Case KG Doc 248 Filed 09/05/18 Page 1 of 6

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1 Case KG Doc 248 Filed 09/05/18 Page 1 of 6 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE x In re HERITAGE HOME GROUP, et al., Debtors. 1 Chapter 11 Case No (KG) Jointly Administered x RE Docket Nos. 13 and 193 NOTICE OF POTENTIAL ASSUMPTION AND ASSIGNMENT OF CERTAIN EXECUTORY CONTRACTS AND UNEXPIRED LEASES IN CONNECTION WITH THE PROPOSED SALE OF DEBTORS ASSETS RELATED TO THE HICKORY CHAIR, PEARSON, MAITLAND-SMITH, AND LA BARGE BRANDS PLEASE TAKE NOTICE OF THE FOLLOWING The above-captioned debtors and debtors in possession (collectively, the Debtors ) each filed a voluntary petition for relief under chapter 11 of title of the United States Code, 11 U.S.C (the Bankruptcy Code ) in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court ) on July 29, 2018 (the Petition Date ). On the Petition Date, the Debtors filed a motion [D.I. 13] (the Sale Motion ) 2 seeking authority, among other things, to sell (the Sale ) substantially all of the Debtors assets related to the Debtors going-concern business of designing, manufacturing, sourcing, licensing, and selling home furnishings under the Hickory Chair, Pearson, Maitland-Smith, and La Barge brands (the Luxury Brands Business or the Acquired Assets ) to Hickory Chair, (the Stalking Horse Bidder ), or other Successful Bidder, free and clear of all liens, claims, encumbrances, and other interests, other than those permitted in the applicable purchase agreement. On August 27, 2018, the Bankruptcy Court entered an order [D.I. 193] (the Bidding Procedures Order ), granting certain of the relief sought in the Motion, including, among other things, approving (i) the Bidding Procedures, which were attached as Exhibit 2 to the Bidding Procedures Order and (ii) procedures for the assumption and assignment of contracts and leases in connection with the Sale (the Assumption and Assignment Procedures ). Upon the closing of the Sale, the Debtors intend to assume and assign to the Stalking Horse Bidder or any other Successful Bidder(s) the Assigned Contracts. A schedule listing the Assigned Contracts (the Assigned Contracts List ) may be accessed free of charge on the website of the Court-appointed claims and noticing agent for the Debtors chapter 11 cases, Kurtzman Carson Consultants, http// (the Case Website ). In addition, the cure payments, if any, necessary for the assumption and assignment of the Assigned Contracts (the Cure Payments ) are set forth on the Assigned Contracts List. YOU ARE RECEIVING THIS NOTICE BECAUSE THE STALKING HORSE BIDDER HAS IDENTIFIED YOU AS A COUNTERPARTY TO A POTENTIAL ASSIGNED CONTRACT. 1 The Debtors in these chapter 11 cases, along with the last four digits of each debtor s tax identification number, as applicable, are (9506); HH Global II B.V. (0165); HH Group Holdings US, Inc. (7206); HHG (3221); and HHG Global Designs (1150). The Debtors corporate headquarters is located at 1925 Eastchester Drive, High Point, North Carolina Capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Sale Motion

2 Case KG Doc 248 Filed 09/05/18 Page 2 of 6 Pursuant to the Assumption and Assignment Procedures, the Stalking Horse Bidder may modify the list of Assigned Contracts until the opening of business on the date of the Auction, and the Debtors reserve the right at any time after the Assumption and Assignment Service Deadline and before the closing of a Sale, to (i) supplement the list of Assigned Contracts with previously omitted executory contracts or unexpired leases; (ii) remove an executory contract or unexpired lease from the list of executory contracts and unexpired leases ultimately selected as Assigned Contracts that the Successful Bidder proposes be assumed and assigned to it in connection with a Sale or add to such list; and/or (iii) modify the previously stated Cure Payment associated with any Assigned Contract. Any counterparty impacted by such a modification will receive notice thereof and an opportunity to object to the proposed assumption and assignment of the Assigned Contract, if applicable. OBTAINING ADDITIONAL INFORMATION Copies of the Bidding Procedures Order, the Bidding Procedures and any other related documents are available free of charge on the Case Website. IMPORTANT DATES AND DEADLINES 1. The deadline to file an objection with the Bankruptcy Court to the entry of an order approving the Sale (the Sale Order ) is 400 p.m. (Eastern Time) on September 17, 2018 (the Sale Objection Deadline ). 2. The Auction for the Acquired Assets, if one is necessary, will commence at 1000 a.m. (Eastern Time) on September 20, 2018, at the offices of Young Conaway Stargatt & Taylor, LLP, 1000 N. King Street, Wilmington, Delaware (or at any other time and location as the Debtors may designate on proper notice). 3. A hearing (the Sale Hearing ) to consider the proposed Sale will be held before the Bankruptcy Court at 1000 a.m. (Eastern Time) on September 26, 2018, or such other date as determined by the Court, at 824 North Market Street, Wilmington, Delaware FILING ASSUMPTION AND ASSIGNMENT OBJECTIONS Pursuant to the Assumption and Assignment Procedures, objections to the proposed assumption and assignment of an Assigned Contract (each Assigned Contract Objection ), including any objection relating to the Cure Payment, must (a) be in writing; (b) state with specificity the nature of such objection and alleged Cure Payment, including applicable and appropriate documentation in support of such alleged Cure Payment; (c) comply with the Bankruptcy Rules and the Local Rules; and (d) be filed with the Bankruptcy Court and served on the following parties so as to be actually received no later than 400 p.m. (Eastern Time) on September 19, 2018 (the Assumption and Assignment Objection Deadline ) (i) counsel to the Debtors, Young Conaway Stargatt & Taylor, LLP, Rodney Square, 1000 North King Street, Wilmington, DE 19801, Attn Pauline K. Morgan, Esq. (pmorgan@ycst.com), Kenneth J. Enos, Esq. (kenos@ycst.com) and Jaime Luton Chapman, Esq. (jchapman@ycst.com); (ii) the Office of the United States Trustee for the District of Delaware, 844 King Street, Suite 2207, Wilmington, DE, 19801, Attn Linda Richenderfer, Esq. (Linda.richenderfer@usdoj.gov); (iii) counsel to the Pre-Petition Agent and DIP Agent, Blank Rome LLP, 1201 North Market Street #800, Wilmington, DE 19801, Attn Regina Kelbon, Esq. (kelbon@blankrome.com) and Stanley B. Tarr, Esq. (Tarr@BlankRome.com); (iv) counsel to the Pre-Petition Term Agent, Cozen O Connor, 1201 North Market Street, Suite 1001, Wilmington, DE 19801, Attn Mark Felger, Esq. (mfelger@cozen.com) and Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, NY 10019, Attn Jeffrey D. Saferstein, Esq. (JSaferstein@paulweiss.com), Jacob A. Adlerstein, Esq. (JAdlerstein@paulweiss.com), and Sarah Harnett, Esq. (SHarnett@paulweiss.com); (v) counsel to the Stalking Horse Bidder, McGuireWoods LLP, 201 North Tryon Street, Suite 3000, Charlotte, NC 28202, Harrison L. Marshall, Jr., Esq. (hmarshall@mcguirewoods.com); and (vi) counsel to the Committee, Foley & Lardner LLP, 90 Park Avenue, New York, New York 10016, Attn Richard J. Bernard (rbernard@foley.com) and Leah M. Eisenberg (leisenberg@foley.com), and Whiteford, Taylor

3 Case KG Doc 248 Filed 09/05/18 Page 3 of 6 & Preston, The Renaissance Centre, 405 North King Street, Suite 500, Wilmington, Delaware 19801, Attn Christopher M. Samis (csamis@wtplaw.com), L. Katherine Good (kgood@wtplaw.com), and Aaron H. Stulman (astulman@wtplaw.com) (collectively, the Notice Parties ). Any objections to the Successful Bidder s proposed form of adequate assurance of future performance must be filed and served on the Notice Parties so as to be actually received no later than 1000 a.m. (Eastern Time) on September 25, CONSEQUENCES OF FAILING TO TIMELY FILE AND SERVE OBJECTIONS To the extent that any party does not timely object as set forth above, such party may be (i) forever barred from objecting to the assumption and assignment of any of the Assigned Contracts identified on the Assigned Contracts List, including, without limitation, asserting any additional cure payments or requesting additional adequate assurance of future performance as it relates to the Sale to the Successful Bidder(s); (ii) deemed to have consented to the applicable Cure Payment, if any, and to the assumption and assignment of the applicable Assigned Contract as part of the Sale to the Successful Bidder(s); (iii) bound to such corresponding Cure Payment, if any; (iv) deemed to have agreed that the Stalking Horse Bidder or any other Successful Bidder has provided adequate assurance of future performance within the meaning of section 365(b)(1)(C) of the Bankruptcy Code; (v) deemed to have agreed that all defaults under the applicable Assigned Contract arising or continuing prior to the Assumption and Assignment Objection Deadline have been cured as a result or precondition of the assignment, such that the Stalking Horse Bidder or any other Successful Bidder or the Debtors shall have no liability or obligation with respect to any default occurring or continuing prior to the Assumption and Assignment Objection Deadline, and from and after the date of the assignment, the applicable Assigned Contract shall remain in full force and effect for the benefit of the Stalking Horse Bidder or any other Successful Bidder and such party in accordance with its terms; (vi) deemed to have waived any right to terminate the applicable Assigned Contract or designate an early termination date under the applicable Assigned Contract as a result of any default that occurred and/or was continuing prior to the assignment date; and (vii) deemed to have agreed that the terms of the Sale Order shall apply to the assumption and assignment of the applicable Assigned Contract. Dated September 5, 2018 Wilmington, Delaware YOUNG CONAWAY STARGATT & TAYLOR, LLP /s/ Jaime Luton Chapman Pauline K. Morgan (No. 3650) Kenneth J. Enos (No. 4544) Jaime Luton Chapman (No. 4936) Ashley E. Jacobs (No. 5635) Shane M. Reil (No. 6195) Rodney Square 1000 North King Street Wilmington, Delaware Telephone (302) Facsimile (302) Counsel to the Debtors and Debtors in Possession

4 Counterparty Name & Address AlarmSouth PO BOX 5393 STATESVILLE, NC, Case KG Assigned Doc 248 Contracts Filed 09/05/18 List Page 4 of 6 Description Commercial Contract for Equipment Sale/Lease and Monitoring, dated February 16, 2006, by and between AlarmSouth and Hickory Chair Co. Debtor Name Contract Type Cure Amount Service Albert Sack Antiques, 1109 E HARDSCRABBLE HILLSBOROUGH, NC, Agreement, dated April 12, 2005, by and between Hickory Chair Company and Albert Sack Antiques, $429 Alexa Hampton, Inc. 654 MADISON AVE NEW YORK, NY, Design and License Agreement, dated December 2003, by and between Hickory Chair Company, a division of Thomasville Furniture Industries, Inc. and Alexa Hampton, Inc. 1 $11,045 Alexa Hampton, Inc. 654 MADISON AVE NEW YORK, NY, Design Services Agreement, dated January 29, 2015, by and between, and Alexa Hampton, Inc. 1 Bill Love Design and Marketing 155 EDWARDS AVE SAUSALITO, CA, Agreement, dated July 26, 2002, by and between Hickory Chair Company and Bill Love Design and Marketing $1,078 Cecilia Kemble, Inc. 294 HIBISCUS AVE PALM BEACH, FL, Amended and Restated Design and License Agreement, dated July 31, 2012, as amended, by and between Cecilia Kemble, Inc. and Henredon Furniture, a division of HDM Furniture Industries, Inc. $694 Christopher S Bergelin 120 S STERLING ST MORGANTON, NC, Agreement, dated January 1, 2004, by and between Hickory Chair Company and Christopher S Bergelin $2,290 Cintas Corporation PO BOX CINCINNATI, OH, Standard Rental Service Agreement, March 2017, by and between Cintas Corporation and Hickory Chair Co. Service $7,184 Cope Services PO BOX 55 MORGANTON, NC, Cleaning Agreement and Terms, dated May 15, 2015, by and between and Cope Services Service $15,052 Corporation of the Presiding Bishop of The Church of Jesus Christ of Latter-day Saints 50 EAST NORTH TEMPLE Salt Lake City, UT, Master Purchase Agreement for Goods, effective March 1, 2017, by and between and the Corporation of the Presiding Bishop of The Church of Jesus Christ of Latter-day Saints Customer and Distribution D. Granda Design 120 PHILLIPS AVE DEAL, NJ, Agreement, dated December 15, 2004, by and between Hickory Chair Company and D. Granda Design $97 David Phoenix, Inc MELROSE AVE STE 201 LOS ANGELES, CA, Design Services Agreement / Trademark License Agreement, dated June 14, 2016, by and between and David Phoenix, Inc. $1,600 DEA Ventures, Inc. (Anderson Warehouse) PO BOX 762 LENOIR, NC, Lease, dated October 24, 2017, by and between and DEA Ventures, Inc. (Anderson Warehouse) Gomez Associates, Inc. 504 EAST 74TH ST SUITE 1E NEW YORK, NY, NY, License Agreement, dated April 24, 2001, by and between Hickory Chair Company and Gomez Associates, Inc. $13,346 Hable Construction, Inc. 495 HENRY ST BROOKLYN, NY, Design Services Agreement, dated January 29, 2014, by and between dba Hickory Chair and Hable Construction, Inc. $8,394 Hable Construction, Inc. 495 HENRY ST BROOKLYN, NY, Design Services Agreement, dated November 21, 2014, by and between dba Maitland-Smith and Hable Construction, Inc. 1 In accordance with the Termination Agreement, dated February 22, 2018, by and between Alexa Hampton, Inc. and. Page 1 of 3

5 Counterparty Name & Address International Design Center, Corkscrew Road Suite 305 Estero, FL, Case KG Assigned Doc 248 Contracts Filed 09/05/18 List Page 5 of 6 Debtor Description Name Lease, dated March 18, 2011, between International Design Center, and HDM Retail, INC., as amended by that certain First Amendment to Lease, dated April 17, 2013, that certain Second Amendment, dated May 13, 2015, that certain Third Amendment, dated June 6, 2017, and that certain Fourth Amendment, dated August 30, (Estero, FL) Contract Type Cure Amount $40,264 Kim Scodro Interiors 303 EAST WACKER DR SUITE 650 CHICAGO, IL, IL, Design Services and Trademark License Agreement, dated December 15, 2017, by and between and Kim Scodro Interiors Mark Hampton, Inc. 654 MADISON AVE 21ST FL NEW YORK, NY, Agreement, dated January 1, 1988, by and between The Lane Company, Inc., Hickory Chair Division and Mark Hampton, Inc. $631 Market Square AC IV SPE, 209 S. Main Street; Attn General Counsel High Point, NC, Lease Agreement dated June 27, 2014, by and between Market Square AC IV SPE, and ; First Modification of Lease dated August 7, 2017 (Hickory Chair Showroom) Merchandise Mart 1728 Paysphere Circle Chicago, IL, Lease Agreement dated June 16, 2006, by and between Merchandise Mart and HDM Retail, Inc.; First Amendment dated September 1, 2006; Second Amendment dated August 4, 2011; Third Amendment dated May 11, 2012; Fourth Amendment dated December 12, 2012; Fifth Amendment dated October 18, 2017 (Chicago Showroom) $35,968 Michigan Design Center Limited 1700 Stutz Dr #25 Troy, MI, Morrisette Paper Company, Inc. PO BOX CHARLOTTE, NC, Lease, dated November 19, 2002, between Michigan Design Center Limited Partnership and Classic Design Furnishings, Inc., as amended by that certain First Amendment to Lease, dated June 18, 2012, that certain Second Amendment, dated December 31, 2013, and that certain Third Amendment, dated December 29, 2017 (Troy, MI) Product Supply Agreement, dated January 12, 2015, by and between Morrisette Paper Company, Inc. and $19,639 Supply Museum of New Mexico Foundation PO BOX LINCOLN AVE SANTA FE, NM, License Agreement, dated March 4, 2015, by and between the Museum of New Mexico Foundation and $1,052 New York Design Center, Inc. 200 LEXINGTON AVE SUITE 428 NEW YORK, NY, Lease, dated June 1, 2011, between New York Design Center, Inc. and HDM Retail Inc., dba Hickory Chair Furniture, as amended by that certain First Amendment to Lease, dated May 9, 2014 (NY Showroom) Niermann Weeks Co., Inc. 760 GENERALS HIGHWAY MILLERSVILLE, MD, License Agreement, dated January 1, 2015, by and between, and Niermann Weeks Co., Inc. 2 $1,712 North Carolina Wireless 1985 TATE BLVD SE #43 HICKORY, NC, Terms and Conditions relating to Quote #407, by and between and North Carolina Wireless IT Otis Elevator Company PO BOX DALLAS, TX, Lubricate and Survey Service Quote, dated August 9, 2011, by and between Otis Elevator Company and Hickory Chair Co. Service $2,403 Phil Rassi 1703 Guyer Street High Point, NC, Design Services Agreement, dated August 12, 2015, by and between and Phil Rassi 2 In accordance with the Termination Agreement, dated January 12, 2018, by and between Niermann Weeks Co., Inc. and. Page 2 of 3

6 Counterparty Name & Address Piedmont Packaging, Inc. P O Box 7025 High Point, NC, Case KG Assigned Doc 248 Contracts Filed 09/05/18 List Page 6 of 6 Description Purchase and Supply Agreement, dated April 1, 2015, by and between and Piedmont Packaging, Inc. Debtor Name Contract Type Cure Amount Supply $132,255 ProTech Inc. PO BOX 506 CEDAR BLUFF, VA, Proposal on New Service for Lectra Equipment, dated July 28, 2004, by and between Hickory Chair Co. and ProTech Inc. Service Ray Booth Design, TH AVE SOUTH STE 310 NASHVILLE, TN, TN, Design Services Agreement / Trademark License Agreement, dated December 20, 2017, by and between and Ray Booth Design, $4,293 Reliant Medical Alert 316 Security Drive Statesville, NC, Medical Alarm Monitoring Service Agreement, dated December 4, 2015, by and between and and Reliant Medical Alert Service RREEF America REIT II Corp. DEPT 2077 BOX SAN FRANCISCO, CA, Shofer s Furniture Company Inc. 930 S CHARLES ST BALTIMORE, MD, Lease, dated December 24, 2002, between RREEF America REIT II Corp. YYYY and, as amended by that certain First Amendment, dated January 6, 2003, that certain Second Amendment, dated August 11, 2004, that certain Third Amendment, dated July 10, 2012 and that certain Fourth Amendment, dated July 11, 2016 (San Francisco, CA) Consignment Agreement by and between, and Shofer s Furniture Company Inc. $32,805 Other Southern Railway Company Three Commercial Place Norfolk, VA, Lease, dated March 12, 1980, By and Between the Lane Company, Incorporated, Hickory Chair Division, and Southern Railway Company Spencer-Churchill Designs, Inc. 580 SYLVAN AVE ENGLEWOOD CLIFFS, NJ, License Agreement, dated August 1, 2010, as amended, by and between Maitland-Smith Furniture Industries and Spencer-Churchill Designs, Inc. $10 Suzanne Kasler 425 PEACHTREE HILLS AVE 21B ATLANTA GA, GA, Design Services Agreement, dated August 14, 2006, by and between HDM Furniture Industries, Inc. and Suzanne Kasler $25,435 The Henry Francis du Pont Winterthur Museum, Inc Kennett Pike Winterthur, DE, License Agreement, dated April 11, 2011, as amended, by and between The Henry Francis du Pont Winterthur Museum, Inc. and Hickory Chair Company $4,689 Tony Duquette, Inc. PO BOX BEVERLY HILLS, CA, Design Services Agreement / Trademark License Agreement, dated September 30, 2016, as amended, by and between and Tony Duquette, Inc. Volumes Online Sarl (aka Patrick Aubriot) 13 RUE SAINT HONORE VERSAILLES, FRANCE, Design Services Agreement, dated March 4, 2016, by and between and Volumes Online Sarl (aka Patrick Aubriot) $46 William E. Poole Licensing Limited Partnership 12 MARKET ST WILMINGTON, NC, License Agreement, dated February 26, 1999, as amended, by and between William E. Poole Licensing Limited Partnership and Hickory Chair Company $309 Witford LC, Inc MELROSE AVE WEST HOLLYWOOD, CA, Consignment Agreement by and between, and Witford LC, Inc. dated as of January 2, 2017 Other XMC Lawn Care 2433 E MAIDEN RD MAIDEN,NC, NC, Ground Maintenance Contract, dated April 2016, by and between XMC Lawn Care and Home Group Service $5,600 Zimmerman Design Collaborative, 822 N ELM ST #107 GREENSBORO, NC, Design Services Agreement, dated March 5, 2013, by and between Maitland-Smith Furniture Industries, Inc. and Zimmerman Design Collaborative, $48 Page 3 of 3