Document:

Exhibit
4.5.1.1

 

(Face of Note)

 

THIS SECURITY MAY BE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR THE
PURPOSES OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.  HOLDERS THAT WISH TO OBTAIN INFORMATION
ABOUT THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD
TO MATURITY OF THE INSTRUMENT FOR PURPOSES OF U.S. TAX LAW MAY DO SO BY
CONTACTING: DeCrane Aircraft Holdings, Inc., 2361 Rosecrans Avenue, Suite 180
El Segundo, California  90245,
Attention:  Chief Financial Officer.

 

CUSIP 243662 AE3

 

17% Senior Discount Notes due 2008

 

	
  No. 2

  	
   

  	
  $1,001,000

  

 

DECRANE AIRCRAFT
HOLDINGS, INC. (THE “ISSUER”)

 

promises
to pay to CEDE & CO., or registered assigns, the principal sum of One
Million and One Dollars ($1,001,000) on September 30, 2008.

 

	
   

  	
  Dated: September 9,
  2004

  
	
   

  	
   

  
	
   

  	
  DECRANE AIRCRAFT HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Chief Financial
  Officer

  

 

This
is one of the

Notes referred to in the

within-mentioned Indenture:

 

	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
  as
  Trustee

  
	
   

  
	
   

  
	
  By:

  	
  /S/  CAUNA M. SILVA

  	
   

  
	
   

  	
  Name:

  	
  Cauna M. Silva

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

(Back of Note)

 

17% Senior Discount Notes due 2008

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY
BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL
NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a)
OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS
GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF DECRANE AIRCRAFT HOLDINGS, INC.

 

THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED
STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET
FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL
INTEREST HEREIN, THE HOLDER: (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A
“QIB”), (B) IT HAS ACQUIRED THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE
WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501(A) (1), (2), (3) OR (7) OR REGULATION D UNDER
THE SECURITIES ACT (AN “IAI”), (2) AGREES THAT IT WILL NOT RESELL OR OTHERWISE
TRANSFER THIS NOTE EXCEPT (A) TO THE ISSUERS OR ANY OF ITS SUBSIDIARIES, (B) TO
A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144A, (C) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE
903 OR 904 OF THE SECURITIES ACT, (D) IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144 UNDER THE SECURITIES ACT, (E) TO AN IAI THAT, PRIOR TO SUCH
TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM
OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT
OF AN AGGREGATE PRINCIPAL AMOUNT AT MATURITY OF NOTES LESS THAN $250,000, AN
OPINION OF COUNSEL ACCEPTABLE TO THE ISSUERS THAT SUCH TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT, (F) IN ACCORDANCE WITH ANOTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL ACCEPTABLE TO THE ISSUERS) OR (G) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH THE APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND.  AS USED HEREIN, THE
TERMS “OFFSHORE TRANSACTION” AND “UNITED STATES” HAVE THE MEANINGS GIVEN TO
THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE
CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER
OF THIS NOTE IN VIOLATION OF THE FOREGOING.

 

2

 

Capitalized terms
used herein shall have the meanings assigned to them in the Indenture referred
to below unless otherwise indicated.

 

1.                                       INTEREST.  No interest shall accrue on this Note.  Instead, the Accreted Value of the Note will
accrete at a rate of 17% from the date of issuance, compounded semiannually on
each March 30 and September 30 (commencing September 30, 2004),
to an aggregate Accreted Value of $1,001,000, the full principal amount at
maturity, on September 30, 2008. 
The Issuer shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at a rate of 18% per annum.

 

2.                                       METHOD OF
PAYMENT.  The Notes will be payable as to principal, premium
and interest on overdue principal, if any, at the office of the Paying Agent
and Registrar.  Holders of Notes must
surrender their Notes to the Paying Agent to collect principal payments, and
the Issuer may pay principal, premium and interest on overdue principal, if
any, by check and may mail checks to a Holder’s registered address; provided
that all payments with respect to Global Notes and Definitive Notes, the
Holders of which have given wire transfer instructions to the Issuer, will be
required to be made by wire transfer of immediately available funds to the
accounts specified by the Holders thereof. 
Such payment shall be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts.

 

3.                                       PAYING AGENT
AND REGISTRAR. Initially, U.S. Bank National Association, the
Trustee under the Indenture, will act as Paying Agent and Registrar.  The Issuer may change any Paying Agent or
Registrar without notice to any Holder. 
The Issuer or any of its Subsidiaries may act in any such capacity.

 

4.                                       INDENTURE   The Issuer issued the Notes under an
Indenture dated as of July 23, 2004, among the Issuer, the Guarantors and
the Trustee, as supplemented by the First Supplemental Indenture dated as of
September 9, 2004 among the Issuer, the Guarantors and the Trustee (“Indenture”).  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S.
Code §§ 77aaa-77bbbb).  The
Notes are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. 
To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and
be controlling.  The Notes are
obligations of the Issuer initially limited to $1,001,000 in aggregate principal
amount at maturity.  Subject to limits
in the Indenture, the Issuer may issue Additional Notes constituting the same
series as the Initial Notes.

 

5.                                       OPTIONAL
REDEMPTION.

 

Prior to
September 30, 2004, the Notes may be redeemed at any time at the option of
the Issuer, in whole or in part, upon not less than 30 nor more than 60 days’
notice, in cash at a redemption price equal to 106% of Accreted Value.  Thereafter, the Notes will be subject to
redemption at any time at the option of the Issuer, in whole or in part, upon
not less than 30 nor more than 60 days’ notice, in cash at the redemption
prices (expressed as percentages of Accreted Value) set forth below, if
redeemed during the twelve month period beginning on September 30 of the
years indicated below, to the applicable redemption date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2004

  	
   

  	
  104.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  102.000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2006
  and thereafter

  	
   

  	
  100.000

  	
  %

  

 

3

 

6.                                       MANDATORY
REDEMPTION.

 

Except as set
forth in paragraph 7 below, the Issuer is not required to make mandatory
redemption of, or sinking fund payments with respect to, the Notes.

 

7.                                       REPURCHASE
AT OPTION OF HOLDER.

 

(a)                                  Upon
the occurrence of a Change of Control (such date being the ‘‘Change of Control Payment’’),
each Holder of Notes shall have the right to require the Issuer to purchase all
or any part (equal to $1,000 or an integral multiple thereof) of such Holder’s
Notes pursuant to an offer at an offer price in cash equal to 101% of the
aggregate Accreted Value thereof. 
Within 60 days following any Change of Control, subject to the
provisions of the Indenture, the Issuer shall mail a notice to each Holder of
Notes at such Holder’s registered address setting forth the procedures
governing the offer as required by the Indenture.

 

(b)                                 When
the aggregate amount of Excess Proceeds exceeds $10.0 million, the Issuer will
be required to make an offer to all Holders of Notes to purchase the maximum
principal amount of Notes that may be purchased out of Excess Proceeds, at an
offer price in cash in an amount equal to 100% of the Accreted Value thereof in
accordance with the procedures set forth in the Indenture.  Holders of Notes that are subject to an
offer to purchase will receive an Asset Sale Offer from the Issuer prior to any
related purchase date and may elect to have such Notes purchased by completing
the form entitled “Option of Holder to Elect Purchase” on the reverse side of
this Note.

 

8.                                       NOTICE OF
REDEMPTION.   Notice of
any redemption or offer to purchase will be mailed at least 30 days but not
more than 60 days before the redemption or purchase date to each Holder of
Notes to be redeemed or purchased at such Holder’s registered address.  Notes in denominations larger than $1,000
principal amount at maturity may be redeemed in part but only in whole
multiples of $1,000 principal amount at maturity, unless all of the Notes held
by a Holder are to be redeemed.

 

9.                                       DENOMINATIONS,
TRANSFER, EXCHANGE.  The Notes are in registered form without
coupons in denominations of $1,000 principal amount at maturity and integral
multiples thereof.  The transfer of Notes may be registered and Notes may
be exchanged as provided in the Indenture.  The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Issuer may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture.  The Issuer need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part.  Also, the Issuer need not exchange or register the transfer of any
Notes for a period of 15 days before a selection of Notes to be redeemed.

 

10.                                 PERSONS
DEEMED OWNERS.  The
registered Holder of a Note may be treated as its owner for all purposes.

 

11.                                 AMENDMENT,
SUPPLEMENT AND WAIVER. Subject to certain exceptions set forth
in the Indenture, the Indenture, the Note Guarantees or the Notes may be
amended or supplemented with the consent of the Holders of at least a majority
in principal amount at maturity of the Notes then outstanding (including,
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes), and any existing default or
compliance with any provision of the Indenture or

 

4

 

the Notes may be waived with the consent of the Holders of a majority
in principal amount at maturity of the then outstanding Notes (including,
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes). 
Notwithstanding the foregoing, without the consent of any Holder of
Notes, the Issuer, the Guarantors and the Trustee may amend or supplement the
Indenture, the Note Guarantees or the Notes to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place
of certificated Notes, to provide for the assumption of the Issuer’s
obligations to Holders of Notes in the case of a merger or consolidation or
sale of all or substantially all of the Issuer’s assets, to make any change
that would provide any additional rights or benefits to the Holders of Notes or
that does not materially adversely affect the legal rights under the Indenture
of any such Holder, or to comply with requirements of the Commission in order
to effect or maintain the qualification of the Indenture under the Trust
Indenture Act or to provide for additional Note Guarantees of the Notes.

 

12.                                 DEFAULTS AND
REMEDIES. 

 

(a) Events of
Default include: (a)
default in payment when due of the principal of or premium, if any, on the
Notes; (b) failure by the Issuer or any of its Restricted Subsidiaries for 30
days after receipt of notice from the Trustee or Holders of at least 25% in
principal amount at maturity of the Notes then outstanding to comply with the
provisions of Sections 4.07, 4.09, 4.10, 4.14 and Article 5 of the
Indenture; (c) failure by the Issuer for 60 days after notice from the Trustee
or the Holders of at least 25% in principal amount at maturity of the Notes
then outstanding to comply with any of their other agreements in the Indenture
or the Notes; (d) default under any mortgage, indenture or instrument under
which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Issuer or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Issuer or any of its
Restricted Subsidiaries), whether such Indebtedness or guarantee now exists, or
is created after the date of the Indenture, which default (i) is caused by a
failure to pay Indebtedness at its stated final maturity (after giving effect
to any applicable grace period provided in such Indebtedness) (a “Payment
Default”) or (ii) results in the acceleration of such Indebtedness prior to its
stated final maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of which has been
so accelerated, aggregates $10.0 million or more; (e) failure by the Issuer or
any of its Restricted Subsidiaries to pay final judgments aggregating in excess
of $10.0 million (net of any amounts with respect to which a reputable and
creditworthy insurance company has acknowledged liability in writing), which
judgments are not paid, discharged or stayed for a period of 60 days; (f)
except as permitted by the Indenture, any Note Guarantee shall be held in any
judicial proceeding to be unenforceable or invalid or shall cease for any
reason to be in full force and effect or any Guarantor, or any Person acting on
behalf of any Guarantor, shall deny or disaffirm its obligations under its Note
Guarantee; and (g) certain events of bankruptcy or insolvency with respect to
the Issuer or any of its Restricted Subsidiaries that is a Significant
Subsidiary.  If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare all the Notes to be
due and payable immediately. 
Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency with respect to the
Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary,
all outstanding Notes will become due and payable without further action or
notice.

 

(b) In the event
of a declaration of acceleration of the Notes because an Event of Default has occurred
and is continuing as a result of the acceleration of any Indebtedness described
in clause (d) of the preceding paragraph, the declaration of acceleration of
the Notes shall be automatically annulled if the holders of any Indebtedness
described in clause (d) have rescinded the declaration of acceleration in
respect of such Indebtedness within 30 days of the date of such declaration and
if (i) the annulment of the acceleration of the Notes would not conflict with
any judgment or decree of a court of competent

 

5

 

jurisdiction and (ii) all existing Events of Default, except
non-payment of principal or interest on the Notes that became due solely
because of the acceleration of the Notes, have been cured or waived.

 

13.                                 NOTE
GUARANTEES. The payment of principal of, premium, and interest and
Liquidated Damages, if any, on the Notes are unconditionally guaranteed,
jointly and severally, by the Guarantors.

 

14.                                 ADDITIONAL
RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES.  In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Restricted Global Notes shall
have the rights set forth in the Registration Rights Agreement dated as of
July 23, 2004, among the Issuer, the Guarantors and the parties named on
the signature pages thereof  (the “Registration
Rights Agreement”).

 

15.                                 TRUSTEE
DEALINGS WITH ISSUER.  The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Issuer or its Affiliates, and may
otherwise deal with Issuer or its Affiliates, as if it were not the Trustee.

 

16.                                 NO RECOURSE
AGAINST OTHERS.  A director, officer, employee, incorporator or
stockholder, of the Issuer, as such, shall not have any liability for any obligations
of the Issuer under the Notes or the Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver and release are part of the
consideration for the issuance of the Notes.

 

17.                                 AUTHENTICATION. 
This Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

18.                                 ABBREVIATIONS. 
Customary abbreviations may be used in the name of a Holder or an assignee,
such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

 

19.                                 CUSIP
NUMBERS.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused CUSIP numbers to be printed on the Notes and
the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders.  No representation is made as
to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon. 

 

The Issuer will
furnish to any Holder upon written request and without charge a copy of the
Indenture and/or the Registration Rights Agreement.  Requests may be made to:

 

DeCrane Aircraft
Holdings, Inc.

2361 Rosecrans Avenue, Suite 180

El Segundo, California  90245

Attention: Chief Financial Officer

 

6

 

ASSIGNMENT FORM

 

To assign this Note, fill
in the form below: (I) or (we) assign and transfer this Note to 

 

	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print or type
  assignee’s name, address and zip code)

  
	
   

  
	
  and
  irrevocably appoint

  
	
  to
  transfer this Note on the books of the Issuer.  The agent may substitute
  another to act for him.

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   (Sign exactly as your name

  
	
   

  	
   

  	
  appears on the face of
  this Note)

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  
								

 

7

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Issuer pursuant to Section 4.10
or 4.14 of the Indenture, check the box below:

 

o
Section 4.10                                                                 o
Section 4.14

 

If you want to
elect to have only part of the Note purchased by the Issuer pursuant to
Section 4.10 or Section 4.14 of the Indenture, state the principal
amount at maturity you elect to have purchased:
$           

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
  (Sign
  exactly as your name appears on the Note)

  
	
   

  	
   

  
	
   

  	
  Tax Identification No:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  
								

 

8

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

The following
exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or
Definitive Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of
  decrease

  in

  Principal Amount

  of this

  Global Note

  	
   

  	
  Amount of

  increase in

  Principal

  Amount of this

  Global Note

  	
   

  	
  Principal
  Amount

  of this Global Note

  following such

  decrease (or increase)

  	
   

  	
  Signature
  of

  authorized officer

  of Trustee or

  Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

9Exhibit
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

 

1

 

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

 

2

 

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

  	
   

  
				

 

21

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