Document:

Exhibit
4(b)

 

[Form
of Supplemental Indenture]

 

SUPPLEMENTAL
INDENTURE

 

SUPPLEMENTAL
INDENTURE, dated as of [        ], 2004
to INDENTURE, dated as of August 15, 1991 (the “Indenture”) between AB
SVENSK EXPORTKREDIT (Swedish Export Credit Corporation) (the “Company”) and
J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION (as successor in interest to
The First National Bank of Chicago), as trustee (the “Trustee”).

 

WHEREAS, the
Company wishes to make certain amendments to the Indenture to further provide
for the issuance from time to time of the Company’s Debt Securities; and

 

WHEREAS, all
things necessary have been done to make this Supplemental Indenture a valid
agreement of the Company in accordance with its terms;

 

NOW, THEREFORE, in
consideration of the premises it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Debt Securities or of any
series thereof, as follows:

 

Section 1.                                            Definitions. 
All terms used and not defined in this Supplemental Indenture shall have
the respective meanings given them in the Indenture.

 

Section 2.                                            Amendments.  The
Indenture is hereby amended as follows:

 

(a)                                  Section 101 will be amended by:

 

(i)                                     deleting the definition of “ECU” and
“European Communities”;

 

(ii)                                  amending the definition of “Business Day”
by adding at the end thereof:

 

“or, when used
with respect to any Place of Payment with respect to any Debt Securities
denominated in Euro, means any date on which the Trans-European Automated Gross
Settlement Express Transfer System (TARGET) is operating credit or transfer
instructions in respect of payments in Euro”.

 

(iii)                               adding a definition of Euro to read as
follows:

 

“Euro”, “€” and
“EUR” means the lawful currency of the member states of the European Union that
have adopted the single currency in accordance with the Treaty establishing the
European Communities, as amended by the Treaty on European Union.

 

(iv)                              amending the definitions of “Foreign
Currency”, to read in their entireties as follows:

 

 

“Foreign Currency”
shall mean a currency issued by the government of any jurisdiction other than
the United States of America and shall, in any event, include Euro.

 

“Officers’
Certificate” means a certificated signed by the President, any Executive
Director or the Treasurer of the Company.

 

(b)                                 Section 105 shall be amended (I) in
clause (1) by adding “or by facsimile transmission” after “in writing” and
“and, in the case of facsimile transmission, at such number as the Trustee
shall have furnished to the Company or such Holder, as the case may be,” after
“Department,” and (II) in clause (2) by adding at the end thereof “or sent to
the Company by facsimile transmission to
+46-8-613-[        ] or such other
number as the Company may furnish in writing to the Trustee and, in either
case, shall be sent to the attention of Legal Counsel”.

 

(c)                                  Section 106 shall be amended (I) in
clause (1) of the first paragraph by adding “, or sent by facsimile
transmission,” after “prepaid” and “(or facsimile number, if any)” after
“address” and (II) in clause (2) of the first paragraph by deleting “The
International Stock Exchange of the United Kingdom and the Republic of Ireland”
and substituting therefor “the London Stock Exchange”.

 

(d)                                 Section 303 (a) shall be amended to
read in its entirety as follows:

 

“The
Debt Securities and any coupons appertaining thereto shall be executed on
behalf of the Company by its President or any of its Executive Directors or any
other person (a “Delegated Signatory”) to whom the President shall have
delegated such power.  Such signatures
may be in the form of facsimile signatures of the present or any future
President or Executive Director of the Company or any Delegated Signatory and
may be imprinted or otherwise reproduced on the Debt Securities.  The Company may adopt and use the signatures
or facsimile signatures of the persons who shall be President or an Executive
Director of the Company or a Delegated Signatory at the time of execution of
the Debt Securities and any coupons appertaining thereto, irrespective of the date
as of which the same shall be executed, or of any person who shall have been
President or an Executive Director of the Company or a Delegated Signatory,
notwithstanding the fact that at the time the Debt Securities shall be
authenticated and delivered or disposed of, such person shall have ceased to
be, as the case may be, President or an Executive Director or Delegated
Signatory.”

 

(e)                                  Section 303 (c) shall be amended in
clause (i) to delete the words “and shall be denominated in”.

 

(f)                                    Section 1007 shall be amended by
deleting the period at the end thereof and adding the following:

 

“or where the withholding
or deduction is imposed on a payment to an individual and is required to be
made pursuant to the European Union Directive on the taxation of savings
adopted June 3, 2003 (implementing the conclusions of the Economics and
Financial Council meeting of November

 

2

 

26-27, 2000) or any law
implementing or complying with, or introduced in order to conform to, such
Directive.”

 

(e)                                  All
references to ECU in the Indenture shall be disregarded.

 

Section 3.                                            Continuation
of Indenture.  The Indenture, as
modified by this Supplemental Indentures with the effect set forth in
Section 904, shall remain in full force and effect.

 

IN WITNESS WHEREOF, the
partners hereto have caused this Supplemental Indenture to be duly executed as
of the day and year first above written.

 

	
   

  	
  AKTIEBOLAGET SVENSK
  EXPORTKREDIT

  
	
   

  	
  (Swedish Export Credit
  Corporation)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J.P. MORGAN TRUST
  COMPANY,

  
	
   

  	
  NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

3QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.5.1  

        [Execution
Version] 

 
 

AMENDMENT NO. 2 AND WAIVER TO LOAN AND SECURITY AGREEMENT    
    

        AMENDMENT NO. 2 AND WAIVER TO LOAN AND SECURITY AGREEMENT ("Amendment No. 2"), dated April 16, 2004, by and among LOUD Technologies Inc., a
Washington corporation formerly known as Mackie Designs Inc. ("US Borrower"), Mackie Designs UK Plc, a company incorporated under the laws of England and Wales with registration number 02506901
("UK Borrower", and together with US Borrower, each individually a "Borrower" and collectively, "Borrowers"), Mackie Designs Inc., a Washington corporation, formerly known as Mackie Designs
Manufacturing, Inc.("Mackie"), SIA Software Company, Inc., a New York corporation ("SIA") Mackie Investment Co., a Washington corporation ("Mackie Investment", and together with Mackie
Manufacturing and SIA, each individually a "Guarantor" and collectively, "Guarantors"), Congress Financial Corporation (Florida), in its capacity as agent pursuant to the Loan Agreement (as
hereinafter defined) acting for and on behalf of the parties thereto as lenders (in such capacity, "Agent"), and the parties to the Loan Agreement as lenders (individually, each a "Lender" and
collectively, "Lenders"). 

W I T N E S S E T H: 

        WHEREAS,
Agent, Borrowers and Guarantors have entered into financing arrangements pursuant to which Agent and Lenders have made and may make loans and advances to Borrowers as set forth
in the Loan and Security Agreement, dated March 31, 2003, by and among Agent, Lenders, Borrowers and Guarantors as amended by Amendment No. 1 to Loan and Security Agreement dated
June 30, 2003 (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the "Loan Agreement") and other agreements, documents and
instruments referred to therein or at any time executed and/or delivered in connection therewith or related thereto (all of the foregoing, together with the Loan Agreement, as the same now exist or
may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, being collectively referred to herein as the "Financing Agreements"); 

        WHEREAS,
Agent, Lenders, Borrowers and Guarantors desire to amend certain covenants and make certain other amendments to the Loan Agreement; 

        WHEREAS,
by this Amendment No. 2, Agent, Lenders, Borrowers and Guarantors desire and intend to evidence such amendment; 

        NOW
THEREFORE, in consideration of the foregoing and the mutual agreements and covenants contained herein, the parties hereto agree as follows: 

        1.     Definitions.

        (a)   Additional Definitions.    As used herein, the following terms shall have the meanings given to them below and
the Loan Agreement and the other Financing Agreements are hereby amended to include, in addition and not in limitation, the following definitions: 

          (i)  "Amendment
No. 2" shall mean Amendment No. 2 to Loan and Security Agreement, dated April 16, 2004, by and among Borrowers, Guarantors, Agent and
Lenders, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. 

         (ii)  "Projected
2004 EBITDA" shall mean the projected EBITDA of Borrowers and Guarantors for the fiscal year ending December 31, 2004 as set forth on Exhibit A
to Amendment No. 2. 

 

        (iii)  "Projected
2005 EBITDA" shall mean the projected EBIDTA of Borrowers and Guarantors for the fiscal year ending December 31, 2005 as set forth on
Exhibit B to Amendment No. 2. 

        (iv)  "Special
Equipment Reserve" shall mean the Reserve in the amount of $600,000 established by Agent on or about September, 2003 in connection with the appraised value of
Equipment. 

        (b)   Existing Definitions in Loan Agreement.    Capitalized terms used herein which are not otherwise defined herein
shall have the respective meanings ascribed thereto in the Loan Agreement. 

        2.     Interest Rate.    Section 1.69 of the Loan Agreement is hereby amended by deleting such Section in its
entirety and substituting the following therefor: 

        "1.69    "Interest
Rate" shall mean, 

        (a)   Subject
to clause (b) of this definition below: 

          (i)  as
to Prime Rate Loans that are Revolving Loans, a rate equal to one and one half (1.50%) percent per annum in excess of the Prime Rate, and 

         (ii)  as
to Eurodollar Rate Loans that are Revolving Loans, a rate equal to four and one quarter (4.25%) percent per annum in excess of the Adjusted Eurodollar Rate (in each
case, based on the Eurodollar Rate applicable for the Interest Period selected by a Borrower, or by Administrative Borrower on behalf of such Borrower, as in effect three (3) Business Days
after the date of receipt by Agent of the request of or on behalf of a Borrower for such Eurodollar Rate Loans in accordance with the terms hereof, whether such rate is higher or lower than any rate
previously quoted to any Borrower or Guarantor), and 

        (iii)  as
to Term Loans, a rate equal to one and three quarters (1.75%) percent per annum in excess of the Prime Rate. 

        (iv)  notwithstanding
anything to the contrary contained in clause (a) above and so long as no Event of Default shall exist or have occurred and be continuing:
(A) the Interest Rate set forth in clause (a) above shall be decreased one time by one quarter of one percent (.25%) percent effective on the first day of the month after Agent's receipt
of evidence that the EBITDA of US Borrower and its Subsidiaries for the fiscal year ending December 31, 2004 is equal to or greater than the Projected 2004 EBITDA as set forth in the audited
financial statements of US Borrower and its Subsidiaries for such fiscal year delivered to Agent (together with the unqualified opinion of the independent certified public accountants) in accordance
with Section 9.6(a) of the Loan Agreement and (B) the Interest Rate set forth in clause (a) above shall be decreased one time by one quarter of one (.25%) percent effective on the
first day of the month after Agent's receipt of evidence that the EBITDA of US Borrower and its Subsidiaries for the fiscal year ending December 31, 2005, is equal to or greater than the
Projected 2005 EBITDA as set forth in the audited financial statements of US Borrower and its Subsidiaries for such fiscal year delivered to Agent (together with the unqualified opinion of the
independent certified public accountants) in accordance with Section 9.6(a) of the Loan Agreement. 

        (b)   Notwithstanding
anything to the contrary contained in clause (a) of this definition, the Interest Rate shall mean the per annum rates set forth above plus (in
each case) two (2%) percent, at Agent's option, upon prior notice, (i) either (A) for the period on and after the date of termination or non-renewal hereof until such time as
all Obligations are paid and satisfied in full in immediately available funds, or (B) for the period from and after the date of the occurrence of any Event of Default, and for so long as such
Event of Default is continuing as determined by 

2

 

Agent
in good faith and (ii) on the Revolving Loans to each Borrower at any time outstanding in excess of the Borrowing Base of such Borrower or the Revolving Loan Limit of such Borrower
(whether or not such excess(es) arise or are made with or without Agent's or any Lender's knowledge or consent and whether made before or after an Event of Default). Upon the request of a Borrower,
Agent will promptly notify such Borrower in writing if the Interest Rate specified in this clause (b) is in effect." 

        3.     Raw Material Availability.

        (a)   Section 1.110
of the Loan Agreement is hereby amended by deleting such section in its entirety and substituting the following therefor: 

        "1.110.    "Raw
Material Availability" shall mean (a) at any time prior to October 1, 2005,the lesser of (i) twenty two (22%) percent multiplied by the US
Dollar Equivalent of the Value of the Eligible Inventory of US Borrower consisting of raw materials or (ii) eighty-five (85%) percent of the Net Recovery Percentage of Inventory of
US Borrower consisting of raw materials multiplied by the US Dollar Equivalent of the Value of Eligible Inventory of US Borrower consisting of raw materials and (b) at any time on or after
October 1, 2005, the amount equal to the lesser of (i) fifty-five (55%) percent multiplied by the US Dollar Equivalent of the Value of the Eligible Inventory of US Borrower
consisting of raw materials or (ii) eighty-five (85%) percent of the Net Recovery Percentage of Inventory of US Borrower consisting of raw materials multiplied by the US Dollar
Equivalent of the Value of Eligible Inventory of US Borrower consisting of raw materials." 

        (b)   Section 1.3
of the Loan Agreement is hereby amended by deleting such Section in its entirety and substituting the following therefor: 

        "1.3
[Intentionally Deleted]" 

        (c)   Section 1.85
of the Loan Agreement is hereby amended by deleting such Section in its entirety and substituting the following therefor: 

        "1.85
[Intentionally Deleted]" 

        (d)   Section 1.90
of the Loan Agreement is hereby amended by deleting such Section in its entirety and substituting the following therefor: 

        "1.90
[Intentionally Deleted]" 

        (e)   Section 1.117
of the Loan Agreement is hereby amended by deleting "(j) to reflect the Net Recovery Percentage Adjustment Reserve" and replacing it with "(j)
[Intentionally Deleted]". 

        4.     Term
Loans. Section 2.3 of the Loan Agreement is hereby amended by inserting the following immediately after the end of such Section: 

"(c)
notwithstanding anything to the contrary contained in Section 2.3(b), within five (5) Business Days after Agent's receipt of any written appraisals as to the Equipment in accordance
with Section 7.4, US Borrower shall prepay the Term Loans in an amount equal to the positive difference (if any) between the (i) then aggregate outstanding principal amount of the Term
Loans and (ii) eighty five (85%) percent of the net orderly liquidation value of the Equipment as reflected in such appraisal. Amounts prepaid pursuant to this Section 2.3(c) shall be
applied to the installment of the Term Loans in the inverse order of maturity, and any such amounts so prepaid may not be reborrowed." 

        5.     EBITDA.    Section 9.17 of the Loan Agreement is hereby amended by deleting such Section in its entirety
and substituting the following therefor: 

        "9.17
EBITDA. US Borrower and its Subsidiaries shall not permit the EBITDA of US Borrower and its Subsidiaries, for each period set forth
below, to be less than the amount listed 

3

 

opposite
such period (each a "Test Period"); provided, that, if the daily average of the aggregate Excess Availability of Borrowers was equal to or
greater than $2,500,000 for the sixty (60) consecutive days immediately preceding the last day of any such Test Period ending on or before September 30, 2004, then US Borrower and its
Subsidiaries shall not be required to comply with the terms of this Section 9.17 for such Test Period (it being understood that US Borrower and its Subsidiaries shall be required to comply with
the terms of this Section 9.17 for each Test Period ending after September 30, 2004, regardless of Excess Availability): 

	Period
 
	 	Amount
	 
	1/1/04—1/31/04	 	$	(1,333,000	)
	1/1/04—2/29/04	 	$	(1,748,000	)
	1/1/04—3/31/04	 	$	(3,651,000	)
	1/1/04—4/30/04	 	$	(3,304,000	)
	1/1/04—5/31/04	 	$	(2,119,000	)
	1/1/04—6/30/04	 	$	(877,000	)
	1/1/04—7/31/04	 	$	297,000	 
	1/1/04—8/31/04	 	$	861,000	 
	1/1/04—9/30/04	 	$	1,857,000	 
	1/1/04—10/31/04	 	$	2,865,000	 
	1/1/04—11/30/04	 	$	4,034,000	 
	1/1/04—12/31/04	 	$	5,446,000	 
	3/31/04—3/31/05	 	$	9,769,000	 
	7/1/04—6/30/05	 	$	9,963,000	 
	10/1/04—9/30/05	 	$	9,867,000	 
	I/1/04—12/31/05	 	$	8,907,000	 
	Each twelve-month period thereafter $8,907,000 ending on the last day of each calendar quarter	 	$	8,907,000	 

        The
use of paretheses is this Section 9.17 is intended to reflect negative numbers." 

        6.     Equipment Sales.    Section 9.7(b)(ii) of the Loan Agreement is hereby amended by deleting such
Section in its entirety and replacing the following therefor: 

        "(ii) the
sale or other disposition of Equipment (including worn-out or obsolete Equipment or Equipment no longer used or useful in the business of any Borrower or
Guarantor); provided, that, all Net Cash Proceeds from any such sale or other disposition shall be
promptly paid to Agent to be applied to the outstanding principal amount of the Term Loans (which shall be applied to the installments thereof in the inverse order of maturity) and, after the Term
Loans have been fully repaid, to the other Obligations in such order and manner as Agent may determine," 

        7.     Equipment Reserve.    Within five (5) Business Days after Agent's receipt, on or after April 28,
2004, of an Acceptable Equipment Appraisal (as defined below), Agent shall reduce the Special Equipment Reserve by an amount equal to the difference (if positive) between
(a) eighty-five (85%) percent of the net orderly liquidation value of the Equipment as reflected in the Equipment appraisal most recently received by Agent pursuant to
Section 7.4 of the Loan Agreement and (b) the then aggregate outstanding principal amount of the Term Loans; provided,  that, each of the
following conditions is satisfied:(i) as of the date of any such reduction and after giving effect thereto, no Default or Event
of Default shall have occurred and be continuing, (ii) Agent shall have received, on or after April 28, 2004, a written appraisal as to the Equipment in form, scope and methodology
acceptable to Agent by an appraiser acceptable to Agent, addressed to Agent and Lenders and upon which the Agent and Lenders are expressly permitted to rely (an "Acceptable Equipment Appraisal"), and
(iii) in no event shall the Special Equipment Reserve be reduced below zero; it being understood that the 

4

 

foregoing
shall in no way modify, limit or otherwise impair the ability of the Agent to establish other Reserves in accordance with the terms of the Loan Agreement. 

        8.     Waiver.

        (a)   Subject
to the terms and conditions set forth herein, Lenders hereby waive the Events of Default set forth on Schedule 1 hereto (the "Acknowledged Events of
Default"). 

        (b)   Lenders
have not waived, are not by this Agreement waiving, and have no intention of waiving any Event of Default which may have occurred on or prior to the date hereof,
whether or not continuing on the date hereof, or which may occur after the date hereof (whether the same or similar to the Event of Default referred to above or otherwise), other than the Acknowledged
Events of Default. The foregoing waiver shall not be construed as a bar to or a waiver of any other or further Event of Default on any future occasion, whether similar in kind or otherwise and shall
not constitute a waiver, express or implied, of any of the rights and remedies of Lender arising under the terms of the Loan Agreement or any other Financing Agreements on any future occasion or
otherwise. 

        9.     Amendment Fee.    In addition to all other fees, charges, interest and expenses payable by Borrowers to Agent
and Lenders under the Loan Agreement and the other Financing Agreements, Borrowers shall pay to Agent for the account of Lenders, contemporaneously with the effectiveness of this Amendment, an
amendment fee in the amount of $50,000, which fee shall be fully earned and payable on the effective date hereof and may be charged to any loan account of Borrowers. 

        10.   Additional Representations, Warranties and Covenants.    Borrowers represent, warrant and covenant with and to
Agent and Lenders as follows, which representations, warranties and covenants are continuing and shall survive the execution and delivery hereof, and the truth and accuracy of, or compliance with
each, together with the representations, warranties and covenants in the other Financing Agreements, being a continuing condition of the making of Loans by Lenders (or Agent on behalf of Lenders) to
Borrowers: 

        (a)   after
giving effect to this Amendment No. 2, no Default or Event of Default has occurred and is continuing as of the date of this Amendment No. 2; and 

        (b)   this
Amendment No. 2 has been duly executed and delivered by Borrowers and Guarantors and the agreements and obligations of Borrowers and Guarantors contained
herein constitute legal, valid and binding obligations of Borrowers and Guarantors enforceable against Borrowers and Guarantors in accordance with their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency, moratorium or similar laws limiting creditors rights generally and by general equitable principles. 

        11.   Conditions Precedent for Amendment.    The amendments contained herein shall be effective upon Agent's receipt
of the following: (a) this Amendment No. 2, duly authorized, executed and delivered by Borrowers, Guarantors and Required Lenders, (b) an amendment to the Junior Loan Agreement,
in form and substance satisfactory to Agent (the "Junior Amendment") duly authorized, executed and delivered by the parties thereto and (c) evidence satisfactory to Agent that the Junior
Amendment is in full force and effect. 

        12.   Effect of this Amendment.    Except as modified pursuant hereto, no other changes or modifications to the
Financing Agreements are intended or implied, and in all other respects the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date
of this Amendment No. 2. To the extent of conflict between the terms of this Amendment No. 2 and the other Financing Agreements, the terms of this Amendment No. 2 shall control. 

5

 

        13.   Further Assurances.    Borrowers and Guarantors shall execute and deliver such additional documents and take
such additional action as may be reasonably necessary or desirable to effectuate the provisions and purposes of this Amendment No. 2. 

        14.   Governing Law.    The validity, interpretation and enforcement of this Amendment No. 2 and any dispute
arising out of the relationship between the parties hereto whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of Florida (without giving effect to
principles of conflicts of laws). 

        15.   Binding Effect.    This Amendment No. 2 shall be binding upon and inure to the benefit of each of the
parties hereto and their respective successors and assigns. 

        16.   Headings.    The headings listed herein are for convenience only and do not constitute matters to be construed
in interpreting this Amendment No. 2. 

        17.   Counterparts.    This Amendment No. 2 may be executed in any number of counterparts, but all of such
counterparts shall together constitute but one and the same agreement. In making proof of this Amendment No. 2, it shall not be necessary to produce or account for more than one counterpart
thereof signed by each of the parties hereto. This Amendment No. 2 may be executed and delivered by telecopier with the same force and effect as if it were a manually executed and delivered
counterpart. 

6

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to be duly executed and delivered by their authorized officers as of the day and year first above written. 

	 	 	BORROWERS
	

 	
 	

LOUD TECHNOLOGIES INC., formerly known as Mackie Designs Inc.
	

 	
 	

By:	

/s/  TIM O'NEIL      

	 	 	Title:	CFO

	

 	
 	

MACKIE DESIGNS UK PLC
	

 	
 	

By:	

/s/  TIM O'NEIL      

	 	 	Title:	Vice President

	 	 	By:	/s/  JAMES T. ENGEN      

	 	 	Title:	Vice President

	

 	
 	
GUARANTORS
	

 	
 	

MACKIE DESIGNS INC., formerly known as Mackie Designs Manufacturin Inc.
	

 	
 	

By:	

/s/  TIM O'NEIL      

	 	 	Title:	Vice President

	

 	
 	

SIA SOFTWARE COMP , INC.
	

 	
 	

By:	

/s/  TIM O'NEIL      

	 	 	Title:	Vice President

	 	 	MACKIE INVESTMENT CO.
	

 	
 	

By:	

 
	 	 	 	/s/  TIM O'NEIL      

	 	 	Title:	Vice President
	

 	
 	

AGENT
	

 	
 	

CONGRESS FINANCIAL CORPORATION (FLORIDA), as Agent
	

 	
 	

By:	

/s/  MARTY J. COLOSON      

	 	 	Title:	FIRST VICE PRESIDENT

	

 	
 	

LENDER
	

 	
 	

CONGRESS FINANCIAL CORPORATION (FLORIDA)
	

 	
 	

By:	

/s/  MARTY J. COLOSON      

	 	 	Title:	FIRST VICE PRESIDENT

 
 

EXHIBIT A    
    
    Projected EBITDA for 2004

	LOUD Technologies

Consolidated Statements

of Operations
 
	 	FY 2004

Forecast
	 
	EBITDA	 	 	 
	 	Net Income (Loss)	 	(1,486	)
	 	Income Taxes	 	—	 
	 	Depreciation and Amortization	 	5,110	 
	 	Interest Expense (net)	 	2,782	 
	 	Management Fee	 	—	 
	Adjusted EBITDA—Congress	 	6,407	 

 
 

EXHIBIT B    
    
    Projected EBITDA for 2005

	LOUD Technologies

Consolidated Statements

of Operations
 
	 	FY 2005

Forecast

	EBITDA	 	 
	 	Net Income (Loss)	 	2,430
	 	Income Taxes	 	—
	 	Depreciation and Amortization	 	5,110
	 	Interest Expense (net)	 	2,939
	 	Management Fee	 	—
	Adjusted EBITDA—Congress	 	10,479

 
 

SCHEDULE 1    

        1.     Event
of Default under Section 10.1(a)(iii) of the Loan Agreement arising from the failure of US Borrower and its Subsidiaries to comply with
Section 9.17 of the Loan Agreement for the period ending on each of June 30, 2003, September 30, 2003, December 31, 2003. 

        2.     Event
of Default under Section 10.1(a)(iii) of the Loan Agreement arising from failure of Borrowers and Guarantors to give timely notice to Agent of the
name change of (a) US Borrower from Mackie Designs Inc. to LOUD Technologies Inc. and (b) Mackie from Mackie Designs Manufacturing, Inc. to Mackie
Designs Inc., each as required under Section 9.1(b) of the Loan Agreement. 

        3.     Event
of Default under Section 10.1(a)(iii) of the Loan Agreement as a result of the failure of Borrowers and Guarantors to promptly notify Agent in writing
of the occurrence of the Events of Default set forth in Sections 1 and 2 above as required Section 9.6(b)(vi) of the Loan Agreement. 

QuickLinks

AMENDMENT NO. 2 AND WAIVER TO LOAN AND SECURITY AGREEMENT

EXHIBIT A Projected EBITDA for 2004

EXHIBIT B Projected EBITDA for 2005

SCHEDULE 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]