DECRANE AIRCRAFT HOLDINGS INC
EX-10.14
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<TYPE>EX-10.14
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<FILENAME>a04-11348_1ex10d14.htm
<DESCRIPTION>EX-10.14
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.14</font></b></p>

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font style="font-weight:bold;">SENIOR PREFERRED STOCK AMENDMENT AGREEMENT</font></b></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">dated as of</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">July&nbsp;23, 2004</font></b></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">among</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DECRANE AIRCRAFT HOLDINGS, INC.,</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DECRANE HOLDINGS CO.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE HOLDERS SET FORTH ON THE SIGNATURE PAGES
HERETO</font></b></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TABLE OF CONTENTS</font></b></p>

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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article1" title="Click to goto ARTICLE 1"><font style="text-transform:none;">ARTICLE&nbsp;1</font></a></font></p>
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  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;"><a href="#Amendment" title="Click to goto AMENDMENT">AMENDMENT</a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section1_01" title="Click to goto Section 1.01">Section&nbsp;1.01.&#160; <i><font style="font-style:italic;">Consent to Amendment</font></i></a></font></p>
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  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section1_02" title="Click to goto Section 1.02">Section&nbsp;1.02.&#160; <i><font style="font-style:italic;">Closing</font></i></a></font></p>
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  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article2" title="Click to goto ARTICLE 2"><font style="text-transform:none;">ARTICLE&nbsp;2</font></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;"><a href="#RepresentationsAnd" title="Click to goto REPRESENTATIONS AND">REPRESENTATIONS AND WARRANTIES OF THE
  COMPANY AND DECRANE HOLDINGS</a></font></p>
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  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_01" title="Click to goto Section 2.01">Section&nbsp;2.01.&#160; <i><font style="font-style:italic;">No Default Under Credit Agreement</font></i></a></font></p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_02" title="Click to goto Section 2.02">Section&nbsp;2.02.&#160; <i><font style="font-style:italic;">Authorizations</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_03" title="Click to goto Section 2.03">Section&nbsp;2.03 . <i><font style="font-style:italic;">Governmental Authorization</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_04" title="Click to goto Section 2.04">Section&nbsp;2.04.&#160; <i><font style="font-style:italic;">Non-Contravention</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section2_05" title="Click to goto Section 2.05">Section&nbsp;2.05.&#160; <i><font style="font-style:italic;">Litigation</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
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  <p align="right" style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article3" title="Click to goto ARTICLE 3"><font style="text-transform:none;">ARTICLE&nbsp;3</font></a></font></p>
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  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;"><a href="#RepresentationsAndWarranties" title="Click to goto REPRESENTATIONS AND WARRANTIES">REPRESENTATIONS AND WARRANTIES OF THE HOLDERS</a></font></p>
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  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
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  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_01" title="Click to goto Section 3.01">Section&nbsp;3.01.&#160; <i><font style="font-style:italic;">Ownership of Existing Preferred Stock</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_02" title="Click to goto Section 3.02">Section&nbsp;3.02.&#160; <i><font style="font-style:italic;">Authorization of Agreement</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_03" title="Click to goto Section 3.03">Section&nbsp;3.03.&#160; <i><font style="font-style:italic;">Non-Contravention</font></i></a></font></p>
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  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_04" title="Click to goto Section 3.04">Section&nbsp;3.04.&#160; <i><font style="font-style:italic;">Investment Purposes</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_05" title="Click to goto Section 3.05">Section&nbsp;3.05.&#160; <i><font style="font-style:italic;">Inspections; No Other Representations</font></i></a></font></p>
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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section3_06" title="Click to goto Section 3.06">Section&nbsp;3.06 . <i><font style="font-style:italic;">Taxpayer Identification Number</font></i></a></font></p>
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  <p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
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  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article4" title="Click to goto ARTICLE 4"><font style="text-transform:none;">ARTICLE&nbsp;4</font></a></font></p>
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  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;"><a href="#Covenants" title="Click to goto COVENANTS">COVENANTS</a></font></p>
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  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_01" title="Click to goto Section 4.01">Section&nbsp;4.01.&#160; <i><font style="font-style:italic;">Covenants of the Company and DeCrane Holdings</font></i></a></font></p>
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  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section4_02" title="Click to goto Section 4.02">Section&nbsp;4.02.&#160; <i><font style="font-style:italic;">Covenants of the Holders</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article5" title="Click to goto ARTICLE 5"><font style="text-transform:none;">ARTICLE&nbsp;5</font></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;"><a href="#Conditions" title="Click to goto CONDITIONS">CONDITIONS TO THE CLOSING</a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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 <tr>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section5_01" title="Click to goto Section 5.01">Section&nbsp;5.01.&#160; <i><font style="font-style:italic;">Conditions to Obligation of Each Party</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section5_02" title="Click to goto Section 5.02">Section&nbsp;5.02.&#160; <i><font style="font-style:italic;">Conditions
  to the Obligations of the Holders</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section5_03" title="Click to goto Section 5.03">Section&nbsp;5.03.&#160; <i><font style="font-style:italic;">Conditions to the Obligations of the Company and
  DeCrane Holdings</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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 <tr>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article6" title="Click to goto ARTICLE 6"><font style="text-transform:none;">ARTICLE&nbsp;6</font></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;"><a href="#Survival" title="Click to goto SURVIVAL">SURVIVAL; INDEMNIFICATION</a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
 </tr>
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  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section6_01" title="Click to goto Section 6.01">Section&nbsp;6.01.&#160; <i><font style="font-style:italic;">Survival</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="91%" valign="top" style="padding:0in 0in 0in 0in;width:91.72%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section6_02" title="Click to goto Section 6.02">Section&nbsp;6.02.&#160; <i><font style="font-style:italic;">Indemnification</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.28%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="100%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Article7" title="Click to goto ARTICLE 7"><font style="text-transform:none;">ARTICLE&nbsp;7</font></a></font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;text-transform:uppercase;"><a href="#Miscellaneous" title="Click to goto MISCELLANEOUS"><font style="text-transform:none;">MISCELLANEOUS</font></a></font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
 </tr>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_01" title="Click to goto Section 7.01">Section&nbsp;7.01.&#160; <i><font style="font-style:italic;">Notices</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_02" title="Click to goto Section 7.02">Section&nbsp;7.02.&#160; <i><font style="font-style:italic;">No Waivers; Amendments</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_03" title="Click to goto Section 7.03">Section&nbsp;7.03.&#160; <i><font style="font-style:italic;">Waiver of Warrant Requirements</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_04" title="Click to goto Section 7.04">Section&nbsp;7.04.&#160; <i><font style="font-style:italic;">Termination</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_05" title="Click to goto Section 7.05">Section&nbsp;7.05.&#160; <i><font style="font-style:italic;">Successors And Assigns</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_06" title="Click to goto Section 7.06">Section&nbsp;7.06.&#160; <i><font style="font-style:italic;">Limited Recourse and Non-Petition</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_07" title="Click to goto Section 7.07">Section&nbsp;7.07.&#160; <i><font style="font-style:italic;">Governing Law</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_08" title="Click to goto Section 7.08">Section&nbsp;7.08.&#160; <i><font style="font-style:italic;">Jurisdiction</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_09" title="Click to goto Section 7.09">Section&nbsp;7.09.&#160; <i><font style="font-style:italic;">WAIVER OF JURY TRIAL</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_10" title="Click to goto Section 7.10">Section&nbsp;7.10.&#160; <i><font style="font-style:italic;">Counterparts; Effectiveness</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_11" title="Click to goto Section 7.11">Section&nbsp;7.11.&#160; <i><font style="font-style:italic;">Expenses</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_12" title="Click to goto Section 7.12">Section&nbsp;7.12.&#160; <i><font style="font-style:italic;">Entire Agreement</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="91%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:91.48%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Section7_13" title="Click to goto Section 7.13">Section&nbsp;7.13.&#160; <i><font style="font-style:italic;">Captions; Certain Definitions</font></i></a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;text-indent:0in;">&nbsp;</p>
  </td>
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  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="74%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:74.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
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  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Schedule1_02" title="Click to goto SCHEDULE 1.02">Schedule&nbsp;1.02</a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Schedule1_02" title="Click to goto SCHEDULE 1.02">-</a></font></p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Schedule1_02" title="Click to goto SCHEDULE 1.02">Taxpayer
  Identification Number; Shares of Existing<br>
  Preferred Stock and Senior Preferred Stock; Shares of<br>
  Common Stock to be Issued</a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
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  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Schedule3_01" title="Click to goto SCHEDULE 3.01">Schedule&nbsp;3.01</a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Schedule3_01" title="Click to goto SCHEDULE 3.01">-</a></font></p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Schedule3_01" title="Click to goto SCHEDULE 3.01">Ownership
  of Existing Preferred Stock</a></font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit A</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificate of Amendment to Certificate of Designations</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit B</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Waiver</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit C</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Registration Rights Agreement Amendment</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="17%" valign="top" style="padding:0in 0in 0in 0in;width:17.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit D</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">-</font></p>
  </td>
  <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form of Investors&#146; Agreement Amendment</font></p>
  </td>
  <td width="8%" valign="top" style="padding:0in 0in 0in 0in;width:8.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii</font></p>


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</font></div>

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<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SENIOR PREFERRED STOCK AMENDMENT AGREEMENT</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AGREEMENT dated as of July&nbsp;23, 2004, among DeCrane Aircraft
Holdings, Inc., a Delaware corporation (the &#147;<b><font style="font-weight:bold;">Company</font></b>&#148;),
DeCrane Holdings Co., a Delaware corporation (&#147;<b><font style="font-weight:bold;">DeCrane Holdings</font></b>&#148;), and the
other persons set forth on the signature pages hereto (together with their
successors and assigns, each a &#147;<b><font style="font-weight:bold;">Holder</font></b>&#148; and together the &#147;<b><font style="font-weight:bold;">Holders</font></b>&#148;).</font></p>

<p align="left" style="font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">W&#160;
I&#160; T&#160; N&#160; E&#160; S&#160; S&#160; E&#160;
T&#160; H :</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Holders are holders of all of the outstanding shares of
16% Senior Redeemable Exchangeable Preferred Stock Due 2009 of the Company (the
&#147;<b><font style="font-weight:bold;">Existing
Preferred Stock</font></b>&#148;);</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Holders and the Company have agreed to amend certain terms
of the Existing Preferred Stock such that the powers, designations, preferences
and relative, participating, optional and other special rights, and the
qualifications, limitations and restrictions of the Existing Preferred Stock as
amended (the &#147;<b><font style="font-weight:bold;">Senior Preferred Stock</font></b>&#148;) shall be as set forth in Exhibit A
(the &#147;<b><font style="font-weight:bold;">Certificate of Designations</font></b>&#148;);</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, in connection with, and in consideration for, the amendment of
the Existing Preferred Stock, DeCrane Holdings will also issue certain shares
of common stock, par value $.01 per share, of DeCrane Holdings (the &#147;<b><font style="font-weight:bold;">Common Stock</font></b>&#148;)
to the Holders as provided herein;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, in connection with the amendment of the Existing Preferred
Stock, the Company will enter into an amendment (the &#147;<b><font style="font-weight:bold;">Credit Agreement Amendment</font></b>&#148;)
to the Third Amended and Restated Credit Agreement dated as of May 11, 2000
among the Company, the lenders party thereto and Credit Suisse First Boston (as
successor to DLJ Capital Funding, Inc.), as administrative agent and
syndication agent for the lenders (as amended prior to the date hereof and by
the Credit Agreement Amendment, the &#147;<b><font style="font-weight:bold;">Senior Credit Agreement</font></b>&#148;)</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, in connection with the amendment of the Existing Preferred
Stock, the Company will enter into an amendment&#160; (the &#147;<b><font style="font-weight:bold;">Second Lien Credit Agreement Amendment</font></b>&#148;) to
the Second Lien Credit Agreement dated as of December&nbsp;22, 2003 among the
Company, the lenders party thereto and Credit Suisse First Boston, acting
through its Cayman Islands Branch, as administrative agent and syndication
agent for the lenders (as amended prior to the date hereof and by the Second
Lien Credit Agreement Amendment, the &#147;<b><font style="font-weight:bold;">Second Lien Credit Agreement</font></b>&#148;);</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, concurrently with the amendment of the Existing Preferred
Stock, the Company will exchange a portion of the 12% Senior Subordinated Notes
Due 2008 (the &#147;<b><font style="font-weight:bold;">Old Notes</font></b>&#148;) for new 17% Senior Discount Notes Due 2008 (the &#147;<b><font style="font-weight:bold;">New Notes</font></b>&#148;)
to be issued pursuant to the provisions of an indenture, dated</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as of the Closing Date (as defined herein) (the &#147;<b><font style="font-weight:bold;">Indenture</font></b>&#148;) among the
Company, the Guarantors named therein and U.S. Bank National Association, as
Trustee;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, concurrently with the amendment of the Existing Preferred
Stock, DeCrane Holdings will obtain waivers of certain rights from holders of
more than 99% of the outstanding shares of its 14% Senior Redeemable
Exchangeable Preferred Stock Due 2009 (the &#147;<b><font style="font-weight:bold;">Junior Preferred Stock</font></b>&#148;)
pursuant to a waiver substantially in the form attached hereto as Exhibit B
(the &#147;<b><font style="font-weight:bold;">Junior
Preferred Stock Waiver</font></b>&#148;); and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Holders and the Company will enter into Amendment No. 2 to
the Senior Preferred Stock Registration Rights Agreement dated as of
June&nbsp;30, 2000 among the Company and the stockholders named therein (as the
same may be amended from time to time, the &#147;Registration Rights Agreement&#148;),
substantially in the form attached hereto as Exhibit C (the &#147;Registration
Rights Agreement Amendment&#148;) and DeCrane Holdings, with the approval of its
board of directors and the holders of at least 75% of the outstanding shares of
common stock and preferred stock of DeCrane Holdings, will enter into Amendment
No. 2 to the Amended and Restated Investors&#146; Agreement dated October&nbsp;6,
2000 among DeCrane Holdings, the Company and the stockholders named therein (as
the same may be amended from time to time, the &#147;Investors&#146; Agreement&#148;),
substantially in the form attached hereto as Exhibit D (the &#147;Investors&#146;
Agreement Amendment&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW THEREFORE, the parties hereto agree as follows:</font></p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">&nbsp;</font></p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article1"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;1</font></a><font style="font-variant:normal;"><br>
<a name="Amendment">AMENDMENT</a></font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section1_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.01</font></a><i><font style="font-style:italic;">.&#160; Consent to Amendment. </font></i>Subject to
the terms and conditions set forth herein and in reliance on the
representations and warranties contained herein, the Company agrees to amend
the Certificate of Designations, Preferences and Rights of 16% Senior
Redeemable Exchangeable Preferred Stock Due 2009 so that the powers,
designations, preferences and relative, participating, optional and other
special rights, and the qualifications, limitations and restrictions of the
Senior Preferred Stock shall be as set forth in the Certificate of
Designations, and each Holder consents to such amendment, which amendment shall
be effective on the Closing Date (as defined herein).</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section1_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;1.02</font></a><i><font style="font-style:italic;">.&#160; Closing.&#160;
</font></i>The closing (the &#147;<b><font style="font-weight:bold;">Closing</font></b>&#148;)
of the amendment of the Existing Preferred Stock and the issuance of the Common
Stock hereunder, as consideration for the amendment of the Existing Preferred
Stock, shall take place at the offices of Davis Polk &amp; Wardwell, 450
Lexington Avenue, New York, New York, as soon as possible, but in no event
later than five (5) business days after satisfaction of the conditions set
forth in Article&nbsp;5, or at such other time or place </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


<div style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">as the Company, DeCrane Holdings and the Holders may agree, such date
is hereinafter referred to as the &#147;Closing Date&#148;.&#160; On the Closing Date, the Company will file the Certificate of
Designations with the Secretary of State of Delaware.&#160; At the Closing, each Holder, severally and not jointly, shall
surrender to the Company its Existing Preferred Stock certificates and the
Company shall deliver to each Holder (a) a new certificate for the same number
of shares of Senior Preferred Stock and (b) a certificate for a number of
shares of Common Stock determined by (i) dividing (A) the number of shares of
Existing Preferred Stock held by such Holder immediately prior to the Closing
by (B) the total number of outstanding shares of Existing Preferred Stock
immediately prior to the Closing and (ii) multiplying such quotient by 7.5% of
the total number of shares of Common Stock of DeCrane Holdings outstanding
immediately after the Closing (including for this purpose the total number of
shares of Common Stock issuable upon exercise of the Class A Warrants for the
Purchase of Shares of Common Stock of DeCrane Holdings and the Class B Warrants
for the Purchase of Shares of Common Stock of DeCrane Holdings (collectively,
the &#147;Penny Warrants&#148;)).&#160;
Schedule&nbsp;1.02 hereto sets forth the number of shares of Common
Stock that DeCrane Holdings will issue to each Holder, subject to any changes
that might result from any transfer of shares of the Existing Preferred Stock
and/or any changes in the total number of outstanding shares of Common Stock
between the date hereof and the Closing Date.</font></p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">&nbsp;</font></p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article2"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;2</font></a><font style="font-variant:normal;"><br>
<a name="RepresentationsAnd">REPRESENTATIONS AND</a> WARRANTIES OF THE COMPANY
AND DECRANE HOLDINGS</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company and DeCrane Holdings represent and warrant to each Holder
that:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section2_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.01</font></a><i><font style="font-style:italic;">.&#160; No Default Under Credit Agreement.&#160; </font></i>As of the date hereof, (i) no
Potential Event of Default or Event of Default (each as defined in the Senior
Credit Agreement) has occurred and is continuing, and (ii) the Company is able
to satisfy the conditions to borrowing under the Senior Credit Agreement to
permit the Company to borrow at least $1 of additional debt thereunder pursuant
to the terms thereto on the date hereof.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section2_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.02</font></a><i><font style="font-style:italic;">.&#160; Authorizations.&#160; </font></i>The execution, delivery and performance by the Company
and DeCrane Holdings of this Agreement have been duly authorized by all
necessary corporate action on the part of the Company and DeCrane
Holdings.&#160; Upon the effectiveness of
this Agreement, the amendments to the terms of the Existing Preferred Stock as
set forth in the Certificate of Designations shall have been duly authorized by
all necessary corporate action on the part of the Company.&#160; The
issuance of Common Stock to the Holders as provided herein has been duly
authorized by all necessary corporate action on the part of DeCrane
Holdings.&#160; Each of the Registration
Rights Agreement Amendment and the Investors&#146; Agreement Amendment has been duly
authorized </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


<div style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by all necessary corporate action on the part
of the Company and DeCrane Holdings, as applicable.&#160; This Agreement is and, when executed and delivered on the Closing
Date, each of the Credit Agreement Amendment, Second Lien Credit Agreement
Amendment, Registration Rights Agreement Amendment and the Investors&#146; Agreement
Amendment will be, a valid and binding agreement of the Company and DeCrane
Holdings, as applicable, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent transfer and similar laws affecting
creditors&#146; rights generally and equitable principles of general applicability
and except as rights to indemnification and contribution under the Registration
Rights Agreement or the Investors&#146; Agreement may be limited under applicable
law.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section2_03"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.03</font></a><i><font style="font-style:italic;">.
Governmental Authorization.&#160; </font></i>Assuming
the accuracy of the representations and warranties of the Holders and their
compliance with the covenants herein, the execution, delivery and performance
by the Company and DeCrane Holdings of
this Agreement, the Registration Rights Agreement Amendment and the Investors&#146;
Agreement Amendment and the consummation of the transactions contemplated
hereby require no material order, license, consent, authorization, or approval
of, or exemption by, or action by or in respect of, or notice to, or filing or
registration with, any governmental body, agency or official, other than the
filing of the Certificate of Designations with the Secretary of State of
Delaware and except as may be required by Federal and state securities laws
with respect to the Company&#146;s obligations under the Registration Rights
Agreement and except as may be required by state securities laws.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section2_04"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.04</font></a>.<i><font style="font-style:italic;">&#160; Non-Contravention.&#160; </font></i>The execution, delivery and performance by the Company
and DeCrane Holdings of this Agreement, the Registration Rights Agreement
Amendment, the Investors&#146; Agreement Amendment and the Certificate of
Designations do not and will not (i) violate the certificate of incorporation
or bylaws of the Company or DeCrane Holdings or (ii) violate any material
applicable law, rule, regulation, judgment, injunction, order or decree, (iii)
upon obtaining the consents and taking the other actions required to satisfy
the conditions precedent set forth in Article&nbsp;5, require any material
consent or other action by any person under, constitute a material default
under, or give rise to any material right of termination, cancellation or
acceleration of any right or obligation of the Company or DeCrane Holdings or
to a loss of any material benefit to which the Company or DeCrane Holdings are
entitled under any provision of any agreement or other instrument binding upon
the Company or DeCrane Holdings or any of the Company&#146;s or DeCrane Holdings&#146;
assets or properties or (iv) result in the creation or imposition of any
material lien on any property or assets of the Company or DeCrane Holdings.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section2_05"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;2.05</font></a><i><font style="font-style:italic;">.&#160; Litigation.&#160;
</font></i>There is no action, suit, investigation or proceeding pending
against, or to the knowledge of the Company or DeCrane Holdings, threatened in
writing against or affecting the Company or DeCrane Holdings or any of their
respective properties before any court or arbitrator or any governmental body,
agency or official which could reasonably be expected to </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">have a material adverse effect on the
transactions contemplated by this Agreement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article3"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;3</font></a><font style="font-variant:normal;"><br><br></font></p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="RepresentationsAndWarranties"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">REPRESENTATIONS AND WARRANTIES</font></a><font style="font-variant:normal;"> OF THE HOLDERS</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Holder, severally and not jointly, as to itself only, represents
and warrants to the Company and DeCrane Holdings as follows:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section3_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.01</font></a><i><font style="font-style:italic;">.&#160; Ownership of Existing Preferred Stock.&#160; </font></i>Except as set forth on
Schedule&nbsp;3.01 with respect to a pledge prior to the date hereof, such
Holder has, and on the Closing Date will have valid title to, or a valid &#147;security
entitlement&#148; within the meaning of Section&nbsp;8-501 of the New York Uniform
Commercial Code in respect of, the shares of Existing Preferred Stock shown on
Schedule&nbsp;1.02, free and clear of all security interests, claims, liens,
equities or other encumbrances.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section3_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.02</font></a><i><font style="font-style:italic;">.&#160; Authorization of Agreement.&#160; </font></i>The execution, delivery and
performance of this Agreement are within such Holder&#146;s powers and have been
duly authorized by all requisite corporate action on the part of such
Holder.&#160; This Agreement constitutes a
valid and binding agreement of such Holder enforceable in accordance with its
terms.&#160; This Agreement has been duly
executed and delivered by such Holder, subject to applicable bankruptcy,
insolvency, fraudulent transfer and similar laws affecting creditors&#146; rights
generally and equitable principles of general applicability.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section3_03"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.03</font></a><i><font style="font-style:italic;">.&#160; Non-Contravention</font></i>.&#160; The execution and delivery by such Holder
of, and the performance by such Holder of its obligations under, this Agreement
will not contravene any provision of applicable law or the certificate of
incorporation, by-laws or other organizational document of such Holder or any
material agreement or other instrument binding upon such Holder, or any
judgment, order or decree of any governmental body, agency or court having
jurisdiction over such Holder.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section3_04"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.04</font></a>.&#160; <i><font style="font-style:italic;">Investment Purposes.&#160;
</font></i>Such Holder acknowledges that the Senior Preferred Stock and
the Common Stock have not been registered under the Securities Act or any state
securities laws and that the amendment of the Existing Preferred Stock and the
issuance of the Common Stock contemplated hereby are to be effected pursuant to
an exemption from the registration requirements imposed by such laws, including
Section&nbsp;4(2) under the Securities Act.&#160;
Such Holder is an &#147;accredited investor&#148; within the meaning of Rule
501(a) under the Securities Act and the shares of Common Stock to be received
by it pursuant to this Agreement are being received for its own account without
a view toward distribution in violation of the Securities Act and such Holder
will not offer, sell, transfer, pledge, hypothecate or otherwise dispose of the
Senior Preferred Stock unless pursuant to a transaction either registered
under, or exempt from</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">registration under, the Securities Act, it
being agreed that Neon Capital Limited may grant a security interest in the
Senior Preferred Stock and the Common Stock for the benefit of the holders of
the Series 95 $5,929,820 Limited Recourse Pass-Through Secured Notes due 2013
(the &#147;<b><font style="font-weight:bold;">Neon
Notes</font></b>&#148;), subject to compliance with applicable securities laws.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section3_05"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.05</font></a><i><font style="font-style:italic;">.&#160; Inspections; No Other Representations.&#160; </font></i>Each Holder is an informed and
sophisticated purchaser, and has engaged expert advisors, experienced in the
evaluation of the transactions contemplated hereunder.&#160; Each Holder has undertaken such
investigation and has been provided with and has evaluated such documents and
information as it has deemed necessary to enable it to make an informed and
intelligent decision with respect to the execution, delivery and performance of
this Agreement.&#160; Each Holder
acknowledges that the Company and DeCrane Holdings have given such Holder
complete and open access (to the extent requested by such Holder) to the key
employees and documents of the Company, DeCrane Holdings and their respective
subsidiaries.&#160; Each Holder agrees to the
amendment of the Existing Preferred Stock and the issuance of the Common Stock
on the Closing Date based upon its own inspection, examination and
determination with respect thereto as to all matters, and without reliance upon
any express or implied representations or warranties of any nature made by or
on behalf of or imputed to the Company or DeCrane Holdings, except as expressly
set forth in this Agreement.&#160; Without
limiting the generality of the foregoing, each Holder acknowledges that the
Company and DeCrane Holdings make no representation or warranty with respect to
(i) any projections, estimates or budgets delivered to or made available to the
Holder of future revenues, future results of operations (or any component
thereof), future cash flows or future financial condition (or any component
thereof) of the Company and DeCrane Holdings or the future business and
operations of the Company and DeCrane Holdings or (ii) any other information or
documents made available to such Holder or its advisors with respect to the
Company or DeCrane Holdings or their businesses or operations, except as
expressly set forth in this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section3_06"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;3.06</font></a><i><font style="font-style:italic;">. Taxpayer
Identification Number.&#160; </font></i>The
number set forth under &#147;Taxpayer Identification Number&#148; on Schedule&nbsp;1.02
hereto next to the name of such Holder is such Holder&#146;s federal taxpayer
identification number.</p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">&nbsp;</font></p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article4"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;4</font></a><font style="font-variant:normal;"><br>
<a name="Covenants">COVENANTS</a></font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section4_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.01</font></a><i><font style="font-style:italic;">.&#160; Covenants of the Company and DeCrane
Holdings.&#160; </font></i>In further
consideration of the agreements of the Holders contained in this Agreement, the
Company and DeCrane Holdings covenant with each of the Holders as follows:</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company and DeCrane
Holdings will use their commercially reasonable efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things necessary or
desirable under applicable laws and regulations to consummate the transactions
contemplated by this Agreement;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company and DeCrane
Holdings will use their commercially reasonable efforts to obtain or cause to
be obtained any consents, approvals or waivers that are required to be obtained
from third parties to any material contracts in connection with the
consummation of the transactions contemplated by this Agreement; and</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in addition to the
obligations contained in Section&nbsp;7.11(a) of the Securities Purchase
Agreement dated as of June&nbsp;20, 2000 among the Company, DeCrane Holdings
and the purchasers party thereto (the &#147;<b><font style="font-weight:bold;">Securities Purchase Agreement</font></b>&#148;), prior to
the Closing Date, the Company and DeCrane Holdings agree that, except as the
Company or DeCrane Holdings and their counsel reasonably determine to be
required by law, they will not disclose the identity of the Holders to any
third party without the prior written consent of such Holder, which consent
shall not be unreasonably withheld, except that the Company or DeCrane Holdings
may disclose any Holder&#146;s identity to their advisors and counsel or to any
other Holder that is a party to this Agreement (it being understood that the
Company will be required to publicly file this Agreement and the Registration
Rights Agreement Amendment and the Investors&#146; Agreement Amendment with the
Securities and Exchange Commission and that DeCrane Holdings will be required
to publicly file this Agreement and the Investors&#146; Agreement with the
Securities and Exchange Commission, which documents will identify each Holder).</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section4_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;4.02</font></a><i><font style="font-style:italic;">.&#160; Covenants of the Holders.&#160; </font></i>In further consideration of the
agreements of the Company and DeCrane Holdings contained in this Agreement,
each Holder covenants with the Company and DeCrane Holdings as follows:</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in addition to the
obligations contained in Section&nbsp;7.11(b) of the Securities Purchase
Agreement, such Holder and its Affiliates (as defined in Rule 405 under the
Securities Act) will hold, and will use their best efforts to cause their
respective officers, directors, employees, accountants, counsel, consultants,
advisors and agents to hold, in confidence, (i) the existence of this Agreement
or any facts relating to the transaction contemplated by this Agreement and
(ii) all confidential documents and information concerning the Company or
DeCrane Holdings furnished to such Holder or its Affiliates in connection with
the </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">transactions contemplated by
this Agreement, except to the extent that such information can be shown to have
been (A) previously known on a nonconfidential basis by such Holder, (B) in the
public domain through no fault of such Holder or (C) later lawfully acquired by
such Holder from sources other than the Company or DeCrane Holdings; <i><font style="font-style:italic;">provided</font></i>
that such Holder may disclose such information (1) to another Holder, (2) to
its officers, directors, employees, accountants, counsel, consultants, advisors
and agents in connection with the transactions contemplated by this Agreement
so long as such persons are informed by such Holder of the confidential nature
of such information and are directed by such Holder to treat such information
confidentially, (3) upon the request or demand of any governmental authority
having jurisdiction over such Holder, (4) in response to any order of any court
or other governmental authority or as may be required pursuant to any
requirement of law or (5) in connection with the exercise of any remedy
hereunder; <i><font style="font-style:italic;">provided
further</font></i> that Neon Capital Limited (&#147;<b><font style="font-weight:bold;">Neon</font></b>&#148;) may disclose such
information to (i) the trustee with respect to the Neon Notes and (ii) to the
beneficiaries of the security interest granted by Neon with respect to the
Existing Preferred Stock.&#160; Each Holder
shall be responsible for any failure to treat such information confidentially
by such persons.&#160; The obligation of each
Holder and its Affiliates to hold any such information in confidence shall be
satisfied if they exercise the same care with respect to such information as
they would take to preserve the confidentiality of their own similar
information and shall in any event expire six months from the Closing
Date.&#160; If this Agreement is terminated,
each Holder and its Affiliates will, and will use their best efforts to cause
their respective officers, directors, employees, accountants, counsel,
consultants, advisors and agents to, destroy or deliver to the Company or
DeCrane Holdings, upon request, all documents and other materials, and all
copies thereof, obtained by such Holder or its Affiliates or on their behalf
from the Company or DeCrane Holdings in connection with this Agreement that are
subject to such confidentiality provisions;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>such Holder will use its
commercially reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary or desirable under applicable
laws and regulations to consummate the transactions contemplated by this
Agreement; and</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>unless this Agreement is
terminated in accordance with Section&nbsp;7.05 hereof, until the Existing
Preferred Stock is amended pursuant to the terms of this Agreement, such Holder
will not pledge, sell, contract to sell, grant any option, right or warrant to
purchase, lend or otherwise transfer or dispose of any shares of the Existing
Preferred Stock or any right or interest (voting or otherwise and including any
participation interest) therein, except with the consent of the Company and
DeCrane Holdings or pursuant to Section&nbsp;1.02 hereof.</p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">&nbsp;</font></p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article5"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;5</font></a><font style="font-variant:normal;"><br>
<a name="Conditions">CONDITIONS</a> TO THE CLOSING</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section5_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.01</font></a><i><font style="font-style:italic;">.&#160; Conditions to Obligation of Each Party.&#160; </font></i>The Holders&#146; consent to the
amendment of the Existing Preferred Stock as set forth in the Certificate of
Designations and the obligations of the Company to amend the Existing Preferred
Stock and of DeCrane Holdings to issue the Common Stock hereunder are subject to
the satisfaction (or, to the extent permitted by law, waiver by such party), at
or prior to the Closing Date, of the following conditions:</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>no provision of any
applicable law or regulation and no judgment, injunction, order or decree shall
prohibit the consummation of the Closing and there shall not be threatened,
instituted or pending any action, suit, investigation or proceeding which could
reasonably be expected to have a material adverse effect on the transactions
contemplated by this Agreement;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the exchange of the Old
Notes for the New Notes shall have been consummated or shall be consummated
concurrently with the Closing;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Credit Agreement
Amendment shall be in full force and effect; and</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Second Lien Credit
Agreement Amendment shall be in full force and effect.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section5_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.02</font></a>.&#160; Conditions to the Obligations of the
Holders.&#160; The consent of the Holders to
the amendment of the Existing Preferred Stock as set forth in the Certificate
of Designations is subject to the satisfaction (or, to the extent permitted by
law, waiver by each Holder), at or prior to the Closing Date, of the following
additional conditions:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the representations and warranties of
the Company and DeCrane Holdings contained in this Agreement shall be true and
correct in all material respects, each of the Company and DeCrane Holdings
shall have performed and complied with all covenants and agreements required by
this Agreement to be performed by it or complied with by it at or prior to the
Closing Date, and each Holder shall have received a certificate, dated the
Closing Date, signed by an authorized officer of each of the Company and
DeCrane Holdings to the foregoing effect;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>new certificates
representing the shares of Senior Preferred Stock and Common Stock to be issued
to the Holders hereunder shall have been prepared and made available for
delivery to the Holders in exchange for Existing Preferred Stock certificates
as provided in Section&nbsp;1.02;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Certificate of
Designations shall have been filed with the Secretary of State of Delaware
prior to or concurrently with the Closing;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company and the DLJ
Entities (as defined in the Investors&#146; Agreement) shall have executed and
delivered the Junior Preferred Stock Waiver;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company shall have
executed and delivered the Registration Rights Agreement Amendment and the
Investors&#146; Agreement Amendment and DeCrane Holdings, with the approval of its
board of directors and the holders of at least 75% of the outstanding shares of
common stock and preferred stock of DeCrane Holdings, shall have executed and
delivered the Investors&#146; Agreement Amendment;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Holders shall have
received copies of each of the Credit Agreement Amendment, the Second Lien
Credit Agreement Amendment, the Exchange Agreement relating to the exchange of
the Old Notes for the New Notes and the Indenture for the New Notes, each of
which shall be in full force and effect and no term or condition thereof shall
have been amended, waived or otherwise modified without the prior consent of
the Holders;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company shall have
delivered to each Holder an opinion of&#160;
Davis Polk &amp; Wardwell, special counsel to the Company and DeCrane
Holdings, dated the Closing Date, in form and substance reasonably satisfactory
to the Holders, to the effect that (subject to appropriate assumptions and
limitations):</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company and
DeCrane Holdings are validly existing and in good standing under the laws of
the State of Delaware with corporate power to enter into the amendment;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Common Stock to be
issued pursuant to this Agreement has been duly authorized by DeCrane Holdings
and, when issued and delivered to the Holders, will be fully paid and
nonassessable;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the filing of the
Certificate of Designations by the Company in the State of Delaware and the
issuance by DeCrane Holdings of the Common Stock pursuant to this Agreement do
not (A) contravene the Certificate of Incorporation or By-laws of DeCrane
Holdings or of the Company, (B) contravene the Indenture, the indenture
governing the Old Notes, the Credit Agreement or the Second Lien Credit
Agreement or (C) violate any New York or federal law that in our experience are
normally applicable to transactions of this type; <i><font style="font-style:italic;">provided</font></i> that Davis Polk
&amp; Wardwell expresses no opinion as to federal or state securities laws;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>each of this Agreement,
the Investors&#146; Agreement Amendment and the Registration Rights Agreement
Amendment has been duly authorized, executed and delivered by each of the
Company and DeCrane Holdings (to the extent party thereto) and is a valid and
binding agreement of the Company and DeCrane Holdings (to the extent party
thereto) in each case enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent transfer and similar laws
affecting creditors&#146; rights generally and equitable principles of general
applicability and except (x) as such enforcement may be limited by bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting creditors&#146; rights generally,
(y) as such enforcement is subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law) and (z) to the extent that a waiver of the rights under any usury or stay
law may be unenforceable, we express no opinion, however, as to the
applicability (and, if applicable, the effect) of Section&nbsp;548 of the
United States Bankruptcy Code or any </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">comparable
provision of state law to the questions addressed above or on the conclusions
expressed with respect thereto;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Certificate of
Designations has been duly authorized by all necessary corporate action on the
part of the Company;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the New Notes have been
duly authorized by the Company and, when executed and authenticated in
accordance with the provisions of the Indenture and issued to the Holders in
exchange for the Old Notes in accordance with the terms of the Exchange
Agreement, will be entitled to the benefits of the Indenture and will be valid
and binding obligations of the Company, enforceable against the Company in
accordance with their terms, except (x) as such enforcement may be limited by
bankruptcy, insolvency, fraudulent conveyance or similar laws affecting
creditors&#146; rights generally, (y) as such enforcement is subject to general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law) and (z) to the extent that a waiver of the
rights under any usury or stay law may be unenforceable, we express no opinion,
however, as to the applicability (and, if applicable, the effect) of
Section&nbsp;548 of the United States Bankruptcy Code or any comparable
provision of state law to the questions addressed above or on the conclusions
expressed with respect thereto;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Indenture has been duly authorized,
executed and delivered by each of the Company and each of the affiliates
of the Company set forth on the signature pages of the Indenture as Guarantors (the &#147;<b><font style="font-weight:bold;">Guarantors</font></b>&#148;) organized under
the laws of Delaware (the &#147;<b><font style="font-weight:bold;">Delaware Guarantors</font></b>&#148;) and is a valid and
binding agreement of the Company, and (assuming due authorization, execution
and delivery by each other Guarantor (the &#147;<b><font style="font-weight:bold;">Non-Delaware Guarantors</font></b>&#148;)) the Guarantors,
enforceable in accordance with its terms, except (x) as such enforcement
may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws
affecting creditors&#146; rights generally, (y) as such enforcement is subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (z) to the extent that a
waiver of the rights under any usury or stay law may be unenforceable, we
express no opinion, however, as to the applicability (and, if applicable, the
effect) of Section&nbsp;548 of the United States Bankruptcy Code or any
comparable provision of state law to the questions addressed above or on the
conclusions expressed with respect thereto; and</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>each of the Delaware
Guarantors has duly authorized its Guarantee of the New Notes; assuming each of
the Non-Delaware Guarantors has duly authorized its Guarantee of the New Notes,
when the New Notes and the Guarantee evidenced thereon have been executed and
authenticated in accordance with the terms of the Indenture and issued to</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>


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<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;the Holders in exchange for the Old Notes in
accordance with the terms thereof, the Guarantee of each Guarantor will be the
legally valid and binding obligation of such Guarantor, enforceable against
such Guarantor in accordance with its terms, except (x) as such enforcement may
be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws
affecting creditors&#146; rights generally, (y) as such enforcement is subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (z) to the extent that a
waiver of the rights under any usury or stay law may be unenforceable, we
express no opinion, however, as to the applicability (and, if applicable, the
effect) of Section&nbsp;548 of the United States Bankruptcy Code or any
comparable provision of state law to the questions addressed above or on the
conclusions expressed with respect thereto.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all fees and expenses
payable to the Holders on or prior to the Closing Date shall have been paid in
full; and</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>each Holder shall have
received all documents reasonably requested by it relating to the existence of
the Company and DeCrane Holdings and the corporate authority for entering into
this Agreement and the consummation of the transactions contemplated hereby,
all in form and substance reasonably satisfactory to it.</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section5_03"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.03</font></a><i><font style="font-style:italic;">.&#160; Conditions to the Obligations of the Company
and DeCrane Holdings.&#160; </font></i>The
obligation of the Company to amend the Existing Preferred Stock and the
obligation of DeCrane Holdings to issue the Common Stock pursuant to this
Agreement are subject to the satisfaction (or, to the extent permitted by law,
waiver by each Holder), at or prior to the Closing Date, of the following
additional conditions:</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the representations and warranties of
the Holders contained in this Agreement shall be true and correct in all
material respects;</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Holders shall have
executed and delivered the Registration Rights Agreement Amendment and the
Investors&#146; Agreement Amendment; and</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company and DeCrane
Holdings shall have received all documents reasonably requested by it relating
to the existence of each Holder and the authority for entering into this
Agreement and the consummation of the transactions contemplated hereby, all in
form and substance reasonably satisfactory to it.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article6"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;6</font></a><font style="font-variant:normal;"><br>
<a name="Survival">SURVIVAL</a>; INDEMNIFICATION</font></p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section6_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.01</font></a><i><font style="font-style:italic;">.&#160; Survival.&#160;
</font></i>The representations and warranties of the parties hereto
contained in this Agreement shall survive the execution and delivery of this
Agreement.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section6_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;6.02</font></a><i><font style="font-style:italic;">.&#160; Indemnification.&#160; </font></i>(a) The Company and DeCrane Holdings hereby indemnify,
jointly and severally, each Holder and its affiliates, limited partners,
general partners, directors, members, officers and employees against and agrees
to hold each of them harmless from any and all damage, loss, liability and
expense (including, without limitation, reasonable expenses of investigation
and reasonable attorneys&#146; fees and expenses in connection with any action, suit
or proceeding) (&#147;<b><font style="font-weight:bold;">Damages</font></b>&#148;) incurred or suffered by any such party arising out
of any misrepresentations or breach of warranty, covenant or agreement made or
to be performed by the Company and DeCrane Holdings pursuant to this Agreement.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>After the Closing Date,
this Section&nbsp;6.02 will provide the exclusive remedy for the Holders for
any misrepresentation, breach of warranty, covenant or other agreement or other
claim arising out of this Agreement or the transactions contemplated hereby
except to the extent any such claim is in respect of fraud.&#160; The Company shall retain all remedies
available at law for any misrepresentation, breach of warranty, covenant or
other agreement or other claim arising out of this Agreement or the
transactions contemplated hereby.</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><a name="Article7"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">ARTICLE&nbsp;7</font></a><font style="font-variant:normal;"><br>
<a name="Miscellaneous">MISCELLANEOUS</a></font></p>

<p style="font-variant:small-caps;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;font-variant:normal;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_01"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.01</font></a><i><font style="font-style:italic;">.&#160; Notices.&#160;
</font></i>All notices, requests and other communications to any party
hereunder shall be in writing (including facsimile transmission) and shall be
given,</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if to the Holders, to:</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DLJ Investment Partners II, L.P.<br>
DLJ Investment Partners, L.P.<br>
DLJIP II Holdings, L.P.<br>
11 Madison Avenue <br>
New York, NY 10010<br>
Attention:&#160; Rob Petrini<br>
Facsimile:&#160; (212) 448-3220</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy (which shall not constitute notice to any Holder) to:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cahill Gordon &amp; Reindel LLP<br>
80 Pine Street<br><br></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">New York, NY 10005<br>
Attention:&#160; John Schuster<br>
Facsimile:&#160; (212) 269-5420</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Putnam Investment Management, LLC<br>
Putnam Fiduciary Trust Company<br>
One Post Office Square<br>
Boston, MA 02109<br>
Attention:&#160; Michael DeFao, Senior Vice
President<br>
Facsimile:&#160; (617) 292-1625</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy (which shall not constitute notice to any Holder) to:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ropes &amp; Gray LLP<br>
One International Place<br>
Boston, MA 02110<br>
Attention:&#160; Don De Amicis, Esq.<br>
Facsimile:&#160; (617) 951-7050</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neon Capital Limited<br>
P.O. Box 1984 GT<br>
Elizabethan Square<br>
Georgetown, Grand Cayman<br>
Cayman Islands, British West Indies<br>
Attention:&#160; Neil Ross/Scott Macdonald<br>
Facsimile:&#160; (345) 949-5223</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if to the Company, to:</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DeCrane Aircraft Holdings, Inc.<br>
2361 Rosecrans Avenue, Suite 180<br>
El Segundo, California 90245<br>
Attention:&#160; Chief Financial Officer<br>
Facsimile:&#160; (310) 643-5106</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy (which shall not constitute notice to the Company) to:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Davis Polk &amp; Wardwell<br>
450 Lexington Avenue<br>
New York, New York 10017<br>
Attention:&#160; Nancy L. Sanborn, Esq.<br>
Facsimile:&#160; (212) 450-3800</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if to DeCrane Holdings, to:</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DeCrane Holdings Co.<br>
2361 Rosecrans Avenue, Suite 180<br>
El Segundo, California 90245<br>
Attention:&#160; Chief Financial Officer<br>
Facsimile:&#160; (310) 643-5106</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy (which shall not constitute notice to DeCrane Holdings) to:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Davis Polk &amp; Wardwell<br>
450 Lexington Avenue<br>
New York, New York 10017<br>
Attention:&#160; Nancy L. Sanborn, Esq.<br>
Facsimile:&#160; (212) 450-3800</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5
p.m. in the place of receipt and such day is a business day in the place of
receipt.&#160; Otherwise, any such notice,
request or communication shall be deemed not to have been received until the
next succeeding business day in the place of receipt.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_02"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.02</font></a><i><font style="font-style:italic;">.&#160; No Waivers; Amendments. </font></i>(a)<i><font style="font-style:italic;">  </font></i>No failure or delay on the
part of any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by law.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any provision of this
Agreement may be amended or waived if, but only if, such amendment or waiver is
in writing and is signed by all parties hereto.</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_03"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.03</font></a><i><font style="font-style:italic;">.&#160; Waiver of Warrant Requirements</font></i>.&#160; In connection with the issuance of the
Common Stock, each Holder hereby waives the requirement that notice must be
given to such Holder under Sections (h)(2) and (h)(11) of the Penny Warrants
held by such Holder.&#160; Each such Holder
also hereby waives the requirement that DeCrane Holdings file an officers&#146;
certificate setting forth the adjusted exercise price for the Penny Warrants,
the facts requiring such adjustment and the manner of computing such adjustment
as required pursuant to Section&nbsp;(h)(11) of the Penny Warrants.<i><font style="font-style:italic;">  </font></i>&#160;It is understood and agreed that there shall
be no adjustment to the exercise price of the Penny Warrants in connection with
the issuance of the Common Stock.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_04"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.04</font></a>.&#160; <i><font style="font-style:italic;">Termination. </font></i>(a)<i><font style="font-style:italic;">  </font></i>&#160;This Agreement
shall terminate, prior to the Closing Date:</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>at any time by mutual
written agreement of the Company, DeCrane Holdings and the Holders;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if there shall be any
law or regulation that makes consummation of the transactions contemplated by
this Agreement illegal or otherwise prohibited or if consummation of the
transactions contemplated hereby would violate any non-appealable final order,
decree or judgment of any court or governmental body having competent
jurisdiction, if so determined by the Company, DeCrane Holdings or the Holders;
or</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>on July&nbsp;30, 2004,
unless extended to a later date by an instrument executed by the Company,
DeCrane Holdings and the Holders.</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The party desiring to terminate this Agreement pursuant to 7.04 shall
give notice of such termination to the other parties.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If this Agreement is
terminated as permitted by 7.04, such termination shall be without liability of
any party (or any stockholder, director, officer, employee, agent, consultant
or representative of such party) to the other parties to this Agreement; <i><font style="font-style:italic;">provided</font></i> that if such termination shall
result from the (i) willful failure of any party to fulfill a condition to the
performance of the obligations of the other parties, (ii) failure to perform a
covenant of this Agreement or (iii) breach by any party hereto of any
representation or warranty or agreement contained herein, such party shall be
fully liable for any and all damages incurred or suffered by the other party as
a result of such failure or breach.</p>

<p style="margin:0in 0in .0001pt;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_05"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.05</font></a><i><font style="font-style:italic;">.&#160; Successors And Assigns. </font></i>The
Company or DeCrane Holdings may not assign any of their respective rights and
obligations hereunder without the prior written consent of the Holders.&#160; No Holder may assign any of its rights or
obligations hereunder without the prior written consent of the Company and
DeCrane Holdings.&#160; This Agreement shall
be binding upon the Company, DeCrane Holdings and the Holders and their
respective successors and permitted assigns.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_06"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.06</font></a><i><font style="font-style:italic;">.&#160; Limited Recourse and Non-Petition</font></i>.&#160; Claims against each Holder arising out of
this Agreement shall be limited to the economic value of such Holders&#146; Senior
Preferred Stock and any payments or distributions with respect to such Holder&#146;s
Senior Preferred Stock, and the Company shall have no recourse against the
Holder for any obligation with respect to this Agreement beyond the economic
value of the Senior Preferred Stock and any payments or distributions with
respect to the Senior Preferred Stock, and should the amount of any such
obligation exceed the economic value of such Holder&#146;s Senior Preferred Stock
and such payments or distributions, the Company shall not be entitled to
petition for the dissolution or winding-up of such Holder.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_07"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.07</font></a>.&#160; <i><font style="font-style:italic;">Governing Law. </font></i>This Agreement shall be
governed and construed in accordance with the laws of the State of New York,
without regard to the choice of law rules of such state.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_08"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.08</font></a><i><font style="font-style:italic;">.&#160; Jurisdiction. </font></i>Except as otherwise
expressly provided in this Agreement, the parties hereto agree that any suit,
action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby shall be brought in the United States District Court for
the Southern District of New York or any New York State court sitting in New
York City, so long as one of such courts shall have subject matter jurisdiction
over such suit, action or proceeding, and that any cause of action arising out
of this Agreement shall be deemed to have arisen from a transaction of business
in the State of New York, and each of the parties hereby irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts
therefrom) in any such suit, action or proceeding and irrevocably waives, to
the fullest extent permitted by law, any objection that it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding in any
such court or that any such suit, action or proceeding which is brought in any
such court has been brought in an inconvenient forum.&#160; Process in any such suit, action or proceeding may be served on
any party anywhere in the world, whether within or without the jurisdiction of
any such court.&#160; Without limiting the foregoing,
each party agrees that service of process on such party as provided in this
Section&nbsp;shall be deemed effective service of process on such party.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_09"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.09</font></a><i><font style="font-style:italic;">.&#160; WAIVER OF JURY TRIAL. </font></i>EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_10"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.10</font></a><i><font style="font-style:italic;">.&#160; Counterparts; Effectiveness.&#160; </font></i>This Agreement may be executed in
any number of counterparts each of which shall be an original with the same
effect as if the signatures thereto and hereto were upon the same
instrument.&#160; This Agreement shall become
effective when each party hereto shall have received a counterpart hereof signed
by the other parties hereto.&#160; No provision
of this Agreement is intended to confer upon any person other than the parties
hereto any rights or remedies hereunder</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_11"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.11</font></a><i><font style="font-style:italic;">.&#160; Expenses.&#160;
</font></i>Except as otherwise provided in Article&nbsp;6 herein, all
costs and expenses incurred in connection with this Agreement shall be paid by
the party incurring such cost or expense; <i><font style="font-style:italic;">provided</font></i>  <i><font style="font-style:italic;">however</font></i>, that the Company
shall pay the reasonable fees and expenses of (i) Cahill Gordon &amp; Reindel
LLP, special counsel to certain Holders and (ii) Ropes &amp; Gray LLP, special counsel
to certain other Holders, in each case to the extent incurred in connection
with the negotiation, execution and delivery of this Agreement and the
transactions contemplated hereby; <i><font style="font-style:italic;">provided</font></i>  <i><font style="font-style:italic;">further</font></i> that the fees and
expenses payable by the </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='17',FILE='C:\jms\jgafar\04-11348-1\task194601\11348-1-lg.htm',USER='ssoundarrajan',CD='Oct  9 12:32 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company pursuant to the foregoing proviso
shall not exceed $55,000 with respect to Cahill Gordon &amp; Reindel LLP and
$20,000 with respect to Ropes &amp; Gray LLP.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_12"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.12</font></a><i><font style="font-style:italic;">.&#160; Entire Agreement.&#160; </font></i>This Agreement, the Registration Rights Agreement, the
Investors&#146; Agreement, the Certificate of Designations and the Securities
Purchase Agreement (including without limitation the indemnification provisions
contained therein and the Company&#146;s and DeCrane Holdings&#146; covenants under
Article&nbsp;VI of the Securities Purchase Agreement), which shall survive the
execution and delivery of this Agreement) constitute the entire agreement and
understanding among the parties hereto and supersedes any and all prior
agreements and understandings, written or oral, relating to the subject matter
hereof.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><a name="Section7_13"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;7.13</font></a><i><font style="font-style:italic;">.&#160; Captions; Certain Definitions. </font></i>The
captions herein are included for convenience of reference only and shall be
ignored in the construction or interpretation hereof.&#160; All references to &#147;<b><font style="font-weight:bold;">$</font></b>&#148;
or &#147;<b><font style="font-weight:bold;">dollars</font></b>&#148; shall be to United
States dollars and all references to &#147;<b><font style="font-weight:bold;">days</font></b>&#148;
shall be to calendar days unless otherwise specified.&#160; Whenever the words &#147;<b><font style="font-weight:bold;">include</font></b>,&#148;
&#147;<b><font style="font-weight:bold;">includes</font></b>&#148; or &#147;<b><font style="font-weight:bold;">including</font></b>&#148; are used in this Agreement, they
shall be deemed to be followed by the words, &#147;without limitation.&#148;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[Remainder
of page intentionally left blank; next page is signature page]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='18',FILE='C:\jms\jgafar\04-11348-1\task194601\11348-1-lg.htm',USER='ssoundarrajan',CD='Oct  9 12:32 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b>,
the parties hereto have caused this Senior Preferred Stock Amendment Agreement
to be duly executed by their respective authorized officers as of the day and
year first above written.</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="99%" style="border-collapse:collapse;width:99.46%;">
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="6" valign="top" style="padding:0in .7pt 0in .7pt;width:62.5%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DECRANE AIRCRAFT
  HOLDINGS, INC.</font></b></p>
  </td>
  <td width="0%" colspan="6" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="6" valign="top" style="padding:0in .7pt 0in .7pt;width:62.5%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="6" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:36.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/s/&#160; R. JACK
  DECRANE</font></p>
  </td>
  <td width="21%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:21.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="4" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:58.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; /s/ R. Jack DeCrane</font></p>
  </td>
  <td width="0%" colspan="4" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:58.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&#160; Chief Executive Officer</font></p>
  </td>
  <td width="0%" colspan="4" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:62.62%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="5" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:62.62%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DECRANE HOLDINGS
  CO.</font></b></p>
  </td>
  <td width="0%" colspan="5" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="7" valign="top" style="padding:0in .7pt 0in .7pt;width:62.62%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="5" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="58%" colspan="8" valign="top" style="padding:0in .7pt 0in .7pt;width:58.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/s/&#160; R. JACK
  DECRANE</font></p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:36.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; /s/ R. Jack DeCrane</font></p>
  </td>
  <td width="21%" colspan="5" valign="top" style="padding:0in .7pt 0in .7pt;width:21.7%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="2" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in .7pt 0in .7pt;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="9" valign="top" style="padding:0in .7pt 0in .7pt;width:58.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&#160; Chief Executive
  Officer</font></p>
  </td>
  <td width="0%" colspan="2" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="9" valign="top" style="padding:0in 0in 0in 0in;width:62.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;">&nbsp;</p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="9" valign="top" style="padding:0in 0in 0in 0in;width:62.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DLJ INVESTMENT PARTNERS II, INC. </font></b>on
  behalf of: <br>
  <b><font style="font-weight:bold;">DLJ
  INVESTMENT PARTNERS II, L.P.<br>
  DLJ INVESTMENT PARTNERS, L.P. <br>
  DLJIP II HOLDINGS, L.P.</font></b></p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:58.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:36.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160; /S/&#160; JOHN M. MORIARTY, JR.</font></p>
  </td>
  <td width="21%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:21.82%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:58.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; John M. Moriarty, Jr.</font></p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:58.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&#160; Managing Director</font></p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="8" valign="top" style="padding:0in 0in 0in 0in;width:58.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="3" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="63%" colspan="11" valign="top" style="padding:0in 0in 0in 0in;width:63.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PUTNAM INVESTMENT
  MANAGEMENT, LLC </font></b>on behalf of:<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font style="font-weight:bold;">PUTNAM VARIABLE TRUST- PUTNAM VT HIGH <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YIELD
  FUND</font></b>  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font style="font-weight:bold;">PUTNAM HIGH YIELD TRUST</font></b></p>
  </td>
  <td width="0%" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="10" valign="top" style="padding:0in 0in 0in 0in;width:58.7%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:36.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/s/&#160; MICHAEL E.
  DEFAO</font></p>
  </td>
  <td width="21%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:21.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="10" valign="top" style="padding:0in 0in 0in 0in;width:58.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; Michael E. DeFao</font></p>
  </td>
  <td width="0%" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="58%" colspan="10" valign="top" style="padding:0in 0in 0in 0in;width:58.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&#160; Senior Vice President</font></p>
  </td>
  <td width="0%" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="10" valign="top" style="padding:0in 0in 0in 0in;width:62.86%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="0%" colspan="2" style="border:none;font-size:10.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="10" valign="top" style="padding:0in 0in 0in 0in;width:62.86%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NEON CAPITAL
  LIMITED</font></b></p>
  </td>
  <td width="0%" colspan="2" style="border:none;font-size:1.0pt;padding:0in 0in 0in 0in;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:36.88%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="22%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:22.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:36.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/S/<b><font style="font-weight:bold;">&#160; </font></b>PAUL
  COPE</font></p>
  </td>
  <td width="22%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:22.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; Paul Cope</font></p>
  </td>
  <td width="22%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:22.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="36%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:36.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:&#160; Director</font></p>
  </td>
  <td width="22%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:22.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="264" style="border:none;"></td>
  <td width="31" style="border:none;"></td>
  <td width="263" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="0" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="153" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="0" style="border:none;"></td>
  <td width="0" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="2" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><a name="Schedule1_02"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULE&nbsp;1.02</font></b></a>*</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Holder</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Taxpayer<br>
  Identification<br>
  Number</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Shares of
  Existing<br>
  Preferred Stock<br>
  and Senior<br>
  Preferred Stock</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Shares of<br>
  Common Stock to<br>
  be Issued**</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DLJ Investment Partners II, L.P.</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13-4048184</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">113,651.2</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">158,632</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DLJ Investment Partners, L.P.</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13-3868693</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50,512.0</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">70,504</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DLJIP II Holdings, L.P.</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13-4192504</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35,836.8</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50,020</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Neon Capital Limited</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21,000.0</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29,311</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Putnam High Yield Trust</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">04-6415410</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21,000.0</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29,311</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Putnam Variable Trust &#150; Putnam VT High Yield Fund</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">04-2986135</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8,000.0</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11,167</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" style="padding:0in 0in 0in 0in;width:50.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.1%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:50.68%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Total</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:13.96%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">250,000.0</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in;width:13.78%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">348,945</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#cceeff" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="25%" noshade color="black" align="left">

</font></div>


<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="97%" valign="top" style="padding:0in 0in 0in 0in;width:97.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assumes
  no transfers after the date of this Agreement.</font></p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="97%" valign="top" style="padding:0in 0in 0in 0in;width:97.22%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">**
  </font></p>
  </td>
  <td width="97%" valign="top" style="padding:0in 0in 0in 0in;width:97.22%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Assumes
  348,945 shares of Common Stock is equal to 7.5% of the Common Stock
  outstanding immediately after the Closing (calculated in accordance with
  Section&nbsp;1.02).</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><a name="Schedule3_01"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE&nbsp;3.01</font></b></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Existing Preferred Stock of Neon Capital Limited is subject to a
security agreement granted in favor of the trustee for the Neon Notes.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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