Document:

CERTIFICATE OF AMENDMENT OF CERTIFICATE OF INCORPORATION OF DECRANE

HOLDINGS CO

Exhibit 4.5

 

CERTIFICATE OF AMENDMENT

OF

CERTIFICATE OF INCORPORATION

OF

DECRANE HOLDINGS CO.

 

DeCrane Holdings Co., a Delaware corporation (the “Corporation”), DOES HEREBY CERTIFY:

 

FIRST: That the Board of Directors of the Corporation,

in lieu of a meeting, adopted by unanimous written consent the following

resolution:

 

WHEREAS, pursuant to Section 151 of the General

Corporation Law of the State of Delaware, the Corporation filed a Certificate

of Designations, Preferences and Rights of 14% Senior Redeemable Exchangeable

Preferred Stock due 2008 (the “Certificate of

Designations”) with the Secretary of State of Delaware on August 27,

1998.

 

RESOLVED, that the Board of Directors has determined

that it is advisable and in the best interest of the Corporation that the

Certificate of Designations be amended to read as follows:

 

Each share of such series of Preferred Stock shall

rank equally in all respects and shall be subject to the following provisions:

 

(1) Number and Designation.

1,360,000 shares of the Preferred Stock of the Corporation shall be designated

as 14% Senior Redeemable Exchangeable Preferred Stock Due 2009 (the “Senior Preferred Stock”).

 

(2) Rank. The Senior

Preferred Stock shall, with respect to dividend rights and rights on

liquidation, dissolution and winding up, rank prior to all classes of or series

of common stock of the Corporation, including the Corporation’s common stock,

par value $0.01 per share (“Common Stock”),

and each other class of capital stock of the Corporation, the terms of which

provide that such class shall rank junior to the Senior Preferred Stock or the

terms of which do not specify any rank relative to the Senior Preferred Stock.

All equity securities of the Corporation to which the Senior Preferred Stock

ranks prior (whether with respect to dividends or upon liquidation,

dissolution, winding up or otherwise), including the Common Stock, are

collectively referred to herein as the “Junior

Securities.” All equity securities of the Corporation with which the

Senior Preferred Stock ranks on a parity (whether with respect to dividends or

upon liquidation, dissolution or

 

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winding up) are collectively referred to herein as the “Parity Securities.” The respective

definitions of Junior Securities and Parity Securities shall also include any

rights or options exercisable for or convertible into any of the Junior

Securities and Parity Securities, as the case may be. The Senior Preferred

Stock shall be subject to the creation of Junior Securities.

 

(3) Dividends. (a) (i) The

holders of shares of Senior Preferred Stock shall be entitled to receive, when,

as and if declared by the Board of Directors, out of funds legally available

for the payment of dividends, dividends (subject to Sections 3(a)(ii) and (iii)

hereof) at a rate equal to 14% per annum (computed on the basis of a 360 day

year)(the “Dividend Rate”) on the

Liquidation Value of each share of Senior Preferred Stock on and as of the most

recent Dividend Payment Date (as defined below). In the event the Corporation

is unable or shall fail to discharge its obligation to redeem all outstanding

shares of Senior Preferred Stock pursuant to paragraph 5(c) or 5(d) hereof, the

Dividend Rate shall increase by .25 percent per quarter (each, a “Default Dividend”) for each quarter or

portion thereof following the date on which such redemption was required to be

made until cured; provided that

the aggregate increase shall not exceed 5%. Such dividends shall be payable in

the manner set forth below in Sections 3(a)(ii) and (iii) quarterly on

March 31, June 30, September 30 and December 31 of each year (unless such

day is not a business day, in which event on the next succeeding business day)

(each of such dates being a “Dividend Payment

Date” and each such quarterly period being a “Dividend Period”). Such dividends shall be

cumulative from the date of issue, whether or not in any Dividend Period or

Periods there shall be funds of the Corporation legally available for the

payment of such dividends.

 

                (ii)           Prior to the fifth anniversary of the

issuance of the Senior Preferred Stock (the “Cash

Pay Date”), dividends shall not be payable in cash to holders of

shares of Senior Preferred Stock but shall, subject to Section 3(b) hereof,

accrete to the Liquidation Value in accordance with Section 4(a) hereof.

 

                (iii)          Following the Cash Pay Date, each such

dividend shall be payable in cash on the Liquidation Value per share of the

Senior Preferred Stock, in equal quarterly amounts (to which the Default Dividend,

if any, shall be added), to the holders of record of shares of the Senior

Preferred Stock, as they appear on the stock records of the Corporation at the

close of business on such record dates, not more than 60 days or less than 10

days preceding the payment dates thereof, as shall be fixed by the Board of

Directors. Accrued and unpaid dividends for any past Dividend Periods may be

declared and paid at any time, without reference to any Dividend Payment Date,

to holders

 

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of record on such date, not more than 45 days

preceding the payment date thereof, as may be fixed by the Board of Directors.

 

(b)           At

the written request of the holders of a majority of the shares of Senior

Preferred Stock, the Corporation shall, commencing on the first Dividend

Payment Date after such request and ending on the Cash Pay Date, be required to

pay all dividends on shares of Senior Preferred Stock by the issuance of

additional shares of Senior Preferred Stock (“Additional

Shares”). The Additional Shares shall be identical to all other

shares of Senior Preferred Stock, except as set forth in Section 4. For the

purposes of determining the number of Additional Shares to be issued as

dividends pursuant to this Paragraph (b), such Additional Shares shall be

valued at their Applicable Liquidation Value as provided in Section 4(c).

 

(c)           Holders

of shares of Senior Preferred Stock shall not be entitled to any dividends,

whether payable in cash, property or stock, in excess of the cumulative

dividends, as herein provided, on the Senior Preferred Stock. Except as

provided in this Section 3, no interest, or sum of money in lieu of interest,

shall be payable in respect of any dividend payment or payments on the Senior

Preferred Stock that may be in arrears.

 

(d)           So

long as any shares of the Senior Preferred Stock are outstanding, no dividends,

except as described in the next succeeding sentence, shall be declared or paid

or set apart for payment on Parity Securities, for any period unless (to the

extent such dividends are payable in cash) full cumulative dividends have been

or contemporaneously are declared and paid or declared and a sum sufficient for

the payment thereof set apart for such payment on the Senior Preferred Stock

for all Dividend Periods terminating on or prior to the date of payment of the

dividend on such class or series of Parity Securities. When (to the extent such

dividends are payable in cash) dividends are not paid in full or a sum

sufficient for such payment is not set apart, as aforesaid, all dividends

declared upon shares of the Senior Preferred Stock and all dividends declared

upon any other class or series of Parity Securities shall (in each case, to the

extent payable in cash) be declared ratably in proportion to the respective

amounts of dividends accumulated and unpaid on the Senior Preferred Stock and

accumulated and unpaid on such Parity Securities.

 

(e)           So

long as any shares of the 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, Junior Securities) shall be

declared or paid or set apart for payment or other distribution declared or

made upon Junior Securities, nor shall any Junior Securities be redeemed,

purchased or otherwise acquired (other than a redemption, purchase or other

acquisition of shares of Common Stock made 

 

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for purposes of an employee incentive or benefit plan of the Corporation

or any subsidiary) (all such dividends, distributions, redemptions or purchases

being hereinafter referred to as a “Junior

Securities Distribution”) 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 the Corporation, directly or indirectly (except by

conversion into or exchange for Junior Securities), unless in each case (i) the

full cumulative dividends on all outstanding shares of the Senior Preferred Stock

and any other Parity Securities shall (to the extent payable in cash) have been

paid or set apart for payment for all past Dividend Periods with respect to the

Senior Preferred Stock and all past dividend periods with respect to such

Parity Securities and (ii) (to the extent payable in cash) sufficient funds

shall have been paid or set apart for the payment of the dividend for the

current Dividend Period with respect to the Senior Preferred Stock and the

current dividend period with respect to such Parity Securities.

 

(4) Liquidation Preference. (a) In the event of any liquidation,

dissolution or winding up of the Corporation, whether voluntary or involuntary,

before any payment or distribution of the assets of the Corporation (whether

capital or surplus) shall be made to or set apart for the holders of Junior

Securities, the holders of the shares of Senior Preferred Stock shall be

entitled to receive an amount equal to the Liquidation Value of such share plus

any accrued and unpaid cash dividends to the date of distribution. “Liquidation Value” on any date means, with

respect to (x) any share of Senior Preferred Stock other than any Additional

Shares, the sum of (l) $100.00 per share and (2) the aggregate of all dividends

accreted on such share until the most recent Dividend Payment Date upon which

an accretion to Liquidation Value has occurred (or if such date is a Dividend

Payment Date upon which an accretion to Liquidation Value has occurred, such

date); provided that in the event

of an actual liquidation, dissolution or winding up of the Corporation or the

redemption of any shares of Senior Preferred Stock pursuant to Section 5

hereunder, the amount referred to in (2) shall be calculated by including

dividends accreting to the actual date of such liquidation, dissolution or

winding up or the redemption date, as the case may be, rather than the Dividend

Payment Date referred to above and provided

further that in no event will dividends accrete beyond the earlier

of (i) the Cash Pay Date and (ii) the most recent Dividend Payment Date prior

to the Dividend Payment Date on which dividends on the Senior Preferred Stock

are payable in Additional Shares and (y) any Additional Share, the Applicable

Liquidation Value. All accretions to Liquidation Value will be calculated using

compounding on a quarterly basis. Except as provided in the preceding

sentences, holders of shares of Senior Preferred Stock shall not be entitled to

any distribution in the event of liquidation, dissolution or winding up of the

affairs of the Corporation. If, upon any liquidation, dissolution or winding up

of the Corporation, the assets of the Corporation, or proceeds thereof,

 

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distributable among the holders of the shares of Senior Preferred Stock

shall be insufficient to pay in full the preferential amount aforesaid and

liquidating payments on any Parity Securities, then such assets, or the

proceeds thereof, shall be distributed among the holders of shares of Senior

Preferred Stock and any such other Parity Securities ratably in accordance with

the respective amounts that would be payable on such shares of Senior Preferred

Stock and any such other stock if all amounts payable thereon were paid in

full. For the purposes of this paragraph (4), (i) a consolidation or merger of

the Corporation with one or more corporations, or (ii) a sale or transfer of

all or substantially all of the Corporation’s assets, shall not be deemed to be

a liquidation, dissolution or winding up, voluntary or involuntary, of the

Corporation.

 

(b)           Subject

to the rights of the holders of any Parity Securities, after payment shall have

been made in full to the holders of the Senior Preferred Stock, as provided in

this paragraph (4), any other series or class or classes of Junior Securities

shall, subject to the respective terms and provisions (if any) applying

thereto, be entitled to receive any and all assets remaining to be paid or

distributed, and the holders of the Senior Preferred Stock shall not be

entitled to share therein.

 

(c)           The

Applicable Liquidation Value of any Additional Shares shall be the Liquidation

Value of Senior Preferred Stock outstanding immediately prior to the first

Dividend Payment Date occurring after a request for payment in Additional

Shares has been made in accordance with Section 3(b).

 

(5) Redemption. (a) Redemption Upon Consummation of Public Offering.

The Corporation may, at its option, to the extent it shall have funds legally

available for such payment, redeem, prior to September 30, 2001, in whole but

not in part, shares of Senior Preferred Stock, at a redemption price per share

equal to 114% of the Liquidation Value, in cash, plus accrued and unpaid cash

dividends on such shares to the date fixed for redemption, without interest,

provided that the Corporation shall not redeem any shares of Senior Preferred

Stock pursuant to this Paragraph 5(a) unless (i) prior to such redemption a

Public Offering shall have been consummated, and (ii) the aggregate redemption

price of the shares of Senior Preferred Stock redeemed pursuant to this Section

5(a) does not exceed the net proceeds received by the Corporation in such

Initial Public Offering.

 

“Public

Offering” shall mean any underwritten public offering of

Common Stock pursuant to an effective registration statement under the

Securities Act of 1933, as amended, and shall, in addition, for the purposes of

Section 5(a) hereof, include any sale, pursuant to such an underwritten

registered public offering, following the Closing Date of any common stock

 

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by any affiliate of the Corporation, the net proceeds of which are

contributed or loaned to the Corporation in such a manner that such proceeds

may lawfully be used for the redemption of the Senior Preferred Stock.

 

“Closing

Date” shall have the meaning ascribed to such term in the

Investors’ Agreement.

 

“Investors’

Agreement” means the Investors’ Agreement dated as of the

Closing Date by and among DeCrane Holdings Co., DLJ Merchant Banking Partners

II, L.P., DLJ Merchant Banking Partners II-A, L.P., DLJ Offshore Partners II,

C. V., DLJ Diversified Partners, L.P., DLJ Diversified Partners-A, L.P., DLJ

Millennium Partners, L.P., DLJ Millennium Partners-A, L.P., DLJMB Funding II,

Inc., DLJ EAB Partners, L.P., DLJ First ESC L.P., UK Investment Plan 1997

Partners and DLJ ESC II L.P., (collectively, the “DLJMB Funds”), and certain other stockholders listed on the

signature pages thereof, as amended from time to time.

 

(b)           Redemption At the Option of the Corporation.

On and after September 30, 2003, to the extent the Corporation shall have funds

legally available for such payment, the Corporation may, at its option, redeem

shares of Senior Preferred Stock, at any time in whole but not in part, at

redemption prices per share in cash set forth in the table below, together with

accrued and unpaid cash dividends thereon to the date fixed for redemption,

without interest:

 

	

  Year Beginning September 30

  	

   

  	

  Percentage

  of Liquidation Value

  	

   

  
	

  2003

  	

   

  	

  107.000

  	

  %

  
	

  2004

  	

   

  	

  104.667

  	

  %

  
	

  2005

  	

   

  	

  102.333

  	

  %

  
	

  2006 and

  thereafter

  	

   

  	

  100.00

  	

  %

  

 

In addition, at any time prior to September 30, 2003,

the Corporation may, at its option upon the occurrence of a Change of Control

(as defined below), redeem the Preferred Stock, in whole but not in part, upon not

less than 30 nor more than 60 days’ prior notice (but in no event may any such

redemption occur more than 60 days after the occurrence of such Change of

Control), in cash at a redemption price equal to the present value of the sum

of all the remaining dividends, premium and Liquidation Preference payments

that would become due on the Preferred Stock as if the Preferred Stock was to

remain outstanding and be redeemed on September 30, 2003, computed using a

discount rate equal to the Treasury Rate plus 50 basis points.

 

(c)           Redemption In the Event of a Change of Control.

In the event of a Change of Control, the Corporation shall, to the extent it

shall have funds legally available for such payment, offer to redeem all of the

shares of Senior Preferred Stock then outstanding, and shall redeem the shares

of Senior

 

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Preferred Stock of any holder of such shares that shall consent to such

redemption, upon a date no later than 30 days following the Change in Control,

at a redemption price per share equal to 101 % of the Liquidation Value, in

cash, plus accrued and unpaid cash dividends thereon to the date fixed for

redemption, without interest.

 

“Change

of Control” means such time as: (a) a “person” or “group” (within

the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of

1934, as amended), other than any person or group comprised solely of the

Initial Investors, has become the beneficial owner, by way of merger,

consolidation or otherwise, of 30% or more of the voting power of all classes

of voting securities of the Corporation, and such person or group has become

the beneficial owner of a greater percentage of the voting power of all classes

of voting securities of the Corporation than that beneficially owned by the

Initial Investors; or (b) a sale or transfer of all or substantially all of the

assets of the Corporation to any person or group (other than any group

consisting solely of the Initial Investors or their affiliates) has been consummated;

or (c) during any period of two consecutive years, individuals who at the

beginning of such period constituted the Board of Directors of the Corporation

(together with any new directors whose election was approved by a vote of a

majority of the directors then still in office, who either were directors at

the beginning of such period or whose election or nomination for the election

was previously so approved) cease for any reason to constitute a majority of

the directors of the Corporation, then in office.

 

“Initial

Investors” means the Stockholders (determined as of the

issuance of the Preferred Stock) and their Permitted Transferees, each as

defined in the Investors’ Agreement.

 

“Treasury

Rate” means, as of any redemption date, the yield to maturity

as of such redemption date of United States Treasury securities with a constant

maturity (as compiled and published in the most recent Federal Reserve

Statistical Release H.15 (519) that has become publicly available at least two

Business Days prior to the redemption date (or, if such Statistical Release is

no longer published, any publicly available source of similar market data))

most nearly equal to the period from the redemption date to September 30, 2003;

provided that if the period from

the redemption date to September 30, 2003 is less than one year, the weekly

average yield on actually traded United States Treasury securities adjusted to

a constant maturity of one year shall be used.

 

(d)           Mandatory Redemption.  To the extent the Corporation shall have

funds legally available for such payment, on September 30, 2009, if any shares

of the Senior Preferred Stock shall be outstanding, the Corporation shall

redeem all outstanding shares of the Senior Preferred Stock, at a 

 

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redemption price equal to the aggregate Liquidation Value, in cash,

together with any accrued and unpaid cash dividends thereon to the date fixed

for redemption, without interest.

 

(e)           Status of Redeemed Shares.  Shares of Senior Preferred Stock which have

been issued and reacquired in any manner, including shares purchased or

redeemed, shall (upon compliance with any applicable provisions of the laws of

the State of Delaware) have the status of authorized and unissued shares of the

class of Preferred Stock undesignated as to series and may be redesignated and

reissued as part of any series of the Preferred Stock; provided that no such issued and

reacquired shares of Senior Preferred Stock shall be reissued or sold as Senior

Preferred Stock.

 

(f)            Failure to Redeem.  If the Corporation is unable or shall fail

to discharge its obligation to redeem all outstanding shares of Senior

Preferred Stock pursuant to paragraph (5)(c) or 5(d) (each, a “Mandatory Redemption Obligation”), such

Mandatory Redemption Obligation shall be discharged as soon as the Corporation

is able to discharge such Mandatory Redemption Obligation. If and so long as

any Mandatory Redemption Obligation with respect to the Senior Preferred Stock

shall not be fully discharged, the Corporation shall not (i) directly or

indirectly, redeem, purchase, or otherwise acquire any Parity Security or

discharge any mandatory or optional redemption, sinking fund or other similar

obligation in respect of any Parity Securities (except in connection with a

redemption, sinking fund or other similar obligation to be satisfied pro rata

with the Senior Preferred Stock) or (ii) in accordance with paragraph 3(e),

declare or make any Junior Securities Distribution, or, directly or indirectly,

discharge any mandatory or optional redemption, sinking fund or other similar

obligation in respect of the Junior Securities.

 

(g)           Failure to Pay Dividends.  Notwithstanding the foregoing provisions of

this paragraph (5), unless full cumulative cash dividends (whether or not

declared) on all outstanding shares of Senior Preferred Stock shall have been

paid or contemporaneously are declared and paid or set apart for payment for

all dividend periods terminating on or prior to the applicable redemption date,

none of the shares of Senior Preferred Stock shall be redeemed, and no sum

shall be set aside for such redemption, unless shares of Senior Preferred Stock

are redeemed pro rata.

 

(6) Procedure for Redemption. (a) In the event the Corporation shall

redeem shares of Senior Preferred Stock pursuant to Sections 5(a), (b) or (d),

notice of such redemption shall be given by first class mail, postage prepaid,

mailed not less than 30 days nor more than 60 days prior to the redemption

date, to each holder of record of the shares to be redeemed at such holder’s

address as the same appears on the stock register of the Corporation; provided 

 

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that neither the failure to give such notice nor any defect therein

shall affect the validity of the giving of notice for the redemption of any

share of Senior Preferred Stock to be redeemed except as to the holder to whom

the Corporation has failed to give said notice or except as to the holder whose

notice was defective. Each such notice shall state: (i) the redemption date;

(ii) the number of shares of Senior Preferred Stock to be redeemed; (iii) the

redemption price; (iv) the place or places where certificates for such shares

are to be surrendered for payment of the redemption price; and (v) that

dividends on the shares to be redeemed will cease to accrue on such redemption

date.

 

(b)           In

the case of any redemption pursuant to Sections 5(a), (b) or (d) hereof, notice

having been mailed as provided in Section 6(b) hereof, from and after the

redemption date (unless default shall be made by the Corporation in providing

money for the payment of the redemption price of the shares called for

redemption), dividends on the shares of Senior Preferred Stock so called for

redemption shall cease to accrue, and all rights of the holders thereof as

stockholders of the Corporation (except the right to receive from the

Corporation the redemption price) shall cease. Upon surrender in accordance

with said notice of the certificates for any shares so redeemed (properly

endorsed or assigned for transfer, if the Board of Directors of the Corporation

shall so require and the notice shall so state), such share shall be redeemed

by the Corporation at the redemption price aforesaid. In case fewer than all

the shares represented by any such certificate are redeemed, a new certificate

shall be issued representing the unredeemed shares without cost to the holder

thereof.

 

(c)           In

the case of a redemption pursuant to Section 5(c) hereof, notice of such

redemption shall be given by first class mail, postage prepaid, mailed not more

than 10 days following the occurrence of the Change of Control and not less

than 20 days prior to the redemption date, to each holder of record of the

shares to be redeemed at such holder’s address as the same appears on the stock

register of the Corporation; provided that

neither the failure to give such notice nor any defect therein shall affect the

validity of the giving of notice for the redemption of any share of Senior

Preferred Stock to be redeemed except as to the holder to whom the Corporation

has failed to give said notice or except as to the holder whose notice was

defective. Each such notice shall state: (i) that a Change of Control has

occurred; (ii) the redemption date; (iii) the redemption price; (iv) that such

holder may elect to cause the Corporation to redeem all or any of the shares of

Senior Preferred Stock held by such holder; (v) the place or places where

certificates for such shares are to be surrendered for payment of the redemption

price; and (vi) that dividends on the shares the holder elects to cause the

Corporation to redeem will cease to accrue on such redemption date.

 

9

 

Upon receipt of such notice, the holder shall, within

20 days of receipt thereof, return such notice to the Corporation indicating

the number of shares of Senior Preferred Stock such holder shall elect to cause

the Corporation to redeem, if any.

 

(d)           In

the case of a redemption pursuant to Section 5(c) hereof, notice having been

mailed as provided in Section 6(d) hereof, from and after the redemption date

(unless default shall be made by the Corporation in providing money for the

payment of the redemption price of the shares called for redemption), dividends

on such shares of Senior Preferred Stock as the holder elects to cause the

Corporation to redeem shall cease to accrue, and all rights of the holders

thereof as stockholders of the Corporation (except the right to receive from

the Corporation the redemption price) shall cease. Upon surrender in accordance

with said notice of the certificates for any shares so redeemed (properly

endorsed or assigned for transfer, if the Board of Directors of the Corporation

shall so require and the notice shall so state), such share shall be redeemed

by the Corporation at the redemption price aforesaid. In case fewer than all

the shares represented by any such certificate are redeemed, a new certificate

shall be issued representing the unredeemed shares without cost to the holder

thereof.

 

(7) Exchange. (a) Subject to the provisions of this

paragraph (7) the Corporation may, at its option, at any time and from time to

time on any Dividend Payment Date, exchange, to the extent it is legally

permitted to do so, all, but not less than all, outstanding shares (and

fractional shares) of Senior Preferred Stock, for Exchange Debentures; provided that (i) on or prior to the date

of exchange the Corporation shall have paid to or declared and set aside for

payment to the holders of outstanding shares of Senior Preferred Stock all

accrued and unpaid cash dividends on shares of Senior Preferred Stock through

the exchange date in accordance with the next succeeding paragraph; and (ii) no

event of default under the indenture (as defined in such indenture) governing

the Exchange Debentures shall have occurred and be continuing; and (iii) no

shares of Senior Preferred Stock are held on such date by the DLJMB Funds or

any of their Affiliates, or any of their Permitted Transferees. The principal

amount of Exchange Debentures deliverable upon exchange of a share of Senior

Preferred Stock, adjusted as hereinafter provided, shall be determined in

accordance with the Exchange Ratio (as defined below).

 

Cash dividends on any shares of Senior Preferred Stock

exchanged for Exchange Debentures which have accrued but have not been paid as

of the date of exchange shall be paid in cash. In no event shall the

Corporation issue Exchange Debentures in denominations other than $1,000 or in

an integral multiple thereof. Cash will be paid in lieu of any such fraction of

an Exchange Debenture which would otherwise have been issued (which shall be

 

10

 

determined with respect to the aggregate principal amount of Exchange

Debentures to be issued to a holder upon any such exchange). Interest will

accrue on the Exchange Debentures from the date of exchange.

 

Prior to effecting any exchange hereunder, the

Corporation shall appoint a trustee to serve in the capacity contemplated by an

indenture between the Corporation and such trustee, containing customary terms

and conditions.

 

The Exchange Ratio shall be, as of any Dividend

Payment Date, $1.00 (or fraction thereof) of principal amount of Exchange

Debenture for each $1.00 of (i) Liquidation Value plus (ii) accrued and unpaid

cash dividends, if any, per share of Senior Preferred Stock held by a holder on

the applicable exchange date.

 

“Affiliates”

shall have the meaning ascribed such term in the Investors’ Agreement.

 

“Exchange

Debentures” means 14% Senior Subordinated Exchange Debentures

due 2009 of the Corporation, to be issued pursuant to an indenture between the

Corporation and a trustee, containing customary terms and conditions approved

by the Board of Directors.

 

“Permitted

Transferees” shall have the meaning ascribed to such term in

the Investors’ Agreement.

 

(b)           Procedure for Exchange. (i) In the event

the Corporation shall exchange shares of Senior Preferred Stock, notice of such

exchange shall be given by first class mail, postage prepaid, mailed not less

than 30 days nor more than 60 days prior to the exchange date, to each holder

of record of the shares to be exchanged at such holder’s address as the same

appears on the stock register of the Corporation; provided that neither the failure to give such notice nor

any defect therein shall affect the validity of the giving of notice for the

exchange of any share of Senior Preferred Stock to be exchanged except as to

the holder to whom the Corporation has failed to give said notice or except as

to the holder whose notice was defective. Each such notice shall state: (A) the

exchange date; (B) the number of shares of Senior Preferred Stock to be

exchanged and, if fewer than all the shares held by such holder are to be

exchanged, the number of shares to be exchanged from such holder; (C) the

Exchange Ratio; (D) the place or places where certificates for such shares are

to be exchanged for notes evidencing the Exchange Debentures to be received by

the exchanging holder; and (E) that dividends on the shares to be exchanged

will cease to accrue on such exchange date.

 

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(ii)           Prior to giving notice of intention

to exchange, the Corporation shall execute and deliver with a bank or trust

company selected by the Corporation an indenture containing customary terms and

conditions. The Corporation will cause the Exchange Debentures to be

authenticated on the Dividend Payment Date on which the exchange is effective,

and will pay interest on the Exchange Debentures at the rate and on the dates

specified in such indenture from the exchange date.

 

The Corporation will not

give notice of its intention to exchange under paragraph 6(b)(i) hereof unless

it shall file at the place or places (including a place in the Borough of

Manhattan, The City of New York) maintained for such purpose an opinion of

counsel (who may be an employee of the Corporation) to the effect that (i) the

indenture has been duly authorized, executed and delivered by the Corporation,

has been duly qualified under the Trust Indenture Act of 1939 (or that such

qualification is not necessary) and constitutes a valid and binding instrument

enforceable against the Corporation in accordance with its terms (subject, as to

enforcement, to bankruptcy, insolvency, reorganization and other laws of

general applicability relating to or affecting creditors’ rights and to general

equity principles, and subject to such other qualifications as are then

customarily contained in opinions of counsel experienced in such matters), (ii)

the Exchange Debentures have been duly authorized and, when executed and

authenticated in accordance with the provisions of the indenture and delivered

in exchange for the shares of Preferred Stock, will constitute valid and

binding obligations of the Corporation entitled to the benefits of the

indenture (subject as aforesaid), (iii) neither the execution nor delivery of

the indenture or the Exchange Debentures nor compliance with the terms,

conditions or provisions of such instruments will result in a breach or

violation of any of the terms or provisions of, or constitute a default under,

any indenture, mortgage, deed of trust or agreement or instrument, known to

such counsel, to which the Corporation or any of its subsidiaries is a party or

by which it or any of them is bound, or any decree, judgment, order, rule or

regulation, known to such counsel, of any court or governmental agency or body

having jurisdiction over the Corporation and such subsidiaries or any of their

properties, (iv) the Exchange Debentures have been duly registered for such

exchange with the Securities and Exchange Commission under a registration

statement that has become effective under the Securities Act of 1933 (the “Act”) or that the exchange of the Exchange

Debentures for the shares of Senior Preferred Stock is exempt from registration

under the Act, and (v) the Corporation has sufficient legally available funds

for such exchange such that such exchange is permitted under applicable law.

 

12

 

(iii)          Notice having been mailed as

aforesaid, from and after the exchange date (unless default shall be made by

the Corporation in issuing Exchange Debentures in exchange for the shares

called for exchange), dividends on the shares of Senior Preferred Stock so

called for exchange shall cease to accrue, and all rights of the holders

thereof as stockholders of the Corporation (except the right to receive from

-the Corporation the Exchange Debentures and any rights such holder, upon the

exchange, may have as a holder of the Exchange Debenture) shall cease. Upon

surrender in accordance with said notice of the certificates for any shares so

exchanged (properly endorsed or assigned for transfer, if the Board of

Directors of the Corporation shall so require and the notice shall so state),

such share shall be exchanged by the Corporation for the Exchange Debentures at

the Exchange Ratio. In case fewer than all the shares represented by any such

certificate are exchanged, a new certificate shall be issued representing the

unexchanged shares without cost to the holder thereof.

 

(iv)          Each exchange shall be deemed to have

been effected immediately after the close of business on the relevant Dividend

Payment Date, and the person in whose name or names any Exchange Debentures

shall be issuable upon such exchange shall be deemed to have become the holder

of record of the Exchange Debentures represented thereby at such time on such

Dividend Payment Date.

 

(v)           Prior to the delivery of any

securities which the Corporation shall be obligated to deliver upon exchange of

the Senior Preferred Stock, the Corporation shall comply with all applicable

federal and state laws and regulations which require action to be taken by the

Corporation.

 

(c)           The

Corporation will pay any and all documentary stamp or similar issue or transfer

taxes payable in respect of the issue or delivery of notes evidencing Exchange

Debentures on exchange of the Senior Preferred Stock pursuant hereto; provided that the Corporation shall not be

required to pay any tax which may be payable in respect of any transfer

involved in the issue or delivery of Exchange Debentures in a name other than

that of the holder of the Senior Preferred Stock to be exchanged and no such

issue or delivery shall be made unless and until the person requesting such

issue or delivery has paid to the Corporation the amount of any such tax or has

established, to the satisfaction of the Corporation, that such tax has been

paid.

 

13

 

(8) Voting Rights. (a) The holders of record of shares of

Senior

 

Preferred Stock shall not be entitled to any voting

rights except as hereinafter provided in this paragraph (8), as otherwise

provided by law or as provided in the Investors’ Agreement.

 

(b)           If

and whenever (i) four consecutive or six quarterly cash dividends payable on

the Senior Preferred Stock have not been paid in full, (ii) for any reason

(including the reason that funds are not legally available for a redemption),

the Corporation shall have failed to discharge any Mandatory Redemption

Obligation (including a redemption in the Event of a Change of Control pursuant

to Section 5(c) hereof), (iii) the Corporation shall have failed to provide the

notice required by Section 6(d) hereof within the time period specified in such

section or (iv) the Corporation shall have failed to comply with Sections 3(d),

3(e) or 8(c) hereof, (1) the number of directors then constituting the Board of

Directors shall be increased by two and the holders of a majority of the

outstanding shares of Senior Preferred Stock, together with the holders of

shares of every other series of preferred stock upon which like rights have

been conferred and are exercisable (resulting form either the failure to pay

dividends or the failure to redeem) (any such series is referred to as the “Preferred Shares”), voting as a single

class regardless of series, shall be entitled to elect the two additional

directors to serve on the Board of Directors at any annual meeting of

stockholders or special meeting held in place thereof, or at a special meeting

of the holders of the Senior Preferred Stock and the Preferred Shares called as

hereinafter provided. Whenever (i) all arrears in cash dividends on the Senior

Preferred Stock and the Preferred Shares then outstanding shall have been paid

and cash dividends thereon for the current quarterly dividend period shall have

been paid or declared and set apart for payment, (ii) the Corporation shall have

fulfilled its Mandatory Redemption Obligation, (iii) fulfilled its obligation

to provide notice as specified in subsection (b)(iii) hereof, or (iv) the

Corporation shall have complied with Sections 3(d), 3(e), or 8(c) hereof, as

the case may be, then the right of the holders of the Senior Preferred Stock to

elect such additional two directors shall cease (but subject always to the same

provisions for the vesting of such voting rights in the case of any similar

future (i) arrearage in six consecutive quarterly cash dividends, (ii) failure

to fulfill any Mandatory Redemption Obligation, (iii) failure to fulfill the

obligation to provide the notice required by Section 6(d) hereof within the

time period specified in such section or (iv) failure to comply with Sections

3(d), 3(e), or 8(c)) and the terms of office of all persons elected as

directors by the holders of the Senior Preferred Stock shall forthwith

terminate and the number of the Board of Directors shall be reduced

accordingly. At any time after such voting power shall have been so vested in

the holders of shares of Senior Preferred Stock and the Preferred Shares, the

secretary of the Corporation may, and upon the 

 

14

 

written request of any holder of Senior Preferred Stock (addressed to

the secretary at the principal office of the Corporation) shall, call a special

meeting of the holders of the Senior Preferred Stock and of the Preferred

Shares for the election of the two directors to be elected by them as herein

provided, such call to be made by notice similar to that provided in the Bylaws

of the Corporation for a special meeting of the stockholders or as required by

law. If any such special meeting required to be called as above provided shall not

be called by the secretary within 20 days after receipt of any such request,

then any holder of shares of Senior Preferred Stock may call such meeting, upon

the notice above provided, and for that purpose shall have access to the stock

books of the Corporation. The directors elected at any such special meeting

shall hold office until the next annual meeting of the stockholders or special

meeting held in lieu thereof if such office shall not have previously

terminated as above provided. If any vacancy shall occur among the directors

elected by the holders of the Senior Preferred Stock and the Preferred Shares,

a successor shall be elected by the Board of Directors, upon the nomination of

the then-remaining director elected by the holders of the Senior Preferred

Stock and the Preferred Shares or the successor of such remaining director, to

serve until the next annual meeting of the stockholders or special meeting held

in place thereof if such office shall not have previously terminated as

provided above.

 

(c)           Without

the written consent of a majority of the outstanding shares of Senior Preferred

Stock or the vote of holders of a majority of the outstanding shares of Senior

Preferred Stock at a meeting of the holders of Senior Preferred Stock called

for such purpose, the Corporation will not (i) amend, alter or repeal any

provision of the Certificate of Incorporation (by merger or otherwise) so as to

adversely affect the preferences, rights or powers of the Senior Preferred

Stock; provided that any such

amendment that decreases the dividend payable on or the Liquidation Value of

the Senior Preferred Stock shall require the affirmative vote of holders of

each share of Senior Preferred Stock at a meeting of holders of Senior

Preferred Stock called for such purpose or written consent of the holder of

each share of Senior Preferred Stock; or (ii) create, authorize or issue any

class of stock ranking prior to, or on a parity with, the Senior Preferred

Stock with respect to dividends or upon liquidation, dissolution, winding up or

otherwise, or increase the authorized number of shares of any such class or

series, or reclassify any authorized stock of the Corporation into any such

prior or parity shares or create, authorize or issue any obligation or security

convertible into or evidencing the right to purchase any such prior or parity

shares, except that the Corporation may, without such approval, create

authorize and issue Parity Securities for the purpose of utilizing the proceeds

from the issuance of such Parity Securities for the redemption or repurchase of

all outstanding shares of Senior Preferred Stock in accordance with the terms

hereof or of the Investors’ Agreement.

 

15

 

(d)           In

exercising the voting rights set forth in this paragraph (8), each share of

Senior Preferred Stock shall have one vote per share, except that when any

other series of preferred stock shall have the right to vote with the Senior

Preferred Stock as a single class on any matter, then the Senior Preferred

Stock and such other series shall have with respect to such matters one vote

per $100 of Liquidation Value or other liquidation preference. Except as

otherwise required by applicable law or as set forth herein, the shares of

Senior Preferred Stock shall not have any relative, participating, optional or

other special voting rights and powers and the consent of the holders thereof

shall not be required for the taking of any corporate action.

 

(9) Reports. So long as any of the Senior Preferred Stock

is outstanding, the Corporation will furnish the holders thereof with the

quarterly and annual financial reports that the Corporation is required to file

with the Securities and Exchange Commission pursuant to Section 13 or Section

15(d) of the Securities Exchange Act of 1934 or, in the event the Corporation

is not required to file such reports, reports containing the same information

as would be required in such reports.

 

(10) General Provisions. (a) The term “Person” as used herein means any corporation, limited

liability company, partnership, trust, organization, association, other entity

or individual.

 

(b)           The

term “outstanding”, when used with

reference to shares of stock, shall mean issued shares, excluding shares held

by the Corporation or a subsidiary.

 

(c)           The

headings of the paragraphs, subparagraphs, clauses and subclauses used herein

are for convenience of reference only and shall not define, limit or affect any

of the provisions hereof.

 

(d)           Each

holder of Senior Preferred Stock, by acceptance thereof, acknowledges and

agrees that payments of dividends, interest, premium and principal on, and

exchange, redemption and repurchase of, such securities by the Corporation are

subject to restrictions on the Corporation contained in certain credit and

financing agreements.

 

SECOND: That the aforesaid amendment has been

consented to and authorized by the holders of all of the issued and outstanding

stock of each class of stock entitled to vote by written consent given in

accordance with the provisions of Section 228 of the General Corporation Law of

the State of Delaware.

 

16

 

THIRD: That the aforesaid amendment was duly adopted

in accordance with the applicable provisions of Sections 242 and 228 of the

General Corporation Law of the State of Delaware.

 

IN WITNESS WHEREOF, DeCrane Holdings Co. has caused

this Certificate of Amendment to be signed and attested by the undersigned this

2nd day of October, 1998.

 

	

   

  	

  DECRANE HOLDINGS CO.

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

  /s/ Thompson Dean

  	

   

  
	

   

  	

   

  	

  Name: Thompson Dean

  
	

   

  	

   

  	

  Title: President and Treasurer

  
	

   

  	

   

  	

   

  
	

  ATTEST:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ Timothy White

  	

   

  
	

   

  	

  Name: Timothy White

  	

   

  
	

   

  	

  Title: Vice President and Secretary

  	

   

  
										

 

17Word 8.0 Generic Normal Template, rev. 4/1/97, The Legal MacPac

Exhibit

10.10.5

 

 

DECRANE

AIRCRAFT HOLDINGS, INC.

SECOND AMENDMENT

TO THIRD

AMENDED AND RESTATED CREDIT AGREEMENT

This SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT

AGREEMENT (this “Amendment”) is dated as of March 19, 2002

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 (as successor to DLJ

Capital Funding, Inc.), as syndication agent for Lenders (“Syndication Agent”), and Bank

One, NA, as administrative agent for Lenders (“Administrative Agent”), and

is made with reference to that certain Third Amended and Restated Credit

Agreement, dated as of May 11, 2000, as amended by a First Amendment to Third

Amended and Restated Credit Agreement (the “First

Amendment”), dated as of June 30, 2000, and as further amended by an

Increased Commitments Agreement to Third Amended and Restated Credit Agreement

(“Increased Commitments Agreement”),

dated as of April 27, 2001 (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) consolidate the Working Capital Loans and Acquisition

Loans into one tranche of Revolving Loans, (ii) increase the interest rate

margins applicable to the Loans, (iii) modify the financial covenants in

certain respects and (iv) make certain other amendments as set forth below:

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, which shall be inserted in proper

alphabetical order:

“Acquired

Business” has the

meaning set forth in subsection 7.6C.

“Acquired

Business EBITDA” has the meaning set forth in subsection 7.6C.

“Revolving Lender” means a Lender having a Revolving Loan

Commitment.  Each Acquisition Lender and

Working Capital Lender shall be deemed to be a Revolving Lender as of the

Second Amendment Closing Date.

“Revolving Loan Commitment” means the commitment of a Revolving Lender to make

Revolving Loans to Company pursuant to subsection 2.1A(iii), and “Revolving

Loan Commitments” means such commitments of all Revolving Lenders in

the aggregate.  Each Lender’s

Acquisition Loan Commitment and each Lender’s Working Capital Loan Commitment,

in the aggregate, shall be deemed to be a single Revolving Loan Commitment of

such Lender as of the Second Amendment Closing Date.

 

 

 

“Revolving Loan Commitment Termination Date” means the Working Capital Loan

Commitment Termination Date.

“Revolving Loan Exposure” means, with respect to any Revolving Lender as of any

date of determination (i) prior to the termination of the Revolving Loan

Commitments, that Revolving Lender’s Revolving Loan Commitment and (ii) on

and after the termination of the Revolving Loan Commitments, the sum of

(a) the aggregate outstanding principal amount of the Revolving Loans of

that Revolving Lender plus (b) in the event that Revolving Lender

is an Issuing Lender, the aggregate Letter of Credit Usage in respect of all

Letters of Credit issued by that Revolving Lender (in each case net of any

participations purchased by other Revolving Lenders in such Letters of Credit

or any unreimbursed drawings thereunder) plus (c) the aggregate

amount of all participations purchased by that Revolving Lender in any

outstanding Letters of Credit or any unreimbursed drawings under any Letters of

Credit plus (d) in the case of Swing Line Lender, the aggregate

outstanding principal amount of all Swing Line Loans (net of any participations

therein purchased by other Revolving Lenders) plus (e) the

aggregate amount of all participations purchased by that Revolving Lender in

any outstanding Swing Line Loans.

“Revolving Loans” means the Loans made by Revolving Lenders to Company

pursuant to subsection 2.1A(iii). 

Acquisition Loans and Working Capital Loans shall be deemed to be

Revolving Loans as of the Second Amendment Closing Date.

“Revolving Notes” means (i) the promissory notes of Company issued

pursuant to subsection 2.1D and (ii) any promissory notes issued by

Company in connection with assignments of the Revolving Loan Commitments and

Revolving Loans of any Revolving Lenders, in each case substantially in the

form of Exhibit XXXIII annexed hereto, as they may be amended,

supplemented or otherwise modified from time to time.

“Second Amendment Closing Date” means the date of the Second Amendment

to Third Amended and Restated Credit Agreement.

“Second Amendment to Third Amended and Restated Credit

Agreement” means

that certain Second Amendment to Third Amended and Restated Credit Agreement,

dated as of March 19, 2002, as it may be amended, supplemented or

otherwise modified from time to time.

“Third Amended and Restated Credit Agreement” means that

certain Third Amended and Restated Credit Agreement dated as of May 11,

2000, as it may be amended, supplemented or otherwise modified from time to

time.

 “Total Utilization of Revolving Loan Commitments”

means, as at any date of determination, the sum of (i) the aggregate

principal amount of all outstanding Revolving Loans plus (ii) the

aggregate principal amount of all outstanding Swing Line Loans plus

(iii) the Letter of Credit Usage.

B.    Subsection 1.1 of the Credit Agreement is hereby amended by

deleting the definitions of “Consolidated Excess Cash Flow,” “Issuing Lender,”

“Loan,” “Notes,” “Pro Rata Share,” and “Requisite Lenders,” and inserting the

following definition in lieu thereof, which shall be inserted in proper

alphabetical order:

 

2

 

“Consolidated Excess Cash Flow” means, for any period, an amount (if

positive) equal to (i) the sum, without duplication, of the amounts for

such period of (a) Consolidated EBITDA and (b) the Consolidated Working Capital

Adjustment minus (ii) the sum, without duplication, of the amounts

for such period of (a) mandatory and scheduled repayments of the Loans and

scheduled, mandatory and optional repayments of other Consolidated Total Debt

(excluding repayments of Working Capital Loans, Acquisition Loans and Revolving

Loans except to the extent the Working Capital Loan Commitments, Acquisition

Loan Commitments or Revolving Loan Commitments, as the case may be, are

permanently reduced in connection with such repayments) in each case to the

extent actually made during such period, (b) Consolidated Capital

Expenditures paid in cash (without duplication, net of any proceeds of any

related financings with respect to such expenditures), (c) Consolidated

Interest Expense paid in cash, (d) the amount of taxes based on income of

Company and its Subsidiaries paid or payable in cash during such period, (e)

the amount paid for Permitted Acquisitions permitted and actually made under

subsection 7.7(viii) and Investments permitted and actually made under

subsection 7.3(xiii) but only to extent paid in cash from Company’s or its

Subsidiaries cash balances; (f) any payments with respect to Earn-Outs actually

paid during such period, (g) gains on any sale, lease, conveyance, or other

disposition of any asset (other than in the ordinary course of business), and

(h) any distributions with respect to minority interests made during such

period.

“Issuing Lender” means, First Chicago in its capacity as issuer of a

Letter of Credit or, if First Chicago declines to issue such Letter of Credit

in accordance with subsection 3.1B(ii), then any other Revolving Lender that at

the request of Company agrees to issue a Letter of Credit pursuant to

subsection 3.1B(ii).

“Loan” or “Loans” means one or more of the Tranche A Term Loans, Tranche

B Term Loans, Tranche D Term Loans, Swing Line Loans or Revolving Loans or any

combination thereof.

“Notes” means one or more of the Tranche A Term Notes, Tranche B Term Notes,

Tranche D Term Notes, Swing Line Notes or Revolving Notes or any combination

thereof.

“Pro Rata Share” means (i) with respect to all payments,

computations and other matters relating to the Tranche A Term Loan Commitments

or the Tranche A Term Loan of any Lender, the percentage obtained by dividing

(x) the Tranche A Term Loan Exposure of that Lender by (y) the

aggregate Tranche A Term Loan Exposure of all Lenders, (ii) with respect to all

payments, computations and other matters relating to the Tranche B Term Loan

Commitments or the Tranche B Term Loan of any Lender, the percentage obtained

by dividing (1) the Tranche B Term Loan Exposure of that Lender by

(2) the aggregate Tranche B Term Loan Exposure of all Lenders, (iii) with

respect to all payments, computations and other matters relating to the Tranche

D Term Loan Commitment or the Tranche D Term Loan of any Lender, the percentage

obtained by dividing (x) the Tranche D Term Loan Exposure of that

Lender by (y) the aggregate Tranche D Term Loan Exposure of all

Lenders, (iv) with respect to all payments, computations and other matters

relating to the Revolving Loan Commitment or the Revolving Loans of any Lender

or any Letters of Credit issued or participations therein purchased by any

Lender or any participations in any Swing Line Loans purchased or deemed

purchased by any Revolving Lender, the percentage obtained by dividing

(x) the Revolving Loan Exposure of that Lender by (y) the

aggregate Revolving Loan Exposure of all Lenders, and (v) for all other

purposes with respect to each Lender, the percentage obtained by dividing

(x) the sum of the Tranche A Term Loan Exposure of that Lender plus

the Tranche B Term Loan Exposure of that Lender plus the Tranche D Term

 

3

 

Loan Exposure of that Lender plus the Revolving

Loan Exposure of that Lender by (y) the sum of the aggregate

Tranche A Term Loan Exposure of all Lenders plus the aggregate Tranche B

Term Loan Exposure of all Lenders plus the aggregate Tranche D Term Loan

Exposure of all Lenders plus the aggregate Revolving Loan Exposure of

all Lenders, in any such case as the applicable percentage may be adjusted by

assignments permitted pursuant to subsection 10.1.

“Requisite Lenders” means on any date, Lenders having or holding more

than 50% of the sum of (i) the aggregate Tranche A Term Loan Exposure of

all Lenders plus (ii) the aggregate Tranche B Term Loan Exposure of all

Lenders plus (iii) the aggregate Tranche D Term Loan Exposure of all

Lenders plus (iv) the aggregate Revolving Loan Exposure of all

Lenders, in each case on such date.

C.    Subsection 1.1 of the Credit Agreement is hereby further amended

by inserting the following at the end of the first paragraph of the definition

of the term “Permitted Acquisition”:

; and provided  further that the sum of

the cash consideration paid for any Acquired Business and the maximum amount of

any potential Earn-outs (notwithstanding the provisions of clause (ii) below)

on and after the Second Amendment Closing Date shall not exceed the sum of (1)

the Net Securities Proceeds of any equity Securities issued by Company that are

not required to be used to prepay the Loans pursuant to subsection 2.4B and (2)

an amount equal to the lower of (a) 3.5 and (b) the then applicable maximum Net

Senior Debt Ratio (as set forth in subsection 7.6E) times an amount

equal to the Acquired Business EBITDA calculated for the Acquired Business.

 

1.2          Amendments

to Section 2: Amounts and Terms of Commitments and Loans

A.    The first paragraph of subsection 2.1A of the Credit Agreement is

hereby amended by deleting it in its entirety and substituting the following

therefor:

A.            Commitments.  Subject to the terms and conditions of this

Agreement and in reliance upon the representations and warranties of Company

herein set forth, each Tranche A Term Loan Lender hereby severally agrees to

make the Tranche A Term Loans described in subsection 2.1A(i), each Tranche B

Term Loan Lender hereby severally agrees to make the Tranche B Term Loans

described in subsection 2.1A(ii), each Revolving Lender hereby severally agrees

to make the Revolving Loans described in subsection 2.1A(iii), Swing Line

Lender hereby agrees to make the Swing Line Loans described in subsection

2.1A(iv) and each Tranche D Term Loan Lender hereby severally agrees to make

the Tranche D Term Loans described in subsection 2.1A(vi).

B.    Subsection 2.1A(iii) of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

(iii)          Revolving Loans.  Each Revolving Lender severally agrees,

subject to the limitations set forth below with respect to the maximum amount

of Revolving Loans permitted to be outstanding from time to time, to lend to

Company from time to time during the period from the Second Amendment Closing

Date to but excluding the Revolving Loan Commitment Termination Date an

aggregate amount not exceeding its Pro Rata Share of the aggregate amount of

the Revolving Loan Commitments to be used for the purposes identified in

subsections 2.5B.  The original amount

of each Revolving Lender’s Revolving Loan

 

4

 

Commitment equals the

amount of the Revolving Lender’s Working Capital Loan Commitment plus its

Acquisition Loan Commitment immediately prior to the Second Amendment Closing

Date and the aggregate original amount of the Revolving Loan Commitments is

$50,000,000; provided that the Revolving Loan Commitments of the

Revolving Lenders shall be adjusted to give effect to any assignments of the

Revolving Loan Commitments pursuant to subsection 10.1B; and provided  further

that the amount of the Revolving Loan Commitments shall be reduced from time to

time by the amount of any reductions thereto made pursuant to subsection

2.4B(ii).  Each Revolving Lender’s

Revolving Loan Commitment shall expire on the Revolving Loan Commitment

Termination Date and all Revolving Loans and all other amounts owed hereunder

with respect to the Revolving Loans and the Revolving Loan Commitments shall be

paid in full no later than that date. 

Amounts borrowed under this subsection 2.1A(iii) may be repaid and, at

any time to but excluding the Revolving Loan Commitment Termination Date,

reborrowed.

Anything contained in

this Agreement to the contrary notwithstanding, in no event shall the Total

Utilization of Revolving Loan Commitments at any time exceed the Revolving Loan

Commitments then in effect.

On the Second Amendment Closing Date, (i) each

Revolving Lender shall be deemed to have made to Company a Revolving Loan in a

principal amount equal to the aggregate principal amount of the Acquisition

Loans and the Working Capital Loans of such Lender outstanding immediately

prior to the Second Amendment Closing Date and (ii) each such Acquisition Loan

and Working Capital Loan shall be deemed to have been repaid in full (and

Company shall not be obligated to make any payments under Section 2.6D with

respect to such repayment).

C.    Subsection 2.1A(iv) of the Credit Agreement is hereby amended by

deleting the proviso phrase in the penultimate sentence of the first paragraph,

which reads “; provided that the Swing Line Loan Commitment shall expire

immediately and without further action on October 31, 1998, if the Tranche B Term

Loans are not made on or before that date,” and by deleting the references to

‘Working Capital Lender’ each time such phrase appears therein and substituting

the phrase ‘Revolving Lender’ in lieu thereof, by deleting the references to

‘Working Capital Lender’s’ each time such phrase appears therein and

substituting the phrase ‘Revolving Lender’s’ in lieu thereof, by deleting the

references to ‘Working Capital Loan Commitment’ each time such phrase appears

therein and substituting the phrase ‘Revolving Loan Commitment’ in lieu

thereof, by deleting the references to ‘Working Capital Loan Commitments’ each

time such phrase appears therein and substituting the phrase ‘Revolving Loan

Commitments’ in lieu thereof, by deleting the references to ‘Working Capital Loan

Commitment Termination Date’ each time such phrase appears therein and

substituting the phrase ‘Revolving Loan Commitment Termination Date’ in lieu

thereof, by deleting the references to ‘Working Capital Lenders’ each time such

phrase appears therein and substituting the phrase ‘Revolving Lenders’ in lieu

thereof, by deleting the references to ‘Working Capital Note’ each time such

phrase appears therein and substituting the phrase ‘Revolving Note’ in lieu

thereof, by deleting the references to ‘Working Capital Loan’ each time such

phrase appears therein and substituting the phrase ‘Revolving Loan’ in lieu

thereof,  and by deleting the references

to ‘Working Capital Loans’ each time such phrase appears therein and substituting

the phrase ‘Revolving Loans’ in lieu thereof.

D.    Subsection 2.1A of the Credit Agreement is further amended by

deleting clause (v) thereof.

 

5

 

E.     The first paragraph of subsection 2.1B of the Credit Agreement

is hereby amended by deleting references to “Working Capital Loans’ each time

such phrase appears therein and substituting the phrase ‘Revolving Loans’ in

lieu thereof.

F.     The first paragraph of subsection 2.1C of the Credit Agreement

is hereby amended by deleting it in its entirety and substituting the following

therefor:

C.            Disbursement

of Funds.  All Loans (other than Swing

Line Loans) under this Agreement shall be made by Lenders simultaneously and

proportionately to their respective Pro Rata Shares of the Tranche A Term Loan

Commitment, the Tranche B Term Loan Commitment, the Tranche D Term Loan

Commitment and the Revolving Loan Commitment, as the case may be, it being

understood that no Lender shall be responsible for any default by any other

Lender in that other Lender’s obligation to make a Loan requested hereunder nor

shall the Commitment of any Lender to make the particular type of Loan

requested be increased or decreased as a result of a default by any other

Lender in that other Lender’s obligation to make a Loan requested

hereunder.  Promptly after receipt by

Administrative Agent of a Notice of Borrowing pursuant to subsection 2.1B (or

telephonic notice in lieu thereof), Administrative Agent shall notify each

Lender or Swing Line Lender, as the case may be, of the proposed

borrowing.  Each Lender shall make the

amount of its Loan available to Administrative Agent not later than

1:00 P.M. (Chicago time) on the applicable Funding Date, in each case in

same day funds in Dollars, at the Funding and Payment Office.  Except as provided in subsection 2.1A(iv) or

subsection 3.3B with respect to Revolving Loans used to repay Refunded Swing

Line Loans or to reimburse any Issuing Lender for the amount of a drawing under

a Letter of Credit issued by it, upon satisfaction or waiver of the conditions

precedent specified in subsections 4.1 (in the case of Loans made on the

Closing Date), 4.2 (in the case of Loans made on the Merger Date), 4.3 (in the

case of Revolving Loans) and 4.4 (in the case of all Loans (other than Tranche

A Term Loans made on the Merger Date)), Administrative Agent shall make the

proceeds of such Loans available to Company on the applicable Funding Date by

2:00 P.M. (Chicago time), by causing an amount of same day funds in Dollars

equal to the proceeds of all such Loans received by Administrative Agent from

Lenders or Swing Line Lender, as the case may be, to be credited to the account

of Company at the Funding and Payment Office.

G.    Subsection 2.1D of the Credit Agreement is hereby amended by

adding the following paragraph at the end of such subsection:

Company shall execute and deliver on and after the

Second Amendment Closing Date to each Revolving Lender (or to Administrative

Agent for that Lender) that has so requested, upon return to Company of the

Acquisition Note and Working Capital Note of such Lender, a Revolving Note

substantially in the form of Exhibit XXXIII annexed hereto to

evidence that Lender’s Revolving Loans, in the principal amount of that

Lender’s Revolving Loan Commitment and with other appropriate insertions.  Each Acquisition Note and each Working

Capital Note of a Lender shall be deemed to be the Revolving Note of such

Lender as of the Second Amendment Closing Date, and shall represent the

Revolving Loan Commitment of such Lender and the obligation of Company to repay

Revolving Loans to the holder of such Notes as provided herein, it being

understood that on and after the Second Amendment Closing Date the Acquisition

Note and the Working Capital Note of each Revolving Lender shall each evidence

the one and same obligation of Company to repay the Revolving Loans of such

Revolving Lender and that upon repayment in full of such Revolving Loans and

the termination of the Revolving Commitment of such Revolving Lender Company

shall have no obligations under the Acquisition Note and the Working Capital

Note of such Lender. A Revolving

 

6

 

Lender may, but is not

required to, exchange its Acquisition Note or its Working Capital Note for a

Revolving Note at any time on or after the Second Amendment Closing Date.

H.    Subsection 2.2A of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

A.            Rate

of Interest.  Subject to the

provisions of subsection 2.6, each Loan shall bear interest on the unpaid

principal amount thereof from the date made through maturity (whether by

acceleration or otherwise) at a rate determined by reference to the Base Rate

or the Adjusted Eurodollar Rate.  Each

Swing Line Loan shall bear interest on the unpaid principal amount thereof from

the date made through maturity (whether by acceleration or otherwise) at a rate

determined by reference to the Base Rate. 

The applicable basis for determining the rate of interest with respect

to any Loan shall be selected by Company initially at the time a Notice of

Borrowing is given with respect to such Loan pursuant to subsection 2.1B, and

the basis for determining the interest rate with respect to any Loan may be

changed from time to time pursuant to subsection 2.2D.

(i)            (a)           Subject

to the provisions of subsection 2.2E, the Tranche A Term Loans and the

Revolving Loans shall bear interest through maturity as follows:

(1)                   if a Base Rate Loan, then at

the sum of the Base Rate plus the Base Rate Margin set forth in the

table below opposite the Consolidated Leverage Ratio as set forth in the most

recent Margin Determination Certificate delivered pursuant to subsection

6.1(iv); or

(2)                   if a Eurodollar Rate Loan,

then at the sum of the Adjusted Eurodollar Rate for the Interest Period

applicable to such Loan plus the Eurodollar Rate Margin set forth in the

table below opposite the Consolidated Leverage Ratio as set forth in the most

recent Margin Determination Certificate delivered pursuant to subsection 6.1(iv):

 

	

  Consolidated

  Leverage Ratio

  	

   

  	

  Applicable Eurodollar

  Rate Margin

  	

   

  	

  Applicable Base

  Rate Margin

  	

   

  
	

  Greater than or

  equal to 5.00:1.00

  	

   

  	

  3.75

  	

  %

  	

  2.50

  	

  %

  
	

  Greater

  than or equal to 4.50:1.00

  but less than 5.00:1.00

  	

   

  	

  3.50

  	

  %

  	

  2.25

  	

  %

  
	

  Greater

  than or equal to 4.00:1.00

  but less than 4.50:1.00

  	

   

  	

  3.25

  	

  %

  	

  2.00

  	

  %

  
	

  Greater

  than or equal to 3.50:1.00

  but less than 4.00:1.00

  	

   

  	

  2.75

  	

  %

  	

  1.50

  	

  %

  
	

  Greater

  than or equal to 3.00:1.00

  but less than 3.50:1.00

  	

   

  	

  2.50

  	

  %

  	

  1.25

  	

  %

  
	

  Less

  than 3.00:1.00

  	

   

  	

  2.00

  	

  %

  	

  0.75

  	

  %

  

 

7

 

provided that until the

First Amendment Closing Date, the applicable margin for Tranche A Term Loans,

Working Capital Loans and Acquisition Loans that are Eurodollar Rate Loans

shall be 2.25% per annum and for Tranche A Term Loans, Working Capital Loans,

Swing Line Loans and Acquisition Loans that are Base Rate Loans shall be 1.00%

per annum; provided  further that from the First Amendment Closing

Date until the delivery of the first Margin Determination Certificate pursuant

to subsection 6.1(iv) after the six-month anniversary of the First Amendment

Closing Date, the applicable margin for Tranche A Term Loans, Working Capital

Loans and Acquisition Loans that are Eurodollar Rate Loans shall be 2.75% per

annum and for Tranche A Term Loans, Working Capital Loans, Swing Line Loans and

Acquisition Loans that are Base Rate Loans shall be 1.50% per annum; provided

further that from the Third Amended and Restated Credit Agreement Closing

Date until delivery of the first Margin Determination Certificate pursuant to

subsection 6.1(iv) after the six-month anniversary of the Third Amended and

Restated Credit Agreement Date, the applicable margin for Tranche A Term Loans,

Working Capital Loans and Acquisition Loans that are Eurodollar Rate Loans shall

be the greater of (A) 3.00% per annum or (B) the Applicable Eurodollar Rate

Margin as shown in the preceding table, and the applicable margin for Tranche A

Term Loans, Working Capital Loans, Swing Line Loans and Acquisition Loans that

are Base Rate Loans shall be the greater of (A) 1.75% per annum or (B) the

Applicable Base Rate Margin as shown in the preceding table.

Changes in the applicable

margin for Tranche A Term Loans and Revolving Loans resulting from a change in

the Consolidated Leverage Ratio shall become effective as provided in

subsection 2.3C.

If at any time a Margin

Determination Certificate is not delivered at the time required pursuant to

subsection 6.1(iv), from the time such Margin Determination Certificate was

required to be delivered until delivery of such Margin Determination

Certificate, such applicable margins shall be the maximum percentage amount for

the relevant Loan set forth above.

(b)           Subject to the provisions of

subsection 2.2E, the Tranche B Term Loans shall bear interest through maturity

as follows:

(1)   if a Base Rate Loan, then (A) from the Third

Amended and Restated Credit Agreement Closing Date until the Second Amendment

Closing Date, at the sum of the Base Rate plus 2.25% per annum and (B)

from the Second Amendment Closing Date until maturity, at the sum of the Base

Rate plus 2.75% per annum; or

(2)   if a Eurodollar Rate Loan, then (A) from the

Third Amended and Restated Credit Agreement Closing Date until the Second

Amendment Closing Date, at the sum of the Adjusted Eurodollar Rate for the

Interest Period applicable to such Loan plus 3.50% per annum and (B)

from the Second Amendment Closing Date until maturity, at the sum of the

Adjusted Eurodollar Rate for the Interest Period applicable for such Loan plus

4.00% per annum;

 

8

 

(c)           Subject to the provisions of

subsection 2.2E, the Tranche D Term Loans shall bear interest through maturity

as follows:

(1)   if a Base Rate Loan, then (A) from the Third

Amended and Restated Credit Agreement Closing Date until the Second Amendment

Closing Date, at the sum of the Base Rate plus 2.75% per annum and (B)

from the Second Amendment Closing Date until maturity, at the sum of the Base

Rate plus 3.25% per annum; or

(2)   if a Eurodollar Rate Loan, then (A) from the

Third Amended and Restated Credit Agreement Closing Date until the Second

Amendment Closing Date, at the sum of the Adjusted Eurodollar Rate for the

Interest Period applicable to such Loan plus 4.00% per annum and (B)

from the Second Amendment Closing Date until maturity, at the sum of the

Adjusted Eurodollar Rate for the Interest Period applicable to such Loan plus

4.50% per annum.

(ii)           Subject to the provisions of

subsection 2.2E, the Swing Line Loans shall bear interest through maturity at

the sum of the Base Rate plus the Base Rate Margin for Revolving Loans

minus the commitment fee percentage then in effect for Revolving Loans as

determined pursuant to subsection 2.3A(i).

I.      Subsection 2.2B(v) of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

(v)           no Interest Period

with respect to any portion of the Tranche A Term Loans shall extend beyond

September 30, 2004, no Interest Period with respect to any portion of the

Tranche B Term Loans shall extend beyond September 30, 2005, no Interest

Period with respect to any portion of the Tranche D Term Loans shall extend

beyond December 17, 2006 and no Interest Period with respect to any portion of

the Revolving Loans shall extend beyond the Revolving Loan Commitment

Termination Date;

J.     Subsection 2.2B(vii) of the Credit Agreement is hereby amended

by deleting it in its entirety and substituting the following therefor:

(vii)         there shall be outstanding at any time

no more than four Interest Periods with respect to the Tranche A Term Loans,

four Interest Periods with respect to the Tranche B Term Loans, four Interest

Periods with respect to the Tranche D Term Loans and six Interest Periods with

respect to the Revolving Loans; and

K.    Subsection 2.2C of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

C.            Interest Payments. 

Subject to the provisions of subsection 2.2E, interest on each Loan

shall be payable in arrears on and to each Interest Payment Date applicable to

that Loan, upon any prepayment of that Loan (to the extent accrued on the

amount being prepaid) and at maturity (including final maturity); provided

that in the event any Swing Line Loans or Revolving Loans that are Base Rate

Loans are prepaid pursuant to subsection 2.4B(i), interest accrued on such

Swing Line Loans or Revolving Loans through the date of such prepayment shall

be payable on the next succeeding Interest Payment Date applicable to Base Rate

Loans (or, if earlier, at final maturity).

 

9

 

L.    Subsection 2.2E of the Credit Agreement is hereby amended by

deleting references to ‘Working Capital Loans’ each time such phrase appears

therein and substituting the phrase ‘Revolving Loans’ in lieu thereof.

M.   Subsection 2.3A of the Credit Agreement is further amended by

deleting clause (i) and inserting the following in lieu thereof:

(i)            Revolving Commitments.  Company agrees to pay to Administrative

Agent, for distribution to each Revolving Lender in proportion to that Lender’s

Pro Rata Share of the Revolving Loan Commitments, commitment fees for each day

during the period from and including the Second Amendment Closing Date to and

excluding the Revolving Loan Commitment Termination Date (or, if earlier, the

date of termination of the Revolving Loan Commitments in their entirety) on the

excess on such day of the Revolving Loan Commitments over the sum of (i) the

aggregate principal amount of outstanding Revolving Loans on such day plus (ii)

the Letter of Credit Usage (but not including any outstanding Swing Line Loans)

on such day at a rate per annum equal to the commitment fee percentage set

forth below opposite the Consolidated Leverage Ratio as set forth in the most recent

Margin Determination Certificate delivered pursuant to subsection 6.1(iv),

depending on utilization of the Revolving Loan Commitments (i.e., if the Total

Utilization of Revolving Loan Commitments exceeds 50% of the Revolving Loan

Commitments as of any date, the commitment fee percentage will be the lower of

the two rates per annum set forth below opposite the relevant Consolidated

Leverage Ratio):

	

   

  	

   

  	

  Revolving Loan

  Commitment Fee Percentage

  	

   

  
	

  Consolidated Leverage Ratio

  	

   

  	

  Utilization

  Less Than or Equal to

  50%

  	

   

  	

  Utilization

  Greater Than 50%

  	

   

  
	

  Greater than or equal to 5.00:1.00

  	

   

  	

  0.750

  	

  %

  	

  0.500

  	

  %

  
	

  Greater than or equal to 4.00:1.00

  but less than 5.00:1.00

  	

   

  	

  0.625

  	

  %

  	

  0.375

  	

  %

  
	

  Greater than or equal to 3.00:1.00

  but less than 4.00:1.00

  	

   

  	

  0.550

  	

  %

  	

  0.300

  	

  %

  
	

  Less than 3.00:1.00

  	

   

  	

  0.500

  	

  %

  	

  0.250

  	

  %

  

such commitment

fees to be calculated on the basis of a 360-day year and the actual number of

days elapsed and to be payable quarterly in arrears on each Quarterly Date of

each year, commencing on the first such date to occur after the Second

Amendment Closing Date, and on the Revolving Loan Commitment Termination

Date.  Changes in the applicable

commitment fee rate for Revolving Loan Commitments resulting from a change in

the Consolidated Leverage Ratio shall become effective as provided in

subsection 2.3C. In the event that Company fails to deliver a Margin

Determination Certificate timely in accordance with the provisions of

subsection 6.1(iv), from the time such Margin Determination Certificate was

required to be delivered until such date as such a Margin Determination

Certificate is actually delivered, the applicable commitment fee percentage

shall be the maximum percentage amount set forth above per annum.

 

10

 

N.    Subsection 2.3A of the Credit Agreement is further amended by

deleting clause (ii) and inserting the following in lieu thereof:

The commitment fees for

Acquisition Loan Commitments and Working Capital Loan Commitments shall be

payable by Company for all periods prior to the Second Amendment Closing Date

as set forth in the Agreement as in effect immediately prior to the Second

Amendment Closing Date.

O.    Subsection 2.3C of the Credit Agreement is hereby amended by

deleting the first sentence thereof in its entirety and substituting the

following therefor:

Subject to the last sentence of subsection

2.2A(i)(a), the last sentence of subsection 2.3A(i) and the last sentence of

subsection 2.3A(ii), the Consolidated Leverage Ratio used to compute the

applicable margin for Tranche A Term Loans and Revolving Loans for purposes of

subsection 2.2A(i) and subsection 3.2 and the applicable commitment fee rates

for the Revolving Loan Commitments for purposes of subsection 2.3A (such

applicable margins and commitment fee rates being referred to in this

subsection 2.3C as the “Applicable Margins”) for any day shall be

the Consolidated Leverage Ratio set forth in the Margin Determination

Certificate most recently delivered by Company to Administrative Agent on or

prior to such day pursuant to subsection 6.1(iv).

P.    Subsection 2.4B of the Credit Agreement is hereby amended by

deleting clauses (ii), (iii) and (iv) thereof in their entirety and

substituting the following therefor:

 (ii)          Voluntary

Reductions of Loan Commitments. 

Company may, upon not less than one Business Day’s prior written or

telephonic notice confirmed in writing to Administrative Agent (which original

written or telephonic notice Administrative Agent will promptly transmit by

telefacsimile or telephone to each Revolving Lender), at any time and from time

to time terminate in whole or permanently reduce in part, without premium or

penalty, the Revolving Loan Commitments in an amount up to the amount by which

the Revolving Loan Commitments exceed the Total Utilization of Revolving Loan

Commitments at the time of such proposed termination or reduction; provided

that any such partial reduction shall be in an aggregate minimum amount of

$1,000,000 and multiples of $100,000 in excess of that amount.  Company’s notice to Administrative Agent

shall designate the date (which shall be a Business Day) of such termination or

reduction and the amount of any partial reduction, and such termination or

reduction of the Revolving Loan Commitments, as the case may be, shall be

effective on the date specified in Company’s notice and shall reduce the

Revolving Loan Commitments of each Revolving Loan Lender proportionately to its

Pro Rata Share.

(iii)          Mandatory Prepayments and Mandatory

Reductions of Loan Commitments.  The

Loans shall be prepaid and/or the Revolving Loan Commitments shall be

permanently reduced in the amounts and under the circumstances set forth below,

all such prepayments and/or reductions to be applied as set forth below or as

more specifically provided in subsection 2.4B(iv):

(a)           Prepayments and Reductions From

Net Asset Sale Proceeds.  No later

than 30 calendar days following the date of receipt by Company or any of its

Subsidiaries of any Net Asset Sale Proceeds in respect of any Asset Sale

consummated after the consummation of the Merger (other than any

 

11

 

Asset Sale permitted

under subsections 7.7(iv) and 7.7(x) or an Asset Sale to Company or a

Subsidiary Guarantor), Company shall prepay the Loans and/or the Revolving Loan

Commitments shall be permanently reduced in an aggregate amount equal to such

Net Asset Sale Proceeds; provided that if Company states in the

Officers’ Certificate delivered pursuant to subsection 2.4B(iii)(e) that

Company or the applicable Subsidiary intends to apply, within 365 days after

the receipt of such Net Asset Sale Proceeds, all or a portion (as specified in

such Officers’ Certificate) of such Net Asset Sale Proceeds to a Property

Reinvestment Application Company shall not be required to prepay the Loans

and/or the Revolving Loan Commitments shall not be reduced by such amount to be

applied to a Property Reinvestment Application; provided further that to the

extent such amount of Net Asset Sale Proceeds is not applied to a Property

Reinvestment Application within such 365-day period, Company shall, on the last

day of such 365-day period prepay the Loans and/or the Revolving Loan

Commitments shall be permanently reduced by the aggregate amount equal to such

amount of Net Asset Sale Proceeds not so applied to Property Reinvestment

Application.

(b)           Prepayments and Reductions from

Net Insurance/Condemnation Proceeds. 

No later than the first Business Day following the date of receipt by

Administrative Agent or by Company or any of its Subsidiaries after the Merger

Date of any Net Insurance/Condemnation Proceeds in excess of $250,000 with

respect to any loss or taking or series of related losses or takings, Company

shall prepay the Loans and/or the Revolving Loan Commitments shall be

permanently reduced in an aggregate amount equal to the amount of such Net

Insurance/Condemnation Proceeds; provided, however, that (i) no

such prepayment and/or reduction shall be required to the extent under the

terms of any lease or other agreement existing on the date hereof such Net

Insurance/Condemnation Proceeds are required to be used to replace, rebuild or

repair the asset so damaged, destroyed or taken and (ii) if Company states in

the Officers’ Certificate delivered pursuant to subsection 2.4B(iii)(e) that

Company or the applicable Subsidiary intends to apply, within 365 days after

the receipt of such Net Insurance/Condemnation Proceeds, all or a portion (as

specified in such Officers’ Certificate) of such Net Insurance/Condemnation

Proceeds to a Property Reinvestment Application, Company shall not be required

to prepay Loans and/or the Revolving Loan Commitments shall not be reduced by

such amount to be applied to a Property Reinvestment Application; provided

further that to the extent such amount of Net Insurance/Condemnation

Proceeds is not applied to a Property Reinvestment Application within such

365-day period, Company shall, on the last day of such 365-day period prepay

the Loans and/or the Revolving Loan Commitments shall be permanently reduced by

the aggregate amount equal to such amount of such Net Insurance/Condemnation

Proceeds not so applied to a Property Reinvestment Application.

(c)           Prepayments and Reductions Due to

Issuance of Debt or Equity Securities. 

On the date of receipt by Parent, Company or any of its Subsidiaries of

the cash proceeds (any such cash proceeds, net of underwriting discounts and

commissions and other reasonable costs and expenses associated therewith,

including investment banking, legal,

 

12

 

brokerage, accounting

fees and expenses, being “Net Securities

Proceeds”), from the issuance of equity Securities of Parent,

Company or any of its Subsidiaries after the Merger Date (other than Excluded

Equity Proceeds) or of debt Securities of Company or any of its Subsidiaries

after the Merger Date (other than the proceeds of the issuance of Indebtedness

permitted by subsection 7.1 (including without limitation the proceeds from the

sale of the Senior Subordinated Notes)), Company shall prepay the Loans and/or

the Revolving Loan Commitments shall be permanently reduced in an aggregate

amount equal to such Net Securities Proceeds in the case of the proceeds of

debt Securities and in an aggregate amount equal to 50% of such Net Securities

Proceeds in the case of the proceeds of equity Securities; provided the

amount of such prepayment hereunder in respect of Net Securities Proceeds

constituting the proceeds of the issuance and sale of equity Securities shall

be limited to the amount necessary to reduce the amount of Indebtedness

included in the calculation of the Consolidated Leverage Ratio to the amount

that would result, on a pro forma basis after giving effect to such prepayment,

in a Consolidated Leverage Ratio of 3.50:1.00 or less at the end of the Fiscal

Quarter then most recently ended and (ii) no such prepayment in respect of Net

Securities Proceeds constituting the proceeds of the issuance and sale of

equity Securities shall be required to be made at such times as the

Consolidated Leverage Ratio at the end of the most recent Fiscal Quarter (as

evidenced by a Margin Determination Certificate delivered to Administrative

Agent pursuant to subsection 6.1(iv)) is equal to or less than 3.50:1.00.

(d)           Prepayments and Reductions from

Consolidated Excess Cash Flow.  In

the event that there shall be Consolidated Excess Cash Flow for any Fiscal Year

(commencing with the Fiscal Year ending December 31,1999), Company shall,

no later than the fifth Business Day after the delivery of financial statements

for such Fiscal Year, prepay the Loans and/or the Revolving Loan Commitments

shall be permanently reduced in an aggregate amount equal to 75% of such

Consolidated Excess Cash Flow less the aggregate amount of all voluntary

prepayments of Term Loans actually made in such Fiscal Year pursuant to

subsection 2.4B(i); provided that (i) the amount of such prepayment

hereunder in respect of Excess Cash Flow shall be limited to the amount

necessary to reduce the amount of Indebtedness included in the calculation of

the Consolidated Leverage Ratio to the amount that would result, on a pro forma

basis after giving effect to such prepayment, in a Consolidated Leverage Ratio

of 3.50:1 or less at the end of the Fiscal Quarter then most recently ended and

(ii) if as of the last day of such Fiscal Year, the Consolidated Leverage Ratio

(as evidenced by a Margin Determination Certificate delivered to Administrative

Agent pursuant to subsection 6.1(iv)) is equal to or less than 3.50:1.00, no

prepayments of any Loans and no reduction of the Revolving Loan Commitments or

amount of Consolidated Excess Cash Flow need be made.

(e)           Calculations of Net Proceeds

Amounts; Additional Prepayments and Reductions Based on Subsequent Calculations.  Concurrently with any prepayment of the

Loans and/or reduction of the Revolving Loan Commitments pursuant to

subsections 2.4B(iii)(a)-(d) and on the date any such prepayment and/or

reduction would have been required to

 

13

 

be made pursuant to

subsections 2.4B(iii)(a) or 2.4B(iii)(b) but for the application of the

provisos to such subsections, Company shall deliver to Administrative Agent an

Officer’s Certificate demonstrating the calculation of the amount (the “Net

Proceeds Amount”) of the applicable Net Asset Sale Proceeds or Net

Insurance/Condemnation Proceeds, or Net Securities Proceeds (as such term is

defined in subsection 2.4B(iii)(c)), or the applicable Consolidated Excess Cash

Flow, as the case may be (and which, in the case of Consolidated Excess Cash Flow,

may be the Officer’s Certificate delivered pursuant to subsection 6.1(iii) with

respect to the financial statements for the Fiscal Year to which such excess

cash flow relates if such Officer’s Certificate contains the required

information).  In the event that Company

shall subsequently determine that the actual Net Proceeds Amount was greater

than the amount set forth in such Officer’s Certificate, Company shall promptly

make an additional prepayment of the Loans (and/or, if applicable, the Revolving

Loan Commitments shall be permanently reduced) in an amount equal to the amount

of such excess, and Company shall concurrently therewith deliver to

Administrative Agent an Officer’s Certificate demonstrating the derivation of

the additional Net Proceeds Amount resulting in such excess.

(f)            Company shall not be required to

make any prepayment of Loans otherwise required by subsections 2.4B(iii)(a),

(b), (c) or (d) (and no reduction of the Revolving Loan Commitments shall take

effect) unless and until the aggregate principal amount of the Loans to be

prepaid and/or the Revolving Loan Commitments to be reduced is at least equal

to $250,000.

(iv)          Application of

Prepayments.

(a)           Application of Voluntary

Prepayments by Type of Loans and Order of Maturity.  Any voluntary prepayments pursuant to

subsection 2.4B(i) shall be applied to the Loans as specified by Company in the

applicable notice of prepayment; provided that in the event Company

fails to specify the Loans to which any such prepayment shall be applied, such

prepayment shall be applied first to repay outstanding Swing Line Loans

to the full extent thereof, second to repay outstanding Term Loans to

the full extent thereof and third to repay outstanding Revolving Loans

to the full extent thereof.  Any

voluntary prepayments of the Term Loans pursuant to subsection 2.4B(i) (whether

the application thereof is specified by Company or not) shall be applied to

prepay the Tranche A Term Loans, the Tranche B Term Loans, and the Tranche D

Term Loans on a pro rata basis (in accordance with the respective outstanding

principal amounts thereof) and to reduce the scheduled installments of

principal of the Tranche A Term Loans, the Tranche B Term Loans, and the

Tranche D Term Loans set forth in subsection 2.4A(i), 2.4A(ii) and 2.4A(iii) in

forward order of maturity.

(b)           Application of Mandatory

Prepayments by Type of Loans.  Any

amount (the “Applied Amount”)

required to be applied as a mandatory prepayment of the Loans and/or a

reduction of the Revolving Loan Commitments pursuant to subsections

2.4B(iii)(a)-(d) shall be applied first to prepay the Term Loans to the

full extent thereof, and second, to the extent of any remaining portion

of the Applied Amount, to prepay the Swing Line

 

14

 

Loans and thereafter to

prepay Revolving Loans to the full extent thereof and permanently to reduce the

Revolving Loan Commitments by the amount of such prepayment.

(c)           Application of Mandatory

Prepayments of Term Loans to Tranche A Term Loans, Tranche B Term Loans and

Tranche D Term Loans and the Scheduled Installments of Principal Thereof.  Any mandatory prepayments of the Term Loans

pursuant to subsection 2.4B(iii) shall be applied to prepay the Tranche A Term

Loans, the Tranche B Term Loans and the Tranche D Term Loans on a pro rata

basis (in accordance with the respective outstanding principal amounts thereof)

and to reduce the scheduled installments of principal of the Tranche A Term

Loans, the Tranche B Term Loans and the Tranche D Term Loans set forth in

subsections 2.4A(i), 2.4A(ii) and 2.4A(iii) in forward order of maturity.  Notwithstanding the foregoing, in the case

of any mandatory prepayment of the Tranche B Term Loans and the Tranche D Term

Loans, Company may elect to offer the Tranche B Term Loan Lenders and/or the

Tranche D Term Loan Lenders the option to waive the right to receive the amount

of such mandatory prepayment of the Tranche B Term Loans or the Tranche D Term

Loans, as applicable.  If any Tranche B

Term Loan Lender or Lenders or any Tranche D Term Loan Lender or Lenders, as

applicable, elect to waive the right to receive the amount of such mandatory

prepayment, 50% of the amount that otherwise would have been applied to

mandatorily prepay the Tranche B Term Loans or the Tranche D Term Loans, as

applicable, of such Lender or Lenders shall be applied instead to the further

prepayment of the Tranche A Term Loans (and any such prepayment shall reduce

scheduled installments of principal of the Tranche A Term Loans set forth in subsection

2.4A(i) in forward order of maturity), to the extent any are then outstanding

and the remaining amount shall be retained by Company.

(d)           Application of Prepayments to Base

Rate Loans and Eurodollar Rate Loans. 

Considering Tranche A Term Loans, Tranche B Term Loans, Tranche D

Term Loans and Revolving Loans being prepaid separately, any prepayment thereof

shall be applied as specified by Company to Administrative Agent on or prior to

the date of the relevant prepayment or, absent such specification, first to

Base Rate Loans to the full extent thereof before application to Eurodollar

Rate Loans, in each case in a manner which minimizes the amount of any payments

required to be made by Company pursuant to subsection 2.6D.

Q.    Subsection 2.5 of the Credit Agreement is hereby amended by

deleting subsections 2.5B and 2.5C in their entirety and substituting the

following in lieu of subsection 2.5B:

B.            Revolving Loans; Swing Line Loans.  The proceeds of the Revolving Loans

and any Swing Line Loans may be applied by Company for working capital and

general and other corporate purposes, including the making of advances to DAH

as described below.  The proceeds of the

Revolving Loans may also be applied by Company to finance directly or

indirectly the costs of Permitted Acquisitions.

 

15

 

1.3          Amendments

to Section 3:  Letters of Credit

A.    Subsection 3.1A of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

A.            Letters of Credit. 

In addition to Company requesting that Revolving Lenders make Revolving

Loans pursuant to subsection 2.1A(iii) and that Swing Line Lender make Swing

Line Loans pursuant to subsection 2.1A(iv), Company may request, in accordance

with the provisions of this subsection 3.1, from time to time during the period

from the Closing Date to but excluding the Revolving Loan Commitment

Termination Date, that Issuing Lender issue Letters of Credit for the account

of Company or any of its Subsidiaries (provided that Company shall be deemed to

be the account party hereunder and shall be fully liable under this Section 3

with respect to all Letters of Credit issued for the account of its

Subsidiaries) for the purposes specified in the definitions of Standby Letters

of Credit and Trade Letters of Credit. 

Subject to the terms and conditions of this Agreement and in reliance

upon the representations and warranties of Company herein set forth, Issuing

Lender shall, subject to subsection 3.1B(ii), issue such Letters of Credit in

accordance with the provisions of this subsection 3.1; provided that

Company shall not request that Issuing Lender issue (and Issuing Lender shall

not issue):

(i)            any Letter of Credit if, after

giving effect to such issuance, the Total Utilization of Revolving Loan

Commitments would exceed the Revolving Loan Commitments then in effect;

(ii)           any Letter of Credit if, after giving

effect to such issuance, the Letter of Credit Usage would exceed $5,000,000;

(iii)          any Standby Letter of Credit having an

expiration date later than the earlier of (a) the Revolving Loan

Commitment Termination Date and (b) the date that is one year from the

date of issuance of such Standby Letter of Credit; provided that the

immediately preceding clause (b) shall not prevent Company from requesting and

any Issuing Lender from agreeing that a Standby Letter of Credit will

automatically be extended for one or more successive periods not to exceed one

year each unless such Issuing Lender elects not to extend for any such

additional period (such Issuing Lender hereby agreeing that it shall only elect

not to extend such Standby Letter of Credit if, but only if, it has knowledge

that an Event of Default has occurred and is continuing); or

(iv)          any Letter of Credit denominated in a

currency other than Dollars.

B.    Subsections 3.1B, 3.2, 3.3, 3.4 and 3.6 of the Credit Agreement

are hereby amended by deleting the references to ‘Working Capital Lender’ each

time such phrase appears therein and substituting the phrase ‘Revolving Lender’

in lieu thereof, by deleting the references to ‘Working Capital Lender’s’ each

time such phrase appears therein and substituting the phrase ‘Revolving

Lender’s’ in lieu thereof, by deleting the references to ‘Working Capital

Lenders’ each time such phrase appears therein and substituting the phrase

‘Revolving Lenders’ in lieu thereof and by deleting the references to ‘Working

Capital Loans’ each time such phrase appears therein and substituting the

phrase ‘Revolving Loans’ in lieu thereof.

1.4          Amendment to Section 4:  Condition to Loans and Letters of Credit

 

Subsection

4.3 of the Credit Agreement is hereby amended by deleting it in its entirety

and substituting the following therefor:

 

16

 

4.3  Conditions to

Revolving Loans to Finance the Costs of Permitted Acquisitions. 

The obligation of Revolving Lenders to make Revolving Loans on each

Funding Date for the purpose of financing directly or indirectly a Permitted

Acquisition is subject to the following further condition precedent that

Company delivers a Permitted Acquisition Compliance Certificate and is

otherwise in compliance with subsection 7.7(vi).

1.5          Amendments

to Section 7:  Company’s Negative

Covenants

A.    Subsection 7.3(xii) of the Credit Agreement is hereby amended by

deleting the reference therein to ‘Acquistion Loan Commitments’ and

substituting ‘Revolving Loan Commitments’ in lieu thereof.

B.    Subsection 7.6B of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

B.            Maximum Leverage Ratio.  Company shall not permit the Consolidated Leverage Ratio as

of the last day of any Fiscal Quarter, beginning with the Fiscal Quarter ending

March 31, 2002, occurring during any period set forth below to exceed the

correlative ratio indicated:

	

  Period

  	

   

  	

  Maximum

  Consolidated

  Leverage Ratio

  	

   

  
	

  4th

  Fiscal Quarter, 2001

  	

   

  	

  4.50 x

  	

   

  
	

  1st

  Fiscal Quarter, 2002

  	

   

  	

  5.10 x

  	

   

  
	

  2nd

  Fiscal Quarter, 2002 through 3rd Fiscal Quarter, 2002

  	

   

  	

  5.50 x

  	

   

  
	

  4th

  Fiscal Quarter, 2002

  	

   

  	

  5.40 x

  	

   

  
	

  1st

  Fiscal Quarter, 2003

  	

   

  	

  5.00 x

  	

   

  
	

  2nd

  Fiscal Quarter, 2003

  	

   

  	

  4.75 x

  	

   

  
	

  3rd

  Fiscal Quarter, 2003

  	

   

  	

  4.60 x

  	

   

  
	

  4th

  Fiscal Quarter, 2003

  	

   

  	

  4.40 x

  	

   

  
	

  1st

  Fiscal Quarter, 2004 through 3rd Fiscal Quarter, 2004

  	

   

  	

  3.50 x

  	

   

  
	

  4th

  Fiscal Quarter, 2004 and thereafter

  	

   

  	

  3.00 x

  	

   

  

C.    Subsection 7.6C of the Credit Agreement is

hereby amended by deleting it in its entirety and substituting the following

therefor:

B.            Minimum Consolidated EBITDA.  Company shall not permit Consolidated EBITDA for the

consecutive four-Fiscal-Quarter period ending on the last day of any Fiscal

Quarter, beginning with the Fiscal Quarter ending March 31, 2002, occurring

during any period set forth below to be less than the correlative amount (the “Minimum EBITDA Amount”) indicated:

 

17

 

	

  Quarter

  Ended

  	

   

  	

  Minimum EBITDA Amount

  	

   

  
	

  4th Fiscal Quarter, 2001

  	

   

  	

  $74,783,200

  	

   

  
	

  1st Fiscal Quarter, 2002

  	

   

  	

  74,783,000

  	

   

  
	

  2nd Fiscal Quarter, 2002 through 4th

  Fiscal Quarter, 2002

  	

   

  	

  69,783,000

  	

   

  
	

  1st Fiscal Quarter, 2003

  	

   

  	

  74,783,000

  	

   

  
	

  2nd Fiscal Quarter, 2003

  	

   

  	

  76,283,000

  	

   

  
	

  3rd Fiscal Quarter, 2003

  	

   

  	

  77,283,000

  	

   

  
	

  4th Fiscal Quarter, 2003

  	

   

  	

  78,783,000

  	

   

  
	

  1st Fiscal Quarter, 2004 and thereafter

  	

   

  	

  82,783,200

  	

   

  

; provided

that

(x)            the

Minimum EBITDA Amount for the consecutive four-Fiscal-Quarter period ending at

the last day of any Fiscal Quarter during any period set forth above shall be

increased by an amount equal to 80% of the Acquired Business EBITDA of each

Acquired Business whose Acquired Business Date falls during the period from and

including the day following the Third Amended and Restated Credit Agreement

Closing Date to and including the last day of such Fiscal Quarter; and

(y)           to

the extent the amount of Consolidated EBITDA for the immediately preceding consecutive

four-Fiscal-Quarter period exceeds the amount of EBITDA required to be

maintained for such consecutive four-Fiscal-Quarter period pursuant to this

subsection, an amount equal to 50% of such excess amount may be carried forward

to (but only to) the then current Fiscal Quarter (any such amount to be

certified to Administrative Agent in the Compliance Certificate delivered for

the last Fiscal Quarter of such consecutive four-Fiscal-Quarter period).

For purposes of this

subsection 7.6C, the following terms have the following meanings:

“Acquired Business” means any business

acquired (whether through the purchase of assets or shares of capital stock) by

Company or any of its Subsidiaries after the Second Amended and Restated Credit

Agreement Closing Date.

“Acquired Business Date” means, with respect

to any Acquired Business, the date of consummation of the acquisition thereof

by Company or any of its Subsidiaries.

“Acquired

Business EBITDA” means, with respect to any Acquired Business, (x)

the consolidated net income of such Acquired Business for the consecutive

four-Fiscal-Quarter period ended on or most recently prior to its Acquired

Business Date and with respect to which financial statements are available on

the Acquired Business Date plus (y) to the extent deducted in

determining such consolidated net income for such period, the sum of (i)

consolidated interest expense, (ii) income taxes, (iii) depreciation, (iv)

amortization, (v) any extraordinary or non-recurring losses, and (vi) any

non-cash items minus (z) to the extent included in such consolidated net

income, extraordinary gains.

D.    Subsection 7.6D of the Credit Agreement is hereby amended by

deleting it in its entirety and substituting the following therefor:

 

18

 

D.            Minimum Interest Coverage Ratio.  Company shall not permit the

Consolidated Interest Coverage Ratio as of the last day of any Fiscal Quarter,

beginning with the Fiscal Quarter ending March 31, 2002, occurring during any

period set forth below to be less than the correlative ratio indicated:

	

  Period

  	

   

  	

  Minimum

  Interest Coverage

  Ratio

  	

   

  
	

  4th

  Fiscal Quarter, 2001 through 1st Fiscal Quarter, 2002

  	

   

  	

  2.25 x

  	

   

  
	

  2nd

  Fiscal Quarter, 2002 through 3rd Fiscal Quarter, 2002

  	

   

  	

  2.10 x

  	

   

  
	

  4th

  Fiscal Quarter, 2002

  	

   

  	

  2.15 x

  	

   

  
	

  1st

  Fiscal Quarter, 2003 through 4th Fiscal Quarter, 2003

  	

   

  	

  2.30 x

  	

   

  
	

  1st

  Fiscal Quarter, 2004 through 3rd Fiscal Quarter, 2004

  	

   

  	

  2.75 x

  	

   

  
	

  4th

  Fiscal Quarter, 2004 and thereafter

  	

   

  	

  3.00 x

  	

   

  

E.     Subsection 7.6E of the Credit Agreement is

hereby amended by deleting it in its entirety and substituting the following

therefor:

E.             Maximum Net Senior Debt Ratio.  Company shall not permit the Net

Senior Debt Ratio as of the last day of any Fiscal Quarter, beginning with the

Fiscal Quarter ending March 31, 2002, occurring during any period set forth

below to be less than the correlative ratio indicated:

	

  Period

  	

   

  	

  Maximum

  Net Senior Debt

  Ratio

  	

   

  
	

  4th

  Fiscal Quarter, 2001

  	

   

  	

  3.50 x

  	

   

  
	

  1st

  Fiscal Quarter, 2002

  	

   

  	

  3.80 x

  	

   

  
	

  2nd

  Fiscal Quarter, 2002 through 3rd Fiscal Quarter, 2002

  	

   

  	

  4.10 x

  	

   

  
	

  4th

  Fiscal Quarter, 2002

  	

   

  	

  4.00 x

  	

   

  
	

  1st

  Fiscal Quarter, 2003

  	

   

  	

  3.60 x

  	

   

  
	

  2nd

  Fiscal Quarter, 2003

  	

   

  	

  3.40 x

  	

   

  
	

  3rd

  Fiscal Quarter, 2003

  	

   

  	

  3.30 x

  	

   

  
	

  4th

  Fiscal Quarter, 2003

  	

   

  	

  3.10 x

  	

   

  
	

  1st

  Fiscal Quarter, 2004 and thereafter

  	

   

  	

  3.00 x

  	

   

  

 

F.     Subsection 7.8(i) of the Credit Agreement is hereby amended

by:  (i) deleting the phrase ‘plus

an additional aggregate amount equal to $10,000,000 in the aggregate for all

such Consolidated Capital Expenditures made after the Closing Date’; and (ii)

deleting the reference to  ‘Article 7’

and inserting ‘subsection 7.7’ in lieu thereof.

 

19

 

1.6          Amendment

to Section 8:  Events of Default

Section

8 of the Credit Agreement is hereby amended by deleting the references to

‘Working Capital Lenders’ each time such phrase appears therein and

substituting the phrase ‘Revolving Lenders’ in lieu thereof.

1.7          Amendments

to Section 10:  Miscellaneous

A.    Subsection 10.1 of the Credit Agreement is hereby amended by deleting

the references to ‘Working Capital Lender’ each time such phrase appears

therein and substituting the phrase ‘Revolving Lender’ in lieu thereof, by

deleting the references to ‘Working Capital Loan Commitment’ each time such

phrase appears therein and substituting the phrase ‘Revolving Loan Commitment’

in lieu thereof and by deleting the references to ‘Working Capital Loans’ each

time such phrase appears therein and substituting the phrase ‘Revolving Loans’

in lieu thereof.

B.    Subsection 10.1B(i) of the Credit Agreement hereby amended by

deleting references to ‘Exhibit VI’ and ‘or Exhibit VIII’ and

adding ‘Exhibit XXXI, Exhibit XXXII or Exhibit XXXIII’

after the phrase ‘Exhibit VII’  in the last sentence thereof.

1.8          Addition

and Modification of Exhibit and Schedule

A.    Exhibit XXXIII. 

The Exhibits are hereby amended by adding the information contained in Annex

A to this Amendment as Exhibit XXXIII to the Credit Agreement.

B.    Schedule 2.1. 

Schedule 2.1 is hereby amended by deleting the tables evidencing Working

Capital Loan Commitments and Acquisition Loan Commitments and by adding the

table for Revolving Loan Commitments attached as Annex B to this

Amendment.

Section 2.              CONDITIONS TO EFFECTIVENESS

The amendments referred to in Section 1 are subject to

the satisfaction on or prior to March 19, 2002 of all of the following

conditions precedent and the conditions set forth in Section 5E hereof (the

date of satisfaction of such conditions being referred to herein as the “Second

Amendment  Effective Date”):

A.    On or before the Second Amendment Effective Date, Company shall

deliver to Lenders (or to Administrative 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:

1      Resolutions of its Board of Directors

approving and authorizing the execution, delivery, and performance of this

Amendment, certified as of the Second Amendment Effective Date by its corporate

secretary or an assistant secretary as being in full force and effect without

modification or amendment;

2      Signature and incumbency certificates of

its officers executing this Amendment; and

3      Executed originals of this Amendment,

executed by Company and by each Subsidiary Guarantor.

 

20

 

B.    Lenders shall have received originally executed copies of one or

more favorable written opinions of Davis Polk & Wardwell, Spolin &

Silverman and other counsel reasonably acceptable to the Agents, each counsel

for Company, in form and substance reasonably satisfactory to Administrative

Agent and its counsel, dated as of the Second Amendment Effective Date and

setting forth, collectively, substantially the matters in the opinions designated

in Annex C to this Amendment.

C.    Administrative Agent shall have received on behalf of each Lender

that executes and delivers this Second Amendment an amendment fee equal to .15%

of the aggregate of such Lender’s Tranche A Term Loan Exposure, Tranche B Term

Loan Exposure, Tranche D Term Loan Exposure and Revolving Loan Exposure (after

giving effect to this Second Amendment).

D.    All documents executed or submitted in connection with the

transactions contemplated hereby by or on behalf of Company or any of its

Subsidiaries shall be reasonably satisfactory in form and substance to Agents

and their counsel; Agents and their counsel shall have received all

information, approvals, opinions, documents or instruments that Agents or their

counsel shall have reasonably requested.

Section

3.              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 each of its Subsidiaries has all requisite

corporate power and authority to enter into this Amendment and 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 Agreements; Company Preferred Stock.  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 each of 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 Amendment

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 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

 

21

 

any

of Company’s Subsidiaries, except for 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. 

Each of this Amendment and the Amended Agreement 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 5 of the Credit Agreement are and will be

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.

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 4.              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

 

22

 

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 5.              MISCELLANEOUS

A.    Effect of Amendment. 

Reference to and effect on the Credit Agreement and the other Loan

Documents.

(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 Agreement.

(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 10.2 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.

 

23

 

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 hereof, the effectiveness of which is governed

by Section 2 hereof) shall become effective upon the execution of a counterpart

hereof by Company, Requisite Lenders, Syndication Agent and the Guarantors and

receipt by Company and Agents of written or telephonic notification of such

execution and authorization of delivery thereof.

 

24

 

IN WITNESS

WHEREOF, the

parties hereto have caused this Amendment Agreement 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:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  AEROSPACE

  DISPLAY SYSTEMS, INC., a Delaware corporation (for purposes of Section 4 only) as a

  Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  AUDIO

  INTERNATIONAL, INC., an Arkansas corporation (for purposes of Section 4 only) as a

  Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  AVTECH

  CORPORATION, a

  Washington corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  

 

S-1

 

	

  BOOTH

  ACQUISITION, LLC,

  a Delaware limited liability corporation (for purposes of Section 4 only) as

  a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  CORY

  COMPONENTS, INC.,

  a California corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  DETTMERS

  INDUSTRIES, INC.,

  a Delaware corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  ELSINORE

  AEROSPACE SERVICES, INC., a California corporation (for purposes of Section

  4 only) as a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  

 

S-2

 

	

  ELSINORE ENGINEERING, INC., a California corporation (for

  purposes of Section 4 only) as a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  HOLLINGSEAD

  INTERNATIONAL, INC., a California corporation (for purposes of Section 4 only) as a

  Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  TRI-STAR

  ELECTRONICS INTERNATIONAL, INC., a California corporation (for purposes of Section

  4 only) as a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  PATS,

  INC., a

  Maryland corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  

 

S-3

 

	

  PATS AIRCRAFT AND ENGINEERING

  CORPORATION, a

  Maryland corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  FLIGHT

  REFUELING, INC.,

  a Maryland corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  PATRICK

  AIRCRAFT TANK SYSTEMS, INC., a Maryland corporation (for purposes of Section 4

  only) as a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  PATS

  SUPPORT, INC.,

  a Maryland corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  

 

S-4

 

	

  PPI

  HOLDINGS, INC.,

  a Kansas corporation(for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  PRECISION PATTERN, INC., a Kansas corporation (for purposes of

  Section 4 only) as a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  CUSTOM WOODWORK & PLASTICS,

  INC., a

  Delaware corporation (for purposes of Section 4 only) as a Subsidiary

  Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  INTERNATIONAL CUSTOM INTERIORS,

  INC., a Florida

  corporation (for purposes of Section 4 only) as a Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  

 

S-5

 

	

  PCI

  ACQUISITION CO., INC., a Delaware corporation (for purposes of Section 4 only) as a

  Subsidiary Guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Senior Vice President and Chief Financial Officer

  
	

   

  
	

   

  
	

  DECRANE

  HOLDINGS CO., a

  Delaware corporation (for purposes of Section 4 only) as a guarantor

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Richard J. Kaplan

  
	

   

  	

  Title:

  	

  Assistant Secretary

  

 

S-6

 

	

  CREDIT

  SUISSE FIRST BOSTON (successor to DLJ Capital Funding, Inc.), as a Lender and as Syndication Agent

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

  Paul J. Corona

  
	

   

  	

  Title:

  	

  Director

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  

 

S-7

 

	

  BANK

  ONE, NA, as a

  Lender and as Administrative Agent

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

S-8

 

	

                                                    

  , as a

  Lender

  
	

   

  
	

  By:

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

S-9

 

ANNEX A

EXHIBIT

XXXIII

FORM OF

REVOLVING NOTE

DECRANE

AIRCRAFT HOLDINGS, INC.

PROMISSORY

NOTE DUE SEPTEMBER 30, 2004

$(1)                                                                                                                                                                                                  

                                                                                                                                                                                                         

FOR VALUE

RECEIVED, DECRANE

AIRCRAFT HOLDINGS, INC., a Delaware corporation (“Company”),

promises to pay to(2) (“Payee”) or its registered assigns, on

September 30, 2004, the lesser of (x)(3) ($[1]) and (y) the unpaid principal

amount of all advances made by Payee to Company as Revolving Loans under the

Credit Agreement referred to below.

 

(1)           Insert

amount of Lender’s Revolving Loan Commitment in numbers.

(2)           Insert

Lender’s name in capital letters.

(3)           Insert amount of Lender’s Revolving

Loan Commitment in words.

Company also promises to pay interest on the unpaid

principal amount hereof, from the date hereof until paid in full, at the rates

and at the times which shall be determined in accordance with the provisions of

that certain Third Amended and Restated Credit Agreement dated as of May 11,

2000, as amended by a First Amendment to Third Amended and Restated Credit

Agreement (the “First Amendment”)

dated as of June 30, 2000, an Increased Commitments Agreement to Third Amended

and Restated Credit Agreement (“Increased

Commitments Agreement”), dated as of April 27, 2001 and a Second

Amendment to Third Amended and Restated Credit Agreement (the “Second Amendment”), dated as of March     , 2002, by and among Company, the lenders

listed on the signature pages thereof, Syndication Agent and Administrative

Agent (said Credit Agreement, as it may be amended, supplemented or otherwise

modified from time to time, being the “Credit Agreement”, the terms defined

therein and not otherwise defined herein being used herein as therein defined).

This Note is one of Company’s “Revolving Notes” (as

defined in the Credit Agreement) and is issued pursuant to and entitled to the

benefits of the Credit Agreement, to which reference is hereby made for a more

complete statement of the terms and conditions under which the Revolving Loans

evidenced hereby were made and are to be repaid.

All payments of principal and interest in respect of

this Note shall be made in lawful money of the United States of America in same

day funds at the Funding and Payment Office or at such other place as shall be

designated in writing for such purpose in accordance with the terms of the

Credit Agreement.  Unless and until an

Assignment Agreement effecting the assignment or transfer of this Note shall

have been accepted by Administrative Agent as provided in subsection 10.1B(ii)

of the Credit Agreement, Company and Administrative Agent shall be entitled to

deem and treat Payee as the owner and holder of this Note and the Loans

evidenced hereby.  Payee hereby agrees,

by its acceptance hereof, that before disposing of this Note or any part hereof

it will make a notation hereon of all principal payments previously made

hereunder and of the date to which interest hereon has been paid; provided,

however, that the failure to make a notation of any payment made on this

Note shall

 

A-1

 

not limit or otherwise affect the obligations of

Company hereunder with respect to payments of principal of or interest on this

Note.

Whenever any payment on this Note shall be stated to

be due on a day which is not a Business Day, such payment shall be made on the

next succeeding Business Day and such extension of time shall be included in

the computation of the payment of interest on this Note.

This Note is subject to prepayment at the option of

Company as provided in subsection 2.4B(i) of the Credit Agreement.

THIS

NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE

GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE

INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL

OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS

PRINCIPLES.

Upon the occurrence of an Event of Default, the unpaid

balance of the principal amount of this Note, together with all accrued and

unpaid interest thereon, may become, or may be declared to be, due and payable

in the manner, upon the conditions and with the effect provided in the Credit

Agreement.

The terms of this Note are subject to amendment only

in the manner provided in the Credit Agreement.

This Note is subject to restrictions on transfer or

assignment as provided in subsections 10.1 and 10.16 of the Credit Agreement.

No reference herein to the Credit Agreement and no

provision of this Note or the Credit Agreement shall alter or impair the

obligations of Company to pay the principal of and interest on this Note at the

place, at the respective times, and in the currency herein prescribed.

Company promises to pay all costs and expenses,

including reasonable attorneys’ fees, all as provided in and subject to

subsection 10.2 of the Credit Agreement, incurred in the collection and

enforcement of this Note.  Company and

any endorsers of this Note hereby consent to renewals and extensions of time at

or after the maturity hereof, without notice, and hereby waive diligence,

presentment, protest, demand and notice of every kind and, to the full extent

permitted by law, the right to plead any statute of limitations as a defense to

any demand hereunder.

 

A-2

 

IN WITNESS WHEREOF, Company has caused this Note to be

duly executed and delivered by its officer thereunto duly authorized as of the date

and at the place first written above.

	

  DECRANE AIRCRAFT HOLDINGS, INC.

  
	

   

  
	

  By:

  	

   

  
	

  Name:

  
	

  Title:

  

 

A-3

 

TRANSACTIONS

ON

REVOLVING NOTE

 

 

	

  Date

  	

   

  	

  Type of

  Loan Made  This Date

  	

   

  	

  Amount of

  Loan Made This Date

  	

   

  	

  Amount of

  Principal Paid This Date

  	

   

  	

  Outstanding

  Principal Balance This Date

  	

   

  	

  Notation

  Made By

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

A-4

 

ANNEX B

SCHEDULE

2.1 — REVOLVING LOAN COMMITMENTS

 

B.  WORKING

CAPITAL LOANS AND ACQUISITION LOANS*

 

	

  Lender

  	

   

  	

  Revolving Loan Commitment

  	

   

  	

  Pro Rata Share

  	

   

  
	

  PB Capital Corp

  NY

  	

   

  	

  $

  	

  5,000,000

  	

   

  	

  10.00

  	

  %

  
	

  US Bank National

  Association

  	

   

  	

  10,882,352.93

  	

   

  	

  21.76

  	

   

  
	

  Union Bank of

  California

  	

   

  	

  8,823,529.42

  	

   

  	

  17.65

  	

   

  
	

  City National

  Bank

  	

   

  	

  5,000,000.00

  	

   

  	

  10.00

  	

   

  
	

  Bank One NA

  	

   

  	

  8,823,529.41

  	

   

  	

  17.65

  	

   

  
	

  Highland Legacy

  Ltd

  	

   

  	

  2,941,176.48

  	

   

  	

  5.88

  	

   

  
	

  Banque Paribas

  	

   

  	

  8,529,411.76

  	

   

  	

  17.06

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Total

  	

   

  	

  $

  	

  50,000,000.00

  	

   

  	

  100.00

  	

  %

  

 

*Measures total commitments (not necessarily actual

outstanding amounts) as of the Second Amendment Closing Date (March    , 2002).

 

B-1

 

ANNEX C

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 Credit 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 any existing obligation

of Parent or of Company under any other 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.

5.             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 Credit Agreement.

 

C-1

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