizational documents of First Choice or (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which First Choice is
a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities
laws) applicable to First Choice, except in the case of clauses (ii) and (i) above, for such conflicts, defaults, rights or violations
which could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of First Choice
to perform its obligations hereunder.

 

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(c) Information
and Sophistication. During the course of this transaction, the Company has furnished the First Choice with all information regarding
the Company and the Securities that the First Choice has requested or desired to know, has afforded the First Choice the opportunity
to ask questions of, and to receive answers from, duly authorized officers or other representatives of the Company concerning the terms
and conditions of this Agreement, the Securities contemplated hereunder, and the affairs of the Company and any additional information
relating to this Agreement or Securities and requested by the First Choice. In evaluating the suitability of an investment in the Company,
the First Choice hereby acknowledges and represents that:

 

(i) First
Choice has prior investment experience, including investment in securities that are not listed, are unregistered and are not traded on
any stock exchange or an automated quotation system;

 

(iii) First
Choice, either by reason of First Choice’s own business or financial experience or that of the First Choice’s professional
advisors as discussed in clause (i) above, as applicable, possesses sufficient knowledge and experience in financial and business matters
so as to be capable of assessing the merits and risks of an investment in the Securities; and

 

(iv)
has reviewed the SEC Reports (defined below).

 

(d) No
General Solicitation. The Securities were not offered or sold to First Choice by means of, and First Choice is not purchasing the
Securities in reliance on, any form of general solicitation or general advertising and in connection therewith, the First Choice (i)
did not receive or review any advertisement, article, notice or other communication published in a newspaper, magazine or similar media
or broadcast over television or radio, either closed circuit or generally available; and (ii) did not attend any seminar meeting or industry
investor conference any of whose attendees were invited by general solicitation or general advertising, and is not otherwise relying
on any communication that the First Choice has reason to know was presented at such a meeting or conference.

 

(e) Registration
and Exemption. First Choice hereby acknowledges that the Securities have not been reviewed by the SEC or any state regulatory authority,
and that the offer and issuance sale of the Securities is intended to be exempt from the registration requirements of Section 5 of the
Securities Act of 1933, as amended (the “Securities Act”) based in part upon the First Choice’s representations
and warranties contained in this Agreement. First Choice agrees it will not sell or otherwise transfer the Securities unless and until
the Securities are either registered under the Securities Act and any applicable state securities laws or the Company receives an opinion
of counsel satisfactory to the Company that an exemption from such registration is available. First Choice acknowledges that no federal
or state agency has made any determination as to the fairness of the offering of the Securities, or any recommendation or endorsement
of the Securities. First Choice acknowledges that at such time, if ever, as the Securities are registered under the Securities Act, sales
of the Securities will remain subject to state securities laws.

 

(f) Legend.
First Choice consents to the placement of a legend on any certificate or other document evidencing the Securities that such Securities
have not been registered under the Securities Act or any state securities or other “blue sky” laws, and setting forth or
referring to the restrictions on transferability and sale thereof contained in this Agreement. First Choice is aware that the Company
will make a notation in its appropriate records with respect to the restrictions on the transferability of the Securities.

 

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(g) Accredited
Investor Status. First Choice is an accredited investor as defined in Rule 501 or Regulation D under the Securities Act.

 

3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

  

The
Company represents and warrants to First Choice that, as of the date hereof and the Closing Date:

 

(a)
Organization and Qualification. The Company and each of its subsidiaries is an entity duly incorporated or otherwise organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any
subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents. Each of the Company and its subsidiaries is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could
not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction
Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in
any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or qualification.

 

(b) Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement
or any of the Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery
of this Agreement by the Company, and the consummation by the Company of the transactions contemplated hereby (including, without limitation,
the issuance of the shares of Common Stock) have been duly authorized by the Company’s board of directors and no further filing,
consent or authorization is required by the Company, its subsidiaries, their respective boards of directors or their stockholders or
other governing body. This Agreement and each other Transaction Document has been duly executed and delivered by the Company, and constitutes
the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as
rights to indemnification and to contribution may be limited by federal or state securities law.

 

(c) Issuance
of Securities. The issuance of the Securities is duly authorized and the Securities, when issued, shall be validly issued, fully
paid and non-assessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights
of first refusal, encumbrances, security interests and other encumbrances (collectively “Liens”) with respect to the
issuance thereof.

 

(d)
No Conflicts. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the
Securities) will not (i) result in a violation of the Articles of Incorporation (as defined below), Bylaws (as defined below) or other
organizational documents of the Company or any of its subsidiaries, or any capital stock or other securities of the Company or any of
its subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a
default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations applicable
to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected.

 

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(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to,
or make any filing or registration with, any court or other U.S. federal, state, local or other governmental authority or other Person
in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than such filings as may
be required to be made under applicable federal and state securities laws.

 

(f) SEC
Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required to be
filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve
months preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed
any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading. The Company is not and has not
been subject to Rule 144(i). The financial statements of the Company included in the SEC Reports comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent
basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material
respects the financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(g) Holding
Period and Tacking. The Company represents, warrants and agrees that for the purposes of Rule 144 (“Rule 144”)
of the Securities Act, the holding period of the Securities may be tacked on the holding period of the Indebtedness. The Company agrees
not to take a position contrary to this Section 3(f) in any document, statement, setting, or situation. The Company acknowledges and
understands that the representations and agreements of the Company in this Section 3(f) are a material inducement to First Choice’s
decision to consummate the transactions contemplated herein.

 

(h) Private
Placement. Assuming the accuracy of the representations and warranties of First Choice set forth in Section 3, no registration under
the Securities Act is required for the offer and sale of the Securities by the Company to First Choice as contemplated by this Agreement.

 

4.
COVENANTS.

 

(a)
Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may
designate by notice to each holder of Securities), a register for the Securities in which the Company shall record (x) the name and address
of the person in whose name the shares of Common Stock have been issued (including the name and address of each transferee) and (y) the
aggregate number of shares of Common Stock held by such Person. The Company shall keep the register open and available at all times during
business hours for inspection by any of First Choice’s representative or its legal representatives.

 

    5

    

    

 

(b) Legends.
The Securities to be issued under this Agreement are being issued in accordance with an exemption from registration pursuant to Section
4(a)(2) of the Securities Act, and certificates and any other instruments evidencing the Securities should bear the following restrictive
legend:

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER INDEBTEDNESS SECURED
BY SUCH SECURITIES.

 

(c) Rule
144; Current Information. For so long as First Choice owns the Securities, the Company will timely file on the applicable deadline
all reports required to be filed with the U.S. Securities and Exchange Commission (the “SEC”) pursuant to Sections
13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will take all reasonable
action under its control to ensure that adequate current public information with respect to the Company, as required in accordance with
Rule 144 of the Securities Act is publicly available, and will not terminate its status as an issuer required to file reports under the
Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such termination.

 

(d) Registration
Rights. First Choice shall be entitled to the registration rights described in the Registration Rights Agreement and the Company
agrees to register the Securities in accordance with the terms and conditions of the Registration Rights Agreement.

 

    6

    

    

 

5.
MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict
of law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of Delaware. The Company hereby irrevocably submits to the exclusive jurisdiction of the state
and federal courts sitting in the State of Delaware, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for
such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing
contained herein shall be deemed or operate to preclude First Choice from bringing suit or taking other legal action against the Company
in any other jurisdiction to collect on the Company’s obligations to First Choice or to enforce a judgment or other court ruling
in favor of First Choice. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR
THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b) Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature
is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature
page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such signature page were an original thereof.

 

(c) Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine,
neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words
of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in
which they are found.

 

(d) Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest
extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity
of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change,
the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the
provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical
realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations
to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible
to that of the prohibited, invalid or unenforceable provision(s).

 

(e) Entire
Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between First Choice and the Company
and contains the entire understanding of the parties solely with respect to the matters covered herein except as set forth in the other
Transaction Documents. For clarification purposes, the Recitals are part of this Agreement and the Transaction Documents remains in full
force and effect. No provision of this Agreement may be amended or waived other than by an instrument in writing signed by the Company
and First Choice.

 

    7

    

    

 

(f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement
must be in writing and will be deemed to have been given and delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or electronic mail; or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified,
in each case, properly addressed to the party to receive the same. As used herein “Business Day” means any day other
than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain closed.
The addresses, facsimile numbers and e-mail addresses for such communications shall be:

 

If
to the Company:

 

Sysorex,
Inc.

13880
Dulles Corner Lane, Suite 175

Herndon,
VA 20171

Email:
Zaman.Khan@sysorexinc.com

Attn:
Zaman Khan, CEO

 

If to First Choice:

 

First
Choice International Company, Inc.

21399 Marina Cove Circle, Unit M14

Aventura, FL 33180

Email:
1stchoiceintlco@gmail.com

Attn: Mark H. Peikin, CEO

 

or
to such other address, e-mail address and/or facsimile number and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine or e-mail containing the time, date, recipient facsimile number, if applicable, and, with respect
to each facsimile transmission, an image of the first page of such transmission or (C) provided by an overnight courier service shall
be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause
(i), (ii) or (iii) above, respectively.

 

(g) Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

 

(h) No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i) Survival.
The representations, warranties, agreements and covenants contained herein shall survive the Closing.

 

(j) Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the
generality or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common
Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock splits, stock
dividends, stock combinations, recapitalizations or other similar transactions that occur with respect to the Common Stock after the
date of this Agreement through the Closing Date.

 

[SIGNATURE
PAGE FOLLOWS]

 

    8

    

    

 

IN
WITNESS WHEREOF, First Choice and the Company have caused their respective signature page to this Agreement to be duly executed as
of the date first written above.

 

	 	FIRST CHOICE INTERNATIONAL COMPANY, INC.
	 	 
	 	By: 	/s/
    Mark H. Peikin
	 	Name: 	Mark H. Peikin
	 	Title: 	Chief Executive Officer
	 	 
	 	COMPANY:
	 	 
	 	SYSOREX, INC.
	 	 
	 	By:	/s/ Zaman
    Khan
	 	Name: 	Zaman Khan
	 	Title: 	Chief Executive Officer

 

[Signature
Page to Securities Settlement Agreement]

 

    9

    

    

 

SCHEDULE
1

 

	
Indebtedness
	 	Outstanding Balance as of March 31, 2021
	Secured Promissory Note, originally issued on June 30, 2020 (as amended from time-to-time), as assigned to First Choice from Systat on March 19, 2021	 	$3,000,000 pledged as collateral for repayment of the Advance.

 

     

    

    

 

EXHIBIT
A

 

FORM
OF RIGHT TO SHARES LETTER AGREEMENT

 

     

    

    

 

EXHIBIT
B

 

FORM
OF REGISTRATION RIGHTS AGREEMENT

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