The US Bankruptcy Court gave an order to SmileDirectClub,Inc. to obtain DIP financing on an interim basis on October 2, 2023. As per the order, the debtor has been authorized to obtain a Term loan in the amount of 30 million out of the total financing of 80 million from Cluster Holco , LLC with Cluster Holdco LLC. acting as the administrative agent.

David Katzman Revocable Living Trust provided commitment amt of 0.023, DBK Investments, LLC 1.00, David B. Katzman 2009 Family Trust FBO Rachel L. Katzman amt of 10.85 million, David B. Katzman 2009 Family Trust FBO Jordan M. Katzman amt of 10.85 million, David B. Katzman 2009 Family Trust FBO Adam B. Katzman amt of 10.85 million, Jordan M. Katzman Revocable Trust amt of 0.8 million, JM Katzman Investments, LLC amt of 1.75 million, Alexander Fenkell Revocable Trust amt of 13.08 million and Alexander J. Fenkell 2018 Irrevocable Trust amt of 1.75 million. The DIP loan would carry an interest rate of 17.5% p.a. As per the terms of the DIP agreement, the loan carries a commitment fee of 5% p.a. The DIP facility would mature with respect to the DIP Facility shall be the earliest of December 29, 2023 the effective date of any chapter 11 plan of reorganization, other than a Liquidation Plan; the date upon which the consummation of a sale or other disposition of all or substantially all of the Debtors? assets under section 363 of the Bankruptcy Code has occurred, the date of acceleration or termination of the DIP Facility; and the date of the dismissal of any of the Chapter 11 Cases or conversion of the Chapter 11 Cases to cases under chapter 7 of the Bankruptcy Code provided, however, that the Scheduled Maturity Date shall be extended automatically for an additional 90 days if the Liquidation Plan has become effective.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of 0.05 million towards unpaid professional fees and first priority lien upon and security interest in the debtor?s collateral.