EX-10.1 2 d794510dex101.htm EX-10.1 EX-10.1

Exhibit 10.1

 

LOGO

August 8, 2024

VIA EMAIL

LL Flooring Holdings, Inc.

4901 Bakers Mill Lane

Richmond, VA 23230

Attention: Holly Etlin

Chief Restructuring Officer

 

  Re:

Letter Agreement Governing Inventory Disposition

Dear Holly:

By executing below, subject to section R hereof, this letter shall serve as an agreement (“Agreement”) between Hilco Merchant Resources, LLC, on the one hand ( “Agent” or a “Party”), and LL Flooring Holdings, Inc., on the other hand (“Merchant” or a “Party” and together with the Agent, the “Parties”), under which Agent shall act as the exclusive agent for the purpose of conducting a sale of certain Merchandise (as defined below) at (i) the Merchant’s stores set forth on Exhibit A and (ii) any other stores as may be designated for disposition by Merchant from the date of this Agreement (each a “Store” and collectively, the “Stores”) and Merchant’s e-commerce platform if designated for disposition by Merchant, subject to the terms and conditions set forth herein, through a “Store Closing”, “Everything Must Go”, “Everything on Sale” or similar themed sale (the “Sale”).

 

A.

Merchandise

For purposes hereof, “Merchandise” shall mean all goods, saleable in the ordinary course, either located in the Stores on the Sale Commencement Date (defined below) or shipped to the Stores from Merchant’s distribution centers during the Sale Term. “Merchandise” does not mean and shall not include: (1) goods that belong to sublessees, licensees or concessionaires of Merchant; (2) owned furnishings, trade fixtures, equipment and improvements to real property that are located in the Stores (collectively, “FF&E”); or (3) damaged or defective merchandise that cannot be sold. For the avoidance of doubt, Merchandise includes goods that are marked damaged, but are nonetheless saleable.

 

B.

Sale Term

For each Store, the Sale shall commence on Friday, August 9, 2024 (the “Sale Commencement Date”) and conclude no later than Sunday, September 29, 2024 (the “Sale Termination Date”); provided, however, that the Parties may mutually agree in writing to extend or terminate the Sale at any Store prior to the Sale Termination Date. The period between the Sale Commencement Date and the Sale Termination Date shall be referred to as the “Sale Term.” At the conclusion of the Sale, Agent shall surrender the premises for each Store to Merchant in broom clean condition and in accordance with the lease requirements for such premises; provided, however, Merchant shall bear all costs and expenses associated with surrendering the premises in accordance with the lease requirements for such premises according to a budget mutually agreed to between the Agent and Merchant. At the conclusion of the Sale at each Store, Agent shall photographically document the condition of each such Store. Photographs shall reference with specificity each Store by number, name, and/or location.

C.

Project Management

 

  (i)

Agent’s Undertakings

During the Sale Term, Agent shall, in collaboration with Merchant, (a) provide qualified supervisors (the “Supervisors”) engaged by Agent to oversee the management of the Stores; (b) determine appropriate point-of-sale and external advertising for the Stores, approved in advance by Merchant; (c) determine appropriate discounts of Merchandise, staffing levels for the Stores, approved in advance by Merchant, and appropriate bonus and incentive programs, if any, for the Stores’ employees, approved in advance by Merchant; (d) oversee display of Merchandise for the Stores; (e) to the extent that information is available, evaluate sales of Merchandise by category and sales reporting and monitor expenses; (f) maintain the confidentiality of all proprietary or non-public information regarding Merchant in accordance with the provisions of the confidentiality agreement signed by the Parties; (g) assist Merchant in connection with managing loss prevention and employee relations matters; (h) determine the necessity for obtaining any applicable permits and governmental approvals to conduct the Sale, including working with Merchant to obtain each in a timely and orderly fashion and preparing or causing to be prepared all forms necessary to assist in Merchant’s securing any applicable permits and governmental approvals necessary to conduct the Sale, the costs and expenses of which shall be paid by Merchant and shall be in addition to the costs and expenses set forth on the Expense Budget; (i) include Additional Agent Goods in the Sale in its discretion under the terms set forth in this Agreement; and (k) provide such other related services deemed necessary or appropriate by Merchant and Agent.

The Parties expressly acknowledge and agree that Merchant shall have no liability to the Supervisors for wages, benefits, severance pay, termination pay, vacation pay, pay in lieu of notice of termination or any other liability arising from Agent’s hiring or engagement of the Supervisors, and the Supervisors shall not be considered employees of Merchant.

 

  (ii)

Merchant’s Undertakings

During the Sale Term, Merchant shall (a) be the employer of the Stores’ employees, other than the Supervisors; (b) pay all taxes, costs, expenses, accounts payable, and other liabilities relating to the Stores, the Stores’ employees and other representatives of Merchant; (c) prepare and process all tax forms and other documentation; (d) collect all sales taxes and pay them to the appropriate taxing authorities for the Stores; (e) use reasonable efforts to cause Merchant’s employees to cooperate with Agent and the Supervisors; (f) execute all agreements mutually determined by the Merchant and Agent to be necessary or desirable for the operation of the Stores during the Sale; (g) arrange for the ordinary maintenance of all point-of-sale equipment required for the Stores and any computer servers necessary to operate the Sale; (h) apply for and obtain, with Agent’s assistance and support, all applicable permits and authorizations (including landlord approvals and consents) for the Sale; (i) ensure that Agent has quiet use and enjoyment of the Stores for the Sale Term in order to perform its obligations under this Agreement.

 

2

Merchant shall provide throughout the Sale Term central administrative services necessary for the Sale, including (without limitation) customary POS administration, sales audit, cash reconciliation, accounting, and payroll processing, all at no cost to Agent.

The Parties expressly acknowledge and agree that Agent shall have no liability to Merchant’s employees for wages, benefits, severance pay, termination pay, vacation pay, pay in lieu of notice of termination or any other liability arising from Merchant’s employment, hiring or retention of its employees, and such employees shall not be considered employees of Agent.

 

D.

The Sale

All sales of Merchandise shall be made on behalf of Merchant. In conducting the Sale, Agent shall have the right to use the LL Flooring and Lumber Liquidators names to market the Merchandise. Agent does not have, nor shall it have, any right, title or interest in the Merchandise. All sales of Merchandise shall be by cash, gift card, gift certificate, merchandise credit, debit card, voucher, or credit card and, at Merchant’s discretion, by check or otherwise in accordance with Merchant’s policies, and shall be “final” with no returns accepted or allowed, unless otherwise directed by Merchant, provided, however, that purchases via voucher, gift card, or gift certificate shall only be accepted for the time period and pursuant to the terms set forth in the Approval Order (as defined below). For the avoidance of doubt, Merchant’s pre-Sale return policy will be honored to allow returns of items sold pre-Sale in accordance with Merchant’s pre-Sale return policy applicable to the product(s) sought to be returned.

 

E.

Agent Fee and Expenses in Connection with the Sale

In consideration of its services hereunder, Agent shall earn a base retail fee equal to two percent (2.0%) of the Gross Proceeds of Merchandise sold at the Stores (the “Base Retail Fee”). Agent shall earn a base wholesale fee of seven and one half percent (7.5%) of the Gross Proceeds of Merchandise sold through Agent’s wholesale channels (the “Wholesale Fee”). For purposes of this Agreement, “Gross Proceeds” means gross receipts calculated using the “gross rings” method, net of applicable sales taxes.

 

 

3

In addition to the Base Retail Fee and the Wholesale Fee, and not in lieu thereof, the Merchant shall pay to Agent from Gross Proceeds an additional fee based upon the Gross Recovery Percentages achieved as set forth in the following table (the “Additional Incentive Compensation”). The Additional Incentive Compensation shall be equal to the aggregate sum of the percentages set forth in the “Additional Incentive Compensation” column of the table (e.g., calculated back to first dollar) for the corresponding Gross Recovery Percentage achieved; provided, however, no Additional Incentive Compensation shall be earned or payable where the Gross Recovery Percentage is less than 94.74%:

 

Gross Cost Recovery Percentage

   

Additional Incentive Compensation

Between 94.75% and 95.5%    An additional 0.25% of Gross Proceeds (total fee equal to 2.25% of Gross Proceeds)
Above 95.5%    An additional 0.25% of Gross Proceeds (total fee equal to 2.50% of Gross Proceeds)

For purposes of the Additional Incentive Compensation:

“Cost Value” with respect to each item of Merchandise sold shall mean the lower of (i) the lowest per unit vendor cost in the File or in the Merchant’s books and records, maintained in the ordinary course consistent with historic practices; or (ii) the Retail Price.

“File” shall mean the following files provided to Agent: “Total Inventory by Site and Article as of 07.31.24.xlsx” and “June EOM Inventory by Site with Price.xlsx,” and all subsequent merchandise files created or updated through the Sale Commencement Date.

“Gross Recovery Percentage” shall mean the Gross Proceeds divided by the sum of the aggregate Cost Value of all of the Merchandise.

“Retail Price” shall mean with respect to each item of Merchandise sold, the retail price reflected at the register for such item, excluding the discount granted in connection with such sale.

Merchant shall be responsible for all expenses of the Sale, including (without limitation) all Store-level operating expenses, all costs and expenses related to Merchant’s other retail store operations, Merchant’s costs for operating the Distribution Centers (as defined below), and Agent’s other reasonable, documented out of pocket expenses. To control expenses of the Sale, Merchant and Agent have established an aggregate budget (the “Expense Budget”) of certain delineated expenses, including (without limitation) payment of the costs of supervision (including (without limitation) Supervisors’ wages, fees, travel, and deferred compensation) and advertising costs. The Expense Budget for the Sale is attached hereto as Exhibit B. The Expense Budget may only be modified by mutual written (including email) agreement of Agent and Merchant, provided that appropriate modifications to the Expense Budget, if any, will be mutually agreed prior to Merchant’s addition of any stores for disposition under this Agreement. The costs of supervision set forth on Exhibit B include, among other things, industry standard deferred compensation. Notwithstanding anything herein to the contrary, unless otherwise agreed to by Merchant, Merchant shall not be obligated to pay costs that have not been included, or provided for, in the Expense Budget, as may be amended in accordance with this Agreement.

All accounting matters (including, without limitation, all fees, expenses, or other amounts reimbursable or payable to Agent) shall be reconciled on every Wednesday for the prior week and shall be paid within seven (7) days after each such weekly reconciliation. The Parties shall complete a final reconciliation and settlement of all amounts payable to Agent and contemplated by this Agreement (including, without limitation, Expense Budget items, and fees earned hereunder) no later than forty five (45) days following the Sale Termination Date for the last Store.

 

4

Upon execution of this Agreement, the Merchant shall pay by wire transfer to the Agent an advance payment of costs and expenses delineated in the Expense Budget of $708,360 (the “Sale Expense Advance”) which shall be held by Agent and applied towards Expense Budget items as incurred. Any portion of the Sale Expense Advance not so used shall be returned to Merchant within three days following the final reconciliation.

 

F.

Indemnification

 

  (i)

Merchant’s Indemnification

Merchant shall indemnify, defend, and hold Agent and its consultants, members, managers, partners, officers, directors, employees, attorneys, advisors, representatives, lenders, potential co-investors, principals, affiliates, and Supervisors (collectively, “Agent Indemnified Parties”) harmless from and against all liabilities, claims, demands, damages, costs and expenses (including reasonable attorneys’ fees) arising from or related to: (a) the willful or negligent acts or omissions of Merchant or the Merchant Indemnified Parties (as defined below); (b) the material breach of any provision of this Agreement by Merchant; (c) any liability or other claims, including, without limitation, product liability claims, asserted by customers, any Store employees (under a collective bargaining agreement or otherwise), or any other person (excluding Agent Indemnified Parties) against Agent or an Agent Indemnified Party, except claims arising from Agent’s negligence, willful misconduct, actual fraud, or unlawful behavior; (d) any harassment, discrimination or violation of any laws or regulations or any other unlawful, tortious or otherwise actionable treatment of Agent’s Indemnified Parties or Merchant’s customers by Merchant or Merchant’s Indemnified Parties; and (e) Merchant’s failure to pay over to the appropriate taxing authority any taxes required to be paid by Merchant during the Sale Term in accordance with applicable law.

 

  (ii)

Agent’s Indemnification

Agent shall indemnify, defend and hold Merchant and its consultants, members, managers, partners, officers, directors, employees, attorneys, advisors, representatives, lenders, potential co-investors, principals, and affiliates (other than the Agent or the Agent Indemnified Parties) (collectively, “Merchant Indemnified Parties”) harmless from and against all liabilities, claims, demands, damages, costs and expenses (including reasonable attorneys’ fees) arising from or related to (a) the willful or negligent acts or omissions of Agent or the Agent Indemnified Parties; (b) the breach of any provision of, or the failure to perform any obligation under, this Agreement by Agent; (c) any liability or other claims made by Agent’s Indemnified Parties or any other person (excluding Merchant Indemnified Parties) against a Merchant Indemnified Party arising out of or related to Agent’s conduct of the Sale, except claims arising from Merchant’s negligence, willful misconduct, actual fraud, or unlawful behavior; (d) any harassment, discrimination or violation of any laws or regulations or any other unlawful, tortious or otherwise actionable treatment of Merchant Indemnified Parties, or Merchant’s customers by Agent or any of the Agent Indemnified Parties and (e) any claims made by any party engaged by Agent as an employee, agent, representative or independent contractor arising out of such engagement.

 

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G.

Insurance

 

  (i)

Merchant’s Insurance Obligations

Merchant shall maintain throughout the Sale Term, liability insurance policies (including, without limitation, products liability (to the extent currently provided), commercial general liability insurance and auto liability insurance) covering injuries to persons and property in or in connection with the Stores, and shall use commercially reasonable efforts to cause Agent to be named as an additional insured with respect to all such policies. At Agent’s request, Merchant shall provide Agent with a certificate or certificates evidencing the insurance coverage required hereunder and that Agent is an additional insured thereunder. In addition, Merchant shall maintain throughout the Sale Term, in such amounts as it currently has in effect, workers compensation insurance in compliance with all statutory requirements.

 

  (ii)

Agent’s Insurance Obligations

As an expense of the Sale and as included in the Expense Budget, Agent shall maintain (at Agent’s expense) throughout the Sale Term, liability insurance policies (including, without limitation, products liability/completed operations, contractual liability, comprehensive public liability and auto liability insurance) on an occurrence basis in an amount of at least Two Million dollars ($2,000,000) and an aggregate basis of at least five million dollars ($5,000,000) covering injuries to persons and property in or in connection with Agent’s provision of services at the Stores. Agent shall name Merchant as an additional insured and loss payee under such policy, and upon execution of this Agreement provide Merchant with a certificate or certificates evidencing the insurance coverage required hereunder. In addition, Agent shall maintain throughout the Sale Term, workers compensation insurance compliance with all statutory requirements. Further, should Agent employ or engage third parties to perform any of Agent’s undertakings with regard to this Agreement, Agent will ensure that such third parties are covered by Agent’s insurance or maintain all of the same insurance as Agent is required to maintain pursuant to this paragraph and name Merchant as an additional insured and loss payee under the policy for each such insurance.

 

H.

Representations, Warranties, Covenants and Agreements

(i) Merchant warrants, represents, covenants and agrees that (a) Merchant is a company duly organized, validly existing and in good standing under the laws of its state of organization, with full power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and maintains its principal executive office at the address set forth herein, (b) the execution, delivery and performance of this Agreement has been duly authorized by all necessary actions of Merchant and this Agreement constitutes a valid and binding obligation of Merchant enforceable against Merchant in accordance with its terms and conditions, and the consent of no other entity or person is required for Merchant to fully perform all of its obligations herein, (c) all ticketing of Merchandise at the Stores has been and will be done in accordance with Merchant’s customary ticketing practices; (d) all normal course hard markdowns on the Merchandise have been, and will be, taken consistent with customary Merchant’s practices, and (e) the Stores will be operated in the ordinary course of business in all respects, other than those expressly agreed to by Merchant and Agent.

 

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(ii) Agent warrants, represents, covenants and agrees that (a) Agent is a company duly organized, validly existing and in good standing under the laws of its state of organization, with full power and authority to execute and deliver this Agreement and to perform the Agent’s obligations hereunder, and maintains its principal executive office at the addresses set forth herein, (b) the execution, delivery and performance of this Agreement has been duly authorized by all necessary actions of Agent and this Agreement constitutes a valid and binding obligation of Agent enforceable against Agent in accordance with its terms and conditions, and the consent of no other entity or person is required for Agent to fully perform all of its obligations herein, (c) Agent shall comply with and act in accordance with any and all applicable state and local laws, rules, and regulations, and other legal obligations of all governmental authorities, (d) no non-emergency repairs or maintenance in the Stores will be conducted without Merchant’s prior written consent, and (e) Agent will not take any disciplinary action against any employee of Merchant.

 

I.

Furniture, Fixtures and Equipment

Agent shall sell the FF&E in the Stores from the Stores themselves and from Merchant’s distribution centers (the “Distribution Centers”) from the Distribution Centers themselves. Merchant shall be responsible for all reasonable and documented costs and expenses incurred by Agent in connection with the sale of FF&E, which costs and expenses shall be incurred pursuant to a budget or budgets to be established from time to time by mutual agreement of the Parties. Agent shall have the right to abandon at the Stores any unsold FF&E.

In consideration for providing the services set forth in this section I, Agent shall be entitled to a commission from the sale of the FF&E equal to 15.0% of the Gross Proceeds of the sale of the FF&E.

Agent shall remit to Merchant all Gross Proceeds from the sale of FF&E. During each weekly reconciliation described in section E above, Agent’s FF&E fee shall be calculated, and Agent’s calculated FF&E fee and all FF&E costs and expenses then incurred shall paid within seven (7) days after each such weekly reconciliation.

 

II.

Termination

The following shall constitute “Termination Events” hereunder:

 

  (a)

Merchant’s or Agent’s failure to perform any of their respective material obligations hereunder, which failure shall continue uncured seven (7) days after receipt of written notice thereof to the defaulting Party;

 

  (b)

Any representation or warranty made by Merchant or Agent is untrue in any material respect as of the date made or at any time and throughout the Sale Term; or

 

  (c)

the Sale is terminated or materially interrupted or impaired for any reason other than an event of default by Agent or Merchant.

 

7

If a Termination Event occurs, the non-defaulting Party (in the case of an event of default) or either Party (if the Sale is otherwise terminated or materially interrupted or impaired) may, in its 7 discretion, elect to terminate this Agreement by providing seven (7) business days’ written notice thereof to the other Party and, in the case of an event of default, in addition to terminating this Agreement, pursue any and all rights and remedies and damages resulting from such default. If this Agreement is terminated, Merchant shall be obligated to pay Agent all amounts due under this Agreement through and including the termination date.

 

K.

Notices

All notices, certificates, approvals, and payments provided for herein shall be sent by fax or by recognized overnight delivery service as follows: (a) To Merchant: at the address listed above; (b) To Agent: c/o Hilco Merchant Resources, LLC, One Northbrook Place, 5 Revere Drive, Suite 206, Northbrook, IL 60062, Fax: 847- 849-0859, Attn: T. Kellan Grant; or (c) such other address as may be designated in writing by Merchant or Agent. To the extent that a writing or written agreement is required by this Agreement, such writing or written agreement may be memorialized in and transmitted by electronic mail.

 

L.

Independent Consultant

Agent’s relationship to Merchant is that of an independent contractor without the capacity to bind Merchant in any respect. No employer/employee, principal/agent, joint venture or other such relationship is created by this Agreement. Merchant shall have no control over the hours that Agent or its employees or assistants or the Supervisors work or the means or manner in which the services that will be provided are performed and Agent is not authorized to enter into any contracts or agreements on behalf of Merchant or to otherwise create any obligations of Merchant to third parties, unless authorized in writing to do so by Merchant.

 

M.

Non-Assignment

Neither this Agreement nor any of the rights hereunder may be transferred or assigned by either Party without the prior written consent of the other Party; provided, however, that Agent may syndicate this transaction with one or more third parties upon notice to, but not the consent of Merchant. No modification, amendment or waiver of any of the provisions contained in this Agreement, or any future representation, promise or condition in connection with the subject matter of this Agreement, shall be binding upon any Party to this Agreement unless made in writing and signed by a duly authorized representative or agent of such Party. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and permitted assigns.

 

N.

Severability

If any term or provision of this Agreement, as applied to either Party or any circumstance, for any reason shall be declared by a court of competent jurisdiction to be invalid, illegal, unenforceable, inoperative or otherwise ineffective, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable. If the surviving portions of the Agreement fail to retain the essential understanding of the Parties, the Agreement may be terminated by mutual consent of the Parties.

 

8

O.

Governing Law, Venue, Jurisdiction and Jury Waiver

This Agreement, and its validity, construction and effect, shall be governed by and enforced in accordance with the internal laws of the State of Illinois (without reference to the conflicts of laws provisions therein). Merchant and Agent waive their respective rights to trial by jury of any cause of action, claim, counterclaim or cross-complaint in any action, proceeding and/or hearing brought by either Agent against Merchant or Merchant against Agent on any matter whatsoever arising out of, or in any way connected with, this Agreement, the relationship between Merchant and Agent, any claim of injury or damage or the enforcement of any remedy under any law, statute or regulation, emergency or otherwise, now or hereafter in effect.

 

P.

Entire Agreement

This Agreement, together with all additional schedules and exhibits attached hereto, constitutes a single, integrated written contract expressing the entire agreement of the Parties concerning the subject matter hereof. No covenants, agreements, representations or warranties of any kind whatsoever have been made by any Party except as specifically set forth in this Agreement. All prior agreements, discussions and negotiations are entirely superseded by this Agreement.

 

Q.

Execution

This Agreement may be executed simultaneously in counterparts (including by means of electronic mail, facsimile or portable document format (pdf) signature pages), any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same instrument. This Agreement, and any amendments hereto, to the extent signed and delivered by means of electronic mail, a facsimile machine or electronic transmission in portable document format (pdf), shall be treated in all manner and respects as an original thereof and shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.

 

R.

Bankruptcy

If the Merchant commences a case under Chapter 11 of title 11, United States Code (the “Bankruptcy Code”), with a bankruptcy court (the “Bankruptcy Court”), the Merchant shall promptly file a motion to assume sections of this Agreement under section 365 and/or 363 of the Bankruptcy Code, and utilize its reasonable best efforts to ensure that such motion is approved by an order that provides, among other things, as follows (the “Approval Order”): (i) the payment of all fees and reimbursement of expenses under this Agreement is approved without further order of the court; (ii) all such payments of fees and reimbursement of expenses related to such Approval Order shall be made on a weekly basis without further order of the Bankruptcy Court and otherwise in accordance with this Agreement; (iii) the payment of all fees and reimbursement of expenses to Agent related to such Approval Orders shall be included in any approved debtor in possession, cash collateral, or other post-petition financing budget as a condition to the Assumption of the Agreement; (iv) authorizing the Sale without the necessity of complying with state and local rules, laws, ordinances and regulations, including, without limitation, permitting and licensing requirements, that could otherwise govern the Sale; (v) authorizing the Sale notwithstanding restrictions in leases, reciprocal easement agreements or other contracts that purport to restrict the Sale or the necessity of obtaining any third party consents; (vi) approving the sale of Additional Agent Goods in accordance with the terms and

 

9

conditions hereof; and (vii) take all further actions as are necessary or appropriate to carry out the terms and conditions of this Agreement. In such event, any legal action, suit or proceeding arising in connection with this Agreement shall be submitted to the exclusive jurisdiction of the Bankruptcy Court having jurisdiction over the Merchant, and each Party waives any defenses or objections based on lack of jurisdiction, improper venue, and/or forum non conveniens. From and after entry of the Approval Order, Agent shall conduct the Sale in accordance with the terms of the Approval Order in all material respects.

 

S.

Additional Agent Goods

 

  (1)

Exercisable in its reasonable discretion, Agent shall have the right to supplement the Merchandise in the Sale with additional goods procured by Agent which are of like kind, and no lesser quality to the Merchandise in the Sale (“Additional Agent Goods”), provided that Merchant may reasonably object to the inclusion of Additional Agent Goods that are not of like kind and are of lesser quality to the Merchandise in the Sale at the Closing Stores or through the e-commerce platform. Any Additional Agent Goods shall be purchased by Agent as part the Sale at Agent’s sole expense, with the total cost of any such Additional Agent Goods not to exceed fifteen percent (15%) of the aggregate Cost Value in any particular Store. Sales of Additional Agent Goods shall be run through Merchant’s cash register systems, so long as Agent has marked the Additional Agent Goods using either a “dummy” SKU or department number, or in such other manner so as to distinguish the sale of Additional Agent Goods from the sale of Merchandise. Agent and Merchant shall also cooperate to ensure that the Additional Agent Goods are marked in such a way that a reasonable consumer could identify the Additional Agent Goods as non-Merchandise. Additionally, Agent shall provide signage in the Stores notifying customers that the Additional Agent Goods have been included in the Sale.

 

  (2)

Agent shall pay to Merchant an amount equal to five percent (5%) of the gross proceeds (excluding sales taxes) from the sale of Additional Agent Goods (the “Additional Agent Goods Fee”) completed during the Sale Term and Agent shall retain all remaining amounts from the sale of the Additional Agent Goods. Agent shall pay to Merchant the then-reconciled Additional Agent Goods Fee in connection with the weekly reconciliation with respect to the sales of Additional Agent Goods sold by the Agent during each then prior week (or at such other mutually agreed upon time). Agent and the Merchant intend that the transactions relating to the Additional Agent Goods are, and shall be construed as, a true consignment from Agent to the Merchant in all respects and not a consignment for security purposes. Subject solely to Agent’s obligations to pay to the Merchant the Additional Agent Goods fee described in this Agreement, at all times and for all purposes the Additional Agent Goods and their proceeds shall be the exclusive property of Agent, and no other person or entity shall have any claim against any of the Additional Agent Goods or their proceeds. At Agent’s sole cost and expense, the Merchant shall insure the Additional Agent Goods and, if required, promptly file any proofs of loss with regard to same with the Merchant’s insurers. Agent shall be responsible for payment of any deductible under any such insurance in the event of any casualty affecting the Additional Agent Goods.

 

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  (3)

The Merchant acknowledges that the Additional Agent Goods shall be consigned to the Merchant as a true consignment under Article 9 of the Code. Any Approval Order shall contain provisions reasonable acceptable to Agent governing the treatment and sale of Additional Agent Goods.

*   *   *

 

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If this Agreement is acceptable to you, kindly execute a copy in the space provided, and return a countersigned version to the undersigned. Thank you again for this opportunity — we look forward to working with you.

 

Very truly yours,
HILCO MERCHANT RESOURCES, LLC

/s/ T. Kellan Grant

By:   T. Kellan Grant
Its:   EVP Commercial Counsel

 

AGREED AND ACCEPTED as of the 8th day
of August, 2024
LL FLOORING HOLDINGS, INC.

/s/ Charles Tyson

By:   Charles Tyson
Its:   Chief Executive Officer

 

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EXHIBIT A

Stores

 

13

LL Flooring, LLC

Exhibit A

 

Store List

 

Count

   

Loc #

   

Name

   

Address

   

City

   

State

   

Zip

   

Country

   

Phone

   

District

   

Region

   

Open
Date

   

Lease
End
Date

   

Gross
Sq.
Ft.

   

WH
Sq Ft

   

Selling
Sq. Ft.

1

    1019    1019 PHOENIX, AZ    2120 S. 7th Street    Phoenix    AZ    85034    USA    (602)454-2552    WESTUS    REGION 27    09/01/01    06/30/25    8,400    6,902    1,498

2

    1059    1059 RANCHO CUCAMONGA, CA    10920 Foothill Blvd. (Foothill Crossing)    Rancho Cucamonga    CA    91730    USA    (909)937-1122    WESTUS    REGION 14    12/14/04    05/31/25    7,039    5,430    1,609

3

    1076    1076 COLUMBUS, OH    4242 West Broad Street    Columbus    OH    43228    USA    (614)851-4500    EASTUS    REGION 28    12/19/05    04/30/28    6,900    5,399    1,501

4

    1089    1089 CHANHASSEN, MN    2973 Water Tower Place    Chanhassen    MN    55317    USA    (952)314-4975    SOUTHUS    REGION 17    11/07/06    09/30/26    6,356    5,553    803

5

    1094    1094 NORWALK, CT    651 Connecticut Ave    Norwalk    CT    06854    USA    (203)842-0840    EASTUS    REGION 5    03/08/07    03/31/27    5,740    4,760    999

6

    1125    1125 MCALLEN, TX    3300 West Frontage Rd (Palms Crossing)    McAllen    TX    78503    USA    (956)467-5679    WESTUS    REGION 24    01/02/08    01/31/30    15,000    12,558    2,442

7

    1126    1126 EAST PEORIA, IL    1467 N. Main Street    East Peoria    IL    61611    USA    (309)740-1801    EASTUS    REGION 8    02/02/08    01/31/28    9,450    8,305    1,145

8

    1127    1127 LONGMONT, CO    633 Frontage Road    Longmont    CO    80501    USA    (720)204-3477    WESTUS    REGION 27    02/29/08    12/31/24    6,000    5,170    830

9

    1131    1131 BURLINGAME, CA    1501 Adrian Road    Burlingame    CA    94010    USA    (650)204-4663    WESTUS    REGION 19    10/11/08    02/28/25    7,200    6,192    1,008

10

    1145    1145 DAVENPORT, IA    321 West Kimberly Road    Davenport    IA    52806    USA    (563)726-0682    SOUTHUS    REGION 9    10/17/08    12/31/24    5,500    4,595    905

11

    1170    1170 FRESNO, CA    5091 N. Fresno Street, Suite 140 (Gallery Plaza)    Fresno    CA    93710    USA    (559)708-4281    WESTUS    REGION 25    08/15/09    09/30/26    8,144    6,957    1,187

12

    1177    1177 WESTBURY, NY    24 Kinkel St    Westbury    NY    11590    USA    (516)874-2033    EASTUS    REGION 5    11/16/09    08/31/28    9,900    8,434    1,466

13

    1179    1179 ROCHESTER, MN    5139 Highway 52N    Rochester    MN    55901    USA    (507)216-0978    SOUTHUS    REGION 17    10/02/09    03/31/25    5,388    4,474    914

14

    1187    1187 BROUSSARD, LA    3401 Hwy 90    East Broussard    LA    70518    USA    (337)326-4683    SOUTHUS    REGION 16    10/17/09    09/30/26    7,100    6,200    900

15

    1189    1189 BAKERSFIELD, CA    3601 Ming Avenue    Bakersfield    CA    93309    USA    (661)412-0063    WESTUS    REGION 25    11/27/09    05/31/28    8,500    6,970    1,530

16

    1208    1208 EDGEWOOD, MD    2710 Pulaski Highway    Edgewood    MD    21040    USA    (443)490-0180    EASTUS    REGION 3    06/14/10    10/31/24    5,000    4,076    924

17

    1213    1213 SAN DIEGO, CA    2222 Verus Street Suite A & B    San Diego    CA    92154    USA    (619)207-4667    WESTUS    REGION 14    08/13/10    09/30/25    7,339    6,139    1,200

18

    1223    1223 SHERMAN, TX    1215 S Sam Rayburn Freeway    Sherman    TX    75090    USA    (903)487-0368    WESTUS    REGION 11    12/10/10    02/28/25    4,317    3,409    908

19

    1227    1227 GENEVA, IL    1530 South Randall Road Road    Geneva    IL    60185    USA    (630)206-1535    EASTUS    REGION 8    12/04/10    01/31/30    6,000    4,542    1,458

20

    1232    1232 NORTH HAVEN, CT    410 Universal Drive N    North Haven    CT    06473    USA    (203)889-4703    EASTUS    REGION 5    02/25/11    12/31/24    6,397    4,893    1,504

21

    1244    1244 GREENWOOD, IN    2117 Independence Drive (Summerfield Commons)    Greenwood    IN    46143    USA    (317)522-0076    EASTUS    REGION 28    05/26/11    08/31/26    5,800    4,650    1,150

22

    1254    1254 CHAMPAIGN, IL    301 W. Marketview Drive    Champaign    IL    61822    USA    (217)903-5632    EASTUS    REGION 8    09/19/11    08/31/26    7,091    5,861    1,230

23

    1285    1285 ARLINGTON, TX    808 Interstate 20 Frontage Road    Arlington    TX    76017    USA    (817)789-6160    WESTUS    REGION 11    04/17/13    08/31/28    7,841    6,240    1,601

24

    1290    1290 LAS VEGAS, NV    4588 North Rancho Drive, Suites 1-6 (Rancho Pines Shopping Center)    Las Vegas    NV    89130    USA    (702)802-0873    WESTUS    REGION 14    06/26/13    08/31/27    6,000    4,511    1,489

25

    1293    1293 STATEN ISLAND, NY    2040 Forest Ave (Forest Plaza)    Staten Island    NY    10303    USA    (917)426-0580    EASTUS    REGION 26    02/14/13    06/30/29    7,070    5,569    1,501

26

    1295    1295 CRYSTAL LAKE, IL    4500 US Highway 14    Crystal Lake    IL    60014    USA    (815)219-4832    EASTUS    REGION 8    07/27/13    09/30/25    6,347    4,826    1,521

27

    1310    1310 WOODBRIDGE, NJ    503-507 King Georges Road    Woodbridge    NJ    07095    USA    (908)259-4170    EASTUS    REGION 26    10/28/13    01/31/29    6,450    4,949    1,501

28

    1311    1311 WOODBURY, NJ    1450 Clemments Bride Road, Suite 16 & 17 (The Plaza at Deptford)    Woodbury    NJ    08096    USA    (856)291-6500    EASTUS    REGION 22    10/02/13    01/31/26    7,000    5,499    1,501

29

    1314    1314 FAIRFIELD, CA    1595 Holiday Lane, Suite B-4 (Holiday Galleria)    Fairfield    CA    94534    USA    (707)439-8500    WESTUS    REGION 19    05/19/14    11/30/24    6,430    4,938    1,492

30

    1316    1316 LAFAYETTE, IN    4315 Commerce Drive    Lafayette    IN    47905    USA    (765)588-3554    EASTUS    REGION 28    12/24/13    03/31/25    8,000    6,499    1,501

31

    1317    1317 REYNOLDSBURG, OH    2736 Brice Road (Brice Park Shopping Center)    Reynoldsburg    OH    43068    USA    (614)285-3101    EASTUS    REGION 28    07/13/14    07/31/29    7,200    5,705    1,495

32

    1318    1318 ROSWELL, GA    593 Holcomb Bridge Road, Suite 593    Roswell    GA    30009    USA    (404)692-4483    SOUTHUS    REGION 6    12/21/13    01/31/33    5,466    4,070    1,396

33

    1319    1319 CINCINNATI, OH    454 Ohio Pike, Unit No. 58 (Cherry Grove Plaza)    Cincinnati    OH    45255    USA    (513)823-2544    EASTUS    REGION 28    04/14/14    01/31/25    6,035    4,565    1,470

34

    1324    1324 SANTEE, CA    240-102 Town Center Parkway (Santee Town Center)    Santee    CA    92071    USA    (619)363-7661    WESTUS    REGION 14    10/10/15    12/31/25    6,081    4,576    1,505

35

    1325    1325 WATERBURY, CT    1012 Wolcott Street    Waterbury    CT    06705    USA    (203)721-6145    EASTUS    REGION 26    07/12/14    09/30/26    6,500    5,015    1,485

36

    1335    1335 FLORIDA CITY, FL    33550 S. Dixie Hwy (Florida City Centre    Florida City    FL    33034    USA    (786)838-0638    SOUTHUS    REGION 10    04/18/14    08/31/26    7,034    5,464    1,570

37

    1341    1341 LEOMINSTER, MA    489-493 North Main Street (WaterTower Plaza)    Leominster    MA    01453    USA    (978)751-3745    EASTUS    REGION 1    06/16/14    08/31/29    7,967    6,186    1,781

38

    1344    1344 PHILADELPHIA, PA    1530 South Columbus Blvd.    S. Philadelphia    PA    19147    USA    (267)314-7030    EASTUS    REGION 22    11/14/14    12/31/24    6,235    4,743    1,492

39

    1345    1345 LUTHERVILLE TIMONIUM, M2D153    2153 York Road (Timonium Sq.)    Timonium    MD    21093    USA    (443)846-0430    EASTUS    REGION 3    07/25/14    12/31/27    7,500    5,986    1,514

40

    1350    1350 MILFORD, CT    1389 Boston Post Road (Milford Crossing)    Milford    CT    06460    USA    (203)693-4022    EASTUS    REGION 5    04/24/15    05/31/25    5,587    3,999    1,588

41

    1352    1352 TORRANCE, CA    1431 W. Knox Street, Suite 200 (The Shops at South Bay)    Torrance    CA    90501    USA    (424)271-0014    WESTUS    REGION 14    10/14/14    02/28/25    5,175    3,488    1,687

42

    1355    1355 SOUTH ELGIN, IL    356 Randall Road (Shops at South Elgin/Shops at Randall Road)    South Elgin    IL    60177    USA    (847)481-6987    EASTUS    REGION 8    06/10/15    08/31/27    8,400    6,928    1,472

43

    1359    1359 FORT WORTH, TX    425 Sherry Lane (Westover Village Shopping Center)    Ft. Worth    TX    76114    USA    (682)207-6770    WESTUS    REGION 11    06/11/15    09/30/27    7,500    5,980    1,520

44

    1363    1363 DENTON, TX    2311 Colorado Blvd. (Colorado Square)    Denton    TX    76205    USA    (940)312-1292    WESTUS    REGION 11    08/28/15    10/31/25    7,168    5,625    1,543

45

    1366    1366 KATY, TX    455 Katy Fort Bend Road (Mission at Katy Mills Center)    Katy    TX    77494    USA    (281)819-2900    WESTUS    REGION 24    11/21/15    02/28/26    7,500    5,917    1,583

46

    1372    1372 FAIRLESS HILLS, PA    146 Lincoln Hwy.    Fairless Hills    PA    19030    USA    (267)281-6360    EASTUS    REGION 22    11/04/15    06/30/26    8,045    6,550    1,495

47

    1376    1376 TAMPA, FL    8444 West Hillsborough Avenue (Ross Plaza)    Tampa    FL    33615    USA    (813)867-2760    SOUTHUS    REGION 12    08/27/16    11/30/25    7,000    5,816    1,184

48

    1379    1379 OLYMPIA, WA    1520 Cooper Point Road SW, Suite 250 (Cooper Point Pavilion)    Olympia    WA    98502    USA    (360)529-4481    WESTUS    REGION 30    11/17/16    11/30/28    7,181    5,980    1,201

49

    1385    1385 GAINESVILLE, FL    2607 NW 13th Street (Gainesville Plaza)    Gainesville    FL    32601    USA    (352)340-2433    SOUTHUS    REGION 12    12/01/17    03/31/27    9,677    8,345    1,332

50

    1386    1386 RIVERDALE, UT    4040 Riverdale Road, Suite A-1    Riverdale    UT    84405    USA    (385)205-8034    WESTUS    REGION 15    12/01/17    01/31/28    8,000    6,598    1,402

51

    1388    1388 MESA, AZ    1845 S. Power Road    Mesa    AZ    85206    USA    (480)207-2516    WESTUS    REGION 27    09/01/17    06/30/29    7,988    6,656    1,332

52

    1389    1389 SALINAS, CA    1043 N. Main Street    Salinas    CA    93906    USA    (831)269-3995    WESTUS    REGION 19    01/26/18    04/30/28    7,038    5,711    1,327

53

    1393    1393 Loveland, CO    2985 North Garfield Avenue    Loveland    CO    80538    USA    (970)624-0126    WESTUS    REGION 27    02/23/18    04/30/28    8,034    6,678    1,356

54

    1394    1394 LAKE CHARLES, LA    3415 Derek Drive (Lake Charles Power Center)    Lake Charles    LA    70607    USA    (337)214-2963    SOUTHUS    REGION 16    04/27/18    07/31/28    9,930    8,358    1,572

55

    1396    1396 KILLEEN, TX    1101 South Fort Hood Street, Suite 300 (Wendland Plaza)    Killeen    TX    76541    USA    (254)242-3384    WESTUS    REGION 24    03/16/18    05/31/25    5,884    4,400    1,484

56

    1398    1398 SAINT CLOUD, MN    3320 Division Street West (Division Street Plaza)    St. Cloud    MN    56301    USA    (320)227-4667    SOUTHUS    REGION 17    05/18/18    06/30/25    8,004    6,452    1,552

57

    1401    1401 ELK GROVE, CA    8777 Elk Grove Boulevard (Elk Grove Shopping Center)    Elk Grove    CA    95624    USA    (916)226-1746    WESTUS    REGION 19    05/25/18    09/30/26    8,927    7,595    1,332

58

    1405    1405 New Hartford, NY    8619 Clinton Street (The Orchard Shopping Center)    New Hartford    NY    13413    USA    (315)756-0096    EASTUS    REGION 4    06/29/18    11/30/25    6,000    4,616    1,384

59

    1408    1408 THORNTON, CO    930 East 104th Avenue    Thornton    CO    80233    USA    (303)552-3028    WESTUS    REGION 27    08/28/19    07/31/29    10,855    5,078    5,777

60

    1410    1410 Woodbridge, VA    14516 Potomac Mills Road (Festival at Manassas Center)    Woodbridge    VA    22192    USA    (571)343-4000    EASTUS    REGION 20    10/12/18    10/31/28    7,160    5,814    1,346

61

    1412    1412 S SAN ANTONIO, TX    3142 SE Military Drive, Ste 116 (City Base Landing)    San Antonio #2    TX    78223    USA    (210)504-3000    WESTUS    REGION 24    11/09/18    10/31/25    8,100    6,732    1,368

62

    1413    1413 KANSAS CITY, MO    2618 NE Vivion Road    Kansas Ciity (North)    MO    64119    USA    (816)548-1724    SOUTHUS    REGION 9    05/03/19    03/31/29    6,500    5,086    1,414

63

    1417    1417 CHESTERFIELD, MO    17724-17726 Chesterfield Airport Road    Chesterfield    MO    63005    USA    (636)237-6115    SOUTHUS    REGION 9    03/22/19    06/30/26    4,520    2,807    1,713

64

    1419    1419 PARKERSBURG, WV    2838 Pike Street, Suite 1A and 2    Parkersburg    WV    26101    USA    (681)315-4007    EASTUS    REGION 23    05/17/19    06/30/29    6,430    5,014    1,416

65

    1423    1423 KENTWOOD, MI    4260 28th Street SE Kentwood (Kentwood Towne Center)    Kentwood    Mi    49512    USA    (616)226-1042    EASTUS    REGION 7    12/06/19    01/31/29    8,400    5,691    2,709

66

    1424    1424 SOLON, OH    6025 Kruse Drive, Suite 141 (Uptown Solon Center)    Solon    OH    44139    USA    (440)769-0808    EASTUS    REGION 4    05/29/20    07/31/25    8,000    5,325    2,675

67

    1426    1426 BLOOMINGTON, IL    1701 N Empire Street, Suite 305-310    Bloomington    IL    61704    USA    (309)834-1752    EASTUS    REGION 8    08/14/20    10/31/27    6,651    5,440    1,211

68

    1427    1427 College Station, TX    1128 Harvey Road    College Station    TX    77840    USA    (979)633-4613    WESTUS    REGION 24    05/29/20    07/31/27    6,435    5,022    1,413

69

    1428    1428 Albany, OR    1241 Clay Street SE    Albany    OR    97322    USA    (541)801-3008    WESTUS    REGION 15    06/26/20    07/31/27    7,219    5,678    1,541

70

    1430    1430 Clarksville, TN    115 Terminal Road    Clarksville    TN    37040    USA    (931)354-1430    SOUTHUS    REGION 10    11/20/20    10/31/25    12,272    10,854    1,418

71

    1431    1431 MEDFORD, NY    700-47 E Patchogue Yaphank Road    Medford    NY    11763    USA    (631)618-4074    EASTUS    REGION 5    05/03/21    01/31/28    10,121    8,472    1,649

 

Hilco Merchant Resources, LLC    Page 1    8/5/2024

LL Flooring, LLC

Exhibit A

 

Store List

 

Count

   

Loc #

   

Name

   

Address

   

City

   

State

   

Zip

   

Country

   

Phone

   

District

   

Region

   

Open
Date

   

Lease
End
Date

   

Gross
Sq.
Ft.

   

WH
Sq Ft

   

Selling
Sq. Ft.

72

    1433    1433 FRANKLIN, TN    209 S. Royal Oaks Blvd. (Watson Glen Shoping Center)    Franklin    TN    37064    USA    (615)544-4501    SOUTHUS    REGION 10    03/26/21    04/30/26    6,467    5,102    1,365

73

    1434    1434 Exton, PA    213 W. Lincoln Highway (Whiteland Town Center)    Exton    PA    19341    USA    (484)713-9091    EASTUS    REGION 22    04/21/21    06/30/26    5,845    4,346    1,499

74

    1435    1435 HOUSTON Galleria, TX    8366 Westheimer Road    Houston    TX    77063    USA    (832)696-0283    WESTUS    REGION 24    09/03/21    05/31/26    2,013    474    1,539

75

    1436    1436 CLEARWATER, FL    2613 Gulf to Bay Blvd    Clearwater    FL    33759    USA    (727)330-2746    SOUTHUS    REGION 12    07/16/21    10/31/26    2,000    611    1,389

76

    1437    1437 VISALIA, CA    3725 S. Mooney Boulevard (Gateway Plaza)    Visalia    CA    93277    USA    (559)931-0491    WESTUS    REGION 25    11/29/21    11/30/28    10,300    8,891    1,409

77

    1440    1440 Hattiesburg, MS    4700 Hardy Street    Hattiesburg    MS    39402    USA    (601)255-8005    SOUTHUS    REGION 16    06/28/21    08/31/26    7,574    6,170    1,404

78

    1441    1441 BECKLEY, WV    1020 N. Eisenhower Drive (Cranberry Creek Shopping Center)    Beckley    WV    25801    USA    (304)712-3340    EASTUS    REGION 20    06/28/21    08/31/26    8,450    7,046    1,404

79

    1442    1442 Jackson, TN    1241 Vann Drive    Jackson    TN    38305    USA    (731)249-0073    SOUTHUS    REGION 16    09/15/21    10/31/26    5,500    4,062    1,438

80

    1444    1444 Muncie, IN    1515 W McGalliard Road (Northwest Plaza)    Muncie    IN    47304    USA    (765)400-2494    EASTUS    REGION 28    01/10/22    03/31/27    8,275    6,860    1,415

81

    1445    1445 Framingham, MA    235 Old Connecticut Path    Framingham    MA    01701    USA    (508)202-4157    EASTUS    REGION 1    02/14/22    02/28/29    6,560    5,001    1,559

82

    1446    1446 Mount Holly, NJ    531 High Street    Mt. Holly    NJ    08060    USA    (609)534-2640    EASTUS    REGION 22    04/25/22    03/31/27    9,602    8,182    1,420

83

    1447    1447 Yakima, WA    2319 S. First Street, Suite 101    Yakima    WA    98903    USA    (509)408-1449    WESTUS    REGION 30    12/06/21    01/31/32    11,015    9,533    1,482

84

    1449    1449 Burlington, NC    1807-1809 S. Church Street (Grove Park Plaza)    Burlington    NC    27215    USA    (336)270-2748    SOUTHUS    REGION 2    03/28/22    06/30/32    7,915    6,220    1,695

85

    1450    1450 SAINT AUGUSTINE, FL    330 CBL Dr.    St. Augustine    FL    32086    USA    (904)342-6006    SOUTHUS    REGION 12    03/21/22    04/30/27    9,000    7,596    1,404

86

    1451    1451 MENOMONEE FALLS, WI    N81W15086 Appleton Ave    Menomonee Falls    WI    53051    USA    (262)257-9412    SOUTHUS    REGION 17    01/31/22    06/30/33    8,569    7,181    1,388

87

    1453    1453 Bellingham, WA    145 E Stuart Rd.    Bellingham    WA    28226    USA    (360)483-0303    WESTUS    REGION 30    11/07/22    12/31/27    7,522    6,118    1,404

88

    1454    1454 Cumming, GA    580 Atlanta Road, Suite 203B    Cumming    GA    30040    USA    (770)881-8187    SOUTHUS    REGION 6    06/13/22    07/31/27    5,980    4,576    1,404

89

    1455    1455 Tuscaloosa, AL    3305 Mcfarland Blvd    Tuscaloosa    AL    35405    USA    (205)614-5625    SOUTHUS    REGION 6    03/28/22    05/31/27    6,200    4,796    1,404

90

    1458    1458 Battle Creek, MI    5700 Beckley Rd. Suite 14    Battle Creek    Mi    49015    USA    (269)249-1993    EASTUS    REGION 7    06/13/22    07/31/27    8,036    6,552    1,484

91

    1459    1459 Joplin, MO    732 Rangeline, Northtown Center    Joplin    MO    64801    USA    (417)691-8599    SOUTHUS    REGION 9    12/05/22    12/31/27    7,004    5,639    1,365

92

    1460    1460 Prescott Valley, AZ    6689 E 1st Street    Prescott Valley    AZ    86314    USA    (928)582-5500    WESTUS    REGION 27    09/19/22    12/31/32    11,560    10,156    1,404

93

    1462    1462 MUNDELEIN, IL    3080 W. Route 60    Mundelein    IL    60060    USA    (224)499-7024    EASTUS    REGION 8    10/27/22    11/30/32    6,789    5,385    1,404

94

    1463    1463 Abilene, TX    4127 S. Danville Drive    Abilene    TX    79605    USA    (325)244-0899    WESTUS    REGION 11    09/22/22    10/31/27    6,027    4,630    1,397
                                      

 

   

 

   

 

   94                                  Average Sq. Ft.    7,315    5,837    1,479

 

Hilco Merchant Resources, LLC    Page 2    8/5/2024

EXHIBIT B

Expense Budget

 

16

LL Flooring, LLC

Exhibit B

 

Expense Budget

 

     1st Week      Each Subsequent
Week		  

Advertising

      

Digital & Media

      22,400        22,400  

Signs (1)

      76,637        —   

Sign Walkers

      67,561        67,561  
  

 

 

     

 

 

  

Subtotal Advertising

      166,598        89,961  

Supervision

      

Fees / Wages / Expenses (2)

      232,100        169,700  
  

 

 

     

 

 

  

Subtotal Supervision

      232,100        169,700  

Miscellaneous

      

Miscellaneous /Legal (3)

      50,000        —   
  

 

 

     

 

 

  

Subtotal Miscellaneous

      50,000        —   
  

 

 

     

 

 

  

Total Expenses

      448,699        259,661  
  

 

 

     

 

 

  

Notes:

 

1. Includes Sales Tax.

2. Includes Deferred Compensation and Insurance.

3. Any legal expenses associated with issues raised by or disputes with landlords, including (without limitation) negotiations in respect of landlord side letters, shall be in addition to and not part of the budgeted legal expenses.

 

Hilco Merchant Resources, LLC       8/2/2024