Document:

Exhibit 10.3

 

SECURED
PROMISSORY NOTE (REVOLVING LOANS)

 

	Up to $10,000,000	November 14, 2016

 

FOR
VALUE RECEIVED, the undersigned, SYSOREX GLOBAL, a Nevada corporation with offices at 2479 East Bayshore Road, Suite
195, Palo Alto, CA 94303 (“SG”), SYSOREX USA, a California corporation with offices at 2479 East
Bayshore Road, Suite 195, Palo Alto, CA 94303 (“SUSA”) and SYSOREX GOVERNMENT SERVICES, INC., a
Virginia corporation with offices at 2479 East Bayshore Road, Suite 195, Palo Alto, CA 94303 (“SGS” and
together with SUSA and SG, jointly and severally the “Borrower”) hereby unconditionally promises to pay to
the order of GEMCAP LENDING I, LLC, a Delaware limited liability company with offices at 24955 Pacific Coast Highway,
Suite A202, Malibu, CA 90265 (together with its successors, transferees and assigns, “Lender”), on or
before the Maturity Date, the principal sum of up to Ten Million Dollars ($10,000,000) in accordance with the terms of this
Secured Promissory Note (Revolving Loans) (this “Note”) and the Loan and Security Agreement, of even date
herewith, entered into by and between Borrower and Lender (as amended from time to time, the “Loan
Agreement”). Capitalized terms used herein and not defined herein shall have the meanings given to them in the Loan
Agreement.

 

INTEREST;
DUE DATE; PREPAYMENT: Interest on the unpaid principal balance of Revolving Loans shall be computed on the basis of the actual
number of days elapsed and a year of 360 days and shall accrue on the unpaid principal balance of Advances at an annual rate equal
to the greater of (I) nine and one-half percent (9.5%), and (II) sum of (i) the “Prime Rate” as reported in the “Money
Rates” column of The Wall Street Journal, adjusted as and when such Prime Rate changes, plus (ii) six percent (6%)
(the “Interest Rate”). Following and during the continuation of an Event of Default, interest on the unpaid
principal balance shall accrue at an annual rate equal to the Interest Rate plus four percent (4%) (the “Default Interest
Rate”).

 

All
accrued interest on the unpaid principal balance of Revolving Loans hereunder, including interest charges for Collection Days,
shall be payable by Borrower in arrears (x) prior to the Maturity Date, on the seventh (7th) day of each calendar month (if such
date is not a Business Day, then on the first Business Day thereafter), commencing on December 7, 2016, (y) in full on the Maturity
Date, and (z) on demand after the Maturity Date.

 

Subject
to the prepayment provisions hereof, Borrower may borrow, repay and reborrow Revolving Loans, as set forth in the Loan Agreement.

 

The
entire principal balance of this Note then outstanding, plus any accrued and unpaid interest thereon, plus unpaid fees, together
with all penalties and late payment fees, if any, shall be due and payable on the Maturity Date pursuant to the terms of the Loan
Agreement and the other Loan Documents.

 

     

     

    

 

Prior
to the Maturity Date, Borrower may voluntarily prepay the entire unpaid principal amount of the Revolving Loans without
premium or penalty, provided, however, that, (i) such prepayment is no less than the amount of the
then-outstanding aggregate principal sum of all Revolving Loans hereunder and all accrued and unpaid interest thereon, (ii)
as part of such prepayment, Borrower shall pay Lender all other amounts due to Lender pursuant to this Note, the Loan
Agreement and the other Loan Documents, and (iii) in the event Borrower makes such prepayment on or before November 13, 2017,
then Borrower shall pay to Lender an amount equal to the Revolving Loan Prepayment Fee. The Revolving Loan Prepayment Fee is
intended to compensate Lender for committing and deploying funds for Borrower’s Revolving Loans pursuant to the Loan
Agreement and for Lender’s loss of investment of such funds in connection with such early termination, and is not
intended as a penalty. The Revolving Loan Prepayment Fee also shall be due and payable by Borrower to Lender if Lender
accelerates the payment of the Obligations on or before November 13, 2017, due to the occurrence of an Event of
Default.

 

PAYMENT
AND COLLECTION: In order to satisfy Borrower’s payment of amounts due under the Loans and all fees, expenses and charges
with respect thereto that are due and payable under this Note, the Loan Agreement and the other Loan Documents, Borrower hereby
irrevocably authorizes Lender to initiate manual and automatic electronic (debit and credit) entries through the Automated Clearing
House or other appropriate electronic payment system (“ACH”) to all deposit accounts maintained by Borrower,
wherever located. At the request of Lender, Borrower shall complete, execute and deliver to the institution set forth below (with
a copy to the Lender) an ACH agreement, voided check, information and/or direction letter reasonably necessary to so instruct
Borrower’s depository institutions. Borrower (i) shall maintain in all respects this ACH arrangement; (ii) shall not change
depository institutions without Lender’s prior written consent, and if consent is received, shall immediately execute similar
ACH instruction(s), and (iii) waives any and all claims for loss or damage arising out of debits or credits to/from the depository
institution, whether made properly or in error. Borrower has communicated with and instructed the institution(s) set forth below:

 

	 	Bank Name:	Bridge Bank NA
	 	Address:	55 Almaden Boulevard, San Jose, CA 95113
	 	ABA#:	121143260
	 	Account #:	101587129
	 	Phone:	(408) 556-8391
	 	Fax:	(408) 283-0513
	 	Reference:	Sysorex
	 	Contact Person:	Susan Wadi

 

MAXIMUM
RATE OF INTEREST: It is intended that the Interest Rate and the Default Interest Rate shall never exceed the maximum rate,
if any, which may be legally charged in the State of California for commercial loans made to corporations (the “Maximum
Rate”). If the provisions for interest contained in this Note would result in a rate higher than the Maximum Rate, interest
shall nevertheless be limited to the Maximum Rate and any amounts which may be paid toward interest in excess of the Maximum Rate
shall be applied to the reduction of principal, or, at the option of Lender, returned to Borrower.

 

FEES
AND COSTS: All fees, costs and expenses set forth in this Note, the Loan Agreement and other Loan Documents shall be
paid by Borrower in accordance with the terms hereof and thereof. All fees, costs and expenses as provided in this Note, the
Loan Agreement and other Loan Documents not paid when due shall be added to principal and shall thereafter bear interest at
the Default Interest Rate.

 

    	 	 	2

     

    

 

PLACE
OF PAYMENT; NOTICES: All payments hereon shall be made, and all notices to the Lender required or authorized hereby shall
be given, at the office of Lender at the address designated in the Loan Agreement, or to such other place as Lender may from time
to time direct by written notice to Borrower.

 

APPLICATION
OF PAYMENTS: All payments made hereunder shall be made without defense or set-off for any debt or other claim which Borrower
may assert against Lender. All payments received hereunder shall be applied in accordance with the provisions of the Loan Agreement.

 

AMOUNTS
DUE: All amounts payable hereunder are payable by check, ACH payment or wire transfer in immediately available funds to the
account number specified by Lender, in lawful money of the United States. At Lender’s option, Lender may charge the Borrower’s
accounts for the interest accrued hereunder. Borrower agrees to perform and comply with each of the covenants, conditions, provisions
and agreements contained in every instrument now evidencing or securing the indebtedness evidenced hereby.

 

SECURITY:
This Note is secured by a pledge of the Collateral as described in the Loan Documents. Borrower hereby acknowledges, admits and
agrees that Borrower’s obligations under this Note, the Loan Agreement and the other Loan Documents are full recourse obligations
of Borrower to which Borrower pledges its full faith and credit.

 

DEFAULTS;
REMEDIES: If either any amount under this Note is not paid in full when due or upon the occurrence of an Event of Default,
the Lender may declare the unpaid principal sum, accrued and unpaid interest and all other amounts under this Note immediately
due and payable and all amounts due under the Loan Agreement and the other Loan Documents immediately due and payable. In such
event, the Lender shall have all of the rights and remedies set forth in the Loan Agreement and the other Loan Documents. The
failure to exercise any of the rights and remedies set forth in the Loan Agreement or the other Loan Documents shall not constitute
a waiver of the right to exercise the same or any other option at any subsequent time in respect of the same event or any other
event. The acceptance by Lender of any payment which is less than payment in full of all amounts due and payable at the time of
such payment shall not constitute a waiver of the right to exercise any rights and remedies at that time or at any subsequent
time or nullify any prior exercise of any such rights and remedies.

 

WAIVERS:
The Borrower waives demand for payment, presentment for payment, protest, notice of nonpayment or dishonor and any and all other
notices and demands whatsoever.

 

TERMINOLOGY:
Any reference herein to Lender shall be deemed to include and apply to every subsequent holder of this Note.

 

LOAN
AGREEMENT: Reference is made to the Loan Agreement for provisions as to the Loan Documents, Loans, Collateral, fees,
charges, remedies and other matters. If there is any conflict between the terms of this Note and the terms of the Loan
Agreement, the terms of the Loan Agreement shall control.

 

    	 	 	3

     

    

 

HEADINGS:
The headings in this Note are for convenience of reference only and shall not affect the meaning or interpretation of this Note
or any provision hereof.

 

ATTORNEYS’
FEES AND COSTS: If the Lender incurs any loss, costs or expenses in enforcing or collecting this Note, in whole or in part,
or enforcing any of the terms of any of the other Loan Documents, the Borrower agrees to pay all losses, costs and expenses so
paid or incurred by Lender including, without limitation, attorneys’ fees and costs.

 

NON-PAYMENT
OF FEES AND COSTS: All fees, costs and expenses as provided in this Note, the Loan Agreement and other Loan Documents not
paid when due shall be added to principal and shall thereafter bear interest at the Default Interest Rate.

 

APPLICABLE
LAW. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA,
THE LAWS OF WHICH THE BORROWER HEREBY EXPRESSLY ELECTS TO APPLY TO THIS NOTE, WITHOUT GIVING EFFECT TO PROVISIONS FOR CHOICE OF
LAW THEREUNDER. THE BORROWER AGREES THAT ANY ACTION OR PROCEEDING BROUGHT TO ENFORCE OR ARISING OUT OF THIS NOTE SHALL BE COMMENCED
IN ACCORDANCE WITH THE PROVISIONS OF THIS NOTE.

 

WAIVER
OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, BORROWER HEREBY WAIVES ANY AND ALL RIGHTS THAT IT MAY NOW OR HEREAFTER
HAVE UNDER THE LAWS OF THE UNITED STATES OF AMERICA OR ANY STATE TO A TRIAL BY JURY OF ANY AND ALL ISSUES ARISING EITHER DIRECTLY
OR INDIRECTLY IN ANY ACTION OR PROCEEDING BETWEEN BORROWER, LENDER OR ITS SUCCESSORS AND ASSIGNS, OUT OF OR IN ANY WAY CONNECTED
WITH THIS NOTE, THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS AND/OR THE COLLATERAL. IT IS INTENDED THAT SAID WAIVER SHALL APPLY TO
ANY AND ALL DEFENSES, RIGHTS, AND/OR COUNTERCLAIMS IN ANY ACTION OR PROCEEDINGS BETWEEN BORROWER AND LENDER. BORROWER WAIVES ALL
RIGHTS TO INTERPOSE ANY CLAIMS, DEDUCTIONS, SETOFFS OR COUNTERCLAIMS OF ANY KIND, NATURE OR DESCRIPTION IN ANY ACTION OR PROCEEDING
INSTITUTED BY LENDER WITH RESPECT TO THIS NOTE, THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS, THE COLLATERAL OR ANY MATTER ARISING
THEREFROM OR RELATING THERETO, EXCEPT COMPULSORY COUNTERCLAIMS.

 

    	 	 	4

     

    

 

CONSENT
TO JURISDICTION. BORROWER HEREBY (a) IRREVOCABLY SUBMITS AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL
COURTS LOCATED IN THE STATE OF CALIFORNIA, LOS ANGELES COUNTY WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF THIS
NOTE, THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS AND/OR THE COLLATERAL OR ANY MATTER ARISING THEREFROM OR RELATING THERETO, AND
(b) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT THERETO. IN ANY SUCH
ACTION OR PROCEEDING, BORROWER WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT OR OTHER PROCESS AND PAPERS THEREIN AND AGREES
THAT THE SERVICE THEREOF MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO BORROWER AT ITS OFFICES SET FORTH
HEREIN OR OTHER ADDRESS THEREOF OF WHICH LENDER HAS RECEIVED NOTICE AS PROVIDED IN THE LOAN AGREEMENT. NOTWITHSTANDING THE FOREGOING,
BORROWER CONSENTS TO THE COMMENCEMENT BY LENDER OF ANY SUIT, ACTION OR PROCEEDING IN ANY OTHER JURISDICTION TO ENFORCE LENDER’S
RIGHTS AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY
SUCH SUIT, ACTION OR PROCEEDING.

 

ASSIGNMENT:
Lender reserves the right to sell, assign, transfer, negotiate, or grant participation interests in all or any part of this Note,
or any interest in Lender’s rights and benefits hereunder.

 

LOST
NOTE: In the event of the loss, theft, destruction or mutilation of this Note, upon request of Lender and submission of evidence
reasonably satisfactory to the Borrower of such loss, theft, destruction or mutilation, and, in the case of any such loss, theft,
or destruction, upon delivery of a bond or indemnity reasonably satisfactory to Borrower, or in the case of any such mutilation,
upon surrender and cancellation of this Note, Borrower will issue a new Note of like tenor as the lost, stolen, destroyed or mutilated
Note.

 

JOINT
AND SEVERAL OBLIGATIONS: The obligations of SG, SUSA and SGS under this Note and all Obligations under the other Loan Documents
are the joint are several obligations of SG, SUSA and SGS.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK AND SIGNATURES ON NEXT PAGE]

 

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IN
WITNESS WHEREOF, this Secured Promissory Note (Revolving Loans) has been duly executed and delivered by Borrower as of the
day and year first above written.

 

	 	BORROWER: SYSOREX GLOBAL  
	 	 	 
	 	By:  	/s/ Nadir Ali
	 	Name: 	Nadir Ali 
	 	Title:	CEO 
	 	 	 
	 	SYSOREX USA  
	 	 	 
	 	By:  	/s/ Nadir Ali
	 	Name: 	Nadir Ali 
	 	Title:	CEO 
	 	 	 
	 	SYSOREX GOVERNMENT SERVICES, INC.  
	 	 	 
	 	By:  	/s/ Wendy Loundermon
	 	Name: 	Wendy Loundermon
	 	Title:	President

 

 

[SIGNATURE PAGE – SECURED PROMISSORY NOTE
(REVOLVING LOANS)]Exhibit 10.4

 

PRE-FUNDING
AND POST-CLOSING AGREEMENT

 

PRE-FUNDING
AND POST-CLOSING AGREEMENT (“Agreement”), dated as of November 14, 2016, with respect to the Loan and
Security Agreement, of even date herewith (“Loan Agreement”) and the other documents and instruments
relating thereto (collectively, the “Loan Documents”), between GEMCAP LENDING I, LLC, a Delaware limited
liability company (together with its successors and assigns, “Lender”) and SYSOREX GLOBAL, a Nevada
corporation (“SG”), SYSOREX USA, a California corporation (“SUSA”), and SYSOREX
GOVERNMENT SERVICES, INC., a Virginia corporation (“SGS” and together with SUSA and SG, jointly and
severally the “Borrower”). Capitalized terms used but not defined herein have the meanings given to them
in the Loan Agreement.

 

RECITALS

 

WHEREAS,
the Borrower and Lender have executed and delivered the Loan Agreement and the Borrower has executed (or cause to be executed
if Borrower is not an executing party) and delivered the Loan Agreement Schedule and the Note; and

 

WHEREAS,
prior to the funding of the Loans in accordance with the Loan Agreement, Borrower must execute and deliver to Lender, the Pre-Funding
Documents (defined herein); and

 

WHEREAS,
to facilitate the closing of the transactions contemplated by the Loan Documents after the execution and delivery to Lender of
the Pre-Funding Documents, Lender has entered into the Loan Documents in reliance on Borrower’s undertakings to satisfy
the conditions set forth herein; and

 

WHEREAS,
Borrower has agreed to satisfy the conditions set forth herein within the time periods set forth herein.

 

NOW,
THEREFORE, the parties agree as follows:

 

1.           Pre-Funding
Requirements. In order for the Lender to fund the Loans in accordance with the Loan Agreement, Borrower must execute (or cause
to be executed if Borrower is not an executing party) and deliver to Lender, all in form and substance acceptable to Lender, the
following documents (collectively, the “Pre-Funding Documents”) with all such documents to be received by Lender
on or before November 28, 2016 (the “Pre-Funding Documents Delivery Date”):

 

		a.	Patent
                                         and Trademark Security Agreement;

		b.	Domain
                                         Name, URL and IP Address Assignment;

		c.	Borrower’s
                                         Disclosure Schedule;

		d.	Intercreditor
                                         Agreement;

		e.	Certificate
                                         of officer for each Borrower;

		f.	Opinion
                                         letter from counsel to Borrower (Mitchell Silberberg & Knupp LLP);

		g.	Payoff
                                         letter from Western Alliance Bank;

		h.	Payoff
                                         letters from secured creditors of Integrio Technologies, LLC and Emtec Federal, LLC (collectively,
                                         the “Integrio Entities”) with respect to the accounts receivable and
                                         other assets being purchased by Borrower (the “Integrio Assets”) from
                                         the Intergrio Entities (the “Integrio Asset Purchase”);

		i.	Documents
                                         evidencing the purchase of the Integrio Assets by Borrower from the Integrio Entities;

 

     

     

    

 

		j.	Either
                                         a (i) full release and termination of all liens held by Synnex Corporation (“Synnex”)
                                         against the assets of Borrower with respect to the assets, or (b) subordination agreement
                                         executed by Synnex, Borrower and Lender;

		k.	Insurance
                                         certificates and ACH agreements; and

		l.	Loan
                                         disbursement letter.

 

Notwithstanding
anything to the contrary contained in this Agreement, if the Pre-Funding Documents are not received by Lender prior to the expiration
of the Pre-Funding Documents Delivery Date, the Loan Agreement and other Loan Documents shall automatically terminate, provided
that Borrower shall be responsible to pay all of Lender’s out of pocket costs and expenses, including attorneys’ fees.

 

2.           Post
Funding Deliveries. On or before December 12, 2016, Borrower must execute (or cause to be executed if Borrower is not an executing
party) and deliver to Lender, all in form and substance acceptable to Lender, the following documents (the “Post-Funding
Documents”), with all such documents to be received by Lender on or before December 12, 2016 (the “Post Funding
Documents Delivery Date”):

 

		a.	Landlord
                                         Waiver and Access Agreements (with respect to the Borrower’s Premises); and
		b.	Deposit
                                         account control agreement; and
		c.	Such
                                         other documents as reasonably requested by Lender.

 

3.           Event
of Default; No Other Waiver; Counterparts. Borrower’s failure to timely deliver the Post- Funding Documents to Lender
prior to the expiration of the Post-Funding Delivery Date shall constitute an Event of Default under the Loan Agreement. Except
as expressly set forth herein, nothing contained herein shall act as a waiver or excuse of performance of any Obligations. This
Agreement may be executed in counterparts, including facsimile or electronic signature, each of which when so executed, shall
be deemed an original, but all of which shall constitute but one and the same instrument.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	-2-	 

     

    

 

IN
WITNESS WHEREOF, this Post-Closing Agreement has been duly executed as of the day and year first above written.

 

	 	BORROWER:
    
	 	 	 
	 	SYSOREX
    GLOBAL
	 	 	 
	 	By:  	/s/
    Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:  	CEO
	 	 	 
	 	SYSOREX
    USA
	 	 	 
	 	By:  	/s/
    Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:  	CEO
	 	 	 
	 	SYSOREX
    GOVERNMENT SERVICES, INC.
	 	 	 
	 	By:  	/s/
    Wendy Loundermon
	 	Name:	Wendy
    Loundermon
	 	Title:  	President
	 	 	 
	 	LENDER:
	 	 	 
	 	GEMCAP
    LENDING I, LLC
	 	 	 
	 	By:  	/s/
    David Ellis
	 	 	David
    Ellis, Co-President

 

[SIGNATURE
PAGE –PRE-FUNDING AND POST-CLOSING AGREEMENT]

 

 

-3-

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