Document:

Exhibit
10.1

 

Promissory
Note

 

FOR
VALUE RECEIVED, Cachet Financial Solutions, Inc. a Delaware corporation (“Borrower”), having an office at Southwest
Tech Center A, 18671 Lake Drive East, Minneapolis, MN 55317 , unconditionally promises to pay to the order of James L. Davis (“Lender”),
with an office at 6446 Flying Cloud Drive, Eden Prairie, MN 55344 the principal sum of Two Hundred Twenty Six Thousand Six Hundred
Fifty Dollars ($238,950) (the “Loan”) outstanding hereunder together with all accrued interest thereon, as
provided in this Promissory Note (the “Note”).

 

1.
Repayment. This Note shall be repaid in six monthly installments of $40,982.82, which includes interest. Unless Lender
otherwise designates in writing to the Borrower, such monthly installment shall be paid to KLC Financial on behalf of Lender

 

2.
Payments.
Payments made under this Note shall be in accordance with the following:

 

2.1
Manner of Payments.
All payments of interest and principal shall be made in lawful money of the United States of America.

 

2.2
Application of Payments.
All payments, including insufficient payments, shall be credited, regardless of their designation by Borrower, first to collection
expenses due hereunder, then to interest due and payable but not yet paid, and the remainder, if any, to principal.

 

3.
Interest.
Interest under this Note shall be as follows:

 

3.1
Interest Rate. If any portion of this
Note is not paid when due, Borrower shall pay interest to Lender on the unpaid principal amount of the Loan outstanding hereunder,
accruing from the date such payment was due to the date on which the entire principal sum hereof has been paid in full, computed
on the basis of the actual number of days elapsed in a 365 day year, at a rate per annum which shall be equal to 10%, compounded
annually as of the last day of each calendar year. In no event shall interest exceed the maximum legal rate permitted by law.

 

3.2
Interest Payable. Any interest which shall
become payable pursuant to Section 3.1 shall be payable ON DEMAND. Borrower may make whole or partial interest payments at any
time prior to demand, without penalty and without affecting any other provisions of this Note.

 

4.
Representations and Warranties of Borrower.
Borrower hereby represents and warrants as of the date of this Note, as follows:

 

4.1
Existence.
Borrower is a corporation duly incorporated/, validly existing and in good standing under the laws of its state of organization.

 

    	 

     

    

 

4.2
 Power and Authority.
Borrower has the power and authority, and the legal right, to execute and deliver this Note and to perform its obligations hereunder.

 

4.3
Authorization, Execution and Delivery.
The execution and delivery of this Note by Borrower and the performance of its obligations hereunder have been duly authorized
by all necessary corporate action in accordance with all applicable laws. Borrower has duly executed and delivered this Note.

 

4.4
Enforceability.
This Note is a valid, legal and binding obligation of Borrower, enforceable against Borrower in accordance with its terms except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

4.5
No Approvals.
No consent or authorization of, filing with, notice to or other act by, or in respect of, any governmental authority or any other
person is required in order for Borrower to execute, deliver, or perform any of its obligations under this Note.

 

4.6
No Violations. The execution
and delivery of this Note and the consummation by Borrower of the transactions contemplated hereby do not and will not (a) violate
any provision of Borrower’s organizational documents; (b) violate any law or order applicable to Borrower or by which any
of its properties or assets may be bound; or (c) constitute a default under any material agreement or contract by which Borrower
may be bound.

 

5.
Representations and Warranties of Lender. Lender hereby represents and warrants as of the date of this Note, as follows:

 

5.1
Acquisition of Securities. Lender is acquiring the warrant (“Warrant”) referred to herein and common
stock (“Common Stock”) received upon exercise of the warrant (the “Underlying Shares,” and together with
the Warrants, the “Securities”) as principal for its own account and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of the Securities. Lender understands that the Common Stock,
Warrant and Underlying Shares are “restricted securities” and have not been registered under the Securities Act or
any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or
for distributing or reselling the Securities or any part thereof in violation of the Securities Act or any applicable state securities
law, has no present intention of distributing any of the Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of the Securities in violation of the Securities Act or any applicable state securities law.

 

5.2
Accredited Investor. At the time such Lender was offered the Securities, it was, and as of the date hereof it is, and on
each date on which it exercises the Warrant, it will be an “accredited investor” as defined in Rule 501 under the
Securities Act.

 

5.3 Legend.
Lender acknowledges the Warrant and Underlying Shares will include an appropriate legend identifying the Securities as
restricted securities.

 

    	 

     

    

 

6.
Events of Default. The occurrence and continuance of any of the following shall constitute an Event of Default hereunder:

 

6.1
Failure to Pay. The Borrower fails to pay any monthly installment when due and such failure continues for 5 days after
written notice to the Borrower.

 

6.2
Bankruptcy.

 

(a)
the Borrower commences any case, proceeding or other action (i) under any existing or future law relating to bankruptcy, insolvency,
reorganization, or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate
it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition
or other relief with respect to it or its debts or (ii) seeking appointment of a receiver, trustee, custodian, conservator or
other similar official for it or for all or any substantial part of its assets, or the Borrower makes a general assignment for
the benefit of its creditors; or

 

(b)
there is commenced against the Borrower any case, proceeding or other action of a nature referred to in Section 6.2(a) above which
(i) results in the entry of an order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged
or unbonded for a period of 30 days

 

7.
Remedies. Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event of
Default, Lender may at its option, by written notice to the Borrower declare the entire principal amount of this Note, together
with all accrued interest thereon and all other amounts payable hereunder, immediately due and payable provided, however
that, if an Event of Default described in Section 6.2 shall occur, the principal of and accrued interest on this Note shall become
immediately due and payable without any notice, declaration or other act on the part of the Lender.

 

8.
Miscellaneous.
Lender and Borrower further agree as follows:

 

8.1
Notices.
All notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writing at
the addresses set forth above of this Note or such other address as either Borrower or Lender may from time to time specify in
writing. Notices mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been
given when received. Notices sent by facsimile during the recipient’s normal business hours shall be deemed to have been
given when sent (and if sent after normal business hours shall be deemed to have been given at the opening of the recipient’s
business on the next business day). Notices sent by e-mail shall be deemed received upon the sender’s receipt of an acknowledgment
from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgment).

 

    	 

     

    

 

8.2
Warrants. As an additional inducement to Lender to advance amounts hereunder, Borrower shall issue to Lender a warrant
to acquire 24,000 shares of Borrower’s common stock at 6.75 per share. Such warrants shall be exercisable for five years
from the date of issuance and shall be on Borrower’s standard form.

 

8.3
Origination Fee. Borrower shall pay Lender’s
origination fee in the amount of $12.970.00 to KLC Financial.

 

8.4
Governing Law.
This Note and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising
out of or relating to this Note and the transactions contemplated hereby shall be governed by the laws of the State of Minnesota,
excluding its conflicts of law provisions.

 

8.5
Waiver of Jury Trial.
BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY.

 

8.6
Counterparts, Integration, Effectiveness.
This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute
an original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between the
parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with
respect thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (i.e., “pdf”
or “tif”) format shall be effective as delivery of a manually executed counterpart of this Note.

 

8.7
Successors and Assigns.
This Note may not be assigned, transferred or negotiated by Lender to any entity without the consent of Borrower. Borrower may
not assign or transfer this Note or any of its rights hereunder without the prior written consent of Lender. This Note shall inure
to the benefit of and be binding upon the parties hereto and their permitted successors and assigns.

 

8.8
Amendment and Waiver.
No term of this Note may be waived, modified or amended except by an instrument in writing signed by both of the parties hereto.
Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

 

8.9
Headings.
The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit
any of the terms or provisions hereof.

 

8.10
No Waiver; Cumulative Remedies.
No failure to exercise and no delay in exercising on the part of Lender, of any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers
and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

8.11
Severability.
If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or
provision in any other jurisdiction.

 

[signature
page follows]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Note as of August 22, 2016.

 

	 	CACHET
    FINANCIAL SOLUTIONS, INC., 

    as Borrower
	 	 
	 	By:	/s/
    Bryan Meier
	 	Name:	Bryan
    Meier
	 	Title:	CFO
	 	 	 
	 	By:	/s/
    James L. Davis
	 	Name:	James
    L. DavisExhibit
10.2

 

NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933 AND APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (I) AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 (AND APPLICABLE STATE SECURITIES LAWS) OR (II) AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS.

 

CACHET
FINANCIAL SOLUTIONS, INC.

a
Delaware corporation

 

WARRANT
TO PURCHASE COMMON STOCK

 

	Warrant
    No. W2016-08-01 	Issue
    Date: August 22, 2016

 

Cachet
Financial Solutions Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received,
James L. Davis or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company
up to a total of 24,000 shares of common stock, $0.0001 par value per share (the “Common Stock”), of the Company
(the “Warrant Shares”) at a purchase price per share equal to $6.75 (as adjusted from time to time as provided
herein, the “Exercise Price”), at any time and from time to time from and after the Issue Date hereof (as noted
above) and through and including 5:00 p.m., Minneapolis time, on August 22, 2021 (the “Expiration Date”), subject
to the following terms and conditions:

 

1.
Registration of Warrants. The Company shall register this Warrant, upon records to be maintained by the Company for that
purpose (the “Warrant Register”), in the name of the record Holder (which shall include the initial Holder
or, as the case may be, any registered assignee to which this Warrant is permissibly assigned hereunder) from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise
hereof or any distribution to the Holder, and for all other purposes, absent actual written notice to the contrary.

 

    	 

     

    

 

2.
Registration of Transfers. Subject to the restrictions on transfer set forth in Section 11(b) and compliance with all applicable
securities laws, the Company shall register the transfer of all or any portion of this Warrant in the Warrant Register upon (i)
surrender of this Warrant, together with the Form of Assignment attached hereto duly completed and signed, to the Company at its
address specified herein and (ii) the delivery, at the request of the Company, (A) by either the transferor or transferee, of
an opinion of counsel, reasonably satisfactory to the Company in both form and substance, to the effect that the transfer of this
Warrant (or applicable portion thereof) may be made pursuant to an available exemption from the registration requirements of the
Securities Act of 1933 (the “Securities Act”) and all applicable state securities laws and/or (B) delivery
by the transferee of a written statement to the Company certifying that the transferee is an “accredited investor”
as defined in Rule 501(a) under the Securities Act and making representations to the Company customary for transactions of such
type. Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially the form of this Warrant
(a “New Warrant”) evidencing the portion of this Warrant so transferred shall be issued to the transferee,
and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring
Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of
the rights and obligations of a Holder of a Warrant.

 

3.
Exercise and Duration of Warrants.

 

(a)
All or any part of this Warrant shall be exercisable by the registered Holder at any time and from time to time on or after the
Issue Date and through and including 5:00 p.m. Minneapolis time on the Expiration Date. At 5:00 p.m. Minneapolis time on the Expiration
Date, the portion of this Warrant not exercised prior thereto shall be void and of no value and this Warrant shall terminate and
be cancelled on the Warrant Register and other applicable books and records of the Company.

 

(b)
The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice in the form attached hereto (the “Exercise
Notice”), appropriately completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant
Shares as to which this Warrant is being exercised. The date on which such items are delivered to the Company (as determined in
accordance with the notice provisions hereof) is an “Exercise Date.” The right of the Holder to exercise this
Warrant and receive Warrant Shares pursuant hereto shall at all times be subject to the availability of a valid exemption from
the registration requirements of the Securities Act, as determined by the Company in its reasonable discretion. The Holder shall
not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise
Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to
purchase the remaining number of Warrant Shares, and the Company shall update the Warrant Register upon any partial exercise to
reflect the number of Warrant Share purchasable hereunder. The Warrant Register of the Company shall be definitive and controlling
for all purposes absent manifest error. Therefore, the Holder is hereby put on notice that the number of Warrant Shares contained
on the face of this Warrant may not represent the actual number of Warrant Shares purchasable under this Warrant.

 

4.
Delivery of Warrant Shares. Upon exercise of this Warrant, the Company shall promptly (but in no event later than ten business
days after the Exercise Date) issue or cause to be issued and cause to be delivered to (or upon the written order of) the Holder,
in such name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such exercise. The certificate
will contain appropriate restrictive legends unless a registration statement covering the resale of the Warrant Shares and naming
the Holder as a selling stockholder thereunder is then effective or the Warrant Shares are otherwise freely transferable without
volume restrictions pursuant to Rule 144 under the Securities Act. The Holder, or any person permissibly so designated by the
Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise
Date.

 

    	2

     

    

 

5.
Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant
shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense
in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however,
that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration
of any certificates for Warrant Shares or Warrants in a name other than that of the Holder or an affiliate thereof. The Holder
shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving
Warrant Shares upon exercise hereof.

 

6.
Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be
issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant,
but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case) and,
in each case, a customary and reasonable indemnity, if requested. Applicants for a New Warrant under such circumstances shall
also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company
may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated
Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

7.
Reservation of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate
of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares
upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the
Holder (taking into account the adjustments and restrictions of Section 8). The Company covenants that all Warrant Shares so issuable
and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and non-assessable.

 

8.
Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject
to adjustment from time to time as set forth in this Section 8.

 

(a)
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on
its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii)
subdivides its outstanding shares of Common Stock into a larger number of shares, or (iii) combines its outstanding shares of
Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding immediately before such event and the denominator
of which shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant
to clause (i) of this paragraph shall become effective immediately after the record date for the determination of shareholders
entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall
become effective immediately after the effective date of such subdivision or combination.

 

    	3

     

    

 

(b)
Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the Company effects any merger or consolidation
of the Company with or into another person, in which the Company is not the survivor, (ii) the Company effects any sale of all
or substantially all of its assets or a majority of its Common Stock is acquired by a third party, in each case, in one or a series
of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another person) is completed pursuant
to which all or substantially all of the holders of Common Stock are permitted to tender or exchange their shares for other securities,
cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (including but not
limited to any triangular merger transaction in which the Company survives the merger but its outstanding Common Stock is converted
thereupon into the right to receive securities of another person, but excluding any subdivision or combination of shares of Common
Stock covered by Section 8(a) above) (in any such case, a “Fundamental Transaction”), then, in any such case,
(X) the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities,
cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been,
immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant without regard to any limitations on exercise contained herein (the “Alternate Consideration”),
or (Y) at the discretion of the Company, the Holder shall be paid an aggregate amount of cash equal to the positive difference,
if any, of the total value of the Warrant Shares purchasable under this Warrant (determined by reference to the value ascribed
to the Common Stock in the Fundamental Transaction) less the aggregate Exercise Price for all such Warrant Shares. The Company
shall not effect any such Fundamental Transaction unless prior to or simultaneously with the consummation thereof, any successor
to the Company, surviving entity or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation
or entity shall assume the obligation to deliver to the Holder, such Alternate Consideration as, in accordance with the foregoing
provisions, the Holder may be entitled to purchase and/or receive (as the case may be), and the other obligations under this Warrant.
The provisions of this paragraph (c) shall similarly apply to subsequent transactions analogous to a Fundamental Transaction.
Notwithstanding anything else to the contrary contained herein, in the event that this Warrant is out-of-the-money immediately
prior to the consummation of a Fundamental Transaction, the Company shall have the right to cancel this Warrant in its entirety.

 

(c)
Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) of this Section,
the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately,
so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant
Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

(d)
Calculations. All calculations under this Section 8 shall be made to the nearest cent or the nearest 1/100th of a share,
as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or
for the account of the Company, and the sale or issuance of any such shares shall be considered an issue or sale of Common Stock.

 

(e)
Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 8, the Company at its expense will,
at the written request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant
and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number
or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the
Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s transfer agent.

 

    	4

     

    

 

(f)
Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i) declares a dividend or any other distribution
of cash, securities or other property in respect of its Common Stock, (ii) authorizes or approves, enters into any binding agreement
contemplating or solicits shareholder approval for any Fundamental Transaction, or (iii) authorizes the voluntary dissolution,
liquidation or winding up of the affairs of the Company, then, except if such notice and the contents thereof shall be deemed
to constitute material non-public information, the Company shall deliver to the Holder a notice describing the material terms
and conditions of such transaction at least five business days prior to the applicable record or effective date on which a person
would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take
all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant
prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver
such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.

 

9.
No Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu
of any fractional shares which would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to
the next whole number and no payment for any dropped fraction will be made.

 

10.
Notices. Any and all notices or other communications or deliveries hereunder (including without limitation any Exercise
Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number specified below on or prior to 5:00 p.m. Minneapolis time
on a business day, (ii) the next business day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified below on a day that is not a business day or later than 5:00 p.m. Minneapolis time
on any business day, (iii) the business day following the date of mailing, if sent by nationally recognized overnight courier
service specifying next business day delivery, or (iv) upon actual receipt by the party to whom such notice is required to be
given, if by hand delivery. The address and facsimile number of a party for such notices or communications shall be as set forth
below (subject to change upon at least two business days’ prior notice to the other party in accordance with this Section).

 

	If
    to the Company:	 	Cachet
    Financial Solutions, Inc.
	 	 	Southwest
    Tech Center A
	 	 	18671
    Lake Drive East
	 	 	Minneapolis,
    MN 55317
	 	 	Attention:
    Bryan Meier, CFO
	 	 	Facsimile:
    (952) 698-6999
	 	 	 
	If
    to Holder:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Facsimile:	

 

    	5

     

    

 

11.
General Provisions.

 

(a)
The Holder, solely in such person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends
or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed
to confer upon the Holder, solely in such person’s capacity as the Holder of this Warrant, any of the rights of a stockholder
of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such person is then entitled to receive
upon the due exercise of this Warrant.

 

(b)
Subject to the restrictions on transfer set forth on the first page hereof (legend) and subject to strict compliance with applicable
securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company except to a successor
or assignee in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the parties
hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed
to give to any person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this
Warrant.

 

(c)
ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA WITHOUT REGARD TO THE CONFLICTS-OF-LAW PRINCIPLES THEREOF.

 

(d)
The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect
any of the provisions hereof.

 

(e)
In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby, and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(f)
This Warrant constitutes the entire agreement between the parties with respect to the subject matter hereof. This Warrant may
be amended only in writing signed by the Company and the Holder, or their successors and assigns. Neither the Company nor Holder
has made or relied on any representations not contained in this Warrant.

 

    	6

     

    

 

12.
Dispute Resolution.

 

(a)
To the greatest extent possible, the parties will endeavor to resolve any disputes relating to this Warrant through amicable negotiations.
Failing an amicable settlement, any controversy, claim or dispute arising under or relating to this Warrant, including the existence,
validity, interpretation, performance, termination or breach of the agreement evidenced by this Warrant, will finally be settled
by binding arbitration before a single arbitrator (the “Arbitration Tribunal”) which will be jointly appointed
by the parties. The Arbitration Tribunal shall self-administer the arbitration proceedings utilizing the Commercial Rules of the
American Arbitration Association (the “Association”); provided, however, the Association shall not be involved
in administration of the arbitration. The arbitrator must be a retired judge of a state or federal court of the United States
or a licensed lawyer with at least 15 years of corporate or commercial law experience from a law firm with at least ten attorneys
and at least an AV rating by Martindale Hubbell. If the parties cannot agree on an arbitrator, any party may request any court
sitting in Minneapolis, Minnesota to appoint an arbitrator, which appointment will be final. The arbitration will be held in Minneapolis,
Minnesota.

 

(b)
Each party will have discovery rights as provided by the Federal Rules of Civil Procedure within the limits imposed by the arbitrator;
provided, however, that all such discovery will be commenced and concluded within 60 days of the selection of the arbitrator.
It is the intent of the parties that any arbitration will be concluded as quickly as reasonably practicable. Once commenced, the
hearing on the disputed matters will be held four days a week until concluded, with each hearing date to begin at 9:00 a.m. and
to conclude at 5:00 p.m. The arbitrator will use all reasonable efforts to issue the final written report containing award or
awards within a period of five business days after closure of the proceedings. Failure of the arbitrator to meet the time limits
of this Section will not be a basis for challenging the award. The Arbitration Tribunal will not have the authority to award punitive
damages to either party. Each party will bear its own expenses, but the parties will share equally the expenses of the Arbitration
Tribunal. The Arbitration Tribunal shall award attorneys’ fees and other related costs payable by the losing party to the
successful party as it deems equitable. This terms of this Warrant will be enforceable, and any arbitration award will be final
and non-appealable, and judgment thereon may be entered in any court of competent jurisdiction.

 

*
* * * * * *

 

    	7

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of August 22, 2016.

 

	 	CACHET
    FINANCIAL SOLUTIONS, INC.
	 	 	 
	 	By:
    	/s/
    Bryan D. Meier
	 	 	Bryan
    D. Meier
	 	 	Executive
    Vice President & Chief Financial Officer

 

    	 

     

    

 

FORM
OF EXERCISE NOTICE

 

(To
be executed by the Holder to exercise the right to purchase shares of Common Stock

under
the foregoing Warrant)

 

Ladies
and Gentlemen:

 

(1)
The undersigned is the Holder of Warrant No. __________ (the “Warrant”) issued by Cachet Financial Solutions, Inc.,
a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined herein have the respective
meanings set forth in the Warrant.

 

(2)
The undersigned hereby exercises its right to purchase __________ Warrant Shares pursuant to the Warrant.

 

(3)
Pursuant to this Exercise Notice, the Company shall deliver to the Holder _____________ Warrant Shares in accordance with the
terms of the Warrant.

 

Name
of Holder: ________________________________________ 

 

Signature:
 ____________________________________________

 

Title
(if applicable):  _____________________________________

 

Dated:
 ___________________________________

 

Note:
signature must conform in all respects to name of Holder as specified on the face of the Warrant.

 

    	 

     

    

 

FORM
OF ASSIGNMENT

 

(To
be completed and signed only upon transfer of Warrant)

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto __________________ (the “Transferee”) the
right represented by the within Warrant to purchase shares of Common Stock of Cachet Financial Solutions, Inc. (the “Company”)
to which the within Warrant relates and appoints _____________ as the attorney-in-fact of the undersigned to transfer said right
on the books of the Company with full power of substitution in the premises. In connection therewith, the undersigned represents,
warrants, covenants and agrees to and with the Company that:

 

	(a)	the
                                         offer and sale of the Warrant contemplated hereby is being made in compliance with Section
                                         4(1) of the United States Securities Act of 1933 (the “Securities Act”) or
                                         another valid exemption from the registration requirements of Section 5 of the Securities
                                         Act and in compliance with all applicable securities laws of the states of the United
                                         States;

 

	(b)	the
                                         undersigned has not offered to sell the Warrant by any form of general solicitation or
                                         general advertising, including but not limited to any advertisement, article, notice
                                         or other communication published in any newspaper, magazine or similar media or broadcast
                                         over television or radio, and any seminar or meeting whose attendees have been invited
                                         by any general solicitation or general advertising;

 

	(c)	the
                                         undersigned has read the Transferee’s investment letter included herewith, and
                                         to its actual knowledge, the statements made therein are true and correct; and

 

	(d)	the
                                         undersigned understands that the Company may condition the transfer of the Warrant contemplated
                                         hereby upon the delivery to the Company by the undersigned or the Transferee, as the
                                         case may be, of a written opinion of counsel (which opinion shall be in form, substance
                                         and scope customary for opinions of counsel in comparable transactions) to the effect
                                         that such transfer may be made without registration under the Securities Act and under
                                         applicable securities laws of the states of the United States.

 

Name
of Holder: ________________________________________ 

 

Signature:
____________________________________________  

 

Title
(if applicable):  _____________________________________

 

Dated:
___________________________________ 

 

Note:
signature must conform in all respects to name of Holder as specified on the face of the Warrant.

 

Address
of Transferee:

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