Document:

Exhibit
10.3

  

 

 

 

EMPLOYEE
MATTERS AGREEMENT

 

BY
AND BETWEEN

 

INPIXON

 

AND

 

SYSOREX,
INC.

 

DATED
AS OF AUGUST 31, 2018

  

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	ARTICLE
    I DEFINITIONS	3
	 	 	 
	Section
    1.01.	Definitions	3
	Section
    1.02.	Interpretation	7
	 	 	 
	ARTICLE
    II GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES	7
	 	 	 
	Section
    2.01.	General
    Principles	7
	Section
    2.02.	Service
    Credit	8
	Section
    2.03.	Adoption
    and Transfer and Assumption of Benefit Plans	9
	Section
    2.04.	Individual
    Agreements	10 
	 	 	 
	ARTICLE
    III ASSIGNMENT OF EMPLOYEES	10
	 	 	 
	Section
    3.01.	Assignment
    and Transfer of Employees	10
	Section
    3.02.	At-Will
    Status	11
	Section
    3.03.	Severance	11
	Section
    3.04.	Not
    a Change in Control	11
	 	 	 
	ARTICLE
    IV EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION	11
	 	 	 
	Section
    4.01.	Generally	11
	Section
    4.02.	Equity
    Incentive Awards	12
	Section
    4.03.	Employee
    Stock Purchase Plan	14
	Section
    4.04.	Non-Equity
    Incentive Plans	
	Section
    4.05.	Director
    Compensation	
	 	 	 
	ARTICLE
    V RETIREMENT PLANS	14
	 	 	 
	Section
    5.01.	Establishment
    of Plan	14
	Section
    5.02.	Rollover
    of Account Balances	14
	Section
    5.03.	Plan
    Fiduciaries	14
	 	 	 
	ARTICLE
    VI WELFARE BENEFIT PLANS	15 
	 	 	 
	Section
    6.01.	Welfare
    Plans	15
	Section
    6.02.	COBRA
    and HIPAA	16
	Section
    6.03.	Vacation,
    Holidays and Leaves of Absence	16
	Section
    6.04.	Severance
    and Unemployment Compensation	17
	Section
    6.05.	Workers’
    Compensation	17
	Section
    6.06.	Insurance
    Contracts	17
	Section
    6.07.	Third-Party
    Vendors	17
	 	 	 
	ARTICLE
    VII MISCELLANEOUS	17
	 	 	 
	Section
    7.01.	Information
    Sharing and Access	17
	Section
    7.02.	Preservation
    of Rights to Amend	19
	Section
    7.03.	Fiduciary
    Matters	19
	Section
    7.04.	Further
    Assurances	19
	Section
    7.05.	Counterparts;
    Entire Agreement; Corporate Power	19
	Section
    7.06.	Governing
    Law	20
	Section
    7.07.	Assignability	20
	Section
    7.08.	Third-Party
    Beneficiaries	21
	Section
    7.09.	Notices	21
	Section
    7.10.	Severability	22
	Section
    7.11.	Force
    Majeure	22
	Section
    7.12.	Headings	22
	Section
    7.13.	Survival
    of Covenants	22
	Section
    7.14.	Waivers
    of Default	23
	Section
    7.15.	Dispute
    Resolution	23
	Section
    7.16.	Specific
    Performance	23
	Section
    7.17.	Amendments	23
	Section
    7.18.	Interpretation	23
	Section
    7.19.	Limitations
    of Liability	23
	Section
    7.20.	Mutual
    Drafting	23

 

    	 	2	 

     

    

 

EMPLOYEE
MATTERS AGREEMENT

 

This
EMPLOYEE MATTERS AGREEMENT, dated as of August 31, 2018 (this “Agreement”), is by and between Inpixon, a Nevada
corporation (“Parent”), and Sysorex, Inc., a Nevada corporation (“Sysorex”).

 

R
E C I T A L S:

 

WHEREAS,
the board of directors of Parent (the “Parent Board”) has determined that it is in the best interests of Parent and
its stockholders to create a new publicly traded company that shall operate the Sysorex Business;

 

WHEREAS,
in furtherance of the foregoing, the Parent Board has determined that it is appropriate and desirable to separate the Sysorex
Business from the Parent Business (the “Separation”) and, following the Separation, to make a distribution, on a pro
rata basis, to holders of Parent Shares on the Record Date of all of the outstanding Sysorex Shares owned by Parent (the “Distribution”);

 

WHEREAS,
in order to effectuate the Separation and Distribution, Parent and Sysorex have entered into a Separation and Distribution Agreement,
dated as of August 7, 2018 (the “Separation and Distribution Agreement”);

 

WHEREAS,
in addition to the matters addressed by the Separation and Distribution Agreement, the Parties desire to enter into this Agreement
to set forth the terms and conditions of certain employment, compensation and benefit matters; and

 

WHEREAS,
the Parties acknowledge that this Agreement, the Separation and Distribution Agreement and the Ancillary Agreements represent
the integrated agreement of Parent and Sysorex relating to the Separation and Distribution, are being entered into together and
would not have been entered into independently.

 

NOW,
THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound, hereby agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.01.Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below. Any terms
that are capitalized but not otherwise defined herein shall have the respective meanings assigned to them in the Separation and
Distribution Agreement.

  

    	 	3	 

     

    

 

“Agreement”
shall have the meaning set forth in the Preamble to this Agreement and shall include all Schedules hereto and all amendments,
modifications, and changes hereto entered into pursuant to Section 7.17.

 

“Benefit
Plan” shall mean any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement providing for
benefits, perquisites or compensation of any nature from an employer to any Employee, or to any family member, dependent, or beneficiary
of any such Employee, including cash or deferred arrangement plans, profit sharing plans, post-employment programs, pension plans,
thrift plans, supplemental pension plans, welfare plans, stock option, stock purchase, stock appreciation rights, restricted stock,
restricted stock units, performance stock units, other equity-based compensation and contracts, agreements, policies, practices,
programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits,
change in control protections or benefits, travel and accident, life, accidental death and dismemberment, disability and accident
insurance, tuition reimbursement, adoption assistance, travel reimbursement, vacation, sick, personal or bereavement days, leaves
of absences and holidays; provided, however, that the term “Benefit Plan” does not include any government-sponsored
benefits, such as workers’ compensation, unemployment or any similar plans, programs or policies or Individual Agreements.

 

“COBRA”
shall mean the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq. of ERISA and at
Section 4980B of the Code.

 

“Distribution”
shall have the meaning set forth in the Recitals.

 

“Effective
Time” shall have the meaning set forth in the Separation and Distribution Agreement.

 

“Employee”
shall mean any Parent Employee or Sysorex Employee.

 

“ERISA”
shall mean the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Former
Employee” shall mean any individual who is a former employee of the Parent Group as of immediately prior to the Effective
Time.

 

“HIPAA”
shall mean the U.S. Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations promulgated thereunder.

 

“Individual
Agreement” shall mean any individual (a) employment contract, (b) retention, severance or change in control agreement, (c)
expatriate (including any international assignee) contract or agreement (including agreements and obligations regarding repatriation,
relocation, equalization of Taxes and living standards in the host country), or (d) other agreement containing restrictive covenants
(including confidentiality, non-competition and non-solicitation provisions) between a member of the Parent Group and a Sysorex
Employee, as in effect immediately prior to the Effective Time.

  

    	 	4	 

     

    

 

“IRS”
shall mean the U.S. Internal Revenue Service.

 

“Parent”
shall have the meaning set forth in the Preamble.

 

“Parent
401(k) Plan” shall mean the 401(k) Plan to be established by Parent at or after the Effective Time.

 

“Parent
Benefit Plan” shall mean any Benefit Plan established, sponsored or maintained by Parent at or after the Effective Time.

 

“Parent
Compensation Committee” shall mean the Compensation Committee of the Parent Board.

 

“Parent
Employees” shall have the meaning set forth in Section 3.01.

 

“Parent
Option Award” shall mean an award of options to purchase Parent Shares granted pursuant to the Parent Stock Incentive Plan
that is outstanding as of immediately prior to the Effective Time.

 

“Parent
Ratio” shall mean the quotient obtained by dividing (a) the Pre-Separation Parent Stock Value by (b) the Post-Separation
Parent Stock Value.

 

“Parent
Stock Incentive Plan” shall mean the Amended and Restated 2011 Employee Stock Incentive Plan.

 

“Parties”
shall mean the parties to this Agreement.

 

“Post-Separation
Parent Option Award” shall mean a Parent Option Award adjusted as of the Effective Time in accordance with Section 4.02(a).

 

“Post-Separation
Parent Stock Value” shall mean the simple average of the closing per-share price of Parent Shares trading on the Nasdaq
Capital Market for each of the first 5 full Trading Sessions immediately after the Effective Time.

 

“Pre-Separation
Parent Stock Value” shall mean the closing per-share price of Parent Shares trading “regular way with due bills”
on the Nasdaq Capital Market as of the last Trading Session prior to the Effective Time.

 

“Separation”
shall have the meaning set forth in the Recitals.

  

    	 	5	 

     

    

 

“Separation
and Distribution Agreement” shall have the meaning set forth in the Recitals to this Agreement.

 

“Sysorex”
shall have the meaning set forth in the Preamble.

 

“Sysorex
401(k) Plan” shall mean the Sysorex USA 401(k) Plan, established by Sysorex prior to the Effective Time.

 

“Sysorex
Benefit Plan” shall mean any Benefit Plan established, sponsored, maintained or contributed to by a member of the Sysorex
Group as of or prior to the Effective Time.

 

“Sysorex
Board” shall mean the Board of Directors of Sysorex.

 

“Sysorex
Employees” shall have the meaning set forth in Section 3.01.

 

“Sysorex
Option Award” shall mean an award of options to purchase Sysorex Shares assumed by Sysorex pursuant to the Sysorex Stock
Incentive Plan in accordance with Section 4.02(a).

 

“Sysorex
Ratio” shall mean the quotient obtained by dividing (a) the Pre-Separation Parent Stock Value by (b) the Sysorex Stock Value.

 

“Sysorex
Stock Incentive Plan” shall mean the Sysorex 2018 Equity Incentive Plan, as established by Sysorex as of the Effective Time
pursuant to Section 4.01.

 

“Sysorex
Stock Value” shall mean the simple average of the closing per-share price of Sysorex Shares trading on the OTCQB for each
of the first 5 full Trading Sessions immediately after the Effective Time.

 

“Sysorex
Welfare Plan” shall mean a Welfare Plan established, sponsored, maintained or contributed to by any member of the Sysorex
Group for the benefit of Sysorex Employees.

 

“Tax”
shall have the meaning set forth in the Tax Matters Agreement.

 

“Trading
Session” shall mean the period of time during any given calendar day, commencing with the determination of the opening price
on the Nasdaq Capital Market, as to the Parent Shares, or the OTCQB, as to the Sysorex Shares, and ending with the determination
of the closing price on the Nasdaq Capital Market or the OTCQB, as applicable, in which trading in the Parent Shares or the Sysorex
Shares, as applicable, is permitted.

 

“Transferred
Director” shall mean each Sysorex non-employee director as of the Effective Time who served as a non-employee director on
the Parent Board immediately prior to the Effective Time.

  

    	 	6	 

     

    

 

“Welfare
Plan” shall mean any “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan”
under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical,
prescription drug, dental, vision, mental health, substance abuse and retiree health), disability benefits, or life, accidental
death and dismemberment, and business travel insurance, pre-Tax premium conversion benefits, dependent care assistance programs,
employee assistance programs, paid time-off programs, contribution funding toward a health savings account, flexible spending
accounts, supplemental unemployment benefits or severance.

 

Section
1.02.Interpretation. Section 10.15 of the Separation and Distribution Agreement is hereby incorporated by reference.

 

ARTICLE
II

 

GENERAL
PRINCIPLES FOR ALLOCATION OF LIABILITIES

 

Section
2.01.General Principles.

 

(a) Acceptance
and Assumption of Sysorex Liabilities. Except as otherwise provided by this Agreement, on or prior to the Effective Time,
but in any case prior to the Distribution, Sysorex and the applicable Sysorex Designees shall accept, assume and agree faithfully
to perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms (each of which shall
be considered a Sysorex Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which
they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are
asserted or determined (including any Liabilities arising out of claims made by Parent’s or Sysorex’s respective directors,
officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the Parent Group or the Sysorex
Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise
from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the Parent Group or the Sysorex Group,
or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:

 

(i) any
and all wages, salaries, incentive compensation, equity compensation, commissions, bonuses and any other employee compensation
or benefits payable to or on behalf of any Sysorex Employees after the Effective Time, without regard to when such wages, salaries,
incentive compensation, equity compensation, commissions, bonuses or other employee compensation or benefits are or may have been
awarded or earned;

 

(ii) any
and all Liabilities whatsoever with respect to claims under a Sysorex Benefit Plan, taking into account the Sysorex Benefit Plan’s
assumption of Liabilities with respect to Sysorex Employees that were originally the Liabilities of the corresponding Parent Benefit
Plan with respect to periods prior to the Effective Time; and

 

(iii) any
and all Liabilities expressly assumed or retained by any member of the Sysorex Group pursuant to this Agreement.

  

    	 	7	 

     

    

 

(b) Acceptance
and Assumption of Parent Liabilities. Except as otherwise provided by this Agreement, on or prior to the Effective Time, but
in any case prior to the Distribution, Parent and certain members of the Parent Group designated by Parent shall accept, assume
and agree faithfully to perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms
(each of which shall be considered a Parent Liability), regardless of when or where such Liabilities arose or arise, or whether
the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such
Liabilities are asserted or determined (including any Liabilities arising out of claims made by Parent’s or Sysorex’s
respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the Parent
Group or the Sysorex Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from
or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the Parent Group
or the Sysorex Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:

 

(i) any
and all wages, salaries, incentive compensation, equity compensation, commissions, bonuses and any other employee compensation
or benefits payable to or on behalf of any Parent Employees and Former Employees after the Effective Time, without regard to when
such wages, salaries, incentive compensation, equity compensation, commissions, bonuses or other employee compensation or benefits
are or may have been awarded or earned;

 

(ii) any
and all Liabilities whatsoever with respect to claims under a Parent Benefit Plan, taking into account a corresponding Sysorex
Benefit Plan’s assumption of Liabilities with respect to Sysorex Employees that were originally the Liabilities of such
Parent Benefit Plan with respect to periods prior to the Effective Time; and

 

(iii) any
and all Liabilities expressly assumed or retained by any member of the Parent Group pursuant to this Agreement.

 

(c) Unaddressed
Liabilities. To the extent that this Agreement does not address particular Liabilities under any Benefit Plan and the Parties
later determine that they should be allocated in connection with the Distribution, the Parties shall agree in good faith on the
allocation, taking into account the handling of comparable Liabilities under this Agreement.

 

Section
2.02.Service Credit. As of the Effective Time, the Sysorex Benefit Plans shall, and Sysorex shall cause each member of
the Sysorex Group to, recognize for each Sysorex Employee who is employed immediately following the Effective Time by a member
of the Sysorex Group, full service with Parent or any of its Subsidiaries or predecessor entities at or before the Effective Time,
to the same extent that such service was recognized by Parent for similar purposes prior to the Effective Time as if such full
service had been performed for a member of the Sysorex Group, for purposes of eligibility, vesting and determination of level
of benefits under any such Sysorex Benefit Plan. As of the Effective Time, the Parent Benefit Plans shall, and Parent shall cause
each member of the Parent Group to, recognize for each Parent Employee who is employed immediately following the Effective Time
by a member of the Parent Group, full service with Sysorex or any of its Subsidiaries or predecessor entities at or before the
Effective Time, to the same extent that such service was recognized by Sysorex for similar purposes prior to the Effective Time
as if such full service had been performed for a member of the Parent Group, for purposes of eligibility, vesting and determination
of level of benefits under any such Parent Benefit Plan.

  

    	 	8	 

     

    

 

Section
2.03.Adoption and Transfer and Assumption of Benefit Plans.

 

(a) Adoption
by Parent of Benefit Plans. As of no later than the Effective Time or as soon thereafter as is practicable, Parent shall adopt
Benefit Plans (and related trusts, if applicable) as contemplated by, and in accordance with, the terms of this Agreement.

 

(b) Plans
Not Required to Be Adopted. With respect to any Benefit Plan not listed or otherwise addressed in this Agreement, the Parties
shall agree in good faith on the treatment of such plan taking into account the handling of any comparable plan under this Agreement
and, notwithstanding that Parent shall not have an obligation to continue to maintain any such plan with respect to the provision
of future benefits from and after the Effective Time, Parent shall remain obligated to pay or provide any previously accrued or
incurred benefits to the Parent Employees consistent with Section 2.01(b) of this Agreement.

 

(c) Information
and Operation. Each Party shall use its commercially reasonable efforts to provide the other Party with information describing
each Benefit Plan election made by an Employee or Former Employee that may have application to such Party’s Benefit Plans
from and after the Effective Time, and each Party shall use its commercially reasonable efforts to administer its Benefit Plans
using those elections. Each Party shall, upon reasonable request, use its commercially reasonable efforts to provide the other
Party and the other Party’s respective Affiliates, agents, and vendors all information reasonably necessary to the other
Party’s operation or administration of its Benefit Plans.

 

(d) No
Duplication or Acceleration of Benefits. Notwithstanding anything to the contrary in this Agreement, the Separation and Distribution
Agreement or any Ancillary Agreement, no participant in any Benefit Plan shall receive service credit or benefits to the extent
that receipt of such service credit or benefits would result in duplication of benefits provided to such participant by the corresponding
Benefit Plan or any other plan, program or arrangement sponsored or maintained by a member of the Group that sponsors the corresponding
Benefit Plan. Furthermore, unless expressly provided for in this Agreement, the Separation and Distribution Agreement or in any
Ancillary Agreement or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate
vesting distributions or entitlements under any Benefit Plan sponsored or maintained by a member of the Parent Group or member
of the Sysorex Group on the part of any Employee or Former Employee.

  

    	 	9	 

     

    

 

(e) Transition
Services. The Parties acknowledge that the Parent Group or the Sysorex Group may provide administrative services for certain
of the other Party’s compensation and benefit programs for a transitional period. The Parties agree to enter into a business
associate agreement (if required by HIPAA or other applicable health information privacy Laws) in connection with such services.

 

(f) Beneficiaries.
References to Parent Employees, Sysorex Employees, Former Employees, and current and former non-employee directors of either Parent
or Sysorex, shall be deemed to refer to their beneficiaries, dependents, survivors and alternate payees, as applicable.

 

Section
2.04.Individual Agreements.

 

(a) Assignment
by Sysorex. To the extent necessary, Sysorex shall assign, or cause an applicable member of the Sysorex Group to assign, to
Parent or another member of the Parent Group, as designated by Parent, all Individual Agreements, with such assignment to be effective
as of no later than the Effective Time; provided, however, that to the extent that assignment of any such Individual Agreement
is not permitted by the terms of such agreement or by applicable Law, effective as of the Effective Time, each member of the Parent
Group shall be considered to be a successor to each member of the Sysorex Group for purposes of, and a third-party beneficiary
with respect to, such Individual Agreement, such that each member of the Parent Group shall enjoy all of the rights and benefits
under such agreement (including rights and benefits as a third-party beneficiary), with respect to the business operations of
the Parent Group; provided, further, that in no event shall Sysorex be permitted to enforce any Individual Agreement (including
any agreement containing non-competition or non-solicitation covenants) against a Parent Employee for action taken in such individual’s
capacity as a Parent Employee other than on behalf of Parent Group as requested by Parent Group in its capacity as a third-party
beneficiary.

 

(b) Assumption
by Parent. Effective as of the Effective Time, Parent shall assume and honor any individual agreement to which any Parent
Employee is a party with any member of the Sysorex Group, including any Individual Agreement described in subsection (a) above.

 

ARTICLE
III

 

ASSIGNMENT
OF EMPLOYEES

 

Section
3.01.Assignment and Transfer of Employees. Effective as of the Effective Time and except as otherwise agreed by the Parties,
(a) the Parties shall have taken such actions as are necessary to ensure that each individual who is intended to be an employee
of the Sysorex Group as of immediately after the Effective Time (including any such individual who is not actively working as
of the Effective Time as a result of an illness, injury or leave of absence approved by the Parent Human Resources department
or otherwise taken in accordance with applicable Law) (collectively, the “Sysorex Employees”) is employed by a member
of the Sysorex Group as of immediately after the Effective Time, and (b) the Parties shall have taken such actions as are necessary
to ensure that each individual who is intended to be an employee of the Parent Group as of immediately after the Effective Time
(including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave
of absence approved by the Parent Human Resources department or otherwise taken in accordance with applicable Law) and any other
individual employed by the Parent Group as of the Effective Time who is not a Sysorex Employee (collectively, the “Parent
Employees”) is employed by a member of the Parent Group as of immediately after the Effective Time. Each of the Parties
agrees to execute, and to seek to have the applicable Employees execute, such documentation, if any, as may be necessary to reflect
such assignment and/or transfer, including but not limited to the Employee Transition
Agreement in substantially the form attached here to as Exhibit 3.01 pursuant to which individuals that are intended to be Parent
Employees following the Effective Time may effectively be transferred to work for the Parent Group for a transitional period or
other mutually satisfactory written agreement.

 

    	 	10	 

     

    

 

Section
3.02.At-Will Status. Nothing in this Agreement shall create any obligation on the part of any member of the Parent Group
or any member of the Sysorex Group to (a) continue the employment of any Employee or permit the return from a leave of absence
for any period after the date of this Agreement (except as required by applicable Law) or (b) change the employment status of
any Employee from “at-will,” to the extent that such Employee is an “at-will” employee under applicable
Law.

 

Section
3.03.Severance. The Parties acknowledge and agree that, except as required by applicable Law, the Separation, Distribution
and the assignment, transfer or continuation of the employment of Employees as contemplated by this Section 3.03 shall not be
deemed an involuntary termination of employment entitling any Sysorex Employee or Parent Employee to severance payments or benefits.

 

Section
3.04.Not a Change in Control. The Parties acknowledge and agree that neither the consummation of the Separation, Distribution
nor any transaction contemplated by this Agreement, the Separation and Distribution Agreement or any other Ancillary Agreement
shall be deemed a “change in control,” “change of control,” or term of similar import for purposes of
any Benefit Plan sponsored or maintained by any member of the Parent Group or member of the Sysorex Group.

 

ARTICLE
IV

 

EQUITY,
INCENTIVE AND EXECUTIVE COMPENSATION

 

Section
4.01.Generally. Each Parent Option Award that is outstanding as of immediately prior to the Effective Time shall be adjusted
as described below; provided, however, effective immediately prior to the Effective Time, the Parent Compensation Committee may
provide for different adjustments with respect to some or all Parent Option Awards to the extent that the Parent Compensation
Committee deems such adjustments necessary and appropriate. Any adjustments made by the Parent Compensation Committee pursuant
to the foregoing sentence shall be deemed incorporated by reference herein as if fully set forth below and shall be binding on
the Parties and their respective Affiliates. Before the Effective Time, the Sysorex Stock Incentive Plan shall be established,
with such terms as are necessary to permit the implementation of the provisions of Section 4.02.

  

    	 	11	 

     

    

 

Section
4.02.Treatment of Option Awards.

 

(a) Option
Awards. Each Parent Option Award that is outstanding as of immediately prior to the Effective Time shall be treated as follows:

 

(i) Parent
Employees, Former Employees and Directors. If the holder is a Parent Employee, Former Employee or a non-employee director
of Parent (other than a Transferred Director), such award shall be converted, as of the Effective Time, into a Post-Separation
Parent Option Award and shall, except as otherwise provided in this Section 4.02, be subject to the same terms and conditions
(including with respect to vesting and expiration) after the Effective Time as were applicable to such Parent Option Award immediately
prior to the Effective Time; provided, however, that from and after the Effective Time:

 

(A) the
number of Parent Shares subject to such Post-Separation Parent Option Award shall be equal to the product, rounded down to the
nearest whole share, of (I) the number of Parent Shares subject to the corresponding Parent Option Award immediately prior to
the Effective Time, multiplied by (II) the Parent Ratio; and

 

(B) the
per share exercise price of such Post-Separation Parent Option Award shall be equal to the quotient, rounded up to the nearest
cent, of (I) the per share exercise price of the corresponding Parent Option Award immediately prior to the Effective Time, divided
by (II) the Parent Ratio.

 

Notwithstanding
anything to the contrary in this Section 4.02(a)(i), the exercise price, the number of Parent Shares subject to each Post-Separation
Parent Option Award and the terms and conditions of exercise of such options shall be determined in a manner consistent with the
requirements of Section 409A of the Code.

 

(ii) Sysorex
Employees and Directors. If the holder is a Sysorex Employee or a Transferred Director, such award shall be converted, as
of the Effective Time, into a Sysorex Option Award and shall, except as otherwise provided in this Section 4.02, be subject to
the same terms and conditions (including with respect to vesting and expiration) after the Effective Time as were applicable to
such Parent Option Award immediately prior to the Effective Time; provided, however, that from and after the Effective Time:

 

(A) the
number of Parent Shares subject to such Sysorex Option Award shall be equal to the product, rounded down to the nearest whole
share, of (I) the number of Parent Shares subject to the corresponding Parent Option Award immediately prior to the Effective
Time, multiplied by (II) the Sysorex Ratio; and

 

(B) the
per share exercise price of such Sysorex Option Award shall be equal to the quotient, rounded up to the nearest cent, of (I) the
per share exercise price of the corresponding Parent Option Award immediately prior to the Effective Time, divided by (II) the
Sysorex Ratio.

  

    	 	12	 

     

    

 

Notwithstanding
anything to the contrary in this Section 4.02(a)(ii), the exercise price, the number of Sysorex Shares subject to each Sysorex
Option Award and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements
of Section 409A of the Code.

 

(b) Settlement;
Tax Reporting and Withholding.

 

(i) Except
as otherwise provided in this Section 4.02(b), after the Effective Time, Post-Separation Parent Option Awards, regardless of by
whom held, shall be settled by Parent, and Sysorex Option Awards, regardless of by whom held, shall be settled by Sysorex.

 

(ii) Upon
the vesting, payment or settlement, as applicable, of Sysorex Option Awards, Sysorex shall be solely responsible for ensuring
the satisfaction of all applicable Tax withholding requirements on behalf of each Sysorex Employee. Upon the vesting, payment
or settlement, as applicable, of Post-Separation Parent Option Awards, Parent shall be solely responsible for ensuring the satisfaction
of all applicable Tax withholding requirements on behalf of each Parent Employee or Former Employee. Following the Effective Time,
Parent shall be responsible for all income Tax reporting in respect of Post-Separation Parent Option Awards held by Parent Employees,
Former Employees and individuals who are or were Parent non-employee directors, and Sysorex shall be responsible for all income
Tax reporting in respect of Sysorex Option Awards held by Sysorex Employees and Transferred Directors.

 

(c) Cooperation.
Each of the Parties shall establish an appropriate administration system in order to administer, in an orderly manner, (i) exercises
of vested Post-Separation Parent Options and Sysorex Options, (ii) the vesting and forfeiture of unvested Post-Separation Parent
Option Awards and Sysorex Option Awards, and (iii) the withholding and reporting requirements with respect to all awards. Each
of the Parties shall work together to unify and consolidate all indicative data and payroll and employment information on regular
timetables and make certain that each applicable Person’s data and records in respect of such awards are correct and updated
on a timely basis. The foregoing shall include employment status and information required for vesting and forfeiture of awards
and Tax withholding/remittance, compliance with trading windows and compliance with the requirements of the Exchange Act and other
applicable Laws.

 

(d) Registration
and Other Regulatory Requirements. Sysorex agrees to file Forms S-1 or S-8 registration statements, as appropriate, with respect
to, and to cause to be registered pursuant to the Securities Act, the Sysorex Shares authorized for issuance under the Sysorex
Stock Incentive Plan, as required pursuant to the Securities Act, not later than the Effective Time and in any event before the
date of issuance of any Sysorex Shares pursuant to the Sysorex Stock Incentive Plan. The Parties shall take such additional actions
as are deemed necessary or advisable to effectuate the foregoing provisions of this Section 4.02(d), including compliance with
securities Laws and other legal requirements associated with equity compensation awards in affected non-U.S. jurisdictions. Parent
agrees to facilitate the adoption and approval of the Sysorex Stock Incentive Plan consistent with the requirements of Treasury
Regulations Section 1.162-27(f)(4)(iii).

  

    	 	13	 

     

    

 

Section
4.03.Director Compensation. Parent shall be responsible for the payment of any fees for service on the Parent Board that
are earned at, before, or after the Effective Time, and Sysorex shall not have any responsibility for any such payments. With
respect to any Sysorex non-employee director, Sysorex shall be responsible for the payment of any fees for service on the Sysorex
Board that are earned at any time after the Effective Time and Parent shall not have any responsibility for any such payments.

 

ARTICLE
V

 

RETIREMENT
PLANS

 

Section
5.01.Establishment of Plan. As soon as practicable after the Distribution Date, the Parent Board shall adopt and establish
the Parent 401(k) Plan and a related trust, which shall be intended to meet the qualification requirements of Section 401(a) of
the Code (including under Sections 401(k) and (m) of the Code) including the safe-harbor requirements of Section 401(k)(12) of
the Code. Parent may make such changes, modifications or amendments to the Parent 401(k) Plan as may be required by applicable
Law or as are necessary and appropriate to reflect the Separation or which result from vendor limitations. As soon as practicable
after the Distribution Date, Parent shall provide Sysorex with (a) a copy of the Parent 401(k) Plan and related trust and applicable
IRS volume submitter approval or other IRS favorable determination letter with respect to the plan and (b) a copy of certified
resolutions of the Parent Board (or its authorized committee or other delegate) evidencing adoption of the Parent 401(k) Plan
and related trust and the obligations described in Section 5.02.

 

Section
5.02.Transfer of Account Balances. Parent Employees shall be eligible to participate in the Parent 401(k) Plan as of the
effective date of the plan to the extent that they were eligible to participate in the Sysorex 401(k) Plan as of immediately prior
to the Effective Time. As soon as reasonably practicable following the effective date of the Parent 401(k) Plan, Sysorex shall
cause the Sysorex 401(k) Plan to transfer to the Parent 401(k) Plan the account balances of Parent Employees, whether vested or
non-vested, in the form of cash (or, in the case of loans, notes).

 

Section
5.03.Plan Fiduciaries. For all periods on and after the Effective Time, the Parties agree that the applicable fiduciaries
of each of the Parent 401(k) Plan and the Sysorex 401(k) Plan, respectively, shall have the authority with respect to the Parent
401(k) Plan and the Sysorex 401(k) Plan, respectively, to determine the investment alternatives, the terms and conditions with
respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA and the terms
of the applicable plan documents.

  

    	 	14	 

     

    

 

ARTICLE
VI

 

WELFARE
BENEFIT PLANS

 

Section
6.01.Welfare Plans.

 

(a) Continued
Participation in Sysorex Welfare Plans. For the period beginning on the date of the Distribution and ending on December
31, 2018 (or such later date as may be required under COBRA in the case of Parent Employees or former Parent Employees
(or such Parent Employee’s or former Parent Employee’s eligible dependents) who have a “qualifying event”
for the purposes of COBRA on or prior to the date of Distribution) (the “Participation Period”), (i) Parent
Employees and former Parent Employees who participate in the Welfare Plans identified on Schedule 6.01(a) (such plans,
the “Participation Period Plans”), and (ii) individuals who become employed by Parent who would become eligible
to participate in the Participation Period Plans had the Distribution not occurred, shall continue to participate or begin to
participate, as applicable in such Participation Period Plans during the Participation Period on the terms set forth in such Participation
Period Plans. The Parties acknowledge and agree that, as of December 31, 2018, the Parent Employees who remain Parent Employees
as of that date shall cease participation in the Sysorex Welfare Plans and, effective January 1, 2019, , such employees shall
commence participation in the Parent Welfare Plans. To the extent the Participation Period applicable to a Parent Employee (or
such Parent Employee’s eligible dependents) who experiences a “qualifying event” for the purposes of COBRA after
the date of Distribution would otherwise extend beyond December 31, 2018, such Parent Employee shall become eligible for benefits
solely pursuant to the Parent Welfare Plans, in accordance with COBRA and consistent with the terms generally available to active
Parent Employees, as of January 1, 2019.

 

(b) Waiver
of Conditions; Benefit Maximums. Parent has and shall continue to use commercially reasonable efforts to cause the Parent
Welfare Plans to:

 

(i) with
respect to initial enrollment, waive (A) all exclusions, and service conditions with respect to participation and coverage requirements
applicable to any Parent Employee, other than limitations that were in effect with respect to the Parent Employee under the applicable
Sysorex Welfare Plan as of immediately prior to the Distribution Date, and (B) any waiting period limitation or evidence of insurability
requirement applicable to a Parent Employee other than limitations or requirements that were in effect with respect to such Parent
Employee under the applicable Sysorex Welfare Plans as of immediately prior to the Distribution Date; and

 

(ii) take
into account (A) with respect to aggregate annual or similar maximum benefits available under the Parent Welfare Plans, a Parent
Employee’s prior claim experience under the Sysorex Welfare Plans and any Benefit Plan that provides leave benefits; and
(B) any eligible expenses incurred by a Parent Employee and his or her covered dependents during the portion of the plan year
of the applicable Sysorex Welfare Plan ending as of the Distribution Date to be taken into account under such Parent Welfare Plan
for purposes of satisfying all deductible, coinsurance, and maximum out-of-pocket requirements applicable to such Parent Employee
and his or her covered dependents for the applicable plan year to the same extent as such expenses were taken into account by
Sysorex for similar purposes prior to the Distribution Date as if such amounts had been paid in accordance with such Parent Welfare
Plan.

   

    	 	15	 

     

    

 

(d) Allocation
of Welfare Plan Assets and Liabilities.

 

(i) Except
as otherwise provided in this Article VI, effective as of the Effective Time, the Parent Group shall retain or assume, as applicable,
and be responsible for all Assets (including any insurance contracts, policies or other funding vehicles) and Liabilities relating
to the Parent Welfare Plans, regardless of when arising, and the Sysorex Group shall retain or assume, as applicable, and be responsible
for all Assets (including any insurance contracts, policies or other funding vehicles) and Liabilities relating to the Sysorex
Welfare Plans, regardless of when arising.

 

(ii) For
these purposes, a claim or Liability is deemed to be incurred: (A) with respect to medical, dental, vision and/or prescription
drug benefits, upon the rendering of health services giving rise to such claim or Liability; (B) with respect to life insurance,
accidental death and dismemberment and business travel accident insurance, upon the occurrence of the event giving rise to such
claim or Liability; and (C) with respect to disability benefits, upon the date of an Employee’s disability, as determined
by the disability benefit insurance carrier or claim administrator, giving rise to such claim or Liability.

 

Section
6.02.COBRA. The Sysorex Group shall be responsible for complying with, and providing coverage pursuant to, the health
care continuation requirements of COBRA, and the corresponding provisions of the Sysorex Welfare Plans with respect to any Sysorex
Employees or Former Employees (and their covered dependents) who incur a qualifying event under COBRA before, as of, or after
the Distribution Date. Effective January 1, 2019, the Parent Group shall assume responsibility for complying with, and providing
coverage pursuant to, the health care continuation requirements of COBRA, and the corresponding provisions of the Parent Welfare
Plans with respect to any Parent Employees (and their covered dependents) who incur a qualifying event or loss of coverage under
the Parent Welfare Plans after the Distribution Date. For purposes of this Section 6.02, any Former Employee who participated
in the Sysorex Welfare Plans as of the date of such Former Employee’s qualifying event under COBRA shall be considered a
Sysorex Employee. The Parties agree that the consummation of the transactions contemplated by the Separation and Distribution
Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA.

 

Section
6.03.Vacation, Holidays and Leaves of Absence. Effective as of no later than the Effective Time, the Sysorex Group shall
assume all Liabilities of the Sysorex Group with respect to vacation, holiday, annual leave or other leave of absence, and required
payments related thereto, for each Sysorex Employee, unless otherwise required by applicable Law. The Parent Group shall retain
all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto,
for each Parent Employee.

  

    	 	16	 

     

    

 

Section
6.04.Severance and Unemployment Compensation. As of the Effective Time, the Sysorex Group shall assume and be responsible
for any and all Liabilities relating to Sysorex Employees regardless of when arising and Former Employees who worked the majority
of their time on Sysorex Group activities in respect of severance, unemployment compensation and supplemental unemployment benefits.
The Parent Group shall retain or assume, as applicable, and be responsible for any and all Liabilities relating to Parent Employees
regardless of when arising and Former Employees who worked the majority of their time on Parent Group activities in respect of
severance, unemployment compensation and supplemental unemployment benefits.

 

Section
6.05.Workers’ Compensation. With respect to claims for workers’ compensation in the United States, (a) the
Sysorex Group shall be responsible for claims in respect of Sysorex Employees regardless of when arising and Former Employees
who worked the majority of their time on Sysorex Group activities , and (b) the Parent Group shall be responsible for all claims
in respect of Parent Employees regardless of when arising and Former Employees who worked the majority of their time on Parent
Group activities.

 

Section
6.06.Insurance Contracts. To the extent that any Welfare Plan is funded through the purchase of an insurance contract
or is subject to any stop loss contract, the Parties shall cooperate and use their commercially reasonable efforts to replicate
such insurance contracts for Sysorex or Parent as applicable (except to the extent that changes are required under applicable
Law or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both Parent and
Sysorex for a reasonable term. Neither Party shall be liable for failure to obtain such insurance contracts, pricing discounts,
or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative
fees that such Party may incur pursuant to this Section 6.06.

 

Section
6.07.Third-Party Vendors. Except as provided below, to the extent that any Welfare Plan is administered by a third-party
vendor, the Parties shall cooperate and use their commercially reasonable efforts to replicate any contract with such third-party
vendor for Parent or Sysorex, as applicable and to maintain any pricing discounts or other preferential terms for both Parent
and Sysorex for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential
terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such
Party may incur pursuant to this Section 6.07.

 

ARTICLE
VII

 

MISCELLANEOUS

 

Section
7.01.Information Sharing and Access.

 

(a) Sharing
of Information. Subject to any limitations imposed by applicable Law, each of Parent and Sysorex (acting directly or through
members of the Parent Group or the Sysorex Group, respectively) shall provide to the other Party and its authorized agents and
vendors all information necessary (including information for purposes of determining benefit eligibility, participation, vesting,
calculation of benefits) on a timely basis under the circumstances for the Party to perform its duties under this Agreement. Such
information shall include information relating to equity awards under stock plans. To the extent that such information is maintained
by a third-party vendor, each Party shall use its commercially reasonable efforts to require the third-party vendor to provide
the necessary information and assist in resolving discrepancies or obtaining missing data.

  

    	 	17	 

     

    

 

(b) Transfer
of Personnel Records and Authorization. Subject to any limitation imposed by applicable Law and to the extent that it has
not done so before the Effective Time, Sysorex shall transfer to Parent any and all employment records (including any Form I-9,
Form W-2 or other IRS forms) with respect to Parent Employees and other records reasonably required by Parent to enable Parent
properly to carry out its obligations under this Agreement. Such transfer of records generally shall occur as soon as administratively
practicable at or after the Effective Time. Each Party shall permit the other Party reasonable access to its Employee records,
to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder.

 

(c) Access
to Records. To the extent not inconsistent with this Agreement, the Separation and Distribution Agreement or any applicable
privacy protection Laws or regulations, reasonable access to Employee-related and benefit plan related records after the Effective
Time shall be provided to members of the Parent Group and members of the Sysorex Group pursuant to the terms and conditions of
Article VI of the Separation and Distribution Agreement.

 

(d) Maintenance
of Records. With respect to retaining, destroying, transferring, sharing, copying and permitting access to all Employee-related
information, Parent and Sysorex shall comply with all applicable Laws, regulations and internal policies, and shall indemnify
and hold harmless each other from and against any and all Liability, Actions, and damages that arise from a failure (by the indemnifying
Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations and internal policies
applicable to such information.

 

(e) Cooperation.
Each Party shall use commercially reasonable efforts to cooperate and work together to unify, consolidate and share (to the extent
permissible under applicable privacy/data protection Laws) all relevant documents, resolutions, government filings, data, payroll,
employment and benefit plan information on regular timetables and cooperate as needed with respect to (i) any claims under or
audit of or litigation with respect to any employee benefit plan, policy or arrangement contemplated by this Agreement, (ii) efforts
to seek a determination letter, private letter ruling or advisory opinion from the IRS or U.S. Department of Labor on behalf of
any employee benefit plan, policy or arrangement contemplated by this Agreement, (iii) any filings that are required to be made
or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S. Department of Labor or any other Governmental Authority,
and (iv) any audits by a Governmental Authority or corrective actions, relating to any Benefit Plan, labor or payroll practices;
provided, however, that requests for cooperation must be reasonable and not interfere with daily business operations.

  

    	 	18	 

     

    

 

(f) Confidentiality.
Notwithstanding anything in this Agreement to the contrary, all confidential records and data relating to Employees to be shared
or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation and Distribution Agreement and the
requirements of applicable Law.

 

Section
7.02.Preservation of Rights to Amend. Except as set forth in this Agreement, the rights of each member of the Parent Group
and each member of the Sysorex Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred
to herein shall not be limited in any way by this Agreement.

 

Section
7.03.Fiduciary Matters. Parent and Sysorex each acknowledge that actions required to be taken pursuant to this Agreement
may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to
be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith determination (as
supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each
Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities
and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility.

 

Section
7.04.Further Assurances. Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including
the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably
request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.

 

Section
7.05.Counterparts; Entire Agreement; Corporate Power.

 

(a) This
Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.

 

(b) This
Agreement, the Separation and Distribution Agreement and the Ancillary Agreements and the Exhibits, Schedules and appendices hereto
and thereto contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous
agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter,
and there are no agreements or understandings between the Parties other than those set forth or referred to herein or therein.
This Agreement, the Separation and Distribution Agreement and the Ancillary Agreements govern the arrangements in connection with
the Separation and Distribution and would not have been entered independently.

 

(c) Parent
represents on behalf of itself and each other member of the Parent Group, and Sysorex represents on behalf of itself and each
other member of the Sysorex Group, as follows:

  

    	 	19	 

     

    

 

(i) each
such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in
order to execute, deliver and perform this Agreement and to consummate the transactions contemplated hereby; and

 

(ii) this
Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance
with the terms hereof.

 

(d) Each
Party acknowledges that it and each other Party is executing this Agreement by facsimile, stamp or mechanical signature, and that
delivery of an executed counterpart of a signature page to this Agreement (whether executed by manual, stamp or mechanical signature)
by facsimile or by email in portable document format (PDF) shall be effective as delivery of such executed counterpart of this
Agreement. Each Party expressly adopts and confirms each such facsimile, stamp or mechanical signature (regardless of whether
delivered in person, by mail, by courier, by facsimile or by email in portable document format (PDF)) made in its respective name
as if it were a manual signature delivered in person, agrees that it will not assert that any such signature or delivery is not
adequate to bind such Party to the same extent as if it were signed manually and delivered in person and agrees that, at the reasonable
request of the other Party at any time, it will as promptly as reasonably practicable cause this Agreement to be manually executed
(any such execution to be as of the date of the initial date thereof) and delivered in person, by mail or by courier.

 

Section
7.06.Governing Law. This Agreement (and any claims or disputes arising out of or related hereto or to the transactions
contemplated hereby or to the inducement of any Party to enter herein, whether for breach of contract, tortious conduct or otherwise
and whether predicated on common Law, statute or otherwise) shall be governed by and construed and interpreted in accordance with
the Laws of the State of California, irrespective of the choice of Laws principles of the State of California, including all matters
of validity, construction, effect, enforceability, performance and remedies.

 

Section
7.07.Assignability. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns; provided, however, that neither Party may assign its rights or delegate its obligations under
this Agreement without the express prior written consent of the other Party hereto. Notwithstanding the foregoing, no such consent
shall be required for the assignment of a Party’s rights and obligations under this Agreement, the Separation and Distribution
Agreement and all other Ancillary Agreements (except as may be otherwise provided in any such Ancillary Agreement) in whole (i.e.,
the assignment of a party’s rights and obligations under this Agreement and all Ancillary Agreements all at the same time)
in connection with a change of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations
of the relevant party thereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to
the other Party.

  

    	 	20	 

     

    

 

Section
7.08.Third-Party Beneficiaries. Subject to the requirements of Section 2.04(a), the provisions of this Agreement are solely
for the benefit of the Parties and are not intended to confer upon any other Person except the Parties any rights or remedies
hereunder. There are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third person with
any remedy, claim, Liability, reimbursement, claim of action or other right in excess of those existing without reference to this
Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s
right to amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are
solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any
other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement.

 

Section
7.09.Notices. All notices, requests, claims, demands or other communications under this Agreement shall be in writing
and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight
courier service, to the respective Parties at the following addresses (or at such other address for a Party as shall be specified
in a notice given in accordance with this Section 7.09):

 

If
to Parent (prior to, on or after the Effective Time), to:

 

Inpixon

2479
E. Bayshore Road, Suite 195

Palo
Alto, California 94303

Attn.:
Chief Executive Officer

 

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

 

Melanie
Figueroa, Esq.

Mitchell
Silberberg & Knupp LLP

12
East 49th Street, 30th Floor

New
York, New York 10017

 

If
to Sysorex (prior to the Effective Time), to:

 

Sysorex,
Inc.

2479
E. Bayshore Road, Suite 195

Palo
Alto, California 94303

Attn.:
Chief Executive Officer

 

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

 

Melanie
Figueroa, Esq.

Mitchell
Silberberg & Knupp LLP

12
East 49th Street, 30th Floor

New
York, New York 10017

 

If
to Sysorex (from and after the Effective Time), to:

 

Sysorex,
Inc.

2355
Dulles Corner Boulevard, Suite 600

Herndon,
Virginia 20171

Attn.:
Chief Executive Officer

  

    	 	21	 

     

    

 

with
copies to (which will not constitute notice):

 

Melanie
Figueroa, Esq.

Mitchell
Silberberg & Knupp LLP

12
East 49th Street, 30th Floor

New
York, New York 10017

 

Addison
K. Adams, Esq.

Adams Corporate Law, Inc.

1851 E 1st St, Suite 900

Santa
Ana, California 92705

 

A
Party may, by notice to the other Party, change the address to which such notices are to be given.

 

Section
7.10.Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is determined
by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application
of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable,
shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination,
the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original
intent of the Parties.

 

Section
7.11.Force Majeure. No Party shall be deemed in default of this Agreement or, unless otherwise expressly provided therein,
any Ancillary Agreement for any delay or failure to fulfill any obligation (other than a payment obligation) hereunder or thereunder
so long as and to the extent to which any delay or failure in the fulfillment of such obligation is prevented, frustrated, hindered
or delayed as a consequence of circumstances of Force Majeure. In the event of any such excused delay, the time for performance
of such obligations (other than a payment obligation) shall be extended for a period equal to the time lost by reason of the delay.
A Party claiming the benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such event,
(a) provide written notice to the other Party of the nature and extent of any such Force Majeure condition; and (b) use commercially
reasonable efforts to remove any such causes and resume performance under this Agreement and the Ancillary Agreements, as applicable,
as soon as reasonably practicable.

 

Section
7.12.Headings. The article, section and paragraph headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section
7.13.Survival of Covenants. Except as expressly set forth in this Agreement, the covenants, representations and warranties
contained in this Agreement, and Liability for the breach of any obligations contained herein, shall survive the Separation and
Distribution and shall remain in full force and effect.

  

    	 	22	 

     

    

 

Section
7.14.Waivers of Default. Waiver by a Party of any default by the other Party of any provision of this Agreement shall
not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the other
Party. No failure or delay by a Party in exercising any right, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any
other right, power or privilege.

 

Section
7.15.Dispute Resolution. The dispute resolution procedures set forth in Article VII of the Separation and Distribution
Agreement shall apply to any dispute, controversy or claim arising out of or relating to this Agreement.

 

Section
7.16.Specific Performance. Subject to the provisions of Article VII of the Separation and Distribution Agreement, in the
event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the
Party or Parties who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other
equitable relief in respect of its or their rights under this Agreement, in addition to any and all other rights and remedies
at Law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at Law for any
breach or threatened breach, including monetary damages, are inadequate compensation for any Loss and that any defense in any
Action for specific performance that a remedy at Law would be adequate is waived. Any requirements for the securing or posting
of any bond with such remedy are hereby waived by each of the Parties.

 

Section
7.17.Amendments. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party,
unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party
against whom it is sought to enforce such waiver, amendment, supplement or modification.

 

Section
7.18.Interpretation. In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa
and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms “hereof,”
“herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer
to this Agreement as a whole (including all of the Schedules, Exhibits and Appendices hereto and thereto) and not to any particular
provision of this Agreement; (c) Article, Section, Schedule, Exhibit and Appendix references are to the Articles, Sections, Schedules,
Exhibits and Appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement
shall be deemed to include the exhibits, schedules and annexes to such agreement; (e) the word “including” and words
of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified;
(f) the word “or” shall not be exclusive; (g) unless otherwise specified in a particular case, the word “days”
refers to calendar days; (h) references to “business day” shall mean any day other than a Saturday, a Sunday or a
day on which banking institutions are generally authorized or required by Law to close in the United States or New York, New York;
(i) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement
or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter,
unless otherwise specified; and (j) unless expressly stated to the contrary in this Agreement, all references to “the date
hereof,” “the date of this Agreement,” “hereby” and “hereupon” and words of similar
import shall all be references to the date set forth in the introductory paragraph of this Agreement.

 

Section
7.19.Limitations of Liability. Notwithstanding anything in this Agreement to the contrary, neither Sysorex or any member
of the Sysorex Group, on the one hand, nor Parent or any member of the Parent Group, on the other hand, shall be liable under
this Agreement to the other for any indirect, punitive, exemplary, remote, speculative or similar damages in excess of compensatory
damages of the other arising in connection with the transactions contemplated hereby (other than any such Liability with respect
to a Third-Party Claim).

 

Section
7.20.Mutual Drafting. This Agreement shall be deemed to be the joint work product of the Parties and any rule of construction
that a document shall be interpreted or construed against a drafter of such document shall not be applicable.

 

[Remainder
of page intentionally left blank]

  

    	 	23	 

     

    

 

IN
WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be executed by their duly authorized representatives
as of the date first written above.

  

	 	INPIXON
	 	 
	 	By:	/s/ Nadir Ali
	 	 	Nadir Ali, Chief Executive Officer
	 	 
	 	SYSOREX, INC.
	 	 
	 	By:	/s/ Zaman Khan
	 	 	Zaman Khan, President

 

 

 

[Signature
Page to Employee Matters Agreement]

 

    	 	24	 

     

    

 

Exhibit
3.01

 

EMPLOYEE
TRANSITION AGREEMENT

 

THIS
EMPLOYEE TRANSITION AGREEMENT (the “Agreement”) is entered into effective as of August 31, 2018, by and between INPIXON,
a Nevada corporation (“PARENT”), on the one hand, and SYSOREX, INC., a Nevada corporation (“SYSOREX”),
on the other.

 

WHEREAS,
the undersigned employee (“Employee”) is employed by SYSOREX pursuant to an employment at-will arrangement; and

 

WHEREAS,
SYSOREX is agreeing to furnish to PARENT, on a transitional basis, the services of Employee;

 

NOW
THEREFORE, in consideration of the covenants and promises contained herein, SYSOREX and PARENT agree as follows:

 

1.
Term of Transitional Period: SYSOREX agrees to loan Employee’s services to PARENT from August 31, 2018 (the “Effective
Date”), through and including December 31, 2018 (the “Transitional Period”). The parties hereto contemplate
that subject to satisfactory job performance in the sole opinion of PARENT and continued ability to work, Employee at the end
of the Transitional Period or at an earlier or later mutually agreeable date shall become an employee of PARENT and cease employment
with SYSOREX.

 

2.
Reimbursement of SYSOREX’s Costs and Expenses: PARENT agrees that it shall reimburse SYSOREX for any and all costs
and expenses incurred by SYSOREX with respect to Employee’s employment during the Transitional Period, including but not
limited to each of the following:

 

(a)
Salary: During the Transitional Period, SYSOREX shall pay to Employee, and PARENT shall in turn reimburse SYSOREX for,
Employee’s pro rata annualized gross salary in an amount equal to Employee’s salary as paid by SYSOREX as of the Effective
Date. [Said salary shall be paid to Employee in equal installments on SYSOREX’s regular paydays and shall be subject to
the SYSOREX’s usual and required employee payroll deductions and withholdings].

 

(b)
Payroll Taxes and Withholdings: During the Transitional Period, SYSOREX shall pay or remit to the appropriate taxing authorities
and/or governmental agencies, and PARENT shall in turn reimburse SYSOREX for, any and all payroll taxes and withholdings required
by law to be paid in connection with Employee’s employment.

 

(c)
Employee Benefits: During the Transitional Period and as long as such benefits are provided generally to other SYSOREX
employees at Employee’s level, SYSOREX shall continue to provide to Employee, and PARENT shall in turn reimburse SYSOREX
for, those pension, group insurance benefits and other group employment benefits which Employee is currently eligible to receive
and which are otherwise provided to other SYSOREX employees at Employee’s level.

 

(d)
Additional Compensation: During the Transitional Period, SYSOREX shall pay to Employee, and PARENT shall in turn reimburse
SYSOREX for, any additional compensation, including but not limited to any production bonus, compensation for origination, or
discretionary bonus requested by PARENT to be paid to Employee. If PARENT desires any such additional compensation be paid by
SYSOREX to Employee, PARENT shall make such request in writing.

 

    	 		 

     

    

 

(e)
Business Expenses: During the Transitional Period, SYSOREX shall pay to or reimburse Employee for, and PARENT shall in
turn reimburse SYSOREX for, any reasonable and necessary business expenses incurred by Employee in accordance with PARENT’s
expense reimbursement policies. Employee shall be required to request reimbursement through SYSOREX’s standard procedures
and PARENT agrees to approve, in writing, each of Employee’s expense reports before it is submitted to SYSOREX for payment.
SYSOREX shall not reimburse Employee for any expense which has not been approved, in writing, by PARENT.

 

SYSOREX
shall invoice PARENT on a regular basis, not more frequently than every thirty (30) days, for the foregoing costs and expenses
which it will incur, and PARENT agrees to and shall promptly reimburse SYSOREX for all such costs and expenses within fifteen
(15) days of its receipt of each such invoice, plus an administrative service fee of [2]% of the gross amount of each respective
invoice; provided, however, that SYSOREX agrees to waive such fee for so long as any PARENT employees are providing any necessary
administrative services on behalf of and for the benefit of SYSOREX including any employees that are furnished to PARENT in accordance
with this Agreement. Except as described herein, PARENT understands and expressly agrees that it shall reimburse SYSOREX for all
such costs and expenses described herein, whether or not PARENT actually utilizes Employee’s services throughout the entire
Transitional Period.

 

3.
Workers’ Compensation: In connection with Employee’s performance of services during the Transitional Period,
Employee shall continue be insured under SYSOREX’s general liability and workers’ compensation insurance policies
to the same extent as its other employees, and SYSOREX shall take all reasonable steps to have its insurers include PARENT as
an additional named insured employer under each such insurance policy; provided that PARENT shall in turn reimburse SYSOREX for
any and all additional costs and expenses required by any such insurer to have PARENT so included as an additional named insured
employer on such insurer’s respective policy. Notwithstanding that SYSOREX is furnishing Employee’s services to PARENT,
for the purposes of any applicable workers’ compensation statute, an employment relationship shall be deemed to exist between
PARENT and Employee, with PARENT being Employee’s special employer hereunder and SYSOREX being Employee’s general
employer, as such terms are understood for purposes of workers’ compensation statutes.

 

4.
Indemnity: PARENT agrees to indemnify, defend and hold harmless, SYSOREX, and its parent, subsidiary, affiliated and related
corporations, businesses, companies, entities, and divisions, as well as each of their respective trustees, directors, officers,
agents, partners, general partners, limited partners, attorneys, insurers, employees, stockholders, shareholders, representatives,
assigns and successors, past, present and future, and each of them, from and against any and all losses, claims, demands, actions,
suits, causes of action, attorneys’ fees, obligations, debts, costs, expenses, damages, judgments, orders and liabilities
of whatever kind or nature in law, equity or otherwise, arising from or pertaining to Employee’s actions, services or his
work for PARENT at any time during the Transitional Period.

 

5.
Governing Law and Enforcement By Arbitration: This Agreement shall be governed and construed in accordance with the laws
of the State of California applicable to contracts entered into and fully performed in California, without regard to principles
of conflict of laws. Any controversy or claim arising out of or relating to this Agreement, its enforcement or interpretation,
or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, shall be submitted to
final and binding arbitration, to be held in Los Angeles County, California, in accordance with California Code of Civil Procedure
Sections 1282-1284.2, with the exception of Section 1283.1(a). This agreement to arbitrate specifically incorporates and makes
applicable the provisions of Section 1283.05. The arbitrator shall decide all issues relating to arbitrability.

 

    	 	2	 

     

    

 

6.
Notices: Unless otherwise required by law, all notices, or communications required or desired to be given hereunder shall
be directed to the persons identified below or their designees:

 

Notices
to PARENT shall be directed to:

 

Inpixon

2479
E. Bayshore Road, Suite 195

Palo
Alto, California 94303

Attn.:
Chief Executive Officer

 

Notices
to SYSOREX shall be directed to:

 

Sysorex,
Inc.

2479
E. Bayshore Road, Suite 195

Palo
Alto, California 94303

Attn.:
Chief Executive Officer

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the date or dates designated below.

 

		SYSOREX
	 	 	 
	Dated:___________________	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	PARENT
	 	 	 
	Dated:____________________	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	RATIFIED
    BY	EMPLOYEE
	 	 	 
	Dated:____________________	By:	 
	 	 	Employee

 

	 	Printed Name:	

 

 

3Exhibit
10.4

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

This
ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”) is made and entered into as of August 31, 2018, by and
among Inpixon, a Nevada corporation (“Inpixon”), Sysorex, Inc., a Nevada corporation (“Sysorex”),
the Inpixon and Sysorex entities listed on Schedules A and B hereto (as appropriate, collectively with Inpixon, the “Inpixon
Group” and each, an “Inpixon Entity” and collectively with Sysorex, the “Sysorex Group”
and each, a “Sysorex Entity”). Capitalized terms used in this Agreement and not otherwise defined have the
meanings ascribed to such terms in the Separation Agreement (as defined below).

 

RECITALS

 

WHEREAS,
Inpixon and Sysorex have entered into that certain Separation and Distribution Agreement (the “Separation Agreement”),
dated as of August 7, 2018, pursuant to which Inpixon will transfer its IT consulting and value added reseller business to Sysorex
(the “Separation”) and distribute all of the outstanding common stock of Sysorex to Inpixon stockholders of
record (including holders of Inpixon’s Series 4 Convertible Preferred Stock) and certain holders of Inpixon’s warrants
as of the close of business on August 21, 2018 (the “Distribution” and with the Separation, the “Spin-off”);
and

 

WHEREAS,
in connection with the Spin-off and pursuant to Section 2.1 of the Separation Agreement, the Inpixon Group desires to assign to
Sysorex the Sysorex Assets and Sysorex has agreed to assume the Sysorex Liabilities while the Sysorex Group desires to assign
to Inpixon the Inpixon Assets.

 

NOW,
THEREFORE, pursuant to the terms and conditions of the Separation Agreement and for the consideration set forth therein and
other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1.
Assignment and Assumption of Sysorex Assets and Liabilities. Subject to the terms and conditions of the Separation Agreement,
each Inpixon Entity hereby assigns, conveys, and transfers to Sysorex all of such Inpixon Entity’s right, title and interest
in and to the Sysorex Assets (the “Sysorex Assignment”). Sysorex hereby accepts the Sysorex Assignment and
retains or assumes, as appropriate, the Sysorex Liabilities, in each case effective as of the Effective Time; provided, however,
that following the Effective Time, each of Inpixon and Sysorex will be responsible for 50% of the Shared Liabilities included
on Schedule 1.5 of the Separation Agreement.

 

2.
Assignment and Assumption of Inpixon Assets and Liabilities. Subject to the terms and conditions of the Separation Agreement,
each Sysorex Entity hereby assigns, conveys, and transfers to Inpixon all of such Sysorex Entity’s right, title and interest
in and to the Inpixon Assets (the “Inpixon Assignment”). Inpixon hereby accepts the Inpixon Assignment and
retains or assumes, as appropriate, the Inpixon Liabilities, in each case effective as of the Effective Time; provided, however,
that following the Effective Time, each of Inpixon and Sysorex will be responsible for 50% of the Shared Liabilities included
on Schedule 1.5 of the Separation Agreement.

 

     

     

    

 

3.
Terms of the Separation Agreement. The terms of the Separation Agreement, including, but not limited to, the representations,
warranties, covenants, agreements and indemnities relating the Sysorex Liabilities are incorporated herein by reference. The parties
hereto acknowledge and agree that the representations, warranties, covenants, agreements and indemnities contained in the Separation
Agreement shall not be superseded hereby, but shall remain in full force and effect to the extent provided therein. In the event
of any conflict or inconsistency between the terms of the Separation Agreement and the terms hereof, the terms of the Separation
Agreement shall govern.

 

4.
Governing Law. This Agreement shall be governed by and construed in accordance with the Law of the State of Nevada, without
regard to the choice of law or conflicts of law principles thereof. The parties expressly waive any right they may have, now or
in the future, to demand or seek the application of a governing Law other than the Law of the State of Nevada.

  

5.
Assignment. This Agreement may not be assigned by any party hereto without the prior written consent of Inpixon and Sysorex.
All of the terms and provisions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and assigns.

 

6.
Counterparts. This Agreement may be executed in multiple original, facsimile or electronic counterparts (including via
PDF), each of which shall be deemed an original, but all of which when taken together shall constitute one and the same agreement.

 

7.
Further Assurances. Each party hereto shall execute and deliver, at the reasonable request of the other parties hereto,
such additional documents, instruments, conveyances and assurances and take such further actions as such other party may reasonably
request to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

 

[Signatures
on next page.]

 

    	 	2	 

     

    

 

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

 

	 	INPIXON
	 	 	 
	 	By:	/s/ Nadir Ali
	 	Name:	Nadir Ali
	 	Title:	Chief Executive Officer
	 	 	 
	 	SYSOREX, INC.
	 	 	 
	 	By:	/s/ Zaman Khan
	 	Name:	Zaman Khan
	 	Title:	President
	 	 	 
	 	INPIXON CANADA, INC.
	 	 	 
	 	By:	/s/ Nadir Ali
	 	Name:	Nadir Ali
	 	Title:	Chief Executive Officer
	 	 	 
	 	SYSOREX INDIA LTD.
	 	 	 
	 	By:	/s/ Nadir Ali
	 	Name:	Nadir Ali
	 	Title:	Chief Executive Officer

 

    	 	3	 

     

    

 

Schedule
A

Inpixon
Entities

 

Inpixon
Canada, Inc., a Canadian corporation

Sysorex
India, Ltd., a corporation formed under the laws of India

 

    	 	4	 

     

    

 

 

Schedule
B

Sysorex,
Inc. Entities

 

Sysorex
Government Services, Inc., a Nevada corporation

 

    	 	5

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