Document:

SENIOR SECURED REVOLVING CREDIT AGREEMENT

                           Dated as of August 31, 2001

                                      among

                         MIDWEST EXPRESS Holdings, INC.,
                                  as Borrower,

                               THE SEVERAL LENDERS
                        FROM TIME TO TIME PARTIES HERETO,

                                       and

                         U.S. BANK National Association,
                            d/b/a FIRSTAR BANK, N.A.

                                    as Agent

<PAGE>
                                TABLE OF CONTENTS

                                                                            Page

SECTION 1   DEFINITIONS.......................................................1

    1.1     Definitions.......................................................1

    1.2     Other Definitional Provisions....................................20

    1.3     Accounting Terms and Determinations..............................21

SECTION 2   CREDIT FACILITIES................................................21

    2.1     Revolving Loans..................................................21

    2.2     Letter of Credit Subfacility.....................................23

    2.3     Swing Line Loans.................................................26

SECTION 3   OTHER PROVISIONS RELATING TO CREDIT FACILITIES...................27

    3.1     Default Rate.....................................................27

    3.2     Extension and Conversion.........................................28

    3.3     Reductions in Commitments and Prepayments........................28

    3.4     Fees ............................................................29

    3.5     Capital Adequacy.................................................30

    3.6     Inability To Determine Interest Rate.............................31

    3.7     Illegality.......................................................31

    3.8     Requirements of Law..............................................31

    3.9     Taxes............................................................33

    3.10    Indemnity........................................................34

    3.11    Pro Rata Treatment...............................................34

    3.12    Sharing of Payments..............................................35

    3.13    Place and Manner of Payments.....................................36

    3.14    Indemnification: Nature of Issuing Lender's Duties...............36

SECTION 4   CONDITIONS.......................................................38

    4.1     Conditions to Closing Date.......................................38

    4.2     Conditions to All Extensions of Credit...........................41

SECTION 5   REPRESENTATIONS AND WARRANTIES...................................41

    5.1     Organization and Qualification...................................41

    5.2     Financial Statements.............................................42

    5.3     Authorization; Enforceability....................................42

                                      -i-
<PAGE>
                                TABLE OF CONTENTS
                                  (continued)

                                                                            Page

    5.4     Absence of Conflicting Obligations...............................42

    5.5     Taxes............................................................42

    5.6     Absence of Litigation............................................43

    5.7     Accuracy of Information..........................................43

    5.8     Title to Property................................................43

    5.9     ERISA............................................................43

    5.10    Fiscal Year......................................................43

    5.11    Compliance With Laws.............................................43

    5.12    Regulation U.....................................................43

    5.13    Subsidiaries.....................................................44

    5.14    Organization and Ownership of Subsidiaries.......................44

    5.15    Full Disclosure..................................................44

    5.16    Absence of Default...............................................44

    5.17    Environmental Matters............................................44

    5.18    Use of Proceeds..................................................45

    5.19    Solvency.........................................................45

    5.20    Holding Company; Investment Company..............................45

SECTION 6   AFFIRMATIVE COVENANTS............................................46

    6.1     Payment..........................................................46

    6.2     Corporate Existence; Properties; Insurance.......................46

    6.3     Licenses.........................................................46

    6.4     Reporting Requirements...........................................46

    6.5     Taxes............................................................47

    6.6     Inspection of Properties and Records.............................47

    6.7     Reference in Financial Statements................................47

    6.8     Compliance with Laws.............................................48

    6.9     Compliance with Agreements.......................................48

    6.10    Notices..........................................................48

    6.11    Leverage Ratio...................................................49

    6.12    Fixed Charge Coverage Ratio......................................49

                                      -ii-
<PAGE>
                                TABLE OF CONTENTS
                                  (continued)

                                                                            Page

    6.13    Net Worth........................................................49

    6.14    Further Assurances...............................................49

SECTION 7   NEGATIVE COVENANTS...............................................50

    7.1     Liens............................................................50

    7.2     Indebtedness.....................................................50

    7.3     Consolidation or Merger..........................................50

    7.4     Disposition of Assets............................................50

    7.5     Sale and Leaseback...............................................51

    7.6     Investments......................................................51

    7.7     Restricted Payments..............................................51

    7.8     Transactions with Affiliates.....................................51

    7.9     Loans and Advances...............................................51

    7.10    Guarantees.......................................................51

    7.11    Subsidiaries.....................................................51

    7.12    Maximum Loan Amount..............................................52

SECTION 8   EVENTS OF DEFAULT................................................52

SECTION 9   AGENCY PROVISIONS................................................55

    9.1     Appointment......................................................55

    9.2     Delegation of Duties.............................................55

    9.3     Exculpatory Provisions...........................................55

    9.4     Reliance on Communications.......................................56

    9.5     Notice of Default................................................56

    9.6     Non-Reliance on Agent and Other Lenders..........................56

    9.7     Indemnification..................................................57

    9.8     Agent in its Individual Capacity.................................57

    9.9     Successor Agent..................................................57

    9.10    Duty of Care.....................................................58

SECTION 10  MISCELLANEOUS....................................................58

    10.1    Amendments, Waivers and Release of Collateral....................58

    10.2    Notices..........................................................59

                                     -iii-
<PAGE>
                                TABLE OF CONTENTS
                                  (continued)

                                                                            Page

    10.3    No Waiver; Cumulative Remedies...................................60

    10.4    Survival of Representations and Warranties.......................60

    10.5    Payment of Expenses and Taxes....................................60

    10.6    Successors and Assigns; Participations; Purchasing Lenders.......61

    10.7    Set-off..........................................................64

    10.8    Disclosure.......................................................64

    10.9    Termination of Existing Credit Agreement.........................64

    10.10   Table of Contents and Section Headings...........................65

    10.11   Counterparts.....................................................65

    10.12   Severability.....................................................65

    10.13   Integration......................................................65

    10.14   Governing Law....................................................65

    10.15   Consent to Jurisdiction and Venue................................65

    10.16   Confidentiality..................................................65

    10.17   Acknowledgments..................................................66

    10.18   Waivers of Jury Trial............................................66

    10.19   Limitation of Liability..........................................66

                                      -iv-
<PAGE>
                    SENIOR SECURED REVOLVING CREDIT AGREEMENT

         THIS SENIOR SECURED REVOLVING CREDIT AGREEMENT, dated as of August 31,
2001 (the "Credit Agreement"), is by and among MIDWEST EXPRESS HOLDINGS, INC.
(the "Borrower"), the several lenders identified on the signature pages hereto
and such other lenders as may from time to time become a party hereto (each a
"Lender" and collectively, the "Lenders"), and U.S. BANK NATIONAL ASSOCIATION,
d/b/a FIRSTAR BANK, N.A., as agent for the Lenders (in such capacity, the
"Agent").

                                 R E C I T A L S

         WHEREAS, the Borrower is party to a Credit Agreement dated September
27, 1995 (as amended by a First Amendment to Credit Agreement dated May 30,
1996, a Second Amendment to Credit Agreement dated April 30, 1997, a Third
Amendment to Credit Agreement dated August 1, 1998 and a Fourth Amendment to
Credit Agreement dated April 18, 2001, the "Existing Credit Agreement"); and

         WHEREAS, the Borrower wishes to terminate the Existing Credit Agreement
and enter into a new credit agreement with the Lenders pursuant to which the
Lenders will provide a total of $55,000,000 in revolving credit facilities for
the purposes hereinafter set forth; and

         WHEREAS, the Lenders have agreed to make the requested credit
facilities available to the Borrower on the terms and conditions hereinafter set
forth.

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                   SECTION 1

                                   DEFINITIONS

         1.1 Definitions. As used in this Credit Agreement, the following terms
shall have the meanings specified below unless the context otherwise requires:

         "AAL Loan" means the outstanding principal balance of the loan
evidenced by the AAL Note.

         "AAL Note" means the Mortgage Note, dated March 26, 1996, issued by
Chocolate Chip Limited Partnership to the order of Aid Association for Lutherans
in the original principal amount of $3,625,000.00, as assumed by Midwest Express
Airlines pursuant to an Assumption Agreement among Chocolate Chip Limited
Partnership, Midwest Express Airlines and Aid Association for Lutherans dated as
of September 2, 1997, in the form provided to the Agent prior to the Closing
Date.

<PAGE>

         "AAL Mortgage and Security Agreement" means the Real Estate Mortgage
and Security Agreement, dated March 26, 1996, between Chocolate Chip Limited
Partnership and Aid Association for Lutherans, as assumed by Midwest Express
Airlines pursuant to an Assumption Agreement among Chocolate Chip Limited
Partnership, Midwest Express Airlines and Aid Association for Lutherans dated as
of September 2, 1997, in the form provided to the Agent prior to the Closing
Date.

         "AAL Reserve" means (i) prior to the date when the Borrower shall have
satisfied each of the requirements set forth in subsection (b) of the third
sentence of Section 6.14, the aggregate amount of the AAL Loan and the AAL
Prepayment Premium, and (ii) on and after the date when the Borrower shall have
satisfied each of the requirements set forth in subsection (b) of the third
sentence of Section 6.14, the amount of $0.00.

         "AAL Prepayment Premium" means as of any date, the amount of the
premium, if any, that would be payable in respect of a prepayment of the AAL
Loan on such date.

         "Affiliate" means, with respect to any Person, any other Person (i)
directly or indirectly controlling or controlled by or under direct or indirect
common control with such Person or (ii) directly or indirectly owning or holding
ten percent (10%) or more of the equity interest in such Person. For purposes of
this definition, "control" when used with respect to any Person means the power
to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "Agent" means Firstar as administrative agent in such capacity
hereunder, and any successors and assigns in such capacity.

         "Aggregate Revolving Committed Amount" means the aggregate amount of
all of the Revolving Commitments in effect from time to time.

         "Aircraft Security Agreement" means that certain Aircraft Security
Agreement, dated as of the Closing Date, among Midwest Express Airlines and the
Agent, as amended or modified from time to time.

         "Applicable Percentage" means, for any day, the rate per annum set
forth opposite the applicable pricing level then in effect as shown on Schedule
2.1(d), it being understood that the Applicable Percentage for (i) Eurodollar
Loans shall be the percentage set forth under the columns "Applicable Percentage
for Eurodollar Loans," (ii) the Letter of Credit Fee shall be the percentage set
forth under the column "Applicable Percentage for Letter of Credit Fee," and
(iii) the Unused Facility Fee shall be the percentage set forth under the column
"Applicable Percentage for Unused Facility Fee." The Applicable Percentage
shall, in each case, be determined and adjusted quarterly by the Agent as soon
as practicable (but in any event within 5 days) after delivery of the annual or
quarterly financial information required by Section 6.4 (each an "Interest
Determination Date") based on the information contained in such financial
information, with the first such determination and adjustment hereunder to be
made upon the Agent's receipt of financial information for the quarter ended
September 30, 2001. Such

                                      -2-
<PAGE>

Applicable Percentage shall be effective from an Interest Determination Date
until the next such Interest Determination Date. The Agent shall determine the
appropriate pricing level promptly upon its receipt of the foregoing financial
information and promptly notify the Borrower and the Lenders of any change
thereof. Such determinations by the Agent shall be conclusive absent manifest
error. The initial Applicable Percentages shall be based on pricing level 3. If
the Borrower fails to deliver timely the financial information required by
Section 6.4, then for the period commencing on the date such information was due
through the date that is five days after the date on which such information is
delivered, the Applicable Percentages shall be based on pricing level 3. The
term "pricing level" shall be as referenced in Schedule 2.1(d).

         "Appraisal Value" means, with respect to Eligible DC-9 Aircraft or
Eligible Other Aircraft, the value established by the appraisal delivered by the
Borrower pursuant to Section 4.1(k).

         "Base Rate" means, for any day, the per annum rate of interest
established from time to time by the Agent at its principal office in
Minneapolis, Minnesota as its prime rate. Any change in the interest rate
resulting from a change in the Base Rate shall become effective as of 12:01 a.m.
(Minneapolis, Minnesota time) of the Business Day on which each change in the
Base Rate is announced by the Agent. The Base Rate is a reference rate used by
the Agent in determining interest rates on certain loans and is not intended to
be the lowest rate of interest charged on any extension of credit to any debtor.

         "Base Rate Loan" means any Loan bearing interest at a rate determined
by reference to the Base Rate.

         "Borrower(s)" is defined in the Preamble.

         "Borrower's Compliance Certificate" means a certificate substantially
in the form of Exhibit 4.1(m) attached hereto.

         "Borrowing Base" means the sum of (i) 51% of Appraisal Value of
Eligible DC-9 Aircraft and (ii) 75% of Appraisal Value of Eligible Other
Aircraft.

         "Borrowing Base Certificate" means a certificate substantially in the
form of Exhibit 4.1(l) attached hereto.

         "Borrowing Date" means in respect of any Loan, the date such Loan is
made.

         "Business" is defined in Section 5.17(b).

         "Business Day" means a day other than a Saturday, Sunday or other day
on which commercial banks in Wisconsin are closed, except that, when used in
connection with a rate determination, borrowing or payment in respect of a
Eurodollar Loan, such day shall also be a day on which dealings between banks
are carried on in U.S. dollar deposits in London, England.

         "Calculation Date" is defined in the definition of Interbank Offered
Rate.

                                      -3-
<PAGE>

         "Capital Expenditures" means all expenditures which in accordance with
GAAP would be classified as capital expenditures, including, without limitation,
Capital Lease Obligations.

         "Capital Lease" means any lease of property, real or personal, the
obligations with respect to which are required to be capitalized on a balance
sheet of the lessee in accordance with GAAP.

         "Capital Lease Obligations" means the capital lease obligations
relating to a Capital Lease determined in accordance with GAAP.

         "Card Processor" means U.S. Bank National Association in its capacity
as "Bank" under the Card Processing Agreement.

         "Card Processing Agreement" means that certain Agreement, having an
effective date of May 6, 1999, between Card Processor and Midwest Express
Airlines, as such Agreement exists on the Closing Date.

         "Closing Date" means the first date on which all of the conditions set
forth in Section 4.1 have been satisfied.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

         "Collateral" means Collateral as defined in any of the Parent Security
Agreement, the Subsidiary Security Agreement, the Aircraft Security Agreement,
the Parent Pledge Agreement, and the Subsidiary Pledge Agreement.

         "Commitment" means the Revolving Commitment and the LOC Commitment,
individually or collectively, as appropriate.

         "Commitment Percentage" means the Revolving Commitment Percentage
and/or the LOC Commitment Percentage, as appropriate.

         "Commitment Transfer Supplement" means a Commitment Transfer
Supplement, substantially in the form of Exhibit 10.6(c).

         "Commonly Controlled Entity" means an entity, whether or not
incorporated, which is under common control with the Borrower within the meaning
of Section 4001 of ERISA or is part of a group which includes the Borrower and
which is treated as a single employer under Section 414 of the Code.

         "Consolidated EBITDAR" means for any period, the aggregate of the sum
of Consolidated Net Income plus Consolidated Interest Expense plus all
provisions for any federal, state or other income taxes for such period plus
depreciation, amortization and other noncash charges for the Borrower on a
consolidated basis for such period plus rental expense for aircraft for such
period, determined in each case in accordance with GAAP applied on a consistent
basis (except the asset impairment charge from June 30, 2001 shall be excluded
from the computation of Consolidated Net Income hereunder). Except as expressly
provided otherwise, the applicable period shall be for the four consecutive
quarters ending as of the date of determination.

                                      -4-
<PAGE>

         "Consolidated Fixed Charges" means for any period, the aggregate of the
sum of Consolidated Interest Expense plus all provisions for any federal, state
or other income taxes for such period plus rental expense for aircraft for such
period plus scheduled amortization of long-term debt for such period plus
dividends on capital stock for such period, determined in each case in
accordance with GAAP applied on a consistent basis.

         "Consolidated Funded Debt" means Funded Debt of the Borrower and its
Subsidiaries on a consolidated basis determined in accordance with GAAP applied
on a consistent basis, minus cash on hand in excess of $10,000,000.

         "Consolidated Interest Expense" means for any period, all interest
expense, including the amortization of debt discount and premium, the interest
and principal component under Capital Leases for the Borrower and its
Subsidiaries for such period on a consolidated basis determined in accordance
with GAAP applied on a consistent basis. The applicable period shall be for the
four consecutive quarters ending as of the last date of such period.

         "Consolidated Net Income" means for any period, the net income of the
Borrower and its Subsidiaries on a consolidated basis determined in accordance
with GAAP applied on a consistent basis. The applicable period shall be for the
four consecutive quarters ending on the date of computation, unless otherwise
expressly stated herein.

         "Credit Documents" means this Credit Agreement, the Notes, the
Guaranty, the Parent Security Agreement, the Subsidiary Security Agreement, the
Aircraft Security Agreement, the Parent Pledge Agreement, the Subsidiary Pledge
Agreement, any Letter of Credit Document, and all other related agreements and
documents issued or delivered hereunder or thereunder or pursuant hereto or
thereto.

         "Customer" means and includes the account debtor with respect to any of
the accounts receivables or the prospective purchaser with respect to any
contract right or any party who enters into or proposes to enter into any
contract or other arrangement with the Borrower, pursuant to which the Borrower
is to deliver any personal property or perform any services.

         "Default" means any event, act or condition which with notice or lapse
of time, or both, would constitute an Event of Default.

         "Defaulting Lender" means at any time, any Lender that, at such time
(a) has failed to make a Loan or advance required pursuant to the terms of this
Credit Agreement, including the funding of a Participation Interest in
accordance with the terms hereof, (b) has failed to pay to the Agent or any
Lender an amount in excess of $50,000 owed by such Lender pursuant to the terms
of this Credit Agreement within 10 days after written demand therefor is made to
such Lender , or (c) has been deemed insolvent or has become subject to a
bankruptcy or insolvency proceeding or to a receiver, trustee or similar
official.

         "Dollars" and "$" means dollars in lawful currency of the United States
of America.

                                      -5-
<PAGE>

         "Domestic Lending Office" means the office or branch of the Lender
identified on Schedule 10.2, or such other office or branch as the Lender may
identify by written notice to the Borrower and the Agent.

         "Eligible DC-9 Aircraft" means McDonnell Douglas DC-9 series 10 and
DC-9 series 30 aircraft and engines listed on Schedule 1.1 that meet these
specifications:

                  (i) it is owned by one or more of the Borrower and the
         Guarantors free of all Liens (other than the Lien of the Agent for the
         benefit of the Lenders and any Lien permitted by subsections (iii),
         (iv) and (xiii) of the definition of "Permitted Liens");

                  (ii) no FAA filing is on file covering its products or
         proceeds (other than those of the Agent for the benefit of the Lenders
         and those permitted by subsections (iii), (iv) and (xiii) of the
         definition of "Permitted Liens");

                  (iii) it is in good condition;

                  (iv) the Agent shall have a first priority perfected Lien
         thereon for the benefit of the Lenders; and

         "Eligible Other Aircraft" means aircraft and engines listed on Schedule
1.1 other than Eligible DC-9 Aircraft that meet these specifications:

                  (i) it is owned by one or more of the Borrower and the
         Guarantors free of all Liens (other than the Lien of the Agent for the
         benefit of the Lenders and any Lien permitted by subsections (iii),
         (iv) and (xiii) of the definition of "Permitted Liens");

                  (ii) no FAA filing is on file covering its products or
         proceeds (other than those of the Agent for the benefit of the Lenders
         and those permitted by subsections (iii), (iv) and (xiii) of the
         definition of "Permitted Liens");

                  (iii) it is in good condition;

                  (iv) the Agent shall have a first priority perfected Lien
         thereon for the benefit of the Lenders; and

         "Eligible Transferee" means and includes a commercial bank, financial
institution or other "accredited investor" as defined in Regulation D of the
Securities Act of 1933, (as amended).

         "Environmental Laws" means any and all applicable foreign, federal,
state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority (or other
Requirement of Law including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of human health or the
environment, as now or may at any time be in effect during the term of this
Credit Agreement.

                                      -6-
<PAGE>

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the regulations promulgated and the rulings
issued thereunder.

         "Eurodollar Lending Office" means the office or branch of the Lender
identified on Schedule 10.2, or such other office or branch as the Lender may
identify by written notice to the Borrower and the Agent.

         "Eurodollar Loan" means any Loan bearing interest at a rate determined
by reference to the Eurodollar Rate.

         "Eurodollar Rate" means, for the Interest Period for each Eurodollar
Loan comprising part of the same borrowing (including conversions, extensions
and renewals), a per annum interest rate established by the Agent determined
pursuant to the following formula:

                  Eurodollar Rate  =    Interbank Offered Rate
                                    ---------------------------------------
                                        1 - Eurodollar Reserve Percentage

         "Eurodollar Reserve Percentage" means for any day, that percentage
(expressed as a decimal) which is in effect from time to time under Regulation D
of the Board of Governors of the Federal Reserve System (or any successor), as
such regulation may be amended from time to time or any successor regulation, as
the maximum reserve requirement (including, without limitation, any basic,
supplemental, emergency, special, or marginal reserves) applicable with respect
to Eurocurrency liabilities as that term is defined in Regulation D or against
any other category of liabilities that includes deposits by reference to which
the interest rate of Eurodollar Loans is determined, whether or not a Lender has
any Eurocurrency liabilities subject to such reserve requirement at that time.
Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and as
such shall be deemed subject to reserve requirements without benefit of credits
for proration, exceptions or offsets that may be available from time to time to
a Lender. The Eurodollar Rate shall be adjusted automatically on and as of the
effective date of any change in the Eurodollar Reserve Percentage.

         "Event of Default" is defined in Section 8.

         "Existing Credit Agreement" is defined in the Preamble.

         "Existing Letters of Credit" means those letters of credit issued by
Firstar Bank, N.A. which are outstanding on the Closing Date and which are
identified on Schedule 1.2.

         "Extension of Credit" means as to any Lender, the making of a Loan by
such Lender or the issuance of, or participation in, a Letter of Credit by such
Lender.

         "Federal Funds Rate" means, for any day, the rate of interest per annum
(rounded upwards, if necessary, to the nearest whole multiple of 1/100 of 1%)
equal to the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day, provided that (A) if such day is
not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day and (B) if no such rate is
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate quoted to the Agent on such day on such
transactions as determined by the Agent.

                                      -7-
<PAGE>

         "Fee" means any fee payable pursuant to Section 3.4.

         "Firstar" means U.S. Bank National Association, d/b/a Firstar Bank,
N.A.

         "Fixed Charge Coverage Ratio" means, as of the last day of any fiscal
quarter, the ratio of Consolidated EBITDAR to Consolidated Fixed Charges for the
period of four consecutive fiscal quarters ending as of such day.

         "Foreign Lender" means any Lender that is not organized under the laws
of the United States of America or a state thereof.

         "Fronting Fee" is defined in Section 3.4(a).

         "Funded Debt" means, for any Person, without duplication, (i) all
Indebtedness of such Person for borrowed money (including without limitation,
Indebtedness evidenced by promissory notes, bonds, debentures and similar
interest-bearing instruments), (ii) all purchase money Indebtedness of such
Person, (iii) the principal portion of Capital Lease Obligations, (iv) the LOC
Obligations and (v) the product of all rental expense for aircraft for the
twelve-month period ending on the date of any computation of Funded Debt
multiplied by six.

         "GAAP" means generally accepted accounting principles in effect in the
United States of America applied on a consistent basis.

         "Government Acts" is defined in Section 3.14(a).

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

         "Guarantee Obligation" means any and all debts, obligations, and
liabilities of a guarantor to any Person heretofore, now, or hereafter made,
incurred, or created, whether voluntary or involuntary and however arising,
whether due or not due, absolute or contingent, liquidated or unliquidated,
determined or undetermined, secured or unsecured, whether the guarantor is
liable individually or jointly with others, whether for principal, interest or
other debts, obligations or liabilities, and whether or not any or all such
debts, obligations and liabilities are or become barred by the statute of
limitations or otherwise unenforceable; provided, however, that the term
Guarantee Obligation shall not include endorsements of instruments for deposit
or collection in the ordinary course of business.

         "Guarantor" and "Guarantors" means all of the Subsidiaries of the
Borrower, individually or collectively, as appropriate.

                                      -8-
<PAGE>

         "Guaranty" means a guaranty executed by each of the Guarantors in favor
of the Agent for the benefit of the Lenders substantially in the form of Exhibit
4.1(a)(ix) attached to this Credit Agreement, as amended, supplemented or
otherwise modified from time to time.

         "Indebtedness" means, of any Person at any date, (a) all indebtedness
of such Person for borrowed money or for the deferred purchase price of property
or services other than trade liabilities incurred in the ordinary course of
business and not restructured thereafter for credit reasons, (b) any other
indebtedness of such Person which is evidenced by a note, bond, debenture or
similar instrument, (c) all obligations of such Person under Capital Leases, (d)
all obligations of such Person in respect of acceptances issued or created for
the account of such Person, (e) all liabilities secured by any Lien on any
property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof, (f) all obligations of such
Person under conditional sale or other title retention agreements relating to
property purchased by such Person other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary
course of business), (g) all obligations of such Person under take-or-pay or
similar arrangements or under commodities agreements, (h) all Guarantee
Obligations of such Person, (i) all obligations of such Person in respect of
interest rate protection agreements, foreign currency exchange agreements,
commodity purchase or option agreements or other interest or exchange rate or
commodity price hedging agreements, (j) the maximum amount of all letters of
credit issued or bankers' acceptances created for the account of such Person
and, without duplication, all drafts drawn thereunder to the extent not
theretofore reimbursed, (k) all preferred stock issued by such Person and
required by the terms thereof to be redeemed, or for which mandatory sinking
fund payments are due, by a fixed date, (l) all other obligations which would be
shown as a liability on the balance sheet of such Person, and (m) the
outstanding balance of the purchase price of uncollected accounts receivable of
such Person subject at such time to a sale of receivables or other similar
transaction, regardless of whether such transaction is effected without recourse
to such Person or in a manner which would not be reflected on the balance sheet
of such Person in accordance with GAAP; but specifically excluding from the
foregoing (x) trade payables, (y) obligations for advances by customers for the
purchase of goods or services from such Person, and (z) other obligations,
expenses and reserves (whether classified as long term or short term) arising or
incurred in the ordinary course of business. For purposes hereof, Indebtedness
shall include Indebtedness of any partnership in which such Person is a general
partner (except for any such Indebtedness with respect to which the holder is
limited to the assets of such partnership or joint venture).

         "Indemnified Liabilities" is defined in Section 10.5.

         "Information" is defined in Section 10.15.

         "Insolvency" means with respect to any Multiemployer Plan, the
condition that such Plan is insolvent within the meaning of such term as used in
Section 4245 of ERISA.

         "Insolvent" means pertaining to a condition of Insolvency.

         "Interbank Offered Rate" means, with respect to any Eurodollar Loan for
the Interest Period applicable thereto, the per annum rate of interest
determined by the Agent (each such

                                      -9-
<PAGE>

determination to be conclusive and binding absent manifest error) to be the
average (rounded up, if necessary, to the nearest one-sixteenth (1/16) of one
percent) of the offered rates for deposits in U.S. dollars for the applicable
Interest Period which appear on the Reuters Screen LIBOR Page (or such other
page on which the appropriate information may be displayed), on the electronic
communications terminals in the Agent's money center as of 11:00 a.m. (London
time) two Business Days prior to the first day of such Interest Period (the
"Calculation Date"), except as provided below. If fewer than two offered rates
appear for the applicable Interest Period or if the appropriate screen is not
accessible as of such time, the term "Interbank Offered Rate" shall mean the per
annum rate of interest determined by the Agent (each such determination to be
conclusive and binding absent manifest error) to be the average (rounded up, if
necessary, to the nearest one-sixteenth (1/16) of one percent) as the effective
rate at which deposits in immediately available funds in Dollars are being, have
been, or would be offered or quoted by major banks to the Agent in the
applicable interbank market for Eurodollar deposits at 11:00 a.m. (Milwaukee,
Wisconsin time) on the Business Day which is the second Business Day immediately
preceding the first day of such Interest Period, for a term comparable to such
Interest Period and in the amount of the requested Eurodollar Loan. If no such
offers or quotes are generally available for such amount, then the provisions of
Section 3.6 shall apply.

         "Interest Payment Date" means (a) as to any Base Rate Loan, the last
day of each quarter and the Revolving Termination Date, (b) as to any Eurodollar
Loan having an Interest Period of three months or less, the last day of such
Interest Period, and (c) as to any Eurodollar Loan having an Interest Period of
more than three months, the day which is three months after the first day of
such Interest Period and the last day of such Interest Period. Whenever any
Interest Payment Date shall be stated to be due on a day which is not a Business
Day, the due date thereof shall be extended to the next succeeding Business Day
(subject to accrual of interest and Fees for the period of such extension),
except that in the case of Eurodollar Loans, if the extension would cause the
payment to be made in the next following calendar month, then such payment shall
instead be made on the next preceding Business Day as provided in Section 3.13.

         "Interest Period" means with respect to any Eurodollar Loan,

                  (i) initially, the period commencing on the Borrowing Date or
         conversion date, as the case may be, with respect to such Eurodollar
         Loan and ending one, two, three or six months thereafter, as selected
         by the Borrower in the notice of borrowing or notice of conversion
         given with respect thereto; and

                  (ii) thereafter, each period commencing on the last day of the
         immediately preceding Interest Period applicable to such Eurodollar
         Loan and ending one, two, three or six months thereafter, as selected
         by the Borrower by irrevocable notice to the Agent not less than three
         Business Days prior to the last day of the then current Interest Period
         with respect thereto;

         provided that the foregoing provisions are subject to the following:

                  (A) if any Interest Period pertaining to a Eurodollar Loan
         would otherwise end on a day that is not a Business Day, such Interest
         Period shall be extended to the next

                                      -10-
<PAGE>

         succeeding Business Day unless the result of such extension would be to
         carry such Interest Period into another calendar month in which event
         such Interest Period shall end on the immediately preceding Business
         Day;

                  (B) any Interest Period pertaining to a Eurodollar Loan that
         begins on the last Business Day of a calendar month (or on a day for
         which there is no numerically corresponding day in the calendar month
         at the end of such Interest Period) shall end on the last Business Day
         of the relevant calendar month;

                  (C) if the Borrower shall fail to give notice as provided
         above, the Borrower shall be deemed to have selected a Base Rate Loan
         to replace the affected Eurodollar Loan; and

                  (D) any Interest Period that would otherwise extend beyond the
         Revolving Termination Date shall end on the Revolving Termination Date.

         "Inventory" is defined in the Security Agreement.

         "Investment" means any expenditures made and any liabilities incurred
(contingently or otherwise) for the acquisition of stock or Indebtedness of, or
for loans, advances, capital contributions or transfers of property to, or in
respect of any Guarantee Obligation (or other commitments as described under
Indebtedness), any Person. In determining the aggregate amount of Investments
outstanding at any particular time: (i) the amount of any Investment represented
by a Guarantee Obligation shall be taken at not less than the principal amount
of the obligations guaranteed and still outstanding; (ii) there shall be
included as an Investment all interest accrued with respect to Indebtedness
constituting an Investment unless and until such interest is paid; (iii) there
shall be deducted in respect of each such Investment any amount received as a
return of capital (but only by repurchase, redemption, retirement, repayment,
liquidating dividend or liquidating distribution); (iv) there shall not be
deducted in respect of any Investment any amounts received as earnings on such
Investment, whether as dividends, interest or otherwise, except that accrued
interest included as provided in the foregoing clause (ii) may be deducted when
paid; and (v) there shall not be deducted from the aggregate amount of
Investments any decrease in the value thereof.

         "Issuing Lender" means Firstar.

         "Lenders" means each of the Persons identified as a "Lender" on the
signature pages hereto, and each Person which may become a Lender by way of
assignment in accordance with the terms hereof, together with their successors
and permitted assigns.

         "Letter of Credit" means any Existing Letter of Credit and any letter
of credit issued for the account of the Borrower by an Issuing Lender as
provided in Section 2.2, as such letter of credit may be amended, supplemented,
extended or otherwise modified from time to time.

         "Letter of Credit Fee" is defined in Section 3.4(a).

                                      -11-
<PAGE>

         "Leverage Ratio" means, as of the last day of any fiscal quarter, the
ratio of Consolidated Funded Debt on such day to Consolidated EBITDAR for the
period of four consecutive fiscal quarters ending as of such day.

         "Lien" means any mortgage, pledge, hypothecation, assignment for
security purposes, security interest, encumbrance, lien (statutory or otherwise)
or charge of any kind including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, any financing or similar
statement or notice filed under the Uniform Commercial Code as adopted and in
effect in the relevant jurisdiction (or other similar recording or notice
statute, and any lease in the nature thereof), except a filing for precautionary
purposes made with respect to a true lease or other true bailment.

         "Loan" means a Revolving Loan or a Swing Line Loan. A Loan may be a
Base Rate Loan or a Eurodollar Loan (each a "Type" of Loan).

         "LOC Commitment" means the commitment of the Issuing Lender to issue
Letters of Credit and with respect to each Lender, the commitment of such Lender
to purchase participation interests in the Letters of Credit up to such Lender's
LOC Committed Amount as specified in Schedule 2.1(a) (subject to adjustment on
account of assignment pursuant to the provisions of Section 10.6(c) hereof), as
such amount may be reduced from time to time in accordance with the provisions
hereof.

         "LOC Commitment Percentage" means for each Lender, the percentage
identified as its LOC Commitment Percentage on Schedule 2.1(a), as such
percentage may be modified in connection with any assignment made in accordance
with the provisions of Section 10.6(c).

         "LOC Committed Amount" means, collectively, the aggregate amount of all
of the LOC Commitments of the Lenders to issue and participate in Letters of
Credit as referenced in Section 2.2(a) and, individually, the amount of each
Lender's LOC Commitment as specified in Schedule 2.1(a) (subject to adjustment
on account of assignment pursuant to the provisions of Section 10.6(c) hereof).

         "LOC Documents" means with respect to any Letter of Credit, such Letter
of Credit, any amendments thereto, any documents delivered in connection
therewith, any application therefor, and any agreements, instruments, guarantees
or other documents (whether general in application or applicable only to such
Letter of Credit) governing or providing for (i) the rights and obligations of
the parties concerned or (ii) any collateral security for such obligations.

         "LOC Obligations" means, at any time, the sum of (i) the maximum amount
which is, or at any time thereafter may become, available to be drawn under
Letters of Credit then outstanding, assuming compliance with all requirements
for drawings referred to in such Letters of Credit plus (ii) the aggregate
amount of all payments made, or drafts accepted for subsequent payments to be
made, under Letters of Credit honored by the Issuing Lender but not theretofore
reimbursed.

         "Mandatory Borrowing" is defined in Section 2.2(e).

                                      -12-
<PAGE>

         "Material Adverse Effect" means a material adverse effect on (a) the
business, operations, property or condition (financial or otherwise) of the
Borrower and the Guarantors taken as a whole, (b) the ability of the Borrower or
any Guarantor to perform its respective obligations, when such obligations are
required to be performed, under this Credit Agreement or any of the other Credit
Documents or (c) the validity or enforceability of this Credit Agreement, any of
the Notes or any of the other Credit Documents or the rights or remedies of the
Agent or the Lenders hereunder or thereunder.

         "Materials of Environmental Concern" means any gasoline or petroleum
(including crude oil or any fraction thereof) or petroleum products or any
hazardous or toxic substances, materials or wastes, defined or regulated as such
in or under any Environmental Law, including, without limitation, asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation.

         "Midwest Express Airlines" means Midwest Express Airlines, Inc., a
Wisconsin corporation.

         "Multiemployer Plan" means a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

         "Net Worth" means total shareholders' equity determined in accordance
with GAAP.

         "Note" and "Notes" means the Revolving Notes, individually or
collectively, as appropriate.

         "Notice of Borrowing" means the written notice of borrowing as
referenced and defined in Section 2.1(b)(i).

         "Notice of Extension/Conversion" means the written notice of extension
or conversion as referenced and defined in Section 3.2.

         "Obligations" means, without duplication, all of the obligations of the
Borrower to the Lenders, the Agent and the Issuing Lender (including the
obligations to pay principal of and interest on the Loans, to pay LOC
Obligations, to pay all Fees, to provide cash collateral in respect of Letters
of Credit, and to pay certain expenses and the obligations arising in connection
with various indemnities) whenever arising, under this Credit Agreement, the
Notes or any other of the Credit Documents to which one or more of the Borrower
or the Guarantors is a party.

         "Parent Pledge Agreement" means that certain Parent Pledge Agreement,
dated as of the Closing Date, among the Borrower and the Agent, as amended or
modified from time to time.

         "Parent Security Agreement" means that certain Parent Security
Agreement, dated as of the Closing Date, among the Borrower and the Agent, as
amended or modified from time to time.

         "Participant" and "Participants" are defined in Section 10.6.

         "Participation Interest" means the purchase by a Lender of a
participation interest in Letters of Credit as provided in Section 2.2.

                                      -13-
<PAGE>

         "PBGC" means the Pension Benefit Guaranty Corporation established under
ERISA, and any successor thereto.

         "Permitted Indebtedness" means

                  (i) Indebtedness to any Lender or to Agent under this Credit
         Agreement;

                  (ii) unsecured accounts payable and other unsecured
         obligations incurred in the ordinary course of business of such
         Borrower or Guarantor and not as a result of any borrowing;

                  (iii) Indebtedness incurred in the ordinary course of business
         and arising out of the lease or purchase of goods constituting
         equipment (including Indebtedness arising from the financing of
         aircraft purchased after the Closing Date with cash and subsequently
         financed) and either unsecured or secured only by a security interest
         in such equipment (including sale and leaseback transactions permitted
         by Section 7.5), the principal amount of which Indebtedness at the time
         of incurrence shall not exceed the subject equipment's then current
         appraised value;

                  (iv) Indebtedness incurred in the ordinary course of business
         and arising out of the refinancing of indebtedness permitted in the
         foregoing subsection (iii), provided that: (A) the principal amount of
         indebtedness being refinanced does not exceed the subject equipment's
         then current appraised value, and (B) any such refinancing does not
         increase the principal amount of indebtedness outstanding with respect
         to the equipment being refinanced;

                  (v) the Existing Letters of Credit;

                  (vi) Indebtedness and other obligations arising out of
         agreements with recognized financial institutions for the processing of
         credit card receivables in the ordinary course of business for the
         benefit of the Borrower or any Guarantor;

                  (vii) Indebtedness of the Borrower to a Guarantor, of a
         Guarantor to the Borrower, or one Guarantor to another Guarantor,
         provided that such Indebtedness shall have been incurred in the
         ordinary course of business and consistent with such parties' historic
         practices;

                  (viii) existing Indebtedness outstanding on June 30, 2001, and
         shown on the Borrower's unaudited consolidated balance sheet dated June
         30, 2001, as delivered to the Lenders prior to the Closing Date,
         provided that such Indebtedness shall not be increased;

                  (ix) Guarantee Obligations of the Borrower for debts,
         obligations or liabilities of a Guarantor permitted under this Credit
         Agreement;

                  (x) Guarantee Obligations of a Guarantor for debts,
         obligations or liabilities of the Borrower or another Guarantor
         permitted under this Credit Agreement;

                                      -14-
<PAGE>

                  (xi) other Indebtedness not exceeding $1,000,000 in aggregate
         principal amount at any time outstanding.

         "Permitted Investments" means

                  (i) Investments in commercial bank accounts and certificates
         of deposit at United States banks having total assets in excess of
         $1,000,000,000;

                  (ii) Investments in commercial bank accounts and certificates
         of deposit at United States banks having total assets not in excess of
         $1,000,000,000, up to a maximum aggregate amount for all such
         Investments of $750,000;

                  (iii) Investments in prime commercial paper, rated either P-1
         by Moody's Investors Service or A-1 by Standard & Poor's Corporation,
         maturing within ninety (90) days of the date of acquisition;

                  (iv) Investments in obligations of a governmental body, rated
         "A" or better, maturing within one year of the date of acquisition;

                  (v) Investments in repurchase agreements at United States
         banks or recognized United States securities dealers having total
         capital and surplus in excess of $1,000,000,000 for direct obligations
         issued by or fully guaranteed by the United States of America in which
         the Borrower shall have a perfected first priority security interest
         (subject to no other Liens) and having, on the date of purchase
         thereof, a fair market value of at least 100% of the amount of the
         repurchase obligations;

                  (vi) endorsement of instruments for deposit or collection in
         the ordinary course of business;

                  (vii) investments by the Borrower in a Guarantor or by a
         Guarantor in the Borrower or in another Guarantor made in the ordinary
         course of business and consistent with such parties' historic
         practices;

                  (viii) investments in the Goldman Sachs Financial Square Money
         Market Fund and the Goldman Sachs Financial Square Treasury Obligations
         Fund.

         "Permitted Liens" means

                  (i) Liens created by or otherwise existing, under or in
         connection with this Credit Agreement or the other Credit Documents in
         favor of the Agent for the benefit of the Lenders;

                  (ii) Liens (or precautionary Liens in respect of leased
         equipment) securing indebtedness or lease financings (and refinancings
         thereof) to the extent permitted under subsection (iii) or subsection
         (iv) of the definition of "Permitted Indebtedness";

                                      -15-
<PAGE>

                  (iii) Liens for taxes, assessments, charges or other
         governmental levies not yet due or as to which the period of grace, if
         any, related thereto has not expired or which are being contested in
         good faith by appropriate proceedings, provided that adequate reserves
         with respect thereto are maintained on the books of the Borrower in
         conformity with GAAP;

                  (iv) carriers', warehousemen's, mechanics', materialmen's,
         repairmen's or other like Liens arising in the ordinary course of
         business which are not overdue for a period of more than 60 days or
         which are being contested in good faith by appropriate proceedings,
         provided that adequate reserves with respect thereto are maintained on
         the books of the Borrower in conformity with GAAP;

                  (v) pledges or deposits in connection with workers
         compensation, unemployment insurance and other social security
         legislation and deposits securing liability to insurance carriers under
         insurance or self-insurance arrangements;

                  (vi) deposits to secure the performance of bids, trade
         contracts, (other than for borrowed money), leases, statutory
         obligations, surety and appeal bonds, performance bonds and other
         obligations of a like nature incurred in the ordinary course of
         business;

                  (vii) easements, rights of way, restrictions and other similar
         encumbrances incurred in the ordinary course of business which, in the
         aggregate, are not material in amount and which do not in any case
         materially detract from the value of the property subject thereto or
         materially interfere with the ordinary conduct of the business of the
         applicable Borrower;

                  (viii) Liens in the nature of licenses that arise in the
         ordinary course of business and consistent with past practice;

                  (ix) leases and subleases otherwise permitted hereunder
         granted to others not interfering in any material respect in the
         business of the applicable Borrower;

                  (x) attachment or judgment Liens, where the attachment or
         judgment which gave rise to such Liens does not constitute an Event of
         Default hereunder;

                  (xi) Liens in favor of an Issuing Lender under any LOC
         Documents, but only (A) to the extent such Liens secure LOC Obligations
         permitted under Section 2.2, and (B) to the extent such Liens are on
         collateral in the possession of such Issuing Lender;

                  (xii) Liens existing on the Closing Date and identified on
         Schedule 1.3, provided that such Liens shall not be renewed or extended
         to cover any other collateral;

                  (xiii) Liens in favor of recognized financial institutions
         securing Indebtedness and other obligations to the extent permitted
         under subsection (vi) of the definition of "Permitted Indebtedness"
         provided that such Liens (other than Liens and rights of setoff or
         recoupment in favor of any such financial institution with respect to

                                      -16-
<PAGE>

         funds paid to it by a card association and held by such financial
         institution and not remitted to the Borrower or any Subsidiary and
         Liens in favor of any such financial institution in the rights of the
         Borrower or any Subsidiary, if any, in credit card transactions
         submitted to such financial institution with respect to which no
         payment has been made by a card association) are junior in priority to
         the Liens of the Agent for the benefit of the Lenders under the Credit
         Documents and each such financial institution has entered into an
         intercreditor agreement with the Agent for the benefit of the Lenders
         relating thereto that is satisfactory in form and substance to the
         Agent and the Required Lenders.

         "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other enterprise
(whether or not incorporated) or any Governmental Authority.

         "Plan" means at any particular time, any employee benefit plan which is
covered by Title IV of ERISA and in respect of which the Borrower or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would under
Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5)
of ERISA.

         "Pledge Agreement" means that certain Pledge Agreement, dated as of the
Closing Date, among the Borrower, certain Subsidiaries of the Borrower and the
Agent, as amended or modified from time to time.

         "Prohibited Transaction" has the meaning set forth in Section 406 of
ERISA.

         "Properties" is defined in subsection 5.17(a).

         "Purchasing Lender" is defined in Section 10.6(c).

         "Register" is defined in Section 10.6(d).

         "Reorganization" means with respect to any Multiemployer Plan, the
condition that such Plan is in reorganization within the meaning of such term as
used in Section 4241 of ERISA.

         "Replacement Card Processor" means a recognized financial institution
that shall have agreed, pursuant to a Replacement Card Processing Agreement, to
provide card processing services for Midwest Express Airlines.

         "Replacement Card Processing Agreement" means (i) the Card Processing
Agreement, after giving effect to any amendment, modification or restatement
thereof after the Closing Date, but only if it does not establish or otherwise
allow or cause to be made or exist any Deposit or Reserved Funds (as defined in
the Card Processing Agreement on the Closing Date) or any other holdback, escrow
or similar reserve of funds (provided, however, any such amendment may include
provisions that establish in the future or allow to be established in the
future, upon the occurrence of one or more specified contingencies, a Deposit or
Reserved Funds or other holdback, escrow or similar reserve of funds), or (ii)
any new agreement between a Replacement Card Processor and Midwest Express
Airlines to provide card processing services for Midwest

                                      -17-
<PAGE>

Express Airlines substantially comparable to the services provided by the Card
Processor under the Card Processing Agreement, containing terms and conditions
substantially comparable to those set forth in the Card Processing Agreement,
but in any event only if it does not establish or otherwise allow or cause to be
made or exist a Deposit or Reserved Funds or any other holdback, escrow or
similar reserve of funds (provided, however, any such new agreement may include
provisions that establish in the future or allow to be established in the
future, upon the occurrence of one or more specified contingencies, a Deposit or
Reserved Funds or other holdback, escrow or similar reserve of funds).

         "Reportable Event" means any of the events set forth in Section 4043(b)
of ERISA, other than those events as to which the thirty-day notice period is
waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg. ss.2615.

         "Required Lenders" means Lenders holding in the aggregate at least 51%
of the sum of (i) all Obligations then outstanding at such time and (ii) the
aggregate unused Commitments at such time (treating for purposes hereof in the
case of LOC Obligations and the Issuing Lender, only the portion of the LOC
Obligations of the Issuing Lender which is not subject to the Participation
Interests of the other Lenders and, in the case of the Lenders other than the
Issuing Lender, the Participation Interests of such Lenders in LOC Obligations
hereunder as direct Obligations); provided, however, that if any Lender shall be
a Defaulting Lender at such time, then there shall be excluded from the
determination of Required Lenders the Obligations (including Participation
Interests) of such Defaulting Lender and such Defaulting Lender's Commitments,
or after termination of the Commitments, the principal balance of the
Obligations owing to such Defaulting Lender.

         "Requirement of Law" means, as to any Person, the certificate of
incorporation and by-laws or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or to which any of its material property is
subject.

         "Revolving Commitment" means with respect to each Lender, the
commitment of such Lender to make Revolving Loans in an aggregate principal
amount at any time outstanding up to such Lender's Revolving Committed Amount as
specified in Schedule 2.1(a) (subject to adjustment on account of assignment
pursuant to the provisions of Section 10.6(c) hereof), as such amount may be
reduced from time to time in accordance with the provisions hereof.

         "Revolving Commitment Percentage" means for each Lender, the percentage
identified as its Revolving Commitment Percentage on Schedule 2.1(a), as such
percentage may be modified in connection with any assignment made in accordance
with the provisions of Section 10.6(c).

         "Revolving Commitment Period" means the period from and including the
Closing Date to but not including the Revolving Termination Date.

         "Revolving Committed Amount" means collectively, the aggregate amount
of all of the Revolving Commitments as referenced in Section 2.1(a) and,
individually, the amount of each

                                      -18-
<PAGE>

Lender's Revolving Commitment as specified in Schedule 2.1(a), subject to
adjustment on account of assignment pursuant to the provisions of Section
10.6(c).

         "Revolving Loans" is defined in Section 2.1.

         "Revolving Note" or "Revolving Notes" means the promissory notes of the
Borrower in favor of each of the Lenders evidencing the Revolving Loans provided
pursuant to Section 2.1(e), individually or collectively, as appropriate, as
such promissory notes may be amended, modified, supplemented, extended, renewed
or replaced from time to time.

         "Revolving Termination Date" means the date that is 364 days after the
date of this Credit Agreement, or the earlier termination in full of the
Revolving Commitments pursuant to this Credit Agreement.

         "Services-Kansas City" means Midwest Express Services-Kansas City,
Inc., a Missouri corporation.

         "Single Employer Plan" means any Plan which is not a Multi-Employer
Plan.

         "Solvent" means, with respect to the Borrower as of a particular date,
that on such date (i) the Borrower is able to realize upon its assets and pay
its debts and other liabilities, contingent obligations and other commitments as
they mature in the normal course of business, (ii) the Borrower does not intend
to, and does not believe that it will, incur debts or liabilities beyond the
Borrower's ability to pay as such debts and liabilities mature in their ordinary
course, (iii) the Borrower is not engaged in a business or a transaction, and is
not about to engage in a business or a transaction, for which the Borrower's
property would constitute unreasonably small capital after giving due
consideration to the prevailing practice in the industry in which the Borrower
is engaged or is to engage, (vi) the fair value of the property of the Borrower
is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of the Borrower and (v) the present fair saleable value
of the assets of the Borrower is not less than the amount that will be required
to pay the probable liability of the Borrower on its debts as they become
absolute and matured. In computing the amount of contingent liabilities at any
time, it is intended that such liabilities will be computed at the amount which,
in light of all the facts and circumstances existing at such time, represents
the amount that can reasonably be expected to become an actual or matured
liability.

         "Subsidiary" means, as to any Person, a corporation, partnership or
other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having
such power only by reason of the happening of a contingency) to elect a majority
of the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both,
by such Person.

         "Subsidiary Pledge Agreement" means that certain Subsidiary Pledge
Agreement, dated as of the Closing Date, among certain Subsidiaries of the
Borrower and the Agent, as amended or modified from time to time.

                                      -19-
<PAGE>

         "Subsidiary Security Agreement" means that certain Subsidiary Security
Agreement, dated as of the Closing Date, among certain Subsidiaries of the
Borrower and the Agent, as amended or modified from time to time.

         "Swing Line" means the revolving line of credit established by Swing
Line Lender in favor of the Borrower pursuant to Section 2.3.
         "Swing Line Commitment Percentage" means for each Lender, the
percentage identified as its Swing Line Commitment Percentage on Schedule
2.1(a), as such percentage may be modified in connection with any assignment
made in accordance with the provisions of Section 10.6(c).

         "Swing Line Lender" means Firstar.

         "Swing Line Loan" means a loan which bears interest at a rate per annum
equal to interest payable on a Base Rate Loan and is made by Swing Line Lender
to the Borrower under the Swing Line.

         "Swing Line Sublimit" means an amount equal to the lesser of (a)
$5,000,000 and (b) the combined Commitments. The Swing Line Sublimit is part of,
and not in addition to, the Commitments.

         "Transfer Effective Date" is defined in the Commitment Transfer
Supplement.

         "Transferee" is defined in Section 10.6(f).

         "Type" means, as to any Loan, its nature as a Base Rate Loan or a
Eurodollar Loan, as the case may be.

         "Unused Facility Fee" is defined in Section 3.4(c).

         "Upfront Fee" is defined in Section 3.4(b).

         1.2 Other Definitional Provisions.

                  (a) Unless otherwise specified therein, all capitalized
         definitional terms defined in this Credit Agreement shall have the
         defined meanings when used in the Notes or other Credit Documents or
         any certificate or other document made or delivered pursuant hereto.

                  (b) The words "hereof," "herein" and "hereunder" and words of
         similar import when used in this Credit Agreement shall refer to this
         Credit Agreement as a whole and not to any particular provision of this
         Credit Agreement, and Section, subsection, Schedule and Exhibit
         references are to this Credit Agreement unless otherwise specified.

                  (c) The meanings given to terms defined herein shall be
         equally applicable to both the singular and plural forms of such terms.

                                      -20-
<PAGE>

                  (d) For purposes of computation of periods of time hereunder,
         the word "from" means "from and including" and the words "to" and
         "until" each mean "to but excluding."

         1.3 Accounting Terms and Determinations. Unless otherwise specified
herein, all terms of an accounting character used herein shall be interpreted,
all accounting determinations hereunder shall be made, and all financial
statements required to be delivered hereunder shall be prepared, in accordance
with GAAP, applied on a basis consistent (except for changes concurred in by the
Borrower's independent public accountants or otherwise required by a change in
GAAP) with the most recent audited combined financial statements of the Borrower
delivered to the Lenders.

                                   SECTION 2

                                CREDIT FACILITIES

         2.1 Revolving Loans.

                  (a) Revolving Commitment. During the Revolving Commitment
         Period, subject to the terms and conditions hereof, each Lender
         severally agrees to make revolving credit loans ("Revolving Loans") to
         the Borrower from time to time for the purposes hereinafter set forth;
         provided, however, that (i) with regard to each Lender individually,
         the sum of such Lender's share of outstanding Revolving Loans plus such
         Lender's LOC Commitment Percentage of LOC Obligations plus such
         Lender's Swing Line Commitment Percentage of outstanding Swing Line
         Loans shall not exceed such Lender's Revolving Committed Amount, and
         (ii) with regard to the Lenders collectively, the sum of the aggregate
         amount of all outstanding Revolving Loans plus the aggregate amount of
         all outstanding LOC Obligations plus the aggregate amount of all
         outstanding Swing Line Loans plus the AAL Reserve shall not exceed the
         lesser of (x) the Borrowing Base and (y) FIFTY-FIVE MILLION DOLLARS
         ($55,000,000) (as such aggregate maximum amount may be reduced from
         time to time as provided herein). Revolving Loans may consist of Base
         Rate Loans or Eurodollar Loans, or a combination thereof, as the
         Borrower may request, and may be repaid and reborrowed in accordance
         with the provisions hereof. Eurodollar Loans shall be made by each
         Lender at its Eurodollar Lending Office and Base Rate Loans at its
         Domestic Lending Office.

                  (b) Revolving Loan Borrowings.

                  (i) Notice of Borrowing. The Borrower shall request a
         Revolving Loan borrowing by written notice (or telephone notice
         promptly confirmed in writing which confirmation may be by fax) to the
         Agent not later than 11:00 a.m. (Milwaukee, Wisconsin time) on the
         Business Day of the requested borrowing in the case of Base Rate Loans,
         and on the third Business Day prior to the date of the requested
         borrowing in the case of Eurodollar Loans. Each such request for
         borrowing shall be irrevocable and shall specify (A) that a Revolving
         Loan is requested, (B) the date of the requested borrowing (which shall
         be a Business Day), (C) the aggregate principal amount to be borrowed,
         and

                                      -21-
<PAGE>

         (D) whether the borrowing shall be comprised of Base Rate Loans,
         Eurodollar Loans or a combination thereof, and if Eurodollar Loans are
         requested, the Interest Period(s) therefor. A form of Notice of
         Borrowing a ("Notice of Borrowing") is attached as Exhibit 2.1(b)(i).
         If the Borrower shall fail to specify in any such Notice of Borrowing
         (I) an applicable Interest Period in the case of a Eurodollar Loan,
         then such notice shall be deemed to be a request for a Base Rate Loan,
         or (II) the Type of Revolving Loan requested, then such notice shall be
         deemed to be a request for a Base Rate Loan hereunder. The Agent shall
         give notice to each Lender (promptly upon receipt of each Notice of
         Borrowing, and in any event not later than noon (Milwaukee, Wisconsin
         time), with respect to any Notice of Borrowing delivered to the Agent
         pursuant to this section) of the contents thereof and each such
         Lender's share thereof.

                  (ii) Minimum Amounts. Each Revolving Loan borrowing shall be:
         (A) if a Base Rate Loan, in a minimum aggregate amount of $500,000 and
         integral multiples of $100,000 in excess thereof; and (B) if a
         Eurodollar Loan, in a minimum aggregate amount of $1,000,000 and
         integral multiples of $500,000 in excess thereof (or, in either case,
         the remaining amount of the Revolving Commitment, if less).

                  (iii) Advances. Each Lender will make its Revolving Commitment
         Percentage of each Revolving Loan borrowing available to the Agent for
         the account of the Borrower at the office of the Agent specified in
         Schedule 10.2, or at such other office as the Agent may designate in
         writing, by 1:00 p.m. (Milwaukee, Wisconsin time) on the date specified
         in the applicable Notice of Borrowing in Dollars and in funds
         immediately available to the Agent. Such borrowing will then be made
         available to the Borrower by the Agent by crediting the account of the
         Borrower on the books of such office with the aggregate of the amounts
         made available to the Agent by the Lenders and in like funds as
         received by the Agent by the close of Agent's business on such date.

                  (c) Repayment. The principal amount of all Revolving Loans
         shall be due and payable in full on the Revolving Termination Date.

                  (d) Interest. Subject to the provisions of Section 3.1,
         Revolving Loans shall bear interest as follows:

                  (i) Base Rate Loans. During such periods as Revolving Loans
         shall be comprised of Base Rate Loans, each such Base Rate Loan shall
         bear interest at a per annum rate equal to the Base Rate; and

                  (ii) Eurodollar Loans. During such periods as Revolving Loans
         shall be comprised of Eurodollar Loans, each such Eurodollar Loan shall
         bear interest at a per annum rate equal to the sum of the applicable
         Eurodollar Rate plus the Applicable Percentage as of the commencement
         of the Interest Period applicable thereto; and

         Interest on Revolving Loans shall be payable in arrears on each
         Interest Payment Date.

                                      -22-
<PAGE>

                  (e) Revolving Notes. The Revolving Loans shall be evidenced by
         a duly executed promissory note of the Borrower to each Lender in the
         original principal amount of each such Lender's Revolving Committed
         Amount in substantially the form of Exhibit 2.1(e).

         2.2 Letter of Credit Subfacility.

                  (a) Issuance. Subject to the terms and conditions hereof and
         of the LOC Documents, if any, and provided that no Default or Event of
         Default shall have occurred and be continuing, and further subject to
         any other terms and conditions which the Issuing Lender may reasonably
         require, during the Revolving Commitment Period the Issuing Lender
         shall issue, and the Lenders shall participate in, Letters of Credit
         for the account of the Borrower from time to time upon request in a
         form acceptable to the Issuing Lender; provided, however, that (i) the
         aggregate amount of LOC Obligations shall not at any time exceed
         TWENTY-FIVE MILLION DOLLARS ($25,000,000) (the "LOC Committed Amount")
         and (ii) the sum of the aggregate amount of all outstanding Revolving
         Loans plus the aggregate amount of all outstanding LOC Obligations plus
         the aggregate amount of all outstanding Swing Line Loans plus the AAL
         Reserve shall not at any time exceed the lesser of (x) the Borrowing
         Base and (y) the aggregate Revolving Committed Amount. Other than the
         Existing Letters of Credit, no Letter of Credit as originally issued or
         as extended shall have an expiry date extending beyond the Revolving
         Termination Date without the prior consent of the Agent and all
         Lenders, except that prior to the Revolving Termination Date a Letter
         of Credit may be issued or extended (including without limitation any
         extension of an Existing Letter of Credit) with an expiry date
         extending up to a maximum of one year beyond the Revolving Termination
         Date with the consent of the Issuing Lender if, and to the extent that,
         the Borrower shall provide cash collateral to the Issuing Lender on the
         Revolving Termination Date in an amount equal to the maximum amount
         available to be drawn under such Letter of Credit. Each Letter of
         Credit shall comply with the related LOC Documents. The issuance and
         expiry date of each Letter of Credit shall be a Business Day. In the
         case of a conflict in the terms of the LOC Documents and this Credit
         Agreement, the terms of this Credit Agreement shall control.

                  (b) Notice. The request for the issuance of a Letter of Credit
         shall be submitted to the Issuing Lender and the Agent on such prior
         notice as the Issuing Lender and the Borrower shall agree.

                  (c) Participations. Each Lender, with respect to Letters of
         Credit issued on or after the Closing Date, upon issuance of a Letter
         of Credit, shall be deemed to have purchased without recourse a risk
         participation from the Issuing Lender in such Letter of Credit and the
         obligations arising thereunder and any collateral relating thereto, in
         each case in an amount equal to its LOC Commitment Percentage of the
         obligations under such Letter of Credit and shall absolutely,
         unconditionally and irrevocably assume, as primary obligor and not as
         surety, and be obligated to pay to the Issuing Lender therefor and
         discharge when due, its LOC Commitment Percentage of the obligations
         arising under such Letter of Credit. Without limiting the scope and
         nature of each Lender's

                                      -23-
<PAGE>

         participation in any Letter of Credit, to the extent that the Issuing
         Lender has not been reimbursed as required hereunder or under any LOC
         Document, each such Lender shall pay to the Issuing Lender its LOC
         Commitment Percentage of such unreimbursed drawing in same day funds on
         the day of notification by the Issuing Lender of an unreimbursed
         drawing pursuant to the provisions of subsection (d) hereof. The
         obligation of each Lender to so reimburse the Issuing Lender shall be
         absolute and unconditional and shall not be affected by the occurrence
         of a Default, an Event of Default or any other occurrence or event. Any
         such reimbursement shall not relieve or otherwise impair the obligation
         of the Borrower to reimburse the Issuing Lender under any Letter of
         Credit, together with interest as hereinafter provided.

                  (d) Reimbursement. In the event of any drawing under any
         Letter of Credit, the Issuing Lender will promptly notify the Borrower
         and the Agent. The Borrower shall reimburse the Issuing Lender (either
         with the proceeds of a Revolving Loan obtained hereunder or otherwise)
         in same day funds, as provided herein or in the LOC Documents, on the
         day such notice is received by the Borrower from the Issuing Lender if
         such notice is received at or before 2:00 p.m. (Milwaukee, Wisconsin
         time), otherwise such payment shall be made at or before 12:00 noon
         (Milwaukee, Wisconsin time) on the Business Day next succeeding the day
         such notice is received. Each such payment shall include interest on
         the amount of such payment at the Base Rate from the date of payment
         until the date of reimbursement. Unless the Borrower shall notify the
         Issuing Lender and the Agent on the date the Borrower receives notice
         of a payment of its intent to otherwise reimburse the Issuing Lender,
         the Borrower shall be deemed to have requested a Revolving Loan in the
         amount of the payment as provided in subsection (e) hereof, the
         proceeds of which will be used to satisfy the reimbursement
         obligations. The Borrower's reimbursement obligations hereunder shall
         be absolute and unconditional under all circumstances irrespective of
         any rights of set-off, counterclaim or defense to payment the Borrower
         may claim or have against the Issuing Lender, the Agent, the Lenders,
         the beneficiary of the Letter of Credit drawn upon or any other Person,
         including, without limitation, any defense based on any failure of the
         Borrower to receive consideration or the legality, validity, regularity
         or unenforceability of the Letter of Credit. The Issuing Lender will
         promptly notify the other Lenders of the amount of any unreimbursed
         payment and each Lender shall promptly pay to the Agent for the account
         of the Issuing Lender in Dollars and in immediately available funds,
         the amount of such Lender's LOC Commitment Percentage of such
         unreimbursed drawing. Such payment shall be made on the day such notice
         is received by such Lender from the Issuing Lender if such notice is
         received at or before 2:00 p.m. (Milwaukee, Wisconsin time), otherwise
         such payment shall be made at or before 12:00 noon (Milwaukee,
         Wisconsin time) on the Business Day next succeeding the day such notice
         is received. If such Lender does not pay such amount to the Issuing
         Lender in full upon such request, such Lender shall, on demand, pay to
         the Agent for the account of the Issuing Lender interest on the unpaid
         amount during the period from the date of such payment until such
         Lender pays such amount to the Issuing Lender in full at a rate per
         annum equal to, if paid within two (2) Business Days of the date of
         such request, the Federal Funds Rate and thereafter at a rate equal to
         the Base Rate. Each Lender's obligation to make such payment to the
         Issuing Lender, and the right of the

                                      -24-
<PAGE>

         Issuing Lender to receive the same, shall be absolute and
         unconditional, shall not be affected by any circumstance whatsoever and
         without regard to the termination of this Credit Agreement or the
         Commitments hereunder, the existence of a Default or Event of Default
         or the acceleration of the Obligations hereunder and shall be made
         without any offset, abatement, withholding or reduction whatsoever.

                  (e) Repayment with Revolving Loans. On any day on which the
         Borrower shall be deemed to have requested a Revolving Loan to
         reimburse a drawing under a Letter of Credit, the Agent shall give
         notice to the Lenders that a Revolving Loan has been requested or
         deemed requested in connection with a drawing under a Letter of Credit,
         in which case a Revolving Loan borrowing comprised entirely of Base
         Rate Loans (each such borrowing, a "Mandatory Borrowing") shall be
         immediately made (without giving effect to any termination of the
         Commitments pursuant to Section 8) pro rata based on each Lender's
         respective Revolving Commitment Percentage (determined before giving
         effect to any termination of the Commitments pursuant to Section 8) and
         in the case of both clauses (i) and (ii) the proceeds thereof shall be
         paid directly to the Issuing Lender for application to the respective
         LOC Obligations. Each Lender hereby irrevocably agrees to make such
         Revolving Loans immediately upon any such request or deemed request on
         account of each Mandatory Borrowing in the amount and in the manner
         specified in the preceding sentence and on the same such date
         notwithstanding (i) the amount of Mandatory Borrowing may not comply
         with the minimum amount for borrowings of Revolving Loans otherwise
         required hereunder, (ii) whether any conditions specified in Section
         4.2 are then satisfied, (iii) whether a Default or an Event of Default
         then exists, (iv) failure for any such request or deemed request for
         Revolving Loan to be made by the time otherwise required in Section
         2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any reduction
         in the Revolving Committed Amount after any such Letter of Credit may
         have been drawn upon. In the event that any Mandatory Borrowing cannot
         for any reason be made on the date otherwise required above (including,
         without limitation, as a result of the commencement of a proceeding
         under the Bankruptcy Code with respect to the Borrower), then each such
         Lender hereby agrees that it shall forthwith fund (as of the date the
         Mandatory Borrowing would otherwise have occurred, but adjusted for any
         payments received from the Borrower on or after such date and prior to
         such purchase) its Participation Interests in the outstanding LOC
         Obligations; provided, further, that in the event any Lender shall fail
         to fund its Participation Interest on the day the Mandatory Borrowing
         would otherwise have occurred, then the amount of such Lender's
         unfunded Participation Interest therein shall bear interest payable to
         the Issuing Lender upon demand, at the rate equal to, if paid within
         two (2) Business Days of any such request, the Federal Funds Rate, and
         thereafter at a rate equal to the Base Rate.

                  (f) Modification, Extension. The issuance of any supplement,
         modification, amendment, renewal, or extension to any Letter of Credit
         shall, solely for purposes of this Credit Agreement, be treated in all
         respects the same as the issuance of a new Letter of Credit, but
         without duplication in computing the aggregate outstanding amount of
         LOC Obligations.

                                      -25-
<PAGE>

                  (g) Uniform Customs and Practices. The Issuing Lender shall
         have the Letters of Credit be subject to The Uniform Customs and
         Practice for Documentary Credits, as published as of the date of issue
         by the International Chamber of Commerce (the "UCP"), in which case the
         UCP may be incorporated therein and deemed in all respects to be a part
         thereof, with such exceptions thereto as the beneficiary may request
         and the Issuing Lender and account party may approve.

         2.3 Swing Line Loans.

                  (a) During the Revolving Commitment Period, subject to the
         terms and conditions set forth in this Credit Agreement, the Swing Line
         Lender agrees to make Swing Line Loans to the Borrower as the Borrower
         may from time to time request for the purposes permitted hereby;
         provided, however, that (i) the aggregate principal amount of all
         outstanding Swing Line Loans shall not exceed the Swing Line Sublimit,
         (ii) the Extensions of Credit of each Lender shall not exceed such
         Lender's Commitment and (iii) the Extensions of Credit of all Lenders
         shall not exceed the lesser of (x) the Borrowing Base and (y) the
         combined Commitments at any time. This is a revolving credit and,
         subject to the foregoing and the other terms and conditions hereof, the
         Borrower may borrow, prepay and reborrow Swing Line Loans as set forth
         herein without premium or penalty; provided, however, that Swing Line
         Lender may terminate or suspend the Swing Line at any time in its sole
         discretion upon notice to the Borrower. Each Swing Line Loan shall bear
         interest at a rate equal to the rate applicable to Base Rate Loans.

                  (b) Unless notified to the contrary by Swing Line Lender, the
         Borrower may irrevocably request a Swing Line Loan in a minimum
         aggregate amount of $100,000 and integral multiples of $10,000 in
         excess thereof upon notice to the Swing Line Lender not later than 1:00
         p.m. (Milwaukee, Wisconsin time) therefor. Each such request for a
         Swing Line Loan shall constitute a representation and warranty by the
         Borrower that the conditions set forth in Section 4.2 are satisfied.
         Promptly after receipt of such request, the Swing Line Lender shall
         obtain telephonic verification from the Agent that such Swing Line Loan
         is permitted hereunder. Upon receiving such verification, the Swing
         Line Lender shall make such Swing Line Loan available to the Borrower.
         Without the consent of Required Lenders and the Swing Line Lender, no
         Swing Line Loan shall be made during the continuation of a Default or
         Event of Default. Upon the making of each Swing Line Loan, each Lender
         shall be deemed to have purchased from the Swing Line Lender a risk
         participation therein in an amount equal to that Lender's Swing Line
         Commitment Percentage times the amount of the Swing Line Loan.

                  (c) Each Swing Line Loan shall bear interest at a fluctuating
         rate per annum equal to the rate of interest payable on Base Rate Loans
         and interest shall be payable upon demand of the Swing Line Lender and
         on the Revolving Termination Date. The Swing Line Lender shall be
         responsible for invoicing the Borrower (or notifying the Agent to so
         invoice the Borrower) for such interest. The interest payable on Swing
         Line Loans is solely for the account of the Swing Line Lender, except
         following any funding of a risk participation under clause (f) below.

                                      -26-
<PAGE>

                  (d) The Borrower shall repay each Swing Line Loan on the
         earliest of (i) the fifth Business Day after it is made, (ii) upon
         demand made by Swing Line Lender and (iii) the Revolving Termination
         Date. The Borrower shall repay the principal amount of each Swing Line
         Loan by payment directly to Swing Line Lender or by Swing Line Lender
         debiting the Borrower's deposit account at Swing Line Lender not later
         than 10:00 a.m. (Milwaukee, Wisconsin time) for payments hereunder. If
         the conditions precedent set forth in Section 4.2 can be satisfied, the
         Borrower may request a Revolving Loan to repay Swing Line Lender, or,
         failing to make such request, the Borrower shall be deemed to have
         requested a Revolving Loan of Base Rate Loans on such payment date
         pursuant to subsection (f) below. Swing Line Lender shall promptly
         notify the Agent of each Swing Line Loan and each payment thereof.

                  (e) If the Borrower fails to timely make any principal of or
         interest payment on any Swing Line Loan, Swing Line Lender shall notify
         the Agent of such fact and the unpaid amount. The Agent shall promptly
         notify each Lender of its pro rata share of such amount by 11:00 a.m.
         (Milwaukee, Wisconsin time). Each Lender shall make funds in an amount
         equal to its pro rata share of such amount available to the Agent at
         the Agent's Payment Office not later than the 2:00 p.m. (Milwaukee,
         Wisconsin time) for payments hereunder on the same Business Day. The
         obligation of each Lender to make such payment shall be absolute and
         unconditional and shall not be affected by the occurrence of an Event
         of Default or any other occurrence or event. Any such payment shall not
         relieve or otherwise impair the obligation of the Borrower to repay the
         Swing Line Lender for any amount of Swing Line Loans, together with
         interest as provided herein.

                  (f) If the conditions precedent set forth in Section 4.2 can
         be satisfied on any date the Borrower is obligated to, but fails to,
         repay a Swing Line Loan, the funding by Lenders pursuant to the
         previous subsection shall be deemed to be a borrowing of Base Rate
         Loans (without regard to the minimum amount therefor) deemed requested
         by the Borrower. If the conditions precedent set forth in Section 4.2
         cannot be satisfied on the date the Borrower is obligated to make, but
         fails to make, such payment, the funding by Lenders pursuant to the
         previous subsection shall be deemed to be a funding by each Lender of
         its participation in such Swing Line Loan, and each Lender making such
         funding shall thereupon acquire a pro rata participation, to the extent
         of its payment, in the claim of Swing Line Lender against the Borrower
         in respect of such payment and shall share, in accordance with that pro
         rata participation, in any payment made by the Borrower with respect to
         such claim. Any amounts made available by a Lender under its risk
         participation shall be payable by the Borrower upon demand of the
         Agent, and shall bear interest at a rate per annum equal to the Base
         Rate plus 2% per annum.

                                   SECTION 3

                 OTHER PROVISIONS RELATING TO CREDIT FACILITIES

         3.1 Default Rate. Upon the occurrence, and during the continuance, of
an Event of Default, the principal of and, to the extent permitted by law,
interest on the Loans and any other

                                      -27-
<PAGE>

amounts owing hereunder or under the other Credit Documents shall bear interest,
payable on demand, at a per annum rate which is equal to the Base Rate plus 2%.

         3.2 Extension and Conversion. The Borrower shall have the option, on
any Business Day, to extend existing Loans into a subsequent permissible
Interest Period or to convert Loans into Loans of another Type; provided,
however, that (i) except as provided in Section 3.7, Eurodollar Loans may be
converted into Base Rate Loans only on the last day of the Interest Period
applicable thereto, (ii) Eurodollar Loans may be extended, and Base Rate Loans
may be converted into Eurodollar Loans, only if no Default or Event of Default
is in existence on the date of extension or conversion, (iii) Loans extended as,
or converted into, Eurodollar Loans shall be subject to the terms of the
definition of "Interest Period" set forth in Section 1.1 and shall be in such
minimum amounts as provided in Section 2.l(b)(ii) and (iv) any request for
extension or conversion of a Eurodollar Loan which shall fail to specify an
Interest Period shall be deemed to be a request for a Base Rate Loan. Each such
extension or conversion shall be effected by the Borrower by giving a Notice of
Extension/Conversion in the form of Exhibit 3.2 (or telephone notice promptly
confirmed in writing) to the Agent prior to 11:00 a.m. (Milwaukee, Wisconsin
time) on the Business Day of, in the case of the conversion of a Eurodollar Loan
into a Base Rate Loan and on the third Business Day prior to, in the case of the
extension of a Eurodollar Loan as, or conversion of a Base Rate Loan into, a
Eurodollar Loan, the date of the proposed extension or conversion, specifying
the date of the proposed extension or conversion, the Loans to be so extended or
converted, the Types of Loans into which such Loans are to be converted and, if
appropriate, the applicable Interest Periods with respect thereto. Each request
for extension or conversion shall constitute a representation and warranty by
the Borrower of the matters specified in Section 4.2. In the event the Borrower
fails to request extension or conversion of any Eurodollar Loan in accordance
with this Section, or any such conversion or extension is not permitted or
required by this Section, then such Loans shall be automatically converted into
Base Rate Loans at the end of their Interest Period. The Agent shall give each
Lender notice as promptly as practicable of any such proposed extension or
conversion affecting any Loan.

         3.3 Reductions in Commitments and Prepayments.

                  (a) Reductions in Commitments. The Borrower may terminate, or
         from time to time permanently reduce, the Aggregate Revolving Committed
         Amount in whole or in part without premium or penalty except as
         provided in Section 3.10 upon five (5) Business Days' prior written
         notice to the Agent; provided that after giving effect to any such
         voluntary reduction the sum of Revolving Loans plus LOC Obligations
         plus Swing Line Loans then outstanding shall not exceed the lesser of
         (i) the Borrowing Base and (ii) the Aggregate Revolving Committed
         Amount, as reduced. Except as otherwise specified herein, partial
         reductions in the foregoing Committed Amounts shall in each case be in
         a minimum aggregate amount of $1,000,000 and integral multiples of
         $1,000,000 in excess thereof.

                  (b) Mandatory Prepayment on Revolving Loans. If at any time
         the sum of the aggregate amount of all outstanding Revolving Loans plus
         the aggregate amount of all outstanding LOC Obligations plus the
         aggregate amount of all outstanding Swing Line

                                      -28-
<PAGE>

         Loans plus the AAL Reserve shall exceed the lesser of (i) the Borrowing
         Base and (ii) the Aggregate Revolving Committed Amount, as reduced from
         time to time, the Borrower shall immediately make payment on the Swing
         Line Loans and then, if necessary, on the Revolving Loans and then, if
         necessary, to a cash collateral account in respect of the LOC
         Obligations, in an amount sufficient to eliminate the deficiency. Any
         such payments shall be applied first to Base Rate Loans and then to
         Eurodollar Loans in direct order of their Interest Period maturities.

                  (c) Voluntary Prepayments. Base Rate Loans may be prepaid in
         whole or in part without premium or penalty on one (1) Business Days'
         written notice. Eurodollar Loans may be prepaid in whole or in part
         without premium or penalty (subject to payment of indemnification
         amounts as provided in Section 3.10) on three (3) Business Days'
         written notice. Any partial prepayment of a Base Rate Loan shall be in
         a minimum aggregate principal amount of $500,000 and integral multiples
         of $100,000 in excess thereof. Any partial prepayment of a Eurodollar
         Loan shall be in a minimum aggregate principal amount of $1,000,000 and
         integral multiples of $500,000 in excess thereof. Except as otherwise
         specified herein, amounts prepaid on the Revolving Loans may be
         reborrowed in accordance with the provisions hereof.

         3.4 Fees.

                  (a) Letter of Credit Fee; Fronting Fee. The Borrower agrees to
         pay to the Agent, for the ratable benefit of the Lenders, a fee with
         respect to each Letter of Credit (the "Letter of Credit Fee") equal to
         the Applicable Percentage per annum on the average daily maximum amount
         available to be drawn under such Letter of Credit from the date of
         issuance calculated for the term of availability thereof or until paid,
         whichever occurs first. The Letter of Credit Fee shall be payable
         quarterly in arrears with respect to each Letter of Credit on the last
         day of each calendar quarter and on the Revolving Termination Date. The
         Borrower further agrees to pay to the Agent, for the exclusive benefit
         of the Issuing Lender, a fee with respect to each Letter of Credit (the
         "Fronting Fee") in an amount equal to the product of (i) the average
         daily amount of the LOC Obligations (computed on a quarterly basis in
         arrears on the last Business Day of each June, September, December and
         March commencing September 30, 2001, as calculated by the Agent)
         multiplied by (ii) an annual rate of 0.125% divided by four. The
         Fronting Fee shall be due and payable quarterly in arrears on the last
         Business Day of each June, September, December and March commencing on
         September 30, 2001, through the Revolving Termination Date. The Letter
         of Credit Fee and the Fronting Fee shall be in lieu of any other fees
         in connection with the issuance of Letters of Credit hereunder, except
         for such standard and customary fees, costs and expenses incurred or
         charged by the Issuing Lender in issuing, effecting payment under,
         amending or otherwise administering any Letter of Credit as the
         Borrower and the Issuing Lender may mutually agree.

                  (b) Upfront Fee. The Borrower agrees to pay to the Agent, for
         the ratable benefit of the Lenders, an upfront fee (the "Upfront Fee")
         in an amount equal to $137,500. The Upfront Fee shall be fully earned
         and payable on the Closing Date.

                                      -29-
<PAGE>

                  (c) Unused Facility Fee. The Borrower agrees to pay to the
         Agent, for the ratable benefit of the Lenders, an unused facility fee
         (the "Unused Facility Fee") in an amount equal to the product of (i)
         the average daily unused portion of the Revolving Committed Amount, as
         the same may be reduced from time to time hereunder, (computed on a
         quarterly basis in arrears on the last Business Day of each June,
         September, December and March commencing September 30, 2001, based upon
         the daily utilization for that quarter as calculated by the Agent)
         multiplied by (ii) the Applicable Percentage divided by four. The
         Unused Facility Fee shall be due and payable quarterly in arrears on
         the last Business Day of each June, September, December and March
         commencing on September 30, 2001, through the Revolving Termination
         Date. The Unused Facility Fee shall be fully earned and payable on each
         such payment date. For purposes of computing the Unused Facility Fee
         under this subsection 3.4(c), usage of the LOC Committed Amount shall
         be considered usage of the Revolving Committed Amount, but usage of the
         Swing Line Sublimit shall not be considered usage of the Revolving
         Committed Amount.

         3.5 Capital Adequacy. If any Lender has reasonably determined that the
adoption or effectiveness of any applicable law, rule or regulation regarding
capital adequacy made after the date hereof, or any change therein made after
the date hereof, or any change in the interpretation or administration thereof
by any Governmental Authority, central bank or comparable agency charged with
the interpretation or administration thereof made after the date hereof, or
compliance by such Lender or its parent company with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency made after the date hereof, has or
would have the effect of reducing the rate of return on such Lender's or its
parent company's capital or assets as a consequence of its commitments or
obligations hereunder to a level below that which such Lender could have
achieved but for such adoption, effectiveness, change or compliance (taking into
consideration the policies of such Lender and its parent company with respect to
capital adequacy), then, within 10 Business Days after the Borrower's receipt of
the certificate referred to in the next sentence, the Borrower shall pay to such
Lender such additional amount or amounts as will reasonably compensate such
Lender and its parent company for such reduction. A certificate as to the amount
of such reduction in rate of return, the good faith basis therefor and setting
forth in reasonable detail the calculations used by the applicable Lender to
arrive at the amount or amounts claimed to be due, shall be submitted to the
Borrower and the Agent. Each determination by a Lender of amounts owing under
this Section shall be rebuttably presumptive evidence of the matters set forth
therein. The provisions of this Section shall survive termination of this Credit
Agreement and the payment of the Loans and all other amounts payable hereunder
for a period of one year and one day.

         Failure or delay on the part of any Lender or Issuing Bank to demand
compensation under this Section for any increased costs or reduction in amounts
received or receivable or reduction in return on capital shall not constitute a
waiver of such Lender's or the Issuing Bank's right to demand such compensation;
provided that the Borrower shall not be under any obligation to compensate any
Lender or Issuing Bank under this Section with respect to increased costs or
reductions in amounts received or receivable or reduction in return on capital
with respect to any period prior to the date that is four months prior to such
request if such Lender or Issuing Bank

                                      -30-
<PAGE>

knew or could reasonably have been expected to be aware of the circumstances
giving rise to such increased costs or such reductions and of the fact that such
circumstances would in fact result in a claim for increased compensation by
reason of such increased costs or such reductions; provided further that the
foregoing limitation shall not apply to any increased costs or reductions
arising out of the retroactive application of any law, regulation, rule,
guideline or directive as aforesaid within such four-month period. The
protection of this Section shall be available to each Lender and Issuing Bank
regardless of any possible contention of the invalidity or inapplicability of
the law, rule, regulation, agreement, guideline or other change or condition
that shall have occurred or been imposed.

         3.6 Inability To Determine Interest Rate. If prior to the first day of
any Interest Period, the Agent shall have reasonably determined (which
determination shall be conclusive and binding upon the Borrower) that, by reason
of circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Eurodollar Rate for such Interest Period, the
Agent shall give telecopy or telephonic notice thereof to the Borrower and the
Lenders as soon as practicable thereafter. If such notice is given (a) any
Eurodollar Loans requested to be made on the first day of such Interest Period
shall be made as Base Rate Loans, (b) any Loans that were to have been converted
on the first day of such Interest Period to or continued as Eurodollar Loans
shall be converted to or continued as Base Rate Loans and (c) any outstanding
Eurodollar Loans shall be converted, on the first day of such Interest Period,
to Base Rate Loans. Until such notice has been withdrawn by the Agent, no
further Eurodollar Loans shall be made or continued as such, nor shall the
Borrower have the right to convert Base Rate Loans to Eurodollar Loans.

         3.7 Illegality. Notwithstanding any other provision herein, if the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof occurring after the Closing Date shall make it unlawful for
any Lender to make or maintain Eurodollar Loans as contemplated by this Credit
Agreement, (a) such Lender shall promptly give written notice of such
circumstances to the Borrower and the Agent (which notice shall be withdrawn
whenever such circumstances no longer exist), (b) the commitment of such Lender
hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and
convert a Base Rate Loan to Eurodollar Loans shall forthwith be canceled and,
until such time as it shall no longer be unlawful for such Lender to make or
maintain Eurodollar Loans, such Lender shall then have a commitment only to make
a Base Rate Loan when a Eurodollar Loan is requested and (c) such Lender's Loans
then outstanding as Eurodollar Loans, if any, shall be converted automatically
to Base Rate Loans on the respective last days of the then current Interest
Periods with respect to such Loans or within such earlier period as required by
law. If any such conversion of a Eurodollar Loan occurs on a day which is not
the last day of the then current Interest Period with respect thereto, the
Borrower shall pay to such Lender such amounts, if any, as may be required
pursuant to Section 3.10.

         3.8 Requirements of Law. If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof applicable to
any Lender, or compliance by any Lender with any request or directive (whether
or not having the force of law) from any central bank or other Governmental
Authority, in each case made subsequent to the Closing Date (or, if later, the
date on which such Lender becomes a Lender):

                                      -31-
<PAGE>

                  (i) shall subject such Lender to any tax of any kind
         whatsoever on or in respect of any Letter of Credit, letter of credit
         application or any Eurodollar Loans made by it or its obligation to
         make Eurodollar Loans, or change the basis of taxation of payments to
         such Lender in respect thereof except for Non-Excluded Taxes covered by
         Section 3.9 (including Non-Excluded Taxes imposed solely by reason of
         any failure of such Lender to comply with its obligations under Section
         3.9(b)) and changes in taxes measured by or imposed upon the overall
         net income, or franchise tax (imposed in lieu of such net income tax),
         of such Lender or its applicable lending office, branch, or any
         affiliate thereof); or

                  (ii) shall impose, modify or hold applicable any reserve,
         special deposit, compulsory loan or similar condition or requirement
         against assets held by, deposits or other liabilities in or for the
         account of, advances, loans or other extensions of credit by, or any
         other acquisition of funds by, any office of such Lender which is not
         otherwise included in the determination of the Eurodollar Rate
         hereunder;

         and the result of any of the foregoing is to increase the cost to such
Lender, by an amount which such Lender deems to be material, of making,
converting into, continuing or maintaining Eurodollar Loans, or issuing or
participating in any Letter of Credit, or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, upon notice to the
Borrower from such Lender, through the Agent, in accordance herewith, the
Borrower shall promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount
receivable, provided that, in any such case, the Borrower may elect to convert
the Eurodollar Loans made by such Lender hereunder to Base Rate Loans by giving
the Agent at least one Business Day's notice of such election, in which case the
Borrower shall promptly pay to such Lender, upon demand, without duplication,
such amounts, if any, as may be required pursuant to Section 3.10. If any Lender
becomes entitled to claim any additional amounts pursuant to this subsection, it
shall provide prompt notice thereof to the Borrower, through the Agent,
certifying (a) that one of the events described in this Section 3.8 has occurred
and describing in reasonable detail the nature of such event, (b) as to the
increased cost or reduced amount resulting from such event and (c) as to the
additional amount demanded by such Lender and a reasonably detailed explanation
of the calculation thereof. Such a certificate as to any additional amounts
payable pursuant to this subsection shall be submitted by such Lender, through
the Agent, to the Borrower and shall be conclusive in the absence of manifest
error. This covenant shall survive the termination of this Credit Agreement and
the payment of the Loans and all other amounts payable hereunder.

         Failure or delay on the part of any Lender or Issuing Bank to demand
compensation under this Section for any increased costs or reduction in amounts
received or receivable or reduction in return on capital shall not constitute a
waiver of such Lender's or the Issuing Bank's right to demand such compensation;
provided that the Borrower shall not be under any obligation to compensate any
Lender or Issuing Bank under this Section with respect to increased costs or
reductions in amounts received or receivable or reduction in return on capital
with respect to any period prior to the date that is four months prior to such
request if such Lender or Issuing Bank knew or could reasonably have been
expected to be aware of the circumstances giving rise to such increased costs or
such reductions and of the fact that such circumstances would in fact

                                      -32-
<PAGE>

result in a claim for increased compensation by reason of such increased costs
or such reductions; provided further that the foregoing limitation shall not
apply to any increased costs or reductions arising out of the retroactive
application of any law, regulation, rule, guideline or directive as aforesaid
within such four-month period. The protection of this Section shall be available
to each Lender and Issuing Bank regardless of any possible contention of the
invalidity or inapplicability of the law, rule, regulation, agreement, guideline
or other change or condition that shall have occurred or been imposed.

         3.9 Taxes.

                  (a) Except as provided below in this subsection, all payments
         made by the Borrower under this Credit Agreement and any Notes shall be
         made free and clear of, and without deduction or withholding for or on
         account of, any present or future income, stamp or other taxes, levies,
         imposts, duties, charges, fees, deductions or withholdings, now or
         hereafter imposed, levied, collected, withheld or assessed by any
         Governmental Authority, excluding taxes measured by or imposed upon the
         overall net income of any Lender or its applicable lending office, or
         any branch or affiliate thereof, and all franchise taxes, branch taxes,
         taxes on doing business or taxes on the overall capital or net worth of
         any Lender or its applicable lending office, or any branch or affiliate
         thereof, in each case imposed in lieu of net income taxes, imposed: (i)
         by the jurisdiction under the laws of which such Lender, applicable
         lending office, branch or affiliate is organized or is located, or in
         which its principal executive office is located, or any nation within
         which such jurisdiction is located or any political subdivision
         thereof; or (ii) by reason of any connection between the jurisdiction
         imposing such tax and such Lender, applicable lending office, branch or
         affiliate other than a connection arising solely from such Lender
         having executed, delivered or performed its obligations, or received
         payment under or enforced, this Credit Agreement or any Notes. If any
         such non-excluded taxes, levies, imposts, duties, charges, fees,
         deductions or withholdings ("Non-Excluded Taxes") are required to be
         withheld from any amounts payable to the Agent or any Lender hereunder
         or under any Notes, (A) the amounts so payable to the Agent or such
         Lender shall be increased to the extent necessary to yield to the Agent
         or such Lender (after payment of all Non-Excluded Taxes) interest or
         any such other amounts payable hereunder at the rates or in the amounts
         specified in this Credit Agreement and any Notes, provided, however,
         that the Borrower shall be entitled to deduct and withhold any
         Non-Excluded Taxes and shall not be required to increase any such
         amounts payable to any Foreign Lender if such Foreign Lender fails to
         comply with the requirements of paragraph (b) of this subsection
         whenever any Non-Excluded Taxes are payable by the Borrower, and (B) as
         promptly as possible thereafter the Borrower shall send to the Agent
         for its own account or for the account of such Lender, as the case may
         be, a certified copy of an original official receipt received by the
         Borrower showing payment thereof. If the Borrower fails to pay any
         Non-Excluded Taxes when due to the appropriate taxing authority or
         fails to remit to the Agent the required receipts or other required
         documentary evidence, the Borrower shall indemnify the Agent and the
         Lenders for any incremental taxes, interest or penalties that may
         become payable by the Agent or any Lender as a result of any such
         failure. The agreements in this subsection shall survive

                                      -33-
<PAGE>

         the termination of this Credit Agreement and the payment of the Loans
         and all other amounts payable hereunder.

                  (b) Any Foreign Lender that is entitled to an exemption from
         or reduction of withholding tax under the law of the jurisdiction in
         which the Borrower is located, or any treaty to which such jurisdiction
         is a party, with respect to payments under this Credit Agreement shall
         deliver to the Borrower (with a copy to the Agent), at the time or
         times prescribed by applicable law, such properly completed and
         executed documentation prescribed by applicable law as will permit such
         payments to be made without withholding or at a reduced rate.

         3.10 Indemnity. The Borrower agrees to indemnify each Lender and to
hold each Lender harmless from any loss or expense which such Lender may sustain
or incur (other than through such Lender's gross negligence or willful
misconduct) as a consequence of (a) default by the Borrower in making a
borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Credit Agreement, (b) default by the Borrower in making any
prepayment of a Eurodollar Loan after the Borrower has given a notice thereof in
accordance with the provisions of this Credit Agreement or (c) the making of a
prepayment of Eurodollar Loans on a day which is not the last day of an Interest
Period with respect thereto. Such indemnification may include an amount equal to
the excess, if any, of (i) the amount of interest which would have accrued on
the amount so prepaid, or not so borrowed, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of the applicable Interest Period (or, in the case of a
failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such Eurodollar Loans provided for herein over (ii) the amount of
interest (as reasonably determined by such Lender) which would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank Eurodollar market. This covenant
shall survive the termination of this Credit Agreement and the payment of the
Loans and all other amounts payable hereunder.

         3.11 Pro Rata Treatment. Except to the extent otherwise provided
herein:

                  (a) Loans. Each Loan, each payment or prepayment of principal
         of any Loan, each payment of interest on the Loans, each payment of
         Fees (other than the Fees to the Agent pursuant to Section 3.4(c)),
         each reduction of the Revolving Committed Amount, the LOC Committed
         Amount, and each conversion or extension of any Loan, shall be
         allocated pro rata among the Lenders in accordance with the respective
         Commitment Percentages relating to such respective Loans and
         Participation Interests.

                  (b) Advances. Unless the Agent shall have been notified in
         writing by any Lender prior to a borrowing that such Lender will not
         make the amount that would constitute its Commitment Percentage of such
         borrowing available to the Agent, the Agent may assume that such Lender
         is making such amount available to the Agent, and the Agent may, in
         reliance upon such assumption, make available to the Borrower a
         corresponding amount. If such amount is not made available to the Agent
         by such Lender

                                      -34-
<PAGE>

         within the time period specified therefor hereunder, such Lender shall
         pay to the Agent, on demand, such amount with interest thereon at a
         rate equal to the Federal Funds Rate for the period until such Lender
         makes such amount immediately available to the Agent. A certificate of
         the Agent submitted to any Lender with respect to any amounts owing
         under this subsection shall be conclusive in the absence of manifest
         error. If such Lender's Commitment Percentage of such borrowing is not
         made available to the Agent by such Lender within two Business Days of
         the date of the related borrowing, (i) the Agent shall notify the
         Borrower of the failure of such Lender to make such amount available to
         the Agent and the Agent shall also be entitled to recover such amount
         with interest thereon at the rate per annum applicable to Base Rate
         Loans hereunder, on demand, from the Borrower and (ii) then the
         Borrower may, without waiving any rights they may have against such
         Lender, (x) request the Lender serving as Agent to increase its
         applicable Commitment Percentage and make such borrowing available,
         which request such Lender may in its sole discretion approve or deny,
         (y) if the Lender serving as Agent shall deny a request submitted to it
         pursuant to the foregoing clause (x), borrow a like amount on an
         unsecured basis (or on a secured basis if the Agent consents thereto,
         which consent shall not be unreasonably withheld) from any commercial
         bank for a period ending on the date upon which such Lender does in
         fact make such borrowing available; provided, however, that at the time
         any such replacement borrowing is made and at all times while such
         amount is outstanding the Borrower would be permitted to borrow such
         amount pursuant to Section 2.1 of this Credit Agreement, and (z)
         Borrower may elect to permanently replace the Defaulting Lender with a
         new Lender to be selected by the Borrower (subject to the Agent's
         approval, which approval shall not be unreasonably withheld).

         3.12 Sharing of Payments. The Lenders agree among themselves that, in
the event that any Lender shall obtain payment in respect of any Loan or any
other Obligation owing to such Lender under this Credit Agreement or any other
Credit Document through the exercise of a right of setoff, banker's lien or
counterclaim, or pursuant to a secured claim under Section 506 of Title 11 of
the United States Code or other security or interest arising from, or in lieu
of, such secured claim, received by such Lender under any applicable bankruptcy,
insolvency or other similar law or otherwise, or by any other means, in excess
of its pro rata share of such payment as provided for in this Credit Agreement,
such Lender shall promptly purchase from the other Lenders a participation in
such Loans and other obligations in such amounts, and make such other
adjustments from time to time, as shall be equitable to the end that all Lenders
share such payment in accordance with their respective ratable shares as
provided for in this Credit Agreement. The Lenders further agree among
themselves that if payment to a Lender obtained by such Lender through the
exercise of a right of setoff, banker's lien, counterclaim or other event as
aforesaid shall be rescinded or must otherwise be restored, each Lender which
shall have shared the benefit of such payment shall, by repurchase of a
participation theretofore sold, return its share of that benefit (together with
its share of any accrued interest payable with respect thereto) to each Lender
whose payment shall have been rescinded or otherwise restored. The Borrower
agrees that any Lender so purchasing such a participation may, to the fullest
extent permitted by law, exercise all rights of payment, including setoff,
banker's lien or counterclaim, with respect to such participation as fully as if
such Lender were a holder of such Loan or other

                                      -35-
<PAGE>

obligation in the amount of such participation. Except as otherwise expressly
provided in this Credit Agreement, if any Lender or the Agent shall fail to
remit to the Agent or any other Lender an amount payable by such Lender or the
Agent to the Agent or such other Lender pursuant to this Credit Agreement on the
date when such amount is due, such payments shall be made together with interest
thereon for each date from the date such amount is due until the date such
amount is paid to the Agent or such other Lender at a rate per annum equal to
the Federal Funds Rate. If under any applicable bankruptcy, insolvency or other
similar law, any Lender receives a secured claim in lieu of a setoff to which
this Section 3.12 applies, such Lender shall, to the extent practicable,
exercise its rights in respect of such secured claim in a manner consistent with
the rights of the Lenders under this Section 3.12 to share in the benefits of
any recovery on such secured claim.

         3.13 Place and Manner of Payments. Except as otherwise specifically
provided herein, all payments hereunder shall be made to the Agent in Dollars in
immediately available funds, without offset, deduction, counterclaim or
withholding of any kind, at its offices at the Agent's office specified in
Schedule 10.2 not later than noon (Milwaukee, Wisconsin time) on the date when
due. Payments received after such time shall be deemed to have been received on
the next succeeding Business Day. The Agent may, at the Borrower's request,
debit the amount of any such payment which is not made by such time to Account
No. 121727847 maintained by the Borrower with the Agent or any other account
which may be maintained by the Borrower with the Agent and designated for such
purpose by the Borrower. The Borrower shall, at the time it makes any payment
under this Credit Agreement, specify to the Agent the Loans, Fees or other
amounts payable by the Borrower hereunder to which such payment is to be applied
(and in the event that it fails so to specify, or if such application would be
inconsistent with the terms hereof, the Agent shall distribute such payment to
the Lenders in such manner as the Agent may determine to be appropriate in
respect of obligations owing by the Borrower hereunder, subject to the terms of
Section 3.11). The Agent will distribute such payments to such Lenders, if any
such payment is received prior to 5:00 p.m. (Milwaukee, Wisconsin time) on a
Business Day in like funds as received prior to the end of such Business Day and
otherwise the Agent will distribute such payment to such Lenders on the next
succeeding Business Day. Whenever any payment hereunder shall be stated to be
due on a day which is not a Business Day, the due date thereof shall be extended
to the next succeeding Business Day (subject to accrual of interest and Fees for
the period of such extension), except that in the case of Eurodollar Loans, if
the extension would cause the payment to be made in the next following calendar
month, then such payment shall instead be made on the next preceding Business
Day. Except as expressly provided otherwise herein; all computations of interest
with respect to the Base Rate, the Eurodollar Rate, the Federal Fund Rate and
Fees shall be made on the basis of actual number of days elapsed over a year of
360 days. Interest shall accrue from and include the date of borrowing, but
exclude the date of payment.

         3.14 Indemnification: Nature of Issuing Lender's Duties.

                  (a) In addition to its other obligations under Section 2.2,
         the Borrower agrees to protect, indemnify, pay and save each Issuing
         Lender harmless from and against any and all claims, demands,
         liabilities, damages, losses, costs, charges and expenses (including
         reasonable attorneys' fees) that the Issuing Lender may incur or be
         subject to as a

                                      -36-
<PAGE>

         consequence, direct or indirect, of (A) the issuance of any Letter of
         Credit or (B) the failure of the Issuing Lender to honor a drawing
         under a Letter of Credit as a result of any act or omission, whether
         rightful or wrongful, of any present or future de jure or de facto
         government or Governmental Authority (all such acts or omissions,
         herein called "Government Acts").

                  (b) As between the Borrower and the Issuing Lender, the
         Borrower shall assume all risks of the acts, omissions or misuse of any
         Letter of Credit by the beneficiary thereof. The Issuing Lender shall
         not be responsible: (i) for the form, validity, sufficiency, accuracy,
         genuineness or legal effect of any document submitted by any party in
         connection with the application for and issuance of any Letter of
         Credit, even if it should in fact prove to be in any or all respects
         invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the
         validity or sufficiency of any instrument transferring or assigning or
         purporting to transfer or assign any Letter of Credit or the rights or
         benefits thereunder or proceeds thereof, in whole or in part, that may
         prove to be invalid or ineffective for any reason; (iii) for failure of
         the beneficiary of a Letter of Credit to comply fully with conditions
         required in order to draw upon a Letter of Credit; (iv) for errors,
         omissions, interruptions or delays in transmission or delivery of any
         messages, by mail, telegraph, facsimile transmission or otherwise,
         whether or not they be in cipher; (v) for errors in interpretation of
         technical terms; (vi) for any loss or delay in the transmission or
         otherwise of any document required in order to make a drawing under a
         Letter of Credit or of the proceeds thereof; and (vii) for any
         consequences arising from causes beyond the control of the Issuing
         Lender, including, without limitation, any Government Acts. None of the
         above shall affect, impair, or prevent the vesting of the Issuing
         Lender's rights or powers hereunder. Without limiting the generality of
         the foregoing, it is expressly understood and agreed that the absolute
         and unconditional obligation of the Borrower to reimburse the aggregate
         amount of all payments made, or drafts accepted for subsequent payments
         to be made, under Letters of Credit honored by the Issuing Lender will
         not be excused by the bad faith, gross negligence or willful misconduct
         of the Issuing Lender. However, the foregoing shall not be construed to
         excuse the Issuing Lender from liability to the Borrower to the extent
         of any direct damages (as opposed to consequential damages, claims in
         respect of which are hereby waived by the Borrower to the extent
         permitted by applicable law) suffered by the Borrower that are caused
         by the Issuing Lender's gross negligence or willful misconduct in
         determining whether drafts and other documents presented under a Letter
         of Credit comply with the terms thereof; it is understood that the
         Issuing Lender may accept documents that appear on their face to be in
         order, without responsibility for further investigation, regardless of
         any notice or information to the contrary and, in making any payment
         under any Letter of Credit (i) the Issuing Lender's exclusive reliance
         on the documents presented to it under such Letter of Credit as to any
         and all matters set forth therein, including reliance on the amount of
         any draft presented under such Letter of Credit, whether or not the
         amount due to the beneficiary thereunder equals the amount of such
         draft and whether or not any document presented pursuant to such Letter
         of Credit proves to be insufficient in any respect, if such document on
         its face appears to be in order, and whether or not any other statement
         or any other document presented pursuant to such Letter of Credit
         proves to be forged or

                                      -37-
<PAGE>

         invalid or any statement therein proves to be inaccurate or untrue in
         any respect whatsoever and (ii) any noncompliance in any immaterial
         respect of the documents presented under such Letter of Credit with the
         terms thereof shall, in each case, be deemed not to constitute willful
         misconduct or gross negligence of the Issuing Lender.

                  (c) In furtherance and extension and not in limitation of the
         specific provisions hereinabove set forth, any action taken or omitted
         by the Issuing Lender, under or in connection with any Letter of Credit
         or the related certificates, if taken or omitted in good faith, shall
         not put such Issuing Lender under any resulting liability to the
         Borrower. It is the intention of the parties that this Credit Agreement
         shall be construed and applied to protect and indemnify the Issuing
         Lender against any and all risks involved in the issuance of the
         Letters of Credit, all of which risks are hereby assumed by the
         Borrower, including, without limitation, any and all risks of the acts
         or omissions, whether rightful or wrongful, of any present or future
         Government Acts. The Issuing Lender shall not, in any way, be liable
         for any failure by the Issuing Lender or anyone else to pay any drawing
         under any Letter of Credit as a result of any Government Acts or any
         other cause beyond the control of the Issuing Lender.

                  (d) Nothing in this Section 3.14 is intended to limit the
         reimbursement obligation of the Borrower contained in this Credit
         Agreement. The obligations of the Borrower under this Section 3.14
         shall survive the termination of this Credit Agreement. No act or
         omissions of any current or prior beneficiary of a Letter of Credit
         shall in any way affect or impair the rights of the Issuing Lender to
         enforce any right, power or benefit under this Credit Agreement.

                  (e) Notwithstanding anything to the contrary contained in this
         Credit Agreement, the Borrower shall have no obligation to indemnify
         any Issuing Lender in respect of any liability incurred by such Issuing
         Lender arising out of the gross negligence or willful misconduct of the
         Issuing Lender, as determined by a final nonappealable judgment of a
         court of competent jurisdiction.

                                   SECTION 4

                                   CONDITIONS

         4.1 Conditions to Closing Date. This Credit Agreement shall close upon
satisfaction of the following conditions precedent:

                  (a) Execution of Agreement. The Agent shall have received (i)
         multiple counterparts of this Credit Agreement for each Lender,
         executed by a duly authorized officer or representative of each party
         hereto, (ii) for the account of each Lender a Revolving Note executed
         by a duly authorized officer or representative of the Borrower, (iii)
         multiple counterparts of the Parent Security Agreement for each Lender
         in form and substance satisfactory to the Agent and the Lenders
         executed by a duly authorized officer or representative of the Borrower
         and the Agent, (iv) multiple counterparts of the Subsidiary Security
         Agreement for each Lender in form and substance satisfactory to the
         Agent and the Lenders executed by a duly authorized officer or
         representative of each Guarantor and the Agent, (v) multiple
         counterparts of the Aircraft Security Agreement for each Lender in form
         and substance satisfactory to the

                                      -38-
<PAGE>

         Agent and the Lenders executed by a duly authorized officer or
         representative of Midwest Express Airlines and the Agent, (vi) multiple
         counterparts of the Parent Pledge Agreement for each Lender in form and
         substance satisfactory to the Agent and the Lenders executed by a duly
         authorized officer or representative of the Borrower, the Agent and
         each Issuer (as such term is defined in the Parent Pledge Agreement),
         (vii) multiple counterparts of the Subsidiary Pledge Agreement for each
         Lender in form and substance satisfactory to the Agent and the Lenders
         executed by a duly authorized officer or representative of each
         Guarantor, the Agent and each Issuer (as such term is defined in the
         Subsidiary Pledge Agreement), (viii) UCC financing statements, FAA lien
         registration statements and other requisite documents relating to the
         Security Agreement, the Aircraft Security Agreement and the Pledge
         Agreement executed by a duly authorized officer of each party thereto,
         and (ix) multiple counterparts of the Guaranty executed by a duly
         authorized officer of each of the Guarantors.

                  (b) Liability and Casualty Insurance. The Agent shall have
         received copies of insurance policies or certificates of insurance
         evidencing liability and casualty insurance in form and substance
         satisfactory to the Agent and naming the Agent as additional insured
         and lender loss payee thereunder.

                  (c) Certificate of Financial Condition. The Agent shall have
         received a Certificate of Financial Condition dated as of the Closing
         Date from the Borrower in the form of Exhibit 4.1(c) with appropriate
         insertions and attachments.

                  (d) Financial Information. The Agent shall have received
         copies of audited consolidated financial statements for the Borrower
         for the year ended December 31, 2000, and interim quarterly
         company-prepared combined financial statements for the Borrower for
         each fiscal quarter ended thereafter until the Closing Date, together
         with such other financial information as any Lender may reasonably
         request.

                  (e) Corporate Documents. The Agent shall have received each of
         the following:

                  (i) Charter Documents. Copies of the articles of
         incorporation, or other charter documents of the Borrower and each
         Guarantor, certified to be true and complete as of a recent date by the
         appropriate Governmental Authority of the jurisdiction of its
         organization.

                  (ii) Resolutions. Copies of resolutions of the board of
         directors of the Borrower and each Guarantor, approving and adopting
         the Credit Documents and the transactions contemplated therein and
         authorizing execution and delivery thereof, certified by a secretary or
         other appropriate officer or representative of such party as of the
         Closing Date to be true and correct and in force and effect as of such
         date.

                                      -39-
<PAGE>

                  (iii) Bylaws. A copy of the bylaws of the Borrower and each
         Guarantor, certified by a secretary or other appropriate officer or
         representative of such party as of the Closing Date to be true and
         correct and in force and effect as of such date.

                  (iv) Good Standing. Copies of certificates of good standing,
         existence or their equivalent with respect to the Borrower and each
         Guarantor, certified as of a recent date by the appropriate
         Governmental Authority of the jurisdiction of its organization and each
         other jurisdiction in which the failure to so qualify and be in good
         standing would have a Material Adverse Effect.

                  (f) Officer's Certificate. The Agent shall have received, with
         a counterpart for each Lender, a certificate of a duly authorized
         officer or representative of the Borrower and each Guarantor dated the
         Closing Date, substantially in the form of Exhibit 4.1(f) with
         appropriate insertions and attachments.

                  (g) Legal Opinions of Counsel. The Agent shall have received,
         with a copy for each Lender, (i) an opinion of Foley & Lardner, counsel
         for the Borrower and the Guarantors, dated the Closing Date and
         addressed to the Agent and the Lenders, in form and substance
         satisfactory to the Agent and the Lenders, and (ii) an opinion of Crowe
         & Dunlevy counsel for the Agent and the Lenders, dated the Closing Date
         and addressed to the Agent and the Lenders, in form and substance
         satisfactory to the Agent and the Lenders.

                  (h) Fees. The Agent shall have received all Fees owing
         pursuant to Section 3.4.

                  (i) Subsection 4.2 Conditions. The conditions specified in
         subsections 4.2(a) and (b) shall be satisfied on the Closing Date as if
         Loans were to be made on such date.

                  (j) Existing Credit Agreement. The Agent shall have received
         satisfactory evidence that all loans and other obligations of the
         Borrower under the Existing Credit Agreement have been indefeasibly
         paid in full, except for obligations relating to the Existing Letters
         of Credit which shall be Letters of Credit under this Credit Agreement.

                  (k) Appraisal. The Agent shall have received appraisals of the
         Eligible DC-9 Aircraft and the Eligible Other Aircraft, dated as of a
         current date addressed to the Agent and the Lenders, in form and
         substance satisfactory to the Agent and the Lenders.

                  (l) Certificate. The Agent shall have received a Borrowing
         Base Certificate dated as of August 31, 2001 executed by the Borrower
         and giving effect to the consummation of all transactions contemplated
         by this Credit Agreement which are to occur on the Closing Date.

                  (m) Stock Certificates. The Agent shall have received original
         stock certificates representing all of the issued and outstanding
         capital stock of the Guarantors, together with related stock powers
         executed by the Borrower in blank, pledged to the Agent pursuant to the
         Pledge Agreement.

                                      -40-
<PAGE>

                  (n) Other Documents. The Agent shall have received such other
         approvals, opinions, documents or materials as the Agent or any Lender
         shall reasonably request.

         4.2 Conditions to All Extensions of Credit. The obligation of each
Lender to make any Extension of Credit hereunder (including the initial Loans to
be made hereunder) is subject to the satisfaction of the following conditions
precedent on the date of making such Extension of Credit:

                  (a) Representations and Warranties. The representations and
         warranties made by the Borrower herein and by the Guarantors in the
         other Credit Documents, or which are contained in any certificate
         furnished at any time under or in connection herewith shall be true and
         correct on and as of the date of such Extension of Credit as if made on
         and as of such date (unless a representation and warranty is made as of
         a specific date, in which case, such representation and warranty shall
         be true and correct as of such date).

                  (b) No Default or Event of Default. No Default or Event of
         Default shall have occurred and be continuing on such date or after
         giving effect to the Extension of Credit to be made on such date unless
         such Default or Event of Default shall have been waived in accordance
         with this Credit Agreement.

                  (c) Additional Conditions to Revolving Loans. If such Loan is
         made pursuant to subsection 2.1, all conditions set forth in such
         subsection shall have been satisfied.

                  (d) Additional Conditions to Letters of Credit. If such
         Extension of Credit is made pursuant to subsection 2.2 all conditions
         set forth in such subsection shall have been satisfied.

         Each request for Extension of Credit and each acceptance by the
Borrower of an Extension of Credit shall be deemed to constitute a
representation and warranty by the Borrower as of the date of such Extension of
Credit that the applicable conditions in this Section 4.2 have been satisfied.

                                   SECTION 5

                         REPRESENTATIONS AND WARRANTIES

         To induce the Lenders to enter into this Credit Agreement and to make
the Extensions of Credit herein provided for, the Borrower hereby represents and
warrants to the Agent and to each Lender that as of the Closing Date, and at all
times thereafter:

         5.1 Organization and Qualification. Except as set forth below in this
Section 5.1, the Borrower and each of the Guarantors is a corporation or limited
liability company duly and validly organized and existing under the laws of the
State of its organization, as set forth on Schedule 5.14. The Borrower and each
of the Guarantors has the power and all necessary material licenses, permits and
franchises to own its respective assets and properties and to carry on its
respective business as now conducted or presently contemplated. The Borrower and
each

                                      -41-
<PAGE>

of the Guarantors is duly licensed or qualified to do business and is in good
standing in all jurisdictions in which failure to do so would have a Material
Adverse Effect. Notwithstanding the foregoing, Services-Kansas City, Inc. is not
existing in good standing as of the Closing Date, but as of October 12, 2001 and
at all times thereafter it shall be validly existing as a Missouri corporation
in good standing under the laws of the State of Missouri.

         5.2 Financial Statements. All of the financial statements of Borrower
and each of the Guarantors heretofore furnished to the Agent and the Lenders by
Borrower are accurate and complete and fairly present in all material respects
the financial condition and the results of operations of Borrower and each of
the Guarantors for the periods covered thereby and as of the relevant dates
thereof, all in accordance with GAAP, subject in the case of interim financial
statements to audit and year-end adjustments. There has been no material adverse
change in the business, properties or condition (financial or otherwise) of the
Borrower or any of the Guarantors since December 31, 2000, except as may be
otherwise disclosed in the Borrower's unaudited financial statements dated as of
March 31, 2001 and June 30, 2001 previously delivered to the Lenders. Borrower
has no knowledge of any material liabilities of any nature of the Borrower or
any Guarantor not previously disclosed in writing to Lenders.

         5.3 Authorization; Enforceability. The making, execution, delivery and
performance of this Credit Agreement and the other Credit Documents to be or
previously executed, delivered and performed by the Borrower and the Guarantors
pursuant to or in connection herewith or therewith and compliance with their
respective terms, have been duly authorized by all necessary action of the
Borrower and each Guarantor that is a party thereto. This Credit Agreement and
the other Credit Documents and all other documents or materials to be or
previously executed, delivered and performed by the Borrower pursuant to or in
connection herewith or therewith are the valid and binding obligations of the
Borrower and each Guarantor that is a party thereto, enforceable against it in
accordance with their respective terms.

         5.4 Absence of Conflicting Obligations. The making, execution, delivery
and performance of this Credit Agreement and the other Credit Documents to be or
previously executed, delivered and performed by Borrower pursuant to or in
connection with this Credit Agreement and compliance with their respective
terms, do not violate any presently existing provision of law or the articles of
incorporation or bylaws of the Borrower or any Guarantor, or any agreement to
which the Borrower or any Guarantor is a party or by which the Borrower or any
Guarantor or any of their respective assets is bound. Notwithstanding the
foregoing, upon execution of the Subsidiary Security Agreement, Midwest Express
Airlines will be in violation of the AAL Mortgage and Security Agreement, but as
of October 5, 2001 and at all times thereafter it will not be in violation of
the AAL Mortgage and Security Agreement.

         5.5 Taxes. Borrower and each Guarantor has filed all federal, state,
foreign and local tax returns which were required to be filed (subject to any
valid extensions of the time for filing), and have paid, or made provision for
the payment of, all taxes owed by them, and no tax deficiencies have been
assessed or, to Borrower's knowledge, proposed against Borrower or any
Guarantor.

                                      -42-
<PAGE>

         5.6 Absence of Litigation. Neither Borrower nor any Guarantor is a
party to, and so far as is known to the Borrower or any Guarantor there is no
threat of, any litigation or administrative proceeding which would, if adversely
determined, (i) cause any material impairment of the right to carry on the
respective business of the Borrower or any Guarantor; or (ii) cause any Material
Adverse Effect.

         5.7 Accuracy of Information. All information, certificates or
statements by Borrower given in, or pursuant to, this Credit Agreement (whether
in writing, by electronic messaging or otherwise) shall be accurate, true and
complete when given in all material respects.

         5.8 Title to Property. The Borrower and each Guarantor has good title
to, or a valid leasehold interest in, all assets and properties necessary to
conduct its respective business as now conducted or proposed to be conducted,
and there are no Liens on any of the respective assets or properties of the
Borrower or any Guarantor other than Permitted Liens. The Borrower and each
Guarantor has all licenses, permits, franchises, patents, copyrights, trademarks
and trade names, or rights thereto, reasonably necessary to conduct its
respective business as now conducted or proposed to be conducted, and neither
Borrower nor any Guarantor knows of any material conflict with or violation of
any valid rights of others with respect thereto.

         5.9 ERISA. Neither Borrower nor any Guarantor has any knowledge that
any Plan is in material noncompliance with the applicable provisions of ERISA or
the Internal Revenue Code. Neither Borrower nor any Guarantor has any knowledge
of any pending or threatened litigation or governmental proceeding or
investigation against or relating to any Plan, nor any knowledge of any
reasonable basis for any proceedings, claims or actions against or relating to
any Plan which, if adversely determined, would have a Material Adverse Effect.
Neither Borrower nor any Guarantor has any knowledge that the Borrower or any
Guarantor has incurred any "accumulated funding deficiency" within the meaning
of Section 302 of ERISA in connection with any Plan. Neither Borrower nor any
Guarantor has any knowledge that there has been any Reportable Event or
Prohibited Transaction (as such terms are defined in ERISA) with respect to any
Plan, or that the Borrower or any Guarantor has incurred any liability to the
PBGC under Section 4062 of ERISA in connection with any Plan.

         5.10 Fiscal Year. The Borrower's and each Guarantor's fiscal year ends
on December 31.

         5.11 Compliance With Laws. The Borrower and each Guarantor is in
compliance with all Laws to which such party is subject, other than such
noncompliance as can be cured, remedied or corrected at a cost not to exceed
$1,000,000 in the aggregate for the Borrower and the Guarantors.

         5.12 Regulation U. No part of the proceeds of the Loans will be used,
directly or indirectly, for the purpose of purchasing or carrying any margin
stock within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System or to extend credit to others for the purpose of
purchasing or carrying any such margin stock.

                                      -43-
<PAGE>

         5.13 Subsidiaries. The only Subsidiaries of the Borrower are the
Guarantors. Each Subsidiary has been organized under the laws of the United
States of America or a State thereof. The Borrower may organize one or more new
Subsidiaries after the Closing Date, provided that (i) no Default or Event of
Default exists as of the date any new Subsidiary is organized, (ii) the
organization of any new Subsidiary will not cause a Default or Event of Default
to occur, and (iii) the Borrower shall cause each new Subsidiary simultaneously
with its organization to execute and deliver a Guaranty to the Agent for the
benefit of the Lenders, together with such other Credit Documents, stock
certificates, stock powers, officer's certificates, legal opinions and other
approvals, documents, and materials as the Agent may reasonably require in
connection therewith and to provide to the Agent Liens in all of such
Subsidiary's tangible and intangible personal property, free of any Lien that is
not a Permitted Lien hereunder.

         5.14 Organization and Ownership of Subsidiaries. Schedule 5.14
correctly sets forth the name, jurisdiction of organization, and equity
ownership of each Subsidiary of the Borrower as of the date hereof. The Borrower
may update Schedule 5.14 from time to time to reflect changes therein permitted
by this Credit Agreement by delivering a revised Schedule 5.14 to the Agent and
to each Lender.

         5.15 Full Disclosure. No information, exhibit or report furnished by
Borrower or any Guarantor to any Lender in connection with the negotiation or
execution of this Credit Agreement contained any material misstatement of fact
as of the date when made or omitted to state a material fact or any fact
necessary to make the statements contained therein not misleading as of the date
when made.

         5.16 Absence of Default. Neither the Borrower nor any Guarantor is in
material default under any note, loan agreement, indenture, lease, mortgage,
security agreement or other contractual obligation binding upon such party
evidencing or securing amounts owing that exceed $1,000,000 in the aggregate for
the Borrower and the Guarantors. Notwithstanding the foregoing, upon execution
of the Subsidiary Security Agreement, Midwest Express Airlines will be in
violation of the AAL Mortgage and Security Agreement, but as of October 5, 2001
and at all times thereafter it will not be in violation of the AAL Mortgage and
Security Agreement.

         5.17 Environmental Matters. Except as set forth on Schedule 5.17:

                  (a) The facilities and properties owned, leased or operated by
         the Borrower and the Guarantors (the "Properties") do not contain any
         Materials of Environmental Concern in amounts or concentrations which
         constitute a violation of, or could give rise to material liability
         under, any Environmental Law.

                  (b) The Properties and all operations at the Properties are in
         compliance, and have in the last five years been in compliance, in all
         material respects with all applicable Environmental Laws, and there is
         no material contamination at, under or about the Properties or material
         violation of any Environmental Law with respect to the Properties or
         the business operated by the Borrower and the Guarantors (collectively,
         the "Business").

                                      -44-
<PAGE>

                  (c) Neither the Borrower nor any Guarantor has received any
         notice of violation, alleged violation, non-compliance, liability or
         potential liability regarding environmental matters or compliance with
         Environmental Laws with regard to any of the Properties or the Business
         which would have a Material Adverse Effect, nor does the Borrower or
         any Guarantor have knowledge or reason to believe that any such notice
         will be received or is being threatened.

                  (d) Materials of Environmental Concern have not been
         transported or disposed of from the Properties in violation of, or in a
         manner or to a location which could give rise to material liability
         under any Environmental Law, nor have any Materials of Environmental
         Concern been generated, treated, stored or disposed of at, on or under
         any of the Properties in violation of, or in a manner that could give
         rise to material liability under, any applicable Environmental Law.

                  (e) No judicial proceeding or governmental or administrative
         action is pending or, to the knowledge of the Borrower or any
         Guarantor, threatened, under any Environmental Law to which the
         Borrower or any Guarantor is or will be named as a party with respect
         to the Properties or the Business, nor are there any consent decrees or
         other decrees, consent orders, administrative orders or other orders,
         or other administrative or judicial requirements outstanding under any
         Environmental Law with respect to the Properties or the Business.

                  (f) There has been no unremediated release or threat of
         release of Materials of Environmental Concern at or from the
         Properties, or arising from or related to the operations of the
         Borrower or any Guarantor in connection with the Properties or
         otherwise in connection with the Business, in violation of or in
         amounts or in a manner that could give rise to a material liability
         under Environmental Laws.

         5.18 Use of Proceeds. The proceeds of the Revolving Loan shall be used
to refinance all of the existing Indebtedness outstanding under the Existing
Credit Agreement, to fund working capital requirements and for other general
corporate purposes not prohibited by this Credit Agreement.

         5.19 Solvency. The Borrower and each Guarantor, individually, and the
Borrower and the Guarantors, collectively, are, and after execution of this
Credit Agreement on the Closing Date and after giving effect to the Indebtedness
incurred hereunder on and after the Closing Date will be, Solvent.

         5.20 Holding Company; Investment Company. Neither the Borrower nor any
of its Subsidiaries is a "holding company", or a "subsidiary company" of a
"holding company", or an "affiliate" of a "holding company", as such terms are
defined in the Public Utility Holding Company Act of 1935; nor is it an
"investment company", or an "affiliated company" or a "principal underwriter" of
an "investment company", as such terms are defined in the Investment Company Act
of 1940.

                                      -45-
<PAGE>

                                   SECTION 6

                              AFFIRMATIVE COVENANTS

         The Borrower hereby covenants and agrees that on the Closing Date, and
thereafter for so long as this Credit Agreement is in effect and until the
Commitments have terminated, no Note or Letter of Credit remains outstanding and
unpaid and the Obligations, together with interest, Fees and all other amounts
owing to the Agent or any Lender hereunder, are paid in full:

         6.1 Payment. Borrower shall timely pay or cause to be paid the
principal of and interest on the Loans and all other amounts due under this
Credit Agreement and the other Credit Documents.

         6.2 Corporate Existence; Properties; Insurance. The Borrower and each
Guarantor shall: (a) except as permitted to the contrary pursuant to Section 7.3
and except as set forth herein solely with respect to Services-Kansas City,
maintain its existence (provided, however, that Services-Kansas City, shall have
been reinstated as a validly existing Missouri corporation not later than
October 12, 2001 and it shall at all times thereafter maintain its existence);
(b) conduct its respective business substantially as now conducted; (c) maintain
all assets (other than assets no longer used or useful in the conduct of its
business) in good repair, working order and condition, ordinary wear and tear
excepted; (d) maintain accurate records and books of account in accordance with
GAAP; and (e) maintain insurance of such nature and in such amounts as is
customarily maintained by companies engaged in the same or similar business and
as otherwise required by Section 4.1(b) hereof.

         6.3 Licenses. The Borrower and each Guarantor shall maintain in good
standing and in full force and effect each license, permit and franchise granted
or issued by any federal, state or local governmental agency or regulatory
authority that is reasonably necessary to the Borrower's or such Guarantor's
respective business.

         6.4 Reporting Requirements. Borrower shall furnish to Lenders such
information respecting the business, assets and financial condition of Borrower
and the Guarantors as Lenders may reasonably request and, without request:

                  (a) as soon as available, and in any event within ninety (90)
         days after the close of each fiscal year, a copy of the detailed annual
         audit report for such year and accompanying audited consolidated
         financial statements of Borrower and its Subsidiaries prepared in
         reasonable detail and in accordance with GAAP by independent certified
         public accountants of recognized standing selected by Borrower, and
         reasonably satisfactory to Lenders, which audit report shall be
         accompanied by: (i) an opinion of such accountants, in form and
         substance reasonably satisfactory to Lenders, to the effect that the
         same fairly presents the financial condition and the results of
         operations of Borrower for the periods and as of the relevant dates
         thereof, and (ii) such accountants' management letter to Borrower
         relating to such audit report;

                                      -46-
<PAGE>

                  (b) within thirty (30) days after the end of each month in
         each fiscal year, Borrower's unaudited consolidated balance sheets,
         income statements, statements of cash flow and such other information
         as Lenders may reasonably request of Borrower and its Subsidiaries as
         of the end of such month and of the comparable reporting period in the
         preceding fiscal year, all in reasonable detail and signed by an
         officer of the Borrower;

                  (c) within sixty (60) days after the close of each fiscal
         year, a copy of the pro forma monthly consolidated and consolidating
         financial operating plan of the Borrower and its Subsidiaries for the
         immediately succeeding fiscal year;

                  (d) within thirty (30) days after the end of each month in
         each fiscal year, an executed Borrowing Base Certificate containing
         information as of the end of such month;

                  (e) within forty-five (45) days after the end of each quarter
         in each fiscal year, an executed Borrower's Compliance Certificate
         containing information as of the end of such quarter;

                  (f) as soon as available, copies of all reports or materials
         submitted or distributed to shareholders of the Borrower or filed
         pursuant to the Securities Exchange Act of 1934;

                  (g) such other information (financial or otherwise) as may
         reasonably be requested by the Lenders.

         6.5 Taxes. Borrower and Guarantors shall pay all taxes and assessments
prior to the date on which penalties attach thereto, except for any tax or
assessment which is either not delinquent or which is being contested in good
faith and by proper proceedings and against which adequate reserves have been
provided.

         6.6 Inspection of Properties and Records. Borrower and Guarantors
shall, upon reasonable prior notice during normal business hours (provided that
no Event of Default has occurred and is continuing, in which event such notice
shall not be required) permit Lenders or their respective agents or
representatives to inspect any of the properties, books and financial records of
Borrower and the Guarantors, to examine and make copies of the books of accounts
and other financial records of Borrower and the Guarantors, and to discuss the
affairs, finances and accounts of Borrower and the Guarantors with, and to be
advised as to the same by, the representatives of the Borrower and the
Guarantors at such reasonable times and intervals as Lenders may designate.
Lenders may, at their sole discretion, conduct field examinations from time to
time of the Collateral and Borrower's and/or any Guarantor's books and records,
and Borrower shall reimburse Lenders for the reasonable costs of such
examinations, provided that if no Event of Default has occurred and is
continuing Borrower shall not be responsible for any such costs in excess of an
aggregate amount of $10,000 per fiscal year incurred by the Agent.

         6.7 Reference in Financial Statements. Borrower and Guarantors shall
include, or cause to be included, a general reference to this Credit Agreement
in all financial statements of Borrower or any Guarantor which are furnished to
financial reporting services, creditors and prospective creditors.

                                      -47-
<PAGE>

         6.8 Compliance with Laws. Borrower and Guarantors shall: (a) comply
with all applicable Environmental Laws and orders of regulatory and
administrative authorities with respect thereto, and (b) comply with all other
laws applicable to Borrower or any of their respective assets or operations;
other than such noncompliance as can be cured, remedied or corrected at a cost
not to exceed $1,000,000 in the aggregate for the Borrower and the Guarantors.

         6.9 Compliance with Agreements. Borrower and each Guarantor shall
perform and comply in all respects with the provisions of any agreement
(including without limitation any collective bargaining agreement), license,
regulatory approval, permit and franchise binding upon the Borrower or such
Guarantor or any of its respective assets or properties, other than such
nonperformance or noncompliance as can be cured, remedied or corrected at a cost
not to exceed $1,000,000 in the aggregate for the Borrower and the Guarantors.

         6.10 Notices. Borrower shall:

                  (a) as soon as possible and in any event within five (5)
         Business Days after becoming aware of the occurrence of any Default or
         Event of Default, notify the Agent in writing of such Default or Event
         of Default and set forth the details thereof and the action which is
         being taken or proposed to be taken by Borrower with respect thereto;

                  (b) promptly notify the Agent of the commencement of any
         litigation or administrative proceeding that would cause the
         representation and warranty of Borrower contained in Section 5.6 to be
         untrue;

                  (c) promptly notify the Agent (i) of the occurrence of any
         Reportable Event or Prohibited Transaction that has occurred with
         respect to any Plan, and (ii) of the institution by the PBGC or the
         Borrower or any Guarantor of proceedings under Title IV of ERISA to
         terminate any Plan;

                  (d) unless prohibited by applicable law, notify the Agent, and
         provide copies, immediately upon receipt, of any notice, pleading,
         citation, indictment, complaint, order or decree from any federal,
         state or local government agency or regulatory body, or any other
         source, asserting or alleging a circumstance or condition that requires
         or may require a financial contribution by the Borrower or any
         Guarantor under Environmental Laws or an investigation, clean-up,
         removal, remedial action or other response by or on the part of the
         Borrower or any Guarantor under Environmental Laws or which seeks
         damages or civil, criminal or punitive penalties from or against the
         Borrower or any Guarantor for an alleged violation of Environmental
         Laws;

                  (e) notify the Agent at least thirty (30) days prior to any
         change of the Borrower's or any Guarantor's name or its principal
         business address or its jurisdiction of incorporation; and

                  (f) promptly notify the Agent of the commencement of any
         investigation, litigation, or administrative or regulatory proceeding
         by, or the receipt of any notice,

                                      -48-
<PAGE>

         citation, pleading, order, decree or similar document issued by, any
         federal, state or local governmental agency or regulatory authority
         that results in, or may result in, the termination or suspension of any
         license, permit or franchise reasonably necessary to Borrower's or any
         Guarantor's respective business, or that imposes, or may result in the
         imposition of, a fine or penalty in excess of $1,000,000 in the
         aggregate for the Borrower and the Guarantors.

         6.11 Leverage Ratio. The Borrower shall maintain a Leverage Ratio: (i)
of not greater than 8.75 to 1.00 as at September 30, 2001, (ii) of not greater
than 6.00 to 1.00 as at December 31, 2001, (iii) of not greater than 5.00 to
1.00 as at March 31, 2002, and (iv) of not greater than 4.50 to 1.00 as at June
30, 2002.

         6.12 Fixed Charge Coverage Ratio. The Borrower shall maintain a Fixed
Charge Coverage Ratio (i) of not less than 1.00 to 1.00 as at September 30,
2001, (ii) of not less than 1.25 to 1.00 as at the end of each of its fiscal
quarters ending thereafter.

         6.13 Net Worth. The Borrower shall maintain Net Worth as at the end of
each of its fiscal quarters of not less than $110,000,000 plus fifty percent
(50%) of Consolidated Net Income (exclusive of any fiscal quarter ending prior
to October 1, 2001 and in each case without deduction for any quarterly losses)
plus one hundred percent (100%) of the net cash proceeds from the issuance of
equity securities by the Borrower subsequent to the Closing Date.

         6.14 Further Assurances. The Borrower will, and will cause each of its
Subsidiaries to, cooperate with the Lenders and the Agent and execute such
further instruments and documents as the Lenders or the Agent shall reasonably
request to carry out to their reasonable satisfaction the transactions
contemplated by this Credit Agreement and the other Loan Documents. Upon receipt
of an affidavit of an officer of the Agent or any Lender as to the loss, theft,
destruction or mutilation of any Note or any other Credit Document, and in the
case of any such mutilation, upon surrender and cancellation of such Note or
other Credit Document, the Borrower will issue, in lieu thereof, a replacement
Note or other Credit Document in the same principal amount thereof and otherwise
of like tenor. Without limiting the generality of the foregoing, the Borrower
will (a) cause Services-Kansas City to deliver to the Agent, not later than
October 12, 2001, with a counterpart for each Lender, each of the following: (i)
a ratification agreement, duly executed by an authorized officer or
representative of Services-Kansas City, in form and substance satisfactory to
the Agent and the Required Lenders, certifying that Services-Kansas City is in
compliance with the requirements of Sections 5.1 and 6.2 and ratifying the
validity and binding effect of all Credit Documents theretofore executed by
Services-Kansas City, (ii) copies of certificates of good standing, existence or
their equivalent with respect to Services-Kansas City, certified by the
appropriate Governmental Authority of the State of Missouri, (iii) an opinion of
Foley & Lardner, counsel for Services-Kansas City, dated as of the date of such
ratification agreement and addressed to the Agent and the Lenders, relating to
Services-Kansas City and in form and substance satisfactory to the Agent and the
Required Lenders, and (iv) such other approvals, opinions, documents and
materials relating to Services-Kansas City as the Agent or the Required Lenders
shall reasonably request; and (b) cause Midwest Express Airlines to deliver to
the Agent, not later than October 5, 2001, each of the following: (i) a copy of
a mortgage amendment agreement, in form and substance satisfactory to the Agent
and certified by

                                      -49-
<PAGE>

the Milwaukee County Register of Deeds Office as having been duly filed with
such office, amending the AAL Mortgage and Security Agreement so that the Liens
granted thereby do not cover any tangible or intangible real or personal
property other than real estate and fixtures at the premises located at 6744
South Howell Avenue, Oak Creek, Wisconsin, and (ii) UCC financing statement
amendments, in form and substance satisfactory to the Agent and in proper form
for filing with the Wisconsin Department of Financial Institutions and the
Milwaukee County Register of Deeds Office, amending existing financing
statements of record to show that the Liens granted by the AAL Mortgage and
Security Agreement do not cover any tangible or intangible real or personal
property other than real estate and fixtures at the premises located at 6744
South Howell Avenue, Oak Creek, Wisconsin.

                                   SECTION 7

                               NEGATIVE COVENANTS

         The Borrower hereby covenants and agrees that on the Closing Date, and
thereafter for so long as this Credit Agreement is in effect and until the
Commitments have terminated, no Note or Letter of Credit remains outstanding and
unpaid and the Obligations, together with interest, Fees and all other amounts
owing to the Agent or any Lender hereunder, are paid in full:

         7.1 Liens. Neither the Borrower nor the Guarantors shall incur, create,
assume or permit to be created or allow to exist any Lien upon or in any of its
or their assets or properties, except Permitted Liens.

         7.2 Indebtedness. Neither the Borrower nor the Guarantors shall incur,
create, assume, permit to exist, guarantee, endorse or otherwise become directly
or indirectly or contingently responsible or liable for any Indebtedness, except
Permitted Indebtedness.

         7.3 Consolidation or Merger. Except for Permitted Investments, neither
the Borrower nor the Guarantors shall consolidate with or merge into any other
Person, or permit another Person to merge into the Borrower or any Guarantor, or
acquire substantially all of the assets of any other Person, whether in one or a
series of transactions; provided, however, that a Guarantor shall be permitted
to consolidate with or merge into another Guarantor or the Borrower, so long as
the Borrower shall be the surviving corporation, upon providing the Lenders with
prior written notice thereof.

         7.4 Disposition of Assets. Neither the Borrower nor any Guarantor shall
sell, lease, assign, transfer or otherwise dispose any of its now owned or
hereafter acquired assets or properties, other than (i) sales and other
dispositions of Inventory in the ordinary course of business, (ii) dispositions
of obsolete equipment or equipment no longer used or useful in the business of
the Borrower or such Guarantor in an aggregate amount not to exceed $1,000,000
(provided that the foregoing limitation shall not apply if such Borrower or
Guarantor has entered into a binding agreement to purchase replacement equipment
having equal or greater value for scheduled delivery not later than sixty (60)
days after the date of such sale, lease or disposition), and (iii) sale of the
airport hanger owned by Astral Aviation, Inc. and located at 4292 South Howell
Avenue, Oak Creek, Wisconsin.

                                      -50-
<PAGE>

         7.5 Sale and Leaseback. Neither the Borrower nor the Guarantors shall
enter into any agreement, directly or indirectly, to sell or transfer any
Collateral and thereafter to lease back the same or similar property.

         7.6 Investments. Neither the Borrower nor the Guarantors shall make any
Investment in or to other Persons, except Permitted Investments.

         7.7 Restricted Payments.

                  (a) The Borrower shall not declare or pay any dividends on its
         capital stock;

                  (b) The Borrower shall not purchase, redeem, or otherwise
         acquire for value any of its capital stock, now or hereafter
         outstanding;

                  (c) The Borrower shall not make any distribution of assets to
         the Borrower's shareholders as such, whether in cash, assets or in
         obligations of the Borrower;

                  (d) The Borrower shall not allocate or otherwise set apart any
         sum for payment of any dividend or distribution on, or for the purchase
         or redemption of, any shares of its capital stock;

                  (e) The Borrower shall not reduce the outstanding principal
         amount of indebtedness owed to any shareholder of the Borrower.

         7.8 Transactions with Affiliates. Neither the Borrower nor the
Guarantors shall engage in any transaction with an Affiliate on terms materially
less favorable to Borrower or any Guarantor than would be available at the time
from a Person who is not an Affiliate, other than transactions arising under
stock option agreements and employment agreements with members of the Borrower's
senior management, sales of inventory, licensing of intellectual property, and
the provision of management services and payment of related fees among Borrower
and its Affiliates, in each case, in the ordinary course of business and
consistent with the Borrower's historic practices.

         7.9 Loans and Advances. Subject to the terms of Section 7.12, neither
the Borrower nor the Guarantors shall make any loan or advance to any Person,
except (i) extensions of credit in the ordinary course of business by Borrower
or the Guarantors to their respective customers and (ii) advances to officers
and employees of Borrower the Guarantors for travel and other expenses in the
ordinary course of business.

         7.10 Guarantees. Neither the Borrower nor the Guarantors shall
guarantee the Indebtedness of any Person, except as permitted by Section 7.2 of
this Credit Agreement.

         7.11 Subsidiaries. Except as otherwise permitted pursuant to subsection
(viii) of the definition of "Permitted Investments," neither the Borrower nor
the Guarantors shall form any Subsidiary that is not in existence on the Closing
Date.

                                      -51-
<PAGE>

         7.12 Maximum Loan Amount. The Borrower shall not permit the sum of the
aggregate amount of all outstanding Revolving Loans plus the aggregate amount of
all outstanding LOC Obligations plus the aggregate amount of all outstanding
Swing Line Loans plus the AAL Reserve to exceed the lesser of (x) the Borrowing
Base and (y) FIFTY-FIVE MILLION DOLLARS ($55,000,000) (as such aggregate maximum
amount may be reduced from time to time as provided herein).

                                   SECTION 8

                                EVENTS OF DEFAULT

         Upon the occurrence of any of the following events (each an "Event of
Default"):

                  (a) Borrower shall fail to pay on the date when due any
         installment of the principal of any Loan; or

                  (b) Borrower shall fail to pay on the date when due any
         interest on the principal of any Loan or any Fee or any other amount
         due under this Credit Agreement or any other Credit Document and such
         payment default shall continue unremedied for a period of 5 days or
         more; or

                  (c) Any representation or warranty made or deemed made by
         Borrower or any Guarantor herein or in any of the other Credit
         Documents or which is contained in any certificate, document or
         financial or other statement furnished by the Borrower or any Guarantor
         at any time under or in connection with this Credit Agreement shall
         prove to have been incorrect, false or misleading in any material
         respect on or as of the date made or deemed made; or

                  (d) (i) Borrower shall default in the due performance or
         observance of Section 6.4, 6.11, 6.12, 6.13, 7.3 or 7.12, or (ii)
         Borrower or any Guarantor shall default in the observance or
         performance of any other term, covenant or agreement contained herein
         or in any of the other Credit Documents (other than as described in
         subsections 8(a), 8(b), 8(c) or 8(d)(i) above), and such default shall
         continue unremedied for a period of 30 days or more after written
         notice thereof from the Agent or the Required Lenders; or

                  (e) Borrower or any Guarantor shall (i) default in any payment
         of principal of or interest on any Indebtedness (other than the Notes)
         in a principal amount outstanding of at least $1,000,000 in the
         aggregate for the Borrower and Guarantors beyond the period of grace
         (not to exceed 30 days), if any, provided in the instrument or
         agreement under which such Indebtedness was created and such
         Indebtedness has matured by its terms or is accelerated or the holder
         thereof shall have the right to accelerate such Indebtedness; or (ii)
         default in the observance or performance of any other agreement or
         condition relating to any such Indebtedness in a principal amount
         outstanding of at least $1,000,000 in the aggregate for the Borrower
         and the Guarantors or contained in any instrument or agreement
         evidencing, securing or relating thereto, or any other event shall
         occur or condition exist, the effect of which default or other event or
         condition is to cause, or the

                                      -52-
<PAGE>

         holder or holders of such Indebtedness or a trustee or agent on behalf
         of such holder or holders shall cause or have the right to cause, with
         the giving of notice if required, such Indebtedness to become due prior
         to its stated maturity; or

                  (f) (i) Borrower or any Guarantor shall commence any case,
         proceeding or other action (A) under any existing or future law of any
         jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
         reorganization or relief of debtors, seeking to have an order for
         relief entered with respect to it, or seeking to adjudicate it a
         bankrupt or insolvent, or seeking reorganization, arrangement,
         adjustment, winding-up, liquidation, dissolution, composition or other
         relief with respect to it or its debts, or (B) seeking appointment of a
         receiver, trustee, custodian, conservator or other similar official for
         it or for all or any substantial part of its assets, or Borrower or any
         Guarantor shall make a general assignment for the benefit of its
         creditors; or (ii) there shall be commenced against Borrower or any
         Guarantor any case, proceeding or other action of a nature referred to
         in clause (i) above which (X) results in the entry of an order for
         relief or any such adjudication or appointment or (Y) remains
         undismissed, undischarged or unbonded for a period of 60 days; or (iii)
         there shall be commenced against Borrower or any Guarantor any case,
         proceeding other action seeking issuance of a warrant of attachment,
         execution, distraint or similar process against all or any substantial
         part of its assets which results in the entry of an order for any such
         relief which shall not have been vacated, discharged, or stayed or
         bonded pending appeal within 60 days from the entry thereof; or (iv)
         Borrower or any Guarantor shall take any action in furtherance of, or
         indicating its consent to, approval of, or acquiescence in, any of the
         acts set forth in clause (i), (ii), or (iii) above; or (v) Borrower or
         any Guarantor shall generally not, or shall be unable to, or shall
         admit in writing its inability to, pay its debts as they become due; or

                  (g) One or more judgments or decrees shall be entered against
         Borrower or any Guarantor and such judgments or decrees shall not have
         been paid and satisfied, vacated, discharged, stayed or bonded pending
         appeal within 60 days from the entry thereof and involve in the
         aggregate a liability (to the extent not paid when due or covered by
         insurance) of $100,000 or more; or

                  (h) (i) Any Person shall engage in any Prohibited Transaction
         involving any Plan, (ii) any "accumulated funding deficiency" (as
         defined in Section 302 of ERISA), whether or not waived, shall exist
         with respect to any Plan or any Lien in favor of the PBGC or a Plan
         shall arise on the assets of the Borrower or any Commonly Controlled
         Entity, (iii) a Reportable Event shall occur with respect to, or
         proceedings shall commence to have a trustee appointed, or a trustee
         shall be appointed, to administer or to terminate, any Single Employer
         Plan, which Reportable Event or commencement of proceedings or
         appointment of a trustee is, in the opinion of the Required Lenders,
         likely to result in the termination of such Plan for purposes of Title
         IV of ERISA, (iv) any Single Employer Plan shall terminate for purposes
         of Title IV of ERISA, (v) the Borrower or any Commonly Controlled
         Entity shall, or in the opinion of the Required Lenders is likely to,
         incur any liability in connection with a withdrawal from, or the
         Insolvency or Reorganization of, any Multiemployer Plan or (vi) any
         other similar event or condition shall occur or exist with respect to a
         Plan; and in each case in clauses (i) through

                                      -53-
<PAGE>

         (vi) above, such event or condition, together with all other such
         events or conditions, if any, could reasonably be expected to have a
         Material Adverse Effect;

                  (i) Any Credit Document shall fail to be in full force and
         effect or to give the Agent and/or the Lenders the security interests,
         liens, rights, powers and privileges reasonably purported to be created
         thereby or the validity or enforceability thereof shall be contested by
         the Borrower or any Guarantor, or the Borrower or any Guarantor shall
         deny that the Borrower or any Guarantor has any or further liability or
         obligation under any Credit Document, or any action at law, suit or in
         equity or other legal proceeding to cancel, revoke or rescind any
         Credit Document shall be commenced by or on behalf of the Borrower or
         any of its Subsidiaries party thereto or any of their respective
         stockholders, or any court or any other governmental or regulatory
         authority or agency of competent jurisdiction shall make a
         determination that, or issue a judgment, order, decree or ruling to the
         effect that, any Credit Document is illegal, invalid or unenforceable
         in accordance with the terms thereof;

                  (j) Any event or condition shall occur or exist which,
         together with all other events or conditions, if any, could reasonably
         be expected to have a Material Adverse Effect;

                  (k) Any Person or "group" of Persons (within the meaning of
         Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as
         amended) obtains control of more than 40% of the issued and outstanding
         shares of capital stock of the Borrower having the power to elect a
         majority of the directors of the Borrower; or

                  (l) The Card Processing Agreement is terminated, amended,
         modified or restated and not replaced simultaneously with a Replacement
         Card Processing Agreement, or any Deposit or Reserved Funds (as defined
         in the Card Processing Agreement on the Closing Date) or any other
         holdback, escrow or similar reserve of funds under the Card Processing
         Agreement or the Replacement Card Processing Agreement shall be
         established or otherwise allowed or caused to be made or exist;

         then, and in any such event, (A) if such event is an Event of Default
         specified in paragraph (e) above, automatically the Commitments shall
         immediately terminate and the Loans (with accrued interest thereon),
         and all other amounts under the Credit Documents (including, without
         limitation, the maximum amount of all contingent liabilities under
         Letters of Credit which amount shall be paid to the Agent and held as
         cash collateral therefor) shall immediately become due and payable, and
         (B) if such event is any other Event of Default, either or both of the
         following actions may be taken: (i) with the written consent of the
         Required Lenders, the Agent may, or upon the written request of the
         Required Lenders, the Agent shall, by notice to the Borrower declare
         the Commitments to be terminated forthwith, whereupon the Commitments
         shall immediately terminate; and (ii) with the written consent of the
         Required Lenders the Agent may, or upon the written request of the
         Required Lenders, the Agent shall, by notice of default to the
         Borrower, declare the Loans (with accrued interest thereon) and all
         other amounts owing under this Credit Agreement and the Credit
         Documents to be due and payable forthwith and direct

                                      -54-
<PAGE>

         the Borrower to pay to the Agent cash collateral as security for the
         LOC Obligations for subsequent drawings under then outstanding Letters
         of Credit an amount equal to the maximum amount which may be drawn
         under Letters of Credit then outstanding, whereupon the same shall
         immediately become due and payable. Except as expressly provided above
         in this Section 8, presentment, demand, protest and all other notices
         of any kind are hereby expressly waived.

                                   SECTION 9

                                AGENCY PROVISIONS

         9.1 Appointment. Each Lender hereby designates and appoints Firstar as
Agent hereunder of such Lender to act as specified herein and in the other
Credit Documents, and each such Lender hereby authorizes the Agent as the agent
for such Lender, to take such action on its behalf under the provisions of this
Credit Agreement and the other Credit Documents and to exercise such powers and
perform such duties as are expressly delegated by the terms hereof and of the
other Credit Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere
herein and in the other Credit Documents, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein and therein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Credit Agreement or any of the other Credit Documents, or shall otherwise exist
against the Agent. The provisions of this Section are solely for the benefit of
the Agent and the Lenders and none of the Borrower or the Guarantors shall have
any rights as a third party beneficiary of the provisions hereof. In performing
its functions and duties under this Credit Agreement and the other Credit
Documents, the Agent shall act solely as agent of the Lenders and does not
assume and shall not be deemed to have assumed any obligation or relationship of
agency or trust with or for the Borrower or any Guarantor.

         9.2 Delegation of Duties. The Agent may execute any of its duties
hereunder or under the other Credit Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

         9.3 Exculpatory Provisions. Neither the Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates shall be (i)
liable for any action lawfully taken or omitted to be taken by it or such Person
under or in connection herewith or in connection with any of the other Credit
Documents except for its or such Person's own gross negligence or willful
misconduct, or (ii) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by Borrower or any
Guarantor contained herein or in any of the other Credit Documents or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Agent under or in connection herewith or in connection with
the other Credit Documents, or enforceability or sufficiency herefor of any of
the other Credit Documents, or for any failure of Borrower or any Guarantor to
perform its respective obligations hereunder or thereunder. The Agent shall not

                                      -55-
<PAGE>

be responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectability or sufficiency of this Credit Agreement, or any
of the other Credit Documents or for any representations, warranties, recitals
or statements made herein or therein or made by Borrower or any Guarantor in any
written or oral statement or in any financial or other statements, instruments,
reports, certificates or any other documents in connection herewith or therewith
furnished or made by or on behalf of the Borrower or any Guarantor to the Agent
or any Lender or be required to ascertain or inquire as to the performance or
observance of any of the terms, conditions, provisions, covenants or agreements
contained herein or therein or as to the use of the proceeds of the Loans or of
the existence or possible existence of any Default or Event of Default or to
inspect the properties, books or records of the Borrower or any Guarantor.

         9.4 Reliance on Communications. The Agent shall be entitled to rely,
and shall be fully protected in relying, upon any note, writing, resolution,
notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy,
telex or teletype message, statement, order or other document or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons and upon advice and statements of legal counsel
(including, without limitation, counsel to the Agent and any of the Lenders,
independent accountants and other experts selected by the Agent with reasonable
care). The Agent may deem and treat the Lenders as the owner of their respective
interests hereunder for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Agent in
accordance with Section 10.6(d). The Agent shall be fully justified in failing
or refusing to take any action under this Credit Agreement or under any of the
other Credit Documents unless it shall first receive such advice or concurrence
of the Required Lenders, or all Lenders, as the case may be, as it deems
appropriate. The Agent shall in all cases be fully protected in acting, or in
refraining from acting, hereunder or under any of the other Credit Documents in
accordance with a request of the Required Lenders (or to the extent specifically
provided in Section 10.1, all the Lenders) and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders
(including their successors and assigns).

         9.5 Notice of Default. The Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default hereunder (other
than the failure by the Borrower to pay any principal or interest on any Note
when due in accordance with the terms thereof or hereof) unless the Agent has
received notice from a Lender or the Borrower referring to the Credit Document,
stating that a Default or Event of Default exists, and specifying the
particulars thereof. In the event that the Agent receives such a notice or the
Borrower fails to pay any principal or interest on any Note when due, the Agent
shall give prompt notice thereof to the Lenders. The Agent shall take such
action with respect to such Default or Event of Default as shall be directed by
the Required Lenders, other than an action that the Agent reasonably believes
would be a violation of law or otherwise prohibited by the Credit Documents.

         9.6 Non-Reliance on Agent and Other Lenders. Each Lender expressly
acknowledges that neither the Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations
or warranties to it and that no act by the Agent or any Affiliate thereof
hereinafter taken, including any review of the affairs of the Borrower and the
Guarantors, shall be deemed to constitute any representation or warranty by the
Agent to any Lender. Each Lender represents to the Agent that it has,
independently and without reliance

                                      -56-
<PAGE>

upon the Agent or any other Lender, and based on such documents and information
as it has deemed appropriate, made its own appraisal of and investigation into
the business, assets, operations, property, financial and other conditions,
prospects and creditworthiness of the Borrower and the Guarantors and made its
own decision to make its Loans hereunder and enter into this Credit Agreement.
Each Lender also represents that it will, independently and without reliance
upon the Agent or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this
Credit Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Borrower and the Guarantors.
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Agent hereunder, the Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial or
other conditions, prospects or creditworthiness of the Borrower and the
Guarantors which may come into the possession of the Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates.

         9.7 Indemnification. The Lenders agree to indemnify the Agent in its
capacity as such (to the extent not reimbursed by the Borrower), ratably
according to their respective Commitment Percentages (or if the Commitments have
expired or been terminated, in accordance with the respective principal amounts
of outstanding Loans and Participation Interests of the Lenders), from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time
following the termination of this Credit Agreement) be imposed on, incurred by
or asserted against the Agent in its capacity as such in any way relating to or
arising out of this Credit Agreement or the other Credit Documents or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the Agent in
good faith under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the gross negligence or willful
misconduct of the Agent. If any indemnity furnished to the Agent for any purpose
shall, in the reasonable opinion of the Agent, be insufficient or become
impaired, the Agent may call for additional indemnity and cease, or not
commence, to do the acts indemnified against until such additional indemnity is
furnished.

         9.8 Agent in its Individual Capacity. The Agent and its affiliates may
make loans to, accept deposits from and generally engage in any kind of business
with the Borrower and the Guarantors as though the Agent were not Agent
hereunder. With respect to its Loans and Participation Interests, the Agent
shall have the same rights, obligations and powers under this Credit Agreement
and the other Credit Documents as any Lender and may exercise the same as though
it was not Agent, and the terms "Lender" and "Lenders" shall include the Agent
in its individual capacity.

         9.9 Successor Agent. The Agent may, at any time, resign upon 20 days'
written notice to the Lenders and the Borrower. Upon any such resignation, the
remaining Lenders shall have the

                                      -57-
<PAGE>

right to appoint a successor Agent (which shall be a Lender) with the prior
written consent of the Borrower, which consent shall not be unreasonably
withheld. If no successor Agent shall have been so appointed by the remaining
Lenders, and shall have accepted such appointment, within 30 days after the
notice of resignation, as appropriate, then the retiring Agent shall select a
successor Agent provided such successor is a commercial bank organized under the
laws of the United States of America or of any State thereof and has a combined
capital and surplus of at least $500,000,000. Upon the acceptance of any
appointment as Agent hereunder by a successor, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations as Agent, as appropriate, under this Credit
Agreement and the other Credit Documents and the provisions of this Section 9.9
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent under this Credit Agreement.

         9.10 Duty of Care. Notwithstanding any term in this Section 9 to the
contrary, Agent shall, in its capacity as Agent under this Credit Agreement, be
accountable to Lenders for the management and administration of the Loans in
accordance with the customary policies and procedures under which the Agent
administers loans for its own account.

                                   SECTION 10

                                  MISCELLANEOUS

         10.1 Amendments, Waivers and Release of Collateral. Neither this Credit
Agreement, nor any of the Notes, nor any of the other Credit Documents, nor any
terms hereof or thereof may be amended, supplemented, waived or modified except
in accordance with the provisions of this subsection nor may Collateral be
released except as specifically provided herein or in the other Credit
Documents. The Required Lenders may, or, with the written consent of the
Required Lenders, the Agent may, from time to time, (a) enter into with the
Borrower and/or any one or more of the Guarantors, as appropriate, written
amendments, supplements or modifications hereto and to the other Credit
Documents for the purpose of adding, amending or deleting any provisions of this
Credit Agreement or the other Credit Documents or (b) waive, on such terms and
conditions as the Required Lenders may specify in such instrument, any of the
requirements of this Credit Agreement or the other Credit Documents or any
Default or Event of Default and its consequences or (c) release Collateral in
accordance with the terms hereof or of the other Credit Documents or on such
other terms and conditions as the Required Lenders may agree; provided, however,
that no such waiver and no such amendment, waiver, supplement, modification or
release shall (i) reduce the amount or extend the scheduled date of maturity of
any Loan or Note or reimbursement obligation or any installment thereon, or
reduce the stated rate of any interest or fee payable hereunder (other than
interest at an increased post-default rate) or extend the scheduled date of any
payment thereof or increase the amount or extend the expiration date of any
Lender's Commitment or extend the expiry date of any Letter of Credit beyond the
Revolving Termination Date (except any Letter of Credit with respect to which
the LOC Obligations thereunder have been fully cash collateralized), in each
case without the written consent of each Lender directly affected thereby, or
(ii) amend, modify or waive any provision of this Section 10.1 or reduce the
percentage specified in the definition of Required Lenders, or consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under

                                      -58-
<PAGE>

this Credit Agreement, in each case without the written consent of all the
Lenders, or (iii) amend, modify or waive any provision of Section 9 without the
written consent of the then Agent, (iv) release any Guarantor or, except as
otherwise provided in the Credit Documents, any of the Collateral having a fair
market value in excess of $500,000 (whether individually or collectively with
any other Collateral to be released in connection therewith) without the written
consent of all of the Lenders, or (v) amend Section 3.12 without the written
consent of all Lenders. Any such waiver, any such amendment, supplement or
modification and any such release shall apply equally to each of the Lenders and
shall be binding upon the Borrower, the Guarantors, the Lenders, the Agent and
all future holders of the Notes. In the case of any waiver, the Borrower, the
Lenders and the Agent shall be restored to their former position and rights
hereunder and under the outstanding Loans and Notes and other Credit Documents,
and any Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.

         10.2 Notices. Except as otherwise provided in Section 2, all notices,
requests and demands to or upon the respective parties hereto to be effective
shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made (i) when
delivered by hand, (ii) when transmitted via telecopy (or other facsimile
device) on a Business Day between the hours of 8:30 a.m. and 5:00 p.m.
(Milwaukee, Wisconsin time) or on the following Business Day (if sent after 5:00
p.m. Milwaukee, Wisconsin time) to the number set out herein, (iii) the day
following the day on which the same has been delivered prepaid to a reputable
national overnight air courier service, or (iv) the third Business Day following
the day on which the same is sent by first class mail, postage prepaid, in each
case, addressed as follows in the case of the Borrower and the Agent, and as set
forth on Schedule 10.2 in the case of the Lenders, or to such other address as
may be hereafter notified by the respective parties hereto and any future
holders of the Notes:

The Borrower:            Midwest Express Holdings, Inc.
                         6744 South Howell Avenue
                         Oak Creek, Wisconsin  53154
                         Attn:  Treasurer
                         Phone: (414) 747-4000
                         Fax:  (414) 570-3954

                         with a copy to:

                         Foley & Lardner
                         777 East Wisconsin Avenue
                         Milwaukee, WI  53202
                         Attn:  Edward J. Hammond
                         Phone:  (414) 297-5619
                         Fax:  (414) 297-4900

                                      -59-
<PAGE>

The Agent:               U.S. Bank National Association,
                         d/b/a Firstar Bank N.A.
                         777 East Wisconsin Avenue
                         Milwaukee, Wisconsin  53202
                         Attn:  Jeffrey J. Janza
                         Phone:  (414) 765-6999
                         Fax:  (414) 765-4632

                         with a copy to:

                         Quarles & Brady LLP
                         411 East Wisconsin Avenue
                         Milwaukee, Wisconsin  53202-4497
                         Attn:  Andrew M. Barnes
                         Phone:  (414) 277-5105
                         Fax:  (414) 271-3552

         10.3 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Agent or any Lender, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies, powers
and privileges provided by law.

         10.4 Survival of Representations and Warranties. All representations
and warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Credit Agreement and the Notes and the making of the Loans,
provided that all such representations and warranties shall terminate on the
date upon which the Commitments have been terminated and all amounts owing
hereunder and under any Notes have been paid in full.

         10.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or
reimburse the Agent for all its respective out-of-pocket costs and expenses
incurred in connection with the negotiation, preparation, execution and closing
of, and any amendment, supplement or modification to, the Credit Documents and
any other documents prepared in connection herewith or therewith, and the
consummation of the transactions contemplated hereby and thereby, together with
the reasonable fees and disbursements of counsel to the Agent, (b) to pay or
reimburse each Lender and the Agent for all its costs and expenses incurred in
connection with the enforcement or preservation of any rights under this Credit
Agreement and any other Credit Documents, including, without limitation, the
reasonable fees and disbursements of counsel to the Agent and to the Lenders
(including reasonable allocated costs of in-house legal counsel), (c) on demand,
to pay, indemnify, and hold each Lender and the Agent harmless from, any and all
recording and filing fees and any and all liabilities with respect to, or
resulting from any delay in paying, stamp, excise and other similar taxes, if
any, which may be payable or determined to be

                                      -60-
<PAGE>

payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
the Credit Documents and any such other documents, and (d) to pay, indemnify,
and hold each Lender and the Agent and their Affiliates, officers, directors,
shareholders, employees and agents harmless from and against, any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of the
Credit Documents and any such other documents and the use, or proposed use, of
proceeds of the Loans (all the foregoing, collectively, the "Indemnified
Liabilities"); provided, however, that the Borrower shall not have any
obligation hereunder to the Agent or any Lender with respect to Indemnified
Liabilities arising from the gross negligence or willful misconduct of the Agent
or any such Lender if so determined by a final nonappealable judgment of a court
of competent jurisdiction. The agreements in this Section 10.5 shall survive
repayment of the Loans, Notes and all other amounts payable hereunder.

         10.6 Successors and Assigns; Participations; Purchasing Lenders.

                  (a) This Credit Agreement shall be binding upon and inure to
         the benefit of the Borrower, the Lenders, the Agent, all future holders
         of the Notes and their respective successors and assigns, except that
         the Borrower may not assign or transfer any of its rights or
         obligations under this Credit Agreement or the other Credit Documents
         without the prior written consent of each Lender (which consent shall
         not be unreasonably withheld) and no Lender may assign or transfer any
         of its rights or obligations under this Credit Agreement or the other
         Credit Documents without the prior written consent of the Borrower
         (which consent shall not be unreasonably withheld), except as otherwise
         permitted by this Section 10.6.

                  (b) Any Lender may, in the ordinary course of its commercial
         banking business and in accordance with applicable law (and with the
         consent of the Borrower, which consent shall not be unreasonably
         withheld, so long as no Event of Default has occurred and is
         continuing), at any time sell to one or more banks or other entities
         ("Participant" or "Participants") participating interests in any Loan
         owing to such Lender, any Note held by such Lender, any Commitment of
         such Lender, or any other interest of such Lender hereunder. In the
         event of any such sale by a Lender of participating interests to a
         Participant, such Lender's obligations under this Credit Agreement to
         the other parties to this Credit Agreement shall remain unchanged, such
         Lender shall remain solely responsible for the performance thereof,
         such Lender shall remain the holder of any such Note for all purposes
         under this Credit Agreement, and the Borrower and the Agent shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Credit Agreement.
         No Lender shall transfer or grant any participation under which the
         Participant shall have rights to approve any amendment to or waiver of
         this Credit Agreement or any other Credit Document except to the extent
         such amendment or waiver would (i) extend the scheduled maturity of any
         Loan or Note or any installment thereon in which such Participant is
         participating, or reduce the stated rate or extend the time of payment
         of interest or Fees thereon except in connection with a

                                      -61-
<PAGE>

         waiver of interest at the increased post-default rate) or reduce the
         principal amount thereof, or increase the amount of the Participant's
         participation over the amount thereof then in effect it being
         understood that a waiver of any Default or Event of Default shall not
         constitute a change in the terms of such participation, and that an
         increase in any Commitment or Loan shall be permitted without consent
         of any Participant if the Participant's participation is not increased
         as a result thereof, (ii) release all or substantially all of the
         Collateral, or (iii) consent to the assignment or transfer by the
         Borrower of any of its rights and obligations under this Credit
         Agreement. In the case of any such participation, the Participant shall
         not have any rights under this Credit Agreement or any of the other
         Credit Documents (the Participant's rights against such Lender in
         respect of such participation to be those set forth in the agreement
         executed by such Lender in favor of the Participant relating thereto)
         and all amounts payable by the Borrower hereunder shall be determined
         as if such Lender had not sold such participation, provided that each
         Participant shall be entitled to the benefits of Sections 3.6, 3.7,
         3.8, 3.9 and 10.5 with respect to its participation in the Commitments
         and the Loans outstanding from time to time; provided, that no
         Participant shall be entitled to receive any greater amount pursuant to
         such Sections than the transferor Lender would have been entitled to
         receive in respect of the amount of the participation transferred by
         such transferor Lender to such Participant had no such transfer
         occurred.

                  (c) Any Lender may, in the ordinary course of its commercial
         banking business and in accordance with applicable law, at any time
         sell or assign (i) to any Lender or any Affiliate thereof, except that
         any such sale or assignment shall be made only with the consent of the
         Borrower (which consent shall not be unreasonably withheld) if such
         sale or assignment would increase any amount payable by the Borrower
         hereunder, or (ii) to one or more additional banks or financial
         institutions ("Purchasing Lenders"), except that any such sale or
         assignment shall be made only with the consent of the Agent (which
         consent shall not be unreasonably withheld) and, so long as no Event of
         Default has occurred and is continuing or at any time if any such sale
         or assignment would increase any amount payable by the Borrower
         hereunder, with the consent of the Borrower (which consent shall not be
         unreasonably withheld): all or any part of its rights and obligations
         under this Credit Agreement and the Notes in minimum amounts of
         $10,000,000 (or, if less, the entire amount of such Lender's
         obligations) if the Purchasing Lender is not a Lender hereunder, or
         with no minimum amount if the Purchasing Lender is a Lender hereunder,
         pursuant to a Commitment Transfer Supplement, executed by such
         Purchasing Lender, such transferor Lender (and, in the case of a
         Purchasing Lender that is not then a Lender or an Affiliate thereof so
         long as no Event of Default has occurred and is continuing, by the
         Borrower and the Agent), and delivered to the Agent for its acceptance
         and recording in the Register (as defined in subsection (d)). Upon such
         execution, delivery, acceptance and recording, from and after the
         Transfer Effective Date specified in such Commitment Transfer
         Supplement, (x) the Purchasing Lender thereunder shall be a party
         hereto and, to the extent provided in such Commitment Transfer
         Supplement, have the rights and obligations of a Lender hereunder with
         a Commitment as set forth therein, and (y) the transferor Lender
         thereunder shall, to the extent provided in such Commitment Transfer
         Supplement, be released from its obligations under this Credit

                                      -62-
<PAGE>

         Agreement (and, in the case of a Commitment Transfer Supplement
         covering all or the remaining portion of a transferor Lender's rights
         and obligations under this Credit Agreement, such transferor Lender
         shall cease to be a party hereto). Such Commitment Transfer Supplement
         shall be deemed to amend this Credit Agreement to the extent, and only
         to the extent, necessary to reflect the addition of such Purchasing
         Lender and the resulting adjustment of Commitment Percentages arising
         from the purchase by such Purchasing Lender of all or a portion of the
         rights and obligations of such transferor Lender under this Credit
         Agreement and the Notes. On or prior to the Transfer Effective Date
         specified in such Commitment Transfer Supplement, the Borrower, at its
         own expense, shall execute and deliver to the Agent in exchange for the
         Note delivered to the Agent pursuant to such Commitment Transfer
         Supplement a new Note to the order of such Purchasing Lender in an
         amount equal to the Commitment assumed by it pursuant to such
         Commitment Transfer Supplement and, unless the transferor Lender has
         not retained a Commitment hereunder, a new Note to the order of the
         transferor Lender in an amount equal to the Commitment retained by it
         hereunder. Except for the expense of executing and delivering such new
         Note to the Agent pursuant to this Section, the Borrower shall not be
         obligated to pay any transfer fees, costs or expenses to the Agent or
         any Lender in connection with any such transfer. Such new Note shall be
         dated the Closing Date and shall otherwise be in the form of the Note
         replaced thereby. The Note surrendered by the transferor Lender shall
         be returned by the Agent to the Borrower marked "canceled."

                  (d) The Agent shall maintain at its address referred to in
         Section 10.2 a copy of each Commitment Transfer supplement delivered to
         it and a register (the "Register") for the recordation of the names and
         addresses of the Lenders and the Commitment of, and principal amount of
         the Loans owing to, each Lender from time to time. The entries in the
         Register shall be conclusive, in the absence of manifest error, and the
         Borrower, the Agent and the Lenders may treat each Person whose name is
         recorded in the Register as the owner of the Loan recorded therein for
         all purposes of this Credit Agreement. The Register shall be available
         for inspection by the Borrower or any Lender at any reasonable time and
         from time to time upon reasonable prior notice.

                  (e) Upon its receipt of a Commitment Transfer Supplement
         executed by a transferor Lender and a Purchasing Lender and, in the
         case of a Purchasing Lender that is not then a Lender (or an Affiliate
         thereof, by the Borrower and the Agent) together with payment to the
         Agent by the transferor Lender or the Purchasing Lender (as agreed
         between them), of a registration and processing fee of $3,500 for each
         Purchasing Lender listed in such Commitment Transfer Supplement, and
         the Notes subject to such Commitment Transfer Supplement, the Agent
         shall (i) accept such Commitment Transfer Supplement, (ii) record the
         information contained therein in the Register and (iii) give prompt
         notice of such acceptance and recordation to the Lenders and the
         Borrower.

                  (f) Subject to Section 10.15, the Borrower hereby authorizes
         each Lender to disclose to any Participant or Purchasing Lender each (a
         "Transferee"), and any permitted prospective Transferee any and all
         financial information in such Lender's possession concerning the
         Borrower and its Affiliates which has been delivered to such Lender by
         or on behalf of the Borrower pursuant to this Credit Agreement or which
         has been delivered

                                      -63-
<PAGE>

         to such Lender by or on behalf of the Borrower in connection with such
         Lender's credit evaluation of the Borrower and its Affiliates prior to
         becoming a party to this Credit Agreement.

                  (g) Nothing herein shall prohibit any Lender from pledging or
         assigning any of its rights under this Credit Agreement (including,
         without limitation, any right to payment of principal and interest
         under any Note) to any Federal Reserve Bank in accordance with
         applicable laws.

         10.7 Set-off. In addition to any rights and remedies of the Lenders
provided by law (including, without limitation, other rights of set-off), each
Lender shall have the right, without prior notice to the Borrower, any such
notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon the occurrence and during the continuance of any Event of
Default, to setoff and appropriate and apply any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any Affiliate, branch or agency thereof to or for the
credit or the account of the Borrower, or any part thereof in such amounts as
such Lender may elect, against and on account of the obligations and liabilities
of the Borrower to such Lender hereunder and claims of every nature and
description of such Lender against the Borrower, in any currency, whether
arising hereunder, under the Notes or under any documents contemplated by or
referred to herein or therein, as such Lender may elect, whether or not such
Lender has made any demand for payment. The aforesaid right of set-off may be
exercised by such Lender against the Borrower or against any trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver or execution, judgment or attachment creditor of the Borrower, or
against anyone else claiming through or against the Borrower or any such trustee
in bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding the
fact that such right of set-off shall not have been exercised by such Lender
prior to the occurrence of any Event of Default. Each Lender agrees promptly to
notify the Borrower and the Agent after any such set-off and application made by
such Lender; provided, however, that the failure to give such notice shall not
affect the validity of such set-off and application.

         10.8 Disclosure. Nothing herein shall prevent the Agent or any Lender
from disclosing any information delivered or made available to it by the
Borrower (a) to such Lender's Affiliates, the Agent or any Lender, (b) upon the
order of any court or administrative agency, (c) upon the request or demand of
any regulatory agency or authority, (d) to the extent reasonably required in
connection with any litigation to which the Agent, any Lender, or any of their
respective Affiliates may be a party, along with the Borrower or any of its
Affiliates, (e) to the extent reasonably required in connection with the
exercise of any right or remedy under this Credit Agreement, (f) to such Agent's
or Lender's legal counsel and financial consultants and independent auditors,
and (g) to any Transferee or permitted prospective Transferee.

         10.9 Termination of Existing Credit Agreement. The Existing Credit
Agreement shall be terminated automatically on the Closing Date.

                                      -64-
<PAGE>

         10.10 Table of Contents and Section Headings. The table of contents and
the Section and subsection headings herein are intended for convenience only and
shall be ignored in construing this Credit Agreement.

         10.11 Counterparts. This Credit Agreement may be executed by one or
more of the parties to this Credit Agreement on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

         10.12 Severability. Any provision of this Credit Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         10.13 Integration. This Credit Agreement, the Notes and the other
Credit Documents represent the agreement of the Borrower, the Agent and the
Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Agent, the Borrower or any
Lender relative to the subject matter hereof not expressly set forth or referred
to herein or in the Notes.

         10.14 Governing Law. This Credit Agreement and the other Credit
Documents and the rights and obligations of the parties under this Credit
Agreement and the other Credit Documents shall be governed by, and construed and
interpreted in accordance with, the internal laws of the State of Wisconsin
without giving effect to its conflicts of law provisions.

         10.15 Consent to Jurisdiction and Venue. All judicial proceedings
brought against the Borrower with respect to this Credit Agreement, any Note or
any of the other Credit Documents shall be brought in any state or federal court
of competent jurisdiction in the State of Wisconsin, and, by execution and
delivery of this Credit Agreement, the Borrower accepts, for itself and in
connection with its properties, generally and unconditionally, the exclusive
jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any
final judgment rendered thereby in connection with this Credit Agreement from
which no appeal has been taken or is available. The Borrower, the Agent and the
Lenders irrevocably waive any objection, including, without limitation, any
objection to the laying of venue or based on the grounds of forum non conveniens
which it may now or hereafter have to the bringing of any such action or
proceeding in any such jurisdiction. Nothing herein shall limit the right of any
Lender to bring proceedings against the Borrower in the court of any other
jurisdiction.

         10.16 Confidentiality. The Agent and each of the Lenders agrees to keep
confidential (and to use commercially reasonable efforts to cause its respective
agents and representatives to keep confidential) the Information (as defined
below) and all copies thereof, extracts therefrom and analyses or other
materials based thereon, except that the Agent or any Lender shall be permitted
to disclose Information (a) to such of its respective officers, directors,
employees, agents, affiliates and representatives as need to know such
Information, (b) to a Transferee or permitted potential Transferee of such
Lender or any direct or indirect contractual counterparty in any swap agreement
relating to the Loans or such potential assignee's or participant's or

                                      -65-
<PAGE>

counterparty's advisors who need to know such Information (provided that any
such potential assignee or participant or counterparty shall, and shall use its
commercially reasonable efforts to cause its advisors to, keep confidential all
such information on the terms set forth in this Section 10.15, (c) to the extent
requested by any examiner or regulatory authority, (d) to the extent otherwise
required by applicable laws and regulations or by any subpoena or similar legal
process, (e) in connection with any suit, action or proceeding relating to the
enforcement of its rights hereunder or under the other Credit Documents or (f)
to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section 10.15 or (ii) becomes available to the Agent
any Lender on a nonconfidential basis from a source other than the Borrower. For
the purposes of this Section, "Information" shall mean all financial statements,
certificates, reports, agreements and information (including all analyses,
compilations and studies prepared by the Agent or any Lender based on any of the
foregoing) that are received from the Borrower and related to the Borrower or
any Subsidiary of the Borrower, other than any of the foregoing that were
available to the Agent or any Lender on a nonconfidential basis prior to its
disclosure thereto by the Borrower, and which are in the case of Information
provided after the date hereof, clearly identified at the time of delivery as
confidential. The provisions of this Section 10.15 shall remain operative and in
full force and effect regardless of the expiration and term of this Agreement.

         10.17 Acknowledgments. The Borrower hereby acknowledges that:

                  (a) it has been advised by counsel in the negotiation,
         execution and delivery of each Credit Document;

                  (b) neither the Agent nor any Lender has any fiduciary
         relationship with or duty to the Borrower or any of its Affiliates
         arising out of or in connection with this Credit Agreement and the
         relationship between Agent and Lenders, on one hand, and the Borrower
         and its Affiliates, on the other hand, in connection herewith is solely
         that of creditor and debtor; and

                  (c) no joint venture exists among the Lenders or among the
         Borrower, any of its Affiliates and the Lenders.

         10.18 Waivers of Jury Trial. THE BORROWER, THE AGENT AND THE LENDERS
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
CREDIT AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

         10.19 Limitation of Liability. THE BORROWER HEREBY WAIVE ANY RIGHT ANY
OF THEM MAY HAVE TO CLAIM OR RECOVER FROM THE AGENT AND THE LENDERS ANY
EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES.

                                      -66-
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Credit Agreement to be duly executed and delivered as of the date first
above written.

BORROWER:                                        MIDWEST EXPRESS HOLDINGS, INC.

                                                 By: /s/ Robert Bahlman
                                                    ---------------------------
                                                 Title: Chief Financial Officer

                                      -67-
<PAGE>

LENDERS:                                         U.S. BANK NATIONAL ASSOCIATION,
                                                 d/b/a FIRSTAR BANK, N.A., in
                                                 its capacity as Agent and as a
                                                 Lender

                                                 By: /s/ Jeff Janza
                                                    ----------------------------
                                                 Title: Vice President

                                      -68-
<PAGE>

                                                BANK ONE,
                                                NA (Main
                                                Office
                                                Chicago)

                                                By: /s/ A.F. Maggiore
                                                   ----------------------------
                                                Title: Director, Capital Markets

                                      -69-
<PAGE>

                                                 M&I
                                                 MARSHALL
                                                 & ILSLEY
                                                 BANK

                                                 By: /s/ Mark Czarnecki
                                                 Title: Assistant Vice President

                                                 By: /s/ James Miller
                                                 Title: Vice President

                                      -70-
<PAGE>

                         LIST OF SCHEDULES AND EXHIBITS

SCHEDULE 1.1..........ELIGIBLE DC-9 AIRCRAFT and ELIGIBLE OTHER AIRCRAFT

SCHEDULE 1.2 .........EXISTING LETTERS OF CREDIT

SCHEDULE 1.3 .........EXISTING LIENS

SCHEDULE 1.4 .........EXISTING REVOLVING LOANS

SCHEDULE 2.1(a) ......REVOLVING COMMITMENTS, LOC COMMITMENTS and SWING LINE
                       COMMITMENT PERCENTAGES

SCHEDULE 2.1(d) ......APPLICABLE PERCENTAGES

SCHEDULE 5.14 ........SUBSIDIARIES

SCHEDULE 5.17 ........ENVIRONMENTAL MATTERS

SCHEDULE 10.2 ........NOTICES, DOMESTIC LENDING OFFICES and EURODOLLAR LENDING
                       OFFICES

EXHIBIT 2.1(e) .......REVOLVING NOTE

EXHIBIT 2.1(b)(i) ....LOAN REQUEST

EXHIBIT 3.2 ..........NOTICE FOR CONVERSION/EXTENSION OF LOANS

EXHIBIT 4.1(a)(ix) ...SUBSIDIARY GUARANTY

EXHIBIT 4.1(c) .......CERTIFICATE AS TO FINANCIAL CONDITION

EXHIBIT 4.1(f) .......FORM OF CERTIFICATE OF SECRETARY OF BORROWER and EACH
                       GUARANTOR

EXHIBIT 4.1(l) .......BORROWING BASE CERTIFICATE

EXHIBIT 4.1(m) .......BORROWER'S COMPLIANCE CERTIFICATE

EXHIBIT 10.6(c) ......COMMITMENT TRANSFER SUPPLEMENT

<PAGE>
                                  SCHEDULE 1.1

               ELIGIBLE DC-9 AIRCRAFT and ELIGIBLE OTHER AIRCRAFT

   Manufacturer             Type/Model           Reg #               Serial #
   ------------             ----------           -----               --------
   McDonnell Douglas        DC-9-14              N80ME              45795
   McDonnell Douglas        DC-9-15              N300ME             45718
   McDonnell Douglas        DC-9-14              N400ME             45727
   McDonnell Douglas        DC-9-14              N500ME             45711
   McDonnell Douglas        DC-9-14              N600ME             45725
   McDonnell Douglas        DC-9-14              N700ME             45696
   McDonnell Douglas        DC-9-14              N800ME             45842
   McDonnell Douglas        DC-9-14              N900ME             45841
   McDonnell Douglas        DC-9-32              N301ME             47190
   McDonnell Douglas        DC-9-32              N302ME             47102
   McDonnell Douglas        DC-9-32              N401ME             47133
   McDonnell Douglas        DC-9-32              N501ME             47132
   McDonnell Douglas        DC-9-32              N502ME             48132
   McDonnell Douglas        DC-9-32              N602ME             48133
   McDonnell Douglas        MD-81                N804ME             48030
   McDonnell Douglas        MD-81                N806ME             48032
   McDonnell Douglas        MD-81                N807ME             48033
   McDonnell Douglas        MD-82                N809ME             48071
   McDonnell Douglas        MD-82                N810ME             48072
   McDonnell Douglas        MD-81                N812ME             48006
   McDonnell Douglas        MD-81                N813ME             48007
   McDonnell Douglas        MD-81                N814ME             48010

<PAGE>

                                        SCHEDULE 1.2

                                  EXISTING LETTERS OF CREDIT

<TABLE>
<CAPTION>
AUGUST, 2001

  L/C #      U.S. Dollar Amt.                       Beneficiary                               Expiry Date

<S>         <C>               <C>                                                              <C>
  S121511   $    93,000.00                    City of Los Angeles, CA                           2/28/02
  S121582   $    15,000.00                   Lee County Port Authority                         12/12/01
  S121584   $    10,000.00                      Dynair Fueling, Inc.                           12/12/01
  S121498   $    13,736.65                    Greater Toronto Airports                          1/3/02
  S121508   $   100,000.00                  Airlines Reporting Corporation                      2/17/02
  S121524   $    30,922.00               San Francisco International Airport                    3/15/02
  S121538   $    39,787.21                     Greater Toronto Airports                         4/21/02
  S121542   $    10,000.00                         Air Cargo, Inc.                              5/4/02
  S121532   $     5,000.00               Clark County Department of Aviation                    4/30/02
  S121546   $     6,165.00                     Columbus Municipal Airport                       5/19/02
  S121551   $    30,000.00                       City of St. Louis                              5/31/02
  S121556   $     8,200.00            Metropolitan Nashville Airport Authority                  6/4/02
  S121569   $     3,500.00                      Kenton County Airport                           7/15/02
  S121574   $    93,044.70                Kansas City International Airport                     9/1/02
  S121578   $     4,196.00    Regional Airport Authority of Louisville & Jefferson County       8/16/02
  S121580   $    11,774.27                     Greater Toronto Airports                         9/19/02
  S121530   $ 1,032,000.00                       Sentry Insurance                               3/17/02
  S121576   $ 8,023,575.00                     Firstar Trust Company                            8/15/02
  S121981   $     7,500.00                      Delta Air Lines, Inc.                           4/30/02
  S124139   $    55,000.00           Port Authority of New York and New Jersey                  2/8/02
  S124140   $    75,000.00           Port Authority of New York and New Jersey                  2/8/02
  S124375   $ 7,103,562.00                      Firstar Trust Company                           4/15/02

</TABLE>

<PAGE>

                                  SCHEDULE 1.3

                                 EXISTING LIENS

1.   Liens on a Fairchild Dornier 328-300 jet aircraft with registration number
     356SK and serial number 3163 and associated engines, which was debt
     financed with Kreditanstalt Fur Wiederaufbau ("KfW") of Germany in February
     2001.

2.   Liens on a Fairchild Dornier 328-300 jet aircraft with registration number
     357SK and serial number 3164 and associated engines, which was debt
     financed with KfW of Germany in March 2001.

3.   Liens on a Fairchild Dornier 328-300 jet aircraft with registration number
     358SK and serial number 3188 and associated engines, which was debt
     financed with KfW of Germany in May 2001.

4.   Liens on a McDonnell-Douglas MD-81 aircraft with registration number
     803ME and serial number 48029 and associated engines, which was debt
     financed with Siemens Financial Services, Inc. in June 2001.

5.   Liens granted by the AAL Mortgage and Security Agreement to secure the AAL
     Loan, provided, however, that the outstanding principal balance of the AAL
     Loan shall not exceed $2,937,273.94 at any time after the Closing Date, and
     further provided, that after October 5, 2001 such Liens shall not cover any
     tangible or intangible real or personal property other than real estate and
     fixtures at the premises located at 6744 South Howell Avenue, Oak Creek,
     Wisconsin.

<PAGE>
                                 SCHEDULE 2.1(a)

                     REVOLVING COMMITMENTS, LOC COMMITMENTS

                      and SWING LINE COMMITMENT PERCENTAGES

<TABLE>
<CAPTION>
---------------------------------------- ------------------------------- ----------------------------------
                                            Revolving Commitment Amount    Revolving Commitment Percentage
---------------------------------------- ------------------------------- ----------------------------------
<S>                                                         <C>                                   <C>
U.S. Bank National Association, d/b/a                       $26,500,000                           48.1818%
Firstar Bank, N.A.
---------------------------------------- ------------------------------- ----------------------------------
M&I Marshall & Ilsley Bank                                  $20,500,000                           37.2727%
---------------------------------------- ------------------------------- ----------------------------------
Bank One, NA                                                 $8,000,000                           14.5455%
---------------------------------------- ------------------------------- ----------------------------------
                                 Totals                     $55,000,000                          100.0000%
---------------------------------------- ------------------------------- ----------------------------------

<CAPTION>

---------------------------------------- ------------------------------- ----------------------------------
                                                  LOC Commitment Amount          LOC Commitment Percentage
---------------------------------------- ------------------------------- ----------------------------------
<S>                                                         <C>                                   <C>
U.S. Bank National Association, d/b/a                       $12,045,450                           48.1818%
Firstar Bank, N.A.
---------------------------------------- ------------------------------- ----------------------------------
M&I Marshall & Ilsley Bank                                   $9,318,175                           37.2727%
---------------------------------------- ------------------------------- ----------------------------------
Bank One, NA                                                 $3,636,375                           14.5455%
---------------------------------------- ------------------------------- ----------------------------------
                                 Totals                     $25,000,000                          100.0000%
---------------------------------------- ------------------------------- ----------------------------------
</TABLE>

<PAGE>

---------------------------------------- --------------------------------------
                                              Swing Line Commitment Percentage
---------------------------------------- --------------------------------------
U.S. Bank National Association, d/b/a                                 48.1818%
Firstar Bank, N.A.
---------------------------------------- --------------------------------------
M&I Marshall & Ilsley Bank                                            37.2727%
---------------------------------------- --------------------------------------
Bank One, NA                                                          14.5455%
---------------------------------------- --------------------------------------
                                 Totals                              100.0000%
---------------------------------------- --------------------------------------

<PAGE>
                                                  SCHEDULE 2.1(d)

                                              APPLICABLE PERCENTAGES

<TABLE>
<CAPTION>

   ---------------- ---------------------- ----------------------- --------------------- ---------------------
    Pricing Level      Leverage Ratio      Applicable Percentage        Applicable            Applicable
                                               for Eurodollar           Percentage          Percentage for
                                                   Loans              for Letter of      Unused Facility Fee
                                                                        Credit Fee
   ---------------- ---------------------- ----------------------- --------------------- ---------------------
<S>                 <C>                             <C>                    <C>                   <C>
          3               >3.0:1.0                  2.50                   1.50                  0.50
                          -
   ---------------- ---------------------- ----------------------- --------------------- ---------------------
          2         >2.0:1.0 but <3.0:1.0           2.00                   1.25                 0.375
                    -
   ---------------- ---------------------- ----------------------- --------------------- ---------------------
          1               <2.0:1.0                  1.50                   1.00                  0.25
   ---------------- ---------------------- ----------------------- --------------------- ---------------------

</TABLE>

<PAGE>

                                  SCHEDULE 5.14

                                  SUBSIDIARIES

<TABLE>
<CAPTION>

             Name                                 Jurisdiction                    Ownership

<S>                                             <C>                         <C>
Midwest Express Airlines, Inc.                      Wisconsin                        100%
                                                  (corporation)

Astral Aviation, Inc.                                Delaware                   Midwest Express
                                                  (corporation)                 Airlines, Inc.
                                                                                     100%

Midwest Express Services - Omaha, Inc.               Nebraska                   Midwest Express
                                                  (corporation)                 Airlines, Inc.
                                                                                     100%

Midwest Express Services - Kansas City, Inc.         Missouri                   Midwest Express
                                                  (corporation)                 Airlines, Inc.
                                                                                     100%

YX Properties, LLC                                   Nebraska                   Midwest Express
                                                (limited liability          Services - Omaha, Inc.
                                                     company)                        100%
</TABLE>

<PAGE>

                                                   SCHEDULE 5.17

                                               ENVIRONMENTAL MATTERS

                                                       None

<PAGE>

<TABLE>
                                                   SCHEDULE 10.2

                         NOTICES, DOMESTIC LENDING OFFICES and EURODOLLAR LENDING OFFICES

<CAPTION>

------------------------------- ---------------------------- ---------------------------- ----------------------------
                                        Address for            Domestic Lending Office     Eurodollar Lending Office
                                          Notices
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                             <C>                          <C>                          <C>
U.S. Bank National              777 East Wisconsin Avenue    777 East Wisconsin Avenue    777 East Wisconsin Avenue
Association, d/b/a Firstar      Milwaukee, Wisconsin 5320    Milwaukee, Wisconsin 53202   Milwaukee, Wisconsin 53202
Bank, N.A.
------------------------------- ---------------------------- ---------------------------- ----------------------------
M&I Marshall & Ilsley Bank      770 North Water Street       770 North Water Street       770 North Water Street
                                Milwaukee, Wisconsin 53202   Milwaukee, Wisconsin 53202   Milwaukee, Wisconsin 53202
------------------------------- ---------------------------- ---------------------------- ----------------------------
Bank One, NA                    111 East Wisconsin Avenue    111 East Wisconsin Avenue    111 East Wisconsin Avenue
                                Milwaukee, Wisconsin 53202   Milwaukee, Wisconsin 53202   Milwaukee, Wisconsin 53202
------------------------------- ---------------------------- ---------------------------- ----------------------------
</TABLE>

<PAGE>

                                 EXHIBIT 2.1(e)

                                 REVOLVING NOTE

$______________                                                  August 31, 2001

         FOR VALUE RECEIVED, Midwest Express Holdings, Inc., a Wisconsin
corporation (the "Borrower"), hereby promises to pay to the order of [         ]
(the "Lender"):

                  (a) on the Revolving Termination Date the principal amount of
         [ ] Dollars ($______) or, if less, the aggregate unpaid principal
         amount of Loans advanced by the Lender to the Borrower pursuant to the
         Senior Secured Revolving Credit Agreement dated as of August 31, 2001,
         among the Borrower, the Lender, the other lenders party thereto and
         U.S. Bank National Association, d/b/a Firstar Bank, N.A., as Agent (the
         "Credit Agreement"); and

                  (b) interest on the principal balance hereof from time to time
         outstanding from the date of this Note through and including the
         maturity date hereof at the times and at the rates provided in the
         Credit Agreement.

         This Note constitutes one of the Notes issued under the Credit
Agreement, to which Credit Agreement reference is hereby made for a statement of
the terms and conditions on which loans in part evidenced hereby were or may be
made, and for a description of the conditions upon which this Note may be
prepaid, in whole or in part, or its maturity accelerated.

         This Note evidences borrowings under and has been issued by the
Borrower in accordance with the terms of the Credit Agreement. The Lender and
any holder hereof is entitled to the benefits of the Credit Agreement and the
other Credit Documents, and may enforce the agreements of the Borrower contained
therein, and any holder hereof may exercise the respective remedies provided for
thereby or otherwise available in respect thereof, all in accordance with the
respective terms thereof. All capitalized terms used in this Note and not
otherwise defined herein shall have the same meanings herein as in the Credit
Agreement.

         The Borrower irrevocably authorizes the Lender to make or cause to be
made, at or about the date of any Loan made to the Borrower or at the time of
receipt of any payment of principal of this Note, an appropriate notation on the
grid attached to this Note, or the continuation of such grid, or any other
similar record, including computer records, reflecting the making of such Loan
or (as the case may be) the receipt of such payment. The outstanding amount of
the Loans set forth on the grid attached to this Note, or the continuation of
such grid, or any other similar record, including computer records, maintained
by the Lender with respect to any Loans made to the Borrower shall be prima
facie evidence of the principal amount thereof owing and unpaid by

<PAGE>

the Borrower to the Lender, but the failure to record, or any error in so
recording, any such amount on any such grid, continuation or other record shall
not limit or otherwise affect the obligation of the Borrower hereunder or under
the Credit Agreement to make payments of principal and of interest on this Note
when due.

         The Borrower has the right in certain circumstances and the obligation
under certain other circumstances to prepay the whole or part of the principal
of this Note severally owing by the Borrower on the terms and conditions
specified in the Credit Agreement.

         If any one or more of the Events of Default shall occur and be
continuing with respect to the Borrower, the entire unpaid principal amount of
this Note owing by the Borrower and all of the unpaid interest accrued thereon
may become or be declared due and payable in the manner and with the effect
provided in the Credit Agreement.

         No delay or omission on the part of the Lender or any holder hereof in
exercising any right hereunder shall operate as a waiver of such right or of any
other rights of the Lender or such holder, nor shall any delay, omission or
waiver on any one occasion be deemed a bar or waiver of the same or any other
right on any further occasion.

         Except to the extent otherwise provided in the Credit Agreement, the
Borrower hereby waives presentment, demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance,
default or enforcement of this Note, and assents to any extension or
postponement of the time of payment or any other indulgence, to any
substitution, exchange or release of collateral and to the addition or release
of any other party or person primarily or secondarily liable.

         THIS NOTE AND THE OBLIGATIONS OF THE BORROWER HEREUNDER SHALL FOR ALL
PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
WISCONSIN.

IN WITNESS WHEREOF, the undersigned has caused this Note to be executed as of
the day and year first above written.

                                          MIDWEST EXPRESS HOLDINGS, INC.

                                          By:     ______________________________

                                          Its:    ______________________________

                                      -2-
<PAGE>

                                EXHIBIT 2.1(b)(i)

                                  LOAN REQUEST

Date:    ____________, 200__

To:      U.S. Bank National Association, d/b/a Firstar Bank, N.A., as Agent for
         the Lenders party to the Senior Secured Revolving Credit Agreement
         dated as of August 31, 2001 (as extended, renewed, amended or restated
         from time to time, the "Credit Agreement") among Midwest Express
         Holdings, Inc., (the "Borrower"), the Agent and the Lenders

Ladies and Gentlemen:

         The undersigned Borrower refers to the Credit Agreement, the terms
defined therein being used herein as therein defined, and hereby gives you
notice irrevocably, pursuant to Section 2.1(b) of the Credit Agreement, of the
Borrowing specified below:

                  1.  The Business Day of the proposed Borrowing is
         ________________________, _____.

                  2.  The aggregate amount of the proposed Borrowing is
         _______________________.

                  3.  The Borrowing is to be comprised of ___________ of
         [Base Rate] [Eurodollar] Loans.

                  4.  The duration of the Interest Period for the Eurodollar
         Loans included in the Borrowing shall be _____ months.

         The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the proposed Borrowing,
before and after giving effect thereto and to the application of the proceeds
therefrom:

                  (a) the representations and warranties of the Borrower made by
         the Borrower in the Credit Agreement and by the Guarantors in the Other
         Credit Documents, or which are contained in any certificate furnished
         at any time under or in connection therewith shall be true and correct
         on and as of the date of such Loan as if made on and as of such date
         (unless a representation and warranty is made as of a specific date, in
         which case, such representation and warranty shall be true and correct
         as of such date); and

<PAGE>

                  (b) no Default or Event of Default has occurred and is
         continuing, or would result from such proposed Borrowing.

                                          MIDWEST EXPRESS HOLDINGS, INC.

                                          By: _______________________________
                                          Title: ____________________________

<PAGE>

                                   EXHIBIT 3.2

                         NOTICE FOR CONVERSION/EXTENSION
                                    OF LOANS

Date:    ____________, 200__

To:      U.S. Bank National Association, d/b/a Firstar Bank, N.A., as Agent for
         the Lenders party to the Senior Secured Revolving Credit Agreement
         dated as of August 31, 2001 (as extended, renewed, amended or restated
         from time to time, the "Credit Agreement") among Midwest Express
         Holdings, Inc., (the "Borrower"), the Agent and the Lenders

Ladies and Gentlemen:

         The undersigned Borrower refers to the Credit Agreement, the terms
defined therein being used herein as therein defined, and hereby gives you
notice irrevocably, pursuant to Section 3.2 of the Credit Agreement, that the
Borrower requests conversion or extension of the following Loans as follows (the
"Proposed Borrowing"):

         1.   Business Day of the Proposed Borrowing: ________________-, ______

         2.   Applicable Loan(s):                               _______________

         3.   Total Amount of Loans to be converted/extended:  $_______________

         4.   Amount of (3) to be allocated to
               Eurodollar Loans:                               $_______________

         5.   Amount of (3) to be allocated to Base
               Rate Loans:                                     $_______________

         6.   Interest Periods and amounts to be allocated thereto in respect of
Eurodollar Loans (amounts total (4)):

         (i)      one month                          $_________________

         (ii)     two months                         $_________________

         (iii)    three months                       $_________________

         (iv)     six months                         $_________________

         Total Eurodollar Loans                      $
                                                      =================

<PAGE>

         The undersigned hereby certifies that the following statements are true
on the date hereof, and will be true on the date of the proposed Borrowing,
before and after giving effect thereto and to the application of the proceeds
therefrom:

                  (a) the representations and warranties of the Borrower made by
         the Borrower in the Credit Agreement and by the Guarantors in the Other
         Credit Documents, or which are contained in any certificate furnished
         at any time under or in connection therewith shall be true and correct
         on and as of the date of such Loan as if made on and as of such date
         (unless a representation and warranty is made as of a specific date, in
         which case, such representation and warranty shall be true and correct
         as of such date); and

                   (b) no Default or Event of Default has occurred and is
         continuing, or would result from such proposed Borrowing.

                                         MIDWEST EXPRESS HOLDINGS, INC.

                                         By: _______________________________
                                         Title: ____________________________

<PAGE>

                               EXHIBIT 4.1(a)(ix)

                               SUBSIDIARY GUARANTY

         THIS SUBSIDIARY GUARANTY (the "Guaranty") is made as of August 31, 2001
by [Name of Guarantor] (the "Guarantor"), to and for the benefit of U.S BANK
NATIONAL ASSOCIATION, d/b/a FIRSTAR BANK, N.A. ("Firstar," and, in its capacity
as agent, the "Agent"), M&I MARSHALL & ILSLEY BANK ("M&I"), BANK ONE, NA and the
other Lenders party to the Credit Agreement from time to time ("Bank One"; the
Agent, M&I, Bank One, and such other Lenders are referred to collectively herein
as the "Lenders").

         WHEREAS, Midwest Express Holdings, Inc., a Wisconsin corporation (the
"Borrower"), and the Lenders have entered into a Credit Agreement dated as of
the date hereof (the "Credit Agreement"; capitalized terms used and not
otherwise defined herein have the meanings assigned to them in the Credit
Agreement), pursuant to which the Lenders have agreed to make certain Loans to
the Borrower and to issue certain Letters of Credit for the account of the
Borrower, and the Borrower has agreed to pay all unpaid principal of and accrued
and unpaid interest on the Loans, the aggregate amount of LOC Obligations, all
accrued and unpaid fees, and all other Obligations of the Company to the
Lenders, any Lender or the Agent arising under any of the Credit Documents,
including without limitation costs and expenses as provided in the Credit
Documents (collectively, the "Obligations");

         WHEREAS, the Guarantor will benefit from the Obligations and the
Borrower's performance of the Obligations and is therefore willing to guarantee
the payment and performance of each of the Obligations.

         NOW, THEREFORE, in consideration of the Obligations, and for other good
and valuable consideration, the sufficiency of which is hereby acknowledged, the
Guarantor agrees as follows:

         1. Guarantor unconditionally and absolutely guarantees the full and
prompt payment and performance of each of the Obligations when due, whether
according to the present terms of the Obligations or any change or changes in
the terms, covenants and conditions of any of the Obligations, now or at any
time hereafter made or granted, or any earlier or accelerated date or dates for
payment or performance of the agreements set forth in the Obligations. It is
understood that this Guaranty is a continuing guarantee of the payment of the
indebtedness represented by the Obligations, is not limited to a guarantee of
collection of the indebtedness represented by the Obligations and shall remain
in full force and effect until the termination of the Obligations.

         2. To the extent not prohibited by law, the Guarantor expressly waives
notice of the acceptance of this Guaranty, the creation of any present or future
Obligations, nonpayment of any Obligations, proceedings to collect from the
Borrower or anyone else, and all diligence of collection and presentment,
demand, notice and protest. With respect to any of the Obligations, the Agent
may from time to time without notice to the Guarantor and without liability to
the Guarantor

<PAGE>

(a) surrender, release or impair any security or collateral or surrender,
release or agree not to sue any guarantor or surety; (b) fail to realize upon
any of the Obligations or to proceed against the Borrower or any guarantor or
surety; (c) renew or extend the time of payment; (d) increase or decrease the
rate of interest; (e) accept security or collateral; (f) determine the
allocation and application of payments and credits and accept partial payments
and credits; (g) determine what, if anything, may at any time be done with
reference to any security or collateral; and (h) settle or compromise the amount
due or owing or claimed to be due or owing. The Guarantor expressly consents to
and waives notice of all of the above.

         3. Guarantor shall have no right of subrogation with respect to the
Obligations or any monies due and unpaid thereon, or any collateral securing the
Obligations, if any. Without limiting the generality of the foregoing, the
Guarantor hereby disclaims any claim, remedy or right, including a claim for
contribution, reimbursement, exoneration, subrogation or indemnification, which
it may have against a co-guarantor indebted or under liability, either direct or
indirect of whatsoever nature, to the Lenders or against the Borrower.

         4. Guarantor agrees that the Guarantor's obligation to make payment in
accordance with the terms of this Guaranty shall not be impaired, modified,
changed, released or limited in any manner whatsoever in the event any portion
of the Obligations are invalid or unenforceable against the Borrower for any
reason other than actual payment in full, or by any impairment, modification,
change, release or limitations of the liability of the Borrower or its estate in
bankruptcy resulting from the operation of any present or future provision of
the Federal Bankruptcy Code or other similar federal or state statute, or from
the decision of any court.

         5. Guarantor agrees to pay all costs and expenses, including reasonable
attorneys' fees incurred by the Lenders, their successors or assigns, in
enforcing this Guaranty.

         6. Guarantor agrees that this Guaranty shall inure to the benefit of
Lenders and may be enforced by the Agent (for the benefit of the Lenders) and
any subsequent holder or holders of the Obligations, and shall be binding and
enforceable upon the Guarantor and the Guarantor's personal representatives,
heirs, successors and assigns.

         7. In addition to any rights and remedies of the Lenders provided by
law (including, without limitation, other rights of set-off), each Lender shall
have the right, without prior notice to the Guarantor, any such notice being
expressly waived by the Guarantor to the extent permitted by applicable law,
upon the occurrence and during the continuance of any Event of Default, to
setoff and appropriate and apply any and all deposits (general or special, time
or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any Affiliate, branch or agency thereof to or for the
credit or the account of the Guarantor, or any part thereof in such amounts as
such Lender may elect, against and on account of the obligations and liabilities
of the Guarantor to the Lenders hereunder and claims of every nature and
description of the Lenders against the Guarantor, in any currency, whether
arising hereunder, under the Notes or under any documents contemplated by or
referred to herein or therein, as such Lender may elect, whether or not such

                                      -2-
<PAGE>

Lender has made any demand for payment. The aforesaid right of set-off may be
exercised by such Lender against the Guarantor or against any trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver or execution, judgment or attachment creditor of the Guarantor, or
against anyone else claiming through or against the Guarantor or any such
trustee in bankruptcy, debtor in possession, assignee for the benefit of
creditors, receiver, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been
exercised by such Lender prior to the occurrence of any Event of Default. Each
Lender agrees promptly to notify the Guarantor and the Agent after any such
set-off and application made by such Lender; provided, however, that the failure
to give such notice shall not affect the validity of such set-off and
application.

         8. Guarantor agrees that all references in this Guaranty to Obligations
of the Borrower shall include any successor or assignee of the Borrower so long
as this Guaranty remains in effect.

         9. Guarantor agrees that this Guaranty shall be governed by the laws of
the State of Wisconsin, other than its laws governing choice of law.

         10. If any term or provision of this Guaranty shall to any extent be
invalid or unenforceable, the remainder of this Guaranty, or the application of
any such term or provision other than those which are invalid or unenforceable,
shall not be affected thereby, and each term and provision shall be valid and
enforceable to the fullest extent permitted by law.

         11. Guarantor represents, warrants and covenants to the Lenders that,
as of the date of this Guaranty: the fair salable value of the Guarantor's
assets exceeds the Guarantor's liabilities including all contingent liabilities
and; the Guarantor is meeting Guarantor's current liabilities as they mature.
Guarantor is fully aware of the financial condition of the Borrower. Guarantor
is delivering this Guaranty based solely upon Guarantor's own independent
investigation of the Borrower and the Obligations secured by this Guaranty and
in no part upon any representation or statement of the Lenders or the Agent with
respect thereto. The Guarantor is in a position to and hereby assumes full
responsibility for obtaining any additional information concerning the
Borrower's financial condition as Guarantor may deem material to Guarantor's
obligations hereunder and Guarantor is neither relying upon nor expecting the
Lenders or the Agent to furnish Guarantor any information in the Lenders' or the
Agent's possession concerning the Borrower's financial condition.

         12. Anything herein or in any other document, instrument or agreement
executed and delivered in connection herewith to the contrary notwithstanding,
the maximum liability of the Guarantor hereunder as at any date of determination
thereof shall in no event exceed the Guarantor's Maximum Guaranteed Amount (as
defined below) as determined at the earliest of such date, the date of the
commencement of a case under Title 11 of the United States Code in which the
Guarantor is a debtor, and the date enforcement hereunder is sought. For the
purpose of this paragraph, "Maximum Guaranteed Amount" shall mean the greater of
(i) the aggregate amount of the Obligations outstanding under the Credit
Agreement to the extent the proceeds thereof are used to make a Valuable
Transfer (as defined below) to the Guarantor and (ii) ninety-five percent (95%)
of the Adjusted Net Worth (as defined below) of the Guarantor. For the purpose
of this paragraph,

                                      -3-
<PAGE>

"Valuable Transfer" shall mean the amount of (i) all loans, advances or capital
contributions made to the Guarantor with proceeds of funds advanced by the
Lenders pursuant to the Credit Agreement; (ii) all debt securities or other
obligations of the Guarantor acquired from the Guarantor or retired by the
Guarantor with proceeds of funds advanced by the Lenders pursuant to the Credit
Agreement; (iii) the fair market value of all property acquired with proceeds of
funds advanced by the Lenders pursuant to the Credit Agreement and transferred,
absolutely and not as collateral, to the Guarantor, (iv) all equity securities
of the Guarantor acquired from the Guarantor with proceeds of funds advanced by
the Lenders pursuant to the Credit Agreement; and (v) the value of any
quantifiable economic benefits not included in clauses (i) through (iv), above,
but includable in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, accruing to the Guarantor as a
result of funds advanced by the Lenders pursuant to the Credit Agreement. For
purposes of this paragraph, "Adjusted Net Worth" shall mean the excess of (i)
the amount of the "present fair saleable value" of the assets of the Guarantor
as of the date of determination, over (ii) the amount of all "liabilities of
such Guarantor, contingent or otherwise," as of the date of determination, as
such quoted terms are determined in accordance with applicable federal and state
laws governing determinations of the insolvency of debtors. In determining the
Adjusted Net Worth of the Guarantor for purposes of calculating the Maximum
Guaranteed Amount for the Guarantor, the liabilities of the Guarantor to be used
in such determination pursuant to clause (ii) of the preceding sentence shall in
any event include any amounts guaranteed by the Guarantor pursuant to clause (i)
of the definition of Maximum Guaranteed Amount, as discounted by the probability
that the Guarantor shall be required to pay such amount, as determined by the
Guarantor's independent certified accountants.

         13. Guarantor is a corporation duly organized and validly existing, and
the execution of this Guaranty has been duly authorized by all requisite
corporate action, and when executed and delivered will be binding and
enforceable on such corporation in accordance with its terms. [insert the
following additional sentence in the guaranty of Services-Kansas City:
Notwithstanding the foregoing, Guarantor is not existing in good standing as of
the Closing Date, but as of October 12, 2001 and at all times thereafter it
shall be validly existing as a Missouri corporation in good standing under the
laws of the State of Missouri.]

         14. This Guaranty constitutes the entire agreement of the Guarantor
with the Lenders with respect to the subject matter hereof and may not be
amended, modified or changed in any manner without the prior written consent of
the Lenders.

         15. Guarantor has carefully read the Credit Agreement and the
representations, warranties, covenants and agreements attributable to Guarantor
therein, each such representation, warranty, covenant and agreement is hereby
incorporated herein and are, as to such representations and warranties, true and
correct as of the date hereof, and as to such agreements and covenants, binding
upon Guarantor.

         16. Guarantor agrees that, if at any time all or any part of any
payment theretofore applied by any Lender to any of the Obligations is or must
be rescinded or returned by such Lender for any reason whatsoever (including,
without limitation, the insolvency, bankruptcy or reorganization of the
Borrower), such Obligations shall, for the purposes of this Guaranty, to the

                                      -4-
<PAGE>

extent that such payment is or must be rescinded or returned, be deemed to have
continued in existence, notwithstanding such application by such Lender, and
this Guaranty shall continue to be effective or be reinstated, as the case may
be, as to such Obligations, all as though such application by such Lender had
not been made.

         THIS GUARANTY has been executed as of the day and year first written
above.

                                                  GUARANTOR:

                                                  [NAME OF GUARANTOR]

                                                  By:___________________________
                                                  Its:__________________________

                                      -5-
<PAGE>
                                 EXHIBIT 4.1(c)

                      CERTIFICATE AS TO FINANCIAL CONDITION

Date:    August ___, 2001

To:      U.S. Bank National Association, d/b/a Firstar Bank, N.A., as Agent for
         the Lenders party to the Senior Secured Revolving Credit Agreement
         dated as of August 31, 2001 (as extended, renewed, amended or restated
         from time to time, the "Credit Agreement") among Midwest Express
         Holdings, Inc., (the "Borrower"), the Agent and the Lenders;

         The following is delivered with and as a condition to the making of
Loans under the Credit Agreement. Capitalized terms not otherwise defined herein
are used as defined in the Credit Agreement.

         I, _____________, hereby certify that as of the date hereof, I am the
_____________ of Midwest Express Holdings, Inc. (the "Borrower") which has
executed Notes in favor of the Lenders under the Credit Documents and I am
_____________ of each Guarantor, and that:

         1. I am informed regarding the business, operations, assets,
liabilities, capital requirements, financial condition and financial affairs of
the Borrower and each of its Subsidiaries (including without limitation each
Guarantor).

         2. I have read and understand the Credit Documents, each of which I
have participated in negotiating, and I have had the opportunity to consult with
legal counsel concerning their meaning. I am familiar with the transactions
contemplated to occur in connection with the consummation of the Credit
Documents.

         3. I have reviewed the contents of this Certificate and have had the
opportunity to consult with legal counsel concerning such content.

         4. I have reviewed the financial records of the Borrower and its
Subsidiaries, and I have conferred with such directors, officers, employees,
accountants and financial advisers of the Borrower and its Subsidiaries as I
have deemed appropriate.

         5. On the date hereof, upon the consummation of the transactions
contemplated in the Credit Documents and the incurrence of all indebtedness and
liabilities contemplated by the Credit Documents, and immediately upon giving
effect to each of the foregoing transactions, neither the Borrower nor any
Guarantor:

           A. will be rendered "insolvent." I understand that, in this context,
"insolvent" means that the present fair salable value of the Borrower's or such
Guarantor's assets is less than

<PAGE>

the amount that will be required to pay the probable liability on existing debts
of the Borrower or such Guarantor (as the case may be) as they become absolute
and matured. I also understand that the term "debts" includes any legal
liability, whether matured or unmatured, liquidated or unliquidated, absolute,
fixed or contingent; and

          B. will be left with remaining property that constitutes "unreasonably
small capital." I understand that "unreasonably small capital" depends on the
nature of the particular business or businesses conducted, or to be conducted,
and the statement made in the preceding sentence is based on the current and
anticipated future conduct of the business of the Borrower or such Guarantor (as
the case may be), including available credit capacity.

         6. Neither the Borrower nor any Guarantor does, by executing,
delivering and consummating the Credit Documents or by taking any action with
respect thereto, intend to incur, nor does it expect it will incur, debts beyond
its ability to pay as such debts mature.

         7. For purposes of making this certification, in determining the
maximum amount of the Obligations required to be paid by the Borrower or any
Guarantor, such maximum amount has been discounted by the probability that the
Borrower or such Guarantor, as the case may be, would be required to pay the
full amount of the Obligations.

         I understand that the Lenders are relying on the truth and accuracy of
the foregoing in connection with entering into the Credit Documents and making
the Loans.

         I represent that the foregoing information to be, to the best of my
knowledge and belief, true and correct and in witness whereof I set my hand
hereto as of ____ day of August, 2001.

                                           [SIGNATURE BLOCKS FOR BORROWER AND
                                            EACH GUARANTOR]

<PAGE>
                                 EXHIBIT 4.1(f)

                        [FORM OF CERTIFICATE OF SECRETARY
                         OF BORROWER and each Guarantor]

         Pursuant to Section 4.1(f) of the Senior Secured Revolving Credit
Agreement, dated as of August 31, 2001 by and among Midwest Express Holdings,
Inc. (the "Borrower"), the several lenders identified on the signature pages
thereto and such other lenders as may from time to time become a party thereto
(each a "Lender" and collectively, the "Lenders"), and U.S. Bank National
Association d/b/a Firstar Bank, N.A., as agent for the Lenders (in such
capacity, the "Agent"), the undersigned Secretary of [Name of
Borrower/Guarantor] hereby certifies as follows:

         1. Attached hereto as Annex I is a true and complete copy of
resolutions duly adopted by the Directors of [Name of Borrower/Guarantor] on
_________________________, 1998, and such resolutions have not in any way been
rescinded or modified and have been in full force and effect since their
adoption to and including the date hereof and are now in full force and effect;
and such resolutions are the only limited liability company proceedings of [Name
of Borrower/Guarantor] now in force relating to or affecting the matters
referred to therein.

         2. Attached hereto as Annex II is a true and complete copy of the
Bylaws of [Name of Borrower/Guarantor] as in effect at all times since
________________________ to and including the date hereof.

         3. Attached hereto as Annex III is a true and complete copy of the
[Articles of Incorporation/Organization] of [Name of Borrower/Guarantor] and all
amendments thereto as in effect on the date hereof.

         4. The following persons are now duly elected and qualified officers of
[Name of Borrower/Guarantor], holding the offices indicated next to their names
below, and such officers have held such offices with [Name of
Borrower/Guarantor] at all times since _____________________ to and including
the date hereof, and the signatures appearing opposite their names below are
their true and genuine signatures, and such officers are duly authorized to
execute and deliver on behalf of Borrower the Credit Agreement and each of the
other Credit Documents (as such term is defined in the Credit Agreement) and to
act as authorized officers on behalf of [Name of Borrower/Guarantor] under the
Credit Agreement:

Name                      Office                     Signature

------------------        -------------------        -----------------------

------------------        -------------------        -----------------------

         IN WITNESS WHEREOF, the undersigned has hereunto set his/her name as of
the ____ day of August, 2001.

                                        By:
                                            ------------------------------------
                                        Title:  Secretary

<PAGE>

                                 EXHIBIT 4.1(l)

                           BORROWING BASE CERTIFICATE

                                  Computation Date: ______________, 19__

U.S. Bank National Association,
d/b/a Firstar Bank, N.A.
777 East Wisconsin Avenue
Milwaukee WI  53202

M&I Marshall & Ilsley Bank
770 North Water Street
Milwaukee WI  53202

Bank One, NA
111 East Wisconsin Avenue
Milwaukee WI  53202

Gentlemen:

         This certificate is delivered to you pursuant to the Senior Secured
Revolving Credit Agreement, dated as of August 31, 2001 by and among MIDWEST
EXPRESS HOLDINGS, INC. (the "Borrower"), the several lenders identified on the
signature pages thereto and such other lenders as may from time to time become a
party thereto (each a "Lender" and collectively, the "Lenders"), and U.S. BANK
NATIONAL ASSOCIATION, d/b/a FIRSTAR BANK, N.A., as agent for the Lenders (in
such capacity, the "Agent"). The defined terms in the Credit Agreement are used
herein with the same meanings as specified in the Credit Agreement and all
references to "Sections" are to Sections of the Credit Agreement.

         Borrower hereby represents and warrants to the Lenders that the
following is a true and correct computation of the Borrowing Base as of the
Computation Date:

A.       DC-9 Aircraft

         (1)      Appraisal Value of DC-9 aircraft and
                  engines listed on Schedule 1.1 of the
                  Credit Agreement                                   $
                                                                      ----------

         (2)      Less Appraisal Value of aircraft and
                  engines not meeting the specifications
                  of Eligible DC-9 Aircraft                 $
                                                             --------

<PAGE>

         (3)      Appraisal Value of Eligible DC-9
                  Aircraft                                  $
                                                             --------

         (4)      51% of A(3)                                        $
                                                                      ----------

B.       Other Aircraft

         (1)      Appraisal Value of aircraft and engines
                  listed on Schedule 1.1 of the Credit
                  Agreement (other than DC-9 aircraft and
                  engines)                                  $
                                                             --------

         (2)      Less Appraisal Value of aircraft and
                  engines not meeting the specifications
                  of Eligible Other Aircraft                $
                                                             --------

         (3)      Appraisal Value of Eligible Other
                  Aircraft                                  $
                                                             --------

         (4)      75% of B(3)                                        $
                                                                      ----------

C.       Borrowing Base [A(4) plus B(4)]                             $
                                                                      ----------

D.       Revolving Loans

         (1)      The outstanding amount of all Revolving
                  Loans is                                  $
                                                             --------

         (2)      The amount, if any, of additional
                  Revolving Loans now applied for is        $
                                                             --------

         (3)      After such additional Revolving Loans
                  are made, the total of all outstanding
                  Revolving Loans will be                            $
                                                                      ----------

E.       LOC Obligations

         (1)      The outstanding amount of all LOC
                  Obligations is                            $
                                                             --------

         (2)      The amount, if any, of additional
                  Letters of Credit now applied for is      $
                                                             --------
<PAGE>

         (3)      After such additional Letters of Credit
                  are issued, the total of all outstanding
                  LOC Obligations will be                            $
                                                                      ----------

F.       Swing Line Loans

         (1)      The outstanding amount of all Swing Line
                  Loans is                                  $
                                                             --------

         (2)      The amount, if any, of additional Swing
                  Line Loans now applied for is             $
                                                             --------

         (3)      After such additional Swing Line Loans
                  are made, the total of all outstanding
                  Swing Line Loans will be                           $
                                                                      ----------

G. AAL Reserve (insert $0.00 in G(1), G(2) and G(3) on and after the date when
the Borrower shall have satisfied each of the requirements set forth in
subsection (b) of the third sentence of Section 6.14; prior thereto insert the
appropriate amounts therein)

         (1)      The outstanding amount of the AAL Loan
                  is                                        $
                                                             --------

         (2)      The amount, if any, of the AAL Prepayment
                  Premium is                                $
                                                             --------

         (3)      Total of G(1) plus G(2) is                         $
                                                                      ----------

H.       Total of D(3) plus E(3) plus F(3) plus G(3)                 $
                                                                      ----------

H does not exceed the lesser of C and the Commitment:       ____ Yes   ____ No

The Borrower hereby represents and warrants that, except as previously disclosed
to the Agent in writing pursuant to Section 6.10 of the Credit Agreement:

         (i) no Default or Event of Default has occurred and is continuing;

         (ii) no event of any type described in such Section 6.10 of the Credit
Agreement has occurred since the date of the Credit Agreement; and

<PAGE>

         (iii) the representations and warranties of the Borrower contained in
the Credit Agreement are true and correct in all respects on the date hereof as
if made on this date.

                                          MIDWEST EXPRESS HOLDINGS, INC.

                                          By:_____________________________
                                          Name Printed:___________________
                                          Title:__________________________

<PAGE>
                                 EXHIBIT 4.1(m)

                        BORROWER'S COMPLIANCE CERTIFICATE

                     Computation Date: ______________, 19__

U.S. Bank National Association,
d/b/a Firstar Bank, N.A.
777 East Wisconsin Avenue
Milwaukee WI  53202

M&I Marshall & Ilsley Bank
770 North Water Street
Milwaukee WI  53202

Bank One, NA
111 East Wisconsin Avenue
Milwaukee WI  53202

Gentlemen:

         This certificate is delivered to you pursuant to a Credit Agreement
dated as of August 31, 2001 (the "Credit Agreement") by and among Midwest
Express Holdings, Inc. (the "Borrower"), U.S. Bank National Association, d/b/a
Firstar Bank, N.A., M&I Marshall & Ilsley Bank, and Bank One, NA (collectively,
the "Banks"). The defined terms in the Credit Agreement are used herein with the
same meanings as specified in the Credit Agreement and all references to
"Sections" are to Sections of the Credit Agreement.

         The Borrower hereby certifies and warrants to the Banks that the
following are true and correct computations of the Borrower's Leverage Ratio,
the Borrower's Fixed Charge Coverage Ratio and the Borrower's Net Worth as of
the Computation Date:

I.       LEVERAGE RATIO (Section 6.11)

         Calculated as of each March 31, June 30, September 30 and December 31

         Rolling four-quarters basis covered ("Computation Period") from
___________, 200__ to latest quarter ending ____________, 200__ (the
"Computation Date")

         A. Numerator (Consolidated Funded Debt as of the Computation Date)

<PAGE>

         (1) Consolidated Indebtedness of the Borrower and its
         Subsidiaries for borrowed money as of the Computation Date  $__________

         (2) Purchase money Indebtedness of the Borrower and its
         Subsidiaries as of the Computation Date                     $__________

         (3) The principal portion of Capital Lease Obligations of
         the Borrower and its Subsidiaries as of the Computation
         Date                                                        $__________

         (4) LOC Obligations as of the Computation Date              $__________

         (5) The product of all rental expense of the Borrower
         and its Subsidiaries for aircraft for the twelve-month
         period ending on the Computation Date multiplied by six     $__________

         (6) Cash on hand in excess of $10,000,000 as of the
         Computation Date                                            $__________

         (7) Total of (1) plus (2) plus (3) plus (4) plus (5)
         minus (6)                                                   $_________

         B. Denominator (Consolidated EBITDAR for the Computation Period)

         (1) Consolidated Net Income for the Computation Period
         (excluding the asset impairment charge from June 30, 2001)  $__________

         (2) Consolidated Interest Expense for the Computation
         Period                                                      $__________

         (3) Provisions for federal, state or other income taxes
         of the Borrower and its Subsidiaries for the Computation
         Period                                                      $__________

         (4) Depreciation, amortization and other non-cash charges
         of the Borrower and its Subsidiaries for the Computation
         Period                                                      $__________

         (5) Rental expense of the Borrower and its Subsidiaries
         for aircraft for the Computation Period                     $__________

         (6) Total of (1) plus (2) plus (3) plus (4) plus (5)        $_________

         C. Ratio of I.A(7) to I.B(6) for the Computation
            Period                                                   ___ to 1.00

         D. Maximum Leverage Ratio permitted by Section 6.11         ___ to 1.00

<PAGE>
II.      FIXED CHARGE COVERAGE RATIO (Section 6.12)

         Calculated as of each March 31, June 30, September 30 and December 31

         Rolling four-quarters Computation Period ending on the Computation Date

         A. Numerator (Consolidated EBITDAR for the Computation Period)

         (1) Consolidated Net Income for the Computation Period
         (excluding the asset impairment charge from June 30, 2001)  $__________

         (2) Consolidated Interest Expense for the Computation
         Period                                                      $__________

         (3) Provisions for federal, state or other income taxes of
         the Borrower and its Subsidiaries for the Computation
         Period                                                      $__________

         (4) Depreciation, amortization and other non-cash charges
         of the Borrower and its Subsidiaries for the Computation
         Period                                                      $__________

         (5) Rental expense of the Borrower and its Subsidiaries for
         aircraft for the Computation Period                         $__________

         (6) Total of (1) plus (2) plus (3) plus (4) plus (5)        $_________

         B. Denominator (Consolidated Fixed Charges for the
            Computation Period)

         (1) Consolidated Interest Expense for the Computation
         Period                                                      $__________

         (2) Provisions for federal, state or other income taxes of
         the Borrower and its Subsidiaries for the Computation
         Period                                                      $__________

         (3) Rental expense of the Borrower and its Subsidiaries for
         aircraft for the Computation Period                         $__________

         (4) Scheduled amortization of long-term debt of the the
         Borrower and its Subsidiaries for the Computation Period    $__________

         (5) Dividends on capital stock of the Borrower for the
         Computation Period                                          $__________

         (6) Total of (1) plus (2) plus (3) plus (4) plus (5)        $__________

<PAGE>

         C. Ratio of II.A(6) to II.B(6) for the Computation Period   ___ to 1.00

         D. Minimum Consolidated Fixed Charge Coverage Ratio
            permitted by Section 6.12                                ___ to 1.00

III.     NET WORTH (Section 6.13)

         Calculated as of each March 31, June 30, September 30 and December 31

         A. Base Net Worth $110,000,000

         B. Cumulative Consolidated Net Income (being the sum of
            Consolidated Net Income computed since October 1, 2001
            pursuant to Section 6.13 of the Credit Agreement)        $__________

         C. Fifty Percent (50%) of III.B                             $__________

         D. Cumulative net cash proceeds from the issuance of
            equity securities by the Borrower since the Closing
            Date                                                     $__________

         E. Minimum Net Worth required by Section 6.13 III.A
            plus III.C plus III.D                                    $__________

         F. Actual Net Worth as of the Computation Date (as
            calculated in accordance with Attachment 1 hereto)       $__________

         The Borrower hereby also represents and warrants that, as of the close
of the period covered in the most recent financial statements of the Borrower
delivered pursuant to Section 6.4:

         (i) no condition or event has occurred which constitutes an Event of
Default under the Credit Agreement or which, after notice or lapse of time or
both, would constitute an Event of Default under the Credit Agreement; and

         (ii) the representations and warranties of the Borrower contained in
the Credit Agreement are true and correct in all material respects on the date
hereof as if made on this date [except as set forth below].

                                       MIDWEST EXPRESS HOLDINGS, INC.

                                       By:_____________________________
                                       Name Printed:___________________
                                       Title:__________________________

<PAGE>

                                  Attachment 1

Actual Net Worth (Calculated as of each March 31, June 30, September 30 and
December 31)

         A.   Assets

              the total of all assets properly appearing on the
              consolidated balance sheet of the Borrower and its
              Subsidiaries in accordance with GAAP                   $__________

         B.   Liabilities

              the total of all liabilities properly appearing on the
              consolidated balance sheet of the Borrower and its
              Subsidiaries in accordance with GAAP                   $__________

         C.   Net Worth as of  the Computation Date: A minus B       $__________

<PAGE>

                                 EXHIBIT 10.6(c)

                         COMMITMENT TRANSFER SUPPLEMENT

         Reference is made to the Credit Agreement, dated as of August 31, 2001
(the "Credit Agreement") by and among Midwest Express Holdings, Inc. (the
"Borrower"), U.S. Bank National Association, d/b/a Firstar Bank, N.A., M&I
Marshall & Ilsley Bank, and Bank One, NA (collectively, the "Banks"). The
defined terms in the Credit Agreement are used herein with the same meanings as
specified in the Credit Agreement and all references to "Sections" are to
Sections of the Credit Agreement.

         ___________________________ (the "transferor Lender") and
______________________ (the "Purchasing Lender") agree as follows:

         1. The transferor Lender hereby irrevocably sells and assigns to the
Purchasing Lender without recourse to the transferor Lender, and the Purchasing
Lender hereby irrevocably purchases and assumes from the transferor Lender
without recourse to the transferor Lender, as of the Transfer Effective Date (as
defined below), a ___% interest (the "Assigned Interest") in and to the
transferor Lender's rights and obligations under the Credit Agreement with
respect to those credit facilities contained in the Credit Agreement as are set
forth on Schedule 1 hereto (individually, an "Assigned Facility"; collectively,
the "Assigned Facilities"), in a principal amount for each Assigned Facility as
set forth on such Schedule 1.

         2. The transferor Lender (a) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or with
respect to the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other Credit Document or any
other instrument or document furnished pursuant thereto, other than that the
transferor Lender has not created any adverse claim upon the interest being
assigned by it hereunder and that such interest is free and clear of any such
adverse claim; (b) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrowers or the
performance or observance by the Borrowers of any of their respective
obligations under the Credit Agreement or any other Credit Documents or any
other instrument or document furnished pursuant hereto or thereto; and (c)
attaches any Notes held by it evidencing the Assigned Facilities and (i)
requests that the Agent exchange the attached Note for a new Note payable to the
Purchasing Lender and (ii) if the transferror Lender has retained any interest
in the Assigned Facility, requests that the Agent exchange the attached Note for
a new Note payable to the transferor Lender, in each case in amounts which
reflect the assignment being made hereby (and after giving effect to any other
assignments which have become effective on the Transfer Effective Date).

         3. The Purchasing Lender (a) represents and warrants that it is legally
authorized to enter into this Commitment Transfer Supplement; (b) confirms that
it has received a copy of the Credit Agreement, together with copies of the
financial statements referred to in Section 6.4 thereof and such other documents
and information as it has deemed appropriate to make its own

<PAGE>

credit analysis and decision to enter into this Commitment Transfer Supplement;
(c) agrees that it will, independently and without reliance upon the transferor
Lender, the Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement, the
other Credit Documents or any other instrument or document furnished pursuant
hereto or thereto; (d) appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers and discretion under the Credit
Agreement, the other Credit Documents or any other instrument or document
furnished pursuant hereto or thereto as are delegated to the Agent by the terms
thereof, together with such powers as are incidental thereto; and (e) agrees
that it will be bound by the provisions of the Credit Agreement and will perform
in accordance with its terms all the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Lender including, if it
is organized under the laws of a jurisdiction outside the United States, its
obligations pursuant to Section 3.9 of the Credit Agreement.

         4. The effective date of this Commitment Transfer Supplement shall be
________________ (the "Transfer Effective Date"). Following the execution of
this Commitment Transfer Supplement, it will be delivered to the Agent for
acceptance by it and recording by the Agent pursuant to the Credit Agreement,
effective as of the Transfer Effective Date (which shall not, unless otherwise
agreed to by the Agent, be earlier than five Business Days after the date of
such acceptance and recording by the Agent).

         5. Upon such acceptance and recording, from and after the Transfer
Effective Date, the Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, Fees and other amounts) to
the Purchasing Lender whether such amounts have accrued prior to the Transfer
Effective Date or accrue subsequent to the Transfer Effective Date. The
transferor Lender and the Purchasing Lender shall make all appropriate
adjustments in payments by the Agent for periods prior to the Transfer Effective
Date or, with respect to the making of this assignment, directly between
themselves.

         6. From and after the Transfer Effective Date, (a) the Purchasing
Lender shall be a party to the Credit Agreement and, to the extent provided in
this Commitment Transfer Supplement, have the rights and obligations of a Lender
thereunder and under the other Credit Documents and shall be bound by the
provisions thereof and (b) the transferor Lender shall, to the extent provided
in this Commitment Transfer Supplement, relinquish its rights and be released
from its obligations under the Credit Agreement.

         7. This Commitment Transfer supplement shall be governed by and
construed in accordance with the internal laws of the State of Wisconsin.

         IN WITNESS WHEREOF, the parties hereto have caused this Commitment
Transfer Supplement to be executed as of the date first above written by their
respective duly authorized officers on Schedule 1 hereto.

<PAGE>

                                   SCHEDULE 1

                        TO COMMITMENT TRANSFER SUPPLEMENT
         RELATING TO THE CREDIT AGREEMENT, DATED AS OF AUGUST 31, 2001,
                                      AMONG
                MIDWEST EXPRESS HOLDINGS, INC. (THE "BORROWER"),
                            THE LENDERS PARTY THERETO
                                       AND
 U.S. BANK NATIONAL ASSOCIATION, D/B/A FIRSTAR BANK, N.A., AS AGENT FOR
                                   THE LENDERS
                         (IN SUCH CAPACITY, THE "AGENT")

Name of transferor Lender: ______________________________

Name of Purchasing Lender: ______________________________

Transfer Effective Date of Assignment: _____________________

Credit                     Principal                 Commitment Percentage
Facility Assigned          Amount Assigned           Assigned1
-----------------          ---------------           --------

--------------             $--------------           --------------------

[NAME OF PURCHASING LENDER]                  [NAME OF TRANSFEROR LENDER]

By _____________________________             By ________________________________
Name: ______________________________         Name: _____________________________
Title: ______________________________        Title: ____________________________

Accepted:

U.S. BANK NATIONAL ASSOCIATION, D/B/A FIRSTAR BANK, N.A., AS AGENT FOR THE
LENDERS

         By:_____________________________

         Name:___________________________

         Title: _________________________

--------
1 Calculate the Commitment Percentage that is assigned to at least 15 decimal
places and show as a percentage of the aggregate commitments of all Lenders.

<PAGE>

                                           Consented to:

                                           MIDWEST EXPRESS HOLDINGS, INC.

                                           By:_____________________________
                                           Title:____________________________EXHIBIT 10.15

CERTAIN INFORMATION HAS BEEN DELETED FROM THIS EXHIBIT AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT UNDER RULE 24b-2.

                            TAPEMARK SUPPLY AGREEMENT

       The parties to this Agreement are CNS, Inc., ("CNS"), a Delaware
Corporation, headquartered in Eden Prairie, MN and Tapemark, Inc., ("Tapemark")
a Minnesota Corporation, with its headquarters in West St. Paul, MN.

I.       Term:

The term of this Agreement begins on the date the last party signs this
Agreement (the "Effective Date") and will continue for three (3) years. This
Agreement supercedes any prior agreements.

II.      Exclusivity:

Tapemark will not supply finished external nasal dilators components for use in
the manufacture of external nasal dilators to any third party(s) other than CNS
or its designee for the duration of this Agreement and for a period of three (3)
years thereafter. This exclusivity is deemed necessary by the parties to protect
CNS's confidential information and other proprietary rights.

III.     Quality:

Tapemark will produce product to the most current revision level of the
specifications provided by CNS, and accepted by Tapemark, which shall not be
reasonable withheld, as evidenced by a certificate of conformance that will
accompany each shipment. In the event that CNS identifies product that is not
within specifications, Tapemark will upon notice, replace or refund the purchase
price of any product that is shown not to conform to specifications. In
addition, Tapemark will incur the cost of return freight and is responsible for
the disposal of goods in a safe manner. Tapemark will pay reasonable costs for
such disposal. CNS has the right to revise the specifications and shall provide
such amended specifications to Tapemark. Tapemark will become recertified to the
new ISO standards by the end of March 2002. During the interim, Tapemark will
maintain their compliance to ISO.

IV.      CNS Duty to Inspect; Returns:

CNS will direct its distribution center to promptly inspect any shipment of
finished product received from Tapemark and to promptly notify Tapemark in
writing of any defects. The notice must specify the defects in detail. Any goods
not rejected within thirty (30) days of delivery are deemed accepted.

<PAGE>

V.       Liability:

Subject to the limitations below, Tapemark shall be liable to CNS for any and
all claims, causes of action, suits, proceedings, damages, demands, fees,
expenses, fines, penalties and costs (including without limitation, attorney's
fees, costs and disbursements) collectively "Adverse Consequences" arising from
any injury or alleged injury to any person or business for property damage,
personal injury or incidental, special or consequential damages made against CNS
or Tapemark for liability arising from or caused by the use of product to the
extent resulting from negligence by Tapemark in the production, handling or
distribution of product prior to receipt by CNS or its customers. However,
Tapemark shall not be liable to CNS under the preceding sentence unless CNS
shall have tendered to Tapemark the defense of any claim, cause of action, suit
or proceeding encompassed within the preceding sentence, promptly upon CNS's
awareness of the same; and in no event shall Tapemark be liable under the
preceding sentence for Adverse Consequences attributable to defective design or
flaw in the specifications of product.

VI.      Pricing/Quantity:

CNS agrees its initial purchases of Breathe Right (R) Nasal Strips will be at
the prices supplied on the price sheet provided by Tapemark, attached as Exhibit
A, for the duration of the contract, subject to the adjustments under Section
VII, Price Adjustments, below. The parties may agree to add additional items to
the price list. Prior to addition to the price list, the parties shall agree on
the pricing for new items and such pricing shall be subject to the price
reductions requirements of Section VII. The new price sheet shall become
effective only when representatives from CNS and Tapemark sign and date the new
price sheet. CNS estimates that it will purchase [* * * *] strips in the 365
days from the effective date of this Agreement, in a configuration to be
determined by CNS. This quantity is only an estimate and may change as market
and competitive conditions change. CNS will strive to smooth production such
that downtime will be minimized and to the best of CNS's ability production will
occur in every month subject to market and competitive conditions. The
quantities to be purchased from Tapemark by CNS will be reviewed annually and
will be based on market conditions and the effectiveness of Tapemark's cost
reductions pursuant to Section VII.

VII.     Price Adjustments:

Tapemark agrees to a cost reduction initiative [* * * *]. It anticipates that
this reduction will be based on reducing its costs. Tapemark may achieve this
reduction internally by improving efficiencies, automating equipment, and
controlling raw materials, for example. In addition, CNS will assist in other
areas of cost reduction that are external to Tapemark, including but not limited
to, printing, packaging, corrugate and alternative material. CNS will assist in
evaluating these potential areas by participating on a team compromised of
individuals from the respective companies. Additional external members may be
added, as their expertise is required. As costs are reduced based on the
activities of Tapemark's internal efforts and the efforts of the team, these
cost savings will be reflected in lowere prices to CNS. Tapemark will use its
commercially reasonable best efforts to provide price reductions exceeding
[* * * *].

                                     Page 2
<PAGE>

However, in the unlikely event that inflation-driven cost increases by
Tapemark's suppliers, after reasonable resistance by Tapemark, unavoidably
increase Tapemark's costs, Tapemark has the right to renegotiate the price, in
an amount never to exceed demonstrable increases in its overall cost due to such
increases from suppliers, and always subject to reduction according to the
preceding paragraph as agreed by Tapemark.

VIII.    Termination for Cause:

Upon default by either party in the performance of any material obligation in
this Agreement, either party may give notice in writing by United States mail,
to the other party and the defaulting party shall have thirty (30) days from the
date the notice is sent to cure the default. However, if the default is not
cured within thirty (30) days from the date of notice, the non-defaulting party
may terminate this Agreement by providing notice of termination, which shall
take effect no earlier than ten (10) days from the date of such notice.
Termination under this paragraph shall not relieve either party of an obligation
existing upon the date of termination or relieve either party from liability for
breach of this Agreement subject to the terms of this Agreement.

IX.      Forecast/Planning:

CNS will provide to Tapemark an annual forecast to be used by Tapemark to assist
in capacity planning. This annual forecast is not a binding forecast and
Tapemark will not hold CNS to this forecast. CNS will also provide to Tapemark,
production requirements for a 3-month time period on a monthly basis. Tapemark
will use this production requirement to plan production and to plan their
material requirements. In the event CNS cancels any orders, except only as
expressly otherwise provided in this Agreement, CNS will be responsible only for
reimbursing Tapemark for the cost of material in Tapemark's inventory or
material that has been placed on order for production requirements that fall
within the 3-month timeframe. CNS will not be responsible for material purchases
that exceed production requirements for the 3-month timeframe, unless a member
of the CNS operations group authorized such material purchases in writing. In no
event will CNS be liable for any consequential, incidental or other damages for
cancellation, but will only be liable for reimbursing Tapemark for its material
costs. CNS will provide on an ongoing basis, purchase orders for production
requirements for the aforementioned time period. These purchase orders are to be
used by Tapemark as a finite scheduling format to plan production and material
needs to meet the required dates as mutually agreed to as outlined in Section
XII.

Tapemark will provide CNS's planning department with detailed information
concerning Tapemark's manufacturing capacity for its converting machines for
each strip type and for each cartoning machine for each strip configuration.
Each month, Tapemark will supply to CNS's planning department a summary of
actual production for each converting machine by strip type and for each
cartoning machine by strip configuration.

                                     Page 3
<PAGE>

Tapemark will mark any written information concerning capacities and production,
or other information that it may provide to CNS under this Agreement, which it
intends to keep confidential as "CONFIDENTIAL". CNS will maintain the
confidentiality of any information so marked except, as disclosure is required
by law, process of law or to fulfill this Agreement.

X.       Use of Name and Trademarks:

Neither party will make any use whatsoever of the other party's name without its
written permission. The decision to grant such permission is within the sole
discretion of the non-requesting party. Neither party will use or reproduce any
of the other party's trademark or logos in any manner without prior written
approval. To request this approval, the requesting party must forward to the
other party a complete and accurate specimen copy of the proposed use. The
non-requesting party agrees to reply to the requesting party within ten (10)
business days of receipt of such proposed use. Any permitted use extends only to
authorized materials. Except as disclosure is required by law, process of law or
to fulfill this Agreement, CNS and Tapemark agree to keep prices, forecast
volumes, quantity of purchases and other material information related to this
Agreement confidential during the Term of this Agreement and for a period of two
(2) years thereafter.

XI.      Events of Excused Performance:

Neither Tapemark or CNS shall be considered in default or be liable to the other
for any delay beyond the reasonable control of such party, including, but not
limited to, acts of God, explosion, earthquake, fire, flood, war whether
declared or not, accident, strikes, labor disturbances, inability to procure
from a third party supplier, sabotage, or order or decrees of any court or
action of a government authority. If such a delay continues for a period of more
than ten (10) consecutive days, CNS is relieved of its obligation to purchase
from Tapemark for the period of Tapemark's inability to supply and such longer
period as may be reasonably necessary to secure a supply of similar product from
a third party. Tapemark agrees to use reasonable efforts to help CNS identify
such a supplier. It is expected that Tapemark will create and maintain a
catastrophic recovery plan and present to CNS for review. CNS and Tapemark will
review this catastrophic recovery plan on each anniversary of this Agreement.

XII.     Delivery/Safety Stock:

CNS will provide to Tapemark Purchase Orders for production requirements as
outlined in Section IX. Tapemark shall, within forty-eight (48) business hours
acknowledge the purchase orders for pricing, quantity and delivery. Upon
acceptance of CNS' purchase order, Tapemark will deliver product as acknowledged
as to pricing, quantity and delivery. Pricing is based on price sheet (Exhibit
A), subject to adjustments under Section VII. The purchase order date will
reflect the month in which production requirements are needed. Individual dates
by item/purchase order will be mutually agreed upon on a routine basis based on
market fluctuations. Tapemarks' failure to meet

                                     Page 4
<PAGE>

the mutually agreed upon date will be considered a material breach of this
Agreement. Tapemark will be responsible to CNS for any additional costs incurred
by CNS as a result of Tapemark's late delivery. These costs may include, but are
not limited to, expedited costs either from Tapemark or to CNS' customers, late
charges assessed by CNS' customers, and overtime costs. No terms or conditions
on any purchase orders or acknowledgements or similar sales documents shall be
effective to add terms to or vary the terms of this agreement.

XIII.    Account Representation:

Tapemark agrees during the term of this Agreement to designate an individual as
an Account Representative to represent Tapemark and be a primary contact person
to CNS. The Account Representative's responsibilities may include, but are not
limited to, development of new business opportunities, production requirement
submissions, material lead-time planning, delivery issues, quality issues, and
quantity issues.

XIV.     No assignment or delegation:

Neither this Agreement nor any of the rights and obligations of a party
hereunder shall be assigned, delegated, sold, transferred, sublicensed or
otherwise, to any third party without the prior written consent of the other
party not to be unreasonably withheld; provided, however, that CNS may, without
such consent, assign this Agreement and its rights and obligations hereunder in
connection with the sale or disposition by merger or consolidation of all or
substantially all of its assets related to the sale of nasal dilators.

XV.      Entire Agreement

This Agreement constitutes the entire agreement between parties. No other
agreement not expressed in this Agreement shall have any force or effect, and no
modification, amendment or change of any kind to this Agreement shall be
effective unless it is in writing and signed by each of the parties to this
Agreement.

XVI.     Governing Law

This Agreement shall be governed by Minnesota law. The parties consent to
jurisdiction of the courts of the state of Minnesota and concerning any dispute
concerning or related to this Agreement or its formation.

XVII.    Governing Law/Arbitration

This Agreement shall be governed by Minnesota law. Any controversy or claim
arising out of or relating to this Agreement, its formation or the breach
thereof shall be settled by

                                     Page 5
<PAGE>

arbitration before a single arbitrator. The arbitration shall be administered by
the American Arbitration Association under its Commercial Arbitration Rules, and
judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.

/s/ Erik P. Switzer           10/15/01    /s/ Connie Fagen              10/10/01
-----------------------------             -----------------------------
Erik P. Switzer                           Connie Fagen
Purchasing Manager, CNS, Inc.             Business Unit Manager
                                          Tapemark, Inc.

/s/ Larry Muma                10/15/01    /s/ Doug Graham               10/15/01
-----------------------------             -----------------------------
Larry Muma                                Doug Graham
VP of Operations, CNS, Inc.               VP of Sales and Marketing
                                          Tapemark, Inc.

                                     Page 6
<PAGE>

                                    EXHIBIT A

                                    [* * * *]

                                     Page 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]