APP Res

7/26/2019 APP Res

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AMERICAN

APPAREL

NC.

(a

Dela~~are

o i • p o i • a t i o n )

CERTIFICATEOFRESOLUTION

I ,

Chelsea

A.

Grayson,

General

Counsel,

Executive

Vice

P r e s i d e n t

&Sec reta ry

of

American

Apparel,

n c . ,

a Delaware c o r p o r a t i o n

t h e

Company ),

do

hereby c e r t i f y

t h a t : (a)

am h e

duly

e l e c t e d , q u a l i f i e d

General Counsel,

Executive

Vice P r e s i d e n t &Secretary of

h e

C o m p a n y; (b)

h e f o l l o w i n g r e s o l u t i o n s

w er e

duly

adopted

b y t h e

board

of

d i r e c t o r s

of

t h e

C o m p a n y ,

s

of October 4,

2015,

n

accordance

w i t h

t h e

r e q u i r e m e n t s

o f

p p l i c a b l e

law;

an d

(c) a i d r e s o l u t i o n s

have not

been

amended,

odified

o r

r e s c i n d e d and

a r e i n

f u l l

f o r c e and e f f e c t

a s

of

h e

d a t e

h e r e o f :

AMERICANAPPAREL

NC.

(a

Dela~~are corporation)

Resolutions

Adopted at the

O c t o b e r 4,

015

Me e ting

of

h e

Board

of

irectors

Back

ound

WHEREAS

h e board

o f

i r e c t o r s of h e

C o m p a n y

t h e

Board )

as

p p o i n t e d a p e c i a l

committee of

h e

Board t h e Finance and R e s t r u c t u r i n g

Committee ),

and

h e Finance

an d

R e s t r u c t u r i n g

C om m itte e

has

v a l u a t e d

t h e Company's l t e r n a t i v e s i n

c o n n e c t i o n w i t h

a o s s i b l e

r e s t r u c t u r i n g ;

WHEREAS h e Board

has

r e v i o u s l y

a p p o i n t e d

Mark

Weinsten a s

t h e Company's Chief

S t r a t e g y O f f i c e r ;

WHEREAS h e

Finance and R e s t r u c t u r i n g

C om m itte e has

e c e i v e d

t h e

recommendations from

t h e

C ompa ny' s Chief

t r a t e g y O f f i c e r

and has

o n s u l t e d

w i t h

t h e

C ompa ny' s

management

and l e g a l ,

f i n a n c i a l ,

and

o t h e r

a d v i s o r s ,

and

f t e r

c o n s i d e r a t i o n of

h o s e

recommendations,

as

r e c o m m e n d ed

o t h e Board

h a t

t h e a c t i o n s

s e t

f o r t h i n

t h e s e

R e s o l u t i o n s

be

approved

b y h e

Board;

WHEREAS h e Board

has

e v a l u a t e d t h e

Company's

l t e r n a t i v e s

i n

c o n n e c t i o n w i t h

a

p o s s i b l e r e s t r u c t u r i n g

and, f t e r

due o n s i d e r a t i o n

t a k i n g

i n t o

account

h e

recommendation of

h e

Finance

and

R e s t r u c t u r i n g C o mm i t t e e, h e

i n f o r m a t i o n

a v a i l a b l e

t o

i t

a t t h i s t i m e ,

and

a f t e r

c o n s u l t a t i o n

w i t h

t h e

C ompa ny' s

management

and

l e g a l ,

f i n a n c i a l , and o t h e r

a d v i s o r s , and

i n

t h e

e x e r c i s e of

t s

r e a s o n a b l e b u s i n e s s

judgment, h e

Board

has

determined h a t

i t i s i n

t h e

b e s t

i n t e r e s t s

of

h e

C o m pa n y ,

t s

s t a k e h o l d e r s ,

and

t s

c r e d i t o r s

t o

f i l

a

v o l u n t a r y

p e t i t i o n

f o r

r e l i e f

under

h a p t e r

11 of

i t l 1 1 of

h e

United

S t a t e s

C o d e

t h e

Bankruptcy Code )

nd

u n d e r t a k e t h e

o t h e r

a c t i o n s approved

b y h e s e

R e s o l u t i o n s ;

WHEREAS

f t e r

due

c o n s i d e r a t i o n

t a k i n g

i n t o

account

h e recommendation of

h e

Finance and

R e s t r u c t u r i n g C o mm i t t e e,

h e i n f o r m a t i o n

a v a i l a b l e

t o

i t

a t

t h i s

time and a f t e r

c o n s u l t a t i o n w i t h

t h e C ompa ny' s

manag emen t

and l e ga l , f i n a n c i a l ,

and o t h e r

a d v i s o r s ,

and

n

t h e

e x e r c i s e of

t s b u s i n e s s

judgment,

h e

Board has

determined

t h a t

i t i s

i n

t h e b e s t

i n t e r e s t s

o f

h e

NAI-1500561386v4

7/26/2019 APP Res


Company o

consent

o

and

approve,

s

t h e

managing

member,

h e

f i l i n g

of

a

e t i t i o n

f o r r e l i e f

under

h a p t e r 11

of

h e

Bankruptcy

Code

by

t s

wholly owned

domestic

u b s i d i a r y ,

American

Apparel USA),

LLC

AAUSA ), nd,

o

t h e

e x t e n t

n e c e s s a r y , o

consent o

and approve

h e

ding of

e t i t i o n s

f o r

r e l i e f under

h a p t e r

1 1 of h e

Bankruptcy

Code

by

h e

wholly

owned

domestic u b s i d i a r i e s

of

AAUSA

t h e

I n d i r e c t

S u b s i d i a r i e s ) ;

WHEREAS,

f t e r

due


t a k i n g i n t o

account t h e

recommendation

of

t h e

Finance

and


Committee,

t h e

i n f o r m a t i o n a v a i l a b l e t o

i t a t

t h i s

time

and

a f t e r

c o n s u l t a t i o n with

t h e

Company's

management and

l e g a l ,

f i n a n c i a l , and

o t h e r a d v i s o r s ,

and i n

t h e

e x e r c i s e

of

t s

b u s i n e s s

judgment, h e

Board

has

determined

t

i s

i n

t h e b e s t

i n t e r e s t s

of

h e

Company t o

e n t e r i n t o

t h e

Plan Support

Agreement

(as

d e f i n e d

below), and

t o

seek

a p p r o v a l

a n d / o r

c o n f i r m a t i o n

by

t h e

United

S t a t e s

Bankruptcy

Court

t h e

Bankru~tcv

Court )

r e s i d i n g

over t h e

c a s e s t o be

i l e d

by

t h e

Company

and t s

s u b s i d i a r i e s

o f ,

t h e

DIP

F a c i l i t y

(as

d e f i n e d

below), and

t h e

Plan

(as

d e f i n e d

below),

D i s c l o s u r e

Statement

(as

d e f i n e d

below),

and

a l l

documents

r e l a t e d t o

or

contemplated by

any

of

t h e

f o r e g o i n g agreements

o r

documents

( c o l l e c t i v e l y ,

t h e


T r a n s a c t i o n

Docu ments );

WHEREAS,

f t e r d u e


t a k i n g

i n t o

account

t h e

recommendation

of

t h e

Finance

and


Committee,

h e


a v a i l a b l e

t o i t a t

t h i s time

and a f t e r


w i t h

t h e

Company's

management and

l e g a l , f i n a n c i a l , and

o t h e r a d v i s o r s , and

i n

t h e

e x e r c i s e of

t s

b u s i n e s s

judgment,

h e

Board

has

determined

t h a t i t

i s i n

t h e

b e s t

i n t e r e s t s

of

t h e

Company t o

consent t o and

approve

o f , a s

managing

member

of

AAUSA,

AAUSA s

approval

and

e n t r y

i n t o

t h e


T r a n s a c t i o n Documents,

and,

o t h e e x t e n t

n e c e s s a r y ,

consent

t o and

approve

t h e I n d i r e c t

S u b s i d i a r i e s '

e n t r y i n t o

t h e



Documents;

WHEREAS,

f t e r due

c o n s i d e r a t i o n t a k i n g i n t o

account

t h e

recommendation

of

t h e

Finance and


Committee, t h e


a v a i l a b l e t o i t

a t

t h i s time and

a f t e r


w i t h t h e Company's management

and

l e g a l , f i n a n c i a l ,

and o t h e r a d v i s o r s , and

i n

t h e

e x e r c i s e

of

t s

b u s i n e s s

judgment,

h e

Board

has

determined

t h a t i t

i s

i n

t h e b e s t

i n t e r e s t s

of

t h e

Company t o

a p p o i n t

Mark

Weinsten

a s

c h i e f

r e s t r u c t u r i n g

o f f i c e r f o r t h e

Company

and

t s

d i r e c t

and

n d i r e c t

domestic

f f i l i a t e s .

RESOLUTIONS

Company

esolutions

Chapter

l l

F i l i n g

IT

IS

RESOLVED h a t

t h e

Board

has e c l a r e d , and

t

hereby does

e c l a r e , t h a t

i t i s

i n

t h e

b e s t

i n t e r e s t s

of h e

Company

and

t s

s t a k e h o l d e r s

t h a t

t h e

Company

seek

e l i e f

under

h e

Bankruptcy

Code;

FURTHER

RESOLVED h a t

t h e

Company

h a l l b e ,

and

hereby

s

a u t h o r i z e d

t o f i l e a

v o l u n t a r y

p e t i t i o n

( t h e

P e t i t i o n ) o r

r e l i e f

under h a p t e r

11

of

h e

Bankruptcy

Code t h e

Chapte r 11 C a s e ) ,

n

t h e Bankruptcy

Court

o r

t h e

D i s t r i c t

of elaware

t h e

Bankruptcy

Cour t )

and

perform

any

and

l l su ch a c t s

a s

a r e

r e a s o n a b l e ,

a d v i s a b l e ,

e x p e d i e n t ,

c o n v e n i e n t ,

proper

or

e c e s s a r y t o e f f e c t u a t e

t h e

purpose and

n t e n t

of

h e

f o r e g o i n g ;

and

NAI-]500561386v4

7/26/2019 APP Res


FURTHER

RESOLVED

h a t t h e

c h i e f

e x e c u t i v e

o f f i c e r ,

t h e

c h i e f

f i n a n c i a l o f f i c e r ,

t h e

Chief

e s t r u c t u r i n g

O f f i c e r

and

g e n e r a l

c o u n s e l ( c o l l e c t i v e l y ,

t h e

Designated O f f i c e r s ) ,

and

each of hem a c t i n g

a l o n e h e r e b y

i s

a u t h o r i z e d

and d i r e c t e d ,

i n

t h e n a me and

on b e h a l f

of

h e

Company,

o :

(a) x e c u t e , acknowledge,

e l i v e r ,

and

v e r i f y

t h e

P e t i t i o n

and

l l o t h e r

a n c i l l a r y

documents,

and c a u s e

t h e

P e t i t i o n

t o

be

f i l e d

w i t h

t h e

Bankruptcy

Court

and

m a k e o r c a u s e

t o

be

ma d e r i o r t o

e x e c u t i o n t h e r e o f any m o d i f i c a t i o n s

t o

t h e

P e t i t i o n

o r

a n c i l l a r y

documents

a s

any

such

D e s i g n a t e d

O f f i c e r ,

i n

such

p e r s o n ' s

d i s c r e t i o n ,

d eems

n e c e s s a r y ,

d e s i r a b l e

o r

a p p r o p r i a t e t o

c a r r y

out

h e

i n t e n t and

a c c o m p l i s h

t h e

p u r p o s e s of

h e s e

r e s o l u t i o n s ;

(b) x e c u t e , acknowledge,

d e l i v e r , v e r i f y

and i l e

o r

c a u s e t o be f i l e d

a l l

p e t i t i o n s , s c h e d u l e s , s t a t e m e n t s ,

i s t s

m o t i o n s ,

a p p l i c a t i o n s

and

o t h e r

p a p e r s

o r documents n e c e s s a r y o r d e s i r a b l e i n c o n n e c t i o n w i t h t h e

f o r e g o i n g

and t h e

a d m i n i s t r a t i o n

of

h e .

Company's

Chapter

1 1 Case; c ) x e c u t e , acknowledge,

d e l i v e r

and

v e r i f y

any

and l l

o t h e r

documents

n e c e s s a r y ,

d e s i r a b l e

o r

a p p r o p r i a t e

i n

c o n n e c t i o n

t h e r e w i t h

and t o a d m i n i s t e r t h e

Company's

Chapter 1 1

Case

i n

such

form

o r forms a s

any

such

D e s i g n a t e d

O f f i c e r m ay d e e m n e c e s s a r y o r

a d v i s a b l e and

i n o r d e r

t o e f f e c t u a t e t h e p u r p o s e and

i n t e n t

of h e

f o r e g o i n g

r e s o l u t i o n s ;

and

(d)

ngage

any

p r o f e s s i o n a l s ,

i n c l u d i n g

a t t o r n e y s ,

a c c o u n t a n t s ,

f i n a n c i a l

a d v i s o r s ,

i n v e s t m e n t

b a n k e r s , a c t u a r i e s ,

c o n s u l t a n t s

o r b r o k e r s a s any

such

D e s i g n a t e d

O f f i c e r ,

i n

such

p e r s o n ' s

d i s c r e t i o n ,

d eems

n e c e s s a r y ,

d e s i r a b l e

o r a p p r o p r i a t e

t o

accomplish

t h e p u r p o s e s

of

h e s e r e s o l u t i o n s ;

t h a t

t h e i r

a u t h o r i t y t o a c t

under

t h e s e r e s o l u t i o n s

s h a l l be

c o n c l u s i v e l y

e v i d e n c e d by t h e i r so

a c t i n g ; and t h a t

any

and

l l such

a c t i o n s

h e r e t o f o r e

t a k e n

on

b e h a l f

of h e

C o mpa n y

i n

such r e s p e c t s

c o n t e m p l a t e d t h e r e b y a r e h e r e b y r a t i f i e d ,

approved

and

c o n f i r m e d a s t h e

a c t and

deed

of

h e Company.

Debtor

i n P o s s e s s i o n I ' i n a n c i n

a c i l i t Y

IT

IS RESOLVED h a t

t h e Company,

u b j e c t

t o a p p r o v a l

of

h e

Bankruptcy C o u r t , a s

d e b t o r

and

d e b t o r

i n p o s s e s s i o n under c h a p t e r

11

of

h e

Bankruptcy

Code,

h a l l

b e ,

and t

h e r e b y i s

a u t h o r i z e d

t o :

(a)

n t e r i n t o

a

n e w

d e b t o r

i n

p o s s e s s i o n

f i n a n c i n g

f a c i l i t y ( t h e

D IP

F a c i l i t y )

and

any

a s s o c i a t e d

documents and consummate,

and perform u n d e r ,

h e

t r a n s a c t i o n s

c o n t e m p l a t e d

t h e r e i n

( c o l l e c t i v e l y ,

t h e

F i n a n c i n g

T r a n s a c t i o n s )

w i t h

such

l e n d e r s

and on

such

terms

s u b s t a n t i a l l y

c o n s i s t e n t

w i t h

t h o s e p r e s e n t e d t o t h e Board on o r p r i o r

t o

t h e

d a t e h e r e o f

and

a s m a y

be

f u r t h e r

approved,

o d i f i e d

o r

amen d e d by

any

one

o r

mo re

of

h e

D e s i g n a t e d

O f f i c e r s , a s m ay be r e a s o n a b l y

n e c e s s a r y

o r

d e s i r a b l e fo r t h e

c o n t i n u i n g

conduct

of

h e

a f f a i r s

of

h e Company;

and ( b ) ay

r e l a t e d

f e e s

and

g r a n t

s e c u r i t y i n t e r e s t s

i n

and l i e n s upon

some,

l l

o r s u b s t a n t i a l l y

a l l

of h e Company's

a s s e t s ,

i n such

c a s e ,

a s

m ay

be deemed

n e c e s s a r y

o r

d e s i r a b l e

by

any

one

o r

mo re

of h e

D e s i g n a t e d O f f i c e r s

i n c o n n e c t i o n w i t h t h e F i n a n c i n g

T r a n s a c t i o n s ; and

FURTHER

RESOLVED h a t :

(a) h e

D e s i g n a t e d O f f i c e r s s h a l l b e , and each

of

hem,

a c t i n g

a l o n e ,

hereby

s a u t h o r i z e d

and

empower ed i n

t h e n a m e

o f ,

and

on

b e h a l f o f ,

t h e

Company, s

d e b t o r

and

d e b t o r

i n

p o s s e s s i o n ,

o

t a k e such

a c t i o n s and

e x e c u t e ,

acknowledge,

d e l i v e r

and v e r i f y such agreements, e r t i f i c a t e s ,

i n s t r u m e n t s ,

g u a r a n t i e s , n o t i c e s

and

any

and

l l

o t h e r

documents a s any of h e

D e s i g n a t e d O f f i c e r s m ay d e e m n e c e s s a r y o r


f a c i l i t a t e t h e

F i n a n c i n g

T r a n s a c t i o n s ( c o l l e c t i v e l y , t h e F i n a n c i n g

Documents );

b )

i n a n c i n g

D o c u m e n t s

c o n t a i n i n g

such p r o v i s i o n s ,

t e r m s ,

c o n d i t i o n s ,

c o v e n a n t s ,

w a r r a n t i e s

and

r e p r e s e n t a t i o n s a s m ay be

d eemed n e c e s s a r y o r

d e s i r a b l e

by

any of

h e

D e s i g n a t e d O f f i c er s a r e

h e r e b y

approved; c ) h e

D e s i g n a t e d

O f f i c e r s

s h a l l

b e , and each

of

hem,

c t i n g

a l o n e ,

h e r e b y

i s

a u t h o r i z e d

and

empower ed

i n

t h e

n a m e

o f ,

and

on b e h a l f

o f ,

t h e

Company,

s d e b t o r and d e b t o r

NAI-1500561386v4

7/26/2019 APP Res


i n p o s s e s s i o n ,

t o

a u t h o r i z e

c o u n s e l

t o

d r a f t ,

i l e

and

seek

a p p r o v a l of h e

Financing

T r a n s a c t i o n s ;

and (d)

h e

a c t i o n s

of

any

Designated

O f f i c e r

taken pursuant

o

t h i s

r e s o l u t i o n , i n c l u d i n g t h e

e x e c u t i o n ,

acknowledgment,

e l i v e r y

and

v e r i f i c a t i o n

of

l l

agreements,

e r t i f i c a t e s ,


g u a r a n t i e s , n o t i c e s

and

o t h e r

documents,

h a l l

be

c o n c l u s i v e

evidence

of uc h

Designated

O f f i c e r ' s

approval

t h e r e o f

and

t h e

n e c e s s i t y

or d e s i r a b i l i t y

t h e r e o f .

Flan

Support

A gre emen t

and

Plan

IT

IS

RESOLVED

h a t

t h e

Com pany,

s

d e b t o r

and

d e b t o r

i n p o s s e s s i o n

under

c h a p t e r

1 1

of

h e Bankruptcy

Code,

h a l l b e , and t hereby i s ,

a u t h o r i z e d

t o :(a)

n t e r i n t o

t h e

Plan

Support

A gre emen t

and

any

a s s o c i a t e d

documents

and

con s umma t e, and

perform

u n d e r ,

t h e

t r a n s a c t i o n s contemplated

t h e r e i n

with an

ad

h oc committee

of

e n d e r s

comprised

of Monarc h

A l t e r n a t i v e

C a p i t a l

LP,

Coliseum

C a p i t a l

Mana g e m e n t,LLC

oldman

Sachs Asset

Mana g e m e n t,

. P . ,

and

Pentwater C a p i t a l

Ma n a g e m e n t

LP

nd

on

such

terms

s u b s t a n t i a l l y

c o n s i s t e n t

w i t h t h o s e

p r e s e n t e d t o t h e

Board

on or

p r i o r t o t h e

d a t e

hereof

and

as

m ay

be

f u r t h e r

approved,

modified

or

amen d ed

by

any

one

o r

mor e

of

h e

Designated O f f i c e r s ,

a s

m a y be

r e a s o n a b l y n e c e s s a r y or

d e s i r a b l e f o r

t h e c o n t i n u i n g

conduct

of

h e

a f f a i r s

of

h e

Company;

and

(b)

ay r e l a t e d

f e e s

as

may e

d e e m e d

n e c e s s a r y

or

d e s i r a b l e

by any one o r

mor e of

h e

Designated

O f f i c e r s

i n

connection

w i t h t h e

Plan

Support

Agreement;

FURTHER

RESOLVED

h a t

t h e

Company, s

d e b t o r

and

d e b t o r

i n

p o s s e s s i o n

under

c h a p t e r

11

of

h e

Bankruptcy Code,

h a l l

b e ,

a n d .

t

hereby i s , a u t h o r i z e d t o :

(a) x e c u t e and

i l e

a

c h a p t e r 1 1 p l a n ( t h e

P l a n ) ,

a s s o c i a t e d

d i s c l o s u r e

s t a t e m e n t ( t h e

Disclosure

S t a t e m e n t ) ,

and

any

a s s o c i a t e d

documents, and con s umma t e, and

perform

under,

h e t r a n s a c t i o n s

contemplated

t h e r e i n

on

such terms

s u b s t a n t i a l l y c o n s i s t e n t with t h o s e p r e s e n t e d

t o

t h e

Board

on

or p r i o r

t o t h e

d a t e

hereof

and

as

m a y

be

u r t h e r

approved, modified

or amen d ed

by

any one

o r

m o r e

of

h e

Designated

O f f i c e r s ,

as m a y

be

r e a s o n a b l y n e c e s s a r y

or

d e s i r a b l e

f o r t h e

c o n t i n u i n g conduct of h e

a f f a i r s

of h e Company; nd

(b) ay

r e l a t e d f e e s

as

m a y be

d e em e d

n e c e s s a r y or

d e s i r a b l e

by any one

or

mor e of

h e Designated

O f f i c e r s

i n

c o n n e c t i o n w i t h t h e


T r a n s a c t i o n D ocumen t s;

and

FURTHER

RESOLVED h a t :

(a)

h e Designated

O f f i c e r s

s h a l l

b e ,

and

each of

hem,

a c t i n g a l o n e ,

hereby i s , a u t h o r i z e d and

e m p o w e r e d

i n

t h e

n a m e

o f ,

and on

b e h a l f

o f ,

t h e

Company, s d e b t o r and

d e b t o r i n p o s s e s s i o n ,

t o

t a k e

such a c t i o n s and e x e c u t e ,

acknowledge,

d e l i v e r and

v e r i f y

t h e

Plan Support Agreement,

h e

P l a n ,

and

D i s c l o s u r e

S t a t e m e n t , and

such

agreements,

e r t i f i c a t e s , n o t i c e s and

any

and

l l

o t h e r

documents

a s any

of

h e

Designated

O f f i c e r s m a y d e e m

n e c e s s a r y o r


i n c o n n e c t i o n w i t h t h e

Plan

Support

Agreement,

t h e

Plan,

h e D i s c l o s u r e

Statement, and

any o t h e r


D ocumen t s; b)


D o c u m e n t s

c o n t a i n i n g

such

p r o v i s i o n s ,

terms, o n d i t i o n s ,

c o v e n a n t s ,

w a r r a n t i e s and

r e p r e s e n t a t i o n s a s m a y be

d e e m e d n e c e s s a r y

o r d e s i r a b l e

by

any of

h e

Designated

O f f i c e r s a r e

hereby

approved; c )

t h e Designated

O f f i c e r s

s h a l l

b e ,

and

each

of hem,

c t i n g

a l o n e ,

hereby

i s ,

a u t h o r i z e d

and e m p o w e r e d

i n t h e n a m e

o f ,

and

on b e h a l f

o f ,

t h e

Company, s d e b t o r

and

d e b t o r

i n p o s s e s s i o n ,

t o

a u t h o r i z e

c o u n s e l

t o

d r a f t , f i l e

and

seek approval

of h e R e s t r u c t u r i n g


D ocumen t s,

n c l u d i n g

a p p r o v a l

of

h e

D i s c l o s u r e

Statement

and

c o n f i r m a t i o n

of

h e

P l a n ;

and

(d)

h e

a c t i o n s

of

any

Designated

O f f i c e r

t a k e n pursuant o t h i s

r e s o l u t i o n ,

i n c l u d i n g

t h e

e x e c u t i o n ,

acknowledgment,

e l i v e r y

and

v e r i f i c a t i o n

of

l l agreements, e r t i f i c a t e s ,

NAI-1500561386v4

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g u a r a n t i e s ,

n o t i c e s

and

o t h e r documents,

h a l l

be

c o n c l u s i v e

evidence

of

uch

Designated

O f f i c e r s

approval

t h e r e o f and

t h e n e c e s s i t y

o r d e s i r a b i l i t y

t h e r e o f .

Subsidiary

Resolutions

IT

IS

RESOLVED,

h a t

t h e

C o m p a n y

hereby a u t h o r i z e s and

c o n s e n t s t o , and

approves

o f ,

AAUSA

and, o t h e

e x t e n t

n e c e s s a r y ,

each

of

h e

I n d i r e c t

S u b s i d i a r i e s ) i l i n g a

e t i t i o n f o r r e l i e f

under

c h a p t e r 1 1

of

h e

Bankruptcy Code

n

t h e

Bankruptcy

C o u r t , and

e n t e r i n g i n t o , and

f i l i n g ,

a p p r o p r i a t e ,

t h e

Financing

Documents,


T r a n s a c t i o n s

Documents,

and

r e l a t e d

documents,

and

consummating,

and

performing

under,

h e


contemplated

t h e r e i n ;

and

FURTHER

RESOLVED,

h a t t h e

Designated

O f f i c e r s

s h a l l

b e ,

and

each

of hem,

c t i n g

a l o n e ,

hereby

s a u t h o r i z e d and

em powe red

i n

t h e

n a m e

o f ,

and

on

behalf

f ,

t h e

C o m p a n y ,

n

i t s

c a p a c i t y

of

o l e

m e m b e r

ofAAUSA,

o

execute

a

w r i t t e n

consent

of

h e

C o m p a n y o


f o r AAUSA

ith

r e s p e c t

t o

AAUSA's

h a p t e r 11 case

i n c l u d i n g f i l i n g

a

p e t i t i o n

f o r

bankruptcy

and

e n t e r i n g i n t o t h e

Financing

Documents,



Documents, and r e l a t e d

documents,

and

consummating, and

performing

under,

h e


contemplated

t h e r e i n , s u b s t a n t i a l l y

s i m i l a r

t o t h e


s e t

f o r t h t h e r e i n ,

and, o

t h e

e x t e n t

n e c e s s a r y , t o

consent

o

such

s i m i l a r R e s o l u t i o n s f o r each of h e I n d i r e c t

S u b s i d i a r i e s .

A p p o i n t m e n t

of Chie f

Restructuring O f f i c e r

IT

IS

RESOLVED,

h a t ,

e f f e c t i v e a s

of

October 4,

2015 Ma r k

Weinsten

s h a l l be

and

hereby i s

a p p o i n t e d a s t h e

Com p a n y' h i e f


o f f i c e r

( CRO ), h e

CRO

e r v i n g a s

an

o f f i c e r

of

h e

C o m p a n y r e p o r t i n g

t o t h e

Board, and

with

t h e

CRO

e p o r t i n g d i r e c t l y

t o

t h e

Finance

and


Committee

and t h e Board

on l l

a s p e c t s

of h e

Chapter 11

Case,

i t h

f u l l

p ow er

o

c a l l meetings

of

h e Board and

t o

e s t a b l i s h

agendas

o r such m e e t i n g s ,

and

w i t h

t h e

d i r e c t i o n

o r

a u t h o r i z a t i o n

of

h e

Board

t o ,

a m o n g

o t h e r

a c t i o n s t h a t

would

be

customary

f o r

one

s e r v i n g

i n

t h e c a p a c i t y of a c h i e f

r e s t r u c t u r i n g o f f i c e r .

I n

p a r t i c u l a r ,

and

a s

s e t

f o r t h i n mor e

d e t a i l i n

t h e

October

1 , - 2 0 1 5

l e t t e r agreement

between FTI

C o n s u l t i n g ,

n c . and t h e

C o m p a n y ,

t h e

CRO s

a u t h o r i z e d

t o (a)

o n s t r u c t

a budget,

review d i s b u r s e m e n t s ,

and c r e a t e

v a r i a n c e

r e p o r t s ,

(b)

s s i s t t h e

Company's ma n a gemen t

with

a l l i s s u e s

r e l a t e d

t o

e x e c u t i n g

a

r e s t r u c t u r i n g ,

(c)

r o v i d e c o u r t

testimony

a s r e q u i r e d ,

d) s s i s t

w i t h managing vendor e l a t i o n s h i p s , e)

r e a t e

employee

r e t e n t i o n

p l a n s ,(~

o r k

with t h e Company's

investment bank t o optimize

c a p i t a l

s t r u c t u r e and a s s e s s s t r a t e g i c

a l t e r n a t i v e s ,

and

(g) r o v i d e

o t h e r

r e l a t e d

s e r v i c e s a s

r e q u e s t e d by

t h e

Company.

Retention

of r o f e s s i o n a l s and

Claims

and

Noticing

Agent

IT

IS

RESOLVED,

h a t

t h e

engagement by

t h e

C o m p a n y ,

n

b e h a l f

of

t s e l f

and

t s

domestic

d i r e c t

and

i n d i r e c t

s u b s i d i a r i e s of a)

ones

D a y

a s


c o u n s e l ,

b) a c h u l s k i

Stang Z i e h l

&Jon es LLP s l o c a l


c o u n s e l ,

c)

Moelis

Company s i n v e s t m e n t

b a n k e r ,

d)

TI C o n s u l t i n g , n c . , t o

p r o v i d e

t h e

CRO

nd

o t h e r

temporary empl oyees, s

f i n a n c i a l

a d v i s o r s ,(e)

DJM

eal

E s t a t e a s

r e a l

e s t a t e

c o n s u l t a n t ,

and

f ~

Garden

C i t y

Group,

LLC,

a s

c l a i m s ,

n o t i c i n g , and s o l i c i t a t i o n

a g e n t ,

and a d m i n i s t r a t i v e

a d v i s o r ,

i n each

c a s e ,

i s

hereby

r a t i f i e d ,

adopted and

approved

i n a l l

r e s p e c t s ; and

NAI-1500561386v4

7/26/2019 APP Res


FURTHER

RESOLVED

h a t

J o n e s Day,

a c h u l s k i

S t a n g

Z i e h l Jones

LLP

nd

any

a d d i t i o n a l

co

- c o u n s e l

o r s p e c i a l o r

l o c a l c o u n s e l

s e l e c t e d

by h e

Company,

h a l l

b e

and h e r e b y

a r e

a u t h o r i z e d

empowered and

d i r e c t e d t o

r e p r e s en t t h e

Company,

s

d e b t o r

and

d e b t o r i n

p o s s e s s i o n

i n

c o n n e c t i o n

w i t h

any

Chapter

1 1

c a s e commenced

by

o r a g a i n s t i t

under

h e

Bankruptcy

Code.

Additional R e s o l u t i o n s

IT

IS

RESOLVED

h a t

a l l a c t s

l a w f u l l y done

o r

a c t i o n s

l a w f u l l y

t a k e n

by

any o f f i c e r

of

t h e

Company

o r any p r o f e s s i o n a l s engaged

by

h e

Company n c o n n e c t i o n

w i t h

t h e

C h a p t e r

1 1

Case

o r any p r o c e e d i n g s

r e l a t e d

t h e r e t o

o r

any

m a t t e r

r e l a t e d t h e r e t o

b e

and h e r e b y a r e

a d o p t e d

r a t i f i e d

c o n f i r m e d

and

approved

i n a l l

r e s p e c t s

a s

t h e a c t s and deeds

of

h e

Company;

FURTHER

RESOLVED h a t

any

and

l l

a c t i o n s and

r a n s a c t i o n s

by

h e Board

o r

any

o f f i c e r

f o r

and

on

b e h a l f

and

i n

t h e name

of h e

Company

w i t h

r e s p e c t

t o

any

r a n s a c t i o n s


by h e

f o r e g o i n g

r e s o l u t i o n s

b e f o r e t h e

a d o p t i o n of h e

f o r e g o i n g

r e s o l u t i o n s b e

and

t h e y

h e r e b y

a r e

r a t i f i e d

a u t h o r i z e d

approved,

d o p t e d

and

c o n s e n t e d

t o i n

a l l

r e s p e c t s

f o r

a l l p u r p o s e s ;

FURTHER

RESOLVED

h a t

t h e

o m i s s i o n

from

t h e s e


of

any a g r e e m e n t

document

r o t h e r

arrangement

o n t e m p l a t e d by

any

of h e a g r e e m e n t s

documents

o r

i n s t r u m e n t s d e s c r i b e d

i n t h e s e R e s o l u t i o n s

o r

any

a c t i o n

t o

be

a k e n

i n

a c c o r d a n c e

w i t h

any

r e q u i r e m e n t

of any of h e

a g r e e m e n t s

documents

r i n s t r u m e n t s

d e s c r i b e d i n t h e s e


s h a l l i n

no

manner

e r o g a t e

from

t h e

a u t h o r i t y

of h e D e s i g n a t e d

O f f i c e r s t o

t a k e

a l l

a c t i o n s

n e c e s s a r y d e s i r a b l e

a d v i s a b l e

o r


t o

consummate,

f f e c t u a t e

c a r r y o u t

o r

f u r t h e r

t h e



by,

and

h e

i n t e n t and

p u r p o s e s

o f

t h e s e

R e s o l u t i o n s ;

FURTHER

RESOLVED h a t

t h e

Board

and

any

D e s i g n a t e d

O f f i c e r

of

h e

Company

h e r e b y

a r e a u t h o r i z e d and d i r e c t e d t o

c e r t i f y

a n d / o r

a t t e s t

t h e s e

r e s o l u t i o n s

c e r t i f i c a t e

of

incu mbency and

such

o t h e r

documents

o r i n s t r u m e n t s

t h a t

t h e c o r p o r a t e

s e c r e t a r y

of h e

Company

may

deem

n e c e s s a r y o r a p p r o p r i a t e

i n c o n n e c t i o n

w i t h

t h e

f o r e g o i n g

m a t t e r s ;

r o v i d e d

however,

h a t

such c e r t i f i c a t i o n

a n d / o r a t t e s t a t i o n

s h a l l

n o t be

r e q u i r e d

f o r

any document,

i n s t r u m e n t

o r

agreement o be

v a l i d

and

b i n d i n g on

h e

Company;

and

FURTHERRESOLVED h a t

any D e s i g n a t e d

O f f i c e r

of

h e

Company s h a l l b e

and

e a c h

of hem,

e r e b y i s

a u t h o r i z e d

d i r e c t e d and

empowered,

n

t h e

name and

on

b e h a l f

of

h e

Company; s

d e b t o r

and

d e b t o r

i n p o s s e s s i o n

t o

n e g o t i a t e

e x e c u t e

d e l i v e r

and

p e r f o r m o r

c a u s e

t o

be

n e g o t i a t e d

e x e c u t e d

d e l i v e r e d

and

performed,

on

b e h a l f

o f

and t a k e

such a c t i o n s

and e x e c u t e

acknowledge,

e l i v e r

and

v e r i f y such a g r e e m e n t s c e r t i f i c a t e s

i n s t r u m e n t s

g u a r a n t i e s n o t i c e s and

any and

l l o t h e r documents s

any

r o p e r

o f f i c e r

of

h e

Company

may

deem

n e c e s s a r y

o r


f a c i l i t a t e

t h e t r a n s a c t i o n s


by h e

f o r e g o i n g

r e s o l u t i o n a s

may be

deemed

n e c e s s a r y

d e s i r a b l e

o r a p p r o p r i a t e .

NAI-]

00561386v4

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