Document:

Exhibit
10.12

 

 

 

 

 

 

 

 

 

 

AMENDED
AND RESTATED

SUBLEASE
AGREEMENT

 

 

 

BY
AND BETWEEN

 

 

 

DELL
MARKETING L.P., AS SUBLESSOR

 

  

AND

 

 

 

INPIXON
FEDERAL, INC., A VIRGINIA CORPORATION, as SUBLESSEE

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	MASTER
    LEASE	1
	2.	DEMISE
    AND DESCRIPTION; PARKING; SIGNAGE	3
	3.	TERM;
    SURRENDER OF POSSESSION	4
	4.	RENT;
    SECURITY DEPOSIT; LETTER OF CREDIT	5
	5.	ALTERATIONS	8
	6.	QUIET
    ENJOYMENT	9
	7.	ASSIGNMENT
    AND SUBLETTING	9
	8.	INDEMNIFICATION,
    RELEASE OF CLAIMS, WAIVER OF SUBROGATION AND SUBLESSEE’S INSURANCE REQUIREMENT	10
	9.	DEFAULTS
    AND REMEDIES	10
	10.	MISCELLANEOUS	11

 

	Exhibit
    A	-
    Depiction of Subleased Premises
	Exhibit
    B	-
    Special Provisions

 

     

     

    

 

AMENDED
AND RESTATED SUBLEASE AGREEMENT

 

THIS
AMENDED AND RESTATED SUBLEASE AGREEMENT (“Sublease”) is made and entered into as of the 4th day of June, 2018 (the
“Effective Date”), between DELL MARKETING L.P., a Texas limited partnership (hereinafter called “Sublessor”),
whose Federal taxpayer identification is 74-2616805, and INPIXON FEDERAL, INC., a Virginia corporation (hereinafter called
“Sublessee”) whose Federal taxpayer identification number is 54-1764522:

 

W
I T N E S S E T H:

 

WHEREAS,
Brandywine Acquisition Partners LP (as successor-in-interest to Prentiss Properties Acquisition Partners, L.P.) (hereinafter called
the “Master Lessor”), as landlord, and Sublessor (as successor-in-interest to Perot Systems Corporation), as tenant,
have previously entered into that certain Deed of Lease Agreement dated as of July 27, 2001 (as amended by a First Amendment to
Deed of Lease Agreement dated October 24, 2001, a Second Amendment to Deed of Lease Agreement (the “Second Amendment”)
dated as of February 22, 2011, a Third Amendment to Deed of Lease Agreement (the “Third Amendment”) dated as of December
22, 2015, and a Fourth Amendment to Deed of Lease Agreement (the “Fourth Amendment”) dated as of October 28, 2016,
as amended, the “Master Lease”) concerning the lease of approximately 13,046 rentable square feet of space as more
particularly described in the Master Lease (the “Premises”), in that certain building (the “Building”)
located at 13880 Dulles Corner Lane, Herndon, Virginia 20171; and

 

WHEREAS,
Sublessee desires to sublease from Sublessor, and Sublessor desires to sublease to Sublessee, approximately 5,792 Rentable Square
Feet of space located on the first (1st) floor of the Building (the “Subleased Premises”), such Subleased Premises
being more particularly depicted on the floor plan attached hereto as Exhibit A; and

 

WHEREAS,
Sublessor and Sublessee entered into a Sublease Agreement dated as of June 4, 2018 (the “Original Sublease”) for the
Subleased Premises; and

 

WHEREAS,
Sublessor and Sublessee desire to and agree to amend and restate the Original Sublease with this Sublease.

 

NOW,
THEREFORE, in consideration of the promises and mutual covenants and agreements herein set forth, and for other good and valuable
consideration, the receipt and sufficiency of which the parties hereby acknowledge, Sublessor and Sublessee hereby amend and restate
the Original Sublease and hereby agree as follows:

 

ARTICLE
I

MASTER
LEASE

 

10.01
Sublease Subject to Master Lease. This Sublease is subject and subordinate to the Master Lease. Subtenant confirms and
agrees it has received and reviewed a true and correct copy of the Master Lease. Sublessee and Sublessor agree and acknowledge
that the following sections are not applicable to Sublessee: Section 3, Section 4, Section 5.2, Section 6 (as it relates to the
obligation to pay “Real Estate Tax Escalation” as defined in the Master Lease), Section 7, Section 8, Section 10,
Section 11.1, Section 11.3, Section 11.4, the last two (2) paragraphs of Section 12.1 (as it relates to “Antenna Equipment”
as defined in the Master Lease), Section 20.2, Section 20.3, Section 25.1 (as it relates to the right to enter into an “SNDA”
as defined in the Master Lease), Section 26, Section 29, Section 33.20, Section 33.21, Exhibit B of the Master Lease, Exhibit
F of the Master Lease, Rider No. 1 to the Master Lease, Exhibit B of the Master Lease, Sections 4-9, Section 11 and Sections 13-14
of the Second Amendment, Sections 3-8 of the Third Amendment and Sections 4-5, and Section 8 (as it relates to Tenant’s
Monument Signage) and Section 9 of the Fourth Amendment. Sublessor hereby represents that the Master Lease is the entire agreement
between the Master Lessor and Sublessor and is in full force and effect and that, to Sublessor’s current, actual knowledge
no default exists on the part of either party to the Master Lease.

 

    	 	1	 

     

    

 

10.02
Compliance With Master Lease. Except as otherwise specifically set forth in this Sublease, and except for the obligation
to pay the Base Rent and Additional Rent described in the Master Lease, Sublessee hereby covenants and agrees to comply with and
perform all obligations of Sublessor under the Master Lease pertaining to the Subleased Premises, including, without limitation,
all repair obligations, all insurance obligations, all obligations to pay utility charges and taxes, and all indemnification obligations
of Sublessor thereunder, and any liability accruing from failure to pay same when due thereunder. Sublessee shall not do anything
(nor permit anything to be done) which would cause the Master Lease to be terminated or forfeited for any reason. In the event
of the termination of Sublessor’s interest as tenant under the Master Lease, then this Sublease shall terminate automatically
upon such termination without any liability of either Sublessor or Master Lessor to Sublessee (provided that the indemnity obligations
set forth in Article VIII below shall expressly survive any such termination). Sublessee represents and warrants to Sublessor
that Sublessee has read and understands the Master Lease. Sublessee agrees that whenever the consent of Master Lessor is required
under the terms of the Master Lease with respect to any action, Sublessee shall obtain the consent of Sublessor and of Master
Lessor prior to taking such action. With the exception of the payment of Base Rent and Additional Rent, if the Master Lease requires
Sublessor to perform a specific obligation(s) thereunder on or before a certain date (or within a certain period of time), and
if Sublessee is required to perform a similar obligation(s) under this Sublease, then Sublessee shall perform such obligation(s)
at least two (2) days prior to the date required under the Master Lease (or, if applicable, Sublessee shall perform such obligation(s)
within a time period which is two (2) days less than the time period provided in the Master Lease). Sublessee hereby covenants
and agrees to promptly deliver to Sublessor copies of any and all notices or other correspondence received by Sublessee from Master
Lessor that might affect Sublessor in any manner and further agrees, notwithstanding Section 10.04 below to the contrary, to so
deliver same in the manner most appropriate to insure that Sublessor will be able to respond to any of such notices or other correspondence
from the Master Lessor within any time periods set forth in the Master Lease. Sublessor hereby covenants and agrees to promptly
deliver to Sublessee copies of any and all notices or other correspondence received by Sublessor from Master Lessor that might
affect Sublessee in any manner and further agrees, notwithstanding Section 10.04 below to the contrary, to so deliver same in
the manner most appropriate to insure that Sublessee will be able to respond to any of such notices or other correspondence from
the Master Lessor within any time periods set forth in the Master Lease, or otherwise take appropriate action.

 

10.03
Services. Sublessee hereby acknowledges and agrees that the only services, amenities and rights to which Sublessee is entitled
under this Sublease are those to which Sublessor is entitled under the Master Lease with respect to the Subleased Premises (subject
to all the provisions, restrictions and conditions imposed by the Master Lease). Sublessor shall in no event be liable to Sublessee
for Master Lessor’s failure to provide any such services, amenities and rights nor shall any such failure be construed as
a breach hereof by Sublessor or an eviction of Sublessee or entitle Sublessee to an abatement of any of the rentals under this
Sublease, except and only to the extent that Sublessor receives an abatement under the Master Lease with respect thereto, and
then only to the extent allocable to the Subleased Premises.

 

    	 	2	 

     

    

 

10.04
Exercise of Rights and Remedies Under Master Lease. Sublessee shall not have the right to exercise any of Sublessor’s
options or elections permitted or authorized under the Master Lease, or to institute any action or proceeding against Master Lessor
for the enforcement of the Master Lease (including, without limitation, any option or election to extend the Term of the Master
Lease or this Sublease or the option or election to expand the Premises or the Subleased Premises or any option or election that
may be set forth in any provision of the Master Lease excluded pursuant to Section 1.03 above). If Master Lessor shall default
in the performance of any of its obligations under the Master Lease, Sublessor shall, use its diligent good faith efforts to enforce
the Master Lease and obtain Master Lessor’s compliance with its obligations thereunder.

 

ARTICLE
II

DEMISE
AND DESCRIPTION; PARKING; SIGNAGE

 

2.01
Demise of Subleased Premises; Use. Subject to and upon the terms and conditions set forth herein, Sublessor hereby subleases
to Sublessee, and Sublessee hereby subleases from Sublessor for the term herein set forth, all of Sublessor’s right, title
and interest in and to the use and occupancy of the Subleased Premises arising under the Master Lease.

 

Subject
to the terms of the Master Lease, Sublessee shall use the Subleased Premises for general office use, and for no other purpose.

 

2.02
Condition of the Subleased Premises. Sublessee acknowledges and agrees that it has inspected the Subleased Premises and
agrees to accept same in its present condition, “AS IS” and “WITH ALL FAULTS.”

 

2.03
Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH HEREIN, SUBLESSEE ACKNOWLEDGES THAT NEITHER SUBLESSOR NOR MASTER
LESSOR HAS MADE OR WILL MAKE ANY WARRANTIES TO SUBLESSEE WITH RESPECT TO THE QUALITY OF CONSTRUCTION OF ANY LEASEHOLD IMPROVEMENTS
OR TENANT FINISHES WITHIN THE SUBLEASED PREMISES OR AS TO THE CONDITION OF THE SUBLEASED PREMISES, EITHER EXPRESS OR IMPLIED,
AND THAT SUBLESSOR AND MASTER LESSOR EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE SUBLEASED PREMISES ARE OR WILL BE SUITABLE
FOR SUBLESSEE’S INTENDED COMMERCIAL PURPOSES. EXCEPT AS EXPRESSLY PROVIDED IN SECTION 1.04 HEREOF, SUBLESSEE’S OBLIGATION
TO PAY RENT UNDER THIS SUBLEASE IS NOT DEPENDENT UPON THE CONDITION OF THE SUBLEASED PREMISES OR THE BUILDING (NOW OR IN THE FUTURE)
OR THE PERFORMANCE BY MASTER LESSOR OF ITS OBLIGATIONS UNDER THE MASTER LEASE, AND SUBLESSEE SHALL CONTINUE TO PAY THE RENT HEREUNDER
WITHOUT ABATEMENT, SETOFF OR DEDUCTION NOTWITHSTANDING ANY BREACH BY SUBLESSOR OF ITS DUTIES OR OBLIGATIONS HEREUNDER OR BY MASTER
LESSOR OF ITS DUTIES OR OBLIGATIONS UNDER THE MASTER LEASE, WHETHER EXPRESS OR IMPLIED.

 

2.04
Parking. Sublessee shall have the right to the non-exclusive use of eighteen (18) parking spaces in the parking facilities.
The use of such parking spaces by Sublessee shall be subject to the provisions of Section 1.3 of the Master Lease, Section 33.23
of the Master Lease and Exhibit E of the Master Lease and any other applicable provisions of the Master Lease.

 

    	 	3	 

     

    

 

2.05
Signage. Sublessee at Sublessee’s cost shall have a right to place its name and/or logo on the lobby directory. Such
signage rights of Sublessee shall be subject to (a) the provisions of the Master Lease (including, without limitation, Section
26 of the Master Lease) and (b) Master Lessor’s approval.

 

ARTICLE
III

TERM;
SURRENDER OF POSSESSION

 

3.01
Term. Unless the Master Lease is terminated sooner pursuant to the terms thereof, the term of this Sublease (“Term”)
shall be for the period commencing on the date (the “Commencement Date”) which is the later of (a) October 1, 2018
or (b) the date which is nineteen (19) days after Sublessor obtains Master Lessor’s written consent to this Sublease (pursuant
to any terms and conditions reasonably acceptable to Sublessor) and ending November 30, 2021 (the “Expiration Date”).
Within fifteen (15) days after Sublessee’s receipt of a request from Sublessor, Sublessee agrees to give Sublessor a letter
confirming the Commencement Date and certifying that Sublessee has accepted delivery of the Subleased Premises and that the condition
of the Subleased Premises complies with Sublessor’s obligations, if any, hereunder.

 

So
long as Sublessor has received from Sublessee the Prepaid Rental (as defined below) due pursuant to Section 4.01 of this Sublease,
together with certificates satisfactory to Sublessor and Master Lessor evidencing the insurance required to be carried by Sublessee
under this Sublease, and the Security Deposit (or Letter of Credit, if applicable), and provided Master Lessor has consented to
this Sublease, Sublessor shall give Sublessee’s designated contractors early access to the Subleased Premises for a period
of fourteen (14) days commencing five (5) days after Sublessor obtains Master Lessor’s written consent to this Sublease
(pursuant to any terms and conditions reasonably acceptable to Sublessor) (the “Early Access Period”) for purposes
of installing Sublessee’s telephone, cabling and furniture (“Sublessee’s Work”). Sublessee’s Work
shall be performed by Sublessee at Sublessee’s sole cost and expense. Sublessee’s access to the Subleased Premises
during the Early Access Period shall be subject to all terms and conditions of this Sublease and the Master Lease as applicable
to the Subleased Premises, except that Sublessee shall not be obligated to pay Rent during the Early Access Period until the Commencement
Date, provided Sublessee shall reimburse Sublessor, within ten (10) days following Sublessee’s receipt of Sublessor’s
invoice, for any additional charges and costs for additional services incurred by Sublessor at Sublessee’s written request
during the Early Access Period.

 

3.02
Surrender of the Subleased Premises. Sublessee shall keep the Subleased Premises, and every part thereof, in good order
and repair. At the termination of this Sublease, by lapse of time or otherwise, Sublessee shall surrender the Subleased Premises
to Sublessor in the same condition as received by Sublessee on the Commencement Date, ordinary wear and tear excepted, with all
trade fixtures and personal property removed (including any removal requirements set for in Exhibit B for Sublessor’s
FF&E). All wiring and cabling installed in the Subleased Premises or Building by Sublessee, at Sublessee’s request or
on behalf of Sublessee, shall be removed by Sublessee at the termination of this Sublease. Any improvements or alterations made
in and/or to the Subleased Premises by Sublessee, at Sublessee’s request or on behalf of Sublessee, shall be removed by
Sublessee at the termination of this Sublease if required by Master Lessor. Any damage caused by the removal of such items shall
be repaired by Sublessor at the sole cost and expense of Sublessee, Sublessee’s reimbursement obligation to survive the
termination of this Sublease. Upon such termination of this Sublease, Sublessor shall have the right to re-enter and resume possession
of the Subleased Premises.

 

    	 	4	 

     

    

 

3.03
Holding Over

 

In
the event of holding over by Sublessee after expiration or termination of this Sublease without the prior written consent of Sublessor,
at the option of Sublessor, Sublessor may elect to (a) have the provisions of the Master Lease regarding holding over by the tenant
thereunder apply as to Sublessee with respect to the Subleased Premises; or (b) construe Sublessee’s occupancy as a tenancy
at sufferance, whereupon Sublessee shall be subject to summary eviction as provided by applicable law. Sublessee acknowledges
that Sublessee shall be liable to Sublessor for the costs incurred by Sublessor under the Master Lease for Sublessor holding over
in the entire Premises if Sublessee holds over in the Subleased Premises and such holdover by Sublessee results in Sublessor holding
over in the entire Premises under the Master Lease. Sublessee agrees to indemnify Sublessor and hold Sublessor harmless against
any cost, liability or loss incurred by Sublessor as a result of any such holding over by Sublessee. Nothing herein shall be construed
as permitting Sublessee to hold over in the Subleased Premises without the prior written consent of Sublessor.

 

ARTICLE
IV

RENT;
SECURITY DEPOSIT; LETTER OF CREDIT

 

4.01
Rent. Beginning on the Commencement Date, Sublessee hereby agrees to pay “Rent” (as herein called) for the
Subleased Premises in the monthly installments as set forth below; provided, however, Sublessee shall pay the Rent for Month 1
upon the execution of this Sublease (the “Prepaid Rental”), which Prepaid Rental shall be $9,653.33 (based on a Base
Rent rate of $20.00 per square foot of rentable area per year).

 

		a.	Month 1:	If
                                         the Commencement Date is the first (1st) day of a calendar month, then Sublessee shall
                                         receive a credit for the Prepaid Rental for Month 1. If the Commencement Date does not
                                         fall on the first day of a calendar month, “Month 1” shall be the first full
                                         calendar month following the Commencement Date and shall include any partial month following
                                         the Commencement Date, and Sublessee shall receive a credit for the Prepaid Rent and
                                         pay the Rent for such partial month which shall be calculated based on a rental rate
                                         of $20.00 per square foot of rentable area per year.

 

		b.	Month
                                         2 - Month 12:	$9,653.33
                                         per month.

 

		c.	Month
                                         13 - Month 24:	$10,039.46
                                         per month.

 

		d.	Month
                                         25 - Month 36:	$10,441.04
                                         per month.*

 

		e.	Month
                                         37 – Expiration Date:	$10,858.68
                                         per month.*

 

*Notwithstanding
the foregoing, provided there is no Event of Default by Sublessee under this Sublease, Rent shall be abated for last eight (8)
calendar months of the Term occurring immediately prior to the Expiration Date.

 

    	 	5	 

     

    

 

Sublessee
shall pay such Rent to Sublessor monthly without demand, for each and every month during the Term.

 

4.02
Payment of Rentals. Each monthly installment of Rent due to Sublessor under this Sublease shall be payable in advance,
without notice, by Sublessee on the first (1st) day of each calendar month at Sublessor’s address herein set forth or at
such other place as Sublessor shall designate in writing from time to time. In the event Sublessee is late in the payment of Rent,
such delinquent payment shall bear interest from the due date until paid at the lesser of twelve percent (12%) per annum or the
maximum lawful rate of interest; additionally, Sublessor, in addition to all other rights and remedies available to it, may charge
Sublessee a late fee equal to five percent (5%) of the delinquent payment to reimburse Sublessor for its cost and inconvenience
incurred as a consequence of Sublessee’s delinquency. In no event, however, shall the charges permitted under this Section
4.02, to the extent they are considered to be interest under applicable law, exceed the maximum lawfully permitted rate of interest.
If less than all of any calendar month or year occurs during the Term, rents for such partial month or year shall be prorated
based on the actual number of days during such month or year occurring within the Term.

 

4.03
Address for Rent Payments. Unless notified otherwise by Sublessor, all Rent and other payments should be sent to Sublessor as
follows:

 

		a.	By
                                         Check (Standard Mail):

 

Dell
Marketing L.P.

P.
O. Box 676021

Dallas
TX 75267-6021; or

 

		b.	By
                                         Check (Overnight Delivery)

 

Dell
Marketing L.P.

1200
East Campbell Road, Suite 108

Lockbox
676021

Richardson,
TX 75081; or

 

    	 	6	 

     

    

 

		c.	By
                                         Wire Transfer:

 

 

  

4.04
Security Deposit. Upon execution of this Sublease by Sublessee, Sublessee shall deposit with Sublessor a Security Deposit
in the amount of Twenty-Eight Thousand Nine Hundred Sixty and 00/100 Dollars ($28,960.00) (the “Security Deposit”).
The Security Deposit shall be held by Sublessor without liability for interest and as security for the performance by Sublessee
of Sublessee’s covenants and obligations under this Sublease, it being expressly understood that such deposit shall not
be considered an advance payment of Rent or a measure of Sublessor’s damages in case of default by Sublessee; Sublessor
may, from time to time, without prejudice to any other remedy, use such deposit to the extent necessary to make good any arrearages
of Rent or other amounts due hereunder and any other damage, injury, expense or liability caused to Sublessor by such event of
default. Following any such application of the Security Deposit, Sublessee shall pay to Sublessor on demand the amount so applied
in order to restore the Security Deposit to its original amount. If Sublessee is not then in default hereunder, any remaining
balance of such deposit shall be returned by Sublessor to Sublessee within thirty (30) days after the expiration of this Sublease.

 

4.05
Letter of Credit. (a) In lieu of the Security Deposit, Sublessee, at Sublessee’s sole cost and expense, may have
issued and delivered to Sublessor upon execution of this Sublease by Sublessee, an irrevocable stand-by letter of credit in the
amount of Twenty-Eight Thousand Nine Hundred Sixty and 00/100 Dollars ($28,960.00) (the “Letter of Credit”). The Letter
of Credit shall be issued by a bank reasonably acceptable to Sublessor and shall otherwise be in such form and contain such terms
as are reasonably acceptable to Sublessor. Upon and during the existence of a default by Sublessee hereunder, Sublessor may, in
addition to all other rights and remedies afforded Sublessor hereunder or by law, cash the Letter of Credit or any portion thereof
and use and hold the proceeds of same as a cash security deposit in accordance with Section 4.05(b) below, after applying such
sums against Sublessee’s obligations hereunder, without prejudice to any of Sublessor’s other remedies. If Sublessee
is not then in default hereunder, the Letter of Credit shall be returned by Sublessor to Sublessee within thirty (30) days after
the expiration or termination of this Sublease.

 

(b)
Any proceeds of the Letter of Credit shall be held by Sublessor without liability for interest and as security for the performance
by Sublessee of Sublessee’s covenants and obligations under this Sublease, it being expressly understood that such proceeds
shall not be considered an advance payment of Rent or a measure of Sublessor’s damages in case of the failure by Sublessee
in the performance of any of the terms and provisions hereof. Sublessor may, from time to time, without prejudice to any other
remedy, use such proceeds to the extent necessary to make good any arrearages of Rent or other amounts due hereunder and any other
damage, injury, expense or liability caused to Sublessor by such failure in performance by Sublessee. Following any such application
of such proceeds, Sublessee shall, within three (3) business days of Sublessee’s receipt of Sublessor’s demand, cause
the Letter of Credit to be restored to the original amount described in Section 4.05(a) above.

 

    	 	7	 

     

    

 

ARTICLE
V 

ALTERATIONS

 

5.01
Sublessor’s Consent Required. Sublessee shall not make any alterations, additions, or improvements to the Subleased
Premises without Sublessor’s prior written consent. Sublessor’s consent to any such alterations, additions, or improvements
may be conditioned upon and subject to Sublessor obtaining the Master Lessor’s prior written consent. Sublessee shall promptly
remove any alterations, additions, or improvements constructed in violation of this Article V upon Sublessor’s written request.
All alterations, additions, and improvements shall be performed in a good and workmanlike manner, in conformity with all applicable
laws and regulations, and by a contractor approved by Sublessor. Upon completion of any such work, Sublessee shall provide Sublessor
with “as built” plans, copies of all construction contracts, and proof of payment for all labor and materials. Sublessee
shall ensure that the Subleased Premises and Building remain free and clear of any and all liens or lien claims arising out of
the work performed or materials used in making alterations, additions or improvements to the Subleased Premises. Upon the expiration
or earlier termination of this Sublease, Sublessee shall surrender the Subleased Premises to Sublessor with all alterations, additions,
or improvements (including any wiring and cabling) made to the Subleased Premises by Sublessee (or at Sublessee’s request)
removed unless Master Lessor requires (or permits) such alterations, additions, or improvements to remain in the Subleased Premises.

 

5.02
Sublessor’s Costs. If Sublessee requests Sublessor’s consent to make alterations, additions, or improvements,
Sublessee shall pay to Sublessor a reasonable administrative charge and Sublessor’s reasonable architect / engineer expenses
incurred by Sublessor in reviewing such request and Sublessee shall reimburse Sublessor for any fees and expenses charged to Sublessor
by Master Lessor in connection with such request.

 

5.03
Sublessee’s Initial Alterations. Sublessor hereby consents to Sublessee performing the following alterations (together,
“Sublessee’s Initial Alterations”) in the Subleased Premises:

 

		a)	Create
                                         a doorway connecting the conference room in the Subleased Premises to the remainder of
                                         the Subleased Premises; and

		b)	Install
                                         a glass door entry way into the Subleased Premises.

 

Sublessee
agrees and acknowledges that Master Lessor’s consent is required in order for Sublessee to perform Sublessee’s Initial
Alterations and if Master Lessor’s written consent is obtained, Sublessee’s Initial Alterations shall be performed
in compliance with all applicable laws and in accordance with the applicable terms and conditions of the Master Lease (including
any conditions which may be included by Master Lessor in its consent to Sublessee’s Initial Alterations). Sublessor agrees
to request Master Lessor’s consent to Sublessee’s Initial Alterations within five (5) business days following Sublessor’s
receipt of Sublessee’s request, which request shall include architectural drawings and specifications for Sublessee’s
Initial Alterations.

 

    	 	8	 

     

    

 

ARTICLE
VI

QUIET
ENJOYMENT

 

Provided
Sublessee has performed all of the terms, covenants agreements and conditions of this Sublease, including the payment of Rent
and all other sums due hereunder, Sublessee shall peaceably and quietly hold and enjoy the Subleased Premises against Sublessor
and all persons claiming by, through or under Sublessor, for the term herein described, subject to the provisions and conditions
of this Sublease and of the Master Lease.

 

ARTICLE
VII

ASSIGNMENT
AND SUBLETTING

 

7.01
Restriction. Sublessee may, with the prior written consent of Sublessor and Master Lessor, either (a) sublease the entire
Subleased Premises to one (1) sub-subtenant or (b) assign this Sublease to one (1) assignee, provided Sublessee, with the prior
written consent of Master Lessor, may assign this Sublease to Sysorex Government Services (“Sysorex”) in connection
with a merger, reorganization, acquisition, name change or other transfer of all or substantially all of Sublessee’s assets
or voting securities by and between Sublessee and Sysorex, provided, however, that (a) the net worth of Sysorex must be
equal to or greater than the net worth of Sublessee as of the date of this Sublease;; and (b) Sublessee shall provide financial
statements (reasonably acceptable to Sublessor) for Sysorex prior to the effective date of any such assignment to Sysorex; and
(c) Sublessee shall provide notice to Sublessor of any such assignment prior to the effective date of such assignment. Except
as set forth in the immediately preceding sentence, Sublessee shall not, without the prior written consent of Sublessor, assign,
transfer, mortgage, pledge, hypothecate or encumber this Sublease or any interest herein or sublet the Subleased Premises or any
part thereof, or permit the use of the Subleased Premises by any party other than Sublessee. Any such assignment or subletting
without such consent by Sublessor shall be void. Any such consent by Sublessor to any such assignment or subletting shall not
release Sublessee from any of Sublessee’s obligations hereunder or be deemed to be a consent to any subsequent assignment,
subletting, occupation or use by another person.

 

7.02
Consent of Sublessor and Master Lessor. Sublessor’s consent to any proposed assignment or a subletting of the entire
Subleased Premises to a single subtenant shall not be unreasonably withheld by Sublessor, but if Sublessor’s consent is
given, shall be subject to the further consent of Master Lessor. If Sublessor consents to an assignment or sublease, Sublessee
agrees to reimburse Sublessor upon demand for reasonable out-of-pocket expenses, including, without limitation, Sublessor’s
legal fees and administrative expenses (and any fees and expenses assessed by the Master Lessor), incurred by Sublessor in connection
with such assignment or sublease.

 

In
no event shall Sublessee have the right to permit the occupancy of any portion of the Subleased Premises by third parties except
following the prior written consent of Sublessor and Master Lessor of any such proposed occupancy, including, without limitation,
any proposed assignment or subletting as set forth herein.

 

7.03
No Release of Sublessee. Regardless of Sublessor’s consent, no subletting or assignment shall release Sublessee of
Sublessee’s obligation or alter the primary liability of Sublessee to pay Rent and to perform all other obligations to be
performed by Sublessee hereunder. The acceptance of Rent by Sublessor from any other person shall not be deemed to be a waiver
of Sublessor of any provision hereof. In the event of default by an assignee, subtenant or any other occupant of the Subleased
Premises in the performance of any of the obligations to be performed by Sublessee hereunder, Sublessor may proceed directly against
Sublessee without the necessity of taking any action against such assignee, subtenant or other occupant.

 

    	 	9	 

     

    

 

7.04
Recapture. Notwithstanding anything to the contrary in this Article VII, in the event Sublessee requests Sublessor’s
consent to an assignment (excluding an assignment to Sysorex), or a sublease of the entire Subleased Premises for the remaining
term of the Sublease, in addition to any rights of Master Lessor under the Master Lease, Sublessor may, in its sole discretion,
elect to terminate this Sublease by giving written notice to Sublessee of such election (such notice to be given within fifteen
(15) days after Sublessor’s receipt of Sublessee’s request), in which case this Sublease shall terminate effective
on the date the proposed assignment or sublease is to be effective. Notwithstanding the above, Sublessee, within five (5) business
days after receipt of Sublessor’s notice of intent to terminate, may withdraw its request for consent to the assignment
or sublease. In that event, Sublessor’s election to terminate the Sublease shall be null and void and of no force and effect.

 

ARTICLE
VIII

INDEMNIFICATION,
RELEASE OF CLAIMS,

WAIVER
OF SUBROGATION AND SUBLESSEE’S INSURANCE REQUIREMENT

 

8.01
Indemnity.

 

(a)
Sublessee shall indemnify Sublessor for and hold Sublessor harmless from and against all costs, expenses (including reasonable
attorneys’ fees), fines, suits, claims, demands, liabilities and actions to the extent resulting from any breach, violation
or nonperformance of any covenant or duty of Sublessee hereunder (including, without limitation, Sublessee’s failure to
perform any of the obligations of tenant under the Master Lease which Sublessee has become obligated hereunder to perform) or
from the negligence or intentional misconduct of Sublessee or Sublessee’s employees, agents, contractors, licensees and
invitees.

 

(b)
Sublessor shall indemnify Sublessee for and hold Sublessee harmless from and against all costs, expenses (including reasonable
attorneys’ fees), fines, suits, claims, demands, liabilities and actions to the extent resulting from any breach, violation
or nonperformance of any covenant or duty of Sublessor hereunder or under the Master Lease or from the negligence or intentional
misconduct of Sublessor or Sublessor’s employees, agents, contractors, licensees and invitees.

 

8.02
Release of Claims and Waiver of Subrogation. SUBLESSOR AND SUBLESSEE AGREE TO RELEASE EACH OTHER FROM AND AGAINST
ANY AND ALL LOSS OF OR DAMAGE TO PROPERTY ARISING OUT OF OR INCIDENT TO ANY PERIL REQUIRED BY THEM TO BE INSURED AGAINST BY THE
MASTER LEASE AND/OR THIS SUBLEASE. THE EFFECT OF SUCH RELEASE IS NOT LIMITED TO THE AMOUNT OF INSURANCE ACTUALLY CARRIED OR REQUIRED
TO BE CARRIED, TO THE ACTUAL PROCEEDS RECEIVED AFTER A LOSS OR TO ANY DEDUCTIBLES APPLICABLE THERETO. EACH PARTY SHALL HAVE THE
INSURANCE COMPANY THAT ISSUES PROPERTY COVERAGE WAIVE ANY RIGHTS OF SUBROGATION AND SHALL HAVE THE INSURANCE COMPANY INCLUDE AN
ENDORSEMENT ACKNOWLEDGING THIS WAIVER, IF NECESSARY. ANY COST ASSOCIATED WITH OBTAINING SUCH A WAIVER FROM EACH PARTY’S
INSURANCE COMPANY SHALL BE BORNE BY THAT PARTY. EITHER PARTY’S FAILURE TO CARRY THE REQUIRED INSURANCE SHALL NOT INVALIDATE
THIS WAIVER.

 

8.03
Insurance Requirement. Sublessee shall maintain at all times during this Sublease the type and limits of insurance coverages
required to be carried by Sublessor as “Tenant” under the Master Lease, as incorporated herein, or such higher amount
as may be required by law or ordinance. Sublessee is encouraged to maintain an extended coverage insurance (including vandalism
and malicious mischief) on Sublessee’s property within the Subleased Premises, including furniture, equipment, trade fixtures,
and other personal property. Such property is not covered by Sublessor’s insurance nor by insurance carried by Master Lessor
under the Master Lease. Sublessee shall provide Sublessor with a certificate of Sublessee’s insurance prior to Sublessee’s
occupancy of the Subleased Premises and shall upon Sublessor’s request make a copy of Sublessee’s insurance policies
available to Sublessor for its review to confirm the required coverages. Sublessor and Master Lessor shall be named as additional
insureds on Sublessee’s liability policy. The companies which issue Sublessee’s insurance policies shall comply with
the applicable requirements of the Master Lease (including without limitation Section 17.6 of the Master Lease).

 

ARTICLE
IX

DEFAULTS
AND REMEDIES

 

9.01
Default by Sublessee; Remedies of Sublessor. Any of the following events shall be deemed an “Event of Default”
by Sublessee under this Sublease:

 

(a)
Sublessee fails to pay when due any Rent or other sums payable by Sublessee hereunder and, unless specifically provided otherwise
herein, such failure continues for five (5) days after delivery to Sublessee of written notice thereof (provided, however, Sublessor
shall not be required to provide such notice to Sublessee more than two (2) times during any consecutive twelve (12) month period
and thereafter, during the remainder of such twelve (12) month period, Sublessee shall be deemed to be in default on the failure
to pay Rent within five (5) days after the due date therefore without any notice from Sublessor);

 

(b)
Sublessee fails to comply with or observe any other provision of this Sublease and such failure continues for thirty (30) days
after delivery to Sublessee of written notice thereof; provided, however, that if the matter is not susceptible of cure within
thirty (30) days, an Event of Default shall not occur unless Sublessee fails to promptly (and in all events within said thirty-day
period) begin, and thereafter diligently proceed to completion, to effect a cure;

 

(c)
Sublessee makes a transfer in fraud of creditors or an assignment for the benefit of creditors;

 

(d)
Any petition is filed by or against Sublessee under any appropriate federal or state bankruptcy or insolvency law; or Sublessee
shall be adjudged bankrupt or insolvent in proceedings filed thereunder; provided however, that in the event of an involuntary
proceeding filed against Sublessee, no Event of Default will occur if Sublessee obtains dismissal of the case within sixty (60)
days after same is filed; or

 

    	 	10	 

     

    

 

(e)
A receiver or trustee is appointed for all or substantially all of the assets of Sublessee.

 

In
the event of an Event of Default by Sublessee, in addition to all other rights of Sublessor hereunder or available to Sublessor
at law or equity, Sublessor shall have all the rights against Sublessee as would be available to the Master Lessor against Sublessor
under the Master Lease if such breach were by Sublessor thereunder. If an Event of Default by Sublessee occurs, and Sublessor
places the enforcement of this Sublease in the hands of an attorney, Sublessee agrees to reimburse Sublessor for all reasonable
expenses incurred by Sublessor as a result thereof including, but not limited to, reasonable attorneys’ fees.

 

ARTICLE
X MISCELLANEOUS

 

10.01
Amendment. No amendment, modification or alteration of the terms hereof shall be binding unless the same shall be in writing,
dated subsequent to the date hereof and duly executed by the parties hereto.

 

10.02
Headings; Interpretation. Descriptive headings are for convenience only and shall not control or affect the meaning or construction
of any provision of this Sublease. Whenever the context of this Sublease requires, words used in the singular shall be construed
to include the plural and vice versa and pronouns of whatsoever gender shall be deemed to include and designate the masculine,
feminine or neuter gender.

 

10.03
Counterparts. For the convenience of the parties, any number of counterparts of this Sublease may be executed by one or more parties
hereto and each such executed counterpart shall be, and shall be deemed to be, an original instrument. This Sublease shall be
deemed binding if executed by facsimile, .pdf or signed originals.

 

10.04
Notices. Subject to Section 1.02 hereof, all notices, consents, requests, instructions, approvals and other communications provided
for herein and all legal process in regard hereto shall be validly given, made or served, in writing and shall be effective upon
the earlier of: (i) receipt, (ii) refusal to accept delivery or (iii) three (3) days after being deposited in the mail, postage
prepaid, via registered or certified mail return receipt requested, or one (1) day after being deposited with a nationally recognized
overnight courier, at the following addresses:

 

If
to Sublessor:

 

Dell
Marketing L.P. c/o Dell Inc.

One
Dell Way

Round
Rock, Texas 78682

Attn:Facilities
Department – Senior Vice President

 

    	 	11	 

     

    

 

With
a copy to:

 

Dell
Marketing L.P.

c/o
Dell Inc. One Dell Way

Round
Rock, Texas 78682

Attention:
Legal Department – Americas Real Estate

 

If
to Sublessee:

 

Prior
to the Commencement Date:

 

Inpixon
Federal, Inc.

2355
Dulles Corner Blvd. Suite 600 Herndon, VA20171

Attention:
Zaman Khan

 

On
and After the Commencement Date:

 

At
the Subleased Premises

Attention:
Zaman Khan

 

or
to such other addresses as any party hereto may, from time to time, designate in writing delivered in a like manner.

 

10.05
Successors and Assigns. This Sublease shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns in accordance with the terms of this Sublease.

 

10.06
Time of the Essence. Time is of the essence in the performance by Sublessee and Sublessor of their obligations hereunder.

 

10.07
Brokerage Commissions. Sublessor has agreed to pay a brokerage commission to CBRE, Inc. (“Sublessor’s Broker”)
and to G & E Real Estate, Inc. d/b/a Newmark Knight Frank (“Sublessee’s Broker”) which commissions are Sublessor’s
responsibility pursuant to a separate agreement between Sublessor and Sublessor’s Broker. Sublessor and Sublessee hereby
represent and warrant each to the other that they have not employed any agents, brokers or other such parties in connection with
this Sublease other than Sublessor’s Broker and Sublessee’s Broker, and each agrees that they shall hold the other
harmless from and against any and all claims of all other agents, brokers or other such parties claiming by, through or under
the respective indemnifying party.

 

10.08
Confidentiality. Sublessee agrees that the existence and details of this Sublease as may be amended are to remain confidential
for the benefit of the parties, and may not be disclosed by Sublessee to anyone, without prior written consent from Sublessor,
provided the parties shall be permitted to disclose the following: (i) the Master Lessor, (ii) the terms and conditions of this
Sublease if required by law or court order; and (iii) to their attorneys, accountants, employees, brokers and existing or prospective
financial partners provided same are advised by the parties of the confidential nature of such terms and conditions and agree
to maintain the confidentiality thereof (in each case, prior to disclosure). The parties shall be liable for any disclosures made
in violation of this Section by the parties or by any entity or individual to whom the terms of and conditions of this Sublease
were disclosed or made available by the parties. The consent by the parties to any disclosures shall not be deemed to be a waiver
on the part of the parties of any prohibition against any future disclosure.

 

    	 	12	 

     

    

 

10.09
OFAC Compliance. Sublessee represents and warrants to Sublessor that Sublessee is not a party with whom Sublessor is prohibited
from doing business pursuant to the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department
of the Treasury, including without limitation those parties named on OFAC’s Specially Designated Nationals and Blocked Persons
List or the U.S. Department of Commerce Denied Persons List. Sublessee is currently in compliance with, and shall at all times
during the Term remain in compliance with, the regulations of OFAC and any other governmental requirement relating thereto. In
the event of any violation of this Section, Sublessor shall be entitled to immediately terminate this Sublease and take such other
actions as are permitted or required to be taken under law or in equity. SUBLESSEE SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS SUBLESSOR
FROM AND AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, RISKS, LIABILITIES AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COSTS)
INCURRED BY SUBLESSOR ARISING FROM OR RELATED TO ANY BREACH OF THE FOREGOING REPRESENTATIONS AND WARRANTIES. These indemnity obligations
shall survive the expiration or earlier termination of this Sublease.

 

10.10
Waiver of Lien by Sublessee. Sublessee shall have no right, and Sublessee hereby waives and relinquishes all rights which Sublessee
might otherwise have, to claim any nature of lien against the Building or to withhold, deduct from or offset against any rent
or other sums to be paid to Sublessor by Sublessee, except as expressly provided under this Sublease.

 

10.11
Remedies Cumulative; Applicable Law. All rights and remedies of Sublessor under this Sublease shall be cumulative and none shall
exclude any other rights or remedies allowed by law; and this Sublease shall be governed by and construed and enforced in accordance
with the internal substantive laws (but not the rules governing conflicts of laws) of the state / province in which the Subleased
Premises is located.

 

10.12
Entire Agreement. The terms and provisions of all Schedules and Exhibits described herein and attached hereto are hereby made
a part hereof for all purposes. This Sublease constitutes the entire agreement of the parties with respect to the subject matter
hereof, and all prior correspondence, memoranda, agreements or understandings (written or oral) with respect hereto are merged
into and superseded by this Sublease.

 

10.13
Authority. Sublessee warrants, represents and covenants that (a) it has full right and authority to execute, deliver and perform
this Sublease, (b) the person executing this Sublease on behalf of Sublessee was authorized to do so and (c) upon request of Sublessor,
Sublessee will deliver to Sublessor satisfactory evidence of the due authorization, execution and delivery of this Sublease by
Sublessee.

 

10.14
Severability. If any term or provision of this Sublease, or the application thereof to any person or circumstance, shall to any
extent be invalid or unenforceable, the remainder of this Sublease, or the application of such provision to persons or circumstances
other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Sublease
shall be valid and shall be enforceable to the extent permitted by law.

 

10.15
No Recording. This Sublease (including any Exhibits hereto) shall not be recorded without the prior written consent of Sublessor.

 

10.16
Master Lessor’s Consent Required. Sublessee acknowledges that, pursuant to the provisions of the Master Lease, Sublessor
may be required to obtain Master Lessor’s written consent to this Sublease as set forth in Section 20 of the Master Lease,
and accordingly, that the obligations of Sublessor hereunder may be expressly subject to Sublessor obtaining such consent. If
Master Lessor’s written consent to this Sublease is required and is not obtained by 5:00 p.m. Eastern time on July 15, 2018,
this Sublease agreement shall automatically terminate and be of no further force and effect.

 

10.17
Exhibits. The Exhibits attached hereto (including, without limitation the Special Provisions contained in Exhibit B
hereto) are incorporated into and made a part of this Sublease for all purposes.

 

[SIGNATURE
PAGE(S) FOLLOW]

 

    	 	13	 

     

    

 

[Signature
Page for that Sublease Agreement]

 

IN
WITNESS WHEREOF, the undersigned Sublessor and Sublessee have executed this Sublease effective as of the date and year first written
above.

 

	 	SUBLESSOR:
	 	 
	 	DELL
    MARKETING L.P., A  Texas  limited partnership
	 	 	 
	 	By:	Dell
    Marketing GP LLC, a Delaware limited liability company, its general partner
	 	 	 
	 	By:	/s/
    Thomas Menla
	 	Name:	Thomas
    Menla
	 	Title:	VP
    Facility

 

 

 

	 	SUBLESSEE:
	 	 	 
	 	INPIXON
    FEDERAL, INC., a Virginia corporation
	 	 	 
	 	By:	/s/
    Zaman Khan
	 	Name:	Zaman
    Khan
	 	Title:	President

 

 

	Exhibits:	 
	 	 
	Exhibit
    A	-
    Depiction of Subleased Premises
	Exhibit
    B	-
    Special Provisions

 

     

     

    

 

 

Exhibit
A

 

Depiction
of Subleased Premises

 

[See
attached.]

 

 

     

     

    

 

 

 

     

     

    

 

Exhibit
B

 

Special
Provisions

 

1.
Phone / IT Requirements. Sublessee, at Sublessee’s cost, will be required to install a phone system and other IT requirements
of Sublessee, subject to the terms of the Master Lease.

 

2.
Security Badge Reader. Any existing security badge reader located in the Subleased Premises may be removed by Sublessor prior
to the Commencement Date.

 

3.
Sublessor’s FF&E. Certain furniture, fixtures and equipment (collectively “Sublessor’s Preliminary FF&E”)
is located in the Subleased Premises as of the Effective Date. Within ten (10) business days following the Effective Date, Sublessee
shall deliver to Sublessor a written notice (“Sublessee’s FF&E Notice”) listing any specific items of Sublessor’s
Preliminary FF&E which Sublessee elects for Sublessor to remove from the Subleased Premises (such items listed for removal
in Sublessee’s FF&E Notice referred to herein as the “Removal FF&E”). If Sublessee timely delivers Sublessee’s
FF&E Notice, then Sublessor shall remove the Removal FF&E from the Subleased Premises on or before commencement of the
Early Access Period. Any items of Sublessor’s FF&E which are not listed for removal in Sublessee’s FF&E Notice
are referred to herein as “Sublessor’s FF&E.” Following the removal of the Removal FF&E, if and as applicable,
Sublessee and Sublessor shall conduct an inventory to obtain a final written list of Sublessor’s FF&E. Sublessee’s
failure to timely deliver Sublessee’s FF&E Notice to Sublessor shall be deemed as Sublessee’s election for all
of Sublessor’s Preliminary FF&E to remain in the Subleased Premises and become Sublessor’s FF&E.

 

Commencing
on the Commencement Date, Sublessee shall be permitted to use Sublessor’s FF&E, at no additional charge to Sublessee,
during the Term of this Sublease, subject to the following terms and conditions:

 

(a)
Sublessor makes no representations or warranty of any kind regarding the condition of the Sublessor’s FF&E, and Sublessee
hereby acknowledges and agrees that Sublessee shall accept and utilize Sublessor’s FF&E in its “AS IS” condition.

 

(b)
Sublessee shall insure Sublessor’s FF&E at its full fair market value and name Sublessor as an additional insured on
such insurance policy.

 

(c)
Sublessee shall be solely responsible for all repair and maintenance of such Sublessor’s FF&E, and Sublessor shall not
be obligated to make or pay for or cause any maintenance, repair or improvements to the Sublessor’s FF&E.

 

(d)
Sublessee may, at Sublessee’s sole cost and expense, remove Sublessor’s FF&E (or items thereof) from the Subleased
Premises so long as Sublessee stores any such removed Sublessor’s FF&E in a manner so that such stored Sublessor’s
FF&E remains in good, clean condition and working order.

 

(e)
Upon expiration or earlier termination of this Sublease, Sublessee shall deliver the Subleased Premises to Sublessor with all
of Sublessor’s FF&E in the Subleased Premises and with all of Sublessor’s FF&E in good, clean condition and
repair, reasonable wear and tear excepted. Notwithstanding anything to the contrary herein, and provided no Event of Default by
Sublessee has occurred under this Sublease, Sublessee shall purchase Sublessor’s FF&E from Sublessor on the Expiration
Date for $1.00 and Sublessee shall be responsible for removal of all Sublessor’s FF&E from the Subleased Premises on
the Expiration Date. In connection with such purchase of the Sublessor’s FF&E by Sublessor in accordance with this Exhibit
B, Sublessor shall execute and deliver to Sublessee a bill of sale (the “Bill of Sale”) in the form attached
hereto as Exhibit B-1, conveying the Sublessor’s FF&E to Sublessee.

 

     

     

    

 

Exhibit
B-1

 

Form
of Bill of Sale

 

BILL
OF SALE

 

DELL
MARKETING L.P., a Texas limited partnership (“Grantor”), for and in consideration of the payment of the sum of
$1.00, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant,
bargain, sell and convey to INPIXON FEDERAL, INC., a Virginia corporation (“Grantee”), the following personal
property (“Property”) in the building located at 13880 Dulles Corner Lane, Herndon, Virginia 20171:

 

The
personal property described on Schedule “1” attached hereto

 

Grantor
warrants that it is the lawful owner of said Property and that it has the full legal right, power and authority to sell said Property.
Grantor further warrants said Property to be free of all encumbrances.

 

GRANTEE
TAKES AND ACCEPTS THE PROPERTY IN ITS “AS-IS,” “WHERE-IS” AND “WITH ALL FAULTS”. EXCEPT FOR
THE WARRANTY OF TITLE PROVIDED HEREIN, GRANTOR HAS NOT MADE, DOES NOT MAKE, AND HEREBY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES,
ON THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE CONDITION, QUALITY, STATE OF REPAIR, OR FITNESS FOR A PARTICULAR PURPOSE OF
THE PROPERTY.

 

IN
WITNESS WHEREOF, the undersigned hereby executes this Bill of Sale this day of                 ,
201 .

 

	 	DELL
    MARKETING L.P., a Texas limited partnership
	 	 	 
	 	By:	Dell
    Marketing GP LLC, a Delaware limited liability company, its general partner

 

	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:Exhibit 10.13

 

SECURITY AGREEMENT

 

	DEBTORS:	 	SECURED PARTY:
	
        Sysorex USA
	 	
        Avnet, Inc.

	 	 	 
	
        ADDRESS:

        17 E Sir Francis Drake Blvd. Ste 110

        Larkspur,
CA 94939
	
         

         

         

        
	
        ADDRESS:

        8700 S. Price Rd. Tempe,

        AZ 85284

 

Sysorex Global, Inc.

 

ADDRESS:

 

2479 E. Bayshore Road, Suite 195

Palo Alto, CA 94303

 

Avnet, Inc., through its
divisions (“AVNET” or “Secured Party”), enters into this Security Agreement (“Agreement”)
with Sysorex USA (“Debtor”) and Sysorex Global, Inc. (collectively “Debtors”) as of the 22nd day of
June 2016 (“Effective Date”).

 

Debtors agree that in order to
secure the full, prompt and satisfactory performance of each and every obligation of Debtors to AVNET, including but not limited
to Debtors’ obligation to make full and timely payment of the invoices issued by AVNET, (the “Obligations”) Debtors
grant to AVNET a purchase money security interest and continuing lien on all Debtors’ right, title and interest (the "Security
Interest") in and to the following described collateral:

 

All inventory, goods or other
tangible assets sold by AVNET to Debtor or Debtors, whether or not such assets are delivered to the Debtors, as well as all accounts,
chattel paper, deposit accounts, accounts receivable, rights to payment of every kind, general intangibles, equipment, fixtures,
inventory, all royalties, instruments, and proceeds that arise from the sale of the inventory and goods to the Debtor or Debtors.

  

In addition, Debtors grants
AVNET a continuing security interest in all of the following, wherever located, now owned or held or hereafter acquired or created:
all of Debtor’s or Debtors’ accounts receivable insurance proceeds, and other rights to payment of every kind as each
of those terms are defined by the Uniform Commercial Code of the State of Arizona in effect as of the date of this Agreement, regardless
as to whether such collateral is in the possession of Debtor or Debtors, warehouseman, bailee, or any other third party (collectively,
the "Collateral") arising at any time under this Agreement or otherwise, together with interest, and renewals or extensions
thereof and whether such indebtedness is reduced, increased or entirely extinguished and thereafter reincurred and attorneys’
fees incurred by Avnet in enforcing this Agreement or collecting payments under it (collectively, the “Collateral”).

 

The Security Interest granted
shall at all times be valid, perfected and enforceable against the Debtors and all third parties, in accordance with the terms
hereof, as security for the unpaid Obligations owing to AVNET as provided above, and, with the exception of the Permitted Liens
(as defined below), the Collateral shall not at any time be subject to any other lien(s) without the prior written approval of
AVNET.

 

     

     

    

 

Debtors warrant, covenant
and agree: (1) to pay and perform all of the obligations secured by this Agreement (including but not limited to AVNET's cost of
enforcement, collection and attorney's fees), to defend title to the Collateral, to keep the Collateral free and clear of all mortgages,
liens (with the exception of the Permitted Liens), pledges, charges, encumbrances, further security interests, taxes and assessments
and to keep, at its sole expense, the Collateral in good repair and condition; (2) to keep the Collateral insured (with insurers
acceptable to AVNET) against loss by fire, theft and other hazards in an amount equal to at least one hundred percent (100%) of
the replacement value of the Collateral and evidence such by providing AVNET current certificates of insurance, with the loss payable
and proceed clauses directly payable first to the Bank to satisfy obligations owed under the Credit Facility, then to the Investors,
to satisfy the obligations owed for the Financing and then to AVNET (3) that on demand by AVNET, to furnish further assurance of
title, execute and deliver any instrument or do other acts necessary to effectuate the purposes of this Agreement; (4) to promptly
notify AVNET of any change in the location of or with respect to the financial condition or the discontinuance of Debtors’
businesses; (5) promptly notify AVNET of the commencement of any litigation or governmental proceeding against the Debtors which,
if adversely determined, might affect Debtors, or Debtors' businesses, or Debtors’ ability to repay the Obligations in any
material respect; and (6) Debtors’ operations are and will continue to be in compliance with and not in violation of all
applicable laws and regulations.

 

If Debtors shall fail to
procure or to pay the premium on any insurance required to be maintained by this Agreement, AVNET is hereby authorized (but not
obligated) to pay and advance any sums required and all such advances shall be secured by the Collateral and be repaid immediately
by Debtors upon notice by AVNET. Debtors shall give AVNET or any persons designated by AVNET the right, without hindrance or delay,
upon ten Business Days' notice, during normal business hours, to inspect, audit, check and make copies of Debtor's books, records
and accounts.

 

Debtors will be in default of this Agreement upon
the occurrence of any of the following:

 

		(1)	failure to perform any obligation under this Agreement;

 

		(2)	failure to pay any invoice, note, account, obligation
or liability due AVNET in accordance with the certain Repayment Agreement (the “Repayment Agreement”) of even date
herewith ;

 

		(3)	making any false or misleading statement, representation
or warranty in connection with this Agreement;

 

		(4)	commencement of insolvency or like proceedings against
Debtors or their parent, affiliate, subsidiary or division or any assignment for the benefit of creditors, receiver or trustee;

 

		(5)	any material adverse change in the financial condition
of Debtors, reduction in value of the Collateral, or any action by Debtors to cease operations or business conducted;

 

		(6)	any loss, theft, damage, sale, transfer or conveyance
of the Collateral, except in the ordinary course of business;

 

		(7)	the death, dissolution, termination of existence,
insolvency, business failure, or like event of Debtors or any guarantor or surety for Debtors; or

 

		(8)	when AVNET, in its sole judgment, deems itself, in
good faith, unsecured for any reason whatsoever.

 

Subject to the rights of the
holders of the Permitted Liens, upon Default and at any time after such Default, (1) AVNET may declare all obligations secured
by this Agreement immediately due and payable in full without presentment, demand, protest or notice of dishonor of any kind, all
of which are hereby expressly waived, and AVNET shall have all the rights, remedies and privileges with respect to repossession,
retention and sale of the Collateral and disposition of the proceeds available to a secured party under the Uniform Commercial
Code of the State of Arizona in effect as of the date of this Agreement; (2) AVNET may enter peaceably onto Debtors’ premises
to possess, render unusable by Debtors, dispose of or require Debtors to assemble the Collateral and deliver or make it available
to AVNET at a place to be designated by AVNET; (3) AVNET may foreclose its liens, security interests and assignments or exercise
any powers of sale; and/or (4) AVNET may pursue all rights and remedies available at law or in equity. All expenses, (including
but not limited to reasonable attorneys' fees) costs of collection, sale or storage or the like shall be borne by Debtors.

 

    	 	2	 

     

    

 

AVNET acknowledges that Western Alliance Bank, as successor
in interest to Bridge Bank National Association (the “Bank”), is the holder of a first priority lien against all of
the assets of Debtors, including the Collateral, to secure repayment of a credit facility in the amount of $12 million (the “Credit
Facility”).

 

AVNET acknowledges that Debtors intend to obtain $5 million
in financing from investors (“Investors”) in the form of convertible promissory notes (the “Financing”),
which Financing shall be secured by a lien against all of the assets of Debtors, including the Collateral. Together, the lien securing
the Credit Facility and the lien that will secure the Financing shall be referred to as the “Permitted Liens”.

 

AVNET agrees that: (i) the Obligations shall be subordinated
in right of payment to the prior payment in full of the Credit Facility and the Financing, and (ii) the Obligations are, and shall
be, subject and subordinate in all respects to the liens, terms, covenants and conditions of the Credit Facility and the Financing
and to all advances heretofore made or that may hereafter be made pursuant to the terms of the Credit Facility and the Financing

 

AVNET agrees that if it acquires by right of subrogation or
otherwise a lien on the Collateral which (but for this paragraph) would be senior to the liens securing the Credit Facility or
the Financing, then, in that event, such lien shall be subject and subordinate to the Permitted Liens.

 

AVNET agrees that it will execute an agreed upon form of Subordination
Agreement provided by the Bank.

 

Debtors agree that waiver
or acquiescence in any Default, or AVNET's failure to strictly enforce Debtors’ performance of the obligations under the
Agreement, shall not constitute a waiver of any subsequent or other Default or failure. Notices to either party shall be sent by
certified mail or other guaranteed delivery to the address set forth above. AVNET may assign this Agreement; however, Debtors may
not. All rights of AVNET shall inure to its successors and assigns; and all obligations, duties and promises of Debtors shall be
binding upon its heirs, executors or administrators. If Debtors are a partnership, joint venture or proprietorship, then the liabilities
pursuant to this Agreement shall be joint and several. Except as otherwise expressly provided herein, the rights and obligations
of the parties shall be governed by the laws of the State of Arizona, including the Uniform Commercial Code as adopted by the State
of Arizona.

 

Any amendment or modification
of this Agreement must be in a separate writing expressly identified as such and signed by the authorized representatives of both
parties in order to be effective. This Agreement and all other documents executed in connection herewith shall constitute the entire
agreement between the parties hereto and shall supersede all other prior agreements, written or oral, with respect thereto. If
any provision of this Agreement is held invalid, the remaining provisions shall continue in full force and effect and the parties
shall substitute for the invalid provision a valid provision which most closely approximates the economic effect and intent of
the invalid provision.

 

Debtors hereby irrevocably appoint
AVNET (and any AVNET designated employees and/or agents) its attorney-in-fact to execute any Security Interest related financing
statements, other instruments, and to do such other acts and things as may be necessary to establish, perfect or preserve the Security
Interest in and to the Collateral.

 

    	 	3	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the Effective Date.

 

	DEBTORS:	 
	Sysorex USA	 

 

	BY: 	/s/
    Nadir Ali	 

	PRINTED NAME:	NADIR
    ALI	     

	ITS AUTHORIZED REPRESENTATIVE	 	 

 

	Sysorex Global, Inc.	 

 

	BY: 	/s/
    Nadir Ali	 

	PRINTED NAME:	NADIR
    ALI	      

	ITS AUTHORIZED REPRESENTATIVE	 	 

 

SECURED PARTY:

AVNET, INC.

 

	BY: 	     	        

	PRINTED NAME:		         

	ITS AUTHORIZED REPRESENTATIVE	 	        

 

 

4

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