Document:

Exhibit 10.10.9

 

 

DECRANE
AIRCRAFT HOLDINGS, INC.

 

SIXTH
AMENDMENT

TO
THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

This SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”) is dated as of July 16, 2004
and entered into by and among DeCrane Aircraft Holdings, Inc., a Delaware
corporation (“Company”), the financial institutions listed on the signature
pages hereof (“Lenders”), Credit Suisse First Boston, 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, as further amended by a Fourth Amendment to Third
Amended and Restated Credit Agreement dated as of December 10, 2003 and as
further amended by a Fifth Amendment to Third Amended and Restated Credit
Agreement dated as of June 9, 2004 (the “Credit Agreement”), by and among Company,
the lenders listed on the signature pages thereof, Syndication Agent and
Administrative Agent.  Capitalized terms
used herein without definition shall have the same meanings herein as set forth
in the Credit Agreement.

 

RECITALS

 

WHEREAS, Company desires
to issue the Senior Notes in connection with the Senior Note Exchange and enter
into the Senior Note Indenture as permitted by subsection 7.1(xi) of the Credit
Agreement;

 

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

 

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

 

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

 

WHEREAS, Syndication
Agent has decided to make such determination only upon request by Requisite
Lenders, as provided in subsection 9.2D of the Credit Agreement.

 

 

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

 

Section
1.      AMENDMENT
TO THE CREDIT AGREEMENT

 

Section 7 of the Credit Agreement is hereby
amended by adding the following as subsection 7.17:

 

“7.17      Prepayments of Senior Notes.

 

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

 

Section
2.      REQUEST

 

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

 

Section
3.      CONDITIONS
TO EFFECTIVENESS

 

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

 

1.     On or before the Sixth 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 Sixth
Amendment Effective Date:

 

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

 

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

 

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

 

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

 

2

 

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 Sixth 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 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.

 

3

 

 

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

 

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

 

Section
5.      ACKNOWLEDGEMENT
AND CONSENT

 

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

 

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

 

Each Guarantor (a) acknowledges and agrees that the
Guaranty to which it is a party or otherwise bound shall continue in full force
and effect and that all of its obligations thereunder shall be valid and
enforceable and shall not be impaired or limited by the execution or
effectiveness of this Amendment;  (b)
represents and warrants that all representations and warranties contained in
the Amended Agreement and in the Guaranty to which it is a party or otherwise
bound are true, correct and complete in all material respects on and as of the
Sixth 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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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 

 

5

 

pages are physically attached to the same document.  This Amendment shall become effective upon
the execution of a counterpart hereof by Company, Requisite Lenders and
Guarantors and receipt by Company and Agents of written or telephonic
notification of such execution and authorization of delivery thereof.

 

6

 

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

 

	
   

  	
  DECRANE AIRCRAFT
  HOLDINGS, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name:  R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AUDIO
  INTERNATIONAL, INC., an

  Arkansas corporation (for purposes of Section 5

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name:  R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  limited liability company (for purposes of Section 5

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
  By:

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CUSTOM WOODWORK & PLASTICS, LLC.,
  a Delaware limited liability company (for purposes of

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
					

 

A-1

 

	
   

  	
  DAH-IP HOLDINGS,
  INC., a Delaware

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack decrane

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DAH-IP INFINITY,
  INC., a Delaware

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack DeCrane

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE AIRCRAFT
  SEATING

  COMPANY, INC., a Wisconsin corporation

  (for purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack DeCrane

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE CABIN
  INTERIORS, LLC, a

  Delaware limited liability company (for

  purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Jack DeCrane

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

A-2

 

	
   

  	
  DECRANE CABIN INTERIORS CANADA,

  INC., a Delaware corporation (for purposes of

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOLLINGSEAD
  INTERNATIONAL, INC.,

  a California corporation (for purposes of Section

  5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PATS AIRCRAFT, LLC,
  a Delaware limited

  liability company (for purposes of Section 5

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  

 

A-3

 

	
   

  	
  PPI HOLDINGS, INC.,
  a Kansas corporation

  (for purposes of Section 5 only) as a Subsidiary

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRECISION PATTERN, INC.,
  a Kansas

  corporation (for purposes of Section 5 only) as a

  Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE INFINITY PARTNERS, LTD.,
  a Texas

  limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  partnership, its general partner (for purposes of

  Section 5 only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DECRANE HOLDINGS
  CO., a Delaware

  corporation (for purposes of Section 5 only) as a

  guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. JACK DECRANE

  	
   

  
	
   

  	
   

  	
  Name: R. Jack DeCrane

  
	
   

  	
   

  	
  Title:  Chief Executive
  Officer

  

 

A-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/ DAVID MILLER

  	
   

  
	
   

  	
   

  	
  Name: David Miller

  
	
   

  	
   

  	
  Title: Managing Director

  

 

A-5

 

	
   

  	
   

  	
  , as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

A-6Exhibit
10.12.1

 

DECRANE
AIRCRAFT HOLDINGS, INC.

 

FIRST
AMENDMENT

TO
CREDIT AGREEMENT

 

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

 

RECITALS

 

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

 

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

 

Section 1. AMENDMENTS
TO THE CREDIT AGREEMENT

 

1.1
Amendments to Section 1: Definitions

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

1.2
Amendments to Section 6:  Company’s
Negative Covenants

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

“B.          Foreign Collateral.

 

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

 

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

 

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

 

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

 

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

 

Section 2. CONSENT

 

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

 

4

 

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

 

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

 

Section 3. CONDITIONS
TO EFFECTIVENESS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

Section 4. COMPANY’S
REPRESENTATIONS AND WARRANTIES

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

Section 5. ACKNOWLEDGEMENT
AND CONSENT

 

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

 

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

 

7

 

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

 

Section 6. MISCELLANEOUS

 

A.            Effect of Amendment.

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

9

 

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

 

	
   

  	
  DECRANE AIRCRAFT
  HOLDINGS, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title:
  Senior Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AUDIO
  INTERNATIONAL, INC., an

  Arkansas corporation (for purposes of Section 5

  only) as a Subsidiary Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CUSTOM WOODWORK & PLASTICS,

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
					

 

S-1

 

	
   

  	
  DAH-IP HOLDINGS,
  INC., a Delaware

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DAH-IP INFINITY,
  INC., a Delaware

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DECRANE AIRCRAFT
  SEATING

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
							

 

S-2

 

	
   

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

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title:  Chief Financial
  Officer and Secretary

  

 

S-3

 

	
   

  	
  PPI HOLDINGS, INC.,
  a Kansas corporation

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRECISION PATTERN, INC.,
  a Kansas

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE INFINITY PARTNERS, LTD.,

  a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Chief Financial Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Kaplan

  
	
   

  	
   

  	
  Name: Richard J. Kaplan

  
	
   

  	
   

  	
  Title: Managing Director

  

 

S-4

 

	
   

  	
  CREDIT SUISSE FIRST
  BOSTON, acting

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

  Lender, Syndication Agent and Adminstrative

  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dana Klei

  
	
   

  	
   

  	
  Name: Dana Klein

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas L. Newberry

  
	
   

  	
   

  	
  Name: Thomas L. Newberry

  
	
   

  	
   

  	
  Title: Managing Director

  

 

S-5

 

	
   

  	
   

  	
  ,as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

S-6

 

ANNEX
A

 

MATTERS
TO BE COVERED IN OPINION OF COUNSEL TO COMPANY

 

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

 

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

 

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

 

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

 

A-1

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