Document:

Exhibit

CONVERTIBLE PROMISSORY NOTE

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD IN ACCORDANCE WITH RULE 144 UNDER SUCH ACT.

$2,000,000.00                                    September 17, 2015
 
FOR VALUE RECEIVED, Calpian, Inc., a Texas corporation (the “Company”), hereby promises to pay Hall Phoenix/Inwood, Ltd. (the “Lender”), the principal sum of Two Million Dollars ($2,000,000.00), with simple interest on the outstanding principal amount at the rate of ten percent (10%) per annum, provided that in no event shall the interest rate be less than the minimum rate of interest required in order to avoid the imputation of interest for federal income tax purposes. Interest shall commence with the date hereof and shall continue on the outstanding principal until paid in full or converted. This Note is issued pursuant to that certain Loan and Security Agreement dated effective as of September 17, 2015 between the Company and the Lender (the “Purchase Agreement”) and is entitled to the benefits of and is subject to the terms contained in that Purchase Agreement, including provisions for Next Equity Financing, Maturity, Change of Control and Voluntary conversion mechanisms.  Capitalized terms not defined herein shall have the meaning set forth in the Purchase Agreement.

1.    Maturity.  Unless earlier converted into Equity Securities pursuant to Section 2.2 of, the Purchase Agreement, the outstanding principal and accrued interest shall be due and payable by the Company on demand by the Lender at any time after the Maturity Date.
 
2.    Payment. All payments shall be made in lawful money of the United States of America at the principal office of the Lender, or at such other place as the holder hereof may from time to time designate in writing to the Company.  Payment shall be credited first to accrued interest due and payable and any remainder applied to principal. 

3.    Pre-Payment. Prepayment of principal, together with accrued interest, may not be made prior to the Maturity Date without the Lender’s consent.  If pre-payment is consented to by the Lender it will be without any prepayment penalties and interest will no longer continue to accrue on any prepaid principal amounts after such pre-payments. The Company hereby waives demand, notice, presentment, protest and notice of dishonor. 

4.    Successors and Assigns.  This Note applies to, inures to the benefit of and binds the successors and assigns of the parties hereto.  Notwithstanding the forgoing, any transfer of this Note may be affected only in accordance with the Purchase Agreement. The Lender and any subsequent holder of this Note receives this Note subject to the foregoing terms and conditions, as well as all other terms and conditions contained in this Note and in the Purchase Agreement, and agrees to comply with all such terms and conditions for the benefit of the Company.

5.    Titles and Subtitles.  The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note.

6.    Amendments and Waivers; Resolutions of Dispute; Notice.  The amendment or waiver of any term of this Note, the resolution of any controversy or claim arising out of or relating to this Note and the provision of notice shall be conducted pursuant to the terms of the Purchase Agreement. This Note is a novation of any and all prior agreements between the parties with regard to the subjects hereof.

7.    Severability.  If any provision of this Note is held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of the Note shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

8.    Expenses.  If any action at law or in equity is necessary to enforce or interpret the terms of this Note, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which such party may be entitled.

This Note may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

CALPIAN, INC.
 
 
By:    /s/ Harold Montgomery______________
Harold Montgomery, CEO

HALL PHOENIX/INWOOD, LTD.
By:    Phoenix Inwood Corporation, General Partner

By:    /s/ Bryan Tolbert___________________
Bryan Tolbert, Vice President of FinanceExhibit

 
Collateral Exclusion Agreement

THIS IS AGREEMENT  (the “Agreement") being executed and delivered by and between Calpian, Inc., a Texas corporation (the “Borrower”), Hall Phoenix/Inwood, Ltd., a Texas limited partnership (“Lender”), and Granite Hill Capital Ventures, LLC, a Delaware limited liability company (“Senior Lender”) (Borrower, Lender and Senior Lender are collectively referred to herein as the “Parties,” and individually, a “Party”).

RECITALS

A.Borrower has requested and/or obtained a loan in the amount of Two Million Dollars ($2,000,000.00) from Lender to Borrower (the “Loan”) which is secured by a second (2nd) priority lien upon all of the Company’s right, title and interest in and to all assets of the Borrower, including the equity shares of Digital Payments Processing Limited, a company based in and incorporated under the laws of Mumbai, India (“DPPL”), whether now owned or hereafter acquired and wherever located (the “Shares”).
B.Senior Lender and the Borrower are party to that certain Loan and Security Agreement dated November 9, 2012, as amended (the “Senior Loan Agreement”) pursuant to which the Senior Lender has a first (1st) priority lien upon the Borrower’s right, title and interest in and to the “Collateral” (as defined in the Senior Loan Agreement).
C.The Parties acknowledge that the Senior Lender’s lien upon the Collateral includes the Shares, whether owned at the time of execution of the Senior Loan Agreement or thereafter acquired by the Borrower.
D.In connection with the Loan, the Borrow wishes to pledge and grant a first (1st) priority lien upon 746,286 of the Shares (the “Pledge Shares”) to the Lender. 
E.The Parties acknowledge that the Borrower intends to use the proceeds of the Loan (the “Loan Proceeds”) for general corporate purposes.
F.In order to induce Lender to make the Loan, Senior Lender is willing to exclude from its lien upon the Collateral (i) the Pledge Shares; and (ii) the Loan Proceeds.

AGREEMENT

 NOW THEREFORE, in consideration of the mutual promises contained in this Agreement and other good and valuable consideration, the sufficiency, mutuality and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Agreement to Exclude Pledge Shares and Loan Proceeds.  Notwithstanding the respective dates of attachment or perfection of the security interest of Senior Lender and the security interest of Lender, the security interest or lien of the Senior Lender, under the Senior Loan Agreement, shall not attach to the Loan Proceeds or the Pledge Shares and the Senior Lender shall not demand or receive from Borrower (and Borrower will not pay to Senior Lender) all or any part of the Loan Proceeds, nor will Senior Lender exercise any remedy with respect to the Pledge Shares until such time as (i) the Loan is fully paid in cash, fully converted into securities of the Borrower or otherwise fully satisfied, and (ii) all financing agreements between Lender and Borrower are terminated.
  
2.No Other Effect on the Senior Loan Agreement. The Senior Loan Agreement remains in full force and effect, except as set forth in this Agreement.

3.Miscellaneous.

(a)  Captions; Certain Definitions.  Titles and captions of or in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any of its provisions.  All capitalized terms not otherwise defined herein shall have the meaning therefor, as set forth in the Senior Loan Agreement.

(b) Entire Agreement; Amendments and Waivers. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof and is a novation of any and all prior agreements between the parties with regard to the subjects hereof. 

(c)  Controlling Law.  This Agreement is governed by, and shall be construed and enforced in accordance with the laws of the State of New York (except the laws of that jurisdiction that would render such choice of laws ineffective).

(d)  Counterparts.  This Agreement may be executed in one or more counterparts (one counterpart reflecting the signatures of all parties), each of which shall be deemed to be an original, and it shall not be necessary in making proof of this Agreement or its terms to account for more than one of such counterparts.  This Agreement may be executed by each party upon a separate copy, and one or more execution pages may be detached from a copy of this Agreement and attached to another copy in order to form one or more counterparts. 

(Signature Pages Follow)
 
IN WITNESS WHEREOF, this Agreement has been executed and delivered by the Parties as of September 30, 2015.

	
		
	BORROWER
CALPIAN, LLC

By:/s/ Harold Montgomery
Name:     Harold Montgomery
Title:       Chief Executive Officer

SENIOR LENDER
Granite Hill Capital Ventures, LLC 

By:/s/ Shailesh J. Mehta
Name:     Shailesh J. Mehta
Title:       Managing Member

LENDER
Hall Phoenix/Inwood, Ltd.

By:/s/ Bryan Tolbert
Name:     Bryan Tolbert
Title:       Vice President of Finance
	 

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