0001493152-16-008057.txt : 20160315 0001493152-16-008057.hdr.sgml : 20160315 20160315135752 ACCESSION NUMBER: 0001493152-16-008057 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20160315 DATE AS OF CHANGE: 20160315 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CACHET FINANCIAL SOLUTIONS, INC. CENTRAL INDEX KEY: 0001487906 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 272205650 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-85882 FILM NUMBER: 161506395 BUSINESS ADDRESS: STREET 1: 18671 LAKE DRIVE EAST STREET 2: SOUTHWEST TECH CENTER A CITY: MINNEAPOLIS STATE: MN ZIP: 55317 BUSINESS PHONE: 952-698-6980 MAIL ADDRESS: STREET 1: 18671 LAKE DRIVE EAST STREET 2: SOUTHWEST TECH CENTER A CITY: MINNEAPOLIS STATE: MN ZIP: 55317 FORMER COMPANY: FORMER CONFORMED NAME: DE Acquisition 2, Inc. DATE OF NAME CHANGE: 20100324 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Tiburon Opportunity Fund, L.P. CENTRAL INDEX KEY: 0001490894 IRS NUMBER: 271985953 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 13313 POINT RICHMOND BEACH ROAD NW CITY: GIG HARBOR STATE: WA ZIP: 98332 BUSINESS PHONE: 253-858-7866 MAIL ADDRESS: STREET 1: 13313 POINT RICHMOND BEACH ROAD NW CITY: GIG HARBOR STATE: WA ZIP: 98332 SC 13D/A 1 sc13da.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Schedule 13D/A

(Amendment No. 1)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO

§240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO §240.13d-2(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934

Cachet Financial Solutions, Inc.

(Name of Issuer)

Common Stock, $0.0001 par value

(Title of Class of Securities)

00750W101

(CUSIP Number)

Laura E. Anthony, Esquire

330 Clematis Street, Suite 217

West Palm Beach, FL 33401

(561) 514-0936

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

November 16, 2015

(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [ ]

NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Section §240.13d-7 for other parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only) Tiburon Opportunity Fund, L.P.
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ]
3.	SEC Use Only
4.	Source of Funds (See Instructions) WC
5.	Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
6.	Citizenship or Place of Organization DE

Number of Shares Beneficially Owned by Each Reporting Person With	7.	Sole Voting Power

		0
	8.	Shared Voting Power

		6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)
	9.	Sole Dispositive Power

		0
	10.	Shared Dispositive Power

		6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)

11.	Aggregate Amount Beneficially Owned by Each Reporting Person 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
13.	Percent of Class Represented by Amount in Row (11) 15.59% (1)
14.	Type of Reporting Person (See Instructions) PN

(1) This percentage is calculated based on 37,328,462 shares of Common Stock which were issued and outstanding as of March 9, 2016, as confirmed by the transfer agent of the Issuer, plus the 2,449,638 shares of Common Stock underlying the unexercised warrants and unconverted preferred stock of Stockholder.

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only) Bortel Investment Management LLC
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ]
3.	SEC Use Only
4.	Source of Funds (See Instructions) AF
5.	Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [ ]
6.	Citizenship or Place of Organization WA

Number of Shares Beneficially Owned by Each Reporting Person With	7.	Sole Voting Power 0
	8.	Shared Voting Power 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)
	9.	Sole Dispositive Power 0
	10.	Shared Dispositive Power 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)

11.	Aggregate Amount Beneficially Owned by Each Reporting Person 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
13.	Percent of Class Represented by Amount in Row (11) 15.59% (1)
14.	Type of Reporting Person (See Instructions) OO

1.	Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only) Peter Bortel
2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ ]
3.	SEC Use Only
4.	Source of Funds (See Instructions) AF
5.	Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) [X]
6.	Citizenship or Place of Organization United States

Number of Shares Beneficially Owned by Each Reporting Person With	7.	Sole Voting Power 0
	8.	Shared Voting Power 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)
	9.	Sole Dispositive Power 0
	10.	Shared Dispositive Power 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)

11.	Aggregate Amount Beneficially Owned by Each Reporting Person 6,201,072 (assumes exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively, discussed below)
12.	Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) [ ]
13.	Percent of Class Represented by Amount in Row (11) 15.59% (1)
14.	Type of Reporting Person (See Instructions) IN

This Amendment No. 1 to Schedule 13D is being filed on behalf of Tiburon Opportunity Fund, L.P., a Delaware limited partnership (the “Stockholder”), Bortel Investment Management LLC, a Washington limited liability company (the “General Partner”), and Peter Bortel, an individual and the managing member of the General Partner (together with the Stockholder and the General Partner, the “Reporting Persons”) to note the increase in the Reporting Persons’ ownership from 13.1% to 15.59%. This Amendment No. 1 to Schedule 13D relates to the common stock, par value $0.0001 per share, of Cachet Financial Solutions, Inc., a Delaware corporation (the “Issuer”). Unless the context otherwise requires, references herein to the “Common Stock” are to such common stock of the Issuer. The General Partner is the general partner of the Stockholder. The Stockholder directly owns the Common Stock to which this Amendment No. 1 to Schedule 13D relates, and the General Partner and Mr. Bortel may be deemed to have beneficial ownership over such Common Stock by virtue of the authority granted to them by the Stockholder to vote and to dispose of the securities held by the Stockholder, including the Common Stock. This Amendment No. 1 to Schedule 13D amends the original Schedule 13D filed by the Reporting Persons with the Securities and Exchange Commission (“SEC”) on August 25, 2015 (the “Schedule 13D”).

Item 1. Security and Issuer.

This Amendment No. 1 to Schedule 13D relates to the Common Stock of the Issuer. The address of the Issuer’s principal executive offices is 18671 Lake Drive East, Southwest Tech Center A, Minneapolis, MN 55317.

Item 2. Identity and Background.

(a)	This statement is filed by the Reporting Persons. The General Partner is organized as a limited liability company under the laws of the State of Washington. The Stockholder is organized as limited partnership under the laws of the State of Delaware. Mr. Bortel is the managing member of the General Partner and controls the General Partner’s business activities.

(b)	The address of the principal business and principal office of the Stockholder, the General Partner and Mr. Bortel is 13313 Point Richmond Beach Road NW, Gig Harbor, WA 98332.

(c)	The principal business of the General Partner is to serve as the general partner of the Stockholder. The principal business of the Stockholder is to invest and trade in securities. The principal business of Mr. Bortel is to act as managing member of the General Partner.

(d)	None of the Reporting Persons, nor, to the best of their knowledge, any of their directors, executive officers, general partners or members has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

(e)	Except as set forth herein, none of the Reporting Persons, nor, to the best of their knowledge, any of their directors, executive officers, general partners or members has, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

	Peter Bortel was a minority partner at Pegasus Investment Management, LLC (“PIM”), which was founded and headed by Douglas Saksa. Consistent with industry practice, at times, PIM was paid by third parties for outside consulting. In one instance, PIM provided consulting services to Alchemy Ventures (“AV”), a firm developing a futures trading platform. At AV’s request, PIM provided AV with Mr. Saksa’s services – futures trading strategy and futures trading data at the end of each day. In addition, Messrs. Bortel and Saksa provided industry research and consulting regarding hiring by AV of its futures traders to use Mr. Saksa’s strategy. There was no other business relationship among PIM, Mr. Saksa, Mr. Bortel or AV, or any of them. As part of this relationship, AV requested and received the benefit of lower commission rates from M3, the same futures trading provider used by PIM. M3 and PIM were not affiliated in any way. AV failed to inform PIM of the benefit it received from M3.

	The Securities and Exchange Commission (the “SEC”) instituted proceedings against PIM and Messrs. Bortel and Saksa. See In the Matter of Pegasus Investment Management, LLC, Peter Benjamin Bortel, and Douglas Wayne Saksa, Respondents (Investment Advisers Act of 1940 Release No. 3215, June 15, 2011) (Administrative Proceeding File No. 3-14425). The SEC maintained that PIM should have questioned AV to discover the M3 benefit. PIM and Messrs. Bortel and Saksa argued that PIM was not responsible for auditing AV or M3, and that PIM and Messrs. Bortel and Saksa could not be reasonably suspect this benefit between AV and M3.

	In order to save legal costs, effective June 15, 2011, PIM and Messrs. Bortel and Saksa consented to the entry by the SEC of an Order Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and Cease-and-Desist Orders (the “Order”). The three parties agreed to pay a fine in this matter and return fees from this agreement to the United States Treasury. Pursuant to the Order, the SEC found that the parties violated Section 206(2) of the Investment Advisors Act.

(f)	Mr. Bortel is a United States citizen.

Item 3. Source and Amount of Funds or Other Consideration.

The Stockholder expended an aggregate of approximately $1,704,711 of its own investment capital to acquire the 6,201,072 shares of Common Stock held by it (the “Securities”).

Item 4. Purpose of Transaction.

The Stockholder holds the Issuer’s securities for investment purposes. The Stockholder intends to participate in and influence the affairs of the Issuer only with respect to its voting rights associated with its shares of Common Stock.

The Reporting Persons do not have any present plans or proposals that relate to or would result in the occurrence of any of the events or matters described in Item 4(a)-(j) of Schedule 13D.

Item 5. Interest in Securities of the Issuer.

(a)	As of March 9, 2016, the Reporting Persons beneficially own 6,201,072 shares of Common Stock (which assumes the exercise and conversion by Stockholder of all unexercised warrants and unconverted preferred stock, respectively), representing approximately 15.59% of the outstanding shares of Common Stock. The foregoing percentage is calculated based on 37,328,462 shares of Common Stock issued and outstanding as of March 9, 2016, as confirmed by the transfer agent of the Issuer, plus the 2,449,638 shares of Common Stock underlying the unexercised warrants and unconverted preferred stock of Stockholder.

(b)	The information set forth in Item 5(a) of this Amendment No. 1 to Schedule 13D is incorporated herein by reference. The Reporting Persons share voting and dispositive power over the 6,201,072 shares of Common Stock held by the Stockholder.

(c)	Since the most recent filing of a statement on Schedule 13D on August 25, 2015, the following transactions have been effected by the Stockholder in the Common Stock and derivative securities of the Issuer relating to the Common Stock through the date of this filing:

Date

Nature of Transaction

Number of
Shares

Price per
Share ($)

Where and How Effected

11/6/2015

Acquisition of Common Stock

350,000

0.4816

Private acquisition by partially exercising a warrant issued on 10/22/2014 to purchase 533,336 shares of Common Stock at an exercise price of $0.4816 per share. Such warrant remains unexercised as to 183,336 shares at an exercise price of $0.329 per share.

11/16/2015

Acquisition of Warrant

385,000

N/A

Acquisition of a warrant to purchase 385,000 shares of Common Stock at an exercise price of $0.4816 per share, to replace exercised warrants. Pursuant to an amendment to the warrant dated January 5, 2016, the exercise price was reduced to $0.329 per share.

11/24/2015

Acquisition of Warrant

168,117

N/A

Acquisition of a warrant to purchase 168,117 shares of Common Stock at an exercise price of $0.4816 per share, to replace exercised warrants. Pursuant to an amendment to the warrant dated January 5, 2016, the exercise price was reduced to $0.329 per share.

1/6/2016

Acquisition of Common Stock

385,000

0.329

Private acquisition by fully exercising a warrant issued on 11/16/2015 to purchase 385,000 shares of Common Stock at an exercise price of $0.329 per share.

1/6/2016

Acquisition of Common Stock

68,117

0.329

Private acquisition by partially exercising a warrant issued on 11/24/2015 to purchase 168,117 shares of Common Stock at an exercise price of $0.329 per share. Such warrant remains unexercised as to 100,000 shares at an exercise price of $0.329 per share.

1/6/2016

Acquisition of Warrant

498,429

N/A

Acquisition of a warrant to purchase 498,429 shares of Common Stock at an exercise price of $0.329 per share to replace exercised warrants.

1/29/2016

Acquisition of Warrant

250,000

N/A

Acquisition of a warrant to purchase 250,000 shares of Common Stock at an exercise price of $0.329 per share in connection with a loan by Stockholder to Issuer.

2/28/2016

Acquisition of Warrant

250,000

N/A

Acquisition of a warrant to purchase 250,000 shares of Common Stock at an exercise price of $0.329 per share in connection with an additional loan by Stockholder to Issuer.

3/7/2016

Acquisition of Common Stock

500,000

0.329

Private acquisition by fully exercising (i) a warrant issued on 1/29/2016 to purchase 250,000 shares of Common Stock at an exercise price of $0.329 per share and (ii) a warrant issued on 2/28/2016 to purchase 250,000 shares of Common Stock at an exercise price of $0.329 per share.

3/7/2016

Acquisition of Warrant

250,000

N/A

Acquisition of a warrant to purchase 250,000 shares of Common Stock at an exercise price of $0.329 per share, to replace exercised warrants.

(d)	Other than the Stockholder, no person is known to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the Securities.

(e)	Not applicable.

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

Pursuant to Rule 13d-1(k) promulgated under the Exchange Act, the Reporting Persons have entered into an agreement dated August 25, 2015 with respect to the joint filing of this amendment to the Schedule 13D.

Of the Securities beneficially held by the Stockholder, as of March 9, 2016, an aggregate of 1,689,760 shares of Common Stock are the subject to warrants to purchase shares of Common Stock acquired by the Stockholder from the Issuer.

Pursuant to the Warrant to Purchase Common Stock dated November 16, 2015, as amended on January 5, 2016, replacing previously exercised warrants, the Stockholder had the right to acquire up to 385,000 shares of Common Stock at an exercise price of $0.329 per share for a period of five years from the issuance date. On January 6, 2016, the Stockholder fully exercised the warrant purchasing 385,000 shares of Common Stock at an exercise price of $0.329 per share.

Pursuant to the Warrant to Purchase Common Stock dated November 24, 2015, as amended on January 5, 2016, replacing previously exercised warrants, the Stockholder had the right to acquire up to 168,117 shares of Common Stock at an exercise price of $0.329 per share for a period of five years from the issuance date. On January 6, 2016, the Stockholder partially exercised the warrant purchasing 68,117 shares of Common Stock at an exercise price of $0.329 per share.

Pursuant to the Warrant to Purchase Common Stock dated January 6, 2016, replacing previously exercised warrants, the Stockholder has the right to acquire up to 498,429 shares of Common Stock at an exercise price of $0.329 per share for a period of five years from the issuance date.

Pursuant to the Warrant to Purchase Common Stock dated January 29, 2016, in connection with a loan by Stockholder to the Issuer, the Stockholder had the right to acquire up to 250,000 shares of Common Stock at an exercise price of $0.329 per share for a period of five years from the issuance date. On March 7, 2016, the Stockholder fully exercised the warrant purchasing 250,000 shares of Common Stock at an exercise price of $0.329 per share.

Pursuant to the Warrant to Purchase Common Stock dated February 28, 2016, in connection with an additional loan by Stockholder to the Issuer, the Stockholder had the right to acquire up to 250,000 shares of Common Stock at an exercise price of $0.329 per share for a period of five years from the issuance date. On March 7, 2016, the Stockholder fully exercised the warrant purchasing 250,000 shares of Common Stock at an exercise price of $0.329 per share.

Pursuant to the Warrant to Purchase Common Stock dated March 7, 2016, replacing previously exercised warrants, the Stockholder has the right to acquire up to 250,000 shares of Common Stock at an exercise price of $0.329 per share for a period of five years from the issuance date.

Item 7. Material to be Filed as Exhibits.

Exhibit No.		Description of Document

99.1		Joint Filing Agreement, dated as of August 24, 2015, by and among the Reporting Persons (incorporated by reference to the Schedule 13D filed by the Reporting Persons on August 25, 2015).

99.2		Warrant to Purchase Common Stock dated November 16, 2015.

99.3		Warrant to Purchase Common Stock dated November 24, 2015.

99.4		Amendment to Warrant to Purchase Common Stock dated January 5, 2016.

99.5		Warrant to Purchase Common Stock dated January 6, 2016.

99.6		Warrant to Purchase Common Stock dated January 29, 2016.

99.7		Warrant to Purchase Common Stock dated February 28, 2016.

99.8		Warrant to Purchase Common Stock dated March 7, 2016.

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: March 15, 2016

	TIBURON OPPORTUNITY FUND, L.P.

	By:	Bortel Investment Management LLC, its general partner

	By:	/s/ Peter Bortel
	Name:	Peter Bortel
	Title:	Managing Member

	BORTEL INVESTMENT MANAGEMENT LLC

	By:	/s/ Peter Bortel
	Name:	Peter Bortel
	Title:	Managing Member

	/s/ Peter Bortel
	Peter Bortel

EX-99.2 2 ex99-2.htm

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. W2015-11-161

Issue Date: November 16, 2015

Cachet Financial Solutions Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received, Tiburon Opportunity Fund LP or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of 385,000 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 $0.4816 (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 November 16, 2020 (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.

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.

(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.

(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: Darin P. McAreavey, CFO
		Facsimile: (952) 698-6999

	If to Holder:




		Facsimile:

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.

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.

* * * * * * *

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of December 29, 2014.

	CACHET FINANCIAL SOLUTIONS, INC.

	By:	/s/ Jeffrey c. Mack
		Jeffrey c. Mack
		Chief Executive 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:

EX-99.3 3 ex99-3.htm

CACHET FINANCIAL SOLUTIONS, INC.

a Delaware corporation

WARRANT TO PURCHASE COMMON STOCK

Warrant No. W2015-11-24

Issue Date: November 24, 2015

Cachet Financial Solutions Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received, Tiburon Opportunities Fund LP or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of 168,117 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 $0.4816 (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 November 24, 2020 (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.

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.

(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.

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 find 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: Darin P. McAreavey, CFO Facsimile: (952) 698-6999

	If to Holder:



		Facsimile:

11. General Provisions.

(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.

12. Dispute Resolution.

* * * * * * *

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of December 29, 2014.

	CACHET FINANCIAL SOLUTIONS, INC.

	By:	/s/ JEFFREY C. MACK
		JEFFREY C. MACK
		Chief Executive 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: ______________________________________________________________________

EX-99.4 4 ex99-4.htm

AMENDMENT TO

WARRANT TO PURCHASE COMMON STOCK

This Amendment (this “Amendment”) is entered into as of January 5, 2016, by and between Cachet Financial Solutions, Inc., a Delaware corporation (the “Company”), and Tiburon Opportunity Fund LP (as defined in that certain Warrant to Purchase Common Stock dated as of November 16, 2015 (Warrant No. W2015-11-161) and as of November 11, 2015 (Warrant No. W2015-11-24) issued by the Company to the Holder (the “Warrant”)). Capitalized terms used but not defined herein have the meanings ascribed to them in the Warrant.

WHEREAS, the Company and the Holder wish to amend the Warrant as set forth below to provide that the exercise price under the Warrant as of the date hereof equals the initial exercise price under the New Warrants.

NOW, THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, the Company and the Holder hereby agree as follows:

1. Amendment to Exercise Price. The “Exercise Price” in the Warrant is hereby amended by replacing the phrase “shall mean $0.4816 per share” with “shall mean $0.329 per share”.

2. Conflict. In the event of any conflict between the provisions of this Amendment and the Warrant, the provisions of this Amendment shall govern.

3. No Other Changes. Except as specifically amended by this Amendment, all other provisions of the Warrant shall remain in full force and effect. This Amendment shall not constitute or operate as a waiver of, or estoppel with respect to, any provisions of the Warrant by either party hereto.

4. Applicable Law. This Amendment and the rights and obligations of the parties hereunder shall be construed and governed by the laws of the State of Minnesota.

5. Counterparts and Electronic Signatures. This Amendment may be executed in multiple counterparts, each of which shall be deemed an original agreement and both of which shall constitute one and the same agreement. The counterparts of this Amendment may be executed and delivered by facsimile or other electronic signature (including portable document fo1mat) by either of the parties and the receiving party may rely on the receipt of such document so executed and delivered electronically or by facsimile as if the original had been received.

[Signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first indicated above.

	CACHET FINANCIAL SOLUTIONS, INC.

	By:	/s/ Darin McAreavey
		Darin P. McAreavey
		Executive Vice President & Chief Financial Officer

	HOLDER

	TIBURON OPPORTUNITY FUND, L.P.
	By: Bortel Investment Management LLC, its general partner
	By:	/s/ Peter Bortel
	Name:	Peter Bortel
	Title:	Managing Member

[Signature page to Amendment to Warrant]

EX-99.5 5 ex99-5.htm

CACHET FINANCIAL SOLUTIONS, INC.

a Delaware corporation

WARRANT TO PURCHASE COMMON STOCK

Warrant No. W2016-01-06

Issue Date: January 06, 2016

Cachet Financial Solutions Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received, Tiburon Opportunity Fund LP or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of 498,429 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 $0.329 (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 January 06, 2021 (the “Expiration Date”), subject to the following terms and conditions:

3. Exercise and Duration of Warrants.

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.

(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.

(d) Calculations. All calculations under this Section 8 shall be made to the nearest cent or the nearest l/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.

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

	If to Holder:




		Facsimile:

11. General Provisions.

(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.

12. Dispute Resolution.

* * * * * * *

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of December 29, 2014.

	CACHET FINANCIAL SOLUTIONS, INC.

	By:	/s/ Jeffrey c. Mack
		Jeffrey c. Mack
		Chief Executive 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)

(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:

AMENDMENT TO
WARRANT TO PURCHASE COMMON STOCK

This Amendment (this “Amendment”) is entered into as of January 7, 2016, by and between Cachet Financial Solutions, Inc., a Delaware corporation (the “Company”), and ALB Private Investments, LLC (as defined in that certain Warrants to Purchase Common Stock dated as of November 30, 2015 (Warrant No. W2015-11-30) issued by the Company to the Holder (the “Warrant”)). Capitalized terms used but not defined herein have the meanings ascribed to them in the Warrant.

NOW, THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, the Company and the Holder hereby agree as follows:

1. Amendment to Exercise Price. The “Exercise Price” in the Warrant is hereby amended by replacing the phrase “shall mean $0.4816 per share” with “shall mean $0.329 per share”.

2. Conflict. In the event of any conflict between the provisions of this Amendment and the Warrant, the provisions of this Amendment shall govern.

4. Applicable Law. This Amendment and the rights and obligations of the parties hereunder shall be construed and governed by the laws of the State of Minnesota.

5. Counterparts and Electronic Signatures. This Amendment may be executed in multiple counterparts, each of which shall be deemed an original agreement and both of which shall constitute one and the same agreement. The counterparts of this Amendment may be executed and delivered by facsimile or other electronic signature (including portable document format) by either of the parties and the receiving party may rely on the receipt of such document so executed and delivered electronically or by facsimile as if the original had been received.

[Signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first indicated above.

	CACHET FINANCIAL SOLUTIONS, INC.

	By:
		Darin P. McAreavey
		Executive Vice President & Chief Financial Officer

	HOLDER

	FLMM LTD

	By:
	Name:
	Title:

[Signature page to Amendment to Warrant]

EX-99.6 6 ex99-6.htm

NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. BY ACQUIRING THIS WARRANT, HOLDER REPRESENTS THAT HOLDER WILL NOT SELL OR OTHERWISE DISPOSE OF THIS WARRANT OR THE SECURITIES FOR WHICH IT MAY BE EXERCISED WITHOUT REGISTRATION OR COMPLIANCE WITH AN EXEMPTION FROM REGISTRATION UNDER THE AFORESAID ACTS AND THE RULES AND REGULATIONS THEREUNDER.

WARRANT TO PURCHASE COMMON STOCK

Warrant No.:012916

Number of Shares of Common Stock: 250,000

Date of Issuance: January 29, 2016 (“Issuance Date”)

This Certifies That, for value received, Tiburon Opportunity Fund LP (including any permitted and registered assigns, the “Holder”), is entitled to purchase from Cachet Financial Solutions, Inc., a Delaware corporation (the “Company”), up to 250,000 shares of Common Stock (the “Warrant Shares”) at the Exercise Price then in effect.

Capitalized terms used in this Warrant to Purchase Common Stock (this “Warrant”) shall have the meanings set forth in the body of this Warrant or in Section 13 below. For purposes of this Warrant, the term “Exercise Price” shall mean $0,329 per share, subject to adjustment as provided herein, and the term “Exercise Period” shall mean the period commencing on the Issuance Date and ending on 5:00 p.m. New York time on the five-year anniversary thereof.

1. EXERCISE OF WARRANT.

(a) Mechanics of Exercise. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole or in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant 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 with respect to less than all of the Warrant Shares 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. On or before the third Trading Day (the “Warrant Share Delivery Date”) following the date on which the Company shall have received the Exercise Notice, and upon receipt by the Company of (i) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise Delivery Documents”) in cash or by wire transfer of immediately available funds or (ii) notification from the Holder that this Warrant is being exercised pursuant to a Cashless Exercise, as defined below, the Company shall (or direct its transfer agent to) issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares. If this Warrant is submitted in connection with any exercise pursuant to Section 1(c) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 6) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

(b) No Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then-current fair market value of a Warrant Share by such fraction.

(c) Cashless Exercise. The Holder may, in its sole discretion, at any time prior to the effective date of a registration statement filed by the Company or any Subsidiary under the Securities Act covering the Warrant Shares, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”);

	Net Number =	(A x B) - (A x C)
		B

For purposes of the foregoing formula:

	A =	the total number of shares with respect to which this Warrant is then being exercised.

	B =	the Weighted Average Price of the shares of Common Stock for the five consecutive Trading Days ending on the date immediately preceding the date of the Exercise Notice.

	C =	he Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

2. ADJUSTMENTS. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

(a) Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section shall become effective at the close of business on the date the subdivision or combination becomes effective.

(b) Distribution of Assets. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case:

(i) any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Exercise Price by a fraction (i) the numerator of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the denominator of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date; and

(ii) the number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding clause (i); provided, however, that in the event that the Distribution is of shares of common stock of a company (other than the Company) whose common stock is traded on a national securities exchange or a national automated quotation system (“Other Shares of Common Stock”), then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms of the immediately preceding clause (i) and the number of Warrant Shares calculated in accordance with the first part of this clause (ii).

3. FUNDAMENTAL TRANSACTIONS. If, at any time while this Warrant is outstanding, (i) the Company effects any merger of the Company with or into another entity and the Company is not the surviving entity (such surviving entity, the “Successor Entity”), (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or by another individual or entity, and approved by the Company) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares of Common Stock for other securities, cash or property and the holders of at least 50% of the Common Stock accept such offer, 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 (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 2(a) above) (in any such case, a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive the number of shares of Common Stock of the Successor Entity or of the Company and any additional consideration (the “Alternate Consideration”) receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event (disregarding any limitation on exercise contained herein solely for the purpose of such determination). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any Successor Entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration.

4. NON-CIRCUMVENTION. The Company covenants and agrees that it will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non- assessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, for so long as this Warrant is outstanding, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant (without regard to any limitations on exercise).

5. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, this Warrant, in and of itself, shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.

6. REISSUANCE.

(a) Lost, Stolen or Mutilated Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

(b) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant shall be of like tenor with this Warrant, and shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date.

7. TRANSFER.

(a) Notice of Transfer. The Holder agrees to give written notice to the Company before transferring this Warrant or transferring any Warrant Shares of such Holder’s intention to do so, describing briefly the manner of any proposed transfer. Promptly upon receiving such written notice, the Company shall present copies thereof to the Company’s counsel. If the proposed transfer may be effected without registration or qualification (under any federal or state securities laws), the Company, as promptly as practicable, shall notify the Holder thereof, whereupon the Holder shall be entitled to transfer this Warrant or to dispose of Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice delivered by the Holder to the Company; provided, however, that an appropriate legend may be endorsed on this Warrant or the certificates for such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act and applicable state securities laws; and provided further that the prospective transferee or purchaser shall execute the Assignment of Warrant attached hereto as Exhibit B and such other documents and make such representations, warranties, and agreements as may be required solely to comply with the exemptions relied upon by the Company for the transfer or disposition of the Warrant or Warrant Shares.

(b) If the proposed transfer or disposition of this Warrant or such Warrant Shares described in the written notice given pursuant to this Section 7 may not be effected without registration or qualification of this Warrant or such Warrant Shares, the Holder will limit its activities in respect to such transfer or disposition as are permitted by law.

8. NOTICES, Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at or prior to 5:30 p.m. (Minneapolis time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Trading Day or later than 5:30 p.m. (Minneapolis time) on any Trading Day, (c) the third Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth in the Exercise Notice. The Company shall provide the Holder with prompt written notice (i) immediately upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment and (ii) at least 20 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata to the holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

9. AMENDMENT AND WAIVER. The terms of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Holder. In addition, the restrictions set forth in Section 1(d) can be waived, as to a particular original purchaser of Preferred Stock and its affiliates, pursuant to a writing signed and delivered by the Company and such original Purchaser prior to the execution and delivery of this Warrant.

10. GOVERNING LAW. This Warrant and all rights, obligations and liabilities hereunder shall be governed by, and construed in accordance with, the internal laws of the State of Minnesota, without giving effect to the conflicts-of-Iaw principles thereof.

11. DISPUTE RESOLUTION. A dispute as to the determination of the Exercise Price, the Closing Sale Price, or the arithmetic calculation of the Warrant Shares, the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations via facsimile (a) within two Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder, as the case may be, or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price, Closing Sale Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder, as the case may be, then the Company shall, within two Business Days thereafter submit via facsimile (x) the disputed determination of the Exercise Price or Closing Sale Price to an independent, reputable investment bank selected by the Company and approved by the Holder or (y) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may be, shall be binding upon all parties absent manifest error.

12. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

13. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

(a) “Bloomberg” means Bloomberg Financial Markets.

(b) “Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

(c) “Closing Sale Price” means, for any security as of any date, (i) the last closing trade price for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or (ii) if the foregoing does not apply, the last trade price of such security in the over-the-counter market for such security as reported by Bloomberg, or (iii) if no last trade price is reported for such security by Bloomberg, the average of the bid and ask prices of any market makers for such security as reported by the OTC Markets. If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

(d) “Commission” means the United States Securities and Exchange Commission.

(e) “Common Stock” means the Company common stock, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

(f) “Common Stock Equivalents” means any securities of the Company that would entitle the holder thereof to acquire at any time Common Stock, including without limitation any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

(g) “Exchange Act” means the Securities Exchange Act of 1934, and the rules and regulations thereunder.

(h) “Exempt Issuance” means the issuance of (i) shares of Common Stock or options to employees, officers, directors or consultants of the Company pursuant to any stock or option plan duly adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose (for the avoidance of doubt, including the Company’s 2014 Associate Stock Purchase Plan intended to qualify under Section 422 of the Internal Revenue Code of 1986), (ii) any Common Stock upon the exercise or conversion of securities that are issued and outstanding as of the date hereof, (iii) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, (iv) shares of Common Stock issued in connection with regularly scheduled dividend payments on the Series C Preferred Stock, and (v) shares of Common Stock issued pursuant to any loan or leasing arrangement, real property leasing arrangement, or debt financing from a bank approved by the Board of Directors of the Company.

(i) “Principal Market” means the primary national securities exchange on which the Common Stock is then traded.

(j) “Securities Act” means the Securities Act of 1933, and the rules and regulations

thereunder.

(k) “Trading Day” means (i) any day on which the Common Stock is listed or quoted and traded on its Principal Market, (ii) if the Common Stock is not then listed or quoted and traded on any national securities exchange, then a day on which trading occurs on any over-the-counter markets, or (iii) if trading does not occur on the over-the-counter markets, any Business Day.

* * * * * * *

In Witness Whereof, the Company has caused this Warrant to be duly executed as of the Issuance Date,

	CACHET FINANCIAL SOLUTIONS, INC.

	/s/ DARIN P. MCAREAVEY
	DARIN P. MCAREAVEY
	Executive Vice President & Chief Financial Officer

EXHIBIT A

EXERCISE NOTICE

(To be executed by the registered holder to exercise this Warrant to Purchase Common Stock)

The Undersigned holder hereby exercises the right to purchase _______________ of the shares of Common Stock (“Warrant Shares”) of Cachet Financial Solutions, Inc., a Delaware corporation (the “Company”), evidenced by the attached copy of the Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

1.	Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as (check one):

[ ] a cash exercise with respect to __________________ Warrant Shares; and/or

[ ] a “Cashless Exercise” with respect to ___________________ Warrant Shares.

Payment of Exercise Price. In the event that the holder has elected a cash exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $__________________ to the Company in accordance with the terms of the Warrant.

3.	Delivery of Warrant Shares. The Company shall deliver to the holder ______________________ Warrant Shares in accordance with the terms of the Warrant.

Date: ___________________

	(Print Name of Registered Holder)

	By:
	Name:
	Title:
	Address:

EXHIBIT B

ASSIGNMENT OF WARRANT

(To be signed only upon authorized transfer of the Warrant)

For Value Received, the undersigned hereby sells, assigns, and transfers unto ________________ the right to purchase ________________ shares of common stock of Cachet Financial Solutions, Inc., to which the within Warrant to Purchase Common Stock relates and appoints ________________, as attorney-in-fact, to transfer said right on the books of Cachet Financial Solutions, Inc. with full power of substitution and re-substitution in the premises. By accepting such transfer, the transferee has agreed to be bound in all respects by the terms and conditions of the within Warrant.

Dated: ___________________

	(Signature)*


	Name:


	Address:


	(Social Security or Tax Identification No.)

* The signature on this Assignment of Warrant must correspond to the name as written upon the face of the Warrant to Purchase Common Stock in every particular without alteration or enlargement or any change whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, please indicate your position(s) and title(s) with such entity.

EX-99.7 7 ex99-7.htm

WARRANT TO PURCHASE COMMON STOCK

Warrant No.:022816

Number of Shares of Common Stock: 250,000

Date of Issuance: February 28, 2016 (“Issuance Date”)

1. EXERCISE OF WARRANT.

(a) Mechanics of Exercise. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole or in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. 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 with respect to less than all of the Warrant Shares 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. On or before the third Trading Day (the “Warrant Share Delivery Date”) following the date on which the Company shall have received the Exercise Notice, and upon receipt by the Company of (i) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise Delivery Documents”) in cash or by wire transfer of immediately available funds or (ii) notification from the Holder that this Warrant is being exercised pursuant to a Cashless Exercise, as defined below, the Company shall (or direct its transfer agent to) issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares. If this Warrant is submitted in connection with any exercise pursuant to Section 1(c) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 6) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

Net Number = (AxB) - (AxC)

For purposes of the foregoing formula:

	A =	the total number of shares with respect to which this Warrant is then being exercised.

	B =	the Weighted Average Price of the shares of Common Stock for the five consecutive Trading Days ending on the date immediately preceding the date of the Exercise Notice.

	C =	the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

2. ADJUSTMENTS. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

6. REISSUANCE.

7. TRANSFER.

8. NOTICES. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at or prior to 5:30 p.m. (Minneapolis time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Trading Day or later than 5:30 p.m. (Minneapolis time) on any Trading Day, (c) the third Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth in the Exercise Notice. The Company shall provide the Holder with prompt written notice (i) immediately upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment and (ii) at least 20 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata to the holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

12. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

13. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

(a) “Bloomberg” means Bloomberg Financial Markets.

(d) “Commission” means the United States Securities and Exchange Commission.

(e) “Common Stock” means the Company common stock, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

(g) “Exchange Act” means the Securities Exchange Act of 1934, and the rules and regulations thereunder.

(i) “Principal Market” means the primary national securities exchange on which the Common Stock is then traded.

(j) “Securities Act” means the Securities Act of 1933, and the rules and regulations thereunder.

* * * * * * *

In Witness Whereof, the Company has caused this Warrant to be duly executed as of the Issuance Date.

	CACHET FINANCIAL SOLUTIONS, INC.

	/s/ Bryan Meier
	Bryan Meier
	Executive vice President & Chief Financial officer

EXHIBIT A

EXERCISE NOTICE

(To be executed by the registered holder to exercise this Warrant to Purchase Common Stock)

The Undersigned holder hereby exercises the right to purchase__________________________ of the shares of Common Stock (“Warrant Shares”) of Cachet Financial Solutions, Inc., a Delaware corporation (the “Company”), evidenced by the attached copy of the Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

1.	Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as (check one):

[ ] a cash exercise with respect to_______________________ Warrant Shares; and/or

[ ] a “Cashless Exercise” with respect to_____________________ Warrant Shares.

Payment of Exercise Price. In the event that the holder has elected a cash exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $ __________________________to the Company in accordance with the terms of the Warrant.

3.	Delivery of Warrant Shares. The Company shall deliver to the holder__________________ Warrant Shares in accordance with the terms of the Warrant.

Date:


	(Print Name of Registered Holder)

	By:
	Name:
	Title:
	Address:

EXHIBIT B

ASSIGNMENT OF WARRANT

(To be signed only upon authorized transfer of the Warrant)

For Value Received, the undersigned hereby sells, assigns, and transfers unto ____________________ the right to purchase ____________________ shares of common stock of Cachet Financial Solutions, Inc., to which the within Warrant to Purchase Common Stock relates and appoints ____________________, as attorney-in-fact, to transfer said right on the books of Cachet Financial Solutions, Inc. with full power of substitution and re-substitution in the premises. By accepting such transfer, the transferee has agreed to be bound in all respects by the terms and conditions of the within Warrant.

Dated:


	(Signature) *


	(Name)


	(Address)


	(Social Security or Tax Identification No.)

EX-99.8 8 ex99-8.htm

CACHET FINANCIAL SOLUTIONS, INC.

a Delaware corporation

WARRANT TO PURCHASE COMMON STOCK

Warrant No. W2016-03-07

Issue Date: March 7, 2016

Cachet Financial Solutions Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received, Tiburon Opportunity Fund LP or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of 250,000 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 $0,329 (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 March 7, 2021 (the “Expiration Date”), subject to the following terms and conditions:

3. Exercise and Duration of Warrants.

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.

(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.

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:

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.

(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.

12. Dispute Resolution.

* * * * * * *

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of March 7, 2016.

	CACHET FINANCIAL SOLUTIONS, INC.

	By:	/s/ JEFFERY C. MACK
		JEFFERY C. MACK
		Chief Executive 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: