Document:

Guaranty

Cachet Financial Solutions, Inc. to James
Davis

 

Whereas,
James Davis (“Davis”) is an investor and member of the Board of Directors
of Cachet Financial Solutions, Inc. (“Cachet”); 

 

Whereas,
Davis is willing to put the attached equipment lease (the “Lease”) with
KLC Financial, Inc. (the “Lessor”) in his name; and

 

Whereas,
Cachet is willing to guaranty the Lease and the payments due under the Lease to Lessor;

 

Now
Therefore, in consideration of the promises and covenants herein set forth, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:

 

1. Guaranty
of Indebtedness. Cachet hereby guarantees unconditionally the payment of all amounts due under the Leased and the satisfaction
of all terms and obligations under the Lease.

 

2. Notice.
In the event of enforcement of this Guaranty, Davis will provide timely notice to Cachet to enable Cachet either to pay the guaranty
to Davis or Lessor, or to contest Lessor’s collection efforts. If Cachet & Davis collaborate in contesting the collection
of Lessor, then they will reach a litigation agreement at that time allocating potential expenses and recoveries.

 

3. Collection.
After the notice to Cachet in paragraph 2, Davis and/or Lessor may require the amount owed of Cachet, and Davis waives any right
to require Lessor to demonstrate the validity, regularity, enforceability or authority recognized in this agreement. Cachet waives
any defense to Davis regarding the validity, regularity or enforceability of the Lease, and, should any defense wish to be asserted,
is to be asserted against Lessor directly and Davis agrees to assign any claim or right and power of defense in that regard to
Cachet. Cachet further agrees that the failure of Davis (a) to perfect any lien on or security interest in any property given by
Lessor or Cachet of the indebtedness or any guaranty, or to record or file an document relating to it, or (b) to file or enforce
a claim against the estate (either in administration, bankruptcy, or other proceeding) of Lessor, any guarantor, maker or endorser,
will not in any manner whatsoever terminate, diminish, exonerate or otherwise affect the liability of Cachet under this Agreement.
Other than the notice in paragraph 2, Cachet waives any notice of acceptance, diligence, all rights of setoff and counterclaim,
all demands, presentments, protests, notices of protests, notices of nonperformance, notices of dishonor, and all other notices
of very kind or nature, including notices of the existence, creation or incurring of indebtedness against Davis. Cachet agrees
to stand in the shoes of Davis vis-à-vis Lessor, and waives any obligation whatsoever, including notice, diligence, right
of setoff and counterclaim, demands, presentments, protests, delays, notices of protest, notices of nonperformance, notices of
dishonor and all other notices of very kind or nature, including notices of the existence, creation or incurring of indebtedness
that Lane has waived or been found unenforceable.

 

4. No Delays.
No failure or delay by Davis in exercising any right, power or privilege under this Guaranty will operate as a waiver of that right,
power or privilege; nor will any single or partial exercise of any right, power or privilege under this Guaranty preclude any other
or further exercise of any other right, power or privilege.

 

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5. Integration.
This Guaranty, including the recitals, contains all the terms and conditions of the Agreement between Davis and Cachet on this
subject, and is an integrated agreement. Its terms may be modified or waived only by written agreement, signed by Davis and Cachet.

 

6. Termination.
This Guaranty terminates at the earliest of (a) Cachet’s satisfaction of the Lease, (b) termination or forgiveness by Davis,
or (c) payment or satisfaction by Cachet to Lessor of all amounts due under the Lease.

 

7. Binding
Effect. This Guaranty will remain in full force and effect, and be binding in accordance with its terms on the Parties, and
the representatives, executors, administrators, heirs, successors and assigns of Cachet, and inure to the benefit of Davis’s
successors, endorsees, transferees, and assigns until the obligations and liabilities under this Guaranty have been satisfied or
otherwise Terminated.

 

8. Venue
and Law. The Parties acknowledge and agree that they entered into this Guaranty in the State of Minnesota and that the Agreement
should be construed, enforced and performed pursuant to the laws of the State of Minnesota without reference to principles of conflicts
of law. All claims or actions related to this Agreement must be brought in the state or federal court located in Hennepin County,
Minnesota, and the Parties agree that personal jurisdiction and venue in such jurisdiction are proper.

 

9. Knowing
and Voluntary Acceptance of Agreement. Each of the Parties acknowledges and represents that it has been represented by counsel
or has had the opportunity to be represented by counsel in connection with their consideration and execution of this Agreement.
Each Party represents that it has the power to enter into this Agreement, and freely represents and declares that in executing
these document, it has relied solely upon its own judgment, belief, and knowledge, and the advice and recommendation of its own
independently-selected counsel, concerning the nature, extent, and duration of its rights and claims, and that it has not been
influenced to any extent whatsoever in executing this Agreement by any representations or statements except those expressly contained
or referenced in this Agreement. Each Party represents that the duties imposed in this Agreement will not violate any duty or obligation
or order of any government agency or court, indenture, or other agreement or instrument.

 

In Witness
Whereof, the undersigned Guarantor has executed this Guaranty as of the date below.

 

	 	Cachet
    Financial Solutions, Inc.
	 	 
	Dated:
    2/3/15	/s/
    Jeffrey C. Mack
	 	Jeffrey C. Mack, President and CEO

 

    	 	 2DEMAND
PROMISSORY NOTE

(Cachet
Financial Solutions Inc.)

 

Note
No: DN2014-17

 

	$25,000	June
    26, 2014

Minneapolis,
Minnesota (USA)

 

	1.	PROMISE TO PAY.  FOR
    VALUE RECEIVED, Cachet Financial Solutions Inc., a Minnesota corporation (“Maker”), hereby promises to pay to
    James L. Davis, a Florida resident, or his or her assigns (“Holder”), the principal amount of Twenty-Five
    Thousand and No/100 Dollars ($25,000) (the “Principal Amount”). This Promissory Note is referred
    to herein as the “Note.”
	 	 
	2.	INTEREST.
    The Principal Amount of this Note will bear simple interest at the rate of ten percent (10%) per annum. Interest
    will accrue on the basis of actual days elapsed in a 365-day year.
	 	 
	3.	PAYMENTS.
    The Principal Amount of this Note, together with accrued but unpaid interest and any other sums owed hereunder, shall be due
    and payable at the written demand of Holder after the earlier of either (a) such time as Maker has raised sufficient new funds
    (net of related offering expenses) to make such payment, as reasonably determined by Holder, or (b) the close of business
    on March 31, 2015.  All payments and prepayments shall, at the option of Holder, be credited first to any costs
    of collection, second to accrued but unpaid interest, and third to the Principal Amount.
	 	 
	4.	PREPAYMENTS. Maker
    may prepay the Principal Amount outstanding in whole or in part without penalty.
	 	 
	5.	DEFAULT. A
    default shall be deemed to have occurred under this Note if (each a “Default”):  (i) Maker fails to
    comply with any of the terms of this Note, which failure continues uncured for more than 15 days after written notice thereof
    to Maker; (ii) Maker should dissolve; (iii) Maker commences a voluntary case or other proceeding seeking liquidation, reorganization
    or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter
    in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of its or any
    part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official
    in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors,
    or shall fail generally to pay its debts as they become due; or (iv) an involuntary case or other proceeding shall be commenced
    against Maker seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency
    or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or
    other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall
    remain undismissed and unstayed for a period of 45 days.  In the event of Default, Holder shall have the remedies
    provided for in this Note under Section 6.
	 	 
	6.	REMEDIES UPON
    DEFAULT. If the Principal Amount, together with accrued but unpaid interest thereon, has not been paid when due or
    there is a Default, then the entire Principal Amount and all accrued but unpaid interest shall (without notice to or demand
    upon Maker) become due and payable on said date; provided, however, that Holder may waive, from time to time, such acceleration
    of payments under this Note. The remedies of Holder as provided herein shall be cumulative and concurrent with all other remedies
    provided by law or in equity, and such remedies may be pursued singly, successively or together at the sole direction of Holder
    and may be exercised as often as occasion therefor shall arise. Holder reserves all other rights and remedies available
    to Holder under this Note and applicable law.

 

    	 	 	 

    	 	 	 

    

 

	7.	WAIVERS.  Maker
    hereby waives demand, presentment, notice of non-payment, dishonor, protest, notice of protest and any other notice required
    by law to be given to Maker in connection with the delivery, acceptance, performance, default or enforcement of this Note. Holder’s
    failure to exercise its option to accelerate this Note or any other remedy upon a Default shall not constitute a waiver of
    Holder’s right to exercise such option thereafter.
	 	 
	8.	COLLECTION COSTS. Maker
    shall pay all reasonable costs and expenses of collection, including, without limitation, all court costs and reasonable attorneys’
    fees incurred in collecting amounts due under this Note, or in exercising or defending, or obtaining the right to exercise,
    the rights of Holder under this Note, whether or not suit is brought, and in foreclosure, in bankruptcy, insolvency, arrangement,
    reorganization and other debtor-relief proceedings, in probate, in other court proceedings, or otherwise, whether or not Holder
    prevails therein.
	 	 
	9.	NOTICES. Any
    and all notices required or permitted under this Note shall be in writing and sent to the recipient’s address, as set
    forth below:

 

	 	If to Holder:	__________________________
	 	 	__________________________
	 	 	__________________________
	 	 	Facsimile: ________________
	 	 	Email: ___________________
	 	 	 
	 	If to Maker:	Cachet Financial Solutions Inc.
	 	 	Southwest Tech Center A
	 	 	18671 Lake Drive East
	 	 	Minneapolis, MN 55317
	 	 	Attention: Jeffrey C. Mack, Chief Executive
    Officer
	 	 	Facsimile: (952) 698-6999
	 	 	Email: jmack@cachetfinancial.com

 

		Notices
                                         sent to the address set forth above (or another address substituted therefor in writing)
                                         shall be deemed effective (i) the third day after deposit in the certified U.S. Mail,
                                         return receipt requested, (ii) the date of a confirmed facsimile transmission, or (iii)
                                         the day after transmission to the email account designated above (provided such email
                                         is not returned as undeliverable).

 

	10.	GENERAL PROVISIONS. This
    Note may not be modified, amended or terminated unless in writing signed by Maker and Holder.  This Note will be construed
    and interpreted in accordance with the laws of the State of Minnesota without regard to its conflicts-of law principles. This
    Note is binding upon and inures to the benefit of Maker and Holder and their respective heirs, executors, administrators,
    successors and permitted assigns.  Notwithstanding, this Note is non-negotiable and non-delegable and neither any
    rights nor any obligations under this Note may be assigned by Holder or Maker without the prior written consent of the other.

 

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IN
WITNESS WHEREOF, this Demand Promissory Note is effective as of the date first written above.

 

	MAKER:	 
	 	 	 
	CACHET FINANCIAL SOLUTIONS INC.	 
	 	 	 
	By:  	/s/ Jeffrey C.
    Mack	 
	 	Jeffrey
    C. Mack	 
	 	Chief
    Executive Officer	 

 

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