Document:

EXHIBIT
10.7

FORM OF NONQUALIFIED STOCK OPTION AWARD AGREEMENT FOR
DIRECTORS
Issued Pursuant to the
 Sona Mobile Holdings Corp.
2006 Incentive Plan

THIS OPTION AWARD AGREEMENT
(‘‘Agreement’’), effective
                    , 2006, (the
‘‘Date of Grant’’) represents the grant of
a stock option (‘‘Option’’) by Sona Mobile
Holdings Corp. (the ‘‘Company’’), to
                             (the
‘‘Participant’’) pursuant to the provisions
of the Sona Mobile Holdings Corp. 2006 Incentive Plan adopted
August  15,  2006 and approved by shareholders
September  29,  2006 (the
‘‘Plan’’), as may be amended from time to
time. The Option granted hereby is not intended to be an
‘‘ISO’’, as such term is defined in the
Plan, within the meaning of Section 422 of the Code.

The Plan
provides a complete description of the terms and conditions governing
this Option. If there is any inconsistency between the terms of this
Agreement and the terms of the Plan, the Plan’s terms shall
completely supersede and replace the conflicting terms of this
Agreement. All capitalized terms shall have the meanings ascribed to
them in the Plan, unless specifically set forth otherwise herein, and
the receipt of a copy of which the Participant hereby acknowledges by
his or her signature below. The parties hereto agree as
follows:

1.    General Option Grant
Information.    The individual named above has been selected
to be a Participant in the Plan and receive a nonqualified stock option
grant, as of the Date of Grant, as specified
below:

(a)    Number of Shares Covered by this
Option:                              

(b)    Option Price per
share:  $            

(c)    Date
of Expiration:              ,
2016

2.    Grant of Option.    The Company hereby
grants to the Participant an Option to purchase the number of Shares
set forth above, at the stated Option Price per share, which is
100% of the Fair Market Value of a Share on the Date of Grant,
in the manner and subject to the terms and conditions of the Plan and
this Agreement. The Committee has determined that the Fair Market Value
of a Share on the date of grant is equal
to  $            .

3.    Option
Term.    The term of this Option begins as of the Date of Grant
as detailed above and continues through the Date of Expiration as
detailed above, unless sooner terminated in accordance with the terms
of this Agreement.

4.    Vesting Period:    If the
Participant has continuously provided services as a director to the
Company or its Subsidiaries or Affiliates, with respect to each
incremental vesting period, this Option shall vest and be
exercisable,                                                                                      

Notwithstanding anything to the contrary set forth herein, in the
event of the occurrence of a change in control of the Company (a
‘‘Change in Control’’), the Option shall
immediately vest. For purposes of this Agreement, a
‘‘Change in Control’’ shall be deemed to
occur if: (i) there shall have occurred a change in control of the
Company of a nature that would be required to be reported in response
to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended, as in effect on the date
hereof, whether or not the Company is then subject to such reporting
requirement, provided, however, that the foregoing
event shall not be deemed to be a Change in Control if immediately
prior to such transaction the Participant or an entity of which the
Participant is an executive officer, director or more than five percent
equity holder is, directly or indirectly, one of the new controlling
parties; or (ii) the Company has merged or consolidated with, or sold
substantially all of its assets to, another company, provided,
however, that the foregoing event shall not be deemed to be a
Change in Control if immediately prior to such transaction the
Participant is an executive officer, director or more than five percent
equity holder of the other party to the transaction or of any entity
directly or indirectly controlling that party to the transaction.
Provided, further, that if in the event of a Change in Control, the
successor company assumes or substitutes 

1

options for its shares for this Option then
the vesting of this Option shall not be accelerated. Notwithstanding
the foregoing, in the event of a termination of the
Participant’s employment or directorship in such successor
company within twenty-four (24) months following such Change in
Control, the Option granted hereunder or the substitute option held by
such Participant at the time of the Change in Control shall vest as of
the day preceding the date of
termination.

5.    Exercise:    The Participant, or
the Participant’s representative upon the Participant’s
death or disability, may exercise this Option at any time prior to the
termination of the Option, subject to and as provided in Sections 3 and
8.

6.    How to Exercise:    Once vested, the
Options hereby granted shall be exercised by written notice to the
Company, specifying the number of Shares subject to this Option
Participant desires to exercise. The Option Price of the Options shall
be payable to the Company in full either: (a) in cash or its
equivalent; (b) by tendering (either by actual delivery or attestation)
previously acquired Shares having an aggregate Fair Market Value at the
time of exercise equal to the Option Price (provided that except as
otherwise determined by the Committee, the Shares that are tendered
must have been held by the Participant for at least six months prior to
their tender to satisfy the Option Price or have been purchased on the
open market); (c) by a combination of (a) and (b); or (d) any
other method approved or accepted by the Committee in its sole
discretion, including, without limitation, if the Committee so
determines, a cashless (broker-assisted) exercise. In no event may the
Option be exercised for a fraction of a share.

Unless otherwise
determined by the Committee, all cash payments under all of the methods
indicated above shall be paid in United States
dollars.

7.    Nontransferability.    This
Option may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent
and distribution, and may be exercised or surrendered during
Participant’s lifetime only by the Participant or his or her
guardian or legal representative. No assignment or transfer of the
Option in violation of this Section 7, whether voluntary or
involuntary, by operation of law or otherwise, except by will or the
laws of descent and distribution or as otherwise required by applicable
law, shall vest in the assignee or transferee any interest whatsoever.
Notwithstanding the foregoing, upon the request of the Participant, the
Committee may, in its sole discretion, permit the Participant to
transfer this Option under such terms and conditions as the Committee
may determine. In the event of any such transfer, the Option shall
still be subject to the provisions of Section 7 hereof and Section 6.8
of the Plan concerning the exercisability during the
Participant’s employment or
directorship.

8.    Termination of Option:    The
Option, which is exercisable as provided in Section 6 above, shall
terminate and be of no force or effect on the 730th day
after the later of (i) the date on which the Participant ceases to
serve as a director of the Company; and (ii) the date Participant
ceases to perform services in any other capacity for the Company or any
of its Subsidiaries or Affiliates, such as under a consulting contract
or under an employment agreement; provided, further,
that in no instance may the term of the Option, as so extended, exceed
the date of expiration set forth in Section 1(d),
above.

Notwithstanding anything to the contrary set forth herein,
in the event of the termination of the Participant’s employment
or directorship for Cause, the Option and all rights granted hereunder
shall be forfeited and deemed canceled and no longer exercisable on the
day of such termination of employment or directorship. For the purposes
of their Agreement, ‘‘Cause’’ shall mean
(i) any act of fraud or embezzlement in respect of the Company or any
of their respective funds, properties or assets; (ii) conviction of the
Participant of a felony or of a plea of guilty or nolo contendre
involving a felony, whether or not involving the Company; (iii) willful
misconduct or gross negligence by the participant in connection with
the performance of his or her duties to the Company or willful
violation of Company policies; (iv) intentional dishonesty by the
Participant in the performance of his or her duties to the Company; (v)
any fraud, theft, misappropriation of or embezzlement by the
Participant in connection with the performance of his or her duties to
the Company; (vi) engagement by the Participant in the use of illegal
substances or alcohol, which use has impaired the Participant’s
ability, as determined by the Board of Directors of the Company, on an
ongoing basis, to perform his or her 

2

duties to the Company; or (vii) breach by the
Participant of any terms and conditions set forth in any
non-competition, non-solicitation and/or non-disclosure agreement
executed by the Participant. A determination of Cause shall be made by
the Board of Directors of the
Company.

9.    Administration.    This Agreement
and the rights of the Participant hereunder are subject to all the
terms and conditions of the Plan, as the same may be amended from time
to time, as well as to such rules and regulations as the Committee may
adopt for administration of the Plan. It is expressly understood that
the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the
Plan and this Agreement, all of which shall be binding upon the
Participant. Any inconsistency between the Agreement and the Plan shall
be resolved in favor of the Plan.

10.    Reservation of
Shares.    The Company hereby agrees that at all times there
shall be reserved for issuance and/or delivery upon exercise of the
Option such number of Shares as shall be required for issuance or
delivery upon exercise hereof.

11.    Adjustments.    The number of Shares subject
to this Option, and the exercise price, shall be subject to adjustment
in accordance with Section 4.4 of the Plan.

12.    Exclusion from Pension Computations.    By
acceptance of the grant of this Option, the Participant hereby agrees
that any income or gain realized upon the receipt or exercise hereof,
or upon the disposition of the Shares received upon its exercise, is
special incentive compensation and shall not be taken into account, to
the extent permissible under applicable law, as
‘‘wages’’,
‘‘salary’’ or
‘‘compensation’’ in determining the amount
of any payment under any pension, retirement, incentive, profit
sharing, bonus or deferred compensation plan of the Company or any of
its Subsidiaries or Affiliates.

13.    Amendment.    The Committee may, with the
consent of the Participant, at any time or from time to time amend the
terms and conditions of the Option, and may at any time or from time to
time amend the terms of this Option in accordance with the Plan.

14.    Notices.    Any notice which either party
hereto may be required or permitted to give to the other shall be in
writing, and may be delivered personally or by mail, postage prepaid,
or overnight courier, addressed as follows: if to the Company, at its
office at 825 Third Avenue, New York, New York 10022, Attention: CEO or
at such other address as the Company by notice to the Participant may
designate in writing from time to time; and if to the Participant, at
the address shown below his or her signature on this Agreement, or at
such other address as the Participant by notice to the Company may
designate in writing from time to time. Notices shall be effective upon
receipt.

15.    Withholding Taxes.    The
Company shall have the right to withhold from a Participant, or
otherwise require such Participant or assignee to pay, any Withholding
Taxes arising as a result of exercise of the Option, or any other
taxable event occurring pursuant to the Plan or this Agreement. If the
Participant shall fail to make such tax payments as are required, the
Company (or its Affiliates or Subsidiaries) shall, to the extent
permitted by law, have the right to deduct any such Withholding Taxes
from any payment of any kind otherwise due to such Participant or to
take such other action as may be necessary to satisfy such Withholding
Taxes. In satisfaction of the requirement to pay Withholding Taxes, the
Participant may make a written election which may be accepted or
rejected in the discretion of the Committee (i) to have withheld a
portion of any Shares or other payments then issuable to the
Participant pursuant to any Award, or (ii) to tender other Shares to
the Company (either by actual delivery or attestation, in the sole
discretion of the Committee, provided that, except as
otherwise determined by the Committee, the Shares that are tendered
must have been held by the Participant for at least six (6) months
prior to their tender to satisfy the Option Price or have been
purchased on the open market), in either case having an aggregate Fair
Market Value equal to the Withholding Taxes.

16.    Registration; Legend.    The Company may
postpone the issuance and delivery of Shares upon any exercise of this
Option until (a) the admission of such Shares to listing on any stock
exchange or exchanges on which Shares of the Company of the same class
are then listed and (b) the completion of such registration or other
qualification of such Shares under any state or federal law,

3

rule or regulation as the Company shall
determine to be necessary or advisable. The Participant shall make such
representations and furnish such information as may, in the opinion of
counsel for the Company, be appropriate to permit the Company, in light
of the then existence or non-existence with respect to such Shares of
an effective Registration Statement under the Securities Act of 1933,
as amended, to issue the Shares in compliance with the provisions of
that or any comparable act.

The Company may cause the following
or a similar legend to be set forth on each certificate representing
Shares or any other security issued or issuable upon exercise of this
Option unless counsel for the Company is of the opinion as to any such
certificate that such legend is unnecessary:

NEITHER THESE
SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE ‘‘SECURITIES ACT’’), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL
BE ACCEPTABLE TO THE COMPANY.

17.    Miscellaneous.

(a)    This
Agreement shall not confer upon the Participant any right to
continuation of employment or directorship by the Company or any of its
Subsidiaries or Affiliates, nor shall this Agreement interfere in any
way with the Company’s or any of its Subsidiaries’ or
Affiliates’ right to terminate, retire or request the
termination of the Participant at any
time.

(b)    The Participant shall have no rights as
a stockholder of the Company with respect to the Shares subject to this
Option Agreement until such time as the purchase price has been paid,
and the Shares have been issued and delivered to the
Participant.

(c)    With the approval of the Board,
and if necessary, the shareholders, the Committee may terminate, amend,
or modify the Plan; provided, however, that no such termination,
amendment, or modification of the Plan may in any way adversely affect
the Participant’s rights under this Agreement.

(d)    This Agreement shall be subject to all applicable
laws, rules, and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required.

(e)    To the extent not preempted by federal law, this
Agreement shall be governed by, and construed in accordance with the
laws of the State of New York, without regard to the principles of
conflicts of law which might otherwise
apply.

(f)    All obligations of the Company under
the Plan and this Agreement, with respect to the Option, shall be
binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the
business and/or assets of the Company.

(g)    The
provisions of this Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in
whole or in part, the remaining provisions shall nevertheless be
binding and enforceable.

(h)    By accepting this
Award or other benefit under the Plan, the Participant and each person
claiming under or through the Participant shall be conclusively deemed
to have indicated their acceptance and ratification of, and consent to,
any action taken under the Plan by the Company, the Board or the
Committee.

(i)    The Participant, every person
claiming under or through the Participant, and the Company hereby
waives to the fullest extent permitted by applicable law any right to a
trial by jury with respect 

4

to any litigation directly or indirectly
arising out of, under, or in connection with the Plan or this Award
Agreement issued pursuant to the
Plan.

18.    Exculpation.    This Option and all
documents, agreements, understandings and arrangements relating hereto
have been executed by the undersigned in his/her capacity as an officer
of the Company, and not individually, and neither the Directors,
officers or shareholders of the Company nor of any Subsidiary or
Affiliate of the Company shall be bound or have any personal liability
hereunder. Each party hereto shall look solely to the assets of the
Company for satisfaction of any liability of the Company in respect of
the Option and all documents, agreements, understanding and
arrangements relating hereto and will not seek recourse or commence any
action against any of the Directors, officers or shareholders of the
Company or of any Subsidiary or Affiliate of the Company, or any of
their personal assets for the performance or payment of any obligation
hereunder or thereunder. The foregoing shall also apply to any future
documents, agreements, understandings, arrangements and transactions
between the parties hereto.

5

ACCEPTED:                                                                        

                                                                                                

            Participant

                                                                                                

            Address

                                                                                                

        City
                       State                Zip
Code

6FOURTH AMENDMENT LETTER 
	 

	 
		

	 

	 		
	
			 
				To:
			 

		  	
			 
				Allied Healthcare Holdings Limited
 Allied Healthcare Group
				Holdings Limited (formerly Allied Healthcare Group Limited)
 Stone Business
				Park
 Brooms Road
 Stone
 Staffordshire ST15 0TL
			 

			 
				Fax No: 01785 819031
			 

		  
	
			 
				Attention: David Moffatt
			 

		  

	 
		10 November 2006
	 

	 
		

	 

	 
		Dear Sirs
	 

	 
		Project Air:  Fourth Amendment Letter 
	 

	 
		We refer to the £50,000,000 facility agreement dated 19 July 2004
		between Allied Healthcare Group Limited (the “Company”),
		Allied Healthcare Holdings Limited (the “Borrower”), Allied
		Healthcare International Inc, the Guarantors listed therein, Barclays Capital
		and Lloyds TSB Bank PLC as Arrangers and Ancillary Lenders, the Original
		Lenders listed therein and Barclays Bank PLC as Agent and Security Agent (the
		“Original Facility Agreement”) as amended by an
		amendment letter dated 28 July 2006 (the “First Amendment
		Letter”), an amendment letter dated 11 September 2006 (the
		“Second Amendment Letter”), and an amendment letter dated 17
		October 2006 (the “Third Amendment Letter”). The Original
		Facility Agreement, the First Amendment Letter, the Second Amendment Letter and
		the Third Amendment Letter being, together, the “Amended
		Agreement”.
	 

	 
		1
	 

	 
		DEFINITIONS
	 

	 
		Unless otherwise stated, terms defined in the Amended Agreement have the
		same meaning in this Letter.
	 

	 
		“Fourth Effective Date” means the date on which the
		Agent notifies the Company that it has received:
	 

	 
		(i)
	 

	 
		for the Parent and each of the Obligors, either a copy of their
		respective constitutional documents or a certificate of an authorised signatory
		of each of them certifying that the constitutional documents previously
		delivered to the Agent on or before 19 July 2004 for the purposes of the
		Original Facility Agreement have not been amended and remain in full force and
		effect;
	 

	 
		(ii)
	 

	 
		a copy of a resolution of the board of directors of the Parent and each
		Obligor:
	 

	 
		(a)
	 

	 
		approving the terms of, and the transactions contemplated by, this Letter
		and resolving that it execute this Letter; and
	 

	 
		(b)
	 

	 
		authorising a specified person or persons to execute this Letter on its
		behalf;
	 

	 
		
 

	 

	 
		//
	 

	 
		1
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		(iii)
	 

	 
		a specimen of the signature of each person authorised by the resolution
		referred to in paragraph (ii) above;
	 

	 
		(iv)
	 

	 
		a certificate of the Company (signed by a director) confirming that
		borrowing or guaranteeing, as appropriate, the Facility A Commitment and the
		Facility B Commitment under the Amended Agreement would not cause any
		borrowing, guaranteeing or similar limit binding on the Parent or any Obligor
		to be exceeded; and
	 

	 
		(v)
	 

	 
		a certificate of an authorised signatory of the Parent and the relevant
		Obligor certifying that each copy document listed at (i) to (iv) above is
		correct, complete and in full force and effect as at a date no earlier than the
		date of this Letter.
	 

	 
		2
	 

	 
		OVERDRAFT
	 

	 
		2.1
	 

	 
		The Bank agrees, subject to the terms and conditions of this Letter, to
		continue to make the Overdraft Facility available to the Borrower from the
		Fourth Effective Date. The Overdraft Facility shall also continue to be made
		available on an uncommitted basis and may be cancelled by the Bank at any time
		by notice to the Borrower.
	 

	 
		2.2
	 

	 
		The Overdraft Facility will be available for utilisation by way of
		overdraft on the current account of the Borrower held with the Bank.
	 

	 
		2.3
	 

	 
		The total utilisations in respect of the Overdraft Facility at any time
		shall not exceed  £3,000,000. The Bank may refuse any utilisation
		request that would result in this limit being exceeded.
	 

	 
		2.4
	 

	 
		The Overdraft Facility shall be repayable by the Borrower on an “on
		demand basis”, that is to say that the Bank may at any time and without
		giving any reason therefore demand immediate repayment of all or any part the
		Overdraft Facility or may by notice immediately cancel any part of the
		Overdraft Facility, whereupon it shall be immediately due and payable to the
		Bank.
	 

	 
		2.5
	 

	 
		The Borrower shall apply all amounts borrowed under the Overdraft
		Facility for its general corporate purposes.
	 

	 
		2.6
	 

	 
		To the extent that no demand is made in respect of the Overdraft Facility
		on or prior to 12 December 2006, the Borrower shall ensure that all amounts
		outstanding in respect of the Overdraft Facility are reduced to zero, and the
		Overdraft Facility shall be automatically cancelled, on 12 December 2006.
	 

	 
		2.7
	 

	 
		Interest on the Overdraft Facility shall be charged at the same rate as
		is applicable to Facility B under the Amended Agreement and shall be computed
		on a 365 day basis and shall be payable on demand, or if no such demand is made
		on or prior to 12 December 2006, on 12 December 2006.
	 

	 
		2.8
	 

	 
		The provisions of Clause 13 of the Amended Agreement shall be
		incorporated into this Letter as if set out in full and shall apply in respect
		of the Overdraft Facility.
	 

	 
		2.9
	 

	 
		If the Bank does allow any utilisation resulting in the facility limit
		being exceeded in respect of the Overdraft Facility, it will not mean that such
		limit has changed or that the Bank will agree to any other utilisation which
		would have the effect of exceeding the limit and the right of the Bank to
		charge an unauthorised excess margin and / or unauthorised excess fee pursuant
		to Clause 2.10 below does not constitute an agreement by the Bank to permit
		borrowings in excess of any limit applicable to the Overdraft Facility.
	 

	 
		
 

	 

	 
		//
	 

	 
		2
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		2.10
	 

	 
		To the extent that at any time the aggregate total utilisations under the
		Overdraft Facility exceed £3,000,000 without the prior written consent of
		the Bank (each such instance an “Excess”), the Bank shall be
		entitled to charge the Borrower:
	 

	 
		2.10.1
	 

	 
		a fee in the amount of £10,000 for each instance of such an Excess
		arising; and
	 

	 
		2.10.2
	 

	 
		interest on the entire amount outstanding under the Overdraft Facility at
		the time of Excess calculated at a rate of 15% per annum above the Bank’s
		base rate from time to time, such default rate of interest to remain applicable
		until any relevant Excess has been repaid and the total utilisation under the
		Overdraft Facility have been reduced to below £3,000,000. Any interest
		payable pursuant to this Clause 2.10.2 shall be computed on a 365 day basis and
		shall be payable on demand, or if no such demand is made on or prior to 12
		December 2006, on 12 December 2006.
	 

	 
		2.11
	 

	 
		The Obligors hereby confirm that the Security granted in favour of the
		Security Agent pursuant to the Security Documents is granted as continuing
		security for present and future moneys, debts and liabilities due, owing or
		incurred by the Borrower under or in connection with any Finance Document,
		including by virtue of the designation of this Letter as a Finance Document,
		any present and future moneys, debts and liabilities due, owing or incurred by
		the Borrower under or in connection with the Overdraft Facility.
	 

	 
		3
	 

	 
		COVENANTS
	 

	 
		3.1
	 

	 
		Resetting of Financial Covenants
	 

	 
		The Lenders and the Company hereby undertake to use all reasonable
		endeavours to agree, on or prior to 12 December 2006, a revised Clause 21 of
		the Amended Agreement, such revised Clause 21 to be in form and substance
		satisfactory to the Lenders.
	 

	 
		3.2
	 

	 
		Acquisition Covenant
	 

	 
		Notwithstanding the provisions of Clause 22.11 of the Amended Agreement,
		the Parent and each Obligor undertakes that it will not (and the Company
		undertakes that it will ensure that no other member of the Group will), on or
		prior to 12 December 2006:
	 

	 
		3.2.1
	 

	 
		invest in or acquire any share in, or any security issued by, any person,
		or any interest therein or in the capital of any person, or make any capital
		contribution to any person (or agree to do any of the foregoing); or
	 

	 
		3.2.2
	 

	 
		invest in or acquire any business or going concern, or the whole or
		substantially the whole of the assets or business of any person, or any assets
		that constitute a division or operating unit of the business of any person (or
		agree to do any of the foregoing); or
	 

	 
		3.2.3
	 

	 
		enter into any joint venture agreement with any person; or
	 

	 
		3.2.4
	 

	 
		acquire or agree to acquire any other assets other than in the ordinary
		course of trading,
	 

	 
		without the prior written consent of the Lenders.
	 

	 
		4
	 

	 
		AMENDMENTS 
	 

	 
		4.1
	 

	 
		Amendment to the Amended Agreement
	 

	 
		The parties to this Letter agree that, with effect from the Fourth
		Effective Date, the Amended Agreement shall be amended as follows:
	 

	 
		
 

	 

	 
		//
	 

	 
		3
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		(a)
	 

	 
		In Clause 20.8 the words “10 November” shall be deleted and
		replaced by the words “12 December”.
	 

	 
		(b)
	 

	 
		In Clause 20.9 the words “10 November” shall be deleted and
		replaced by the words “12 December”.
	 

	 
		4.2
	 

	 
		Continuing obligations
	 

	 
		The provisions of the Amended Agreement and the other Finance Documents
		shall, save as amended by this Letter, continue in full force and effect. Where
		there is any inconsistency between the terms of this Letter and the Amended
		Agreement, the terms of this Letter will apply.
	 

	 
		5
	 

	 
		COSTS AND EXPENSES
	 

	 
		5.1
	 

	 
		Transaction costs
	 

	 
		The Company shall within three Business Days of demand reimburse the
		Agent for the amount of all costs and expenses (including legal fees)
		reasonably incurred by the Agent in connection with the negotiation,
		preparation, printing and execution of this Letter and any other documents
		referred to in this Letter.
	 

	 
		5.2
	 

	 
		Ongoing incidental costs
	 

	 
		Without prejudice to the generic costs and expenses provisions in Clause
		17 of the Amended Agreement and elsewhere in the Finance Documents the Company
		shall, for the period from the Fourth Effective Date to 12 December 2006,
		within seven Business Days of demand reimburse the Secured Party for the amount
		of all travel costs and incidental expenses reasonably incurred by that Secured
		Party at any time after the Fourth Effective Date in connection with any
		meetings required with the Company, the Parent or other Group members to
		discuss the protection or preservation of rights under this Letter and any
		other document referred to in this Letter and in connection with the
		consideration and/or discussion of the independent business review with the
		Company, the Parent and/or other Group members and/or with the Reporting
		Accountants.
	 

	 
		5.3
	 

	 
		Payment of Fees, Costs and Expenses
	 

	 
		The Company hereby irrevocably authorises the Lender to cause the Company
		to satisfy any payment obligations arising pursuant to this Clause 5 by
		debiting any bank account of the Company held with the Lender.
	 

	 
		6
	 

	 
		LOSS SHARE
	 

	 
		6.1
	 

	 
		In consideration of the Bank providing the Overdraft Facility, each of
		the Lenders agrees that, to the extent that the Bank does not recover within 30
		days of making demand all amounts owing to it in connection with the Overdraft
		Facility, they shall pay to the Bank within 5 Business Days of demand, the
		proportion of such shortfall as is equal to each Lenders’ percentage
		participation in the Total Facility Commitments (any such payment a
		“Loss Share Payment”).
	 

	 
		6.2
	 

	 
		For the avoidance of doubt, no Lender shall be required to make any Loss
		Share Payment(s) pursuant to Clause 6.1 above in an aggregate amount in excess
		of £1,500,000.
	 

	 
		6.3
	 

	 
		To the extent that any Loss Share Payment is made pursuant to Clause 6.1
		above, such Lender shall be subrogated to the extent possible to that part of
		the Bank’s claim under the
	 

	 
		
 

	 

	 
		//
	 

	 
		4
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Overdraft Facility against the Borrower which corresponds to the relevant
		Loss Share Payment. However, for the avoidance of doubt, no such Lender shall
		receive any payment from or exercise any rights against the Borrower as a
		result of such subrogation until after the Bank has received the relevant Loss
		Share Payment from it.
	 

	 
		7
	 

	 
		AMENDMENT AND RESTATEMENT
	 

	 
		The Lenders hereby confirm that it is their current intention to enter
		into negotiations with the Company with a view to agreeing, on terms acceptable
		to all parties, an amendment and restatement to the Amended Agreement on or
		prior to 12 December 2006. For the avoidance of doubt, this Clause 7 does not
		constitute a legally binding commitment to enter into any such amendment and
		restatement agreement.
	 

	 
		8
	 

	 
		MISCELLANEOUS
	 

	 
		8.1
	 

	 
		Guarantors
	 

	 
		Each of the Guarantors and the Parent agree to each of the provisions of
		this Letter, including without limitation, the provision of the Overdraft
		Facility and the amendments to the Amended Agreement contemplated by this
		Letter and each agrees that (i) nothing in this Letter effects its obligations
		as a Guarantor or in the case of the Parent as the Parent and (ii) its
		obligations as a Guarantor or in the case of the Parent as the Parent, extend
		to the Overdraft Facility.
	 

	 
		8.2
	 

	 
		Reservation of Rights
	 

	 
		This Letter is provided by the Finance Parties strictly on the basis that
		the Finance Parties reserve all rights and remedies of the Agent, the Security
		Agent and the Finance Parties under the Original Facility Agreement, the First
		Amendment Letter, the Second Amendment Letter, the Third Amendment Letter and
		the Amended Agreement. Other than as set out in this Letter, nothing in this
		Letter or done pursuant to this Letter, will constitute an amendment to or is
		intended to operate as a release or waiver of any breach or potential breach
		of, or any obligations under any Finance Document.   
	 

	 
		8.3
	 

	 
		Third Party Rights
	 

	 
		A person who is not a party to this Letter has no right under the
		Contracts (Rights of Third Parties) Act 1999 to enforce any of the provisions
		of this Letter.
	 

	 
		8.4
	 

	 
		Counterparts
	 

	 
		This Letter may be signed in a number of counterparts, and this has the
		same effect as if the signatures on the counterparts were on a single copy of
		this Letter.
	 

	 
		8.5
	 

	 
		Joint and Several Obligations
	 

	 
		The obligations of the Finance Parties under this Letter are several. The
		obligations of the Obligors under this Letter are joint and several.
	 

	 
		8.6
	 

	 
		Finance Documents 
	 

	 
		In accordance with the Amended Agreement, each of the Company and the
		Agent designate this Letter as a Finance Document.
	 

	 
		9
	 

	 
		GOVERNING LAW
	 

	 
		This Letter will be governed and construed in accordance with English
		law.
	 

	 
		
 

	 

	 
		//
	 

	 
		5
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		We hereby agree to the terms of this Letter:
	 

	 
		The Original Lenders
	 

	 
		Barclays Bank PLC
	 

	 
		

	 

	 
		By: /s/ Alan Douglas
	 

	 
		

	 

	 
		Lloyds TSB Bank plc
	 

	 
		

	 

	 
		By: /s/ Rebecca Killeen
	 

	 
		

	 

	 
		Ancillary Lenders
	 

	 
		Barclays Bank PLC
	 

	 
		

	 

	 
		By: /s/ Alan Douglas
	 

	 
		

	 

	 
		Lloyds TSB Bank plc
	 

	 
		

	 

	 
		By: /s/ Rebecca Killeen
	 

	 
		

	 

	 
		The Bank
	 

	 
		Barclays Bank PLC
	 

	 
		

	 

	 
		By: /s/ Alan Douglas
	 

	 
		

	 

	 
		The Agent
	 

	 
		Barclays Bank PLC
	 

	 
		

	 

	 
		By: /s/ Colin Gilmore
	 

	 
		

	 

	 
		The Security Agent
	 

	 
		Barclays Bank PLC
	 

	 
		

	 

	 
		By: /s/ Colin Gilmore
	 

	 
		

	 

	 
		
 

	 

	 
		//
	 

	 
		6
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Agreed and accepted by:
	 

	 
		The Company
	 

	 
		Allied Healthcare Group Holdings Limited (formerly Allied Healthcare
		Group Limited)
	 

	 
		

	 

	 
		By: /s/ Timothy Aitken
	 

	 
		 
	 

	 
		

	 

	 
		The Parent
	 

	 
		Allied Healthcare International Inc.
	 

	 
		

	 

	 
		By: /s/ Timothy Aitken
	 

	 
		

	 

	 
		

	 

	 
		The Original Borrower
	 

	 
		Allied Healthcare Holdings Limited
	 

	 
		

	 

	 
		By: /s/ Timothy Aitken
	 

	 
		

	 

	 
		

	 

	 
		The Original Guarantors 
	 

	 
		Allied Healthcare Group Holdings Limited (formerly Allied Healthcare
		Group Limited)
	 

	 
		

	 

	 
		By: /s/ Timothy Aitken
	 

	 
		

	 

	 
		Allied Healthcare Holdings Limited
	 

	 
		

	 

	 
		By: /s/ Timothy Aitken
	 

	 
		

	 

	 
		Allied Healthcare Group Limited (formerly Allied Healthcare (UK) Limited)

	 

	 
		

	 

	 
		By:/s/ Paul Weston
	 

	 
		

	 

	 
		

	 

	 
		
 

	 

	 
		//
	 

	 
		7
	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Allied Respiratory Limited (formerly Allied Oxycare Limited)
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		Balfor Medical Limited
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		Crystalglen Limited
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		Medigas Limited
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		Nightingale Nursing Bureau Limited
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		Omnicare Limited
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		Allied Staffing Professionals Limited (formerly Staffing Enterprise
		Limited)
	 

	 
		
	 

	 
		

	 

	 
		By: /s/ Paul Weston
	 

	 
		

	 

	 
		
 

	 

	 
		//
	 

	 
		8

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