Document:

Exhibit 10.3

 

SUBSIDIARY
GUARANTEE

 

SUBSIDIARY
GUARANTEE, dated as of August 9, 2016 (this “Guarantee”), made by each of the signatories hereto (together
with any other entity that may become a party hereto as provided herein, the “Guarantors”), in favor of the
purchasers signatory (together with their permitted assigns, the “Purchasers”) to that certain Securities Purchase
Agreement, dated as of the date hereof, between Sysorex Global, a Nevada corporation (the “Company”), and the
Purchasers.

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to that certain Securities Purchase Agreement, dated as of August 9, 2016, by and between the Company and the Purchasers
(the “Purchase Agreement”), the Company has agreed to sell and issue to the Purchasers, and the Purchasers
have agreed to purchase from the Company the Debentures, subject to the terms and conditions set forth therein; and

 

WHEREAS,
each Guarantor will directly benefit from the extension of credit to the Company represented by the issuance of the Debentures;
and

 

NOW,
THEREFORE, in consideration of the premises and to induce the Purchasers to enter into the Purchase Agreement and to carry out
the transactions contemplated thereby, each Guarantor hereby agrees with the Purchasers as follows:

 

1. Definitions.
Unless otherwise defined herein, terms defined in the Purchase Agreement and used herein shall have the meanings given to them
in the Purchase Agreement. The words “hereof,” “herein,” “hereto” and “hereunder”
and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision
of this Guarantee, and Section and Schedule references are to this Guarantee unless otherwise specified. The meanings given to
terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The following terms shall
have the following meanings:

 

“Guarantee”
means this Subsidiary Guarantee, as the same may be amended, supplemented or otherwise modified from time to time.

 

    	 		 

     

    

 

“Obligations”
means, in addition to all other costs and expenses of collection incurred by Purchasers in enforcing any of such Obligations and/or
this Guarantee, all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or
to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company or any Guarantor to the
Purchasers, including, without limitation, all obligations under this Guarantee, the Debentures and any other instruments, agreements
or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed
with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all
or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from any of the Purchasers as a preference, fraudulent transfer or otherwise as such obligations may be
amended, supplemented, converted, extended or modified from time to time. Without limiting the generality of the foregoing, the
term “Obligations” shall include, without limitation: (i) principal of, and interest on the Debentures and the loans
extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Company or any
Guarantor from time to time under or in connection with this Guarantee, the Debentures and any other instruments, agreements or
other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited
to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such
amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving
the Company or any Guarantor.

 

2. Guarantee.

 

(a) Guarantee.

 

(i) The
Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantee to the Purchasers and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations.

 

(ii) Anything
herein or in any other Transaction Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Transaction Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under
applicable federal and state laws, including laws relating to the insolvency of debtors, fraudulent conveyance or transfer or
laws affecting the rights of creditors generally (after giving effect to the right of contribution established in Section 2(b)).

 

(iii) Each
Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or affecting the rights and remedies of the Purchasers hereunder.

 

(iv) The
guarantee contained in this Section 2 shall remain in full force and effect until all the Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been satisfied by indefeasible payment in full.

 

    	 	2	 

     

    

 

(v) No
payment made by the Company, any of the Guarantors, any other guarantor or any other Person or received or collected by the Purchasers
from the Company, any of the Guarantors, any other guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall
be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding
any such payment (other than any payment made by such Guarantor in respect of the Obligations or any payment received or collected
from such Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Guarantor
hereunder until the Obligations are indefeasibly paid in full.

 

(vi) Notwithstanding
anything to the contrary in this Guarantee, with respect to any defaulted non-monetary Obligations the specific performance of
which by the Guarantors is not reasonably possible (e.g. the issuance of the Company's Common Stock), the Guarantors shall only
be liable for making the Purchasers whole on a monetary basis for the Company's failure to perform such Obligations in accordance
with the Transaction Documents.

 

(b) Right
of Contribution. Subject to Section 2(c), each Guarantor hereby agrees that to the extent that a Guarantor shall have paid
more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution
from and against any other Guarantor hereunder which has not paid its proportionate share of such payment. Each Guarantor's right
of contribution shall be subject to the terms and conditions of Section 2(c). The provisions of this Section 2(b) shall in no
respect limit the obligations and liabilities of any Guarantor to the Purchasers and each Guarantor shall remain liable to the
Purchasers for the full amount guaranteed by such Guarantor hereunder.

 

(c) No
Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of any Guarantor
by the Purchasers, no Guarantor shall be entitled to be subrogated to any of the rights of the Purchasers against the Company
or any other Guarantor or any collateral security or guarantee or right of offset held by the Purchasers for the payment of the
Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other
Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the Purchasers by the Company on
account of the Obligations are indefeasibly paid in full. If any amount shall be paid to any Guarantor on account of such subrogation
rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Guarantor in
trust for the Purchasers, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor,
be turned over to the Purchasers in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Purchasers,
if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Purchasers may determine.

 

    	 	3	 

     

    

 

(d) Amendments,
Etc. With Respect to the Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the
Obligations made by the Purchasers may be rescinded by the Purchasers and any of the Obligations continued, and the Obligations,
or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Purchasers, and the Purchase Agreement and the other Transaction Documents
and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Purchasers may deem advisable from time to time, and any collateral security, guarantee or right of offset
at any time held by the Purchasers for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.
The Purchasers shall have no obligation to protect, secure, perfect or insure any Lien at any time held by them as security for
the Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

 

(e) Guarantee
Absolute and Unconditional. Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of
any of the Obligations and notice of or proof of reliance by the Purchasers upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to
have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained
in this Section 2; and all dealings between the Company and any of the Guarantors, on the one hand, and the Purchasers, on
the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2. Each Guarantor waives to the extent permitted by law diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Company or any of the Guarantors with respect to the Obligations.
Each Guarantor understands and agrees that the guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment and performance without regard to (a) the validity or enforceability of the
Purchase Agreement or any other Transaction Document, any of the Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to time held by the Purchasers, (b) any
defense, set-off or counterclaim (other than a defense of payment or performance or fraud by Purchasers) which may at any
time be available to or be asserted by the Company or any other Person against the Purchasers, or (c) any other circumstance
whatsoever (with or without notice to or knowledge of the Company or such Guarantor) which constitutes, or might be construed
to constitute, an equitable or legal discharge of the Company for the Obligations, or of such Guarantor under the guarantee
contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing
its rights and remedies hereunder against any Guarantor, the Purchasers may, but shall be under no obligation to, make a
similar demand on or otherwise pursue such rights and remedies as they may have against the Company, any other Guarantor or
any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect
thereto, and any failure by the Purchasers to make any such demand, to pursue such other rights or remedies or to collect any
payments from the Company, any other Guarantor or any other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the Company, any other Guarantor or any other Person or
any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any obligation or liability
hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law,
of the Purchasers against any Guarantor. For the purposes hereof, “demand” shall include the commencement and
continuance of any legal proceedings.

 

    	 	4	 

     

    

 

(f) Reinstatement.
The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Purchasers
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company or any Guarantor, or upon or as a result
of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Company or any Guarantor
or any substantial part of its property, or otherwise, all as though such payments had not been made.

 

(g) Payments.
Each Guarantor hereby guarantees that payments hereunder will be paid to the Purchasers without set-off or counterclaim in U.S.
dollars at the address set forth or referred to in the Signature Pages to the Purchase Agreement.

 

3. Representations
and Warranties. Each Guarantor hereby makes the following representations and warranties to Purchasers as of the date hereof:

 

(a) Organization
and Qualification. The Guarantor is a corporation, duly incorporated, validly existing and in good standing under the laws
of the applicable jurisdiction set forth on Schedule 1, with the requisite corporate power and authority to own and use
its properties and assets and to carry on its business as currently conducted. The Guarantor has no subsidiaries other than those
identified as such on the Disclosure Schedules to the Purchase Agreement. The Guarantor is duly qualified to do business and is
in good standing as a foreign corporation 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, individually or in the aggregate, (x) adversely affect the legality, validity or enforceability of any of this Guaranty
in any material respect, (y) have a material adverse effect on the results of operations, assets, prospects, or financial condition
of the Guarantor or (z) adversely impair in any material respect the Guarantor's ability to perform fully on a timely basis its
obligations under this Guaranty (a “Material Adverse Effect”).

 

    	 	5	 

     

    

 

(b) Authorization;
Enforcement. The Guarantor has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Guaranty, and otherwise to carry out its obligations hereunder. The execution and delivery of this Guaranty
by the Guarantor and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite
corporate action on the part of the Guarantor. This Guaranty has been duly executed and delivered by the Guarantor and constitutes
the valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.

 

(c) No
Conflicts. The execution, delivery and performance of this Guaranty by the Guarantor and the consummation by the Guarantor
of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of its Certificate of
Incorporation or By-laws or (ii) conflict with, 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 the Guarantor is a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Guarantor is subject (including
Federal and State securities laws and regulations), or by which any material property or asset of the Guarantor is bound or affected,
except in the case of each of clauses (ii) and (iii), such conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as could not, individually or in the aggregate, have or result in a Material Adverse Effect. The business of the
Guarantor is not being conducted in violation of any law, ordinance or regulation of any governmental authority, except for violations
which, individually or in the aggregate, do not have a Material Adverse Effect.

 

    	 	6	 

     

    

 

(d) Consents
and Approvals. The Guarantor is not required to obtain any consent, waiver, authorization or order of, or make any filing
or registration with, any court or other federal, state, local, foreign or other governmental authority or other person in connection
with the execution, delivery and performance by the Guarantor of this Guaranty.

 

(e) Purchase
Agreement. The representations and warranties of the Company set forth in the Purchase Agreement as they relate to such Guarantor,
each of which is hereby incorporated herein by reference, are true and correct as of each time such representations are deemed
to be made pursuant to such Purchase Agreement, and the Purchasers shall be entitled to rely on each of them as if they were fully
set forth herein, provided that each reference in each such representation and warranty to the Company's knowledge shall, for
the purposes of this Section 3, be deemed to be a reference to such Guarantor's knowledge.

 

(f) Foreign
Law. Each Guarantor has consulted with appropriate foreign legal counsel with respect to any of the above representations
for which non-U.S. law is applicable. Such foreign counsel have advised each applicable Guarantor that such counsel knows of no
reason why any of the above representations would not be true and accurate. Such foreign counsel were provided with copies of
this Subsidiary Guarantee and the Transaction Documents prior to rendering their advice.

 

4. Covenants.

 

(a) Each
Guarantor covenants and agrees with the Purchasers that, from and after the date of this Guarantee until the Obligations shall
have been indefeasibly paid in full, such Guarantor shall take, and/or shall refrain from taking, as the case may be, each commercially
reasonable action that is necessary to be taken or not taken, as the case may be, so that no Event of Default (as defined in the
Debentures) is caused by the failure to take such action or to refrain from taking such action by such Guarantor.

 

(b) So
long as any of the Obligations are outstanding, unless Purchasers holding at least 67% of the aggregate principal amount of the
then outstanding Debentures shall otherwise consent in writing, each Guarantor will not directly or indirectly on or after the
date of this Guarantee:

 

i. enter
into, create, incur, assume or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to,
a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any
income or profits therefrom;

 

ii. enter
into, create, incur, assume or suffer to exist any liens of any kind, on or with respect to any of its property or assets now
owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

    	 	7	 

     

    

 

iii. amend
its certificate of incorporation, bylaws or other charter documents so as to adversely affect any rights of any Purchaser;

 

iv. repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its securities or debt
obligations; 

 

v.  pay
cash dividends on any equity securities of the Company;

 

vi. enter
into any transaction with any Affiliate of the Guarantor which would be required to be disclosed in any public filing of the Company
with the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the
disinterested directors of the Company (even if less than a quorum otherwise required for board approval); or

 

vii. enter
into any agreement with respect to any of the foregoing.

 

5. Miscellaneous.

 

(a) Amendments
in Writing. None of the terms or provisions of this Guarantee may be waived, amended, supplemented or otherwise modified except
in writing by the Purchasers.

 

(b) Notices.
All notices, requests and demands to or upon the Purchasers or any Guarantor hereunder shall be effected in the manner provided
for in the Purchase Agreement, provided that any such notice, request or demand to or upon any Guarantor shall be addressed to
such Guarantor at its notice address set forth on Schedule 5(b).

 

(c) No
Waiver By Course Of Conduct; Cumulative Remedies. The Purchasers shall not by any act (except by a written instrument pursuant
to Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any default under the Transaction Documents or Event of Default. No failure to exercise, nor any delay in exercising, on the
part of the Purchasers, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise
of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Purchasers of any right or remedy hereunder on any one occasion shall not be construed as
a bar to any right or remedy which the Purchasers would otherwise have on any future occasion. The rights and remedies herein
provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided
by law.

 

    	 	8	 

     

    

 

(d) Enforcement
Expenses; Indemnification.

 

(i) Each
Guarantor agrees to pay, or reimburse the Purchasers for, all its costs and expenses incurred in collecting against such Guarantor
under the guarantee contained in Section 2 or otherwise enforcing or preserving any rights under this Guarantee and the other
Transaction Documents to which such Guarantor is a party, including, without limitation, the reasonable fees and disbursements
of counsel to the Purchasers.

 

(ii) Each
Guarantor agrees to pay, and to save the Purchasers harmless from, any and all liabilities with respect to, or resulting from
any delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable in connection
with any of the transactions contemplated by this Guarantee.

 

(iii) Each
Guarantor agrees to pay, and to save the Purchasers harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Guarantee to the extent the Company would be required to do so pursuant to
the Purchase Agreement.

 

(iv) The
agreements in this Section shall survive repayment of the Obligations and all other amounts payable under the Purchase Agreement
and the other Transaction Documents.

 

(e) Successor
and Assigns. This Guarantee shall be binding upon the successors and assigns of each Guarantor and shall inure to the benefit
of the Purchasers and their respective successors and assigns; provided that no Guarantor may assign, transfer or delegate any
of its rights or obligations under this Guarantee without the prior written consent of the Purchasers.

 

    	 	9	 

     

    

 

(f) Set-Off.
Each Guarantor hereby irrevocably authorizes the Purchasers at any time and from time to time while an Event of Default under
any of the Transaction Documents shall have occurred and be continuing, without notice to such Guarantor or any other Guarantor,
any such notice being expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits, credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured,
at any time held or owing by the Purchasers to or for the credit or the account of such Guarantor, or any part thereof in such
amounts as the Purchasers may elect, against and on account of the obligations and liabilities of such Guarantor to the Purchasers
hereunder and claims of every nature and description of the Purchasers against such Guarantor, in any currency, whether arising
hereunder, under the Purchase Agreement, any other Transaction Document or otherwise, as the Purchasers may elect, whether or
not the Purchasers have made any demand for payment and although such obligations, liabilities and claims may be contingent or
unmatured. The Purchasers shall notify such Guarantor promptly of any such set-off and the application made by the Purchasers
of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of the Purchasers under this Section are in addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Purchasers may have.

 

(g) Counterparts.
This Guarantee may be executed by one or more of the parties to this Guarantee on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

(h) Severability.
Any provision of this Guarantee which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

(i) Section
Headings. The Section headings used in this Guarantee are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

(j) Integration.
This Guarantee and the other Transaction Documents represent the agreement of the Guarantors and the Purchasers with respect to
the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Purchasers
relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Transaction Documents.

 

    	 	10	 

     

    

 

(k) Governing
Laws. All questions concerning the construction, validity, enforcement and interpretation of this Guarantee shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflicts of law thereof. Each of the Company and the Guarantors agree that all proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Guarantee (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the City of New York, Borough of Manhattan. Each of the Company and the Guarantors hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service
of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guarantee
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. Each party hereto hereby irrevocably
waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising
out of or relating to this Guarantee or the transactions contemplated hereby.

 

(l) Acknowledgements.
Each Guarantor hereby acknowledges that:

 

(i) it
has been advised by counsel in the negotiation, execution and delivery of this Guarantee and the other Transaction Documents to
which it is a party;

 

(ii) the
Purchasers have no fiduciary relationship with or duty to any Guarantor arising out of or in connection with this Guarantee or
any of the other Transaction Documents, and the relationship between the Guarantors, on the one hand, and the Purchasers, on the
other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(iii) no
joint venture is created hereby or by the other Transaction Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Guarantors and the Purchasers.

 

(m) Additional
Guarantors. The Company shall cause each of its subsidiaries formed or acquired on or subsequent to the date hereof to become
a Guarantor for all purposes of this Guarantee by executing and delivering an

Assumption Agreement in the form of Annex 1 hereto.

 

(n) Release
of Guarantors. Each Guarantor will be released from all liability hereunder concurrently with the indefeasible repayment in
full of all amounts owed under the Purchase Agreement, the Debentures and the other Transaction Documents.

 

(o) Seniority.
The Obligations of each of the Guarantors hereunder rank senior in priority to any other Indebtedness (as defined in the Purchase
Agreement) of such Guarantor.

 

(p) WAIVER
OF JURY TRIAL. EACH GUARANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE PURCHASERS, HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM THEREIN.

 

*********************

 

(Signature
Pages Follow)

 

    	 	11	 

     

    

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered as of the date first above
written.

 

	 	SYSOREX
    USA
	 	 
	 	By:	/s/
    Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:	CEO
	 	 	 
	 	SYSOREX
    GOVERNMENT SERVICES, INC.
	 	 	 
	 	By:	/s/
    Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:	Director
	 	 	 
	 	SYSOREX
    CANADA CORP.
	 	 	 
	 	By:	/s/
    Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:	CEO
	 	 	 
	 	SYSOREX
    ARABIA LLC
	 	 	 
	 	By:	/s/
Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:	General
    Manager

 

Acknowledged
and Agreed as of the date hereof:

 

SYSOREX
GLOBAL

 

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

 

    	 	12	 

     

    

 

SCHEDULE
1

 

GUARANTORS

 

The
following are the names, notice addresses and jurisdiction of organization of each Guarantor.

 

	 	 	JURISDICTION OF

INCORPORATION	 	COMPANY OWNED

BY PERCENTAGE
	Sysorex Global 
2479 E Bayshore Road, Suite 195 
Palo Alto, CA 94303	 	Nevada	 	 
	Sysorex USA 
17 E Sir Francis Drake Blvd, Suite 110 
Larkspur, CA 94939	 	California	 	100%
	Sysorex Government Services, Inc. 
13800 Coppermine Road, Suite 300 
Herndon, VA 20171	 	Virginia	 	100%
	Sysorex Canada Corp. 
2963 Glen Drive, ste 405
 Coquitlam, BC V3B 2P7
 Canada	 	Canada	 	100%
	Sysorex Arabia LLC 
Al Akaria Center 1
 Suite 302-2, Olaya District
 Kingdom of Saudi Arabia	 	Saudi Arabia	 	50.2%

 

    	 	13	 

     

    

 

Annex
1 to

SUBSIDIARY
GUARANTEE

 

ASSUMPTION
AGREEMENT, dated as of _________, ______ made by ____________________, a ______________ corporation (the “Additional
Guarantor”), in favor of the Purchasers pursuant to the Purchase Agreement referred to below. All capitalized terms
not defined herein shall have the meaning ascribed to them in such Purchase Agreement.

 

W
I T N E S S E T H :

 

WHEREAS,
Sysorex Global, a Nevada corporation (the “Company”) and the Purchasers have entered into a Securities Purchase
Agreement, dated as of August 9, 2016 (as amended, supplemented or otherwise modified from time to time, the “Purchase
Agreement”);

 

WHEREAS,
in connection with the Purchase Agreement, the Subsidiaries of the Company (other than the Additional Guarantor) have entered
into the Subsidiary Guarantee, dated as of August 9, 2016 (as amended, supplemented or otherwise modified from time to time, the
“Guarantee”) in favor of the Purchasers;

 

WHEREAS,
the Purchase Agreement requires the Additional Guarantor to become a party to the Guarantee; and

 

WHEREAS,
the Additional Guarantor has agreed to execute and deliver this Assumption Agreement in order to become a party to the Guarantee;

 

NOW,
THEREFORE, IT IS AGREED:

 

1. Guarantee.
By executing and delivering this Assumption Agreement, the Additional Guarantor, as provided in Section 5(m) of the Guarantee,
hereby becomes a party to the Guarantee as a Guarantor thereunder with the same force and effect as if originally named therein
as a Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities
of a Guarantor thereunder. The information set forth in Annex 1 hereto is hereby added to the information set forth in Schedule
1 to the Guarantee. The Additional Guarantor hereby represents and warrants that each of the representations and warranties contained
in Section 3 of the Guarantee is true and correct on and as the date hereof as to such Additional Guarantor (after giving effect
to this Assumption Agreement) as if made on and as of such date.

 

2. Governing
Law. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.

 

    	 	14	 

     

    

 

IN
WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed and delivered as of the date first
above written.

 

	 	[ADDITIONAL
    GUARANTOR]
	 	 	 
	 	By:	                
	 	Name:	 
	 	Title:	 
	 	 	 

 

 

15Exhibit
10.4

 

AMENDMENT
NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT,

WAIVER OF DEFAULTS, AND CONSENT

 

This
AMENDMENT NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT, WAIVER OF DEFAULTS, AND CONSENT (this “Amendment”),
dated as of August 5, 2016, is entered into by and among WESTERN ALLIANCE BANK, an Arizona corporation, as successor in interest
to BRIDGE BANK, NATIONAL ASSOCIATION (“Lender”), on the one hand, and SYSOREX USA, a California corporation
(“Sysorex”), SYSOREX GOVERNMENT SERVICES, INC., a Virginia corporation (“SGSI”),
and SYSOREX GLOBAL, a Nevada corporation (“Parent”), (Sysorex, SGSI, and Parent are sometimes collectively
referred to herein as “Borrowers” and each individually as a “Borrower”),
on the other hand, with reference to the following facts:

 

A.Borrowers
and Lender previously entered into that certain Business Financing Agreement, dated as of March 15, 2013, as amended by that certain
Amendment Number One to Business Financing Agreement, Waiver of Defaults and Consent, dated as of August 29, 2013, that certain
Amendment Number Two to Business Financing Agreement, Waiver and Consent, dated as of May 13, 2014 to be effective as of
April 16, 2014, that certain Amendment Number Three to Business Financing Agreement and Waiver of Defaults, dated as of December
31, 2014, that certain Amendment Number Four to Business Financing Agreement dated as of April 29, 2015, that certain Amendment
Number Five to Business Financing Agreement dated as of October 7, 2015, that certain Amendment and Waiver of Non-Compliance under
Business Financing Agreement dated March 25,2016, and that certain Amendment Number Six to Business Financing Agreement and Forbearance
Agreement, dated as of June 3, 2016 (as so amended, the “Agreement”).

 

B.Borrowers
are in default of the provisions of the Agreement set forth on Schedule A attached hereto as of the dates indicated
in such Schedule (the “Existing Defaults”).

 

C.Borrowers
desire to obtain secured subordinated financing from Hillair Capital Investments L.P. in the amount of $5,000,000 (“Hillair
Financing”). The Hillair Financing is prohibited by the terms of the Agreement.

 

D.Borrowers
have requested that Lender waive the Existing Defaults and consent to the Hillair Financing, and Lender has agreed with such requests,
subject to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the foregoing, Lender and Borrowers hereby agree as follows:

 

1.Defined
Terms. All initially capitalized terms used but not defined herein shall have the meanings assigned to such terms in the
Agreement.

 

2.Amendment
to Section 1.15. Section 1.15 of the Agreement is hereby amended in its entirety as follows:

 

		1.15	Mandatory
                                         Paydown of Term Advance B. Borrowers agree to pay to Lender the outstanding principal
                                         amount of Term Advance B on the Paydown Date.

 

     

     

    

 

3.Amendment
to Section 2.2(i). Section 2.2(i) of the Agreement is hereby amended in its entirety as follows:

 

		(i)	Fee
                                         in lieu of Warrant. On the Paydown Date, Borrowers shall pay a fee (the “Fee
                                         in lieu”) to Lender in lieu of issuing share warrants to Lender, in the
                                         amount of $200,000.

 

4.Amendments
to Section 4.8. Section 4.8(h) and (i) are hereby amended in their entirety as follows:

 

		(h)	Within
                                         10 days after the last day of each calendar month, a borrowing base certificate, in form
                                         and substance satisfactory to Lender, setting forth Eligible Receivables and Receivable
                                         Amounts thereof as of the last day of the calendar month.

 

		(i)	Within
                                         10 days after the last day of each calendar month, a detailed aging of each Borrower's
                                         receivables by invoice or3 a summary aging by account debtor, together with payable aging,
                                         inventory analysis, cash receipts journal, sales journal, and such other matters as Lender
                                         may request.

 

5.Amendment
to Section 4.12. Section 4.12 is hereby amended in its entirety as follows:

 

		4.12	Maintain
                                         in accordance with GAAP and consistent with prior practices (except to the extent modified
                                         by the definitions herein)

 

		(a)	an
                                         Asset Coverage Ratio of not less than 1.25 to 1.00, tested as of the end of each month.

 

		(b)	Consolidated
                                         unrestricted cash balances at Lender at all times in an amount not less than $1,000,000,
                                         tested daily.

 

6.New
Section 4.15. A new Section 4.15 is hereby added to the Agreement immediately following Section 4.14 thereof as follows:

 

		4.15	Provide
                                         to Lender, as soon as practicable but in any event not later than August 15, 2016,
                                         financial projections through December 31, 2016, in form and detail acceptable to Lender,
                                         after which Borrowers and Lender shall negotiate in good faith to agree upon financial
                                         covenants for periods after August 31, 2016. Borrowers shall execute and deliver an amendment
                                         to this Agreement to Lender no later than August 31, 2016, such amendment to reflect
                                         and document financial covenants acceptable to Lender for periods after August 31, 2016.

 

7.Amendments
to Section 12.1.

 

(a)The
following definitions set forth in Section 12.1 of the Agreement are hereby amended in their entirety as follows:

 

“Existing
Defaults” has the meaning given to such term in the Seventh Amendment.

 

“Paydown
Date” means the earlier to occur of (a) the funding of the Hillair Financing, or (b) August 10, 2016.

 

    	 	2	 

     

    

 

(b)Clause
(e) of the definition of Permitted Debt set forth in Section 12.1 of the Agreement is hereby amended in its entirety as follows:

 

		(e)	Subordinated
                                         Debt, including the Hillair Financing, subject to the terms of the Subordination Agreement.

 

(c)Clause
(e) of the definition of Permitted Liens set forth in Section 12.1 of the Agreement is hereby amended in its entirety as follows:

 

		(e)	Liens
                                         in favor of Hillair securing the Hillair Financing, subject to the terms of the Subordination
                                         Agreement.

 

(d)The
following new definitions are hereby added to Section 12.1 of the Agreement in alphabetical order as follows:

 

“Hillair”
means Hillair Capital Investments L.P.

 

“Hillair
Financing” means the loan made by Hillair to Parent in the amount of $5,000,000 on or about August 5, 2016.

 

“Seventh
Amendment” means that certain Amendment Number Seven to Business Financing Agreement, Waiver of Defaults, and Consent,
dated as of August 5, 2016, between Lender and Borrowers, amending this Agreement.

 

“Subordination
Agreement” means that certain Subordination Agreement, dated on or about August 5, 2016, between Hillair and Lender,
as may be amended or restated from time to time.

 

(e)The
following definitions set forth in Section 12.1 are hereby deleted:

 

“Forbearance
Maturity Date”

 

“Forbearance
Period”

 

“Forbearance
Termination Event”

 

8.Replacement
Exhibit A. Exhibit A attached to the Agreement is hereby replaced with Exhibit A attached to this Amendment.

 

9.Waiver
of Existing Defaults. Upon the terms and subject to the conditions set forth in this Amendment, Lender hereby waives the
Existing Defaults. This waiver of the Existing Defaults shall be effective only in this specific instance and for the specific
purpose for which it is given, and shall not entitle Borrowers to any other or further waiver in any similar or other circumstances.

 

10.Consent
to Hillair Financing. Upon the terms and subject to the conditions set forth in this Amendment, Lender hereby consents
to the Hillair Financing. This consent to the Hillair Financing shall be effective only in this specific instance and for the
specific purpose for which it is given, and shall not entitle Borrowers to any other or further consent in any similar or other
circumstances.

 

    	 	3	 

     

    

 

11.Conditions
Precedent to Effectiveness of Amendment. The effectiveness of this Amendment, the waiver of the Existing Defaults
set forth in Section 9 above, the consent to the Hillair Financing set forth in Section 10 above, are subject to and contingent
upon the fulfillment of each and every one of the following conditions to the satisfaction of Lender:

 

(a)Lender
shall have received this Amendment, duly executed by Borrower;

 

(b)Lender
shall have received true and correct copies of all documents executed and connection with the Hillair Financing, duly executed
and otherwise in form and substance satisfactory to Lender;

 

(c)Lender
shall have received the Subordination Agreement with Hillair Capital Investments L.P., duly executed and otherwise in form and
substance satisfactory to Lender;

 

(d)The
Hillair Financing shall have closed substantially concurrently with the execution of this Amendment;

 

(e)After
giving effect to this Amendment, no Event of Default or Default shall have occurred and be continuing; and

 

(f)After
giving effect to this Amendment, all of the representations and warranties set forth herein and in the Agreement shall be true,
complete and accurate in all respects as of the date hereof (except for representations and warranties which are expressly stated
to be true and correct as of the date of the Agreement).

 

12.Representations
and Warranties. In order to induce Lender to enter into this Amendment, Borrower hereby represents and warrants to Lender
that:

 

(a)After
giving effect to this Amendment, no Event of Default or Default is continuing;

 

(b)After
giving effect to this Amendment, all of the representations and warranties set forth herein and in the Agreement are true, complete
and accurate in all respects (except for representations and warranties which are expressly stated to be true and correct as of
the date of the Agreement); and

 

(c)This
Amendment has been duly executed and delivered by Borrowers, and the Agreement continues to constitute the legal, valid and binding
agreements and obligations of Borrowers, enforceable in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, and similar laws and equitable principles affecting the enforcement of creditors’ rights generally.

 

13.Counterparts;
Telefacsimile Execution. This Amendment may be executed in any number of counterparts and by different parties
on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when
taken together, shall constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment by telefacsimile
shall be equally as effective as delivery of a manually executed counterpart of this Amendment. Any party delivering an executed
counterpart of this Amendment by telefacsimile also shall deliver a manually executed counterpart of this Amendment but the failure
to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

 

14.Integration.
The Agreement as amended by this Amendment constitutes the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof and thereof, and supersedes any and all prior agreements and understandings, oral or written,
relating to the subject matter hereof and thereof.

 

15.No
Waiver. Except as otherwise provided in Section 9 above, the execution of this Amendment and the acceptance of all other
agreements and instruments related hereto shall not be deemed to be a waiver of any Default or Event of Default, whether or not
known to Lender and whether or not existing on the date of this Amendment.

 

    	 	4	 

     

    

 

16.Release.

 

(a)Each
Borrower hereby absolutely and unconditionally releases and forever discharges Lender, and any and all participants, parent corporations,
subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of
the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or
causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state
or federal law or otherwise, which any Borrower has had, now has or has made claim to have against any such person for or by reason
of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment,
whether such claims, demands and causes of action are matured or unmatured or known or unknown. Each Borrower certifies that it
has read the following provisions of California Civil Code Section 1542:

 

A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

(b)Each
Borrower understands and acknowledges that the significance and consequence of this waiver of California Civil Code Section 1542
is that even if it should eventually suffer additional damages arising out of the facts referred to above, it will not be able
to make any claim for those damages. Furthermore, each Borrower acknowledges that it intends these consequences even as to claims
for damages that may exist as of the date of this release but which it does not know exist, and which, if known, would materially
affect its decision to execute this Agreement, regardless of whether its lack of knowledge is the result of ignorance, oversight,
error, negligence, or any other cause.

 

17.Reaffirmation
of the Agreement. The Agreement as amended hereby and the Loan Documents remain in full force and effect.

 

[remainder
of page intentionally left blank]

 

    	 	5	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed and delivered this Amendment as of the date first hereinabove written.

 

	 	SYSOREX
    USA,
	 	formerly
known as Lilien Systems,

a California corporation 

	 	 	 
	 	By:	/s/
    Nadir Ali
	 	Name:	Nadir
Ali

	 	Title:	Chairman
	 	 	 
	 	SYSOREX
    GOVERNMENT SERVICES, INC.,
	 	a
    Virginia corporation
	 	 	 
	 	By:	/s/
    Wendy Loundermon
	 	Name:	Wendy
    Loundermon
	 	Title:	President
    and Chief Financial Officer
	 	 	 
	 	SYSOREX
    GLOBAL,
	 	formerly
    known as Sysorex Global Holdings Corp.,
	 	a
    Nevada corporation
	 	 	 
	 	By:	 /s/
    Nadir Ali
	 	Name:	Nadir
    Ali
	 	Title:	President

 

[signatures
continue on the following page]

 

AMENDMENT
NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT, WAIVER OF DEFAULTS, AND CONSENT

 

     

     

    

 

	 	WESTERN
    ALLIANCE BANK,
	 	an
Arizona Corporation 

	 	 	 
	 	By:	/s/
    David Feiock
	 	Name:	David
    Feiock
	 	Title:	Vice
        President

        

 

AMENDMENT NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT, WAIVER OF DEFAULTS, AND CONSENT

 

     

     

    

 

SCHEDULE
A

TO

AMENDMENT NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT

AND
WAIVER OF DEFAULTS

 

	Section
    of Business Financing Agreement	Required
    Performance	Actual
    Performance
	4.12(a)	Maintain
    Consolidated unrestricted cash balances at Lender at all times in an amount not less than $1,000,000, tested daily	Failed
    to comply through the date of the Sixth Amendment
	1.15	Repay
    the outstanding principal balance of the Term Advance B by June 30, 2016	The
    Term Advance B has not been repaid.
	1.11	Immediately
    repay any Overadvance	Overadvances
    existed from June 5, 2016 through July 8, 2016
	4.12(a)	Maintain
    an Asset Coverage Ratio not at any time less than 1.25 to 1.0, tested as at the end of each month.	Out
        of compliance as at June 30, 2016

                                                                                                                                                                    

        Out
        of compliance as at July 31, 2016

         

 

SCHEDULE A TO 

AMENDMENT NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT, WAIVER OF DEFAULTS, AND CONSENT

 

     

     

    

 

EXHIBIT
A

TO

AMENDMENT NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT

AND
WAIVER OF DEFAULTS

 

REPLACEMENT
FORM OF COMPLIANCE CERTIFICATE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE A TO 

AMENDMENT NUMBER SEVEN TO BUSINESS FINANCING AGREEMENT, WAIVER OF DEFAULTS, AND CONSENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}]]