Document:

Exhibit 10.7

Exhibit 10.7

 

EXECUTION COPY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMPLOYMENT AND NON-COMPETITION AGREEMENT

 

 

 

 

SYSOREX GROUP

 

 

 

 

NADIR ALI

 

 

 

 

 

 

Dated July l, 2010

 

 

 

 

 

EMPLOYMENT AND NON-COMPETITION AGREEMENT

 

This Amended and Restated Employment and Non-Competition Agreement (this "Agreement"), dated as of July 1, 2010 (the "Effective Date") is entered into between Sysorex Group., consisting of (Sysorex Federal Inc., Sysorex Govt. Systems, Inc., & Sysorex Consulting Inc.) a Delaware and California a Delaware corporation ("Employer"), and Nadir Ali ("Employee") as an amendment and restatement in the entirety of that certain Employment and Non-Competition Agreement, dated as of August 1, 2002, between Employer and Employee (the "Prior Agreement");

 

W I T N E S S E T H:

 

WHEREAS, Employer desires to continue to employ Employee upon the terms and conditions set forth herein; and

 

WHEREAS, Employee is willing to continue to provide services to Employer upon the terms and conditions set forth herein;

 

A G R E E M E N T S:

 

NOW, THEREFORE, for and in consideration of the foregoing premises and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, Employer and Employee hereby agree as follows:

 

1.             EMPLOYMENT

 

Employer will employ Employee and Employee will accept employment by Employer as a President reporting to the Chairman & CEO of Employer. Employee will have the authority, subject to Employer's Certificate of Incorporation and Bylaws, as may be granted from time to time by the President or the Board of Directors of Employer. Employee will perform such duties as may be assigned from time to time by the Board of Directors or President of Employer, which relate to the business of Employer, its subsidiaries or its parent corporation.

 

2.             ATTENTION AND EFFORT

 

Employee will devote all of his entire productive time, ability, attention and effort to Employer's business and will skillfully serve its interests during the term of this Agreement. Notwithstanding anything to the contrary in the preceding sentence, Employee may devote reasonable periods of time outside of normal business hours to participation in charitable, civic, community, writing, publishing and/or private investment activities; provided, however, that such activities are permissible only if: (x) any such activity would not otherwise be prohibited by Section 9 hereof, (y) any such activity does not interfere with Employee's duties under this Agreement, and (z) Employee continues to perform his duties (and no outside activities) at Employer's facilities for an average of 40 hours each week during normal business hours.

 

 

 

 

 

3.             TERM

 

Employee is an at will employee whose employment can be terminated by either party at any time for any reason with or without advance notice.

 

4.             COMPENSATION

 

During the term of this Agreement, Employer agrees to pay or cause to be paid to Employee, and Employee agrees to accept in exchange for the services rendered hereunder by him, the following compensation which shall consist of an annual salary of Two Hundred Forty Thousand dollars ($240,000) before all customary payroll deductions. Such annual salary shall be paid in substantially equal installments and at the same interVals as other officers of Employer are paid (but in no event less frequently than once per month). Employee will also be entitled to customary benefits, housing allowance, stock options and management bonus provided the company meets its financial goals, sales and profit targets as provided in quarterly projections.

 

5.             BENEFITS

 

During the term of this Agreement, Employee will be entitled to participate, subject to and in accordance with applicable eligibility requirements and other terms and conditions thereof, in the fringe benefit programs as per Company HR policies.

 

6.             STOCK OPTION

 

Nothing in this Agreement shall affect or modify in any way the terms and conditions of that certain Notice of Option Grant, dated as of August I, 2002 by and between Sysorex Consulting, Inc. and Employee.

 

7.             TERMINATION

 

Employment of Employee pursuant to this Agreement may be terminated as follows, but in any case, the provisions of Section 8 hereof shall survive the termination of this Agreement and the termination of Employee's employment hereunder:

 

7.1     By Employer

With or without Cause (as defined below in Section 8.6), Employer may terminate the employment of Employee at any time during the term of employment upon giving Notice of Termination (as defined below).

 

7.2     By Employee

For any reason or for no reason, Employee may terminate his employment at any time, for any reason, upon giving Notice of Termination.

 

 

 

 

 

7.3     Automatic Termination

 

This Agreement and Employee's employment hereunder shall terminate automatically upon the death or total disability of Employee. The term "total disability" as used herein shall mean Employee's inability to perform the duties set forth in Section I hereof for a period or periods of 60 consecutive calendar days in any 12-month period as a result of physical or mental illness, loss of legal capacity or any other cause beyond Employee's control, unless Employee is granted a leave of absence by the Board of Directors of Employer. Employee and Employer hereby acknowledge that Employee's ability to perform the duties specified in Section I hereof is of the essence of this Agreement. Termination hereunder shall be deemed to be effective (a) at the end of the calendar month in which Employee's death occurs or (b) at the end of the calendar month in which Employee becomes totally disabled (as defined above).

 

7.4     Notice

 

The term "Notice of Termination" shall mean written notice of termination of Employee's employment. The effective date of the termination of Employee's employment hereunder shall be the date on which the Notice of Termination is delivered to the other party to this Agreement.

 

8.             TERMINATION PAYMENTS

 

In the event of termination of the employment of Employee, all compensation and benefits set forth in this Agreement shall terminate except as specifically provided in this Section 8.

 

8.1     Termination Resulting in Termination Payments

 

If Employer terminates Employee's employment without Cause, Employee shall be entitled to receive (a) termination payments equal to his base salary at the then current rate and levels for six (12) months from the date of termination, and (b) any unpaid annual salary which has accmed for services already performed as of the date termination of Employee's employment becomes effective. If Employee is terminated by Employer for Cause, Employee shall not be entitled to receive any of the foregoing benefits, other than those set forth in clause (b) above.

 

8.2     Termination Not Resulting In Termination Payments

 

In the case of the termination of Employee's employment with the Employer by either party under any circumstances other than those specified in Section 8.1, Employee shall not be entitled to any payments hereunder, other than those set forth in clause (b) of Section 8.1 hereof.

 

8.3     Termination Because of Death or Total Disability

 

In the event of a termination of Employee's employment because of his death or total disability, Employee shall not be entitled to any payments hereunder, other than those set forth in clause (b) of Section 8.1 hereof

 

 

 

 

 

8.4     Payment Schedule

 

All termination payments under this Section 8 shall be made to Employee at the same interval as payments of salary were made to Employee immediately prior to termination, provided, however, that if Employer defaults in its valid obligation to make such a payment, and fails to cure such default within thirty (30) days after written notice thereof from the Employee, all remaining termination payments shall accelerate and shall thereupon become due and payable in full.

 

8.5     Cause

 

Wherever reference is made in this Agreement to termination being with or without Cause, "Cause" shall include, without limitation, the occurrence of one or more of the following events:

 

(a)     Failure or refusal to carry out the lawful duties of Employee described in Section 1 hereof or any reasonable directions of the Board of Directors or President of Employer made in good faith which failure or refusal, if curable, is not cured within thirty (30) days after written notice thereof from the Employer;

 

(b)     The commission by Employee of any act of gross negligence, fraud or dishonesty causing material harm to the Employer, Sysorex, or any entities in which Sysorex owns a majority of the voting securities (collectively, the "Affiliates");

 

(c)     The procurement by Employee of personal gain or profit at the expense of the Employer or from any transaction in which the. Employee has an interest which is adverse to the interest of the Employer or any Affiliate, unless Employee shall have obtained the prior consent of the President or Board of Directors of the Employer;

 

(d)     Unauthorized use or disclosure of the confidential information or trade secrets of the Employer, except as may be required by law (in which event Employee shall promptly provide the Employer with written notice of such legal requirement which shall be advance written notice where practicable);

 

(e)     A material breach by Employee of this Agreement, which breach is not cured within thirty (30) days after written notice from the Employer;

 

(f)     Conviction of, or a plea of "guilty" or "no contest" to, a felony under the laws of the United States or any state thereof;

 

(g)     Acts of violence directed at any present, fanner or prospective employee, independent contractor, vendor, customer or business partner of the Employer;

 

 

 

 

 

(h)      The sale, possession or use of illegal drugs on the premises of the Employer or a client of the Employer;

 

(i)     Misappropriation of the assets of the Employer or other acts of dishonesty related to the business of the Employer and resulting in a material adverse effect on the Employer; or

 

(j)     Employee, on behalf of himself or the Employer, violates or orders the violation of any laws or governmental regulations applicable to the business of the Employer, resulting in a material adverse effect on the Employer.

 

In order to constitute "Cause" the termination of Employee's employment must occur within SO days of the date that any member of the Board of .Directors or President of the Employer has actual knowledge of the existence one of the events described in Sections 8.6 (a) or (e) or within 20 days of the date that any member of the Board of Directors or the President of Employer has actual acknowledge of the existence of one of the other events which may give rise to "Cause" here under. If Employer delivers written notice of one of the grounds for Cause described in Section 8.6(a) or (e) and the Employee effects a cure of such grounds for Cause then Employee's employment shall continue here under in accordance with the terms and conditions of this Agreement. If Employer desires to terminate Employee's employment as a result of subsequent grounds for Cause under Sections 8.6 (a) or (e) (regardless of whether or not such grounds occur under the same subsection of this Section 8.6 as a previous grounds for Cause), then the Employer shall be required to tender a new written notice and afford the Employee another cure opportunity pursuant to this Section 8.6.

 

9.             NONCOMPETITION AND NONSOLICITATION

 

9.1     Applicability

 

Except as provided in the final sentence of this Section 9.1, this Section 9 shall survive the termination of Employee's employment with Employer or the expiration of the term of this Agreement. ''Covenant Term" as used in this Section 9 shall mean the period of time beginning on the Effective Date and ending on the later of: (a) the date on which Employee's employment or consulting relationship with Employer terminates; and (b) August 1, 2004. If Employer terminates Employee's employment without Cause, then effective upon the date of such termination, Employee shall be released from the non-competition obligation contained in Section 9.2, but shall continue to be subject to and restricted by the non-solicitation provision contained in Section 9.5 and by the remaining provisions of this Section 9, to the extent that they may relate to the interpretation and/or enforcement of Section 9.5.

 

9.2     Scope of Competition

 

Employee agrees that he will not, directly or indirectly, during the Covenant Term be employed by, consult with or otherwise perform services for, own, manage, operate, join, control or participate in the ownership, management, operation or control of or be connected with, in any manner, any Competitor. A "Competitor" shall mean any entity which, directly or indirectly, competes with Employer or an Affiliate or produces, markets, distributes or otherwise derives benefit from the production, marketing or distribution of products or services which compete with products then produced or services then being provided or marketed, by Employer or an Affiliate or the feasibility for production of which Employer or an Affiliate is then actually studying to the knowledge of Employee, or which is preparing to market or is developing products or services that will be in competition with the products or services then produced or being studied or developed by Employer or an Affiliate to the knowledge of Employee, in each case within the geographical area described in Section 9.3 hereof, unless released from such obligation in writing by Employer's Board of Directors. Employee sha11 be deemed to be related to or connected with a Competitor if such Competitor is (a) a partnership in which he is a general or limited partner or employee, (b) a corporation or association of which he is a shareholder, officer, employee or director, or (c)a partnership, corporation or association of which he is a member, consultant or agent; provided, however, that nothing herein shall prevent the purchase or ownership by Employee of shares which constitute less than two percent of the outstanding equity securities of a publicly held corporation, if Employee had no other relationship with such corporation.

 

 

 

 

 

9.3     Geographical Scope

 

The geographical areas in which the restrictions provided for in this Section 9 apply include all cities, counties and states of the United States, and all other countries, in which during the Covenant Term, Employee has provided services to or on behalf of the Employer or any of its Affiliates. The agreement not to compete in each such geographic subdivision is a separate and severable agreement from all such other agreements. Employee acknowledges that the scope and period of restrictions and the geographical area to which the restrictions imposed in this Section apply are fair and reasonable and are reasonably required for the protection of the Employer.

 

9.4     Severability

 

The parties intend that the covenants contained in this Section 9 shall be construed as a series of separate covenants, one for each county of each state of the United States of America, and each nation. Except for geographic coverage, each such separate covenant shall be deemed identical in terms of the covenants contained in this Agreement. If, in m1y judicial proceeding, a court shall refuse to enforce any of the separate covenants (or any part thereof) deemed included in this Section 9, then such unenforceable covenant (or such part) shall be deemed eliminated from this Agreement for the purpose of those proceedings to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced. In the event that the provisions of this Section 9 should ever be deemed to exceed the time or geographic limitations, or the scope of these covenants, as permitted by applicable law, then such provisions shall be reformed to the maximum time or geographic limitations, as the case may be, permitted by applicable laws.

 

 

 

 

 

9.5     Scope of Non-solicitation

 

Employee shall not during the Covenant Term directly or indirectly solicit, influence or entice, or attempt to solicit, influence or entice, any employee or consultant of Employer or an Affiliate to cease his or her relationship with Employer or such Affiliate or solicit, influence, entice or in any way divert any customer, distributor, partner, joint venturer or supplier of Employer or an Affiliate to do business or in any way become associated with any Competitor.

 

9.6     Equitable Relief

 

Employee acknowledges that the provisions of this Section 9 are essential to Employer, that Employer would not enter into this Agreement if it did not include this Section 9 and that damages sustained by Employer as a result of a breach of this Section 9 cannot be adequately remedied by damages, and Employee agrees that Employer, notwithstanding any other provision of this Agreement, including, without limitation, Section 16 hereof, and in addition to any other remedy it may have under this Agreement or at law, shall be entitled to injunctive and other equitable relief to prevent or curtail any breach of any provision of this Agreement, including, without limitation, this Section 9.

 

9.7     Effect of Violation

 

Employee and Employer acknowledge and agree that additional consideration has been given for Employee entering into this Section 9, such additional consideration including, without limitation, certain provisions for termination payments pursuant to Section 8 of this Agreement Violation by Employee of this Section 9 shall relieve Employer of any obligation it may have to make such termination payments, but shall not relieve Employee of his obligations, as required hereunder, not to compete.

 

10.           CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT

 

 

10.1     Assignment of lntellectual Property

 

All concepts, designs, machines, devices, uses, processes, technology, trade secrets, works of authorship, customer lists, plans, embodiments, inventions, improvements or related work product (collectively "Intellectual Property") which Employee develops, conceives or first reduces to practice during the term of his employment hereunder , whether working alone or with others, shall be the sole and exclusive property of Employer, together with any and all Intellectual Property rights, including, without limitation, patent or copyright rights, related thereto, and Employee hereby assigns to Employer all of such Intellectual Property. "Intellectual Property" shall include only such concepts, designs, machines, devices, uses, processes, technology, trade secrets, customer lists, plans, embodiments, inventions, improvements and work product which (a) relate to Employee's performance of services under this Agreement, to Employer's field of business or to Employer's actual or demonstrably anticipated research or development, whether or not developed, conceived or first reduced to practice during normal business hours or with the use of any equipment, supplies, facilities or trade secret information or other resource of Employer or (b) are developed in whole or in part on Employer's time or developed using Employer's equipment, supplies, facilities or trade secret information, or other resources of Employer, whether or not the work product relates to Employer's field of business or Employer's actual or demonstrably anticipated research.

 

 

 

 

 

10.2     Disclosure and Protection of Inventions

 

Employee shall disclose in writing all concepts, designs, processes, technology, plans, embodiments, inventions or improvements constituting Intellectual Property to Employer promptly after the development thereof. At Employer's request and at Employer's expense, Employee will assist Employer or its designee in efforts to protect all rights relating to such Intellectual Property. Such assistance may include, without limitation, the following: (a) making application in the United States and in foreign countries for a patent or copyright on any work products specified by Employer; (b) executing documents of assignment to Employer or its designee of all of Employee's right, title and interest in and to any work product and related intellectual property rights; and (c) taking such additional action (including, without limitation, the execution and delivery of documents) to perfect, evidence or vest in Employer or its designee all right, title and interest in and to any Intellectual Property and any rights related thereto.

 

10.3     Nondisclosure; Return of Materials

 

Employee understands, acknowledges, and agrees that during the course of his employment and the term of any consulting relationship with Employer, he will be exposed to or has access to Employer's Trade Secrets and Confidential Information. As used in this Section I 0.3, "Trade Secrets" has the same definition as "trade secret" contained in Virginia Code §59.1- 336 (200 I) and any successor provision thereof. As used in this Section I 0.3, "Confidential information" means any information that is not a Trade Secret but is (a) any confidential or other proprietary information, whether of a technical, business or other nature that is of value to the owner of such information and is treated as confidential (including, without limitation, information about employees, customers, marketing strategies, services, business or technical plans and proposals, in any form); (b) any other information identified by a Employer as "Confidential Information"; or (c) any other information relating to Employer that is or should be reasonably understood to be confidential or proprietary. During the term of his employment by Employer and thereafter for a period ending on the date which is five (5) years following the date of termination of such employment, Employee shall not disclose any Confidential Information to any third party, except as stated in this Section 10.3. Further, at no time shall Employee disclose any Trade Secret to a third party in contravention of the Uniform Trade Secrets Act, as adopted by the Commonwealth of Virginia at Virginia Code §59.1-366, et seg. (2001). Employee may only disclose Confidential Information to a third party (a) if required to be disclosed pursuant to law, provided the Employee uses reasonable efforts to give Employer reasonable notice of such required disclosure, and cooperates in any attempts by Employer to obtain a protective order or other similar protection against disclosure of the Confidential Information; or (b) if disclosed with the prior written consent of Employer. Employee may disclose relevant aspects of Confidential Information or Trade Secrets to other of Employer's officers, employees, and consultants on a need-to-know basis, as determined by Employee in his reasonable judgment. In the event of the termination of his employment with Employer or the expiration of this Agreement, Employee, within fifteen (15) days of such termination or expiration, shall return to Employer all documents, data and other materials of whatever nature related to Employer's Trade Secrets, Confidential Information, and Intellectual Property, including, without limitation, drawings, specifications, research, reports, embodiments, software, and manuals, then in Employee's direct or indirect possession. Employee shall not retain or cause or allow any third party to retain photocopies or other reproductions of the foregoing. Notwithstanding anything to the contrary in this Section 10.3, information publicly known that is generally employed by the trade at or after the time that Employee first learns of such information (other than as a result of Employee's breach of this Agreement), shall not be deemed "Confidential Information".

 

 

 

 

 

11.           REPRESENTATIONS AND WARRANTIES

 

In order to induce Employer to enter into this Agreement, Employee represents and warrants to Employer as follows:

 

11.1     No Violation of Other Agreements

 

Neither the execution nor the performance of this Agreement by Employee will violate or conflict in any way with any other agreement by which Employee may be bound, or with any other duties imposed upon Employee by corporate or other statutory or common law.

 

11.2     Patents, Etc.

 

Employee has prepared and attached hereto as Schedule 11.2 a list of all inventions, patent applications and patents made or conceived by Employee prior to the date hereof, which are subject to prior agreement or which Employee desires to exclude from this Agreement, or, if no such list is attached, Employee hereby represents and warrants to Employer that there are no such inventions, patent applications or patents.

 

12.           NOTICE AND CURE OF BREACH

 

Whenever a breach of this Agreement by either party is relied upon as justification for any action taken by the other party pursuant to any provision of this Agreement, other than pursuant to the definition of "Cause" set forth in Section 8.6 hereof, before such action is taken, the party asserting the breach of this Agreement shall give the other party at least ten days' prior written notice of the existence and the nature of such breach before taking further action hereunder and shall give the party purportedly in breach of this Agreement the opportunity to correct such breach during the ten-day period.

 

13.           FORM OF NOTICE

 

Except as may be otherwise provided in this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall be conclusively deemed to have been duly given to a party (a) when hand delivered to that party; (b) when received when sent by e-mail or facsimile (provided, however, that notices given by e-mail or facsimile shall not be effective unless either (i) a duplicate copy of such e-mail or facsimile notice is promptly given by one of the other methods described in this Section 13 or (ii) the receiving Party delivers a written confirmation of receipt for such notice either by e-mail, facsimile or any other method described in this Section 13; (c) three (3) business days after deposit in the U.S. mail with first class, registered or certified mail postage prepaid, return­ receipt requested and addressed to the other Party as set forth below; or (d) the next business day after deposit with a national overnight delivery service, postage prepaid, addressed to that party as set forth below with next-business-day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider.

 

 

 

 

 

	
TO EMPLOYER:
	
Sysorex Group

	 	
c/o Sysorex Consulting, Inc.

	 	
405 Clyde Ave

	 	
Mountain View, CA 94043

	 	
Facsimile: (650) 967-9327

	 	
Attention: Subhash Sachdeva

	 	
E-mail: ssachdev@sysorex.com

 

A party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 13 by giving the other party written notice of the new address in the manner set forth above.

 

14.           ASSIGNMENT

 

This Agreement is personal to Employee and shall not be assignable by Employee. Employer may assign its rights hereunder to (a) any corporation resulting from any merger, consolidation or other reorganization to which Employer is a party or (b) any corporation, partnership, association or other person to which Employer may transfer all or substantially all of the assets and business of Employer existing at such time. All of the terms and provisions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.

 

15.           WAIVERS

 

No delay or failure by any party hereto in exercising, protecting or enforcing any of its rights, titles, interests or remedies hereunder, and no course of dealing or performance with respect thereto, shall constitute a waiver thereof. The express waiver by a party hereto of any right, title, interest or remedy in a particular instance or circumstance shall not constitute a waiver thereof in any other instance or circumstance. All rights and remedies shall be cumulative and not exclusive of any other rights or remedies.

 

16.           ARBITRATION

 

Subject to the provisions of Section 9.6 hereof, any controversies or claims arising out of or relating to this Agreement shall be fully and finally settled by arbitration held in Fairfax County, Virginia in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association then in effect (the "AAA Rules"), conducted by one arbitrator either mutually agreed upon by Employer and Employee or chosen in accordance with the AAA Rules, except that the parties thereto shall have any right to discovery as would be permitted by the Federal Rules of Civil Procedure for a period of 90 days following the commencement of such arbitration and the arbitrator thereof shall resolve any dispute which arises in connection with such discovery. The prevailing party shall be entitled to costs, expenses and reasonable attorneys' fees, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding anything to the contrary in this Section 16, Employer may seek provisional injunctive relief from a court of competent jurisdiction in the Commonwealth of Virginia in aid of the arbitration, to prevent any award from being rendered ineffectual or to protect its Trade Secrets and/or Confidential Information. Seeking such relief shall not be a waiver of Employer's right to compel arbitration.

 

 

 

 

 

17.           AMENDMENTS IN WRITING

 

No amendment, modification, waiver, termination or discharge of any provision of this Agreement, nor consent to any departure therefrom by either party hereto, shall in any event be effective unless the same shall be in writing, specifically identifying this Agreement and the provision intended to be amended, modified, waived, terminated or discharged and signed by Employer and Employee, and each such amendment, modification, waiver, termination or discharge shall be effective only in the specific instance and for the specific purpose for which given. No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by Employer and Employee.

 

18.           APPLICABLE LAW

 

This Agreement shall in all respects, including all matters of construction, validity and performance, be governed by, and construed and enforced in accordance with, the laws of the Commonwealth of Virginia without regard to any rules governing conflicts of laws.

 

19.           HEADINGS

 

All headings used herein are for convenience only and shall not in any way affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

20.           COUNTERPARTS

 

This Agreement, and any amendment or modification entered into pursuant to Section 17 hereof, may be executed in any number of counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute one and the same instrument.

 

21.           ENTIRE AGREEMENT

 

This Agreement on and as of the date hereof constitutes the entire agreement between Employer and Employee with respect to the subject matter hereof and all prior or contemporaneous oral or written communications, understandings or agreements (including without limitation the Prior Agreement) between Employer and Employee with respect to such subject matter are hereby superseded and nullified in their entireties.

 

 

 

 

 

22.           SEVERABILITY

 

If, in any judicial proceeding, a court shall refuse to enforce any of the separate covenants deemed included in this Agreement, then such unenforceable covenant shall be deemed eliminated from this Agreement for the purpose of those proceedings to the extent necessary to permit the remaining separate covenants to be enforced.

 

IN WITNESS. WHEREOF, the parties have executed and entered into this Agreement on the date set forth above.

 

	 	EMPLOYEE:	 
	 	 	 
	 	 	 
	 	
/s/ Nadir Ali
	 
	 	 	 
	 	 	 
	 	
EMPLOYER:
	 
	 	 	 
	 	
SYSOREX GROUP
	 
	 	 	 
	 	 	 	 
	 	 	  	 
	 	By: 	/s/ Abdus Salam Qureishi	 
	 	 	Its	 CEO	 
	 	 	 	 

 

Exhibit 10.7(b)

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”) is entered into September 1, 2011 (the “Effective Date”) by and among the Sysorex Group, consisting of Sysorex Federal Inc., Sysorex Government Services, Inc., and Sysorex Consulting Inc., which are Delaware, California, and Delaware corporations, respectively (together, “Assignor”), Sysorex Global Holdings Corp., a Nevada corporation (“Assignee”), and Nadir Ali, an individual (“Employee”).

 

WITNESSETH:

 

WHEREAS, Assignor and Employee entered into that certain Employment Agreement on July 1, 2010 (“Employment Agreement”); 

 

WHEREAS, pursuant to an Acquisition and Share Exchange Agreement Assignee acquired the business and operations of Assignor on July 29, 2011;

 

WHEREAS, pursuant to Section 14 of the Employment Agreement, Assignor is permitted to assign its interests thereunder to any corporation resulting from any merger, consolidation, or reorganization to which Assignor is a party, or to which Assignor had transferred all or substantially all of its assets and business; and

 

WHEREAS, Assignor wishes to assign substantially all rights and obligations it has under the Employment Agreement, and to transfer the Employment Agreement to Assignee, and Assignee wishes to assume the Employment Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties do hereby covenant and agree as follows and take the following actions:

 

1.     Assignor does hereby assign, transfer, set over and deliver the Employment Agreement, together with all rights and obligations it has under the Employment Agreement, to the Assignee.

 

2.     Assignee hereby accepts said assignment of the Employment Agreement and assumes all rights and obligations under the Employment Agreement, in each case, as of the Effective Date.

 

3.     Employee hereby assents to this Assignment. 

 

4.     This Assignment shall be (a) binding upon, and inure to the benefit of, the parties to this Assignment and their respective heirs, legal representatives, successors and assigns, and (b) construed in accordance with the laws of the State of California, without regard to the application of choice of law principles. If any one or more of the provisions of this Assignment is held to be invalid, illegal or unenforceable, in whole or in part, or in any respect, then such provision or provisions only will be deemed to be null and void and of no force or effect and will not affect any other provision of this Assignment, and the remaining provisions of this Assignment will remain operative and in full force and effect and will in no way be affected, prejudiced or disturbed.

 

 

 

 

 

 

5.     This Assignment may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Further, a facsimile signature is acceptable and shall be treated as an original.

 

 

 

[Signature page follows]

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Assignment and Assumption Agreement as the date first above written.

 

	
 
	 	
ASSIGNOR:
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
SYSOREX GROUP
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
BY:
	
SYSOREX FEDERAL INC. 
	
 

	
 
	 	
 
	
 
	
 

	 	 	 	 	 
	
 
	 	
 
	
 
	
 

	
 
	 	
By:
	
/s/ Nadir Ali 
	
 

	
 
	 	
Name: 
	
Nadir Ali 
	
 

	
 
	 	
Title: 
	
Chief Executive Officer
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
BY: 
	
SYSOREX GOVERNMENT SERVICES, INC.
	
 

	
 
	 	
 
	
 
	
 

	 	 	 	 	 
	
 
	 	
 
	
 
	
 

	
 
	 	
By:
	
/s/ Wendy Loundermon      
	
 

	
 
	 	
Name:
	
Wendy Loundermon 
	
 

	
 
	 	
Title:
	
President
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
BY:
	
SYSOREX CONSULTING, INC.
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	 	 	 	 	 
	
 
	 	
By:
	
/s/ Abdus Salam Qureishi
	
 

	
 
	 	
Name: 
	
Abdus Salam Qureishi 
	
 

	
 
	 	
Title:
	
President
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
ASSIGNEE:
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
SYSOREX GLOBAL HOLDINGS CORP.
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
By: 
	
/s/ Nadir Ali
	
 

	
 
	 	
Name:
	
Nadir Ali 
	
 

	
 
	 	
Title:
	
Chief Executive Officer
	
 

	
 
	 	
 
	
 
	
 

	
Agreed to and Acknowledged by:
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
 
	 	
 
	
 
	
 

	
/s/ Nadir Ali
	 	
 
	
 
	
 

	
Nadir AliExhibit 10.8

Exhibit 10.8

 

SYSOREX GLOBAL HOLDINGS CORP

3375 SCOTT BLVD, SUITE 440

SANTA CLARA, CALIFORNIA 95054

 

 

Mr. Abdulaziz Al-Salloum

Duroob Technology

P.O. Box 18560, Riyadh, 11425

Kingdom of Saudi Arabia

 

As of March 31, 2013

 

Re: Equity Exchange

 

Gentlemen:

 

Reference is made to those certain [services and loans?] (the “Obligations”) in the aggregate amount of $1,774,865 provided over time by the undersigned (“Duroob”) to Sysorex Arabia LLC, a Saudi Arabian limited liability company (“Arabia”) and wholly owned subsidiary of Sysorex Global Holdings Corp., a Nevada corporation (the Company”). The parties acknowledge that the Obligations remain outstanding as of the date hereof.

 

1.             This agreement (the “Agreement”) will serve to confirm our agreement that the Company shall issue to Duroob 887,433 shares (the “Shares”) of common stock, par value $.001 per share (the “Common Stock”), of the Company, in consideration for full satisfaction and release of the Obligations. The issuance of the Shares shall be effective as of the date of this Agreement and the Company shall cause to be delivered to Duroob a stock certificate evidencing the Shares promptly after the execution of this Agreement. 

 

2. Representations & Warranties:

 

2.1 Authority; Enforceability. Each person executing this Agreement hereby represents and warrants that he is a duly authorized and appointed representative of the party on whose behalf he is executing the Agreement, that he has carefully read this Agreement, and that he has the full right, power, and authority to execute this Agreement. In addition, each party represents and warrants to the other parties that: (A) the execution and delivery of this Agreement by such party and such party’s performance of its obligations hereunder (i) are within such party’s corporate or other entity powers; (ii) require no action by or with respect to, or filing with, any governmental body, court, agency or official; and (iii) have been duly authorized by all necessary corporate or other entity action; (iv) do not contravene or constitute a default under any provision of, (a) its governing documents, (b) any law, rule or regulation applicable to such party, or (c) any agreement, judgment, injunction, order, decree, or other instrument binding upon the party or to which such party’s assets are subject; and (B) this Agreement constitutes the legal, valid, and binding obligation of such party, enforceable against such Party in accordance with its terms.

 

 

 

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2.2          As a condition to the issuance of the Shares, Duroob hereby represents, warrants, and acknowledges to and covenants and agrees with the Company and Arabia as follows:

 

(a)            The undersigned is a Non-U.S. Person as such term is defined under Regulation S promulgated under the Securities Act of 1933, as amended (the “Securities Act”), or an accredited investor as such term is defined under Regulation D promulgated pursuant to the Securities Act.

 

(b)            Duroob is acquiring the Shares for the Duroob’s own account, for investment only and not with a view to, or for sale in connection with, a distribution thereof or any part thereof, within the meaning of the Securities Act, and the rules and regulations promulgated thereunder, or any applicable state Blue Sky laws;

 

(c)            Duroob is not a party or subject to or bound by any contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge the Shares or any part thereof to any person, and has no present intention to enter into such a contract, undertaking, agreement or arrangement;

 

(d)            The Company has advised Duroob that none of the Shares have been registered under the Securities Act or under the laws of any state;

 

(e)            As a result of such lack of registration under the Securities Act and any applicable state Blue Sky laws, the Shares may not be resold or otherwise transferred or disposed without registration pursuant to or an exemption therefrom available under the Securities Act and such applicable State Blue Sky laws;

 

(f)            Each and every certificate representing any of the Shares shall bear the restrictive legend substantially in the following form:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND NOT WITH A VIEW OF DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SHARES TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND SUCH STATE SECURITIES LAWS;”

 

(g)            Duroob has evaluated the merits and risks of acquiring the Shares and has such knowledge and experience in financial and business matters that Duroob is capable of evaluating the merits and risks of such acquisition, is aware of and has considered the financial risks and financial hazards of acquiring the Shares and is able to bear the economic risk of acquiring the Shares, including the possibility of a complete loss with respect thereto;

 

 

 

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(h)            Duroob has had access to such information regarding the business and finances of the Company and has been provided the opportunity to discuss with the Company’s management the business, affairs and financial condition of the Company and such other matters with respect to the Company as would concern a reasonable person considering the transactions contemplated by this Agreement;

 

(i)            It has never been represented, guaranteed or warranted to Duroob by the Company, or any of its officers, directors, agents, representatives or employees, or any other person, expressly or by implication, that:

 

(i)        any gain will be realized by Duroob from Duroob’s acquisition of the Shares;

(ii)       there will be any approximate or exact length of time that Duroob will be required to remain as a holder of the Shares, except as provided by federal and state securities laws and regulations; or

(iii)      the past performance or experience on the part of the Company or any of its officers, directors or other affiliates, its predecessors or of any other person, will in any way indicate any future results of the Company;

 

	 	
(j)
	
Except as set forth in this Agreement, Arabia and the Company have not made any representation, warranty, covenant or agreement with respect to the matters contained herein;

 

3.            Upon receipt of Shares, Duroob releases, acquits, holds harmless and forever discharges and covenants not to sue Arabia or the Company, together with each of its past, present or future officers, directors, employees, shareholders, administrators, partners, members, managers, family members, agents, attorneys, accountants, insurers, parents, subsidiaries, related or affiliated persons or entities, successors and assigns, from any and all claims, demands, or suits, known or unknown, fixed or liquidated or unliquidated of any nature whatsoever, whether based in common law, statutory law, contract, quasi-contract or tort (including negligence), that have been raised or that could have been raised from the beginning of time through the date hereof that arise from all actions, business or dealings relating to the Obligations. 

 

4.            All notices, including change of address notices, required or permitted to be given by either party to the other under this Agreement shall sent to the physical or electronic addresses set forth below, and shall be sufficient if sent by: (a) hand delivery or courier service, with signature confirmation; (b) certified mail, return receipt requested; or (c) telegram, facsimile or e-mail (i.e., electronically), with electronic confirmation of receipt to the sender. (The foregoing, sent as indicated herein, “notice”). Facsimile or other electronic signatures of the undersigned parties will have the same force and effect as original signatures. 

 

 

 

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If to the Company or Arabia, to:                                       Sysorex Global Holdings Corp.

3375 Scott Blvd.

Suite 440

Santa Clara, CA 95054

Attention: Nadir Ali

Facsimile: 650-649-1940

Email: ali@sysorex.com

 

With a copy to:                                                                    Davidoff Hutcher & Citron LLP

605 3rd Avenue, 34th Floor

New York, New York 10158

Attention: Elliot H. Lutzker

Facsimile: 212-286-1884

Email: ehl@dhclegal.com

 

If to Duroob:                                                                        Duroob Technology

abdulaziz@duroob.com

 

5.            This Agreement constitutes the entire agreement and understanding of the parties hereto and no amendment, modification or waiver of any provision herein shall be effective unless in writing, executed by the party charged therewith. This Agreement shall survive the termination of the relationship between the parties.

 

6.            This Agreement shall be construed, interpreted and enforced in accordance with and shall be governed by the laws of the State of California applicable to agreements to be wholly performed therein, other than those which would defer to the substantive laws of another jurisdiction. If any provision of this Agreement is found to be void or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall, nevertheless, be binding upon the parties with the same force and effect as though the unenforceable part has been severed and deleted. The provisions of this Agreement will be binding upon, and will inure to the benefit of, the respective heirs, legal representatives, successors and permitted assigns of the parties hereto. This Agreement is personal in its nature and the parties hereto shall not, without the consent of the other parties, assign or transfer this Agreement or any rights or obligations hereunder. This Agreement may be executed in one or more counterparts, each of which shall constitute an original, and which when taken together shall constitute one and the same agreement.

 

If the foregoing accurately sets forth your agreement with respect to the issuance of the Shares in consideration for surrendering $1,774,865 debt owed by the Company pursuant to the Obligations, please indicate such by signing where indicated below

 

 

 

[SIGNATURE PAGE TO FOLLOW]

 

 

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SYSOREX GLOBAL HOLDINGS CORP.
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
/s/ Nadir Ali  
	
 

	
 
	
 
	
 
	
Name:
	
Nadir Ali
	
 

	
 
	
 
	
 
	
Title: 
	
CEO
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SYSOREX ARABIA, LLC
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
/s/ Nadir Ali  
	
 

	
 
	
 
	
 
	
Name: 
	
Nadir Ali
	
 

	
 
	
 
	
 
	
Title:  
	
President
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
Accepted and agreed
	
 
	
 
	
 
	
 

	
as of the date first set forth above:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
DUROOB TECHNOLOGY
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Abdulaziz Al-Salloum
	
 
	
 
	
 
	
 

	
Name: 
	
Abdulaziz Al-Salloum
	
 
	
 
	
 
	
 

	
Title: 
	
CEO
	
 
	
 
	
 
	
 

 

 

5

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