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and Final Orders (I) Authorizing the Debtors to Obtain Postpetition Financing, (ii) Authorizing 

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the Debtors to Use Cash Collateral, (iii) Granting Liens and Providing Superpriority 

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Corporation, in Support of the Debtors’ Emergency Motion for Entry of Interim and Final 

Orders (I) Authorizing the Debtors to Obtain Postpetition Financing, (ii) Authorizing the 

Debtors to Use Cash Collateral, (iii) Granting Liens and Providing Superpriority Administrative 

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Declaration of James A. Mesterharm, Chief Restructuring Officer of The Gymboree 

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the Prepetition Lenders, (V) Modifying Automatic Stay, (VI) Scheduling a Final Hearing, and 

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Case 17-32986-KLP Doc 384 Filed 07/11/17 Entered 07/11/17 15:26:50 Desc Main

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/s/ Keith L. Phillips

Entered on Docket: Jul 11 2017

Case 17-32986-KLP Doc 384 Filed 07/11/17 Entered 07/11/17 15:26:50 Desc Main

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Case 17-32986-KLP Doc 384 Filed 07/11/17 Entered 07/11/17 15:26:50 Desc Main

Document Page 91 of 101
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Case 17-32986-KLP Doc 384 Filed 07/11/17 Entered 07/11/17 15:26:50 Desc Main

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SCHEDULE 1 

Budget 

Case 17-32986-KLP Doc 384 Filed 07/11/17 Entered 07/11/17 15:26:50 Desc Main

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1

Weekly Cash Flow Forecast (1 of 2)

(USD '000) 1 2 3 4 5 6 7 8 9 10 11 12 13 13 WK Total WK 14Ͳ26 Grand Total

06/17 06/24 07/01 07/08 07/15 07/22 07/29 08/05 08/12 08/19 08/26 09/02 09/09 06/17 to 09/09 09/16 to 12/09 06/17 to 12/09

Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst

13 Week Cash FlowͲSummary

Collections & Disbursements:

COLLECTIONS:

Stores and EͲCommerce 15,240 $ 15,240 $ 16,567 $ 19,296 $ 16,070 $ 16,417 $ 19,419 $ 22,272 $ 24,208 $ 25,283 $ 23,906 $ 21,654 $ 24,185 $ 259,755 $ 263,433 $ 523,188 $

Other 452 2,418 2,095 441 1,569 869 807 329 2,880 939 697 579 3,591 17,665 20,154 37,819

15,691 17,657 18,663 19,736 17,640 17,285 20,226 22,600 27,088 26,221 24,603 22,232 27,776 277,420 283,587 561,007

OPERATING DISBURSEMENTS:

Merchandise 12,317 2,537 9,908 11,236 6,254 15,183 14,029 15,060 13,928 7,042 9,970 10,826 10,322 138,612 121,866 260,478

Payroll & Related 8,583 762 8,583 1,248 8,956 723 9,245 723 9,106 723 10,006 723 9,106 68,486 51,438 119,924

Other Accounts Payable Ͳ 1,699 5,579 3,821 5,482 3,330 3,245 3,754 3,753 3,722 4,920 3,461 3,234 46,000 51,565 97,565

RentͲInc. Stores, HQ, & DC Ͳ  Ͳ 12,410 800  Ͳ  Ͳ 13,114 800  Ͳ  Ͳ 11,588 800  Ͳ 39,512 29,254 68,766

Sales Taxes Ͳ 3,082 411 558  Ͳ 2,792 372 636  Ͳ  Ͳ 3,179 424 760 12,215 13,572 25,787

Other Taxes 84 252  Ͳ  Ͳ 93 279  Ͳ  Ͳ 93 279  Ͳ  Ͳ 93 1,174 1,024 2,198

20,984 8,333 36,891 17,663 20,785 22,307 40,006 20,973 26,880 11,766 39,663 16,234 23,515 305,999 268,720 574,719

NONͲOPERATING DISBURSEMENTS:

Principal, Interest, Bank Fees 6,200  Ͳ 561  Ͳ  Ͳ  Ͳ  Ͳ 1,547  Ͳ  Ͳ  Ͳ 1,315  Ͳ 9,623 4,679 14,302

Restructuring Professional Fees Ͳ 560  Ͳ  Ͳ  Ͳ 4,577  Ͳ 320  Ͳ 4,534  Ͳ  Ͳ  Ͳ 9,992 17,450 27,442

6,200 560 561  Ͳ  Ͳ 4,577  Ͳ 1,867  Ͳ 4,534  Ͳ 1,315  Ͳ 19,615 22,129 41,744

NET CASH FLOW (11,493) $ 8,765 $ (18,790) $ 2,073 $ (3,146) $ (9,599) $ (19,780) $ (240) $ 208 $ 9,921 $ (15,059) $ 4,683 $ 4,261 $ (48,194) $ (7,262) $ (55,456) $

Ending Cash Balances:

Unrestricted Book Cash Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $

Outstanding Checks Ͳ 1,360 5,550 7,497 10,384 10,971 11,373 12,101 12,683 13,124 14,435 14,317 14,041 14,041 14,707 14,707

Unrestricted BANK Cash Ͳ 1,360 5,550 7,497 10,384 10,971 11,373 12,101 12,683 13,124 14,435 14,317 14,041 14,041 14,707 14,707

Restricted Cash & 2nd Lien DIP TL Cash 17,579 8,687 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Total BANK Cash 17,579 $ 10,046 $ 6,550 $ 8,497 $ 11,384 $ 11,971 $ 12,373 $ 13,101 $ 13,683 $ 14,124 $ 15,435 $ 15,317 $ 15,041 $ 15,041 $ 15,707 $ 15,707 $

Borrowing Base, ABL, & Availability:

Effective BB Cert. 172,207 $ 179,109 $ 186,952 $ 190,328 $ 187,333 $ 189,155 $ 192,232 $ 192,930 $ 188,522 $ 187,067 $ 186,189 $ 209,168 $ 215,777 $ 215,777 $ 202,357 $ 202,357 $

Less: Outstanding ABL (68,534) (50,876) (55,263) (53,190) (56,336) (65,935) (85,715) (85,954) (85,746) (75,825) (90,884) (86,201) (81,940) (81,940) (74,201) (74,201)

Less: Letters of Credit (50,037) (51,984) (51,209) (50,648) (50,883) (50,922) (51,157) (50,768) (50,768) (50,963) (51,157) (51,190) (51,138) (51,138) (51,157) (51,157)

Less: Min Avail Cash (22,066) (22,756) (23,540) (23,878) (23,578) (23,761) (24,068) (24,138) (23,697) (23,552) (23,464) (25,762) (26,423) (26,423) (25,081) (25,081)

Less: Prof. Fee Carve Out (5,657) (6,496) (7,815) (9,084) (10,352) (7,319) (8,587) (9,536) (10,678) (7,403) (8,546) (9,688) (10,847) (10,847) (12,900) (12,900)

ABL AvailabilityͲEnding 25,914 46,997 49,125 53,528 46,183 41,219 22,704 22,534 17,633 29,324 12,138 36,327 45,429 45,429 39,018 39,018

2nd Lien DIP TL – Ending Availability 21,716 21,716 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000  Ͳ  Ͳ

Ending PostͲPetition Availability 47,629 $ 68,713 $ 64,125 $ 68,528 $ 61,183 $ 56,219 $ 37,704 $ 37,534 $ 32,633 $ 44,324 $ 27,138 $ 51,327 $ 60,429 $ 60,429 $ 39,018 $ 39,018 $

Memo: Ending DIPͲTL Balance 13,284 $ 13,284 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 35,000 $ 35,000 $

Weekly Covenant Tests

Collections* 15,691 $ 17,657 $ 18,663 $ 19,736 $ 17,640 $ 17,285 $ 20,226 $ 22,600 $ 27,088 $ 26,221 $ 24,603 $ 22,232 $ 27,776 $ 277,420 $ 283,587 $ 561,007 $

Operating Disbursements 20,984 8,333 36,891 17,663 20,785 22,307 40,006 20,973 26,880 11,766 39,663 16,234 23,515 305,999 268,720 574,719

Ending Inventory** 189,430 197,342 197,543 194,699 196,634 199,810 200,646 196,432 195,153 194,457 194,889 201,028 206,108 206,108 186,386 186,386

Credit Extensions 167,021 $ 151,310 $ 154,922 $ 152,288 $ 155,669 $ 165,307 $ 185,322 $ 185,172 $ 184,964 $ 175,238 $ 190,492 $ 185,841 $ 181,528 $ 181,528 $ 173,809 $ 173,809 $

*Currently there are no Stores subject to Specified Store Closing Sales.

**Represents Gross OnͲHand Inventory per the forecasted Borrowing Base

Case 17-32986-KLP Doc 384 Filed 07/11/17 Entered 07/11/17 15:26:50 Desc Main

Document Page 94 of 101
2

Weekly Cash Flow Forecast (2 of 2)

(USD '000) 14 15 16 17 18 19 20 21 22 23 24 25 26 13 WK Total WK 14Ͳ26 Grand Total

09/16 09/23 09/30 10/07 10/14 10/21 10/28 11/04 11/11 11/18 11/25 12/02 12/09 06/17 to 09/09 09/16 to 12/09 06/17 to 12/09

Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst Fcst

13 Week Cash FlowͲSummary

Collections & Disbursements:COLLECTIONS:

Stores and EͲCommerce 17,826 $ 13,112 $ 16,249 $ 17,145 $ 16,864 $ 17,151 $ 18,599 $ 17,924 $ 21,103 $ 24,626 $ 29,839 $ 33,958 $ 19,039 $ 259,755 $ 263,433 $ 523,188 $

Other 2,231 413 1,005 3,162 763 790 1,280 273 3,994 637 647 576 4,384 17,665 20,154 37,819

20,057 13,525 17,255 20,306 17,626 17,941 19,878 18,197 25,097 25,263 30,486 34,534 23,423 277,420 283,587 561,007

OPERATING DISBURSEMENTS:

Merchandise 6,994 9,373 10,969 10,669 16,145 17,586 7,723 4,947 6,593 5,164 6,779 11,790 7,133 138,612 121,866 260,478

Payroll & Related 723 9,106 1,560 7,480 723 7,238 723 7,238 723 7,238 723 7,238 723 68,486 51,438 119,924

Other Accounts Payable 3,544 3,325 3,515 3,882 3,791 4,113 4,347 5,273 3,891 4,154 4,323 3,895 3,513 46,000 51,565 97,565

RentͲInc. Stores, HQ, & DC Ͳ 8,951 800  Ͳ  Ͳ 8,951 800  Ͳ  Ͳ  Ͳ 9,751  Ͳ  Ͳ 39,512 29,254 68,766

Sales Taxes Ͳ 3,798 506 617  Ͳ 3,085 411 616  Ͳ  Ͳ 3,080 584 876 12,215 13,572 25,787

Other Taxes 279  Ͳ  Ͳ  Ͳ 93 279  Ͳ  Ͳ  Ͳ 93 279  Ͳ  Ͳ 1,174 1,024 2,198

11,540 34,553 17,351 22,647 20,752 41,252 14,004 18,074 11,208 16,650 24,937 23,507 12,245 305,999 268,720 574,719

NONͲOPERATING DISBURSEMENTS:

Principal, Interest, Bank Fees Ͳ  Ͳ 1,447  Ͳ  Ͳ  Ͳ  Ͳ 1,694  Ͳ  Ͳ  Ͳ 1,537  Ͳ 9,623 4,679 14,302

Restructuring Professional Fees 4,032  Ͳ 20  Ͳ 4,120  Ͳ 1,001  Ͳ 4,181  Ͳ  Ͳ  Ͳ 4,096 9,992 17,450 27,442

4,032  Ͳ 1,467  Ͳ 4,120  Ͳ 1,001 1,694 4,181  Ͳ  Ͳ 1,537 4,096 19,615 22,129 41,744

NET CASH FLOW 4,484 $ (21,029) $ (1,563) $ (2,341) $ (7,245) $ (23,312) $ 4,873 $ (1,571) $ 9,707 $ 8,613 $ 5,550 $ 9,490 $ 7,082 $ (48,194) $ (7,262) $ (55,456) $

Ending Cash Balances:

Unrestricted Book Cash Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $ Ͳ $

Outstanding Checks 14,068 13,914 13,943 14,260 14,440 14,842 15,351 14,437 12,830 11,889 21,100 17,496 14,707 14,041 14,707 14,707

Unrestricted BANK Cash 14,068 13,914 13,943 14,260 14,440 14,842 15,351 14,437 12,830 11,889 21,100 17,496 14,707 14,041 14,707 14,707

Restricted Cash & 2nd Lien DIP TL Cash 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Total BANK Cash 15,068 $ 14,914 $ 14,943 $ 15,260 $ 15,440 $ 15,842 $ 16,351 $ 15,437 $ 13,830 $ 12,889 $ 22,100 $ 18,496 $ 15,707 $ 15,041 $ 15,707 $ 15,707 $

Borrowing Base, ABL, & Availability:

Effective BB Cert. 221,176 $ 218,416 $ 217,356 $ 216,575 $ 213,546 $ 212,296 $ 216,634 $ 213,658 $ 214,265 $ 224,961 $ 219,367 $ 210,520 $ 202,357 $ 215,777 $ 202,357 $ 202,357 $

Less: Outstanding ABL (77,455) (98,484) (100,047) (102,389) (109,634) (117,946) (113,072) (114,644) (104,936) (96,323) (90,774) (81,283) (74,201) (81,940) (74,201) (74,201)

Less: Letters of Credit (51,092) (51,125) (51,157) (51,157) (51,157) (51,157) (51,157) (51,157) (51,157) (51,157) (51,157) (51,157) (51,157) (51,138) (51,157) (51,157)

Less: Min Avail Cash (26,963) (26,687) (26,581) (26,502) (26,200) (26,075) (26,508) (26,211) (26,272) (27,341) (26,782) (25,897) (25,081) (26,423) (25,081) (25,081)

Less: Prof. Fee Carve Out (8,090) (9,249) (10,407) (11,566) (8,745) (9,904) (11,062) (12,221) (10,279) (11,438) (13,598) (14,756) (12,900) (10,847) (12,900) (12,900)

ABL AvailabilityͲEnding 57,576 32,872 29,163 24,960 17,810 7,215 14,834 9,425 21,621 38,701 37,057 37,426 39,018 45,429 39,018 39,018

2nd Lien DIP TL – Ending Availability 15,000 15,000 15,000 15,000 15,000  Ͳ  Ͳ  Ͳ  Ͳ  Ͳ  Ͳ  Ͳ  Ͳ 15,000  Ͳ  Ͳ

Ending PostͲPetition Availability 72,576 $ 47,872 $ 44,163 $ 39,960 $ 32,810 $ 7,215 $ 14,834 $ 9,425 $ 21,621 $ 38,701 $ 37,057 $ 37,426 $ 39,018 $ 60,429 $ 39,018 $ 39,018 $

Memo: Ending DIPͲTL Balance 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 20,000 $ 35,000 $ 35,000 $

Weekly Covenant Tests

Collections* 20,057 $ 13,525 $ 17,255 $ 20,306 $ 17,626 $ 17,941 $ 19,878 $ 18,197 $ 25,097 $ 25,263 $ 30,486 $ 34,534 $ 23,423 $ 277,420 $ 283,587 $ 561,007 $

Operating Disbursements 11,540 34,553 17,351 22,647 20,752 41,252 14,004 18,074 11,208 16,650 24,937 23,507 12,245 305,999 268,720 574,719

Ending Inventory** 203,758 202,885 202,285 199,658 198,642 202,690 200,138 200,821 210,665 205,775 197,968 190,830 186,386 206,108 186,386 186,386

Credit Extensions 176,998 $ 198,059 $ 199,655 $ 201,996 $ 209,241 $ 217,553 $ 212,680 $ 214,251 $ 204,544 $ 195,931 $ 190,381 $ 180,891 $ 173,809 $ 181,528 $ 173,809 $ 173,809 $

*Currently there are no Stores subject to Specified Store Closing Sales.

**Represents Gross OnͲHand Inventory per the forecasted Borrowing Base

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3

Summary of Covenant Compliance for Cash Flow Related Items

The Gymboree CorporationCovenant TestingWeek Ending xx/xx/xxxx($'s in Millions)

# Title Period Tested % Budget Test Level Actual 06/17 06/24 07/01 07/08 06/17 06/24 07/01 07/08

IIII

$ %

1) -10%2) +10%3) -15%4) Balance +10%

(i) ABL RC drawn(ii) LC outstandings(iii) ABL TL drawn

5) Capital 

Expenditures*

Cumulative Fiscal Month

0%

Page & Section References of Tests in Credit Agreements Budget Definitions

ABL Term Loan Test I Initial Approved Budget Delivered on 06/09/17

1) 5.18b(ii) - Pg 116 Budget Event def. - Pg 4 Collections II [Future Budget]

2) 5.18b(iii) - Pg 116 Budget Event def. - Pg 4 Operating Disbursements III [Future Budget]

3) 5.18b(i) - Pg 116 N/A Ending Inventory IV [Future Budget]4) 4.02b - Pg 103 4.02h - Pg 43 Credit Extensions

V [Future Budget]

5) N/A 7.15 - Pg 67 Capital Expenditures**Tested on an accounting basis following monthly accounting close

Total/

Test

Cash Flow Tests Supporting Details

Better/ (Worse) Pass/

Fail

Test Details Budget w/Version Total/

Test

Actuals

Cushion vs. Test

Variance: Actuals vs. Test Thresholds

Collections Cumulative

4-week

OperatingDisbursementsEnding Inventory Balance Credit Extensions

Cumulative4-week

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Capital Expenditure Budget

The Gymboree CorporationMonthly Capital Expenditure Budget

5 6 7 8 9 10 11

US$000's P5-17 P6-17 P7-17 P8-17 P9-17 P10-17 P11-17 Total

Jun Jul Aug Sep Oct Nov Dec 7 months

07/01 07/29 08/26 09/30 10/28 11/25 12/30

Total Capital Expenditures 3,214 $ 1,245 $ 2,143 $ 1,160 $ 1,383 $ 2,129 $ 1,735 $ 13,008 $

Cumulative Test Threshold 3,214 $ 4,458 $ 6,602 $ 7,762 $ 9,144 $ 11,273 $ 13,008 $

7.15 - Pg 67 Term Loan Credit Agreement Reference:

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SCHEDULE 2 

Case Milestones 

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SCHEDULE 5.19 

Required Milestones 

Each of the following DIP Milestones, Plan Milestones and Sale Milestones, a “Required Milestone” and 

collectively, the “Required Milestones”: 

(a) Achieve each of the following milestones (as any such milestone may be extended with 

the consent of the Administrative Agent and the ABL Term Loan Agent (in their sole and absolute 

discretion) for a period of not more than 10 days or for such longer period with the consent of the 

Administrative Agent, the ABL Term Loan Agent and the Required Lenders (in their sole and absolute 

discretion), collectively, the “DIP Milestones”), in each case on terms and conditions, and subject to 

documentation (including, in all cases, forms of all applicable orders) in form and substance, reasonably 

acceptable to the Administrative Agent and the ABL Term Loan Agent in all respects. 

(i) On the Petition Date, the Debtors shall file a motion seeking approval of the 

credit facilities evidenced by the Agreement and the DIP Term Loan Agreement. 

(ii) On or before 3 Business Days after the Petition Date, the Interim Order shall 

have been entered by the Bankruptcy Court. 

(iii) On or before 10 days after the Petition Date, the Debtors shall have filed a 

motion requesting, and within 35 days after the Petition Date shall have obtained, an order of the 

Bankruptcy Court extending the lease assumption/rejection period such that the lease 

assumption/rejection period shall be 210 days. 

(iv) On or before 35 days after the Petition Date, the Final Order authorizing and 

approving the facilities evidenced by the Agreement and the DIP Term Loan Agreement on a 

final basis shall have been entered by the Bankruptcy Court. 

(b) Achieve each of the following milestones (as any such milestone may be extended with 

the consent of the Administrative Agent and the ABL Term Loan Agent (in their sole and absolute 

discretion) for a period of not more than 10 days or for such longer period with the consent of the 

Administrative Agent, the ABL Term Loan Agent and the Required Lenders (in their sole and absolute 

discretion), collectively, the “Plan Milestones”), in each case on terms and conditions, and subject to 

documentation (including, in all cases, forms of all applicable orders) in form and substance, reasonably 

acceptable to the Administrative Agent and the ABL Term Loan Agent in all respects. 

(i) On or before 5 days after the Petition Date, the Debtors shall have filed a Chapter 

11 plan of reorganization and a disclosure statement relating to such plan of reorganization, 

which plan of reorganization shall be supported by committed financing and the Restructuring 

Support Agreement and shall provide, among other things, for payment in full in cash of the 

Obligations and the Pre-Petition Obligations on the effective date, and the Administrative Agent 

and the ABL Term Loan Agent shall be reasonably satisfied that such plan of reorganization is 

reasonably anticipated to become effective on or prior to the 110th day after the Petition Date 

(any such Chapter 11 plan of reorganization, an “Acceptable Plan”). 

(ii) On or before 55 days after the Petition Date, the Debtors shall have obtained an 

order from the Bankruptcy Court approving the disclosure statement and voting and solicitation 

procedures for an Acceptable Plan, or if such disclosure statement and voting and solicitation 

procedures are not approved by such date, the Debtors shall file on or before 60 days after the 

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Petition Date, a motion to approve a sale of substantially all of the Debtors’ assets (the “Sale”) 

pursuant to Section 363 of the Bankruptcy Code (the “Sale Motion”), and the terms of such Sale 

Motion and related bidding procedures shall be in form and substance reasonably acceptable to 

the Administrative Agent and the ABL Term Loan Agent. 

(iii) On or before 95 days after the Petition Date, either (A) the Debtors shall have 

obtained an order from the Bankruptcy Court confirming an Acceptable Plan or (B) the Debtors 

shall have obtained a stalking horse bid approved by the Administrative Agent and the ABL Term 

Loan Agent for a liquidation on an equity basis of the entire chain of Stores of the Debtors and all 

of the assets relating thereto under Section 363 of the Bankruptcy Code (the “Full Chain 

Liquidation”), which Full Chain Liquidation shall generate sufficient proceeds to repay in full in 

cash all of the Obligations and Pre-Petition Obligations. 

(iv) In the event that the Debtors have met Milestone (b)(iii)(B) above, on or before 

100 days after the Petition Date, the Debtors shall have obtained an order from the Bankruptcy 

Court approving bidding procedures for the Full Chain Liquidation, which bidding procedures 

shall be in form and substance reasonably acceptable to the Administrative Agent and the ABL 

Term Loan Agent. 

(v) In the event that the Debtors have met Milestone (b)(iii)(B), on or before 105 

days after the Petition Date, either (A) the Debtors shall have obtained an order from the 

Bankruptcy Court confirming an Acceptable Plan, which order shall be of immediate effect and 

include a waiver of the 14-day stay provision or (B) the Debtors shall have conducted an auction 

for the Full Chain Liquidation. 

(vi) On or before 110 days after the Petition Date, either (A) the Debtors shall have 

obtained an order of the Bankruptcy Court approving the Full Chain Liquidation or (B) the 

effective date of the Acceptable Plan shall have occurred in accordance with its terms, and the 

Debtors shall have emerged from the Chapter 11 Cases. 

(vii) In the event that the Debtors have met Milestone (b)(vi)(A), on or before 111 

days after the Petition Date, the Debtors shall have commenced the Full Chain Liquidation. 

(c) Achieve each of the following milestones (as any such milestone may be extended with 

the consent of the Administrative Agent and the ABL Term Loan Agent (in their sole and absolute 

discretion) for a period of not more than 10 days or for such longer period with the consent of the 

Administrative Agent, the ABL Term Loan Agent and the Required Lenders (in their sole and absolute 

discretion), collectively, the “Sale Milestones”), in each case on terms and conditions, and subject to 

documentation (including, in all cases, forms of all applicable orders) in form and substance, reasonably 

acceptable to the Administrative Agent and the ABL Term Loan Agent in all respects. 

(i) If the disclosure statement and voting and solicitation procedures for an 

Acceptable Plan are not approved by the date specified in paragraph (b)(ii) above, on or before 60 

days after the Petition Date, the Debtors shall have filed the Sale Motion. 

(ii) If the disclosure statement and voting and solicitation procedures for an 

Acceptable Plan are not approved by the date specified in paragraph (b)(ii) above, on or before 75 

days after the Petition Date, the Bankruptcy Court shall have entered an order approving the 

bidding procedures. 

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(iii) If the disclosure statement and voting and solicitation procedures for an 

Acceptable Plan are not approved by the date specified in paragraph (b)(ii) above, on or before 95 

days after the Petition Date, the Bankruptcy Court shall have entered an order approving the Sale. 

(iv) If the disclosure statement and voting and solicitation procedures for an 

Acceptable Plan are not approved by the date specified in paragraph (b)(ii) above, on or before 

110 days after the Petition Date, the Debtors shall have consummated the Sale. 

(v) On or before July 17, 2017, the Debtors shall have obtained approval from the 

Bankruptcy Court to retain the Specified Liquidation Agent to assist the Debtors in conducting 

the Specified Store Closing Sales. 

(vi) On or before July 18, 2017, the Debtors shall have commenced, and shall 

thereafter continue, the Permitted Store Closing Sales, pursuant to the terms of the Specified 

Liquidation Agreement and any other relevant documentation referred to in the definition of 

Specified Store Closing Sales. 

(vii) On or before September 30, 2017, the Debtors shall have completed the 

Permitted Store Closing Sales, pursuant to the terms of the Specified Liquidation Agreement and 

any other relevant documentation referred to in the definition of Specified Store Closing Sales. 

The Loan Parties shall provide the Administrative Agent and the ABL Term Loan Agent with any 

information or materials reasonably requested by the Administrative Agent and the ABL Term Loan 

Agent in connection with the Loan Parties’ progress on achieving any Required Milestone.

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