Document:

Exhibit 10.12.1

 

DECRANE AIRCRAFT HOLDINGS, INC.

 

FIRST AMENDMENT

TO CREDIT AGREEMENT

 

This FIRST AMENDMENT TO CREDIT
AGREEMENT (this “Amendment”) is
dated as of June 9, 2004 and entered into by and among DeCrane Aircraft
Holdings, Inc., a Delaware corporation (“Company”), the
financial institutions listed on the signature pages hereof (“Lenders”), Credit Suisse First Boston (successor to DLJ
Capital Funding, Inc.), acting through its Cayman Islands Branch, as
syndication agent for Lenders (in such capacity, “Syndication
Agent”) and as administrative agent for Lenders (in such capacity, “Administrative Agent”), and is made with reference to that
certain Credit Agreement, dated as of December 22, 2003, (the “Credit Agreement”), by and among Company, the lenders listed
on the signature pages thereof, Syndication Agent and Administrative
Agent.  Capitalized terms used herein
without definition shall have the same meanings herein as set forth in the
Credit Agreement.

 

RECITALS

 

WHEREAS, Company and
Lenders desire to amend the Credit Agreement to (i) permit Company to exchange
up to $65,000,000 of Senior Subordinated Notes for senior discount notes due
2008 with an initial accreted value equal to the principal amount of the Senior
Subordinated Notes being exchanged, which notes will bear paid-in-kind interest
at a rate equal to 17% per annum, (ii) amend the definition of Net Senior Debt
to exclude such senior discount notes and (iii) to make such other changes as
set forth herein;

 

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

 

Section 1. AMENDMENTS
TO THE CREDIT AGREEMENT

 

1.1 Amendments to Section 1: Definitions

 

A.            Subsection 1.1 of the Credit Agreement is
hereby amended by adding thereto the following definitions:

 

“Capital Stock” means the
capital stock or other equity interests of a Person.

 

“Interest Rate Exchanger”
has the meaning assigned to that term in subsection 8.4B.

 

“Senior Note Indenture”
means the indenture setting forth the terms and conditions of the Senior Notes.

 

“Senior Notes”
means the 17% Senior Discount Notes due 2008, which shall be pari  passu
with all existing and future senior Indebtedness of Company, be unsecured and
pay interest in kind and not in cash.

 

 

“Senior Note Exchange”
means the exchange of any Senior Subordinated Notes for Senior Notes with an
initial accreted value equal to the principal amount of the Senior Subordinated
Notes being so exchanged.

 

B.            Subsection 1.1 of the Credit Agreement is
further amended by amending the definition of the term “Net Senior Debt” to
read in full as follows:

 

“Net Senior Debt”
means, at any date, Consolidated Total Debt less the then accreted value
of the Senior Notes less Subordinated Indebtedness less Cash and
Cash Equivalents held by Company and its Subsidiaries, in each case at such
date.

 

1.2 Amendments to Section 6:  Company’s Negative Covenants

 

A.            Subsection 6.1(vi) of the Credit Agreement
is hereby amended to read as follows:

 

“(vi)        Company and its
Subsidiaries may become and remain liable with respect to up to $100,000,000 in
aggregate principal amount of Indebtedness evidenced by the Senior Subordinated
Notes less the initial accreted value of the Senior Notes issued in
exchange therefor in the Senior Note Exchange;”

 

B.            Subsection 6.1(xi) of the Credit Agreement
is hereby amended to read as follows:

 

“(xi)         Company and the
Subsidiary Guarantors may become and remain liable with respect to obligations
owed under the First Lien Credit Agreement; provided that the aggregate
principal amount of Indebtedness under this clause (xi) plus
the aggregate amount of undrawn letters of credit outstanding under subsection
6.4(ii)(A) shall not exceed $105,000,000 plus
$10,000,000 plus the Net Senior Debt Ratio Amount, minus the aggregate amount of all repayments and prepayments
of any term Indebtedness under the First Lien Credit Agreement, and the
aggregate amount of all permanent reductions of revolving credit commitments
under the First Lien Credit Agreement, in each case made after the Closing
Date;”

 

C.            Subsection 6.1 of the Credit Agreement is
further amended by deleting “and” at the end of clause (x), adding a semicolon
at the end of clause (xi) and adding the following as clause (xii):

 

“(xii)        Company and its
Subsidiaries may become and remain liable with respect to up to $65,000,000 in
aggregate principal amount of Indebtedness evidenced by the Senior Notes issued
in the Senior Note Exchange (plus any payment-in-kind Senior Notes issued in
lieu of cash interest thereon); provided that the terms and conditions
of the Senior Notes, the Senior Note Indenture and the documentation evidencing
the Senior Note Exchange are in form and substance satisfactory to Syndication
Agent and that Company causes an opinion of counsel in form and substance
satisfactory to 

 

2

 

Syndication Agent to be delivered, at or prior to the date of the
issuance of the Senior Notes, to Syndication Agent to the effect that (x) the
Senior Notes and the Senior Note Indenture have been duly authorized, executed
and delivered by Company and are legally valid and bind obligations of Company,
enforceable in accordance with their terms, and (y) the terms and conditions of
the Senior Note Exchange, the issuance and performance of the terms of the
Senior Notes and performance of the terms of the Senior Note Indenture do not
conflict with or violate the terms of this Agreement, the First Lien Credit
Agreement or the Senior Subordinated Note Indenture.”

 

D.            Subsection 6.2B of the Credit Agreement is
further amended to read as follows:

 

“B.          No Further Negative Pledges.  Except (x) with respect to specific property
encumbered to secure payment of particular Indebtedness or to be sold pursuant
to an executed agreement with respect to an Asset Sale, (y) customary
limitations in respect of the Company and its Subsidiaries contained in any
agreement with respect to Indebtedness incurred in reliance on subsections
6.1(ii), (iv), (vi), (vii), (viii), (x), (xi) or (xii), and (z) restrictions or
limitations contained in any partnership agreement or joint venture agreement
to which Company or any of its Subsidiaries is a party on the ability to create
or assume Liens on any assets of the relevant partnership or joint venture,
neither Company nor any of its Subsidiaries shall enter into any agreement
(other than an agreement prohibiting only the creation of Liens securing
Subordinated Indebtedness) prohibiting the creation or assumption of any Lien
upon any of its properties or assets, whether now owned or hereafter acquired.”

 

E.             Subsection 6.15 of the Credit Agreement is
further amended by adding the following as subsection 6.15E:

 

“E.           Company shall not, and shall not permit any of its
Subsidiaries to, amend or otherwise change the terms of the Senior Notes, or
make any amendment thereof or change thereto, if the effect of such amendment
or change is to increase the interest rate or fees on such Senior Notes, permit
interest to be paid in cash, change (to earlier dates) any dates upon which
payments of principal or interest are due thereon, change any event of default
or condition to an event of default with respect thereto (other than to
eliminate any such event of default or increase any grace period related
thereto), change the redemption, prepayment or defeasance provisions thereof,
change any guaranty thereof, or provide any collateral therefor, or if the
effect of such amendment or change, together with all other amendments or
changes made, is to increase materially the obligations of the obligor
thereunder to the detriment of Lenders or to confer any additional rights on
the holders of Senior Notes (or a trustee or other representative on their
behalf) which would be adverse to Lenders.”

 

1.3 Amendment to Section 8: The Agents.  Subsection 8.4 of the Credit Agreement is
further amended by adding the heading “A.           General.” to the
existing text and adding the following as subsection 8.4B:

 

3

 

“B.          Foreign Collateral.

 

(i)            General.  Without derogating from any other authority
granted to Administrative Agent herein or in the Collateral Documents or any
other document relating thereto, each Lender hereby specifically (x) authorizes
Administrative Agent to enter into pledge agreements pursuant to this
subsection 8.4 with respect to the Capital Stock of all existing and future
first-tier Foreign Subsidiaries, which pledge agreements may be governed by the
laws of each of the jurisdictions of formation of such Foreign Subsidiaries,
including but not limited to the laws of the province of Quebec, Canada,
respectively, as agent on behalf of each of Lenders and parties to Interest
Rate Agreements (“Interest Rate Exchangers”)
with the effect that Lenders and Interest Rate Exchangers each become a secured
party thereunder and (y) appoints Administrative Agent as its attorney-in-fact
granting it the powers to execute each such pledge agreement and any
registrations of the security interest thereby created, in each case in its
name and on its behalf, with the effect that each Lender and Interest Rate
Exchanger becomes a secured party thereunder. 
With respect to each such pledge agreement, Administrative Agent has the
power to sub-delegate to third parties its powers as attorney-in-fact of each
Lender.

 

(ii)           Canadian Collateral.  For the
purposes of holding any Liens granted by the Company or any other Loan Party
pursuant to the laws of the province of Quebec, the Lenders hereby acknowledge
that the Administration Agent shall be and act as the person holding the power
of attorney of all present and future Lenders and Interest Rate Exchangers for
all purposes of Article 2692 of the Civil Code of Quebec (the
Administration Agent acting in such capacity is herein referred to as the “Trustee”).
By executing an assignment and assumption agreement in the form of Exhibit I
attached hereto, each future Lender and Interest Rate Exchanger shall be deemed
to ratify the power of attorney granted to the Administration Agent hereunder.

 

The Lenders, the Interest Rate Exchangers and
the Loan Parties hereby waive the benefit of Section 32 of An Act Respecting the Special Powers of Legal Persons
(Quebec) and agree that the Administration Agent, in its capacity as Trustee,
may acquire any bonds, debentures or other titles of indebtedness secured by
any hypothec granted by the Company or any other Loan Party in favour of the
Trustee pursuant to the laws of the province of Quebec.

 

The Lenders and Interest Rate Exchangers
further acknowledge and agree that the Trustee shall be liable in the same
manner and only to the extent provided for with respect to the Administration
Agent under the terms hereof and hereby indemnify and hold harmless the Trustee
in the same manner and to the same extent provided for with respect to the
Administration Agent hereunder.”

 

1.4 Amendment to Exhibits.  Exhibits III and IX to the Credit Agreement
are hereby amended to read in full as set forth on Exhibits III and IX hereto.

 

Section 2. CONSENT

 

Lenders, constituting Requisite Lenders, hereby
consent to the issuance of the Senior Notes on the date of the Senior Note
Exchange, the cancellation of a principal amount of Senior Subordinated Notes
equal to the initial accreted value of the Senior Notes issued on 

 

4

 

such date and the issuance
of additional Senior Notes evidencing interest on such Senior Notes that is
paid-in-kind.

 

Without limiting the generality of the provisions of
subsection 9.6 of the Credit Agreement, the consent set forth herein shall be
limited precisely as written and is provided solely for the purpose of
permitting Company to issue the Senior Notes in exchange for a like principal
amount of the Senior Subordinated Notes and additional Senior Notes evidencing
interest that is paid-in-kind without violating the provisions of
subsections 6.1, 6.5 and 6.15 of the Credit Agreement, and this consent
does not constitute, nor should it be construed as, a waiver of compliance by
Company with respect to (i) subsections 6.1, 6.5 and 6.15 of the Credit
Agreement in any other instance or (ii) any other term, provision or
condition of the Credit Agreement or any other instrument or agreement referred
to therein (whether in connection with the Senior Note Exchange or otherwise).

 

Section 3. CONDITIONS TO EFFECTIVENESS

 

A.            Section 1 and Section 2 of this Amendment
shall become effective only upon the satisfaction of all of the following
conditions (the date of satisfaction of such conditions being referred to
herein as the “First Amendment Effective Date”):

 

1.  On
or before the First Amendment Effective Date, Company shall deliver to Lenders
(or to Syndication Agent for Lenders with sufficient originally executed
copies, where appropriate, for each Lender and its counsel) the following,
each, unless otherwise noted, dated the First Amendment Effective Date:

 

(a) Resolutions of its Board of Directors
approving and authorizing the execution, delivery, and performance of (i) this
Amendment and (ii) an amendment to the First Lien Credit Agreement to the
effect that the issuance of the Senior Notes in the Senior Note Exchange is
permitted pursuant to the terms of such agreement and the Senior Note
Indenture, certified as of the First Amendment Effective Date by its corporate
secretary or an assistant secretary as being in full force and effect without
modification or amendment;

 

(b) Signature and incumbency certificates of
its officers executing this Amendment; and

 

(c) Executed originals of this Amendment,
executed by Parent, Company and each Subsidiary Guarantor.

 

2. 
Lenders shall have received originally executed copies of one or more
favorable written opinions of Davis Polk & Wardwell, Spolin Silverman Cohen
& Bartlett LLP and other counsel reasonably acceptable to the Agents, each
counsel for Company, in form and substance reasonably satisfactory to
Syndication Agent and its counsel, dated as of the First Amendment Effective
Date and setting forth, collectively, substantially the matters in the opinions
designated in Annex A to this Amendment.

 

3. 
Executed originals of this Amendment executed by Requisite Lenders.

 

5

 

4.  All
fees and expenses owing to Administrative Agent in connection with this
Amendment pursuant to Section 6B that have been invoiced to Company at least
one Business Day prior to the First Amendment Effective Date shall be paid to
Administrative Agent on the First Amendment Effective Date.

 

5.  All
documents executed or submitted in connection with the transactions
contemplated hereby by or on behalf of Parent, Company or any of its
Subsidiaries shall be reasonably satisfactory in form and substance to Agents
and their counsel.

 

6. 
Syndication Agent shall have received copies of an amendment to the
First Lien Credit Agreement to the effect that the issuance of the Senior Notes
in the Senior Note Exchange is permitted pursuant to the terms of such
agreement.

 

Section 4. COMPANY’S REPRESENTATIONS AND WARRANTIES

 

In order to induce Lenders to enter into this
Amendment and to amend the Credit Agreement in the manner provided herein,
Company represents and warrants to each Lender that the following statements
are true, correct and complete on and as of the First Amendment Effective Date:

 

A.            Corporate Power and Authority.  Each of Company and its Subsidiaries has all
requisite corporate power and authority to enter into this Amendment to carry
out the transactions contemplated by, and perform its obligations under, the
Credit Agreement as amended by this Amendment (the “Amended
Agreement”).

 

B.            Authorization of Agreement.  The execution and delivery of this Amendment
and the performance of the Amended Agreement have been duly authorized by all
necessary corporate action on the part of each of Company and its Subsidiaries.

 

C.            No Conflict.  The execution, delivery and performance by
each of Company and each of its Subsidiaries of this Amendment, and the
performance by Company of the Amended Agreement do not and will not
(i) violate any provision of (x) any law or any governmental rule or
regulation applicable to Company or any of its Subsidiaries where such
violations in the aggregate have had or could reasonably be expected to have a
Material Adverse Effect, (y) the Certificate or the Articles of Incorporation
or Bylaws (or any other organization document) of Parent, Company or any of
Company’s Subsidiaries or (z) any order, judgment or decree of any court or
other agency of government binding on Company or any of Company’s Subsidiaries
where such violations in the aggregate have had or could reasonably be expected
to have a Material Adverse Effect, (ii) conflict with, result in a breach
of or constitute a default under any Contractual Obligation of Parent, Company
or any of its Subsidiaries where such conflict, breach or default in the
aggregate have had or could reasonably be expected to have a Material Adverse
Effect, (iii) result in or require the creation or imposition of any Lien
upon any of the properties or assets of Company or any of Company’s
Subsidiaries (other than Liens created under any of the Loan Documents in favor
of Administrative Agent on behalf of Lenders), or (iv) require any
approval of or consent of any Person under any Contractual Obligation of
Parent, Company or any of Company’s Subsidiaries, except for this Amendment and
such approvals or consents the failure of which 

 

6

 

to obtain has not had and could not reasonably be expected to have a
Material Adverse Effect.

 

D.            Governmental Consents.  The execution, delivery and performance by
each of Company and each of its Subsidiaries of this Amendment and the
performance by Company of the Amended Agreement do not and will not require any
registration with, consent or approval of, or notice to, or other action to,
with or by, any federal, state or other governmental authority or regulatory
body other than any such registrations, consents, approvals, notices or other
actions (x) that have been made, obtained or taken on or prior to the date
on which such registrations, consents, approvals, notices or other actions are
required to be made, obtained or taken, as the case may be, and are in full
force and effect or (y) the failure of which to make, obtain or take has
not had and could not reasonably be expected to have a Material Adverse Effect.

 

E.             Binding Obligation.  This Amendment has been duly executed and
delivered by each Loan Party that is a party thereto and is the legally valid
and binding obligation of such Loan Party, enforceable against such Loan Party
in accordance with its respective terms, subject to bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

 

F.             Incorporation of Representations and
Warranties From Credit Agreement. 
The representations and warranties contained in Section 4 of the
Credit Agreement are and will be true, correct and complete in all material
respects on and as of the First Amendment Effective Date to the same extent as
though made on and as of that date, except to the extent such representations
and warranties specifically relate to an earlier date, in which case they were
true, correct and complete in all material respects on and as of such earlier
date.

 

G.            Absence of Default.  No event has occurred and is continuing or
will result from the consummation of the transactions contemplated by this Amendment
that would constitute an Event of Default or a Potential Event of Default.

 

Section 5. ACKNOWLEDGEMENT AND CONSENT

 

Each of Parent and the Subsidiary Guarantors (each a
“Guarantor”) is a party to a
Guaranty and each such Guarantor has guarantied the Obligations.

 

Each Guarantor hereby acknowledges that it has
reviewed the terms and provisions of the Credit Agreement and this Amendment
and consents to the amendment of the Credit Agreement effected pursuant to this
Amendment.  Each Guarantor hereby confirms
that the Guaranty to which it is a party or otherwise bound will continue to
guaranty to the fullest extent possible the payment and performance of all
“Guarantied Obligations” as such term is defined in the applicable Guaranty,
including without limitation the payment and performance of all such
“Guarantied Obligations” in respect of the Obligations of Company now or
hereafter existing under or in respect of the Amended Agreement.

 

7

 

Each Guarantor (a) acknowledges and agrees that the
Guaranty to which it is a party or otherwise bound shall continue in full force
and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment;  (b)
represents and warrants that all representations and warranties contained in
the Amended Agreement and in the Guaranty to which it is a party or otherwise
bound are true, correct and complete in all material respects on and as of the
First Amendment Effective Date to the same extent as though made on and as of
that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case they were true, correct
and complete in all material respects on and as of such earlier date; and (c)
acknowledges and agrees that (i) notwithstanding the conditions to
effectiveness set forth in this Amendment, such Guarantor is not required by
the terms of the Credit Agreement or any other Loan Document to consent to the
amendments to the Credit Agreement effected pursuant to this Amendment and
(ii) nothing in the Credit Agreement, this Amendment or any other Loan
Document shall be deemed to require the consent of such Guarantor to any future
amendments to the Credit Agreement.

 

Section 6. MISCELLANEOUS

 

A.            Effect of Amendment.

 

(i)            On and after the First Amendment Effective
Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”,
“hereof”, “herein” or words of like import referring to the Credit Agreement,
and each reference in the other Loan Documents to the “Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit
Agreement shall mean and be a reference to the Amended Agreements.

 

(ii)           On and after the First Amendment Effective
Date, each reference in the other Loan Documents to the “Lenders,”
“Commitments,” or words of like import shall mean and be a reference to the
Lenders and Commitments as amended by this Agreement.

 

(iii)          Except as specifically amended by this
Amendment, the Credit Agreement and the other Loan Documents shall remain in
full force and effect and are hereby ratified and confirmed.

 

(iv)          The execution, delivery and performance of
this Amendment shall not, except as expressly provided herein, constitute a
waiver of any provision of, or operate as a waiver of any right, power or
remedy of Agents or any Lender under, the Credit Agreement or any of the other
Loan Documents.

 

B.            Fees and Expenses.  Company acknowledges that all costs, fees and
expenses as described in subsection 9.2 of the Credit Agreement incurred by
Agents and their counsel with respect to this Amendment and the documents and
transactions contemplated hereby shall be for the account of Company.

 

C.            Headings.  Section and subsection headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

8

 

D.            Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

E.             Counterparts; Effectiveness.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.  This Amendment (other
than the provisions of Section 1 and Section 2 hereof, the effectiveness of
which is governed by Section 3 hereof) shall become effective upon the
execution of a counterpart hereof by Company, Requisite Lenders, Syndication
Agent and Guarantors and receipt by Company and Agents of written or telephonic
notification of such execution and authorization of delivery thereof.

 

9

 

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

 

	
   

  	
  DECRANE AIRCRAFT HOLDINGS, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Senior Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AUDIO INTERNATIONAL, INC., an

  Arkansas corporation (for purposes of Section 5

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CARL F. BOOTH & CO., LLC, a Delaware
  limited liability company (for purposes of Section 5 only) as a Subsidiary
  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CUSTOM WOODWORK & PLASTICS,

  LLC., a Delaware limited liability company (for
  purposes of Section 5 only) as a Subsidiary Guarantor 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  

 

S-1

 

	
   

  	
  DAH-IP HOLDINGS, INC., a Delaware

  corporation (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DAH-IP INFINITY, INC., a Delaware

  corporation (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DECRANE AIRCRAFT SEATING

  COMPANY, INC., a Wisconsin corporation (for purposes
  of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DECRANE CABIN INTERIORS, LLC, a Delaware
  limited liability company (for purposes of Section 5 only) as a Subsidiary
  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
							

 

S-2

 

	
   

  	
  DECRANE CABIN INTERIORS CANADA, INC.,
  a Delaware corporation (for purposes of Section 5 only) as a Subsidiary
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOLLINGSEAD INTERNATIONAL, INC., a
  California corporation (for purposes of Section 5 only) as a Subsidiary
  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PATS AIRCRAFT, LLC, a Delaware limited
  liability company (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PCI NEWCO., INC.,
  a Kansas corporation (for purposes of Section 5 only) as a Subsidiary
  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Chief Financial Officer
  and Secretary

  

 

S-3

 

	
   

  	
  PPI HOLDINGS, INC.,
  a Kansas corporation

  (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRECISION PATTERN, INC.,
  a Kansas

  corporation (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE INFINITY PARTNERS, LTD.,

  a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  by: DAH-IP Holdings, Inc., a Delaware limited partnership, its
  general partner (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE HOLDINGS CO., a Delaware corporation
  (for purposes of Section 5 only) as a guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Managing Director

  

 

S-4

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting

  through its Cayman Islands Branch
(successor
  to DLJ Capital Funding, Inc.), as a

  Lender, Syndication Agent and Adminstrative

  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dana Klei

  
	
   

  	
   

  	
  Name: Dana Klein

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas L. Newberry

  
	
   

  	
   

  	
  Name: Thomas L. Newberry

  
	
   

  	
   

  	
  Title: Managing Director

  

 

S-5

 

	
   

  	
   

  	
  ,as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

S-6

 

ANNEX A

 

MATTERS TO BE COVERED IN OPINION OF COUNSEL
TO COMPANY

 

1.             Company has been duly
incorporated, and is validly existing in good standing under the laws of the
State of Delaware with corporate power to own its properties and assets, to
enter into the Amendment and to perform its obligations under the Amendment.

 

2.             The execution, delivery and
performance of the Amendment by Company have been duly authorized by all
necessary corporate action on the part of Company, the Amendment has been duly
executed and delivered by Company, and the Amendment and the Amended Agreement
constitute the legally valid and binding obligations of Company, enforceable
against Company in accordance with their respective terms except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
relating to or affecting creditors’ rights generally (including, without
limitation, fraudulent conveyance laws) and by general principles of equity
including, without limitation, concepts of materiality, reasonableness, good
faith and fair dealing and the possible unavailability of specific performance
or injunctive relief, regardless of whether considered in a proceeding in
equity or at law.

 

3.             Company’s execution and
delivery of the Amendment and the consummation of the transactions contemplated
by the Amendment do not and will not (i) violate the Certificate of
Incorporation or By-laws of Parent or of Company, (ii) violate, breach or
result in a default under Senior Subordinated Note Indenture or the First Lien
Credit Agreement, (iii) breach or otherwise violate any existing
obligation of Company under any order, judgment or decree of any New York,
California or federal court or Governmental Authority binding on Company or
(iv) violate any New York, California or federal statute or regulation.

 

4.             No governmental consents,
approvals, authorizations, registrations, declarations or filings are required
by Company in connection with the execution and delivery by Company of the
Amendment, and the performance by Company of the Amended Agreement.

 

A-1Exhibit 10.12.2

 

DECRANE AIRCRAFT HOLDINGS, INC.

 

SECOND AMENDMENT

TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AGREEMENT
(this “Amendment”) is dated as of July 16,
2004 and entered into by and among DeCrane Aircraft Holdings, Inc., a Delaware
corporation (“Company”), the financial
institutions listed on the signature pages hereof (“Lenders”),
Credit Suisse First Boston (successor to DLJ Capital Funding, Inc.), acting
through its Cayman Islands Branch, as syndication agent for Lenders (in such
capacity, “Syndication Agent”) and as
administrative agent for Lenders (in such capacity, “Administrative
Agent”), and is made with reference to that certain Credit
Agreement, dated as of December 22, 2003, as amended by a First Amendment to
Credit Agreement dated as of June9, 2004 (the “Credit
Agreement”), by and among Company, the lenders listed on the
signature pages thereof, Syndication Agent and Administrative Agent.  Capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement.

 

RECITALS

 

WHEREAS, Company desires to issue
the Senior Notes in connection with the Senior Note Exchange and enter into the
Senior Note Indenture as permitted by subsection 6.1(xii) of the Credit
Agreement;

 

WHEREAS, the proposed form of
Senior Note Indenture permits redemption of the Senior Notes at the option of
Company;

 

WHEREAS, Company and Lenders desire
to amend the Credit Agreement to prohibit optional redemption, optional
prepayment or optional purchase of the Senior Notes;

 

WHEREAS, Company may issue the
Senior Notes only if, among other things, Syndication Agent has determined that
the terms and conditions of the Senior Notes, the Senior Note Indenture and the
documentation evidencing the Senior Note Exchange are satisfactory;

 

WHEREAS, Syndication Agent has
decided to make such determination only upon request by Requisite Lenders, as
provided in subsection 8.2B of the Credit Agreement.

 

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

 

Section 1. 
AMENDMENTS TO THE CREDIT
AGREEMENT

 

Section 6 of the Credit Agreement is hereby amended by adding the
following as subsection 6.16:

 

 

“6.16      Prepayments
of Senior Notes.

 

Company shall not, and shall not permit any of its Subsidiaries to,
make any optional redemption or optional purchase of, optional prepayment with
respect to, the Senior Notes.”

 

Section 2.  CONSENT

 

Lenders, constituting Requisite Lenders, hereby determine that the
terms and conditions of the Senior Notes, the Senior Note Indenture attached
hereto as Exhibit A and the documentation evidencing the Senior Note
Exchange attached hereto as Exhibit B are satisfactory in form and
substance, and request Syndication Agent to indicate its satisfaction with such
terms and conditions to Company.

 

Section 3. 
CONDITIONS TO
EFFECTIVENESS

 

A.            Section 1 and
Section 2 of this Amendment shall become effective only upon the satisfaction
of all of the following conditions (the date of satisfaction of such conditions
being referred to herein as the “Second Amendment Effective
Date”):

 

1.             On or before the
Second Amendment Effective Date, Company shall deliver to Lenders (or to
Syndication Agent for Lenders with sufficient originally executed copies, where
appropriate, for each Lender and its counsel) the following, each, unless
otherwise noted, dated the Second Amendment Effective Date:

 

(a)           an amendment to the
First Lien Credit Agreement to the effect that prepayment of the Senior Notes
issued pursuant to the Senior Note Indenture is prohibited pursuant to the
terms of such agreement;

 

(b)           Signature and
incumbency certificates of its officers executing this Amendment; and

 

(c)           Executed originals
of this Amendment, executed by Parent, Company and each Subsidiary Guarantor.

 

2.             Executed originals
of this Amendment executed by Requisite Lenders.

 

Section 4. 
COMPANY’S REPRESENTATIONS
AND WARRANTIES

 

In order to induce Lenders to enter into this Amendment and to amend
the Credit Agreement in the manner provided herein, Company represents and
warrants to each Lender that the following statements are true, correct and
complete on and as of the Second Amendment Effective Date:

 

A.            Corporate Power
and Authority.  Each of Company and
its Subsidiaries has all requisite corporate power and authority to enter into
this Amendment to carry out the transactions contemplated by, and perform its
obligations under, the Credit Agreement as amended by this Amendment (the “Amended Agreement”).

 

2

 

 

B.            Authorization of
Agreement.  The execution and
delivery of this Amendment and the performance of the Amended Agreement have
been duly authorized by all necessary corporate action on the part of each of
Company and its Subsidiaries.

 

C.            No Conflict.  The execution, delivery and performance by
each of Company and each of its Subsidiaries of this Amendment, and the
performance by Company of the Amended Agreement do not and will not
(i) violate any provision of (x) any law or any governmental rule or
regulation applicable to Company or any of its Subsidiaries where such
violations in the aggregate have had or could reasonably be expected to have a
Material Adverse Effect, (y) the Certificate or the Articles of Incorporation
or Bylaws (or any other organization document) of Parent, Company or any of
Company’s Subsidiaries or (z) any order, judgment or decree of any court or
other agency of government binding on Company or any of Company’s Subsidiaries
where such violations in the aggregate have had or could reasonably be expected
to have a Material Adverse Effect, (ii) conflict with, result in a breach
of or constitute a default under any Contractual Obligation of Parent, Company
or any of its Subsidiaries where such conflict, breach or default in the
aggregate have had or could reasonably be expected to have a Material Adverse
Effect, (iii) result in or require the creation or imposition of any Lien
upon any of the properties or assets of Company or any of Company’s
Subsidiaries (other than Liens created under any of the Loan Documents in favor
of Administrative Agent on behalf of Lenders), or (iv) require any
approval of or consent of any Person under any Contractual Obligation of
Parent, Company or any of Company’s Subsidiaries, except for this Amendment and
such approvals or consents the failure of which to obtain has not had and could
not reasonably be expected to have a Material Adverse Effect.

 

D.            Governmental
Consents.  The execution, delivery
and performance by each of Company and each of its Subsidiaries of this
Amendment and the performance by Company of the Amended Agreement do not and
will not require any registration with, consent or approval of, or notice to,
or other action to, with or by, any federal, state or other governmental
authority or regulatory body other than any such registrations, consents,
approvals, notices or other actions (x) that have been made, obtained or
taken on or prior to the date on which such registrations, consents, approvals,
notices or other actions are required to be made, obtained or taken, as the
case may be, and are in full force and effect or (y) the failure of which
to make, obtain or take has not had and could not reasonably be expected to
have a Material Adverse Effect.

 

E.             Binding
Obligation.  This Amendment has been
duly executed and delivered by each Loan Party that is a party thereto and is
the legally valid and binding obligation of such Loan Party, enforceable
against such Loan Party in accordance with its respective terms, subject to
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally,
general equitable principles (whether considered in a proceeding in equity or
at law) and an implied covenant of good faith and fair dealing.

 

F.             Incorporation of
Representations and Warranties From Credit Agreement.  The representations and warranties contained
in Section 4 of the Credit Agreement are and will be true, correct and
complete in all material respects on and as of the

 

3

 

Second
Amendment Effective Date to the same extent as though made on and as of that
date, except to the extent such representations and warranties specifically
relate to an earlier date, in which case they were true, correct and complete
in all material respects on and as of such earlier date.

 

G.            Absence of
Default.  No event has occurred and
is continuing or will result from the consummation of the transactions
contemplated by this Amendment that would constitute an Event of Default or a
Potential Event of Default.

 

Section 5. 
ACKNOWLEDGEMENT AND
CONSENT

 

Each of Parent and the Subsidiary Guarantors (each a “Guarantor”) is a party to a Guaranty and
each such Guarantor has guarantied the Obligations.

 

Each Guarantor hereby acknowledges that it has reviewed the terms and
provisions of the Credit Agreement and this Amendment and consents to the
amendment of the Credit Agreement effected pursuant to this Amendment.  Each Guarantor hereby confirms that the
Guaranty to which it is a party or otherwise bound will continue to guaranty to
the fullest extent possible the payment and performance of all “Guarantied
Obligations” as such term is defined in the applicable Guaranty, including
without limitation the payment and performance of all such “Guarantied
Obligations” in respect of the Obligations of Company now or hereafter existing
under or in respect of the Amended Agreement.

 

Each Guarantor (a) acknowledges and agrees that the Guaranty to which
it is a party or otherwise bound shall continue in full force and effect and
that all of its obligations thereunder shall be valid and enforceable and shall
not be impaired or limited by the execution or effectiveness of this Amendment;  (b) represents and warrants that all
representations and warranties contained in the Amended Agreement and in the
Guaranty to which it is a party or otherwise bound are true, correct and
complete in all material respects on and as of the Second Amendment Effective
Date to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date; and (c) acknowledges and agrees that
(i) notwithstanding the conditions to effectiveness set forth in this
Amendment, such Guarantor is not required by the terms of the Credit Agreement
or any other Loan Document to consent to the amendments to the Credit Agreement
effected pursuant to this Amendment and (ii) nothing in the Credit
Agreement, this Amendment or any other Loan Document shall be deemed to require
the consent of such Guarantor to any future amendments to the Credit Agreement.

 

Section 6. 
MISCELLANEOUS

 

A.            Effect of
Amendment.

 

(i)            On and after the
Second Amendment Effective Date, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
referring to the Credit Agreement, and each reference in the other Loan
Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Amended Agreements.

 

4

 

(ii)           On and after the
Second Amendment Effective Date, each reference in the other Loan Documents to
the “Lenders,” “Commitments,” or words of like import shall mean and be a
reference to the Lenders and Commitments as amended by this Agreement.

 

(iii)          Except as
specifically amended by this Amendment, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed.

 

(iv)          The execution,
delivery and performance of this Amendment shall not, except as expressly
provided herein, constitute a waiver of any provision of, or operate as a
waiver of any right, power or remedy of Agents or any Lender under, the Credit
Agreement or any of the other Loan Documents.

 

B.            Fees and Expenses.  Company acknowledges that all costs, fees and
expenses as described in subsection 9.2 of the Credit Agreement incurred by
Agents and their counsel with respect to this Amendment and the documents and
transactions contemplated hereby shall be for the account of Company.

 

C.            Headings.  Section and subsection headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

D.            Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

E.             Counterparts;
Effectiveness.  This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. 
This Amendment shall become effective upon the execution of a
counterpart hereof by Company, Requisite Lenders and Guarantors and receipt by
Company and Agents of written or telephonic notification of such execution and
authorization of delivery thereof.

 

5

 

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

 

	
   

  	
  DECRANE
  AIRCRAFT HOLDINGS, INC., 

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AUDIO
  INTERNATIONAL, INC., an 

  Arkansas corporation (for purposes of Section 5 

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name: 

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CARL F.
  BOOTH & CO., LLC, a Delaware 

  limited liability company (for purposes of 

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CUSTOM WOODWORK & PLASTICS, 

  LLC., a Delaware limited liability company (for 

  purposes of Section 5 only) as a Subsidiary 

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

S-1

 

	
   

  	
  DAH-IP
  HOLDINGS, INC., a Delaware

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DAH-IP
  INFINITY, INC., a Delaware 

  corporation (for purposes of Section 5 only) as a 

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE
  AIRCRAFT SEATING 

  COMPANY, INC., a Wisconsin corporation 

  (for purposes of Section 5 only) as a Subsidiary 

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE
  CABIN INTERIORS, LLC, a 

  Delaware limited liability company (for 

  purposes of Section 5 only) as a Subsidiary 

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ R. JACK DECRANE

  
	
   

  	
   

  	
  Name:

  	
   R. Jack
  DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

S-2

 

	
   

  	
  DECRANE CABIN INTERIORS CANADA, 

  INC., a Delaware corporation (for purposes 

  of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ R. Jack DeCrane

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title: 

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  HOLLINGSEAD
  INTERNATIONAL, INC., a California corporation (for
  purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ R. Jack DeCrane

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title: 

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PATS
  AIRCRAFT, LLC, a Delaware limited liability company
  (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ R. Jack DeCrane

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PCI NEWCO., INC., a Kansas corporation (for 

  purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ R. Jack DeCrane

  
	
   

  	
   

  	
  Name:

  	
   R.
  Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

S-3

 

	
   

  	
  PPI HOLDINGS, INC.,
  a Kansas corporation 

  (for purposes of Section 5 only) as a 

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack DeCrane

  
	
   

  	
   

  	
  Name:

  	
   R. Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRECISION PATTERN, INC., a Kansas
  corporation (for purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack DeCrane

  
	
   

  	
   

  	
  Name:

  	
   R. Jack DeCrane

  
	
   

  	
   

  	
  Title: 

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE INFINITY PARTNERS, LTD., a Texas limited
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
  by: DAH-IP
  Holdings, Inc., a Delaware limited partnership, its general partner (for
  purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack decrane

  
	
   

  	
   

  	
  Name:

  	
   R. Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE
  HOLDINGS CO., a Delaware

  corporation (for purposes of Section 5 only) as a

  guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack decrane

  
	
   

  	
   

  	
  Name:

  	
   R. Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

S-4

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, acting

  through its Cayman Islands Branch
(successor
  to DLJ Capital Funding, Inc.), as a

  Lender, Syndication Agent and Adminstrative

  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANA KLEIN

  
	
   

  	
   

  	
  Name:

  	
   Dana Klein

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Carey

  
	
   

  	
   

  	
  Name:

  	
   Richard Carey

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  

 

S-5

 

	
   

  	
   

  	
  , as a
  Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
							

 

S-6

 

ANNEX A

 

MATTERS TO BE COVERED IN OPINION OF COUNSEL TO COMPANY

 

1.             Company has been duly incorporated, and is validly
existing in good standing under the laws of the State of Delaware with
corporate power to own its properties and assets, to enter into the Amendment
and to perform its obligations under the Amendment.

 

2.             The execution, delivery and performance of the Amendment
by Company have been duly authorized by all necessary corporate action on the
part of aaaaaaaCompany, the Amendment has been duly executed and delivered by
Company, and the Amendment and the Amended Agreement constitute the legally
valid and binding obligations of Company, enforceable against Company in
accordance with their respective terms except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting
creditors’ rights generally (including, without limitation, fraudulent
conveyance laws) and by general principles of equity including, without
limitation, concepts of materiality, reasonableness, good faith and fair
dealing and the possible unavailability of specific performance or injunctive
relief, regardless of whether considered in a proceeding in equity or at law.

 

3.             Company’s execution and delivery of the Amendment and
the consummation of the transactions contemplated by the Amendment do not and
will not (i) violate the Certificate of Incorporation or By-laws of Parent
or of Company, (ii) violate, breach or result in a default under Senior
Subordinated Note Indenture or the First Lien Credit Agreement,
(iii) breach or otherwise violate any existing obligation of Company under
any order, judgment or decree of any New York, California or federal court or
Governmental Authority binding on Company or (iv) violate any New York,
California or federal statute or regulation.

 

4.             No governmental consents, approvals, authorizations,
registrations, declarations or filings are required by Company in connection
with the execution and delivery by Company of the Amendment, and the
performance by Company of the Amended Agreement.

 

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]