Document:

NONE OF THE SECURITIES REPRESENTED HEREBY, NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE, HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO A U.S. PERSON (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE AND FOREIGN SECURITIES LAWS.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

WARRANT CERTIFICATE

bBOOTH, INC.

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID AT THE TIME OF EXPIRY (AS DEFINED HEREIN).

	
Warrant Certificate No.:  WC-2015-03-20-

	
Number of Warrants:

This is to certify that, for value received, [insert holder name], of [insert holder address] (the "Holder"), is the registered holder of  [insert number of warrants] () share purchase warrants (each, a "Warrant") of bBOOTH, INC. (the "Company"). Each Warrant will entitle the Holder, upon and subject to the terms and conditions attached to this certificate or any replacement certificate (in either case the "Warrant Certificate") as Appendix "A" (the "Terms and Conditions"), to acquire from the Company one fully paid and non-assessable share of common stock in the capital of the Company (each, a "Warrant Share") at a price of $0.10 per Share at any time prior to 5:00 p.m. (Pacific time) on March 20, 2018, subject to the Company's Right of Call as defined in the Terms and Conditions (the "Time of Expiry").

The Warrants are issued subject to the Terms and Conditions, and the Holder may exercise the right to purchase Warrant Shares only in accordance with the Terms and Conditions.

Nothing contained herein or in the Terms and Conditions will confer any right upon the Holder, or any other Person (as defined in the Terms and Conditions), to subscribe for or purchase any Warrant Shares at any time subsequent to the Time of Expiry, and, from and after such time, the Warrants and all rights under this Warrant Certificate will be void and of no value.

IN WITNESS WHEREOF the Company has caused this Warrant Certificate to be executed this 20th day of March, 2015.

bBOOTH, INC.

Per:      _____________________________________________                                                                

          Authorized Signatory

APPENDIX "A"

TERMS AND CONDITIONS

	1.	INTERPRETATION

	1.1	Definitions

In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith:

		(a)	"Business Day" means any day of the year other than Saturday, Sunday or any day on which banks are required or authorized to close in the State of California;

		(b)	"Company" means bBooth, Inc., until a successor corporation will have become such as a result of a Reorganization, and, thereafter, "Company" will mean such successor corporation;

		(c)	"Exchange" means the OTCQB Market of the OTC Markets Group, or such other stock exchange or quotation system on which the Shares may be principally traded or quoted at the applicable time;

		(d)	"Exercise Price" means $0.10 per Warrant Share, subject to adjustment as provided in Section 4.7;

		(e)	"Exercise Date" has the meaning given to such term in Section 4.2(a);

		(f)	"Holder" means the holder of the Warrants;

		(g)	"Issue Date" means March 20, 2015;

		(h)	"Person" means a natural person, corporation, limited liability corporation, unlimited liability corporation, joint stock corporation, partnership, limited partnership, limited liability partnership, trust, trustee, any unincorporated organization, joint venture or any other entity;

		(i)	"Reorganization" has the meaning given to such term in Section 4.7(a)(ii);

		(j)	"Shares" means the shares of common stock in the capital of the Company as constituted at the date hereof and any Shares resulting from any subdivision or consolidation of the Shares;

		(k)	"Subscription Form" has the meaning given to such term in Section 4.1(a);

		(l)	"Time of Expiry" means 5:00 pm (Pacific Time) on March 20, 2018;

		(m)	"VWAP" means either: (i) if the Shares are then listed or quoted on the Exchange, the volume weighted average price per Share of the Shares on the Exchange, or (ii) if the Shares are not then listed or quoted on the Exchange, the fair market value per Share as determined by: (A) an independent appraiser selected in good faith by the Holder and the Company or (B) as otherwise may be mutually agreed upon by the Holder and the Company;

 

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		(n)	"Warrant Certificate" means the Warrant Certificate attached to these Terms and Conditions;

		(o)	"Warrants" means the share purchase warrants of the Company represented by the Warrant Certificate; and

		(p)	"Warrant Shares" means the Shares issuable upon exercise of the Warrants.

	1.2	Gender

Words importing the singular number include the plural and vice versa, and words importing the masculine gender include the feminine and neuter genders.

	1.3	Interpretation not affected by Headings

The division of these Terms and Conditions into sections and the insertion of headings are for convenience of reference only and will not affect the construction or interpretation thereof.

	1.4	Applicable Law

The Warrants will be exclusively construed in accordance with the laws of the State of California. The Warrant Certificate and these Terms and Conditions are governed by the laws of the State of California and the federal laws of the United States applicable therein.

	1.5	Currency

Unless otherwise provided, all dollar amounts referred to in the Warrant Certificate and these Terms and Conditions are in lawful money of the United States of America.

	2.	ISSUE OF WARRANTS

	2.1	Additional Warrants

The Company may at any time and from time to time issue additional warrants or grant options or similar rights to purchase Shares.

	2.2	Warrants to Rank Pari Passu

All Warrants and additional warrants, options or similar rights to purchase Shares from time to time issued or granted by the Company will rank pari passu, whatever may be the actual dates of issue or grant thereof, or of the dates of the certificates by which they are evidenced.

	2.3	Replacement of Lost or Damaged Warrant Certificate

		(a)	If the Warrant Certificate becomes mutilated, lost, destroyed or stolen, the Company, at its discretion, may issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen, in exchange for, in place of, and upon cancellation of, such mutilated Warrant Certificate, or in lieu of, and in substitution for, such lost, destroyed or stolen Warrant Certificate.

 

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		(b)	The applicant for the issue of a new Warrant Certificate pursuant hereto will bear the cost of such issue and, in case of loss, destruction or theft, will furnish to the Company such evidence of ownership and of loss, destruction or theft of the Warrant Certificate so lost, destroyed or stolen as will be satisfactory to the Company in its discretion. Such applicant may also be required to furnish indemnity in amount and form satisfactory to the Company in its discretion, and will pay the reasonable charges of the Company in connection therewith.

	2.4	Holder Not a Shareholder

The holding of the Warrant Certificate will not constitute the Holder a shareholder of the Company, nor entitle it to any right or interest in respect thereof except as expressly provided in the Warrant Certificate.

	3.	NOTICE

	3.1	Notice to Holders

Any notice required or permitted to be given to the Holder will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Holder appearing on the Warrant Certificate or to such other address as the Holder may specify by notice in writing to the Company to the address set forth in Section 3.2, and any such notice will be deemed to have been given and received by the Holder: (i) if mailed, on the third Business Day following the mailing thereof; (ii) if by facsimile or other electronic communication, on successful transmission; or (iii) if delivered, on delivery, but if at the time of mailing, or between the time of mailing and the third Business Day thereafter, there is a strike, lockout or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered.

	3.2	Notice to the Company

Any notice required or permitted to be given to the Company will be in writing and may be given by prepaid registered post, electronic facsimile transmission or other means of electronic communication capable of producing a printed copy to the address of the Company set forth below or such other address as the Company may specify by notice in writing to the Holder to the address of the Holder appearing on the Warrant Certificate, and any such notice will be deemed to have been given and received by the Company: (i) if mailed, on the third Business Day following the mailing thereof; (ii) if by facsimile or other electronic communication, on successful transmission; or (iii) if delivered, on delivery, but if at the time of mailing, or between the time of mailing and the third Business Day thereafter, there is a strike, lockout or other labour disturbance affecting postal service, then the notice will not be effectively given until actually delivered.

Notices to the Company will be delivered to:

bBooth, Inc.

1157 North Highland Avenue, Suite C

Hollywood, CA  90037

Attn:Rory J. Cutaia

Email:rory@bbooth.com

with a copy (which will not constitute notice) to:

Clark Wilson LLP

Barristers and Solicitors

900 – 885 West Georgia Street

Vancouver, BC  V6C 3H1

Attn:            Virgil Hlus

Fax:            604.687.6314

 

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	4.	EXERCISE OF WARRANTS

	4.1	Method of Exercise of Warrants

The Holder may exercise its right to purchase the Warrant Shares at the Exercise Price at any time until the Time of Expiry by:

		(a)	providing the Company with the Warrant Certificate and a completed and executed subscription form, in the form attached as Appendix "B" hereto (the "Subscription Form"), for the number of Warrant Shares which the Holder wishes to purchase;

		(b)	surrendering the Warrant Certificate and the Subscription Form to the Company at the address set forth in Section 3.2; and

		(c)	either: (i) paying the appropriate Exercise Price for the number of Warrant Shares subscribed for, either by bank draft, certified cheque or money order, payable to the Company, and delivering such payment to the Company at the address set forth in Section 3.2, or by wire transfer to such account as may be provided by the Company to the Holder upon request, or (ii) indicating in the Subscription Form that the Holder intends to exercise the applicable Warrants by cashless exercise as provided for in Section 4.3.

	4.2	Effect of Exercise of Warrants

		(a)	On the first Business Day following the date the Company receives a duly executed Subscription Form and the Exercise Price for the number of Warrant Shares specified in the Subscription Form (the "Exercise Date"), the Warrant Shares so subscribed for will be deemed to have been issued and the Person(s) to whom such Warrant Shares have been deemed to be issued will be deemed to have become the holder (or holders) of record of such Warrant Shares on such date.

		(b)	As promptly as practicable after the Exercise Date and, in any event, within ten (10) Business Days of the Exercise Date, the Company will cause to be delivered to the Person in whose name the Warrant Shares so subscribed for are to be registered as specified in the Subscription Form, and courier to such Person at its respective address specified in the Subscription Form, a certificate for the appropriate number of fully paid and non-assessable Warrant Shares, which will not exceed that number which the Holder is entitled to purchase pursuant to the Warrant Certificate surrendered.

	4.3	Cashless Exercise.

If at any time after the date that is six months following the Issue Date, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then the Warrants may be exercised, in whole or in part, by means of a "cashless exercise"  pursuant to the following formula:

 

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X = Y(A-B)

       A

	where:                X    =	the number of Warrant Shares to be issued to the Holder upon the cashless exercise;

		Y   =	the number of Warrants to be exercised by way of cashless exercise;

		A    =	the VWAP per Share for the ten (10) Business Days immediately preceding the Exercise Date; and

		B     =	the Exercise Price at the time the Warrants are to be exercised.

	4.4	Subscription for Less Than Entitlement

The Holder may subscribe for and purchase a number of Warrant Shares less than the number which the Holder is entitled to purchase pursuant to the surrendered Warrant Certificate.  In the event of any purchase of a number of Warrant Shares less than the number which can be purchased pursuant to the Warrant Certificate, the Holder, upon exercise thereof, will be entitled to receive a new Warrant Certificate in respect of the balance of the Warrant Shares which the Holder was entitled to purchase pursuant to the surrendered Warrant Certificate and which were not then purchased.

	4.5	Warrants for Fractions of Warrant Shares

If, on exercise or partial exercise of any Warrant, the Holder is entitled to receive a fraction of a Warrant Share, such Warrant may be exercised in respect of such fraction only in combination with another Warrant or Warrants which, in the aggregate, entitle the Holder to receive a whole Warrant Share.

	4.6	Expiration of Warrants

The Holder agrees that, after the Time of Expiry, all rights under the Warrant Certificate and these Terms and Conditions will wholly cease and terminate and the Warrants will be void and of no further force and effect.

	4.7	Adjustment of Exercise Price

		(a)	The Exercise Price and the number of Warrant Shares deliverable upon the exercise of the Warrants will be subject to adjustment in the event of and in the manner following:

		(i)	if and whenever the Shares at any time outstanding are subdivided into a greater, or consolidated into a lesser, number of Shares, the Exercise Price will be decreased or increased proportionately as the case may be. Upon any such subdivision or consolidation, the number of Warrant Shares deliverable upon the exercise of the Warrants will be increased or decreased proportionately as the case may be; and

		(ii)	in the case of any capital reorganization or of any reclassification of the capital of the Company, or in the case of the consolidation, merger or amalgamation of the Company with or into any other company (in any case, a "Reorganization"), each Warrant will, after such Reorganization, be deemed to confer the right to purchase the number of Warrant Shares or other securities of the Company (or of the company resulting from such Reorganization) which the Holder would have been entitled to upon the Reorganization if the Holder had been a shareholder of the Company at the time of such Reorganization.

 

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		(b)	In the case of any Reorganization, appropriate adjustments will be made in the application of the provisions of this Section 4.7 relating to the rights and interest thereafter of the Holder so that the provisions of this Section 4.7 will be made applicable as nearly as reasonably possible to any Warrant Shares or other securities deliverable after the Reorganization on the exercise of the Warrants.

		(c)	The subdivision or consolidation of Shares at any time outstanding into a greater or lesser number of Shares (whether with or without par value) will not be deemed to be a Reorganization for the purposes of this Section 4.7.

		(d)	The adjustments provided for in this Section 4.7 are cumulative and will become effective immediately after the applicable record date or, if no record date is fixed, the effective date of the event which results in such adjustments.

	4.8	Determination of Adjustments

If any questions will at any time arise with respect to the Exercise Price or any adjustment provided for in Section 4.7, such questions will be conclusively determined by the independent firm of accountants duly appointed as auditors of the Company, or, if they decline to so act, by any other firm of certified public accountants registered with the Public Company Accounting Oversight Board that the Company may designate and who will have access to all appropriate records, and such determination will be binding upon the Company and the Holder.

	5.	WAIVER OF CERTAIN RIGHTS

The Holder, as part of the consideration for the issue of the Warrants, waives and will not have any right, cause of action or remedy now or hereafter in any jurisdiction against any past, present or future incorporator, shareholder, director or officer of the Company for the issue of Warrant Shares pursuant to the exercise of any Warrant, or on any covenant, agreement, representation or warranty by the Company herein contained or contained in the Warrant Certificate.

	6.	MODIFICATION OF TERMS AND CONDITIONS FOR CERTAIN PURPOSES

From time to time, the Company may, subject to the provisions herein, modify the Terms and Conditions for the purpose of correction or rectification of any ambiguities, defective provisions, errors or omissions.

	7.	TIME OF ESSENCE

Time will be of the essence hereof.

	8.	SUCCESSORS

This Warrant Certificate will enure to the benefit of, and will be binding upon, the Company and its successors.

	9.	WARRANTS NOT TRANSFERABLE

None of the Warrants, nor any rights attached to any of them, are transferable.

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APPENDIX B

SUBSCRIPTION FORM

	TO:	bBooth, Inc.

1157 North Highland Avenue, Suite C

 Hollywood, CA 90038

The undersigned holder of the within Warrant Certificate (the "Holder") hereby subscribes for:

		(a)	_________________ shares of common stock (each, a "Share") in the capital of bBooth, Inc. (the "Company) at an exercise price of $0.10 per Share, in which case this Subscription Form is accompanied by a certified cheque or bank draft payable to the Company, or the Holder has arranged for a wire transfer to such account as has been directed by the Company, for the whole amount of the purchase price of the Shares; or

		(b)	such number of Shares as is determined in accordance with the cashless exercise mechanism set out in Section 4.3 of the Terms and Conditions to which this Appendix B is attached (the "Terms and Conditions"),

in either case in accordance with the Terms and Conditions.

The Holder hereby directs that the Shares hereby subscribed for be registered and delivered as follows:

 

	
NAME(S) IN FULL

	 	
ADDRESS(ES)

	 	
NUMBER OF SHARES

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
 

TOTAL:

	 	 

(Please print the full name in which share certificates are to be issued, stating whether Mr., Mrs. or Miss is applicable).

DATED this _____ day of ______________________, 20___.

In the presence of:

___________________________

 Signature of Holder

___________________________

 Name of Holder (please print)

 

________________________________________________                    

                                                                

___________________________

 Address of Holder

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LEGENDS

The certificates representing the Shares acquired on the exercise of the Warrants will bear the following legends, if and as applicable, and all such other legends as may be required at the time of exercise under applicable securities laws:

NONE OF THE SECURITIES REPRESENTED HEREBY, NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE, HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO A U.S. PERSON (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE AND FOREIGN SECURITIES LAWS.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

INSTRUCTIONS FOR SUBSCRIPTION FORM

The signature to the Subscription Form must correspond in every particular with the name written upon the face of the Warrant Certificate without alteration or enlargement or any change whatever.  If there is more than one subscriber, all must sign.

In the case of Person(s) signing by agent or attorney or by personal representative(s), the authority of such agent, attorney or representative(s) to sign must be proven to the satisfaction of the Company.

If the Warrant Certificate and the Subscription Form are being sent by mail, they must be sent by registered mail.Exhibit 10.18

 

AMENDMENT NUMBER
THREE TO BUSINESS FINANCING AGREEMENT AND WAIVER OF DEFAULTS

 

 

This AMENDMENT
NUMBER THREE TO BUSINESS FINANCING AGREEMENT AND WAIVER OF DEFAULTS (this “Amendment”),
dated and effective as of December 31, 2014, is entered into by and among BRIDGE
BANK, NATIONAL ASSOCIATION
(“Lender”), on
the one hand,
and LILIEN SYSTEMS, a California corporation
(“Lilien”),  and
SYSOREX GOVERNMENT SERVICES, INC., a Virginia corporation (“SGSI”)
(Lilien and SGSI 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,
and 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 (as so amended, the “Agreement”);

 

B. 
Borrowers are in
default of the
provisions of the
Agreement set forth
on Schedule 1 attached hereto,
as at the dates indicated in such Schedule (the “Existing Defaults”).

 

C. 
Borrowers have requested
that Lender waive
the Existing Defaults,
and Lender has agreed with such
request, subject to the terms and conditions set forth in this Amendment.

 

NOW,  THEREFORE,
 in  consideration 
of  the  foregoing, 
the  parties  hereto 
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
2.2. A new clause
(h) is hereby
added to Section
2.2 of the Agreement, immediately
following clause (g) thereof, as follows:

 

	(h)		Waiver Fee. 
Borrowers shall pay
to Lender a
fully-earned non- refundable waiver fee in the amount of $51,216.55 (“Waiver
Fee”).  The Waiver
Fee shall be
due and payable
as follows: (i) $10,000 upon
Borrowers’ execution of
the Third Amendment, and (ii) $41,216.55
upon the earliest to occur of (x) Borrowers’ delivery of their monthly financial statements pursuant to Section 4.8(b)
of  this  Agreement 
for  the  fiscal 
month  ending March 31, 2015, (y) April 30, 2015, or (z) the occurrence of an
Event of Default; provided that Lender shall waive receipt of the second installment of the Waiver Fee if, and only, if,
(1) no Event of Default has occurred and is continuing as of Borrower’s fiscal month and quarter ended March 31, 2015, as
determined by Lender in its sole discretion based upon Borrowers’ financial statements and compliance certificate delivered
by Borrowers pursuant to Sections 4.8(b) and
(f), respectively, of this Agreement
and such other information available to Lender, and (2) no Event of Default has occurred and is continuing as of the date of Lender’s
determination pursuant to clause (1) of this Section 2.2(h).

 

3. Amendment
to Section 4.12(b). 
:Section 4.12(b) of
the Agreement is
hereby amended in its entirety as follows:

 

    	1

    	 

    

 

 

		(b)	Adjusted EBITDA for each fiscal quarter not at any time less than the amount
set forth in the table below opposite the applicable fiscal quarter:

 

	Fiscal Quarter Ending	
        Minimum Quarterly

        Adjusted EBITDA

	December 31, 2014	$125,000
	March 31, 2015 and each fiscal quarter ending thereafter	$200,000

 

4.
 Amendments to Section
12.1.  The following
new definitions are
hereby added to Section 12.1 of
the Agreement in alphabetical order:

 

“Adjusted EBITDA”
means Borrowers’ combined Net Income plus interest expense, taxes, depreciation expense, amortization expense, and non-cash,
non-recurring expenses, calculated in accordance with GAAP.

 

“Third Amendment”
means that certain Amendment Number Three to Business Financing Agreement and Waiver of Defaults, dated as of December 31,
2014, among Borrowers and Lender, amending this Agreement.

 

5.
 Replacement Exhibit A.
Exhibit A attached
to the Agreement
is hereby replaced
with Exhibit A attached to this Amendment.

6.
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.

7.
Conditions Precedent to
Effectiveness of Amendment.
 The effectiveness
of this Amendment and the waiver of the Existing Defaults set forth in Section
6 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 (i)
this Amendment, duly
executed by Borrowers, (ii) the
Acknowledgment  and  Agreement 
of  Guarantors  attached 
hereto,  duly  executed 
by  each Guarantor, and (iii) the Acknowledgment and Agreement of Creditors
attached hereto, duly executed by each Creditor;

(b)
 Lender shall have received the first installment of the Waiver Fee;

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

(d)
 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).

    	2

    	 

    

 

8.
 Representations  and 
Warranties.  In  order to
 induce  Lender 
to  enter  into 
this Amendment, each 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 in
the Agreement 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.

9.
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.

10.
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.

11.
No Other Waiver. 
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 (other than the Existing Defaults), whether or not known to Lender and whether
or not existing on the date of this Amendment.

12.
Release.

(a)
 Each Borrower, each Guarantor signing the Acknowledgment and Agreement of Guarantors
set forth below, and each Creditor signing the Acknowledgment and Agreement of Creditors set forth below, 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 such Borrower, such Guarantor, or such Creditor, 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, each
Guarantor signing the
Acknowledgment and Agreement
of Guarantors set forth below, and each Creditor signing the Acknowledgment
and Agreement of Creditors set forth below, 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.

 

    	3

    	 

    

 

(b)
 Each Borrower, each Guarantor signing the Acknowledgment and Agreement of Guarantors
set forth below, and each Creditor signing the Acknowledgment and Agreement of Creditors set forth below, 
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, each
Guarantor signing the
Acknowledgment and Agreement
of Guarantors set
forth below, and each Creditor signing the Acknowledgment and Agreement of Creditors
set forth below, 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.

13. 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]

 

    	4

    	 

    

 

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

 

	 	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

 

 

 

 

 

 

[Signatures continue on the following page].

 

    	5

    	 

    

 

 

	 	BRIDGE BANK, NATIONAL ASSOCIATION
	 	 
	 	 
	 	By: 	/s/ David Feiock
	 	 	Name: 
David Feiock
Title:  Assistant
Vice President

 

 

    	6

    	 

    

 

 

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS

 

The undersigned,
as guarantors of the obligations of LILIEN SYSTEMS, a California corporation (“Lilien”), and SYSOREX
GOVERNMENT SERVICES, INC., a Virginia corporation (“SGSI”)
(Lilien and SGSI are sometimes collectively referred to herein as “Borrowers”
and each individually as a “Borrower”), to BRIDGE
BANK, NATIONAL ASSOCIATION (“Lender”), pursuant to the separate
Guaranty of each of the undersigned (each, a “Guaranty”),
hereby (i) acknowledges receipt of the foregoing Amendment; (ii) consents to the terms (including without limitation the release
set forth in Section 12 of
the Amendment) and
execution thereof; (iii)
reaffirms all obligations
to Lender pursuant
to the terms of his Guaranty; and (iv) acknowledges that Lender may amend, restate, extend, renew or otherwise
modify the Loan
Documents and any
indebtedness or agreement
of Borrowers, or
enter into any agreement or extend additional or other credit accommodations,
without notifying or obtaining the consent of the undersigned and without impairing the obligations of the undersigned under her
or her Guaranty.

 

	 	SYSOREX FEDERAL, INC., 	 
	 	a Delaware corporation	 
	 	 	 
	 	By: /s/  Nadir Ali	 
	 	Name: 
Nadir Ali	 
	 	Title:  President	 
	 	 	 
	 	 	 
	 	SYSOREX GLOBAL HOLDINGS CORP.,	 
	 	a Nevada corporation	 
	 	 	 
	 	By: /s/  Nadir Ali	 
	 	Name:  Nadir Ali	 
	 	Title:  President	 
	 	 	 
	 	 	 
	 	SHOOM, INC.,	 
	 	a California corporation	 
	 	 	 
	 	By: /s/  Nadir Ali	 
	 	Name: Nadir Ali	 
	 	Title: Director	 
	 	 	 
	 	 	 
	 	AIRPATROL CORPORATION,
a	 
	 	Nevada corporation	 
	 	 	 
	 	By: /s/  Nadir Ali	 
	 	Name: Nadir Ali	 
	 	Title: Director	 

  

Acknowledgement and Agreement of Guarantors

 

    	7

    	 

    

 

 

ACKNOWLEDGMENT AND AGREEMENT OF CREDITORS

 

The undersigned,
as creditors of LILIEN SYSTEMS, a California corporation (“Lilien”),
and SYSOREX GOVERNMENT SERVICES, INC., a Virginia corporation (“SGSI”)
(Lilien and SGSI are sometimes collectively referred to herein as “Borrowers”
and each individually as a “Borrower”), subordinated to the obligations of Borrowers owing to BRIDGE
BANK, NATIONAL ASSOCIATION (“Lender”), pursuant to the separate
Subordination Agreement of each of the undersigned (each, a “Subordination Agreement”), hereby (i) acknowledges
receipt of the foregoing Amendment; (ii) consents to the terms (including without limitation the release set forth in Section 12
of the Amendment) and execution thereof; (iii) reaffirms all obligations to Lender pursuant to the terms of his Subordination Agreement;
and (iv) acknowledges that Lender may amend, restate, extend, renew or otherwise modify the Loan Documents and any indebtedness
or agreement of Borrowers, or enter into any agreement or extend additional or other credit accommodations, without notifying or
obtaining the consent of the undersigned and without impairing the obligations of the undersigned under her or her Subordination
Agreement.

 

 

	 	SYSOREX CONSULTING, INC.,	 
	 	a California corporation	 
	 	 	 
	 	By: /s/ Salam Qureishi
 	 
	 	Name: Salam Qureishi
	 
	 	Title:  Chairman	 
	 		 
	 	 	 
	 	/s/ Abdus Salam Qureishi	 
	 	Abdus Salam Qureishi, trustee of QUREISHI 1998	 
	 	FAMILY TRUST	 
	 	 	 
	 	 	 
	 	/s/ Bret R. Osborn	 
		BRET R. OSBORN	 
	 		 
	 	 	 
	 	/s/ Dhruv Gulati	 
	 	DHRUV GULATI	 
			 
	 	 	 
	 	/s/ Geoffrey I. Lilien	 
	 	GEOFFREY I. LILIEN	 
	 		 

  

 

    	8

    	 

    

 

SCHEDULE 1

TO

AMENDMENT NUMBER THREE TO BUSINESS FINANCING
AGREEMENT, AND WAIVER OF DEFAULTS

 

EXISTING DEFAULTS

 

	Section of Agreement	Required Performance	Actual Performance
	
        Section 4.12(b) – Performance to

        Plan
	
        Combined revenue not to deviate by more
        than 20% or $100,000 from the projections of combined revenue approved by Borrowers’ boards of directors with respect

        to the rolling three month period ended
        on the date of determination, tested as at the end of each month
	Failed to meet in respect of such required performance for the rolling three month periods ended on November 30, 2014
	
        Section 4.12(b) – Performance to

        Plan
	
        Combined Net Income not to deviate by
        more than 20% or

        $100,000 from the projections of combined
        Net Income approved by Borrowers’ boards of directors with respect to the rolling three month period ended on the date of
        determination, tested as at the end of each month
	
        Failed to meet in respect of such required
        performance for the rolling three month periods ended on July 31, 2014,

        August 31, 2014, September 30,

        2014, October 31, 2014, and

        November 30, 2014

 

    	9

    	 

    

 

EXHIBIT A TO

AMENDMENT NUMBER THREE TO BUSINESS
FINANCING AGREEMENT, AND WAIVER OF DEFAULTS

 

FORM OF COMPLIANCE CERTIFICATE

 

 

10

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