Document:

Exhibit 4.6.2

 

CERTIFICATE OF AMENDMENT

TO

CERTIFICATE OF DESIGNATIONS, PREFERENCES

AND RIGHTS OF 16% SENIOR REDEEMABLE EXCHANGEABLE

PREFERRED STOCK DUE 2009

(NOW DESIGNATED AS SENIOR REDEEMABLE EXCHANGEABLE

PREFERRED STOCK DUE 2008)

 

of

 

DECRANE AIRCRAFT HOLDINGS, INC.

 

Pursuant to Section 242 of the General
Corporation Law

of the State of Delaware

 

DeCrane Aircraft Holdings, Inc., a Delaware corporation (the “Corporation”), hereby certifies as follows:

 

A.                                   The
undersigned, R. Jack DeCrane, is the duly elected Chief Executive Officer of
the Corporation.

 

B.                                     Pursuant to
Article Fourth of the Corporation’s Certificate of Incorporation, as
amended (the “Certificate of Incorporation”),
the Board of Directors of the Corporation (the “Board”) is authorized to fix the powers, designations,
preferences and relative, participating, optional and other special rights, and
the qualifications, limitations and restrictions (collectively, “Rights and Preferences”), of a series of
the Corporation’s 700,000 shares of preferred stock, $0.01 par value per share
(the “Preferred Stock”).

 

C.                                     Pursuant to a
Certificate of Designations, Preferences and Rights of 16% Senior Redeemable
Exchangeable Preferred Stock Due 2009, as amended by the filing of that certain
Certificate of Amendment to the Certificate of Designations, Preferences and
Rights of 16% Senior Redeemable Exchangeable Preferred Stock Due 2009 (the “Senior Preferred Stock Certificate of Designations”),
the Board fixed the Rights and Preferences of the Corporation’s 16% Senior
Redeemable Exchangeable Preferred Stock Due 2009.

 

D.                                    The Board, in
accordance with the provisions of Section 141(f) and Section 242 of
the General Corporation Law of the State of Delaware, has (a) declared
advisable that the Senior Preferred Stock Certificate of Designations be
amended and restated as set forth in this Certificate of Amendment to
Certificate of Designations (the “Certificate
of Amendment”), (b) recommended that the Certificate of Amendment be
approved and adopted by the Corporation’s stockholders, including the holders
of the

 

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Corporation’s
16% Senior Redeemable Exchangeable Preferred Stock Due 2009, and (c) submitted
the Certificate of Amendment to such stockholders for approval and adoption.

 

E.                                      The
Corporation’s stockholders have duly approved and adopted this Certificate of
Amendment in accordance with the provisions of Section 228 and
Section 242 of the General Corporation Law of the State of Delaware, to
amend and restate the provisions of the Senior Preferred Stock Certificate of
Designations as set forth herein.

 

F.                                      Pursuant
to the foregoing resolutions of the Board and the Corporation’s stockholders,
in accordance with Sections 103 and 242 of the General Corporation Law of the
State of Delaware, the Corporation hereby amends and restates the Senior
Preferred Stock Certificate of Designations in its entirety, with the effect
that, effective immediately upon the filing of this Certificate of Amendment
with the Secretary of State of Delaware, each outstanding share of 16% Senior
Redeemable Exchangeable Preferred Stock Due 2009 of the Corporation shall have
the powers, designations, preferences and relative, participating, optional and
other special rights, and the qualifications, limitations and restrictions, of
a share of Senior Redeemable Exchangeable Preferred Stock Due 2008 as set forth
below:

 

1.                                          Number and Designation. 
700,000 shares of the Preferred Stock of the Corporation shall be
designated as Senior Redeemable Exchangeable Preferred Stock Due 2008 (the “Senior Preferred Stock”).

 

2.                                          Rank.  The Senior
Preferred Stock shall, with respect to dividend rights, if any, 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 future 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, winding up or otherwise) 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 (other than convertible debt securities).  The Senior Preferred Stock shall be subject
to the creation of Junior Securities and Parity Securities.

 

3.                                          Dividends.  (a)
Dividends on each share of Senior Preferred Stock shall accrue from and after
July 23, 2004 (the “Amendment Date”),
but shall not be payable (except to the extent accrued dividends increase the
Liquidation Value (as defined below) payable hereunder), for each period beginning
on the day after each Quarterly Date (as defined below) (or, in the case of the
Quarterly Period (as defined below) ending on

 

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September 30, 2004, beginning on the
Amendment Date and ending on the next Quarterly Date at a rate equal to:

 

(A) except as
provided in clause (C) below, 0% per annum if the Consolidated EBITDA Ratio (as
defined below) as of the Quarterly Date immediately prior to the beginning of
such period is greater than or equal to 6.0;

 

(B) except as
provided in clause (C) below, 4% per annum (computed on the basis of a 360 day
year) of the Liquidation Value if the Consolidated EBITDA Ratio (as defined
below) as of the Quarterly Date immediately prior to the beginning of such
period is less than 6.0 but greater than or equal to 5.0;

 

(C) 16% per
annum (computed on the basis of a 360 day year) of the Liquidation Value (i) if
the Consolidated EBITDA Ratio as of such first Quarterly Date is less than 5.0
or (ii) if and for so long as a Triggering Event shall have occurred and be
continuing.

 

Such 0%, 4% or 16% rate, as applicable, is
referred to herein as the “Dividend Rate”.  If the Corporation is unable or shall fail to
discharge its obligation to redeem all outstanding shares of Senior Preferred
Stock pursuant to Section 5(b) or 5(c) hereof (including by operation of
the proviso to Section 5(b)) (each, a “Mandatory
Redemption Obligation”), 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, if any, shall accrue in the manner set forth above
quarterly from and after the Amendment Date 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 “Quarterly Date” and each such
quarterly period being a “Quarterly Period”).  Such dividends shall be cumulative from the
date of issue, whether or not in any Quarterly Period or Periods there shall be
funds of the Corporation legally available for the payment of such dividends.

 

As used herein, (i) “Consolidated EBITDA Ratio”
means, on any Quarterly Date, the ratio of (a) Consolidated Total Debt plus the
aggregate Liquidation Value of all outstanding shares of Senior Preferred Stock
as of such Quarterly Date to (b) Consolidated Cash Flow (as defined in the
Indenture referenced below) for the four consecutive Quarterly Periods ending
on such Quarterly Date; (ii) “Consolidated Total Debt”
means, as at any date of determination, the total amount of Indebtedness (as
defined in the Indenture) of the Corporation and its Restricted Subsidiaries
(as defined in the Indenture), determined on a consolidated basis in accordance
with generally accepted accounting principles; (iii) “Consolidated
Cash Flow” has the meaning set forth in the Indenture; (iv) “Indenture” means the Indenture dated as of July 23,
2004 among the Corporation, as issuer, each of the guarantors party thereto and
U.S. Bank National Association, as trustee, as in effect on the Amendment
Date); and (v) “Triggering Event” means any of the
following events:  (i) the Corporation is
unable or shall fail to discharge any Mandatory Redemption Obligation
(including by operation of the proviso

 

3

 

to Section 5(b)); (ii) the Corporation shall fail to comply with
its obligations under Sections 3(c), 3(d), 8(c), 9, 10, 11 or 12 hereof; (iii)
the consummation of any transaction (including, without limitation, any merger
or consolidation) the result of which is that either (A) any “person” or
“group” (as such terms are used in Section 13(d) of the Exchange Act),
other than the Principals (as defined in the Indenture) and their Related
Parties (as defined in the Indenture), becomes the “beneficial owner” (as such
term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly
or indirectly through one or more intermediaries, of 20% or more of the
outstanding common stock of the Corporation or (B) the beneficial ownership of
the Principals and their Related Parties immediately following the effective
date of such transaction of securities of the Corporation represents less than
80% of the percentage beneficial ownership of the Principals and their Related
Parties of the outstanding common stock of the Corporation on the Amendment
Date; or (iv) the consummation of an Initial Public Offering (as defined in the
Investors’ Agreement (as defined below) as such agreement is in effect on the
Amendment Date) by DeCrane Holdings.

 

(b)         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 accrue.

 

(c)          So long as any shares of
the Senior Preferred Stock are outstanding, no dividends shall be declared or
paid or set apart for payment on Parity Securities for any period.

 

(d)         (i)  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 (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).

 

(ii)                                  Section 3(d)(i)
will not prohibit:

 

(A)                the
repurchase, redemption or other acquisition or retirement for value of any
capital stock and all warrants or other rights to acquire capital stock
(collectively, “Equity Interests”) of the
Corporation or DeCrane Holdings Co. (“Holdings”) held
by any member of the Corporation’s or Holdings’ or any of the Corporation’s
subsidiaries’ management pursuant to any management equity subscription
agreement or stock option agreement and any dividend to Holdings to fund any
such

 

4

 

repurchase,
redemption, acquisition or retirement; provided that
the aggregate price paid for all such repurchased, redeemed, acquired or
retired Equity Interests shall not exceed:

 

(x)                                   $2.0 million in the
aggregate; plus

 

(y)                                 the aggregate cash
proceeds received by the Corporation since the Amendment Date from any issuance
of Junior Securities by the Corporation or capital stock by Holdings to members
of management of the Corporation and its subsidiaries;

 

(B)                  the
payment of dividends or the making of loans or advances by the Corporation to
Holdings not to exceed $3.0 million in any fiscal year for costs and expenses
incurred by Holdings in its capacity as a holding company or for services
rendered by Holdings on behalf of the Corporation;

 

(C)                  payments
or distributions to Holdings pursuant to any tax sharing agreement or
arrangement between the Corporation and Holdings, as the same may be amended
from time to time; provided that
in no event shall the amount permitted to be paid pursuant to all such
agreements and/or arrangements exceed the amount the Corporation would be
required to pay for income taxes were it to file a consolidated tax return for
itself and its consolidated subsidiaries as if it were a corporation that was a
parent of a consolidated group; and

 

(D)                 the
redemption, repurchase, retirement, defeasance or other acquisition of any
Equity Interests of the Corporation in exchange for, or out of the net cash proceeds
of the substantially concurrent sale (other than to a subsidiary of the
Corporation) of, other Equity Interests of the Corporation (other than any
Disqualified Stock).

 

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, each holder
of a share of Senior Preferred Stock shall be entitled to receive an amount
equal to the Liquidation Value of such share. 
“Liquidation Value” on any date means,
with respect to any share of Senior Preferred Stock, the sum of (1) $189.21 per
share and (2) all dividends, if any, accrued but unpaid on such share from and
after the Amendment Date to such date in accordance with Section 3.  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, 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

 

5

 

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 Section 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 Section 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.

 

5.                                         Redemption.

 

(a)                                  Redemption at the Option of the Corporation.  At any time, 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:

 

	
  Year
  Beginning July 1,

  	
   

  	
  Percentage of Liquidation Value on

  Date of Redemption

  	
   

  
	
  Prior to 2005

  	
   

  	
  116

  	
  %

  
	
  2005

  	
   

  	
  108

  	
  %

  
	
  2006

  	
   

  	
  106

  	
  %

  
	
  2007

  	
   

  	
  104

  	
  %

  
	
  2008

  	
   

  	
  102

  	
  %

  

 

(b)                                 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 Preferred Stock of any
holder of such shares that shall consent to such redemption, upon a date no
later that 30 days following the Change of Control, at a redemption price per
share equal to 101% of Liquidation Value; provided that
the Corporation shall not repurchase any Senior Preferred Stock pursuant to
this Section 5(b) to the extent that such repurchase is prohibited by
Section 4.07 of the Indenture or Section 4.07 of the Indenture dated
as of October 15, 1998 by and among the Corporation, the guarantors party
thereto and State Street Bank and Trust Company, as trustee, as in effect on
the date hereof, but notwithstanding such prohibition, any such failure to
repurchase any Senior Preferred Stock shall constitute a Triggering Event as
defined in Section 3 hereof for so long as such failure shall continue.

 

6

 

“Change of Control” means the occurrence
of any of the following:  (a) the
sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Corporation and its subsidiaries, taken
as a whole, to any “person” or “group” (as such terms are used in
Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than the Principals and their Related
Parties; (b) the adoption of a plan for the liquidation or dissolution of the
Corporation; (c) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
“person” or “group” (as such terms are used in Section 13(d) of the Exchange
Act), other than the Principals and their Related Parties, becomes the
“beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under
the Exchange Act), directly or indirectly through one or more intermediaries,
of 50% or more of the voting power of the outstanding voting stock of the
Corporation; or (d) the first day on which a majority of the members of the
board of directors of the Corporation are not Continuing Members.

 

“Continuing Members” means, as of any
date of determination, any member of the board of directors of the Corporation
who (a) was a member of such board of directors immediately after consummation
of the acquisition of the Corporation by the Principals and their Related
Parties in August 1998 or (b) was nominated for election or elected to
such board of directors with the approval of, or whose election to the board of
directors was ratified by, at least a majority of the Continuing Members who
were members of such board of directors at the time of such nomination or election
or any successor Continuing Members appointed by such Continuing Members (or
their successors).

 

(c)                                  Mandatory Redemption. 
To the extent the Corporation shall have funds legally available for
such payment, on December 31, 2008, 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 redemption price equal to the aggregate
Liquidation Value, in cash, to the date of redemption, without interest.

 

(d)                                 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 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.

 

(e)                                  Failure to Redeem.  If
the Corporation is unable or shall fail to discharge its Mandatory Redemption
Obligation, the Corporation shall use commercially reasonable efforts to obtain
financing for such purpose and 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

 

7

 

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) notwithstanding
Section 3(d), declare or make any Junior Securities Distribution (except
as permitted by Section 3(d)(ii)(C)), or, directly or indirectly,
discharge any mandatory or optional redemption, sinking fund or other similar
obligation in respect of the Junior Securities.

 

(f)                                    All
redemptions of Senior Preferred Stock shall be made on a pro rata basis.

 

6.                                         Procedure for Redemption. 
(a) In the event the Corporation shall redeem shares of Senior Preferred
Stock pursuant to Section 5(a) or 5(c), notice of such redemption shall be
given by first class mail, postage prepaid, mailed not less than 10 days nor
more 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) 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, if any, 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) or 5(c) hereof, notice
having been mailed as provided in Section 6(a) 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, if any, 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(b) hereof, notice of such
redemption shall be given by first class mail, postage prepaid, mailed not more
than 20 days following the occurrence of the Change of Control and not less
than 10 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

 

8

 

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, if any, on the shares
the holder elects to cause the Corporation to redeem will cease to accrue on
such redemption date.

 

Upon receipt of such notice, the holder shall, within 5 business 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(b) hereof, notice having
been mailed as provided in Section 6(c) 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, if any, 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 Section 7, the Corporation may, at its option,
at any time and from time to time on any Quarterly 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) no event of default under the indenture (as defined in such indenture)
governing the Exchange Debentures shall have occurred and be continuing; (ii)
no shares of Senior Preferred Stock are held on such date by the DLJIP Entities
(as defined in the Investors’ Agreement), or any of their Affiliates, or any of
their Permitted Transferees and (iii) such exchange is permitted by the terms
of all debt instruments to which the Corporation is subject.  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).

 

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 determined with respect to the aggregate principal amount of Exchange
Debentures to

 

9

 

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 Quarterly Date, $1.00 (or
fraction thereof) of principal amount of Exchange Debenture for each $1.00 of
Liquidation Value per share of Senior Preferred Stock held by a holder on the
applicable exchange date.

 

“Affiliates” shall have the meaning
ascribed to such term in the Investors’ Agreement.

 

“Exchange Debentures” means Junior
Subordinated Exchange Debentures due 2008 of the Corporation, accruing interest
at the rates established for dividends as provided herein but providing that
such interest shall not be payable in cash until the maturity date on
December 31, 2008, to be issued pursuant to an indenture between the
Corporation and a trustee, containing customary terms and conditions approved
by the Board of Directors (which terms shall be substantially the same as in
the Indenture but shall provide that the Corporation shall not repurchase any
Exchange Debentures pursuant to the asset sale or change of control provisions
thereof in violation of Section 4.07 of the Indenture and which shall be
subordinated to all existing indebtedness except indebtedness expressly made pari passu to the Exchange Debentures).

 

“Investors’ Agreement” means the Amended
and Restated Investors’ Agreement dated as of October 6, 2000 among
DeCrane Holdings Co., DeCrane Aircraft Holdings, Inc., 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., UK Investment
Plan 1997 Partners, DLJ EAB Partners, L.P., DLJ First ESC L.P., DLJ ESC II
L.P., DLJ Investment Partners, L.P., DLJ Investment Partners II, L.P., DLJ
Investment Funding II, Inc. and certain other stockholders named therein, as
the same may be amended from time to time.

 

“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

 

10

 

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; (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, if any, on the shares to be exchanged will cease to accrue on such
exchange date.

 

(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 Quarterly 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 Section 7(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 Senior 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

 

11

 

(v) the Corporation has sufficient
legally available funds for such exchange such that such exchange is permitted
under applicable law.

 

(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, if any, 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 Quarterly 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 Quarterly 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.

 

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 Section 8 or as
otherwise provided by law.

 

(b)                                 If
and whenever (i) 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

 

12

 

Control pursuant to
Section 5(b) hereof), (ii) the Corporation shall have failed to provide
the notice required by Section 6(c) hereof within the time period
specified in such section or (iii) the Corporation shall have failed to
comply with Sections 3(c), 3(d), 8(c), 9, 10, 11 or 12 hereof, 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 ranking prior to, or on parity with the Senior Preferred Stock and upon
which like rights have been conferred and are exercisable (resulting from
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) the Corporation shall have fulfilled its Mandatory
Redemption Obligation, (ii) the Corporation shall have fulfilled its obligation
to provide notice as specified in Section 6(c) hereof, or (iii) the
Corporation shall have complied with Sections 3(c), 3(d), 8(c), 9, 10, 11 or 12
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) failure to fulfill any Mandatory Redemption
Obligation, (ii) failure to fulfill the obligation to provide the notice
required by Section 6(c) hereof within the time period specified in such
section or (iii) failure to comply with Section 3(c), 3(d), 8(c), 9,
10, 11 or 12) 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 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.

 

13

 

(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 action that
decreases the dividend payable on, redemption prices for or the Liquidation
Value of or changes the mandatory redemption date of the Senior Preferred Stock
provided in Section 5(b) or 5(c) hereof 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
holders 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
option or repurchase of all outstanding shares of Senior Preferred Stock in
accordance with the terms hereof.

 

(d)                                 In
exercising the voting rights set forth in this Section 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.                                         Incurrence of Indebtedness. 
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, and will not
permit any of its Restricted Subsidiaries (as defined in the Indenture) to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect
to (collectively, “incur”) any
Indebtedness (including Acquired Indebtedness (as defined in the Indenture)),
(b) the Corporation will not, and will not permit any of its Restricted
Subsidiaries to, issue any shares of Disqualified Stock (as defined in the
Indenture) and (c) the Corporation will not permit any of its Restricted
Subsidiaries to issue any shares of preferred stock, in each case other than
Permitted Indebtedness (as defined in the Indenture).

 

14

 

For purposes of determining compliance with this Section 9, in the
event that an item of Indebtedness meets the criteria of more than one of the
categories of Permitted Indebtedness described in clauses (i) through (xiii) of
the definition thereof in the Indenture, the Corporation shall, in its sole
discretion, classify such item of Indebtedness in any manner that complies with
such definition and such item of Indebtedness will be treated as having been
incurred pursuant to only one of such clauses. 
In addition, the Corporation may, at any time, change the classification
of an item of Indebtedness (or any portion thereof) to any other clause; provided that the Corporation would be permitted to incur
such item of Indebtedness (or such portion thereof) pursuant to such other
clause at such time of reclassification. 
Accrual of interest, accretion or amortization of original issue
discount will not be deemed to be an incurrence of Indebtedness for purposes of
this Section 9.

 

10.                                   Asset Sales.

 

(a)                                  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, and will not permit any of its
Restricted Subsidiaries to, consummate any Asset Sale unless:

 

(i)                                     the
Corporation or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market
value, evidenced by a resolution of the board of directors set forth in an
officers’ certificate delivered to holders of the Senior Preferred Stock, of
the assets or Equity Interests issued or sold or otherwise disposed of, and

 

(ii)                                  at
least 75% of the consideration therefor received by the Corporation or such
Restricted Subsidiary is in the form of cash or Cash Equivalents (as defined in
the Indenture) or property or assets that are used or useful in a Permitted
Business, or the capital stock of any person engaged in a Permitted Business
if, as a result of the acquisition by the Corporation or any Restricted
Subsidiary thereof, such Person becomes a Restricted Subsidiary.  The foregoing 75% requirement will not apply
to any Asset Sale in which the cash or Cash Equivalents portion of the
consideration received therefrom, determined in accordance with the next
succeeding sentence, is equal to or greater than what the after-tax proceeds
would have been had such Asset Sale complied with that 75% rule.  The following types of assets will be deemed
cash in applying that 75% test:

 

(1)                                  any liabilities as
shown on the Corporation’s most recent consolidated balance sheet that are
assumed by the transferee of any such assets pursuant to a customary novation
agreement that releases the Corporation or such Restricted Subsidiary of the
Corporation from further liability;

 

15

 

(2)                                  any securities, notes
or other obligations received by the Corporation or any such Restricted
Subsidiary from such transferee that are contemporaneously converted by the
Corporation or such Restricted Subsidiary into cash or cash equivalents, to the
extent of the cash or cash equivalents received; and

 

(3)                                  any Designated
Noncash Consideration received by the Corporation or any of its subsidiaries in
such Asset Sale having an aggregate fair market value, taken together with all
other Designated Noncash Consideration received pursuant to this clause (3)
that is at that time outstanding, not to exceed 15% of Total Assets at the time
of the receipt of such Designated Noncash Consideration, with the fair market
value of each item of Designated Noncash Consideration being measured at the
time received and without giving effect to subsequent changes in value.

 

(b)         Definitions.  For purposes hereunder:

 

“Asset Sale”
means:

 

(i)                          the sale, lease, conveyance,
disposition or other transfer (a “disposition”)
of any properties, assets or rights; provided that
the sale, lease, conveyance or other disposition of all or substantially all of
the assets of the Corporation and its subsidiaries taken as a whole will be
governed by Sections 5(b) and 11 and not by this Section 10;

 

(ii)                       the issuance, sale or transfer
by the Corporation or any of its subsidiaries of Equity Interests of any of the
Corporation’s Restricted Subsidiaries;

 

in either case, whether in a single transaction or a series of related
transactions that either have a fair market value in excess of $5.0 million or
are for net proceeds in excess of $5.0 million.

 

However, the following items shall not be deemed to be Asset Sales:

 

(i)                          dispositions in the ordinary
course of business;

 

(ii)                       a disposition of assets by the
Corporation to a subsidiary of the Corporation or by a subsidiary to the
Corporation or to another subsidiary of the Corporation;

 

(iii)                    a disposition of Equity Interests
by a subsidiary of the Corporation or to another subsidiary of the Corporation;

 

16

 

(iv)                   the sale and leaseback of any assets
within 90 days of the acquisition thereof;

 

(v)                      foreclosures on assets;

 

(vi)                   any exchange of like property
pursuant to Section 1031 of the Internal Revenue Code of 1986, for use in
a Permitted Business;

 

(vii)                a Restricted Payment or Permitted
Investment (as defined in the Indenture) permitted by the Indenture; and

 

(viii)                                                sales
of accounts receivable, or participations therein, in connection with any
receivables financing facility, pursuant to which the Corporation or any of its
subsidiaries sells its accounts receivable to another subsidiary of the
Corporation (a “Receivables Facility”).

 

“Designated Noncash Consideration” means
the fair market value of non-cash consideration received by the Corporation or
one of its subsidiaries in connection with an Asset Sale that is so designated
as Designated Noncash Consideration pursuant to an officers’ certificate
delivered to the holders of Senior Preferred Stock, setting forth the basis of
such valuation, executed by the principal executive officer and the principal
financial officer of the Corporation, less the amount of cash or cash
equivalents received in connection with a sale of such Designated Noncash
Consideration.

 

“Permitted Business” means the avionics
manufacturing industry and any business in which the Corporation and it
subsidiaries are engaged on the date hereof or any business reasonably related,
incidental or ancillary thereto.

 

“Total Assets” means the total
consolidated assets of the Corporation and its subsidiaries, as shown on the
most recent balance sheet, excluding the footnotes of the Corporation, prepared
in accordance with generally accepted accounting principles, as in effect on
December 22, 2003.

 

11.                                   Merger, Consolidation or Sale of Assets.  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
may not consolidate or merge with or into (whether or not the Corporation is
the surviving corporation), or sell, assign, lease, transfer, convey or
otherwise dispose of all or substantially all of its properties or assets in
one or more related transactions, to another person unless:

 

(a)                                  the
Corporation is the surviving corporation, or the other person formed by or
surviving any such consolidation or merger (if other than the Corporation) or
to which such sale, assignment, transfer, conveyance or other disposition shall
have been made is a corporation organized or existing under the laws of the
United States, any state thereof or the District of Columbia; and

 

17

 

(b)                                 the
person formed by or surviving any such consolidation or merger (if other than
the Corporation) or the person to which such sale, assignment, transfer,
conveyance or other disposition shall have been made assumes all the
obligations of the Corporation under the Senior Preferred Stock and the
Registration Rights Agreement dated June 30, 2000 among the Corporation
and the holders of Senior Preferred Stock party thereto, as the same may be
amended from time to time; and

 

(c)                                  after
giving effect to such transaction, the Corporation shall be in compliance with
Section 5.01 of the Indenture.

 

12.                                   Transactions With Affiliates.  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, and will not permit any of its Restricted Subsidiaries to, make any
payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate of the
Corporation (each, an “Affiliate Transaction”),
unless:

 

(a)                                  such
Affiliate Transaction is on terms that are no less favorable to the Corporation
or such Restricted Subsidiary than those that would have been obtained in a
comparable transaction by the Corporation or such Restricted Subsidiary of the
Corporation with an unrelated person; and

 

(b)                                 the
Corporation delivers to the holders of Senior Preferred Stock, with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $7.5 million, either:

 

(i)                                     a
resolution of the board of directors set forth in an officers’ certificate
certifying that such Affiliate Transaction complies with clause (a) above and
that such Affiliate Transaction has been approved by a majority of the
disinterested members of the board of directors; or

 

(ii)                                  an
opinion as to the fairness to the holders of such Affiliate Transaction from a
financial point of view issued by an accounting, appraisal or investment
banking firm of national standing.

 

Notwithstanding the foregoing, the following items shall not be deemed
to be an Affiliate Transaction:

 

(a)                                  customary
directors’ fees, indemnification or similar arrangements or any employment
agreement or other compensation plan or arrangement entered into by the
Corporation or any of its subsidiaries in the ordinary course of business,
including ordinary course loans to employees not to exceed (i) $5.0 million
outstanding in the

 

18

 

aggregate at any time, and (ii) $2.0 million to any one employee and
consistent with the past practice of the Corporation or such Restricted
Subsidiary of the Corporation;

 

(b)                                 transactions
between or among the Corporation and/or its subsidiaries;

 

(c)                                  payments
of customary fees by the Corporation or any of its subsidiaries to DLJ Merchant
Banking II, Inc. and its Affiliates made for any financial advisory, financing,
underwriting or placement services or in respect of other investment banking
activities, including, without limitation, in connection with acquisitions or
divestitures which are approved by a majority of the board of directors in good
faith;

 

(d)           any agreement as in
effect on the date hereof or any amendment thereto which such amendment is not
disadvantageous to the holders of the Senior Preferred Stock in any material
respect, or any transaction contemplated thereby;

 

(e)           Restricted Payments
and Permitted Investments permitted under the Indenture;

 

(f)            payments and
transactions in connection with the Global Technology Investment (as defined in
the Indenture), and the payment of fees and expenses with respect thereto; and

 

(g)           sales of accounts
receivable, or participation therein, in connection with any Receivables
Facility.

 

13.                                   Reports and Notices.

 

(a)           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 financial information as would be required in
such reports.

 

(b)           The Corporation
shall provide written notice, by first class mail, postage prepaid, to each
holder of record of shares of Senior Preferred Stock at such holder’s address
as the same appears on the stock register of the Corporation, promptly
following its receipt of any written consent or vote of a majority of the
outstanding shares of Senior Preferred Stock obtained pursuant to
Section 8(c), 9, 10(a), 11 or 12.

 

14.                                   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 of the
Corporation.

 

19

 

(c)           The headings of the
Sections, subsections, 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;
provided, however, that this provision will not apply with respect to
indebtedness not outstanding on the Amendment Date.

 

20

 

IN WITNESS WHEREOF, DeCrane Aircraft Holdings, Inc. has caused this
Certificate of Amendment to Certificate of Designations to be signed and
attested by the undersigned this 23 day of July, 2004.

 

	
   

  	
  DECRANE AIRCRAFT HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name:R. Jack DeCrane

  
	
   

  	
   

  	
  Title:Chief Executive Officer

  

 

 

	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /S/ JAMES E. MANN

  	
   

  	
   

  
	
   

  	
  Name:James Mann

  	
   

  
	
   

  	
  Title:Vice President

  	
   

  
				

 

21Exhibit 4.7.2

 

AMENDMENT NO. 2 TO SENIOR PREFERRED STOCK

REGISTRATION RIGHTS AGREEMENT

 

This Amendment (the “Amendment”)
dated as of July 23, 2004 to the Senior Preferred Stock Registration
Rights Agreement dated as of June 30, 2000, and as subsequently amended by
Amendment No. 1 dated as of October 6, 2000, among DeCrane Aircraft
Holdings, Inc. (the “Company”) and
the holders of the Senior Preferred Stock named therein.

 

W I T N E S S E T H:

 

WHEREAS, the parties hereto are parties to the Senior Preferred Stock
Registration Rights Agreement dated as of June 30, 2000, as amended (the “Registration Rights Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Registration Rights
Agreement as provided herein.

 

NOW, THEREFORE, intending to be legally bound, the parties hereto agree
as follows:

 

SECTION 1.         Definitions;
References.  Unless
otherwise specifically defined herein, each term used herein which is defined
in the Registration Rights Agreement shall have the meaning assigned to such
term in the Registration Rights Agreement. 
Each reference to “hereof”, “hereunder”, “herein”, and hereby and each
other similar reference and each reference to “this Agreement” and each other
similar reference contained in the Registration Rights Agreement shall from and
after the date hereof refer to the Registration Rights Agreement as amended
hereby.

 

SECTION 2.         Amendment
to Definition of Senior Preferred Stock.  The definition of Senior Preferred Stock in
the Registration Rights Agreement is amended to be the Senior Redeemable
Exchangeable Preferred Stock of the Company, as amended from time to time.

 

SECTION 3.         Governing
Law.  This Amendment shall
be governed by, and construed in accordance with, the laws of the State of New
York, without regard to the conflicts of laws rules of such state.

 

SECTION 4.         Counterparts;
Effectiveness.  This
Amendment may be executed in any number of counterparts, each of which shall be
deemed to be an original, with the same effect as if the signatures thereto and
hereto were upon the same instrument. 
This Amendment shall become effective when this Amendment or a
counterpart hereto has been executed by the Company (with the approval of

 

 

the board of directors of the Company) and Stockholders holding at
least 75% of the outstanding Registrable Securities.

 

SECTION 5.         Effect
of Amendment.  Except as
expressly set forth herein, the amendments contained herein shall not
constitute an amendment of any term or condition of the Registration Rights
Agreement, and all such terms and conditions shall remain in full force and
effect and are hereby ratified and confirmed in all respects.

 

[Remainder of page
intentionally left blank; next page is signature page]

 

2

 

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

 

 

	
   

  	
  DECRANE AIRCRAFT HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name:  R. Jack DeCrane

  
	
   

  	
   

  	
  Title:  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  DLJ
  INVESTMENT PARTNERS II, INC. on behalf of:

  DLJ INVESTMENT PARTNERS II, L.P.

  DLJ INVESTMENT PARTNERS, L.P.

  DLJIP II HOLDINGS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ JOHN M. MORIARTY, JR.

  	
   

  
	
   

  	
   

  	
  Name:  John M. Moriarty, Jr.

  
	
   

  	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  PUTNAM
  INVESTMENT MANAGEMENT, LLC on behalf 

  of:

  
	
   

  	
  PUTNAM
  VARIABLE TRUST– PUTNAM VT HIGH

  YIELD FUND

  
	
   

  	
  PUTNAM HIGH YIELD TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ MICHAEL E. DEFAO

  	
   

  
	
   

  	
   

  	
  Name:  Michael E. DeFao

  
	
   

  	
   

  	
  Title:  Senior Vice President

  
	
   

  	
   

  
	
   

  	
  NEON CAPITAL LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ PAUL COPE

  	
   

  
	
   

  	
   

  	
  Name:  Paul Cope

  
	
   

  	
   

  	
  Title:  Director

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