Document:

Exhibit 10.2.2

 

AMENDMENT
NO. 2 TO AMENDED AND RESTATED INVESTORS’ AGREEMENT

 

This Amendment (the “Amendment”) dated as of July 23, 2004 to
the Amended and Restated Investors’ Agreement dated as of October 6, 2000, and
as subsequently amended by Amendment No. 1 dated as of December 31, 2001 among
DeCrane Holdings Co. (the “Company”) and DeCrane Aircraft Holdings,
Inc. (“Opco”
and, together with the Company, the “Companies”), the DLJ Entities (as defined
therein), the DLJIP Entities (as defined therein), the Putnam Entities (as
defined therein) and certain other Stockholders named therein.

 

W  I 
T  N  E  S  S 
E  T  H:

 

WHEREAS, the Companies, the DLJ Entities, the DLJIP Entities and the
Putnam Entities are parties to the Amended and Restated Investors’ Agreement
dated as of October 6, 2000, as amended (the “Investors’ Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Investors’ 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 Investors’ Agreement
shall have the meaning assigned to such term in the Investors 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 Investors’
Agreement shall from and after the date hereof refer to the Investors’
Agreement as amended hereby.

 

Section 2.         Amendment to Definition of Senior Preferred Stock.  The definition of Senior Preferred Stock in
the Investors’ Agreement is amended to be the Senior Redeemable Exchangeable
Preferred Stock of Opco, as amended from time to time.

 

Section 4.         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 5.         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 Shares,
calculated on a Fully Diluted basis.

 

Section 6.         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 Investors’ 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 HOLDINGS
  CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK
  DECRANE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  R. Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DECRANE AIRCRAFT
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK
  DECRANE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  R. Jack DeCrane

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ MERCHANT
  BANKING PARTNERS II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ MERCHANT BANKING II, INC., Managing
  General

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ MERCHANT
  BANKING PARTNERS II-A, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ MERCHANT BANKING PARTNERS II, INC.,

  Managing General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  DLJ OFFSHORE
  PARTNERS II, C.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ MERCHANT BANKING PARTNERS II, INC.,

  Advisory General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ DIVERSIFIED
  PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY DLJ DIVERSIFIED PARTNERS, INC., Managing
  General

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ DIVERSIFIED
  PARTNERS-A, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ DIVERSIFIED PARTNERS, INC., Managing
  General

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJMB FUNDING II,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  DLJ EAB PARTNERS,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ LBO PLANS MANAGEMENT CORPORATION,

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ MILLENNIUM
  PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ MERCHANT BANKING II, INC., Managing
  General 

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UK INVESTMENT PLAN
  1997 PARTNERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY UK INVESTMENT PLAN 1997, INC., General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ FIRST ESC L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY DLJ LBO PLANS MANAGEMENT CORPORATION,

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  DLJ ESC II L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY DLJ LBO PLANS MANAGEMENT CORPORATION,

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJ MILLENNIUM
  PARTNERS-A, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ MERCHANT BANKING II, INC., Managing
  General

  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ MICHAEL
  S. ISIKOW

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael S. Isikow

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  DLJ INVESTMENT
  PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ INVESTMENT PARTNERS II, INC.,
  Managing

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN M.
  MORIARTY, JR.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John M. Moriarty, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJ INVESTMENT
  PARTNERS II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ INVESTMENT PARTNERS II, INC.,
  Managing

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN M.
  MORIARTY, JR.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John M. Moriarty, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DLJIP HOLDINGS,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BY DLJ INVESTMENT PARTNERS II, INC.,
  Managing

  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
  DirectorExhibit 10.10.8

 

DECRANE AIRCRAFT HOLDINGS, INC.

 

FIFTH
AMENDMENT

TO THIRD
AMENDED AND RESTATED CREDIT AGREEMENT

 

This FIFTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”) is dated as of June 9, 2004 and
entered into by and among DeCrane Aircraft Holdings, Inc., a Delaware
corporation (“Company”), the financial institutions listed on the signature
pages hereof (“Lenders”), Credit Suisse First Boston, acting through its
Cayman Islands Branch (successor to DLJ Capital Funding, Inc.), as syndication
agent for Lenders (in such capacity, “Syndication Agent”) and as administrative
agent for Lenders (in such capacity, “Administrative Agent”), and is made with
reference to that certain Third Amended and Restated Credit Agreement, dated as
of May 11, 2000, as amended by a First Amendment to Third Amended and Restated
Credit Agreement, dated as of June 30, 2000, as further amended by an
Increased Commitments Agreement to Third Amended and Restated Credit Agreement,
dated as of April 27, 2001, as further amended by a Second Amendment to Third
Amended and Restated Credit Agreement dated as of March 19, 2002, as further
amended by a Third Amendment to Third Amended and Restated Credit Agreement
dated as of March 31, 2003 and as further amended by a Fourth Amendment to
Third Amended and Restated Credit Agreement dated as of December 10, 2003 (the
“Credit
Agreement”), by and among Company, the lenders listed on the
signature pages thereof, Syndication Agent and Administrative Agent.  Capitalized terms used herein without
definition shall have the same meanings herein as set forth in the Credit
Agreement.

 

RECITALS

 

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

 

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

 

Section 1.      AMENDMENTS
TO THE CREDIT AGREEMENT

 

1.1  Amendments to Section 1:
Definitions

 

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

 

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

 

 

 

“Second Lien Credit Agreement” means the
Credit Agreement, dated as of December 22, 2003, by and among Company, the
lenders named therein and Credit Suisse First Boston, acting through its Cayman
Islands Branch, as Syndication Agent and as Administrative Agent, as amended
from time to time, which agreement evidences $80,000,000 of Permitted
Indebtedness.

 

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

 

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

 

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

 

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

 

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

 

1.2  Amendments to Section
7:  Company’s Negative Covenants

 

A.            Subsection 7.1(vi) of the
Credit Agreement is hereby amended to read as follows:

 

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

 

B.            Subsection 7.1 of the Credit
Agreement is further amended by deleting “and” at the end of clause (ix),
adding a semicolon at the end of clause (x) and adding the following as clause
(xi):

 

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

 

2

 

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

 

C.            Subsection 7.2B of the
Credit Agreement is further amended to read as follows:

 

“B.          No Further Negative Pledges.  Except (x) with respect to specific property encumbered to secure
payment of particular Indebtedness or to be sold pursuant to an executed
agreement with respect to an Asset Sale, (y) customary limitations in respect
of the Company and its Subsidiaries contained in any agreement with respect to
Indebtedness incurred in reliance on subsections 7.1(ii), (iv), (vi), (vii),
(viii), (x) or (xi), and (z) restrictions or limitations contained in any partnership
agreement or joint venture agreement to which Company or any of its
Subsidiaries is a party on the ability to create or assume Liens on any assets
of the relevant partnership or joint venture, neither Company nor any of its
Subsidiaries shall enter into any agreement (other than an agreement
prohibiting only the creation of Liens securing Subordinated Indebtedness)
prohibiting the creation or assumption of any Lien upon any of its properties
or assets, whether now owned or hereafter acquired.”

 

D.            Subsection 7.15 of the
Credit Agreement is further amended by adding the following as subsection
7.15E:

 

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

 

1.3  Amendment to Section 9: The
Agents.  Subsection
9.4 of the Credit Agreement is further amended by adding the following as
subsection 9.4C:

 

3

 

“C.          Foreign Collateral.

 

(i)            General.  Without derogating from any
other authority granted to Administrative Agent herein or in the Collateral
Documents or any other document relating thereto, each Lender hereby
specifically (x) authorizes Administrative Agent to enter into pledge
agreements pursuant to this subsection 9.4 with respect to the Capital Stock of
all existing and future first-tier Foreign Subsidiaries, which pledge
agreements may be governed by the laws of each of the jurisdictions of
formation of such Foreign Subsidiaries, including but not limited to the laws
of the province of Quebec, Canada, respectively, as agent on behalf of each of Lenders
and Interest Rate Exchangers (as defined in the Security Agreement) with the
effect that Lenders and Interest Rate Exchangers each become a secured party
thereunder and (y) appoints Administrative Agent as its attorney-in-fact
granting it the powers to execute each such pledge agreement and any
registrations of the security interest thereby created, in each case in its
name and on its behalf, with the effect that each Lender and Interest Rate
Exchanger becomes a secured party thereunder. 
With respect to each such pledge agreement, Administrative Agent has the
power to sub-delegate to third parties its powers as attorney-in-fact of each
Lender.

 

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

 

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

 

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

 

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

 

Section 2.      CONSENT

 

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

 

4

 

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

 

Without limiting the generality of the provisions of
subsection 10.6 of the Credit Agreement, the consent set forth herein shall be
limited precisely as written and is provided solely for the purpose of
permitting Company to issue the Senior Notes in exchange for a like principal
amount of the Senior Subordinated Notes and additional Senior Notes evidencing
interest that is paid-in-kind without violating the provisions of
subsections 7.1, 7.5 and 7.15 of the Credit Agreement, and this consent
does not constitute, nor should it be construed as, a waiver of compliance by
Company with respect to (i) subsections 7.1, 7.5 and 7.15 of the Credit
Agreement in any other instance or (ii) any other term, provision or
condition of the Credit Agreement or any other instrument or agreement referred
to therein (whether in connection with the Senior Note Exchange or otherwise).

 

Section 3.      CONDITIONS TO EFFECTIVENESS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

Section 4.      COMPANY’S REPRESENTATIONS AND WARRANTIES

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

F.             Incorporation of
Representations and Warranties From Credit Agreement.  The representations and warranties contained
in Section 5 of the Credit Agreement are and will be true, correct and
complete in all material respects on and as of the Fifth Amendment Effective
Date to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

 

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

 

Section 5.      ACKNOWLEDGEMENT AND CONSENT

 

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

 

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

 

7

 

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

 

Section 6.      MISCELLANEOUS

 

A.            Effect of Amendment.

 

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

 

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

 

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

 

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

 

B.            Fees and Expenses.  Company acknowledges that all costs, fees
and expenses as described in subsection 10.2 of the Credit Agreement incurred
by Agents and their counsel with respect to this Amendment and the documents
and transactions contemplated hereby shall be for the account of Company.

 

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

 

8

 

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

 

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

 

9

 

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

 

	
   

  	
  DECRANE AIRCRAFT HOLDINGS, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Senior Vice President and Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AUDIO INTERNATIONAL, INC., an

  Arkansas corporation (for purposes of Section 5

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:
  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Chief Financial Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  limited liability company (for purposes of

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Chief Financial Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CUSTOM WOODWORK & PLASTICS,

  LLC., a Delaware limited liability company (for

  purposes of Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  

 

S-1

 

	
   

  	
  DAH-IP HOLDINGS, INC., a Delaware

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:
  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DAH-IP INFINITY, INC., a Delaware

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE AIRCRAFT SEATING

  COMPANY, INC., a Wisconsin corporation

  (for purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE CABIN INTERIORS, LLC,

  a Delaware limited liability company

  (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  

 

S-2

 

	
   

  	
  DECRANE CABIN INTERIORS CANADA,

  INC., a Delaware corporation (for purposes of

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOLLINGSEAD INTERNATIONAL, INC.,

  a California corporation (for purposes of Section

  5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PATS AIRCRAFT, LLC, a Delaware
  limited

  liability company (for purposes of Section

  5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:
  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  

 

S-3

 

	
   

  	
  PPI HOLDINGS, INC., a Kansas corporation

  (for purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRECISION PATTERN, INC., a Kansas

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE INFINITY PARTNERS, LTD., a Texas

  limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by:
  DAH-IP Holdings, Inc., a Delaware limited

  partnership, its general partner (for purposes of

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE HOLDINGS CO., a Delaware

  corporation (for purposes of Section 5 only) as a

  guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  RICHARD J. KAPLAN

  	
   

  
	
   

  	
   

  	
  Name:  Richard J. Kaplan

  
	
   

  	
   

  	
  Title:   Assistant Secretary

  

 

S-4

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON,
  acting

  through its Cayman Islands Branch

  (successor to DLJ Capital Funding, Inc.), as a

  Lender, Syndication Agent and Adminstrative

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/
  DANA KLEIN

  	
   

  
	
   

  	
   

  	
  Name:  Dana Klein

  
	
   

  	
   

  	
  Title:  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ THOMAS L. NEWBERRY

  	
   

  
	
   

  	
   

  	
  Name:  Thomas L. Newberry

  
	
   

  	
   

  	
  Title:  Managing Director

  

 

S-5

 

	
   

  	
   

  	
  ,
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-6

 

ANNEX A

 

MATTERS TO
BE COVERED IN OPINION OF COUNSEL TO COMPANY

 

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

 

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

 

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

 

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

 

A-1

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