Document:

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                                                                   EXHIBIT 4.7

                               SENIOR PREFERRED STOCK

                           REGISTRATION RIGHTS AGREEMENT

                                    dated as of

                                   June 30, 2000

                                       among

                          DECRANE AIRCRAFT HOLDINGS, INC.

                                        and

                 THE HOLDERS OF SENIOR PREFERRED STOCK PARTY HERETO

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                                 TABLE OF CONTENTS

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                                                                     PAGE
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                                     ARTICLE 1

                                    DEFINITIONS

Section 1.01.    Definitions . . . . . . . . . . . . . . . . . . . . . .1

                                     ARTICLE 2

                                REGISTRATION RIGHTS

Section 2.01.    Demand Registration . . . . . . . . . . . . . . . . . .3

Section 2.02.    Incidental Registration . . . . . . . . . . . . . . . .5
Section 2.03.    Holdback Agreements . . . . . . . . . . . . . . . . . .6
Section 2.04.    Registration Procedures . . . . . . . . . . . . . . . .6
Section 2.05.    Indemnification by the Company. . . . . . . . . . . . .9
Section 2.06.    Indemnification by Participating Holders. . . . . . . 10
Section 2.07.    Conduct of Indemnification Proceedings. . . . . . . . 10
Section 2.08.    Contribution. . . . . . . . . . . . . . . . . . . . . 11
Section 2.09.    Participation in Public Offering. . . . . . . . . . . 12
Section 2.10.    Other Indemnification . . . . . . . . . . . . . . . . 12
Section 2.11.    Cooperation by the Company. . . . . . . . . . . . . . 13

                                     ARTICLE 3

                                   MISCELLANEOUS

Section 3.01.    Entire Agreement. . . . . . . . . . . . . . . . . . . 13
Section 3.02.    Binding Effect; Benefit . . . . . . . . . . . . . . . 13
Section 3.03.    Assignability . . . . . . . . . . . . . . . . . . . . 13
Section 3.04.    Amendment; Waiver; Termination. . . . . . . . . . . . 13
Section 3.05.    Notices . . . . . . . . . . . . . . . . . . . . . . . 13
Section 3.06.    Headings. . . . . . . . . . . . . . . . . . . . . . . 15
Section 3.07.    Counterparts. . . . . . . . . . . . . . . . . . . . . 15
Section 3.08.    Applicable Law. . . . . . . . . . . . . . . . . . . . 15
Section 3.09.    Specific Enforcement. . . . . . . . . . . . . . . . . 15
Section 3.10.    Consent to Jurisdiction . . . . . . . . . . . . . . . 15
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                             SENIOR PREFERRED STOCK
                         REGISTRATION RIGHTS AGREEMENT

     SENIOR PREFERRED STOCK REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT")
dated as of June 30, 2000 by and among DeCrane Aircraft Holdings, Inc., a
Delaware corporation (the "COMPANY"), and the initial holders named on the
signature pages hereto (the "INITIAL HOLDERS").

     This Agreement is being entered into pursuant to a Securities Purchase
Agreement  (the "SECURITIES PURCHASE AGREEMENT") dated the date hereof by and
among the Company, DeCrane Holdings Co. ("HOLDINGS") and the Initial Holders
providing for the purchase by the Initial Holders from the Company and Holdings
of 16% Senior Redeemable Exchangeable Preferred Stock of the Company (the
"SENIOR PREFERRED STOCK") and warrants to purchase common stock, par value $0.01
per share of Holdings (the "WARRANTS").  In order to induce the Initial Holders
to purchase the Senior Preferred Stock and the Warrants, the Company has agreed
to provide them and subsequent holders of Senior Preferred Stock with
registration rights with respect to the Senior Preferred Stock as set forth in
this Agreement.

     The parties hereto agree as follows:

                                   ARTICLE 1

                                  DEFINITIONS

     Section 1.01.  Definitions.  (a)  The following terms, as used herein, have
the following meanings:

     "AFFILIATE" means, with respect to any Person, any other Person directly
or indirectly controlling, controlled by, or under common control with such
Person; PROVIDED that no stockholder of the Company shall be deemed an
Affiliate of any other stockholder of the Company solely by reason of any
investment in the Company.  For the purpose of this definition, the term
"CONTROL" (including with correlative meanings, the terms "CONTROLLING",
"CONTROLLED BY" and "under common control with"), when used with respect to
any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.

     "AFFILIATED EMPLOYEE BENEFIT TRUST" means any trust that is a successor
to the assets held by a trust established under an employee benefit plan
subject to ERISA or any other trust established directly or indirectly under
such plan or any other such plan having the same sponsor.

     "BOARD" means the board of directors of the Company.

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                                        -2-

     "BUSINESS DAY" means any day except a Saturday, Sunday or other day on
which commercial banks in New York City are authorized by law to close.

     "COMMON STOCK" means the common stock, par value $0.01 per share, of the
Company and any stock into which such Common Stock may thereafter be converted
or changed, and "COMMON SHARES" means shares of Common Stock.

     "COMPANY SECURITIES" means the Common Stock and securities convertible into
or exchangeable for Common Stock, preferred stock and options, warrants or other
rights to acquire Common Stock, preferred stock or any other equity security
issued by the Company.

     "HOLDER" means each Person (other than the Company) who owns any
Registrable Securities.

     "PERSON" means an individual, corporation, limited liability company,
partnership, association, trust or other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

     "PUBLIC OFFERING" means any primary or secondary public offering of
Registrable Securities of the Company pursuant to an effective registration
statement under the Securities Act other than pursuant to a registration
statement filed in connection with a transaction of the type described in Rule
145 of the Securities Act or for the purpose of issuing securities pursuant to
an employee benefit plan.

     "REGISTRABLE SECURITIES" means at any time, with respect to any Holder, any
Senior Preferred Stock purchased under the Securities Purchase Agreement and any
securities issued or issuable in respect of such Senior Preferred Stock by way
of conversion, exchange, accretion, stock dividend, split or combination,
recapitalization, merger, consolidation or other reorganization or otherwise
until (i) a registration statement covering such Senior Preferred Stock has been
declared effective by the SEC and such Senior Preferred Stock has been disposed
of pursuant to such effective registration statement, (ii) such Senior Preferred
Stock is sold under circumstances in which all of the applicable conditions of
Rule 144 (or any similar provisions then in force) under the Securities Act are
met or (iii) such Senior Preferred Stock is otherwise transferred, the Company
has delivered a new certificate or other evidence of ownership for such Senior
Preferred Stock not bearing a restrictive legend and such Senior Preferred Stock
may be resold without volume limitations without subsequent registration under
the Securities Act.

     "REGISTRATION EXPENSES" means (i) all registration and filing fees, (ii)
fees and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel in connection with blue sky
qualifications of the Registrable Securities registered), (iii) printing
expenses, (iv) internal expenses of the Company (including, without limitation,
all salaries and expenses of its officers and employees performing legal or
accounting duties), (v) reasonable fees and disbursements of counsel for the
Company and customary fees and expenses for independent certified public
accountants retained by the Company (including expenses relating to any comfort
letters or costs associated with the delivery by independent certified public
accountants of any comfort letter requested pursuant to Section 2.04(h) hereof),
(vi) the reasonable fees and expenses of any special experts retained by the
Company in connection with the applicable registration, (vii) reasonable fees

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                                        -3-

and expenses of up to one counsel for the Holders participating in the offering
selected by Holders holding the majority of the Senior Preferred Stock to be
sold for the account of all Holders in the offering, (viii) fees and expenses in
connection with any review of underwriting arrangements by the National
Association of Securities Dealers, Inc. (the "NASD"), including fees and
expenses of any "QUALIFIED INDEPENDENT UNDERWRITER", and (ix) fees and
disbursements of underwriters customarily paid by issuers or sellers of
securities; but shall not include any underwriting fees, discounts or
commissions attributable to the sale of Registrable Securities, or any
out-of-pocket expenses (except as set forth in clause  (vii) above) of the
Holders (or the agents who manage their accounts) or any fees and expenses of
underwriter's counsel.

     "SEC" means the Securities and Exchange Commission.

     "SECURITIES ACT" means the Securities Act of 1933, as amended.

     "SHELF REGISTRATION" means a shelf registration statement filed under Rule
415 under the Securities Act.

     "SUBSIDIARY" means, with respect to any Person, any entity of which
ownership interests having ordinary voting power to elect a majority of the
board of directors or other Persons performing similar functions are at the time
directly or indirectly owned by such Person.

     "UNDERWRITTEN PUBLIC OFFERING" means a firmly underwritten Public Offering.

                                     ARTICLE 2

                                REGISTRATION RIGHTS

     Section 2.01.  DEMAND REGISTRATION.  (a)  If the Company shall receive a
written request by the holders of 40% of the outstanding Registrable Securities
(the "REQUISITE HOLDERS") that the Company effect the registration under the
Securities Act, which, at the option of the Requisite Holders, may be a Shelf
Registration or an Underwritten Public Offering,  of all or a portion of such
Requisite Holders' Registrable Securities, and specifying the intended method of
disposition thereof, then the Company shall promptly give written notice of such
requested registration (a "DEMAND REGISTRATION") at least 10 days prior to the
anticipated filing date of the registration statement relating to such Demand
Registration to the Holders other than the Requisite Holders (the "OTHER
HOLDERS") and thereupon will use its best efforts to effect, as expeditiously as
possible, the registration under the Securities Act of:

          (i)  the Registrable Securities then held by the Requisite Holders
     which the Company has been so requested to register by the Requisite
     Holders; and

          (ii) all other Registrable Securities of any Other Holder who has
     requested the Company to register by written request received by the
     Company within 5 days after the receipt by such Other Holder of such
     written notice given by the Company,

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                                        -4-

all to the extent necessary to permit the disposition (in accordance with the
intended methods thereof as aforesaid) of the Registrable Securities so to be
registered; PROVIDED that, subject to Section 2.01(d) hereof, the Company shall
not be obligated to effect more than two Demand Registrations for the Holders.
In no event will the Company be required to effect more than one Demand
Registration within any four-month period.

     (b)  Promptly after the expiration of the 5-day period referred to in
Section 2.01(a)(ii) hereof, the Company will notify all the Holders to be
included in the Demand Registration of the other Holders and the number of
Registrable Securities requested to be included therein.  The Requisite Holders
requesting a registration under this Section may, at any time prior to the
effective date of the registration statement relating to such registration,
revoke such request, without liability to any of the other Holders, by providing
a written notice to the Company revoking such request, in which case such
request, so revoked, shall be considered a Demand Registration unless the
participating Holders reimburse the Company for all costs incurred by the
Company in connection with such registration or unless such revocation arose out
of the fault of the Company.

     (c)  The Company will pay all Registration Expenses in connection with any
Demand Registration.

     (d)  A registration requested pursuant to this Section shall not be deemed
to have been effected unless the registration statement relating thereto (A) has
become effective under the Securities Act and (B) has remained effective for a
period of at least 180 days (or such shorter period in which all Registrable
Securities of the Holders included in such registration have actually been sold
thereunder); PROVIDED that if (i) after any registration statement requested
pursuant to this Section becomes effective (x) such registration statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or other governmental agency or court and (y) less than 75% of the
Registrable Securities included in such registration statement is sold
thereunder, or (ii) the Maximum Offering Size (as defined below) is reduced in
accordance with Section 2.01(e) such that less than 66 2/3% of the Registrable
Securities of the Holders sought to be included in such registration are
included, such registration statement shall be at the sole expense of the
Company and shall not be considered a Demand Registration and PROVIDED, FURTHER
that, in the event of any Black Out Period (as defined), such registration
statement will remain effective for a period of time equal to 180 days plus the
length of such Black Out Period.

     (e)  If a Demand Registration involves an Underwritten Public Offering and
the managing underwriter shall advise the Company and the Selling Holders that,
in its view, (i) the number and/or type of Registrable Securities requested to
be included in such registration (including any securities which the Company
proposes to be included which are not Registrable Securities) or (ii) the
inclusion of some or all of the Registrable Securities owned by the Holders, in
any such case, exceeds the largest number and/or type of securities which can be
sold without having an adverse effect on such offering, including the price at
which such securities can be sold (the "MAXIMUM OFFERING SIZE"), the Company
will include in such registration, in the priority listed below, up to the
Maximum Offering Size:

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                                        -5-

          (A)  first, all Registrable Securities requested to be registered by
     the Holders (allocated, if necessary for the offering not to exceed the
     Maximum Offering Size, pro rata among such Holders on the basis of the
     relative number of shares of Registrable Securities so requested to be
     registered); and

          (B)  second, any securities proposed to be registered by the Company.

     (f)  Notwithstanding anything to the contrary in this Section 2.01, the
Company shall not be required to file, amend or supplement any registration
statement, any related prospectus or any document incorporated therein by
reference, for a period (a "BLACK OUT PERIOD") not to exceed, for so long as
this Agreement is in effect, an aggregate of 60 days in any calendar year, in
the event that (i) in the case of an amendment or supplement only, an event
occurs and is continuing as a result of which such registration statement
pursuant to a Demand Registration, any related prospectus or any document
incorporated therein by reference as then amended or supplemented would, in the
Company's good faith judgment, contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading,
and (ii) in all cases, (A) the Company determines in its good faith judgment
that the disclosure of such event at such time would have a material adverse
effect on the business, operations or prospects of the Company or (B) the
disclosure otherwise relates to a material business transaction which has not
yet been publicly disclosed; PROVIDED that such Black Out Period shall be
extended for any period, not to exceed an aggregate of 30 days in any calendar
year, during which the SEC is reviewing any proposed amendment or supplement to
the registration statement, any related prospectus or any document incorporated
therein by reference which has been filed by the Company.

     Section 2.02.  INCIDENTAL REGISTRATION.  (a)  If the Company proposes to
register any Company Securities under the Securities Act (other than a
registration of Common Shares (A) issuable upon exercise of employee stock
options or in connection with any employee benefit or similar plan of the
Company or (B) in connection with a direct or indirect acquisition by the
Company of another company), whether or not for sale for its own account, it
will each such time, subject to the provisions of Section 2.02(b), give prompt
written notice at least 10 days prior to the anticipated filing date of the
registration statement relating to such registration to each Holder, which
notice shall set forth such Holder's rights under this Section 2.02 and shall
offer such Holders the opportunity to include in such registration statement
such number of Registrable Securities as each such Holder may request (an
"INCIDENTAL REGISTRATION").  Upon the written request of any such Holder made
within 5 days after the receipt of notice from the Company (which request shall
specify the number of Registrable Securities intended to be disposed of by such
Holder), the Company will use its best efforts to effect the registration under
the Securities Act of all Registrable Securities which the Company has been so
requested to register by such Holders, to the extent required to permit the
disposition of the Registrable Securities so to be registered; PROVIDED that (1)
if such registration involves an Underwritten Public Offering, all such Holders
requesting to be included in the Company's registration must sell their
Registrable Securities to the underwriters selected as provided in Section
2.04(f) on the same terms and conditions as apply to the Company and (2) if, at
any time after giving written notice of its intention to register any stock
pursuant to this Section 2.02(a) and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register such securities, the Company
shall give written notice to all such Holders and, thereupon,

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                                        -6-

shall be relieved of its obligation to register any Registrable Securities in
connection with such registration (without prejudice, however, to the rights
of any Holder under Section 2.01).  No registration effected under this
Section 2.02 shall relieve the Company of its obligations to effect a Demand
Registration to the extent required by Section 2.01.  The Company will pay
all Registration Expenses in connection with each registration of Registrable
Securities requested pursuant to this Section 2.02.

     (b)  If a registration pursuant to this Section 2.02 involves an
Underwritten Public Offering (other than in the case of an Underwritten Public
Offering requested by a Holder in a Demand Registration, in which case the
provisions with respect to priority of inclusion in such offering set forth in
Section 2.01(e) shall apply) and the managing underwriter advises the Company
that, in its view, the number and/or type of shares of Registrable Securities
which the Company and the Holders intend to include in such registration exceeds
the Maximum Offering Size, the Company will include in such registration, in the
priority listed below, up to the Maximum Offering Size:

          (i)  first, so much of the securities proposed to be registered for
     the account of the Company as would not cause the offering to exceed the
     Maximum Offering Size; and

          (ii) second, all Registrable Securities requested to be included in
     such registration pursuant to Section 2.02 (allocated, if necessary for the
     offering not to exceed the Maximum Offering Size, pro rata among such
     Holders on the basis of the relative number of shares of Registrable
     Securities requested to be so included).

     Section 2.03.  HOLDBACK AGREEMENTS.  If any registration of Registrable
Securities shall be in connection with an Underwritten Public Offering, each
Holder agrees not to effect any public sale or distribution, including any sale
pursuant to Rule 144, or any successor provision, under the Securities Act, of
any Registrable Securities (in each case, other than as part of such
Underwritten Public Offering) during the 14 days prior to the effective date of
such registration statement (except as part of such registration) or during the
period after such effective date equal to the lesser of (i) such period of time
as agreed between such managing underwriter and the Company and (ii) 180 days
(such lesser period, the "APPLICABLE HOLDBACK PERIOD").

     Section 2.04.  REGISTRATION PROCEDURES.  Whenever Holders request that any
Registrable Securities be registered pursuant to Section 2.01 or 2.02, the
Company will, subject to the provisions of such Sections, use its best efforts
to effect the registration and the sale of such Registrable Securities in
accordance with the intended method of disposition thereof as quickly as
practicable, and in connection with any such request:

          (a)  The Company will as expeditiously as possible prepare and file
     with the SEC a registration statement on any form for which the Company
     then qualifies or which counsel for the Company shall deem appropriate and
     which form shall be available for the sale of the Registrable Securities to
     be registered thereunder in accordance with the intended method of
     distribution thereof, and use its best efforts to cause such filed
     registration statement to become and remain effective for a period of not
     less than 180 days.

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                                        -7-

          (b)  The Company will, if requested, prior to filing a registration
     statement or prospectus or any amendment or supplement thereto, furnish to
     each Holder holding Registrable Securities covered by such registration
     statement and each underwriter, if any, of the Registrable Securities
     covered by such registration statement copies of such registration
     statement as proposed to be filed, and thereafter the Company will furnish
     to such Holder and underwriter, if any, such number of copies of such
     registration statement, each amendment and supplement thereto (in each case
     including all exhibits thereto and documents incorporated by reference
     therein), the prospectus included in such registration statement (including
     each preliminary prospectus) and such other documents as such Holder or
     underwriter may reasonably request in order to facilitate the disposition
     of the Registrable Securities owned by such Holder.

          (c)  After the filing of the registration statement, the Company will
     promptly notify each Holder holding Registrable Securities covered by such
     registration statement of any stop order issued or threatened by the SEC
     and take all reasonable actions required to prevent the entry of such stop
     order or to remove it if entered.

          (d)  The Company will use its best efforts to (i) register or qualify
     the Registrable Securities covered by such registration statement under
     such other securities or blue sky laws of such jurisdictions in the United
     States as any Holder holding such Registrable Securities reasonably (in
     light of such Holder's intended plan of distribution) requests and (ii)
     cause such Registrable Securities to be registered with or approved by such
     other governmental agencies or authorities as may be necessary by virtue of
     the business and operations of the Company and do any and all other acts
     and things that may be reasonably necessary or advisable to enable such
     Holder to consummate the disposition of the Registrable Securities owned by
     such Holder; PROVIDED that the Company will not be required to (A) qualify
     generally to do business in any jurisdiction where it would not otherwise
     be required to qualify but for this paragraph (d), (B) subject itself to
     taxation in any such jurisdiction or (C) consent to general service of
     process in any such jurisdiction.

          (e)  The Company will immediately notify each Holder holding such
     Registrable Securities, at any time when a prospectus relating thereto is
     required to be delivered under the Securities Act, of the occurrence of an
     event requiring the preparation of a supplement or amendment to such
     prospectus so that, as thereafter delivered to the purchasers of such
     Registrable Securities, such prospectus will not contain an untrue
     statement of a material fact or omit to state any material fact required to
     be stated therein or necessary to make the statements therein not
     misleading and promptly prepare and make available to each such Holder any
     such supplement or amendment.

          (f)  (i) The Requisite Holders will have the right, in their sole
     discretion, to select an underwriter or underwriters in connection with any
     Public Offering resulting from the exercise by any such Requisite Holders
     of a Demand Registration, which underwriter or underwriters may include any
     Affiliate of any Holder and (ii) the Company will select an underwriter or
     underwriters in connection with any other Public Offering.  In connection
     with any Public Offering, the Company will enter into customary agreements
     (including an underwriting

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                                        -8-

     agreement in customary form) and take such other actions as are reasonably
     required in order to expedite or facilitate the disposition of Registrable
     Securities in any such Public Offering, including the engagement of a
     "qualified independent underwriter" in connection with the qualification
     of the underwriting arrangements with the NASD.

          (g)  Upon the execution of confidentiality agreements in form and
     substance satisfactory to the Company, the Company will make available for
     inspection by any Holder and any underwriter participating in any
     disposition pursuant to a registration statement being filed by the Company
     pursuant to this Section 2.04 and any attorney, accountant or other
     professional retained by any such Holder or underwriter (collectively, the
     "INSPECTORS"), all financial and other records, pertinent corporate
     documents and properties of the Company (collectively, the "RECORDS") as
     shall be reasonably necessary to enable them to exercise their due
     diligence responsibility, and cause the Company's officers, directors and
     employees to supply all information reasonably requested by any Inspectors
     in connection with such registration statement.  Records that the Company
     determines, in good faith, to be confidential and that it notifies the
     Inspectors are confidential shall not be disclosed by the Inspectors unless
     (i) the disclosure of such Records is necessary to avoid or correct a
     misstatement or omission in such registration statement or (ii) the release
     of such Records is ordered pursuant to a subpoena or other order from a
     court of competent jurisdiction.  Each Holder agrees that information
     obtained by it as a result of such inspections shall be deemed confidential
     and shall not be used by it as the basis for any market transactions in the
     Company Securities or its Affiliates unless and until such is made
     generally available to the public.  Each Holder further agrees that it
     will, upon learning that disclosure of such Records is sought in a court of
     competent jurisdiction, give notice to the Company and allow the Company,
     at its expense, to undertake appropriate action to prevent disclosure of
     the Records deemed confidential.

          (h)  The Company will furnish to each such Holder and to each such
     underwriter, if any, a signed counterpart, addressed to such underwriter,
     of (i) an opinion or opinions of counsel to the Company and (ii) a comfort
     letter or comfort letters from the Company's independent public
     accountants, each in customary form and covering such matters of the type
     customarily covered by opinions or comfort letters, as the case may be, as
     a majority of such Holders or the managing underwriter therefor reasonably
     requests.

          (i)  The Company will otherwise use its best efforts to comply with
     all applicable rules and regulations of the SEC, and make available to its
     stockholders, as soon as reasonably practicable, an earnings statement
     covering a period of 12 months, beginning within three months after the
     effective date of the registration statement, which earnings statement
     shall satisfy the provisions of Section 11(a) of the Securities Act.

     The Company may require each such Holder to promptly furnish in writing to
the Company such information regarding the distribution of the Registrable
Securities as the Company may from time to time reasonably request and such
other information as may be legally required in connection with such
registration.

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                                        -9-

     Each such Holder agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 2.04(e), such
Holder will forthwith discontinue disposition of Registrable Securities pursuant
to the registration statement covering such Registrable Securities until such
Holder's receipt of the copies of the supplemented or amended prospectus
contemplated by Section 2.04(e), and, if so directed by the Company, such Holder
will deliver to the Company all copies, other than any permanent file copies
then in such Holder's possession, of the most recent prospectus covering such
Registrable Securities at the time of receipt of such notice.  In the event that
the Company shall give such notice, the Company shall extend the period during
which such registration statement shall be maintained effective (including the
period referred to in Section 2.04(a)) by the number of days during the period
from and including the date of the giving of notice pursuant to Section 2.04(e)
to the date when the Company shall make available to such Holder a prospectus
supplemented or amended to conform with the requirements of Section 2.04(e).

     Each Holder agrees that, upon receipt of the notice from the Company of the
commencement of a Black Out Period (in each case, a "BLACK OUT NOTICE"), such
Person will forthwith discontinue disposition of Registrable Securities pursuant
to the applicable registration statement until such Person is advised in writing
by the Company of the termination of the Black Out Period.  Each Person
receiving a Black Out Notice hereby agrees that it will either (i) destroy any
prospectuses, other than permanent file copies, then in such Person's possession
which have been replaced by the Company with more recently dated prospectuses or
(ii) deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Person's possession of the prospectus
covering such Registrable Securities that was current at the time of receipt of
the Black Out Notice.

     Section 2.05.  INDEMNIFICATION BY THE COMPANY.  The Company agrees to
indemnify and hold harmless each Holder holding Registrable Securities covered
by a registration statement, its officers, directors and agents, and each
person, if any, who controls such Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all
losses, claims, damages and liabilities caused by any untrue statement or
alleged untrue statement of a material fact contained in any registration
statement or prospectus relating to the Registrable Securities (as amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) or any preliminary prospectus, or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any such untrue statement
or omission or alleged untrue statement or omission based upon information
furnished in writing to the Company by such Holder or on such Holder's behalf
expressly for use therein; PROVIDED that with respect to any untrue statement or
omission or alleged untrue statement or omission made in any preliminary
prospectus, or in any prospectus, as the case may be, the indemnity agreement
contained in this paragraph shall not apply to the extent that any such loss,
claim, damage, liability or expense results from the fact that a current copy of
the prospectus (or, in the case of a prospectus, the prospectus as amended or
supplemented) was not sent or given to the person asserting any such loss,
claim, damage, liability or expense at or prior to the written confirmation of
the sale of the Registrable Securities concerned to such person if it is
determined that the Company has provided such prospectus and it was the
responsibility of such Holder to provide such person with a current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be) and
such current copy of the prospectus (or such amended or supplemented prospectus,
as the case may be) would have cured the defect

<PAGE>

                                        -10-

giving rise to such loss, claim, damage, liability or expense.  The Company
also agrees to indemnify any underwriters of the Registrable Securities,
their officers and directors and each person who controls such underwriters
on substantially the same basis as that of the indemnification of the Holders
provided in this Section 2.05.

     Section 2.06.  INDEMNIFICATION BY PARTICIPATING HOLDERS.  Each Holder
holding Registrable Securities included in any registration statement agrees,
severally but not jointly, to indemnify and hold harmless the Company, its
officers, directors and agents and each Person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act to the same extent as the foregoing indemnity from the Company
to such Holder, but only (i) with respect to information furnished in writing by
such Holder or on such Holder's behalf expressly for use in any registration
statement or prospectus relating to the Registrable Securities, or any amendment
or supplement thereto, or any preliminary prospectus or (ii) to the extent that
any loss, claim, damage, liability or expense described in Section 2.05 results
from the fact that a current copy of the prospectus (or, in the case of a
prospectus, the prospectus as amended or supplemented) was not sent or given to
the Person asserting any such loss, claim, damage, liability or expense at or
prior to the written confirmation of the sale of the Registrable Securities
concerned to such Person if it is determined that it was the responsibility of
such Holder to provide such Person with a current copy of the prospectus (or
such amended or supplemented prospectus, as the case may be) and such current
copy of the prospectus (or such amended or supplemented prospectus, as the case
may be) would have cured the defect giving rise to such loss, claim, damage,
liability or expense.  Each such Holder also agrees to indemnify and hold
harmless underwriters of the Registrable Securities, their officers and
directors and each Person who controls such underwriters on substantially the
same basis as that of the indemnification of the Company provided in this
Section 2.06.  As a condition to including Registrable Securities in any
registration statement filed in accordance with Article 2 hereof, the Company
may require that it shall have received an undertaking reasonably satisfactory
to it from anyunderwriter to indemnify and hold it harmless to the extent
customarily provided by underwriters with respect to similar securities.

     Section 2.07.  CONDUCT OF INDEMNIFICATION PROCEEDINGS.  In case any
proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to
this Article 2, such Person (an "INDEMNIFIED  PARTY") shall promptly notify the
Person against whom such indemnity may be sought (the "INDEMNIFYING PARTY") in
writing and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to such Indemnified Party, and
shall assume the payment of all fees and expenses; PROVIDED that the failure of
any Indemnified Party so to notify the Indemnifying Party shall not relieve the
Indemnifying Party of its obligations hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure to notify.  In any
such proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party unless (i) the Indemnifying Party and the Indemnified
Party shall have mutually agreed to the retention of such counsel or (ii) in the
reasonable judgment of such Indemnified Party representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them.  It is understood that the Indemnifying Party shall not,
in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to any local

<PAGE>

                                        -11-

counsel) at any time for all such Indemnified Parties, and that all such fees
and expenses shall be reimbursed as they are incurred.  In the case of any
such separate firm for the Indemnified Parties, such firm shall be designated
in writing by the Indemnified Parties.  The Indemnifying Party shall not be
liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent, or if there be a final judgment
for the plaintiff, the Indemnifying Party shall indemnify and hold harmless
such Indemnified Parties from and against any loss or liability (to the
extent stated above) by reason of such settlement or judgment.  No
Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified
Party, unless such settlement includes an unconditional release of such
Indemnifid Party from all liability arising out of such proceeding.

     Section 2.08.  CONTRIBUTION.  If the indemnification provided for in this
Article 2 is unavailable to the Indemnified Parties in respect of any losses,
claims, damages or liabilities referred to herein, then each such Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such losses,
claims, damages or liabilities (i) as between the Company and the Holders
holding Registrable Securities covered by a registration statement on the one
hand and the underwriters on the other, in such proportion as is appropriate to
reflect the relative benefits received by the Company and such Holders on the
one hand and the underwriters on the other, from the offering of the Registrable
Securities, or if such allocation is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits but also
the relative fault of the Company and such Holders on the one hand and of such
underwriters on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations and (ii) as between the Company on the one
hand and each such Holder on the other, in such proportion as is appropriate to
reflect the relative fault of the Company and of each such Holder in connection
with such statements or omissions, as well as any other relevant equitable
considerations.  The relative benefits received by the Company and such Holders
on the one hand and such underwriters on the other shall be deemed to be in the
same proportion as the total proceeds from the offering (net of underwriting
discounts and commissions but before deducting expenses) received by the Company
and such Holders bear to the total underwriting discounts and commissions
received by such underwriters, in each case as set forth in the table on the
cover page of the prospectus.  The relative fault of the Company and such
Holders on the one hand and of such underwriterson the other shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company and such Holders or
by such underwriters.  The relative fault of the Company on the one hand and of
each such Holder on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by such party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     The Company and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 2.08 were determined by pro rata
allocation (even if the underwriters were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph.
The amount

<PAGE>

                                        -12-

paid or payable by an Indemnified Party as a result of the losses, claims,
damages or liabilities referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 2.08, no underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Registrable Securities underwritten by it and distributed
to the public were offered to the public exceeds the amount of any damages
which such underwriter has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission, and no
Holder shall be required to contribute any amount in excess of the amount by
which the total price at which the Registrable Securities of such Holder were
offered to the public exceeds the amount of any damages which such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.  Each such Holder's obligation to contribute
pursuant to this Section 2.08 is several in the proportion that the proceeds
of the offering received by such Holder bears to the total proceeds of the
offering received by all such Holders and not joint.

     Section 2.09.  PARTICIPATION IN PUBLIC OFFERING.  No Person may participate
in any Public Offering hereunder unless such Person (a) agrees to sell such
Person's securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and
(b) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements and the provisions of this Agreement in
respect of registration rights.

     Section 2.10.  OTHER INDEMNIFICATION.  Indemnification similar to that
specified herein (with appropriate modifications) shall be given by the Company
and each Holder participating therein with respect to any required registration
or other qualification of securities under any federal or state law or
regulation or governmental authority other than the Securities Act.

     Section 2.11.  COOPERATION BY THE COMPANY.  In the event any Holder shall
transfer any Registrable Securities pursuant to Rule 144A under the Securities
Act, the Company shall cooperate, to the extent commercially reasonable, with
such Holder and shall provide to such Holder such information as such Holder
shall reasonably request.

                                     ARTICLE 3

                                   MISCELLANEOUS

     Section 3.01.  ENTIRE AGREEMENT.  This Agreement constitutes the entire
agreement among the parties hereto and supersedes all prior agreements and
understandings, oral and written, among the parties hereto with respect to the
subject matter hereof.

<PAGE>

                                        -13-

     Section 3.02.  BINDING EFFECT; BENEFIT.  This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs,
successors, legal representatives and permitted assigns.  Nothing in this
Agreement, expressed or implied, shall confer on any Person other than the
parties hereto, and their respective heirs, successors, legal representatives
and permitted assigns, any rights, remedies, obligations or liabilities under or
by reason of this Agreement.

     Section 3.03.  ASSIGNABILITY.  This Agreement shall not be assignable by
any party hereto, except that any Person acquiring Registrable Securities who
executes and delivers to the Company an agreement to be bound by this Agreement
and shall thenceforth be a "HOLDER".  Any Holder who ceases to own beneficially
any Senior Preferred Stock shall cease to be bound by the terms hereof (other
than the provisions of Sections 2.05, 2.06, 2.07, 2.08, and 2.10 applicable to
such Holder with respect to any offering of Registrable Securities completed
before the date such Holder ceased to own any Registrable Securities).

     Section 3.04.  AMENDMENT; WAIVER; TERMINATION.  No provision of this
Agreement may be waived except by an instrument in writing executed by the party
against whom the waiver is to be effective.  No provision of this Agreement may
be amended or otherwise modified except by an instrument in writing executed by
the Company with the approval of the Board and Holders holding at least 75% of
the outstanding Registrable Securities.

     Section 3.05.  NOTICES.  All notices, requests and other communications to
any party hereunder shall be in writing (including facsimile transmissions and
shall be given,

     if to the Company, to:

          DeCrane Aircraft Holdings, Inc.
          2361 Rosecrans Avenue
          Suite 180
          El Segundo, California 90245
          Attention:  R. Jack DeCrane
          Fax:  (310) 643-0746

     with a copy to:

          Morgan, Lewis & Bockius LLP
          300 South Grand Avenue
          Twenty-Second Floor
          Los Angeles, California 90071
          Attention:  Peter Wallace, Esq.
          Fax:  (213) 612-2554

     if to any Initial Holder, to:

          DLJ Investment Partners II, Inc.
          277 Park Avenue

<PAGE>

                                        -14-

          New York, New York 10172
          Attention:  Michelle Bergman
          Fax:  (212) 892-7272

     with a copy to:

          Cahill Gordon & Reindel
          80 Pine Street
          New York, New York  10005
          Attention:  John Schuster, Esq.
          Fax:  (212) 269-5420

     All notices, requests and other communications shall be deemed received on
the date of receipt by the recipient thereof if received prior to 5 p.m. in the
place of receipt and such day is a business day in the place of receipt.
Otherwise, any such notice, request or communication shall be deemed not to have
been received until the next succeeding business day in the place of receipt.
Any notice, request or other written communication sent by facsimile
transmission shall be confirmed by certified mail, return receipt requested,
posted within one Business Day, or by personal delivery, whether courier or
otherwise, made within two Business Days after the date of such facsimile
transmission.

     Any Person who becomes a Holder shall provide its address and fax number to
the Company, which shall promptly provide such information to each other Holder.

     Section 3.06.  HEADINGS.  The headings contained in this Agreement are for
convenience only and shall not affect the meaning or interpretation of this
Agreement.

     Section 3.07.  COUNTERPARTS.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall be deemed to be one and the same instrument.

     Section 3.08.  APPLICABLE LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO THE CONFLICTS OF LAW RULES OF SUCH STATE.

     Section 3.09.  SPECIFIC ENFORCEMENT.  Each party hereto acknowledges that
the remedies at law of the other parties for a breach or threatened breach of
this Agreement would be inadequate and, in recognition of this fact, any party
to this Agreement, without posting any bond, and in addition to all other
remedies which may be available, shall be entitled to obtain equitable relief in
the form of specific performance, a temporary restraining order, a temporary or
permanent injunction or any other equitable remedy which may then be available.

     Section 3.10.  CONSENT TO JURISDICTION.  Any suit, action or proceeding
seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall be
brought in the United States District Court for the Southern District

<PAGE>

                                        -15-

of New York or any other New York State court sitting in New York City, and
each of the parties hereby consents to the exclusive jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit,
action or proceeding and irrevocably waives, to the fullest extent permitted
by law, any objection which it may now or hereafter have to the laying of the
venue of any such suit, action or proceeding in any such court or that any
such suit, action or proceeding which is brought in any such court has been
brought in an inconvenient forum.  Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether within
or without the jurisdiction of any such court.  Without limiting the
foregoing, each party agrees that service of process on such party as
provided in Section 3.05 shall be deemed effective service of process on such
party.

                              [SIGNATURE PAGES FOLLOW]

<PAGE>

                                        S-1

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                                   DECRANE AIRCRAFT HOLDINGS, INC.

                                   By:
                                        ---------------------------------
                                        Name:
                                        Title:

                                   DLJ INVESTMENT PARTNERS II, L.P.

                                   By:  DLJ INVESTMENT PARTNERS II, INC., as
                                        managing general partner

                                   By:
                                        ---------------------------------
                                        Name:
                                        Title:

                                   DLJ INVESTMENT PARTNERS, L.P.

                                   By: DLJ INVESTMENT PARTNERS, INC. as,
                                        managing general partner

                                   By:
                                        ---------------------------------
                                        Name:
                                        Title:

<PAGE>

                                     S-2

                                   DLJ INVESTMENT FUNDING II, INC.

                                   By:
                                        ---------------------------------
                                        Name:
                                        Title:

                                   DLJ ESC II, L.P.

                                   By:  DLJ LBO PLANS MANAGEMENT CORPORATION, as
                                        managing general partner

                                   By:
                                        ---------------------------------
                                        Name:
                                        Title:<PAGE>

                                                                    EXHIBIT 10.1
                          SECURITIES PURCHASE AGREEMENT

                                   dated as of

                                  June 30, 2000

                                      among

                         DECRANE AIRCRAFT HOLDINGS, INC.

                              DECRANE HOLDINGS CO.

                                       and

                           THE PURCHASERS PARTY HERETO

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

                                    ARTICLE I

                                   DEFINITIONS

Section 1.1.      Definitions.................................................1

                                   ARTICLE II

              PURCHASE AND SALE OF SECURITIES; TERMS OF SECURITIES

Section 2.1.      Commitment to Purchase......................................3
Section 2.2.      Procedures..................................................3

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

Section 3.1.      Incorporation of Representations and Warranties in
                  Credit Agreement.............................................4
Section 3.2.      Authorization, Execution and Enforceability..................4
Section 3.3.      Capitalization...............................................5
Section 3.4.      Solicitation.................................................5
Section 3.5.      Non-fungibility..............................................5
Section 3.6.      Governmental Authorization...................................5
Section 3.7.      Noncontravention.............................................5
Section 3.8.      Litigation...................................................6

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF PURCHASERS

Section 4.1.      Purchase for Investment; Authority; Binding Agreement........6

                                    ARTICLE V

                        CONDITIONS PRECEDENT TO PURCHASE

Section 5.1.      Conditions to Purchasers' Obligation at Takedown.............7
Section 5.2.      Conditions to the Company's Obligations......................8

                                        -i-

<PAGE>
                                   ARTICLE VI

                                    COVENANTS

Section 6.1.      Limitation on Dividends on and Redemption of Holdings
                  Capital Stock................................................8
Section 6.2.      FINANCIAL INFORMATION........................................9

                                   ARTICLE VII

                                  MISCELLANEOUS

Section 7.1.      Notices.....................................................10
Section 7.2.      No Waivers, Amendments......................................10
Section 7.3.      Indemnification.............................................10
Section 7.4.      Expenses....................................................11
Section 7.5.      Payment.....................................................11
Section 7.6.      Successors and Assigns......................................11
Section 7.7.      Brokers.....................................................11
Section 7.8.      New York Law; Submission to Jurisdiction; Waiver of Jury
                  Trial.......................................................11
Section 7.9.      Severability................................................12
Section 7.10.     Counterparts................................................12
Section 7.11.     Confidentiality.............................................12
Section 7.12.     Survival of Representations and Warranties..................13
Section 7.13.     Construction................................................13
Section 7.14.     Integration.................................................13
Section 7.15.     Headings....................................................13

                                    SCHEDULES

Schedule 2.1      Commitments to Purchase
Schedule 3.3      Pro Forma Capitalization of Holdings and the Company

                                    EXHIBITS

Exhibit A         Form of Senior Preferred Stock Certificate of Designations,
                  Preferences and Rights
Exhibit B         Form of Senior Preferred Stock Registration Rights Agreement
Exhibit C         Form of Warrant
Exhibit D         Form of Amended and Restated Investors' Agreement
Exhibit E         Form of Credit Agreement Amendment

                                      -ii-

<PAGE>

                          SECURITIES PURCHASE AGREEMENT

                  SECURITIES PURCHASE AGREEMENT (this "AGREEMENT"), dated as
of June 30, 2000 among DeCrane Aircraft Holdings, Inc., a Delaware
corporation (the "COMPANY"), DeCrane Holdings Co., a Delaware corporation
("HOLDINGS" and, together with the Company, the "ISSUERS") and the purchasers
listed on the signature pages hereto (the "PURCHASERS").

                  The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.1. DEFINITIONS. The following terms, as used
herein, have the following meanings:

                  "AFFILIATE" means, with respect to any Person, any other
Person directly or indirectly controlling, controlled by, or under common
control with such Person. For the purpose of this definition, the term
"CONTROL" (including with correlative meanings, the term "CONTROLLING",
"CONTROLLED BY" and "UNDER COMMON CONTROL WITH") when used with respect to
any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.

                  "AGREEMENT" means this Agreement, as amended, supplemented
or otherwise modified from time to time in accordance with its terms.

                  "AMENDED AND RESTATED INVESTORS' AGREEMENT" means the
Amendment and Restated Investor's Agreement, substantially in the form set
forth on EXHIBIT D hereto.

                  "BUSINESS DAY" means any day except a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or
required by law to close.

                  "COMPANY" is defined in the preamble.

                  "CREDIT AGREEMENT" means the Third Amended and Restated
Credit Agreement, dated as of May 11, 2000, among the Company, the lenders
party thereto, DLJ Capital Funding, Inc., as syndication agent, and The First
National Bank of Chicago, as administrative agent for the lenders, as
amended, modified, amended and restated, renewed, refunded, replaced or
refinanced from time to time to the date of this Agreement.

                  "CREDIT AGREEMENT AMENDMENT" means the First Amendment to
the Credit Agreement, substantially in the form set forth on EXHIBIT E hereto.

                  "DIVIDEND PERIOD" has the meaning given to such term in the
Senior Preferred Stock Certificate of Designations.

<PAGE>

                  "DLJ HOLDERS" means DLJ Investment Partners II, L.P. and
any Affiliate thereof holding Securities.

                  "DOLLARS" or "$" mean lawful currency of the United States
of America.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934,
as amended.

                  "FINANCING DOCUMENTS" means this Agreement, the Senior
Preferred Stock Certificate of Designations, the Warrants, the Senior
Preferred Stock Registration Rights Agreement and the Amended and Restated
Investors' Agreement.

                  "HOLDER" means any holder of any Securities.

                  "HOLDINGS" is defined in the preamble.

                  "HOLDINGS CAPITAL STOCK" means all outstanding capital
stock of Holdings.

                  "HOLDINGS COMMON STOCK" means the authorized common stock,
par value $.01 per share, of Holdings.

                  "ISSUANCE DATE" is defined in Section 2.1.

                  "ISSUERS" is defined in the preamble.

                  "MATERIAL ADVERSE EFFECT" means (i) a material adverse
effect upon the business, operations, properties, assets, financial condition
or prospects of the Issuers and their respective subsidiaries, taken as a
whole, or (ii) the material impairment of the ability of the Issuers to
perform their obligations under the Financing Documents or the Credit
Agreement Amendment, or of the Holders to enforce such obligations under the
Financing Documents.

                  "PARITY SECURITIES" has the meaning given to such term in
the Senior Preferred Stock Certificate of Designations.

                  "PERSON" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, government (or any agency or political subdivision thereof) or other
entity of any kind.

                  "PURCHASERS" is defined in the preamble.

                  "SECURITIES" means the Senior Preferred Stock and the
Warrants.

                  "SECURITIES ACT" means the Securities Act of 1933, as
amended.

                  "SENIOR PREFERRED STOCK" means the Company's 16% Senior
Redeemable Exchangeable Preferred Stock due 2009, with such terms described
in the Senior Preferred Stock Certificate of Designations.

                                      -2-

<PAGE>

                  "SENIOR PREFERRED STOCK CERTIFICATE OF DESIGNATIONS" means
the Certificate of Designations Preferences and Rights substantially in the
form of EXHIBIT A hereto.

                  "SENIOR PREFERRED STOCK REGISTRATION RIGHTS AGREEMENT"
means the Senior Preferred Stock Registration Rights Agreement by and among
the Company and the Purchasers, substantially in the form set forth on
EXHIBIT B hereto.

                  "WARRANTS" means Class B Warrants to purchase shares of
Holdings Common Stock, substantially in the form set forth on EXHIBIT C
hereto.

                  "WARRANT SHARES" has the meaning given to such term in the
Warrants.

                                   ARTICLE II

              PURCHASE AND SALE OF SECURITIES; TERMS OF SECURITIES

                  Section 2.1. COMMITMENT TO PURCHASE. Subject to the terms
and conditions set forth herein and in reliance on the representations and
warranties of the Issuers contained herein and their representations and
warranties in the other Financing Documents, the Issuers agree to issue and
sell to the Purchasers, and each Purchaser agrees to purchase on the date
hereof or such other date as the Issuers and Purchasers agree (the "ISSUANCE
DATE") the amount of Securities set forth opposite such Purchaser's name
Schedule 2.1. The purchase price shall be equal to the aggregate liquidation
preference of Senior Preferred Stock being purchased by such Purchaser.

                  Section 2.2. PROCEDURES. (a) On the Issuance Date, the
Purchasers, severally and not jointly, shall deliver by wire transfer, to the
account number of the Issuers specified by the Issuers in writing no later
than 10:00 A.M. (New York City time) on the Issuance Date, immediately
available funds in an amount equal to the aggregate purchase price of the
Securities to be purchased by the Purchasers hereunder on such Issuance Date,
less the aggregate amount of expenses payable to the Purchasers on such date
pursuant to Section 7.4.

                  (b)   On the Issuance Date, against payment as set forth in
clause (a) above, the Issuers shall deliver to each Purchaser a single
certificate representing Senior Preferred Stock and a single Warrant
representing the amount of such Securities to be purchased by such Purchaser
registered in the name of such Purchaser, or, if requested by such Purchaser,
separate certificates representing Senior Preferred Stock and/or Warrants in
such other denominations and registered in such name or names as shall be
designated by such Purchaser by notice to the Company at least one Business
Day prior to the Issuance Date.

                                      -3-
<PAGE>

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

                  Each Issuer represents and warrants, jointly and severally, to
the Purchasers as set forth below:

                  Section 3.1. INCORPORATION OF REPRESENTATIONS AND WARRANTIES
IN CREDIT AGREEMENT. Each Issuer hereby represents and warrants, for the benefit
of the Purchasers and the Holders from time to time of the Securities, that the
representations and warranties contained in the following sections of the Credit
Agreement are true and correct as of the Issuance Date:

                  (a)    5.1 (Organization, Powers, Qualifications, Good
Standing, Business and Subsidiaries);

                  (b)    5.3 (Financial Condition);

                  (c)    5.4 (No Material Adverse Change; No Restricted Junior
Payments);

                  (d)    5.5 (Title to Properties; Liens; Real Property);

                  (e)    5.6 (Litigation; Adverse Facts);

                  (f)    5.7 (Payment of Taxes);

                  (g)    5.8 (Governmental Regulation);

                  (h)    5.9 (Securities Activities);

                  (i)    5.10 (Employee Benefit Plans);

                  (j)    5.11 (Environmental Protection);

                  (k)    5.12 (Employee Matters);

                  (l)    5.13 (Solvency);

                  (m)    5.15 (Disclosure);

                  (n)    5.16 (Year 2000 Compliance).

                  Section 3.2. AUTHORIZATION, EXECUTION AND ENFORCEABILITY. Each
of the Financing Documents to which it is a party and the Credit Agreement
Amendment constitutes its valid and binding agreement of such party enforceable
in accordance with its terms, subject to applicable bankruptcy, insolvency and
other similar laws affecting creditors' rights generally and equitable
principles of general applicability. The shares of Senior Preferred Stock being
sold to the Purchasers have been duly and validly authorized and when issued and
delivered against payment therefor in accordance

                                      -4-

<PAGE>

with the terms hereof, will be validly issued, fully paid, non-assessable and
free of preemptive rights. The Warrants, when executed and delivered, will
constitute valid and binding obligations of Holdings in accordance with their
terms. Holdings will reserve and keep available for issuance upon exercise of
the Warrants the total number of Warrant Shares deliverable upon exercise of
all of the Warrants. The issuance of the Warrant Shares has been validly
authorized and, when issued and sold in accordance with the Warrants, will be
validly issued, fully paid, nonassessable and free of preemptive rights.

                  Section 3.3. CAPITALIZATION. At the Issuance Date, after
giving effect to the consummation of the issuance and sale of Securities
hereunder, the capitalization of the Issuers will be as set forth on Schedule
3.3. Except as set forth on Schedule 3.3, there are no subscriptions, options,
warrants, rights, convertible securities, exchangeable securities or other
agreements or commitments of any character pursuant to which either Issuer is
required to issue or purchase any shares of its capital stock.

                  Section 3.4. SOLICITATION. No form of general solicitation or
general advertising was used by the Issuers or, to the best of their knowledge,
any other Person acting on behalf of the Issuers, in connection with the offer
and sale of the Securities. Neither the Issuers nor any Person acting on behalf
of the Issuers has, either directly or indirectly, sold or offered for sale to
any Person any of the Securities or any other security of the Issuers similar to
the Senior Preferred Stock or the Warrants, except as contemplated by this
Agreement, and the Issuers represent that neither the Issuers nor any person
acting on their behalf other than the Purchasers and its Affiliates will sell or
offer for sale to any Person any such security to, or solicit any offers to buy
any such security from, or otherwise approach or negotiate in respect thereof
with, any Person or Persons so as thereby to bring the issuance or sale of any
of the Senior Preferred Stock or Warrants within the provisions of Section 5 of
the Securities Act.

                  Section 3.5. NON-FUNGIBILITY. When the Securities are issued
and delivered pursuant to this Agreement, neither the Senior Preferred Stock nor
the Warrants will be of the same class (within the meaning of Rule 144A under
the Securities Act) as securities which are (i) listed on a national securities
exchange registered under Section 6 of the Exchange Act or (ii) quoted in a U.S.
automated inter-dealer quotation system.

                  Section 3.6. GOVERNMENTAL AUTHORIZATION. The execution,
delivery and performance by the Issuers of this Agreement and the consummation
of the transactions contemplated hereby require no material order, license,
consent, authorization or approval of, or exemption by, or action by or in
respect of, or notice to, or filing or registration with, any governmental body,
agency or official except such as have been made or obtained.

                  Section 3.7. NONCONTRAVENTION. The execution, delivery and
performance by the Issuers of this Agreement and the consummation of the
transactions contemplated hereby does not and will not (i) violate the articles
of incorporation or by-laws of the Issuers, (ii) violate any material applicable
law, rule, regulation, judgment, injunction, order or decree, (iii) require any
material consent (other than consents obtained in satisfaction of conditions
precedent set forth in Article V) or other action by any Person under,
constitute a material default under, or give rise to any material right of
termination, cancellation or acceleration of any right or obligation of the
Issuers or to a loss of any material benefit to which the Issuers are entitled
under any provision of any agreement or other in

                                      -5-

<PAGE>

strument binding upon the Issuers or any of the Issuers' assets or properties
or (iv) result in the creation or imposition of any material lien on any
property or asset of the Issuers.

                  Section 3.8. LITIGATION. There is no action, suit,
investigation or proceeding pending against, or to the knowledge of the Issuers,
threatened against or affecting the Issuers or any of their properties before
any court or arbitrator or any governmental body, agency or official which could
reasonably be expected to have a material adverse effect on the transactions
contemplated hereby.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF PURCHASERS

                  Section 4.1. PURCHASE FOR INVESTMENT; AUTHORITY; BINDING
AGREEMENT. Each of the Purchasers represents and warrants, severally and not
jointly, as to itself only, to the Issuers that:

                  (a)    such Purchaser is an Accredited Investor within the
meaning of Rule 501(a) under the Securities Act and the Securities to be
acquired by it pursuant to this Agreement are being acquired for its own account
without a view toward distribution in violation of the Securities Act and the
Purchaser will not offer, sell, transfer, pledge, hypothecate or otherwise
dispose of the Securities unless pursuant to a transaction either registered
under, or exempt from registration under, the Securities Act;

                  (b)    the execution, delivery and performance of this
Agreement and the purchase of the Securities pursuant hereto are within such
Purchaser's corporate powers and have been duly and validly authorized by all
requisite corporate action;

                  (c)    this Agreement has been duly executed and delivered
by such Purchaser;

                  (d)    this Agreement constitutes a valid and binding
agreement of such Purchaser enforceable in accordance with its terms; and

                  (e)    such Purchaser has such knowledge and experience in
financial and business matters so as to be capable of evaluating the merits and
risks of its investment in the Securities and such Purchaser is capable of
bearing the economic risks of such investment.

                                    ARTICLE V

                        CONDITIONS PRECEDENT TO PURCHASE

                  Section 5.1. CONDITIONS TO PURCHASERS' OBLIGATION AT TAKEDOWN.
The obligation of the Purchasers (which is several and not joint) to purchase
the Securities to be issued and sold by the Issuers on the Issuance Date is
subject to the satisfaction of the following conditions contemporaneously with
such purchase:

                                      -6-

<PAGE>

                  (a)    The Purchasers shall have received copies of each of
the Financing Documents and the Credit Agreement Amendment, each of which shall
be in full force and effect and no term or condition thereof shall have been
amended, waived or otherwise modified without the prior consent of the
Purchasers.

                  (b)    There shall exist no action, suit, investigation,
litigation or proceeding pending or to the Company's knowledge threatened in any
court or before any arbitrator or any governmental instrumentality that could
reasonably be expected to (A) have a material adverse effect on any Financing
Document, the Credit Agreement Amendment or the other transactions contemplated
thereby or hereby or (B) result in a Material Adverse Effect.

                  (c)    The Purchasers shall have received an opinion, dated
on or prior to the Issuance Date, of Morgan Lewis & Bockius LLP in form and
substance satisfactory to the Purchasers.

                  (d)    All fees and expenses payable to the Purchasers on or
prior to the Issuance Date (other than amounts to be netted against the purchase
price of the Securities pursuant to Section 2.2(a)) shall have been paid in
full.

                  (e)    The representations and warranties of the Issuers
contained in the Financing Documents shall be true and correct in all material
respects on and as of the Issuance Date as if made on and as of such date
(unless stated to relate solely to an earlier date, in which case, such
representations and warranties shall be true and correct in all material
respects as of such earlier date) and each Issuer shall have performed and
complied with all covenants and agreements required by the Financing Documents
and the Credit Agreement Amendment to be performed by it or complied with by it
at or prior to the Issuance Date, and the Purchasers shall have received
certificates from authorized officers of the Issuers to such effect.

                  (f)    The Company's certificate of incorporation shall have
been amended to authorize the issuance of the Senior Preferred Stock and the
Senior Preferred Stock Certificate of Designations shall have been duly filed at
the office of the Secretary of State of the State of Delaware.

                  (g)    The Purchasers shall have received the Warrants and
certificates representing the Senior Preferred Stock to be issued on the
Issuance Date, duly executed in the denominations and registered in the names
specified pursuant to Section 2.2.

                  (h)    The Purchasers shall have received a certificate of
the Secretary or Assistant Secretary of each of the Issuers, dated as of a date
reasonably satisfactory to the Purchasers, certifying (A) (i) that attached
thereto is a true, complete and correct copy of resolutions duly adopted by the
Board of Directors of such Issuer authorizing (1) the execution, delivery and
performance of the Financing Documents to which it is a party and the Credit
Agreement Amendment, and (2) the transactions contemplated hereby, and (ii) that
such resolutions have not been amended, modified, revoked or rescinded, (B) as
to the incumbency and specimen signature of each officer executing any Financing
Documents or the Credit Agreement Amendment on its behalf, and (C) true and
complete copies of its constituent documents, and such certificates and the
resolutions attached thereto shall be in form and substance satisfactory to the
Purchasers.

                                      -7-

<PAGE>

                  (i)    The purchase of the Securities by the Purchasers
shall not be prohibited by any applicable law, court order or governmental
regulation.

                  (j)    Since December 31, 1999, there shall not have
occurred any material adverse change in the business, assets, financial
condition, operations or properties or prospects of the Issuers and their
respective subsidiaries, taken as a whole.

                  (k)    The Purchasers shall have received such additional
certificates, legal and other opinions and documentation as they shall
reasonably request.

                  Section 5.2. CONDITIONS TO THE COMPANY'S OBLIGATIONS. The
obligations of the Issuers to issue and sell the Securities to the Purchasers
pursuant to this Agreement are subject to the satisfaction, at or prior to the
Issuance Date, of the following conditions:

                  (a)    The representations and warranties of the Purchasers
contained herein shall be true and correct in all material respects on and as of
the Issuance Date as if made on and as of such date.

                  (b)    The issuance and sale of the Securities shall not be
prohibited by any applicable law, court order or governmental regulation.

                  (c)    Contemporaneously therewith, the Issuers shall have
received the purchase price for the Securities to be purchased by the Purchasers
in accordance with Section 2.2(a).

                  (d)    The Issuers shall have received from each Purchaser
its executed signature page to the Amended and Restated Investors Agreement.

                                   ARTICLE VI

                                    COVENANTS

                  Section 6.1. LIMITATION ON DIVIDENDS ON AND REDEMPTION OF
HOLDINGS CAPITAL STOCK. The Issuers make the following covenants for the benefit
of the Holders of Senior Preferred Stock:

                  (a)    So long as any shares of Senior Preferred Stock are
outstanding, no dividends (other than dividends or distributions paid in shares
of, or options, warrants or rights to subscribe for or purchase shares of,
Holdings Capital Stock) shall be declared or paid or set apart for payment or
other distribution declared or made upon Holdings Capital Stock for any
consideration by Holdings, directly or indirectly (except by conversion into or
exchange for Holdings Capital Stock), unless in each case (i) the full
cumulative dividends on all outstanding shares of the Senior Preferred Stock and
any other Parity Securities shall (whether or not payable in cash) have been
paid in cash or set apart for payment in cash for all past Dividend Periods with
respect to Senior Preferred Stock and all past dividend periods with respect to
such Parity Securities and (ii) (whether or not payable in cash) sufficient
funds shall have been paid or set apart for the payment in cash of the dividend
for the current

                                      -8-

<PAGE>

Dividend Period with respect to the Senior Preferred Stock and the current
dividend period with respect to such Parity Securities.

                  (b)    So long as any shares of Senior Preferred Stock are
outstanding, no Holdings Capital Stock shall be redeemed by Holdings or any of
its subsidiaries, purchased or otherwise acquired for any consideration (or any
moneys be paid to or made available for a sinking fund for the redemption of any
shares of any such stock) by Holdings, directly or indirectly (except by
conversion into or exchange for Holdings Capital Stock).

                  (c)    Sections 6.1(a) and (b) will not prohibit:

                         (i) the repurchase, redemption or other acquisition or
              retirement for value of any Holdings Capital Stock held by any
              member of Holdings' or any of its subsidiaries' management
              pursuant to any management equity subscription agreement or stock
              option agreement, PROVIDED that the aggregate price paid for all
              such repurchased, redeemed, acquired or retired Holdings Capital
              Stock shall not exceed:

                                    (x) $4.0 million in any calendar year with
                           unused amounts in any calendar year being carried
                           over to succeeding calendar years subject to a
                           maximum, without giving effect to the following
                           clause (y), of $7.0 million in any calendar year,
                           plus

                                    (y) the aggregate cash proceeds received by
                           Holdings during such calendar year from any
                           reissuance of Holdings Capital Stock by Holdings to
                           members of management of Holdings and its
                           subsidiaries; and

                        (ii) repurchases of Holdings Capital Stock deemed to
              occur upon exercise of stock options if such Holdings Capital
              Stock represent a portion of the exercise price of such options.

                  Section 6.2. FINANCIAL INFORMATION. The Issuers agree to
deliver to any Holder who is a DLJ Holder any financial information of this
Issuers delivered to the lenders under the Credit Facility or any equityholder
of the Company concurrently with such delivery to such other person.

                                   ARTICLE VII

                                  MISCELLANEOUS

                  Section 7.1. NOTICES. All notices, demands and other
communications to any party hereunder shall be in writing (including facsimile
or similar writing) and shall be given to such party at its address set forth on
the signature pages hereof, or such other address as such party may hereinafter
specify for the purpose. Each such notice, demand or other communication shall
be effective (i) if given by facsimile, when such facsimile is transmitted to
the facsimile number specified on the signature page hereof, or (ii) if given by
overnight courier, addressed as aforesaid or by any other means, when delivered
at the address specified in this Section.

                                      -9-

<PAGE>

                  Section 7.2. NO WAIVERS, AMENDMENTS. (a) No failure or delay
on the part of any party in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. The remedies provided for
herein are cumulative and are not exclusive of any remedies that may be
available to any party at law or in equity or otherwise.

                  (b) Any provision of this Agreement may be amended,
supplemented or waived if, but only if, such amendment, supplement or waiver is
in writing and is signed by the Issuers and the Holders of the majority of the
outstanding Securities, EXCEPT amendments of Section 6.1, which require consent
by the Issuers and Holders of a majority of the outstanding Senior Preferred
Stock, and Section 6.2, which require consent by the Issuers and the Holders of
a majority of the outstanding Warrants.

                  (c) In determining whether the requisite Holders of Senior
Preferred Stock and/or Warrants have concurred in any direction, consent, or
waiver as provided in this Agreement or in the Senior Preferred Stock
Certificate of Designations, Senior Preferred Stock which is owned by the
Issuers, or, except for the DLJ Holders and their Affiliates (other than
Holdings and its subsidiaries), by any Person controlling, controlled by, or
under common control with any of the foregoing, shall be disregarded and deemed
not to be outstanding for the purpose of any such determination; and PROVIDED,
FURTHER, that no such amendment, supplement or waiver which affects the rights
of the Holders and their Affiliates otherwise than solely in their capacities as
Holders of Senior Preferred Stock shall be effective with respect to them
without their prior written consent

                  Section 7.3. INDEMNIFICATION. (a) The Issuers hereby
indemnify, jointly and severally, each Purchaser and its affiliates, limited
partners, general partners, directors, members, officers and employees against
and agrees to hold each of them harmless from any and all damage, loss,
liability and expense (including, without limitation, reasonable expenses of
investigation and reasonable attorneys' fees and expenses in connection with any
action, suit or proceeding) ("DAMAGES") incurred or suffered by any such party
arising out of any misrepresentation or breach of warranty, covenant or
agreement made or to be performed by the Issuers pursuant to this Agreement.

                  (b) Each Purchaser hereby indemnifies, severally and not
jointly, each Issuer and its affiliates, limited partners, general partners,
directors, members, officers and employees against and agrees to hold each of
them harmless from any and all Damages incurred or suffered by any such party
arising out of any misrepresentation or breach of warranty, covenant or
agreement made or to be performed by such Purchaser pursuant to this Agreement;
PROVIDED that such Purchaser's maximum liability under this Section 7.3(b) shall
not exceed the amount of the consideration paid by such Purchaser to the Issuer.

                  (c) After the Issuance Date, Section 7.3 will provide the
exclusive remedy for any misrepresentation, breach of warranty, covenant or
other agreement or other claim arising out of this Agreement or the transactions
contemplated hereby except to the extent any such claim is in respect of fraud.

                  Section 7.4. EXPENSES. The Company agrees to pay all
reasonable out-of-pocket costs, expenses and other payments of the Purchasers in
connection with the purchase and sale of the

                                      -10-

<PAGE>

Securities as contemplated by this Agreement including without limitation (i)
reasonable fees and disbursements of not more than one special counsel for
all of the Purchasers incurred in connection with the preparation of this
Agreement and (ii) all reasonable out-of-pocket expenses of the Purchasers,
including reasonable fees and disbursements of such special counsel, in
connection with any waiver or consent hereunder or any amendment hereof.

                  Section 7.5. PAYMENT. The Company agrees that, so long as a
Purchaser shall own any Senior Preferred Stock purchased by it from the Company
hereunder, the Company will make payments to such Purchaser of all amounts due
thereon by wire transfer by 1:00 P.M. (New York City time) on the date of
payment to such account as is specified beneath the Purchasers' name on the
signature page hereof or to such other account or such other similar manner as
such Purchaser may designate to the Company in writing.

                  Section 7.6. SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon and shall inure to the benefit of the Issuers, the Purchasers and
their respective successors and assigns; PROVIDED that no party may assign,
delegate or otherwise transfer any of its rights or obligations under this
Agreement without the consent of each other party hereto.. All provisions
hereunder purporting to give rights to the Purchasers and its Affiliates, or to
Holders are for the express benefit of such Persons.

                  Section 7.7. BROKERS. The Company represents and warrants that
it has not employed any broker, finder, financial advisor or investment banker
who might be entitled to any brokerage, finder's or other fee or commission in
connection with the sale of the Securities.

                  Section 7.8. NEW YORK LAW; SUBMISSION TO JURISDICTION; WAIVER
OF JURY TRIAL. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY
FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                  Section 7.9. SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

                                      -11-

<PAGE>

                  Section 7.10. COUNTERPARTS. This Agreement may be executed in
any number of counterparts, each of which shall be an original with the same
effect as if the signatures thereto and hereto were upon the same instrument.

                  Section 7.11. CONFIDENTIALITY. (a) The Company acknowledges
and agrees that: (i) certain Affiliates of the Purchasers are a full service
financial firm and as such may from time to time effect transactions for their
own account or the account of customers, and hold positions in loans or options
on loans of Persons that may be the subject of this arrangement; (ii) the
Purchasers may employ the services of Donaldson, Lufkin & Jenrette Securities
Corporation and its Affiliates in providing certain services hereunder and may,
subject to clause (b) below, exchange with such entities information concerning
the Issuers and such Affiliates will be entitled to the benefits afforded the
Purchasers hereunder, and (iii) the Purchasers or their respective Affiliates
may be providing financing or other services to Persons whose interests may
conflict with the interests of the Issuers.

                  (b) The Purchasers and each other Holder agree to keep
confidential non-public information provided to the Purchasers and designated by
either Issuer as "confidential"; PROVIDED that nothing herein shall prevent the
Purchasers or such other Holder from disclosing any such information (i) to any
Person that receives such information having been made aware of, and which
agrees to maintain, the confidential nature thereof in order to facilitate or
enable the Purchasers or such other Holder to syndicate, sell, transfer or
assign any portion of its securities, (ii) to any Holder, (iii) to its
employees, directors, agents, attorneys, accountants and other professional
advisors who receive such information having been made aware of the confidential
nature thereof and have agreed to comply with the confidentiality obligations
hereunder, (iv) upon the request or demand of any governmental authority having
jurisdiction over any Purchaser, (v) in response to any order of any court or
other governmental authority or as may otherwise be required pursuant to any
requirement of law, (vi) which has been publicly disclosed other than in breach
of this Agreement or (vii) in connection with the exercise of any remedy
hereunder.

                  Section 7.12. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made hereunder, in any document, certificate or
statement delivered pursuant hereto or in connection herewith and the covenants
made in Article Six shall survive the execution and delivery of this Agreement
and the issuance of the Securities.

                  Section 7.13. CONSTRUCTION. Each covenant contained herein
shall be construed (absent express provision to the contrary) as being
independent of each other covenant contained herein, so that compliance with any
one covenant shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision herein refers to
action to be taken by any Person, or which such person is prohibited from
taking, such provision shall be applicable whether such action is taken directly
or indirectly by such Person.

                  Section 7.14. INTEGRATION. This Agreement represents the
agreement of the parties hereto with respect to the subject matter hereof, and
there are no promises, undertakings, representations or warranties by the
Purchasers relative to the subject matter hereof not expressly set forth herein
or in the other Financing Documents.

                                      -12-

<PAGE>

                  Section 7.15. HEADINGS. Section headings used herein and in
the table of contents are for convenience only and are not to effect the
construction of, or be taken into consideration in interpreting this Agreement
and the other Financing Documents.

                            [Signature Pages Follow]

                                      -13-

<PAGE>

                                       S-1

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers, as of the
date first above written.

                                      DECRANE AIRCRAFT HOLDINGS, INC.

                                      By: _________________________________
                                          Name:
                                          Title:

                                      Address for Notices:

                                          2361 Rosencrans Avenue
                                          Suite 180
                                          El Segundo, CA  90245
                                          Telecopier:  310-643-0746
                                          Attention:  R. Jack DeCrane

                                      DECRANE HOLDINGS CO.

                                      By: _________________________________
                                          Name:
                                          Title:

                                            Address for Notices:

                                            2361 Rosencrans Avenue
                                            Suite 180
                                            El Segundo, CA  90245
                                            Telecopier:  310-643-0746
                                            Attention:  R. Jack DeCrane

<PAGE>

                                        S-2

                                        Purchasers:

                                        DLJ INVESTMENT PARTNERS, L.P.

                                        By:  DLJ INVESTMENT PARTNERS,
                                              INC., as managing general partner

                                        By: _________________________________
                                             Name:
                                             Title:

                                        Address for Notices:

                                             277 Park Avenue
                                             New York, NY 10172
                                             Telecopier:  212-892-7272
                                             Attention:  Michelle Bergman

                                        Wiring Instructions:

                                             A/C  # 275-011781
                                             Attention:  Ruchi Khurana

<PAGE>

                                        S-3

                                        DLJ INVESTMENT PARTNERS II, L.P.

                                        By:  DLJ INVESTMENT PARTNERS II,
                                               INC., as managing general partner

                                        By: _________________________________
                                             Name:
                                             Title:

                                        Address for Notices:

                                             277 Park Avenue
                                             New York, NY 10172
                                             Telecopier: 212-892-7272
                                             Attention:   Michelle Bergman

                                        Wiring Instructions:

                                             A/C  # 275-011781
                                             Attention:  Ruchi Khurana

<PAGE>

                                        S-4

                                        DLJ INVESTMENT FUNDING II, INC.

                                        By: _________________________________
                                             Name:
                                             Title:

                                        Address for Notices:

                                             277 Park Avenue
                                             New York, NY 10172
                                             Telecopier: 212-892-7272
                                             Attention:   Michelle Bergman

                                        Wiring Instructions:

                                             A/C  # 275-011781
                                             Attention:  Ruchi Khurana

<PAGE>

                                        S-5

                                        DLJ ESC II, L.P.

                                        By:  DLJ LBO PLANS MANAGEMENT
                                               CORPORATION, as managing general
                                               partner

                                        By: _________________________________
                                             Name:
                                             Title:

                                        Address for Notices:

                                             277 Park Avenue
                                             New York, NY 10172
                                             Telecopier: 212-892-7272
                                             Attention:  Michelle Bergman

                                        Wiring Instructions:

                                             A/C  # 275-011781
                                             Attention:  Ruchi Khurana

<PAGE>

                                                                    SCHEDULE 2.1
                             COMMITMENTS TO PURCHASE

<TABLE>
<CAPTION>
                                                       Aggregate Liquidation                Number of Shares
                                                       Preference of Senior                  of Common Stock
Purchaser                                              Preferred Stock                     Underlying Warrant
---------------------------------------------------    ----------------------------      ---------------------
<S>                                                       <C>                                   <C>
DLJ Investment Partners II, L.P..................             $14,206,400.00                       79,191

DLJ Investment Partners, L.P.....................               6,314,000.00                       35,196

DLJ Investment Funding II, Inc...................               1,343,000.00                        7,491

DLJ ESC II, L.P..................................               3,135,700.00                       17,479
                                                               -------------                      -------

               Total.............................             $25,000,000.00                      139,357

</TABLE>

<PAGE>

                                                                    SCHEDULE 3.3
                            PRO FORMA CAPITALIZATION

                                    HOLDINGS

                      SHARES OUTSTANDING AS OF MAY 31, 2000

<TABLE>
<CAPTION>

                                                                                       SALE OF
                                                                                     SECURITIES
                                                                 HISTORICAL           HEREUNDER           PRO FORMA
                                                                 ----------          -----------          ---------
<S>                                                              <C>                  <C>                 <C>
PREFERRED STOCK
   14% Holdings preferred stock                                     342,417                                342,417

COMMON STOCKHOLDERS' EQUITY
   Common Stock                                                   3,893,567                              3,893,567
   Additional paid-in capital                                                                                    0
   Notes receivable for shares sold                                                                              0
   Accumulated deficit                                                                                           0
   Accumulated other comprehensive
     income (loss)
     Warrants to Purchase Common Stock
     Exercisable at $0.01 per share                                 150,000             139,357            289,357
     Exercisable at $23.00 per share                                155,000                                155,000
   Stock options - exercisable at $23.00 per share
     Management Option Plan
       Total authorized plan                                        356,257                                356,257
       Options granted                                              262,703                                262,703
   Options Granted to Global Technology Partners                     44,612                                 44,612
                                                                 -----------                            -----------
                Total common capitalization                       4,645,239                              4,784,596
                                                                 -----------                            -----------
                Total capitalization                              4,987,656                              5,127,013
                                                                 ===========                            ===========

                                                                 ===========                            ===========
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                   THE COMPANY

                                                AS OF MAY 31, 2000
                                            --------------------------
                                                   HISTORICAL          SALE OF SECURITIES HEREUNDER        PRO FORMA
                                                   ----------          ----------------------------        ---------

                                            NO. OF            DOLLARS     NO. OF       DOLLARS       NO. OF         DOLLARS
                                            SHARES          (IN 000'S)    SHARES     (IN 000'S)      SHARES        (IN 000'S)
                                            -------         ----------   --------   -----------      --------      ----------
<S>                                         <C>              <C>          <C>          <C>          <C>             <C>
PREFERRED STOCK
   Senior Preferred Stock issued hereunder                                250,000        25,000      250,000          25,000

COMMON STOCKHOLDERS' EQUITY
   Common Stock                                  100                 0                                   100               0
   Additional paid-in capital                                  124,749                                     0         124,749
   Notes receivable for shares sold                             (2,525)                                    0          (2,525)
   Accumulated deficit                                          (4,885)                                    0          (4,885)
   Accumulated other comprehensive
     income (loss)                                              (2,244)                                    0          (2,244)
                                             --------         ---------                              --------       ---------
              Total common capitalization        100           115,095                                   100         115,095
                                             --------         ---------                              --------       ---------

              Total capitalization               100           115,095                               250,100         140,095
                                             ========         =========                              =========      =========

                                                     -2-

</TABLE>

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