Document:

Exhibit

EXECUTION COPY
September 13, 2016
Herman Miller, Inc. 
855 East Main Avenue
Zeeland, Michigan  49464
		
	Re:
	Amendment No. 1 to Private Shelf Agreement

Ladies and Gentlemen:
Reference is made to that certain Private Shelf Agreement dated as of December 14, 2010 (the “Agreement”), between Herman Miller, Inc., a Michigan corporation (the “Company”), on the one hand, and PGIM, Inc. (formerly known as Prudential Investment Management, Inc.) (“Prudential”) and each Prudential Affiliate which becomes a party thereto, on the other hand.  Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.
The Company has requested that Prudential and the Required Holder(s) agree to modify the Agreement as set forth below.  Subject to the terms and conditions hereof, Prudential and the Required Holder(s) are willing to agree to the Company’s requests.
Accordingly, and in accordance with the provisions of Section 17.1 of the Agreement, the parties hereto agree as follows:
SECTION 1.    Amendments.  Effective on the Effective Date (as defined in Section 2 hereof), the Agreement is amended as follows:
1.1    Amendment to Section 5.16.  Section 5.16 of the Agreement is amended and restated in its entirety to read as follows:
“5.16    Foreign Assets Control Regulations, Etc.  (a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.
(b)    Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company’s knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws.
(c)    No part of the proceeds from the sale of the Notes hereunder:
(i)    constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;
(ii)    will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or
(iii)    will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, 

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retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws.
(d)    The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws.”
1.2    Addition of New Section 5.21.  The following new Section 5.21 is added to the Agreement in proper sequence:
“5.21    Solvency.  The Company and its Subsidiaries, taken as a whole, are Solvent, and after the execution, delivery and consummation of the Bank Credit Agreement and the other Loan Documents (as defined in the Bank Credit Agreement) on the First Amendment Effective Date, will be Solvent.  As used herein, “Solvent” means, with respect to any Person on any date, that on such date (a) the fair value of the property of such Person is greater than the fair value of the liabilities (including contingent, subordinated, matured and unliquidated liabilities) of such Person, (b) the present fair saleable value of the assets of such Person is greater than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature and (d) such Person is not engaged in or about to engage in business or transactions for which such Person’s property would constitute an unreasonably small capital.”
1.3    Amendment to Section 8.6.  The definition of “Reinvestment Yield” contained in Section 8.6 of the Agreement is amended by deleting the reference to “yields” in clause (i) thereof and replacing it with “‘Ask Yield(s)’”.
1.4    Amendment to Section 10.1.  Section 10.1(e) of the Agreement is amended and restated in its entirety to read as follows:
“(e)    Indebtedness not otherwise permitted by this Section 10.1 that, together (without duplication) with Indebtedness secured by Liens created by the Company or any Subsidiary under Section 10.2(f), does not in the aggregate at any time outstanding exceed the greater of (i) $30,000,000 and (ii) 10% of Tangible Net Worth; provided that, notwithstanding the foregoing, the aggregate amount permitted under this clause (e) shall not at any time that the Bank Credit Agreement and/or the 2007 Note Purchase Agreement is in effect exceed the aggregate amount permitted thereunder.”
1.5    Amendment to Section 10.2.  Section 10.2 of the Agreement is amended as follows:
(a)    Section 10.2(b) of the Agreement is amended by deleting each reference therein to “December 18, 2007” and replacing it with “the First Amendment Effective Date”.
(b)    Section 10.2(f) of the Agreement is amended and restated in its entirety to read as follows:
“(f)    Liens not otherwise permitted by this Section 10.2 securing Indebtedness that, together (without duplication) with Indebtedness incurred or assumed by any Subsidiary under Section 10.1(e), does not in the aggregate at any time outstanding exceed the greater of (i) $30,000,000 and (ii) 10% of Tangible Net Worth; provided that, notwithstanding the foregoing, the aggregate amount permitted under this clause (f) shall not at any time that the Bank Credit Agreement and/or the 2007 Note Purchase Agreement is in effect exceed the aggregate amount permitted thereunder; provided, further that no such Liens shall secure the obligations of the Company or any Subsidiary under any Principal Credit Facility.”
1.6    Amendment to Section 10.3.  Section 10.3(b) of the Agreement is amended and restated in its entirety to read as follows:

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“(b)    the Company or any of its Subsidiaries may acquire (by merger or otherwise, including a stock acquisition) any Person as a new Subsidiary or acquire all or substantially all the assets of any other Person (each, a “Proposed Target”); provided that (x) no Default or Event of Default exists or will result after giving effect to any such acquisition, (y) the Proposed Target is engaged in a business or activity reasonably related to the business of the Company and its Subsidiaries and (z) with respect to a Permitted Acquisition with a total purchase price (including assumed debt) exceeding $100,000,000 (a “Material Acquisition”):
(i)    after giving effect to such acquisition, the Company, either directly or indirectly, shall own not less than 90% (in number of votes) of the Equity Interests of the Proposed Target;
(ii)    on a pro forma basis, as if the acquisition of the Proposed Target (and any related incurrence or assumption of Indebtedness) had occurred at the beginning of the most recently-ended four fiscal quarter period for which the Company has delivered financial statements under Section 7.1(a) or Section 7.1(b) that precedes the date on which such acquisition actually occurs, (A) the Leverage Ratio as of the Determination Date for such acquisition would not exceed 3.50 to 1.00 (without giving effect to any Step-Up Election) and (B) the Company would be in compliance with the terms and conditions of this Agreement, which pro forma results shall be evidenced by a certificate of a Senior Financial Officer of the Company setting forth reasonably detailed calculations demonstrating pro forma compliance with subclause (a) above and with Section 10.12; and
(iii)    the board of directors or other governing body of the Proposed Target shall have approved the acquisition and such acquisition shall be completed as a result of an arm’s length negotiation (i.e., on a non-hostile basis).”
1.7    Amendment to Section 10.4.  Section 10.4(d) of the Agreement is amended and restated in its entirety to read as follows:
“(d)    Investments, loans or advances not otherwise permitted by this Section 10.4, but only if (i) no Default or Event of Default exists or will result after giving effect to any such investment, loan or advance and (ii) on a pro forma basis, as if such investment, loan or advance (and any related incurrence or assumption of Indebtedness) had occurred at the beginning of the most recently-ended four fiscal quarter period for which the Company has delivered financial statements under Section 7.1(a) or Section 7.1(b) that precedes the Determination Date for such investment, loan or advance, the Leverage Ratio as of such Determination Date would not exceed 3.50 to 1.00 (without giving effect to any Step-Up Election).”

1.8    Amendment to Section 10.6.  Section 10.6(c) is amended and restated in its entirety to read as follows:
“(c)     the Company may make Restricted Payments with respect to its Equity Interests, in each case so long as:

(i)     no Default or Event of Default exists or will result after giving effect to any such Restricted Payment;

(ii)     on a pro forma basis, assuming such Restricted Payment (and any related incurrence of Indebtedness) had occurred at the beginning of the most recently-ended four fiscal quarter period for which the Company has delivered financial statements under Section 7.1(a) or (b) that precedes the date on which such Restricted Payment actually occurs, (A) the Leverage Ratio as of the Determination Date for such Restricted Payment would not exceed 3.50 to 1.00 (without giving effect to any Step-Up Election) and (B) the Company would be in compliance with the terms and conditions of this Agreement; and

(iii)    the sum of (A) the aggregate Available Unused Commitments (as defined in the Bank Credit Agreement as in effect on the First Amendment Effective Date) of all Bank Lenders plus 

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(B) unrestricted cash of the Company and its Subsidiaries on a consolidated basis is at least $50,000,000.”
1.9    Amendment to Section 10.13.  Section 10.13(d) of the Agreement is deleted in its entirety, and Sections 10.13(b) and (c) of the Agreement are amended and restated in their entirety to read as follows, respectively:
“(b)     on a pro forma basis, assuming such 2007 Senior Notes Prepayment had occurred at the beginning of the most recently-ended four fiscal quarter period for which the Company has delivered financial statements under Section 7.1(a) or (b) that precedes the date on which such 2007 Senior Notes Prepayment actually occurs, (i) the Leverage Ratio as of the Determination Date for such 2007 Senior Notes Prepayment would not exceed 3.50 to 1.00 (without giving effect to any Step-Up Election) and (ii) the Company would be in compliance with the terms and conditions of this Agreement, which pro forma results shall be evidenced by a certificate of a Senior Financial Officer of the Company setting forth reasonably detailed calculations demonstrating pro forma compliance with clause (i) above and with Section 10.12; and
(c)     the sum of (i) Available Unused Commitments (as defined in the Bank Credit Agreement as in effect on the First Amendment Effective Date) of all Bank Lenders plus (ii) unrestricted cash of the Company and its Subsidiaries on a consolidated basis is at least $50,000,000.”
1.10    Amendment to Section 10.14.  Section 10.14 of the Agreement is amended and restated in its entirety to read as follows:
10.14    Economic Sanctions, Etc.  The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.
1.11    Amendment to Section 20.  The following new paragraph is added at the end of Section 20:
“In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other confidentiality undertaking.”
1.12    Amendment to Section 22.3.  The penultimate sentence of Section 22.3 of the Agreement is amended and restated in its entirety to read:  “Notwithstanding the foregoing or any other provision of this Agreement, (i) for purposes of determining compliance with any covenant, including any financial covenant, Indebtedness of the Company and any of its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 (and FASB ASC 470-20, if applicable) on financial liabilities shall be disregarded; (ii) from and after the effective date of FASB ASC 842 (Leases) (the “Lease Accounting Change”), all covenants (including financial covenants) under this Agreement shall continue to be calculated in accordance with GAAP as in effect immediately prior to the effectiveness of the Lease Accounting Change, unless otherwise agreed by and among the Company and the Required Holder(s) (the Company and the Required Holder(s) having no obligation to negotiate any amendments to this Agreement in response to the Lease Accounting Change); and (iii) together with each certificate of a Senior Financial Officer delivered pursuant to Section 7.2 for any period, the Company shall deliver reconciliations in reasonable detail showing calculations of all relevant covenants (including any financial covenant) with and without giving effect to the foregoing clauses (i) and (ii).”
1.13    Amendments to Schedule A.  

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(a)    The following new definitions are added to Schedule A to the Agreement in proper sequence:
“Anti-Corruption Law” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.
“Anti-Money Laundering Law” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.
“Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).
“Control” has the meaning specified in the definition of “Affiliate.”  “Controlled” has a correlative meaning.
“Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.
“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.
“First Amendment” means Amendment No. 1 to Private Shelf Agreement dated as of the First Amendment Effective Date among the Company, Prudential and the Prudential Affiliates party thereto.
“First Amendment Effective Date” means September 13, 2016.
“Governmental Official” means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.
“Material Acquisition” is defined in Section 10.3(b).
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.
“State Sanctions List” means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.
“Supply Chain Accounts Payable” means accounts payable owed by the Company or any Subsidiary Guarantor to a supplier, which have been sold or transferred to a financial institution under a supply chain financing or structured accounts payable program.

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“U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.
(b)    The following definitions contained in Schedule A to the Agreement are amended and restated in their entirety to read as follows, respectively: 
“Bank Credit Agreement” means the Fourth Amended and Restated Credit Agreement dated as of September 13, 2016 by and among the Company, certain Subsidiaries of the Company named therein, Wells Fargo Bank, National Association, as administrative agent, and the other financial institutions party thereto, as amended, restated, joined, supplemented or otherwise modified from time to time, and any renewals, extensions or replacements thereof which constitute the primary bank credit facility of the Company and its Subsidiaries.
“Consolidated EBITDA” means, with reference to any period, the net income (or loss) of the Company and its Subsidiaries for such period, plus, to the extent deducted from revenues in determining such net income, (a) Consolidated Interest Expense, (b) expense for income taxes paid or accrued, (c) depreciation, (d) amortization, (e) other non-cash expenses, including non-cash, share-based compensation deducted from net income in accordance with SFAS 123(R), (f) non-recurring costs or expenses incurred in connection with a restructuring or permitted merger or acquisition (in each case, with the written consent of the Required Holder(s), which shall not be unreasonably withheld), and (g) extraordinary non-cash losses incurred other than in the ordinary course of business, minus (or in the case of charges, plus), to the extent included in such net income, (x) extraordinary gains realized other than in the ordinary course of business and (y) non-cash charges or gains related to the Company’s pension plan(s) with respect to (i) actuarial gains and losses (including the effects of changes in assumptions) to the extent recognized for purposes of net pension costs under FASB ASC Topic 715 or (ii) as a result of an accounting for settlement or curtailment, in each case, in accordance with FASB ASC Topic 715-30-35, all as determined in accordance with GAAP and calculated for the Company and its Subsidiaries on a consolidated basis.  
“Determination Date” means (a) for purposes of Section 10.3(b)(ii) with respect to any acquisition, the date such acquisition closes, (b) for purposes of Section 10.4(d) with respect to any investment, loan or advance, the date such investment, loan or advance is made, (c) for purposes of Section 10.6(c)(ii) with respect to any Restricted Payment, the date such Restricted Payment is made and (d) for purposes of Section 10.13(b) with respect to any 2007 Senior Notes Prepayment, the date on which such 2007 Senior Notes Prepayment is made.
“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit, bank guarantee or letter of guaranty issued to support such Indebtedness or obligation; 

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provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business. 
“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding (i) current accounts payable incurred in the ordinary course of business and (ii) commencing January 3, 2018, and at all times thereafter, Supply Chain Accounts Payable incurred in the ordinary course of business, regardless of whether such current accounts payable or Supply Chain Accounts Payable are required to be classified as debt under GAAP or any other accounting rules or standards from time to time applicable to the Company or any Subsidiary Guarantor), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit, letters of guaranty and bank guarantees, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) all Off-Balance Sheet Liabilities of such Person, (l) all obligations under any Disqualified Stock of such Person and (m) the Net Mark-to-Market Exposure of such Person under Swap Agreements.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. Indebtedness of any Person shall not include (i) leases under which such Person is lessee that are true operating leases or (ii) such Person’s obligations under performance bonds.
“Leverage Ratio” means, as of the applicable Determination Date, the ratio of (a) Consolidated Indebtedness as of such date to (b) Consolidated EBITDA, as calculated for the most recently-ended four fiscal quarter period for which the Company has delivered financial statements under Section 7.1(a) or Section 7.1(b).
“Material Indebtedness” means Indebtedness (other than the Indebtedness evidenced by the Notes), or obligations in respect of one or more Swap Agreements, of any one or more of the Company and its Subsidiaries in an aggregate principal amount exceeding the Dollar Equivalent of $15,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Company or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that Company or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.
“Permitted Investments” means any investment that would qualify as cash equivalents under GAAP and any other investments that are either (a) permitted by the Company’s investment policy as of December 18, 2007 or (b) permitted under any revised or successor investment policy that may from time to time be adopted by the Company after the First Amendment Effective Date, so long as any such investment described in this clause (b) that would not have been permitted under the Company’s investment policy described in clause (a) is reasonably acceptable to the Required Holder(s).

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“Proposed Target” is defined in Section 10.3(b). 

(c)    The definitions of “Anti-Terrorism Order” and “Project Offshore” contained in Schedule A are deleted in their entirety.
1.14    Amendments to Schedules.  Schedules 5.4(a), 5.4(d) and 10.2 to the Agreement are replaced with Schedules 5.4(a), 5.4(d) and 10.2 to this letter.
SECTION 2.    Conditions Precedent.  The amendments in Section 1 of this letter shall become effective as of the date (the “Effective Date”) upon which each of the following conditions is satisfied:
2.1.    Documents.  Prudential and each holder of a Note shall have received original counterparts or, if satisfactory to Prudential and such holder, certified or other copies of all of the following, each duly executed and delivered by the party or parties thereto, in form and substance satisfactory to Prudential and such holder, dated the date hereof unless otherwise indicated, and on such date in full force and effect:
(a)    a copy of this letter, duly executed by the Company; and
(b)    a fully-executed copy of the Fourth Amended and Restated Credit Agreement among the Company, the Subsidiaries of the Company from time to time parties thereto as subsidiary borrowers, various financial institutions and Wells Fargo Bank, National Association, as administrative agent (the “Restated Credit Agreement”).
2.2.    Fees and Expenses.  The Company shall have paid the fees and expenses of special counsel to Prudential and the holders that have been presented to the Company as of the Effective Date.
2.3    Representations and Warranties.  The representations and warranties of the Company in Section 3 hereof shall be true and correct on the Effective Date.
2.4    Proceedings.  All corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incident thereto shall be satisfactory in substance and form to Prudential and the holders of the Notes and their counsel, and Prudential and each holder of a Note shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request.
SECTION 3.    Representations and Warranties of the Company.  To induce Prudential and the holders to execute and deliver this letter, the Company hereby represents, warrants and covenants that (1) the execution and delivery of this letter has been duly authorized by all necessary corporate action on behalf of the Company and this letter has been executed and delivered by a duly authorized officer of the Company, and all necessary or required consents to this letter have been obtained and are in full force and effect, (2) the representations and warranties contained in Section 5 of the Agreement are true on and as of the Effective Date (after giving effect to the amendments herein), and (3) there does not exist on the Effective Date any Event of Default or Default (after giving effect to the amendments herein).
SECTION 4.    Representations and Warranties of Holders of Notes.  Each holder of the Notes executing this letter hereby represents and warrants to the Company that (i) such holder holds the outstanding principal amount of the Notes set forth beneath its signature hereto; and (ii) each person signing this letter on its behalf has been duly authorized and has the requisite authority to execute and deliver this letter on behalf of such party and to bind such party to the terms and conditions of this letter.
SECTION 5.    Reference to and Effect on Agreement.  Upon the effectiveness of the amendments in this letter, each reference to the Agreement in any other document, instrument or agreement shall mean and be a reference to the Agreement, as modified by this letter.  Except as specifically set forth in Section 1 of this letter, the Agreement shall remain in full force and effect and each is hereby ratified and confirmed in all respects.  Except as specifically set forth in Section 1 of this letter, the execution, delivery and effectiveness of this letter shall not (a) amend the Agreement or any Note, (b) operate as a waiver of any right, power or remedy of Prudential or the holder of any Note, or (c) constitute a waiver of, or consent to any departure from, any provision of the Agreement or any Note at any time.  The Company acknowledges and agrees that neither Prudential nor any holder of a Note is under any duty or obligation of any kind or nature whatsoever to grant the Company any future amendments, waivers or consents 

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of any type, whether or not under similar circumstances, and no course of dealing or course of performance shall be deemed to have occurred as a result of the amendments herein.
SECTION 6.    Expenses.  The Company hereby confirms its obligations under the Agreement, whether or not the transactions hereby contemplated are consummated, to pay, promptly after request by Prudential, all reasonable out-of-pocket costs and expenses, including attorneys’ fees and expenses, incurred by Prudential or the holders of the Notes in connection with this letter agreement or the transactions contemplated hereby, in enforcing any rights under this letter, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this letter or the transactions contemplated hereby.  The obligations of the Company under this Section 6 shall survive transfer by any holder of any Note and payment of any Note.
SECTION 7.    Governing Law.  THIS LETTER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF ILLINOIS (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION).
SECTION 8.    Counterparts; Facsimile Signature Pages; Section Titles.  This letter may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this letter by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this letter.  The section titles contained in this letter are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
[signature pages follow]

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Very truly yours, 
 
PGIM, INC. (formerly known as Prudential Investment Management, Inc.) 
 
 
 
By:         
    Vice President
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA 
 
 
 
By:         
    Vice President
Outstanding principal amount of Notes held: 
 
$45,000,000.00
THE GIBRALTAR LIFE INSURANCE CO.,
   LTD.

By:    Prudential Investment Management Japan
Co., Ltd. (as Investment Manager)

By:    PGIM, Inc. (as Sub-Adviser)

By:  ______________________________
Vice President

Outstanding principal amount of Notes held:
$5,000,000.00

Signature Page to Amendment No. 1

Agreed and accepted: 

HERMAN MILLER, INC.  
 
 
By: ______________________________
Name:    Kevin J. Veltman
Title:     Vice President - Investor Relations
and Treasurer

Signature Page to Amendment No. 1

ORGANIZATION AND OWNERSHIP OF SHARES OF SUBSIDIARIES; AFFILIATES 

	
			
	Parent Company
	State of Incorporation
	 

	Herman Miller, Inc.
855 East Main Avenue
PO Box 302
Zeeland, Michigan 49464
	Michigan
	 

	
			
	Officers and Position
	Board of Directors
	Term Expiration

	Hezron Timothy Kelsie Lopez, Senior Vice President Legal Services, General Counsel & Secretary
	Michael A. Volkema, Chairman
	2019

	Don Goeman, EVP, Research, D&D
	David Brandon
	2018

	Steve Gane, EVP, President Geiger and Specialty Consumer
	Douglas French
	2018

	Jeffrey Kurburski, Sr. VP, CIO
	Mary Vermeer Andringa
	2017

	Andrew Lock, President HM International
	J. Barry Griswell
	2017

	Gregory Bylsma, EVP, COO, North America (Work & Learning)
	John R. Hoke III
	2018

	Malisa Bryant, Sr. VP Sales & Distribution North America (Work & Learning)
	Brenda Freeman
	2017

	Louise McDonald, President HM Healthcare
	Dorothy A. Terrell
	2017

	Michael Ramirez, Sr. VP People, Places, Administration
	Dr. David Ulrich
	2019

	Jeffrey Stutz, EVP & CFO
	Lisa Kro
	2019

	Brian C. Walker, President & CEO
	Brian C. Walker
	2017

	Bruce Benedict Watson, Executive Creative Director
	Heidi Manheimer
	2018

	Kevin Veltman, VP Treasury & Investor Relations
	 
	 

	John McPhee, EVP, President – DWR
	 
	 

	John Edelman, EVP, CEO – DWR
	 
	 

	
			
	Entity
	Ownership
	State or
Country of Corp.

	844782 Ontario, Inc.
	Herman Miller, Inc. 100%
	Canada

	Brandrud Furniture, Inc.
	Nemschoff Chairs, Inc. 100%
	Washington

	Colebrook Bosson Saunders, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Colebrook Bosson Saunders (Products), Ltd.
	Herman Miller, Ltd 100%
	UK

	Colebrook Bosson Saunders, Pty. Ltd.
	Herman Miller (Aust) Pty. Ltd 100%
	Australia

	Convia, Inc. (fka HMI Purple, Inc.)
	Herman Miller, Inc. 100%
	Delaware

	Coro Acquisition Corporation - California
	Herman Miller, Inc. 100%
	Michigan

	Design Within Reach, Inc.
	Herman Miller Consumer Holdings, Inc. 100%
	Delaware

SCHEDULE 5.4(a)  
(to Private Shelf Agreement)

	
			
	Entity
	Ownership
	State or
Country of Corp.

	Federal Solutions, LLC
	Nemschoff Chairs, Inc. 100%
	Wisconsin

	Geiger International, Inc.
	Herman Miller, Inc. 100%
	Delaware

	Herman Miller Consumer Corporation Canada
	Herman Miller Consumer Holdings, Inc. 100%
	Canada

	Herman Miller Consumer Co.
	Herman Miller Consumer Holdings, Inc. 100%
	Michigan

	Herman Miller Consumer Holdings Inc.
	Herman Miller, Inc. 92.59%, John Edelman 4.98%, John McPhee 2.38%, Kevin Vogl 0.03%, Marcella Barry 0.01%
	Michigan

	Herman Miller (Aust.) PTY LTD
	Herman Miller, Inc. 100%
	Australia

	Herman Miller (Ningbo) Furniture Co., Ltd.
	Herman Miller, Inc. 100%
	China

	Herman Miller (Dongguan) Furniture Co., Ltd.
	POSH Office Systems (Hong Kong) Ltd. 100%
	Hong Kong

	Herman Miller (Shanghai) Commercial and Trading Co., Ltd.
	Herman Miller, Inc. 100%
	PRC

	Herman Miller Accessories, LLC
	Herman Miller, Inc. 100%
	Delaware

	Herman Miller Asia Pte. Ltd.
	Herman Miller, Inc. 99.9% 
Director Qualified Shares 0.01%
	Singapore

	Herman Miller B.V.
	Herman Miller, Ltd. 100%
	Netherlands

	Herman Miller Canada, Inc.
	Herman Miller International Finance Luxembourg S.à r.l. 100%
	Canada

	Herman Miller Deutschland, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Herman Miller do Brasil, Ltda.
	Herman Miller, Inc. 80%, Herman Miller Liquidating 20%
	Brazil

	Herman Miller Furniture (India) Pvt. Ltd.
	Herman Miller Asia Pted. Ltd. 99.99% 
Herman Miller Ltd. 0.01%
	India

	Herman Miller Global Customer Solutions (Hong Kong), Limited
	Herman Miller International Finance Luxembourg S.à r.l. 100%
	Hong Kong

	Herman Miller Global Customer Solutions, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Herman Miller Global Holdings Luxembourg S.à r.l.
	Herman Miller International Finance Luxembourg S.à r.l. 100%
	Luxembourg

	Herman Miller Holdings Limited
	Herman Miller International Finance Luxembourg S.à r.l. 100%
	England and Wales

	Herman Miller International Finance Luxembourg S.à r.l
	Herman Miller Global Holdings Luxembourg S.à r.l. 100%
	Luxembourg

	Herman Miller Japan, Ltd.
	Herman Miller, Inc. 100%
	Japan

	Herman Miller Limited
	Herman Miller, Inc. 100%
	United Kingdom

	Herman Miller Mexico SA de CV
	Hermiri de SA de CV 99.1% 
Herman Miller, Inc. 00.9%
	Mexico, D.F.

	Herman Miller OP Spectrum Holdings, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Herman Miller Servicios S. de R.L. de C.V.
	Hermiri de SA de CV 99.9% 
Herman Miller, Inc. 0.01%
	Mexico, D.F.

	Herman Miller Zeeland, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Hermiri de SA de CV
	Herman Miller, Inc. 74.36% 
HM Delaware 25.63% 
0.01% James Christenson
	Mexico

SCHEDULE 5.4(a)  
(to Private Shelf Agreement)

	
			
	Entity
	Ownership
	State or
Country of Corp.

	HM Delaware LLC
	Herman Miller Canada Inc. 99%
Herman Miller Ltd. 1%
	Delaware

	HMI Bell, Inc.
	Convia, Inc. 100%
	Delaware

	HMI Liquidating Company
	Herman Miller, Inc. 100%
	Michigan

	Integrated Metal Technologies, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Jubilee Foundation  - (a/k/a Herman Miller Foundation)
	Herman Miller, Inc. 100%
	Michigan

	Maharam Fabric Corporation
	Herman Miller, Inc. 100%
	New York

	Meridian, Inc.
	Herman Miller, Inc. 100%
	Michigan

	Milsure Insurance, Ltd.
	Herman Miller, Inc. 100%
	Barbados, West Indies

	Naught One Ltd
	Naughtone (Holdings) Limited 100%
	England and Wales

	Naughtone (Holdings) Limited
	Herman Miller Holdings Limited 50%; Mark James Hammond 16.67%; Kieron Jon Blackwell 16.67%; Matthew John Welsh 16.67%
	England and Wales

	Naughtone Manufacturing Ltd
	Herman Miller Holdings Limited 50%; Mark James Hammond 12.5%; Kieron Jon Blackwell 12.5%; Matthew John Welsh 12.5%; Jonathan Cowgill 12.5%
	England and Wales

	Nemschoff Chairs, Inc.
	Herman Miller, Inc. 100%
	Wisconsin

	Nemschoff Distribution, LLC
	Nemschoff Chairs, Inc. 100%
	Wisconsin

	OP Ventures of Texas, Inc.
	Herman Miller, Inc. 100%
	Texas

	POSH Office Systems (Hong Kong) Ltd.
	Sun Hing POSH Holdings Limited 99%
Herman Miller, Inc. 1%
	Hong Kong

	Steeline (Hong Kong) Ltd.
	Sun Hing POSH Holdings Limited 50%
Herman Miller, Inc. 50%
	Hong Kong

	Sun Hing POSH Holdings Limited.
	Herman Miller Global Customer Solutions (Hong Kong) Ltd. 99%
Herman Miller, Inc. 1%
	Hong Kong

SCHEDULE 5.4(a)  
(to Private Shelf Agreement)

ORGANIZATION AND OWNERSHIP OF SHARES OF SUBSIDIARIES; AFFILIATES

The Company's Subsidiaries organized under the laws of the countries of China, Brazil and India are subject to restrictions on the ability to pay dividends and other similar distribution of profits by virtue of currency exchange control measures, corporate law and other legal prohibitions.

SCHEDULE 5.4(d)  
(to Private Shelf Agreement)

LIENS

Liens evidenced by the following UCC filings (each filing made with the office of the Michigan Secretary of State):
	
				
	Secured Party
	Original File No.
	Original Date of Filing
	Collateral

	Raymond Leasing Corporation
	2012100527-4
	7/12/12
	Specific leased equipment

	Classic Die, Inc.
	2012142609-8
	10/8/12
	Filing under Michigan Special Tools Lien Act

	Fisher/Unitech, Inc.
	2013042854-8
	3/27/13
	Specific equipment

	CG Automation & Fixture, Inc.
	2013054013-0
	4/17/13
	Filing under Michigan Special Tools Lien Act

	CG Automation & Fixture, Inc.
	2013074258-2
	5/22/13
	Filing under Michigan Special Tools Lien Act

	Toyota Motor Credit Corporation (assignee)
	2013101873-0
	7/15/13
	Specific equipment

	CG Automation & Fixture, Inc.
	2013123126-3
	8/23/13
	Filing under Michigan Special Tools Lien Act

	CG Automation & Fixture, Inc.
	2013138464-6
	9/25/13
	Filing under Michigan Special Tools Lien Act

	Precision Jig & Fixture, Inc.
	2013160124-4
	11/6/13
	Specific fixtures

	Commercial Tool & Die, Inc.
	2013172307-6
	12/6/13
	Filing under Michigan Special Tools Lien Act

	CG Automation & Fixture, Inc.
	2014012169-1
	1/24/14
	Filing under Michigan Special Tools Lien Act

	CG Automation & Fixture, Inc.
	2014038776-8
	3/20/14
	Filing under Michigan Special Tools Lien Act

	Commercial Tool & Die, Inc.
	2014049825-6
	4/9/14
	Filing under Michigan Special Tools Lien Act

	CG Automation & Fixture, Inc.
	2014073396-5
	5/21/14
	Filing under Michigan Special Tools Lien Act

	Hurco Companies, Inc.
	2014093481-0
	6/26/14
	Specific equipment

	CG Automation & Fixture, Inc.
	2014111411-6
	7/30/14
	Filing under Michigan Special Tools Lien Act

	Hurco Companies, Inc.
	2015010104-5
	1/23/15
	Specific equipment

	Precision Jig & Fixture, Inc.
	2015056498-2
	4/24/15
	Specific fixtures

	Classic Die, Inc.
	2015070251-8
	5/19/15
	Filing under Michigan Special Tools Lien Act

	Commercial Tool & Die, Inc.
	2015083058-3
	6/11/15
	Filing under Michigan Special Tools Lien Act

	Precision Jig & Fixture, Inc.
	2015102030-9
	7/17/15
	Specific fixtures

	Commercial Tool & Die, Inc.
	2015137753-2
	10/2/15
	Filing under Michigan Special Tools Lien Act

	Specialty Tooling Systems, Inc.
	2015140158-5
	10/8/15
	Specific equipment

	Commercial Tool & Die, Inc.
	2015143774-4
	10/15/15
	Filing under Michigan Special Tools Lien Act

SCHEDULE 10.2
(to Private Shelf Agreement)

	
				
	Secured Party
	Original File No.
	Original Date of Filing
	Collateral

	Specialty Tooling Systems, Inc.
	2015153507-1
	11/5/15
	Specific equipment

	Specialty Tooling Systems, Inc.
	2015153508-3
	11/5/15
	Specific equipment

	JR Automation Technologies, LLC
	2015009467-2
	1/21/16
	Filing under Michigan Special Tools Lien Act

	CG Automation & Fixture, Inc.
	2016017649-8
	2/8/16
	Filing under Michigan Special Tools Lien Act

	Epoch Robotics
	2016082228-5
	6/13/15
	Filing under Michigan Special Tools Lien Act

	Commercial Tool & Die, Inc.
	2016089807-0
	6/27/16
	Filing under Michigan Special Tools Lien Act

SCHEDULE 10.2
(to Private Shelf Agreement)Exhibit
10.1

 

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

 

CACHET
FINANCIAL SOLUTIONS, INC.

a
Delaware corporation

 

WARRANT
TO PURCHASE COMMON STOCK

 

	Warrant
    No. W2016-09-15-1	Issue
Date: September 15, 2016

 

Cachet
Financial Solutions Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received,
James L. Davis or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company
up to a total of 55,669 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 $4.94 (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 September 15, 2021 (the “Expiration Date”),
subject to the following terms and conditions:

 

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

 

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

 

    	 	 	 

     

    

 

3.
Exercise and Duration of Warrants.

 

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

 

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

 

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

 

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.

 

    	 	2	 

     

    

 

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

 

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

 

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

 

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

 

    	 	3	 

     

    

 

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

 

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

 

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

 

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

 

    	 	4	 

     

    

 

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

 

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

 

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

 

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

 

    	 	5	 

     

    

 

11.
General Provisions.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	6	 

     

    

 

12.Dispute
Resolution.

 

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

 

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

 

*
* * * * * *

 

    	 	7	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of September 15, 2016.

 

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

 

    	 	 	 

     

    

 

FORM
OF EXERCISE NOTICE

 

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

under
the foregoing Warrant)

 

Ladies
and Gentlemen:

 

	(1)	The
    undersigned is the Holder of Warrant No. __________ (the “Warrant”) issued by Cachet Financial Solutions, Inc.,
    a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined herein have the
    respective meanings set forth in the Warrant.
	 	 
	(2)	The
    undersigned hereby exercises its right to purchase __________ Warrant Shares pursuant to the Warrant.
	 	 
	(3)	Pursuant
    to this Exercise Notice, the Company shall deliver to the Holder _____________ Warrant Shares in accordance with the terms
    of the Warrant.

 

Name
of Holder: ______________________________________________

 

Signature:
 ___________________________________________________

 

Title
(if applicable):  ____________________________________________

 

Dated:
___________________________________________

 

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

 

    	 	 	 

     

    

 

FORM
OF ASSIGNMENT

 

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

 

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

 

	(a)	the
    offer and sale of the Warrant contemplated hereby is being made in compliance with Section 4(1) of the United States Securities
    Act of 1933 (the “Securities Act”) or another valid exemption from the registration requirements of Section 5
    of the Securities Act and in compliance with all applicable securities laws of the states of the United States;
	 	 
	(b)	the
    undersigned has not offered to sell the Warrant by any form of general solicitation or general advertising, including but
    not limited to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media
    or broadcast over television or radio, and any seminar or meeting whose attendees have been invited by any general solicitation
    or general advertising;
	 	 
	(c)	the
    undersigned has read the Transferee’s investment letter included herewith, and to its actual knowledge, the statements
    made therein are true and correct; and
	 	 
	(d)	the
    undersigned understands that the Company may condition the transfer of the Warrant contemplated hereby upon the delivery to
    the Company by the undersigned or the Transferee, as the case may be, of a written opinion of counsel (which opinion shall
    be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer
    may be made without registration under the Securities Act and under applicable securities laws of the states of the United
    States.

 

Name
of Holder:  ______________________________________________

 

Signature:

 ___________________________________________________

 

Title
(if applicable):   ____________________________________________

 

Dated:
___________________________________________

 

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

 

Address
of Transferee: __________________________________________________________________

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