AGREED JUDGMENT Page 1

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
In re:

HOME INTERIORS & GIFTS, INC.,
a Texas Corporation,

Debtors.
1

Case No. 08-31961-BJH

(Chapter 11)
Jointly Administered
AGREED JUDGMENT
At Dallas, Texas, in said District, came on for consideration the Motion of Dennis
Faulkner, Creditor Trust Trustee for Order Holding Richard A. Lindenmuth ("Lindenmuth") in
Contempt of Court and for Sanctions [Docket Nos. 1816 and 1818] (the "Contempt Motion")
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,
filed on February 2, 2011 by Dennis S. Faulkner, trustee of the HIG Creditor Trust ("Trustee")
which was created pursuant to the Amended Plan of Liquidation ("Plan") confirmed on May 28,
2010 by the Court ("Bankruptcy Court") in the above-captioned, jointly administered bankruptcy
cases (Jointly Administered Case No. 08-31961, collectively, the "Bankruptcy Case") of Home

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The remaining debtors (collectively, "Debtors") include (i) Dallas Woodcraft Company, LLC, a Delaware
Limited Liability Company, case no. 08-31960, (ii) DWC GP, LLC, a Delaware Limited Liability Company,
case no. 08-31963 (iii) Titan Sourcing, LLC, a Delaware Limited Liability Company, case no. 08-31964,
(iv) Laredo Candle Company, LLC a Texas Limited Liability Company, case no. 08-31965, (v) HIG
Holdings, LLC, a Texas Limited Liability Company, case no. 08-41855, and (vi) Home Interiors de Puerto
Rico, Inc., a Delaware Corporation, case no. 08-31967.
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Capitalized terms used and not otherwise defined herein have those same meanings as in the Motion.
Signed April 14, 2011

U.S. BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
ENTERED
TAWANA C. MARSHALL, CLERK
THE DATE OF ENTRY IS
ON THE COURT'S DOCKET
The following constitutes the ruling of the court and has the force and effect therein described.

United States Bankruptcy Judge
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Interiors & Gifts, Inc. and its affiliated debtors ("HIG" or "Debtors") , together with the: (i) Motion
and Brief of Richard A. Lindenmuth to Dismiss/Deny Motion of Dennis Faulkner, Creditor Trust
Trustee, for Order Holding Richard A. Lindenmuth in Contempt of Court, and for Sanctions, and
Request to Deny Same, filed on February 17, 2011 [Docket Nos. 1822 and 1823] ("Lindenmuth
Objection"), filed by Lindenmuth; and (ii) Supplemental Brief of Richard A. Lindenmuth to
Response and Brief of Richard A. Lindenmuth to Motion of Dennis Faulkner, Creditor Trust
Trustee, for Order Holding Richard A. Lindenmuth in Contempt of Court and for Sanctions, and
Request to Deny Same, filed on February 24, 2011 by Lindenmuth [Docket No. 1825]
("Supplemental Objection" and together, the "Objections").
The Court, having considered the Contempt Motion, the Objections, the representations
of counsel, and the record before it, finds that: (i) notice and service of the Contempt Motion,
and of the Objections thereto, were proper and adequate under the circumstances, and no
further notice thereof need be provided; and (ii) the Trustee and Lindenmuth (collectively, the
"Parties") have fully agreed to the terms of this Agreed Judgment and its entry by the Court, and
accordingly the Court hereby finds, concludes, and rules as follows:
I. FINDINGS OF FACT AND CONCLUSIONS OF LAW
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1. On April 29, 2008 ("Petition Date"), the Debtors filed voluntary petitions for relief
under Chapter 11 of title 11, United States Code, 11 U.S.C. 101, et seq. (the "Bankruptcy
Code").
2. On the Petition Date, the Debtors filed their Application for Order Pursuant to
Section 327(a) and 328(a) Authorizing the Employment and Retention of Boulder International
LLC ("Boulder") as Business Consultant and Chief Restructuring Officer for Debtors and
Debtors in Possession [Docket No. 14] (the "Employment Application"), seeking approval of the
Debtors' engagement of Boulder as Chief Restructuring Officer and Financial Consultant. The

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Findings of fact shall be construed as conclusions of law and conclusions of law shall be construed as
findings of fact when appropriate. See Bankruptcy Rule 7052.
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Court entered its Order [Docket No. 245] approving the Employment Application on June 3,
2008.
3. On November 25, 2008, the Court entered an order appointing Mr. Dennis
Faulkner as Chapter 11 Trustee [Docket No. 833]. On May 28, 2010, the Court entered its
Order confirming the Plan [Docket No. 1554].
4. On August 30, 2010, Boulder filed its First and Final Application for
Compensation and Reimbursement of Expenses of Boulder International, LLC, as Business
Consultant and Chief Restructuring Officer for the Debtors and Debtors-in-Possession ("Boulder
Application"), seeking compensation and reimbursement in the total amount of $558,109.90.
Boulder had already been paid, pursuant to its approved contract of employment, all of the fees
and expenses requested in the Boulder Application; however, it was required to file the Boulder
Application pursuant to its initial employment order referenced above. On September 17, 2010,
the Trustee filed an objection to the Boulder Application [Docket No. 1776].
5. On December 22, 2010, the Court held a hearing on the Boulder Application. All
of the fees and expenses requested were denied for reasons stated on the record and, on
December 30, 2010, the Court entered an order denying the fees and expenses requested in
the Boulder Application [Docket No. 1806]. On November 5, 2010, Boulder filed a voluntary
petition for Chapter 7 bankruptcy relief in the United States Bankruptcy Court for the Eastern
District of North Carolina. There were no assets or other property identified in the bankruptcy
schedules filed by Boulder and, therefore, Boulder was incapable of reimbursing the HIG
Creditor Trust for the amount of professional fees and expenses which were not approved by
the Court. The Boulder bankruptcy case was later closed.
6. In his Contempt Motion, the Trustee requested a finding that Lindenmuth
personally be ordered to reimburse to the HIG Creditor Trust the fees and expenses requested
in the Boulder Application which were disallowed by the December 30, 2010 Order. In his
Contempt Motion, the Trustee further requested a finding that portions of such fees and
expenses be determined to be non-dischargeable debts under 11 U.S.C. 523(a)(4).
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7. Subsequent to the Trustee's filing of the Contempt Motion, Lindenmuth filed his
Objections. The Trustee and Lindenmuth conducted good faith negotiations regarding the
Contempt Motion and a settlement was ultimately reached. At the hearing on the Contempt
Motion, the Parties announced to the Court their agreed compromise and settlement
("Settlement Agreement") of the Contempt Motion, under which Settlement Agreement the
parties have agreed to, inter alia, the entry of this Agreed Judgment. The entry of the Agreed
Judgment is an essential and necessary component of the Settlement Agreement.
Accordingly, it is hereby:
ORDERED that the HIG Trustee is hereby awarded judgment against Lindenmuth in the
total amount of $250,000.00 ("Judgment Amount"). It is further,
ORDERED that Lindenmuth shall receive credit against this Judgment Amount for any
and all payments made and/or property conveyed to the Trustee pursuant to the Settlement
Agreement. It is further,
ORDERED that, in the event that Lindenmuth makes all payments and fulfills all
obligations under the Settlement Agreement, this Agreed Judgment shall be released and
satisfied. It is further,
ORDERED that this Agreed Judgment in favor of the Trustee is entered pursuant to a
settlement of the Trustee's claims asserted under 11 U.S.C. 523(a)(2)(A) and (a)(4), as set
forth in the Contempt Motion, and Lindenmuth has agreed in the Settlement Agreement that in
the event he files for bankruptcy protection, he agrees not to contest any action brought by the
Trustee under 11 U.S.C. 523 to enforce this Agreed Judgment.
###END OF ORDER###
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AGREED JUDGMENT Page 5
AGREED AS TO FORM AND SUBSTANCE:
MUNSCH HARDT KOPF & HARR, P.C.
By: /s/ Raymond J. Urbanik
Raymond J. Urbanik
Texas Bar No. 20414050
3800 Lincoln Plaza
500 North Akard Street
Dallas, Texas 75201-6659
Telephone: (214) 855-7500
Facsimile: (214) 978-4335
rurbanik@munsch.com
Attorneys for Dennis S. Faulkner, Creditors Trust Trustee
-AND-
OLSON NICOUD & GUECK
By: /s/ Jay L. Gueck
Jay L. Gueck
1201 Main Street, Suite 2470
Dallas, TX 75202
Telephone: 214-979-7314
Facsimile: 214-979-7301
email: gueck@dallas-law.com
Attorney For Richard Lindenmuth
MHDocs 3142902_7 11548.1
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