Document:

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                              EMPLOYMENT AGREEMENT

                  This is an Agreement made and entered into as of January 1,
2003, between AIR METHODS CORPORATION, a Delaware corporation (the "Company"),
and Sharon J. Keck (the "Executive").

                                    RECITALS

                  Executive is presently employed by the Company and has been
since the year 1993. The Executive has been appointed to the position of Chief
Accounting Officer. The Company and the Executive desire to set forth in this
Agreement the terms and conditions of the Executive's continued employment by
the Company, effective as the date first set forth above.

                                    AGREEMENT

                  In consideration of the mutual promises contained herein, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

                  1.       Employment; Position; Term. The Company hereby
employs the Executive, and the Executive hereby accepts employment with the
Company, in the capacity of Chief Accounting Officer. Subject to Section 4, the
term of the Executive's employment under this Agreement shall be for one (1)
year, beginning January 1, 2003. The term of this Agreement shall be extended
for successive one-year periods on January 1 of each year beginning January 1,
2004, unless on or before three months prior to any such renewal date the
Company or the Executive provides written notice to the other of its or her
intention not to renew.

                  2.       Duties, Responsibilities and Authority. In her
capacity as Chief Accounting Officer, the Executive shall have primary
responsibility for the maintenance of the Company's financial books and records
and preparation of financial reports to the Company's stockholders and
regulatory agencies of the Company, which responsibilities shall be discharged
in accordance with policies established by the Company's board of directors (the
"Board"). In her capacity as Chief Accounting Officer, the Executive shall
report to the Chief Financial Officer and be subject to the additional direction
and control of the Chief Executive Officer and the Board. The Executive shall
devote her full professional and managerial time and effort to the performance
of her duties as Chief Accounting Officer, and she shall not engage in any other
business activity or activities which, in the mutual judgment of the Executive
and the Board, do, in fact, conflict with the performance of her duties under
this Agreement.

                  3.       Compensation.

                           (a)      Salary. For services rendered under this
Agreement, the Company shall pay the Executive a salary of $135,000 per annum.

                           (b)      Annual Review and Salary Adjustment. The
Executive's salary will not be reviewed during the calendar year 2003. The
Executive's first salary review shall be for the period ending December 31,
2003, and, as appropriate, her salary shall be adjusted

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effective January 1, 2004 and shall be reviewed annually thereafter during the
term of this Agreement.

                           (c)      Stock Options. The Executive may participate
in stock option programs of the Company in accordance with the policies
applicable to other officers of the Company upon such terms as the
administrators of such programs in their discretion determine.

                           (d)      Benefits and Vacation. The Executive shall
be eligible to participate in such insurance programs (health, disability, or
life) or such other health, dental, retirement, or similar employee benefits
programs as the Board may approve, on a basis comparable to that available to
other officers and executive employees of the Company. The Executive shall be
entitled to four (4) weeks of paid vacation per year. The Executive may
accumulate up to one and one-half times her annual vacation accrual rate at any
one time. The value of any unforfeited, accrued but unused vacation time shall
be paid in cash to the Executive upon termination of her employment for any
reason.

                           (e)      Reimbursement of Expenses. The Company shall
reimburse the Executive for all reasonable out-of-pocket expenses incurred by
the Executive in connection with the business of the Company and in the
performance of her duties under this Agreement upon the Executive's presentation
to the Company of an itemized accounting of such expenses with reasonable
supporting data.

                  4.       Termination. Either party may terminate the
Executive's employment under this Agreement, without cause, upon ninety (90)
days' written advance notice to the other party, but subject to the provisions
of Section 7 hereof. The Company may terminate the Executive's employment for
"Cause" (as hereinafter defined) immediately upon written notice stating the
basis for such termination. "Cause" for termination of the Executive's
employment shall only be deemed to exist if the Executive has breached this
Agreement and if such breach continues or recurs more than 30 days after notice
from the Company specifying the action which constitutes the breach and
demanding its discontinuance, exhibited willful disobedience of reasonable
directions of the Board, or committed gross malfeasance in performance of her
duties hereunder or acts resulting in an indictment charging the Executive with
the commission of a felony; provided that the commission of acts resulting in
such an indictment shall constitute Cause only if a majority of the directors
who are not also subject to any such indictment determine that the Executive's
conduct was willful and has substantially adversely affected the Company or its
reputation. A material failure to perform her duties hereunder that results from
the disability of the Executive shall not be considered Cause for her
termination.

                  5.       Disability. If the Executive shall be prevented by
illness, accident, or other incapacity from properly performing her duties
hereunder (and, if required by the Company, upon the furnishing of evidence
satisfactory to the Company of such disability), the Company shall, during the
continuance of her disability but only for the remaining term of this Agreement
or six (6) months, whichever is greater, pay the Executive her compensation
payable under the provisions of Section 3 (above) and continue to provide the
Executive all other benefits provided hereunder, provided that any amount
received during such time by the Executive under a disability insurance policy
carried by the Company shall be credited against the compensation due to the
Executive. As used herein, the term "disability" shall mean the complete and
total inability of the Executive, due to illness, physical or comprehensive
mental impairment to

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substantially perform all of her duties as described herein for a consecutive
period of thirty (30) days or more.

                  6.       Death. In the event of the death of the Executive,
except with respect to any benefits which have accrued and have not been paid to
the Executive hereunder, the provisions of this Employment Agreement shall
terminate immediately. However, the Executive's estate shall have the right to
receive compensation due to the Executive as of and to the date of her death
and, furthermore, to receive an additional amount equal to one-twelfth (1/12) of
the Executive's annual compensation then in effect as specified in Section 3,
above.

                  7.       Severance Pay. Subject to the conditions set forth
below, in the event that the Executive's employment is terminated by the Company
other than for Cause, whether during or after the term of this Agreement, the
Executive shall be entitled, for a period of twelve (12) months following the
termination, to receive compensation at an annual rate equal to the Executive's
highest cash compensation received during any 12-month period of her employment,
payable at the Company's regular payment intervals; provided, that if any of
such payments would (i) constitute a "parachute payment" within the meaning of
Section 280G of the Internal Revenue Code of 1986 (the "Code") and (ii) but for
this proviso be subject to the excise tax imposed by Section 4999 of the Code
(the "Excise Tax"), the amount payable hereunder shall be reduced to the largest
amount which the Executive determines would result in no portion of the payments
hereunder being subject to the Excise Tax. In addition, the Executive shall be
entitled to continue to receive at the Company's expense, coverage under the
Company's health insurance policies, or comparable coverage, during the term of
such severance payments, but only until the Executive begins other employment in
connection with which she is entitled to health insurance coverage. As a
condition of the Executive's right to receive severance compensation as provided
above, the Executive shall sign and deliver to the Company a release of all
claims that the Executive might otherwise assert against the Company, in a form
approved by the Company. If the Executive voluntarily resigns her employment
hereunder, or if her employment is terminated for Cause, the Executive shall not
be entitled to any severance pay or other compensation beyond the date of
termination of her employment.

                  8.       Change of Control/Constructive Termination. In the
event that a Change of Control of the Company, as hereinafter defined, occurs,
and the Executive's employment by the Company, or a successor to the business of
the Company, is terminated by the Company or the successor in connection with,
or within one year after, the occurrence of such Change of Control, or if, after
a Change of Control, the Executive terminates her employment as a result of a
"constructive termination" of her employment by the Company or such successor,
the Executive shall be entitled for a period of two (2) years following such
termination or constructive termination, to receive compensation at an annual
rate equal to the Executive's highest cash compensation received during any
12-month period of her employment, payable at the Company's regular payment
intervals; provided, that if any of such payments would (i) constitute a
"parachute payment" within the meaning of Section 280G of the Internal Revenue
Code of 1986 (the "Code") and (ii) but for this proviso be subject to the excise
tax imposed by Section 4999 of the Code (the "Excise Tax"), the amount payable
hereunder shall be reduced to the largest amount which the Executive determines
would result in no portion of the payments hereunder being subject to the Excise
Tax. For purposes of this Section, a "constructive termination" by the Company
or its successor shall be deemed to occur if the Executive is

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assigned to another position, not comparable in terms of salary, duties, status
or authority, or substantially reducing the Executive's job responsibilities and
authority from the position, responsibilities and/or authority held by the
Executive prior to the Change of Control, or if the Executive's place of work
shall be moved more than 75 miles from the Executive's place of work with the
Company prior to the Change of Control. For purposes of this Section 8, a Change
of Control shall be deemed to have occurred in the event that a merger, sale of
assets, sale or exchange of stock, or other corporate reorganization occurs with
another corporation or other entity, following which and as a result of which,
at least 50% of the ownership interest of the surviving corporation is held by
persons other than the shareholders of the Company prior to such transaction, or
a majority of the directors of the surviving corporation are persons other than
the directors of the Company prior to such transaction. Any notice by the
Executive to the Company or its successor claiming a constructive termination of
the Executive shall specify the claimed default by the Company or the successor
and the Company or its successor shall have ninety (90) days to make such
modifications in the Executive's working relationship as to overcome the
constructive termination.

                  9.       Indemnification. The Company shall, to the full
extent permitted by applicable law, indemnify the Executive and hold her
harmless if she is a party, or is threatened to be made a party, to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, or investigative, by reason of the fact that the
Executive is or was an officer and employee of the Company or is or was serving
at the request of the Company as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by the Executive in connection
with such action, suit or proceeding so long as the Executive acted in good
faith and in a manner that she reasonably believed to be in or not opposed to
the best interests of the Company and, with respect to any criminal action or
proceeding, had no reasonable cause to believe her conduct was unlawful. To the
fullest extent permitted by law, the Company shall pay such expenses of the
Executive in advance of the final disposition of such action upon satisfying
such conditions as may be imposed by law with respect to such advances.

                  10.      Covenant Not to Compete. During the continuance of
her employment by the Company and for a period of twelve (12) months after
termination of her employment, the Executive shall not, anywhere in the United
States, engage in any business which competes directly or indirectly with the
Company. Any company or business which is engaged in the air medical transport
business or the business of furnishing or retrofitting aircraft to provide
medical transports shall be deemed to be engaged in business in competition with
the Company.

                  11.      Trade Secrets and Confidential Information. During
her employment by the Company, and for a period of five years thereafter, the
Executive shall not, directly or indirectly, use, disseminate, or disclose for
any purpose other than for the purposes of the Company's business, any of the
Company's confidential information or trade secrets, unless such disclosure is
compelled in a judicial proceeding. Upon termination of her employment, all
documents, records, notebooks, and similar repositories of records containing
information relating to any trade secrets or confidential information then in
the Executive's possession or control, whether prepared by her or by others,
shall be left with the Company or returned to the Company upon its request.

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                  12.      Severability. It is the desire and intent of the
parties that the provisions of Sections 10 and 11 shall be enforced to the
fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, if any particular
sentence or portion of either Section 10 or 11 shall be adjudicated to be
invalid or unenforceable, the remaining portions of such section nevertheless
shall continue to be valid and enforceable as though the invalid portions were
not a part thereof. In the event that any of the provisions of Section 10
relating to the geographic areas of restriction or the period of restriction
shall be deemed to exceed the maximum area or period of time which a court of
competent jurisdiction would deem enforceable, the geographic areas and times
shall, for the purposes of this Agreement, be deemed to be the maximum areas or
time periods which a court of competent jurisdiction would deem valid and
enforceable in any state in which such court of competent jurisdiction shall be
convened.

                  13.      Injunctive Relief. The Executive agrees that any
violation by her of the agreements contained in Sections 10 and 11 are likely to
cause irreparable damage to the Company, and therefore agrees that if there is a
breach or threatened breach by the Executive of the provisions of said sections,
the Company shall be entitled to an injunction restraining the Executive from
such breach. Nothing herein shall be construed as prohibiting the Company from
pursuing any other remedies for such breach or threatened breach.

                  14.      Miscellaneous.

                           (a)      Notices. Any notice required or permitted to
be given under this Agreement shall be directed to the appropriate party in
writing and mailed or delivered, if to the Company, 7301 South Peoria,
Englewood, Colorado 80112 or to the Company's then principal office, if
different, and if to the Executive, to such address as the Executive may have
furnished to the Company for this purpose or, if the Executive has furnished no
such address, to the Executive's last known address as shown on the Company's
records.

                           (b)      Binding Effect. This Agreement is a personal
service agreement and may not be assigned by the Company or the Executive,
except that the Company may assign this Agreement to a successor by merger,
consolidation, sale of assets or other reorganization. Subject to the foregoing,
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors, assigns, and legal representatives.

                           (c)      Amendment. This Agreement may not be amended
except by an instrument in writing executed by each of the parties hereto.

                           (d)      Applicable Law. This Agreement is entered
into in the State of Colorado and for all purposes shall be governed by the laws
of the State of Colorado.

                           (e)      Counterparts. This instrument may be
executed in one or more counterparts, each of which shall be deemed an original.

                           (f)      Entire Agreement. This Agreement supersedes
and replaces all prior agreements between the parties related to the employment
of the Executive by the Company.

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                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.

                                    AIR METHODS CORPORATION

                                    By: /s/ Aaron D. Todd
                                       --------------------------------------
                                       Aaron D. Todd, Chief Executive Officer

                                    THE EXECUTIVE:

                                    /s/ Sharon J. Keck
                                    -----------------------------------------

                                      -6-<PAGE>
                                                                    EXHIBIT 10.7

                        Prudential Capital Partners, L.P.
                Prudential Capital Partners Management Fund, L.P.
                       Four Embarcadero Center, Suite 2700
                          San Francisco, CA 94111-4180

                                                 November 12, 2003

Air Methods Corporation
ARCH Air Medical Service, Inc.
Mercy Air Service, Inc.
Rocky Mountain Holdings, L.L.C.
7301 South Peoria
Englewood, Colorado 80112

         Re:  Fourth Amendment/Waiver to Securities Purchase Agreement, dated
              as of October 16, 2002
              ---------------------------------------------------------------

Ladies and Gentlemen:

         Reference is made to the Securities Purchase Agreement, dated as of
October 16, 2002 (as amended, restated or supplemented from time to time, the
"PURCHASE AGREEMENT"), by and between Air Methods Corporation ("AIR METHODS"),
ARCH Air Medical Service, Inc., Mercy Air Service, Inc. and Rocky Mountain
Holdings, L.L.C. ("RMH") (collectively, the "CO-OBLIGORS"), on the one hand, and
Prudential Capital Partners, L.P. ("PCP") and Prudential Capital Partners
Management Fund, L.P. ("PCPMF", and together with PCP, the "PURCHASERS"), on the
other hand. Capitalized terms used and not otherwise defined herein shall have
the meanings provided in the Purchase Agreement.

         Pursuant to the request of the Co-Obligors and the provisions of
paragraph 12C of the Purchase Agreement, and subject to the terms and conditions
of this letter agreement, the Purchasers hereby: (i) waive the Event of Default
that resulted from the Co-Obligors' non-compliance during the fiscal quarter
ended September 30, 2003 with paragraph 7A(5) of the Purchase Agreement (Minimum
Consolidated EBITDA); and (ii) consent, notwithstanding anything to the contrary
in paragraph 7J of the Purchase Agreement, to the prepayment by any of the
Co-Obligors of Aircraft Indebtedness with the net proceeds of an offering of the
equity securities of Air Methods, but only if there is at least $10 million of
availability under the Senior Credit Facility at the time of any such
prepayment.

         Pursuant to the request of the Co-Obligors and the provisions of
paragraph 12C of the Purchase Agreement, and subject to the terms and conditions
of this letter agreement, the Purchasers hereby agree with the Co-Obligors that:

         1. Paragraph 4A(1) of the Purchase Agreement is hereby amended to (i)
delete the term "100%" set forth in the ninth line thereof and replace such term
with "106%", and (ii) delete the date "July 1, 2004" set forth in the last line
thereof and replace such date with "December 31, 2004".

         2. Paragraph 4A(2) of the Purchase Agreement is hereby amended to (i)
delete the date "July 1, 2004" set forth in the second line thereof and replace
such date with "December 31, 2004", and (ii) delete the reference to "7/1/2004"
set forth in the first line of the table set forth therein and replace such
reference with "12/31/2004".

<PAGE>

AIR METHODS CORPORATION
November 12, 2003
Page 2

         3. The caption and contents of paragraph 7A(5) are deleted in their
entirety and replaced with "INTENTIONALLY OMITTED".

         4. Each of Schedule 9D, 9R, 9Q and 9U is amended and restated in the
form set forth behind the Addendum to this letter agreement.

         Each of the waiver and amendments set forth in this letter agreement
shall be limited precisely as written and shall not be deemed to be (a) an
amendment, consent or waiver of any other terms or conditions of the Purchase
Agreement or any other document related to the Purchase Agreement or (b) a
consent to any future amendment, consent or waiver. Except as expressly set
forth in this letter, the Purchase Agreement and the documents related to the
Purchase Agreement shall continue in full force and effect.

         Each Co-Obligor hereby represents and warrants as follows (both before
and after giving effect to the effectiveness of this letter agreement): (i) No
Default or Event of Default has occurred and is continuing (or would result from
the transactions contemplated by this letter agreement) other than the Events of
Default as set forth hereinabove; (ii) such Co-Obligor's execution, delivery and
performance of the Purchase Agreement, as modified by this letter agreement,
have been duly authorized by all necessary corporate and other action and do not
and will not require any registration with, consent or approval of, or notice to
or action by, any Person (including any governmental authority) in order to be
effective and enforceable; (iii) the Purchase Agreement, as modified by this
letter agreement, constitutes the legal, valid and binding obligation of such
Co-Obligor, enforceable against such Co-Obligor in accordance with its terms
except as the enforceability thereof may be limited by bankruptcy, insolvency or
other similar laws of general application relating to or affecting the
enforcement of creditors' rights or by general principles of equity; and (iv)
each of the representations and warranties set forth in paragraph 9 of the
Purchase Agreement is true, correct and complete as of the date hereof after
giving effect to the amendment and restatement of each of Schedule 9D, 9R, 9Q
and 9U in the form set forth behind the Addendum to this letter agreement
(except to the extent such representations and warranties expressly relate to
another date, in which case such representations and warranties are true,
correct and complete as of such other date).

         The Co-Obligors agree to pay to the Purchasers on March 31, 2005 a
one-time fee to be shared ratably by each of the Purchasers (the "ONE-TIME FEE")
in the applicable amount set forth in the table below based on the applicable
amount of Consolidated EBITDA determined as of the fiscal year ended December
31, 2004; provided that, notwithstanding anything to the contrary in the
Purchase Agreement, including in the definition of "Consolidated EBITDA" or any
of the other definitions utilized in the definition of "Consolidated EBITDA",
Consolidated EBITDA measured as of December 31, 2004 for purpose of computing
the One-Time Fee shall not include operating results for Persons that become
Subsidiaries of Air Methods after the date hereof or for assets acquired after
the date hereof, other than acquisitions of equipment in the ordinary course of
the business of Air Methods and its Subsidiaries as conducted on the date
hereof:

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AIR METHODS CORPORATION
November 12, 2003
Page 3

<TABLE>
<CAPTION>
         Consolidated EBITDA as of 12/31/04                   Amount of One-Time Fee
         ----------------------------------                   ----------------------
         <S>                                                  <C>
            GREATER THAN $34,000,000                                       $0
            GREATER THAN $33,000,000 LESS THAN $34,000,000           $100,000
            GREATER THAN $32,000,000 LESS THAN $33,000,000           $200,000
            GREATER THAN $31,000,000 LESS THAN $32,000,000           $300,000
            GREATER THAN $30,000,000 LESS THAN $31,000,000           $400,000
            LESS THAN $30,000,000                                    $500,000
</TABLE>

For avoidance of doubt, the One-Time Fee shall be fully earned as of December
31, 2004 based on such computation of Consolidated EBITDA as of such date, and
shall be due and payable even if the Notes are prepaid on or after December 31,
2004 but prior to March 31, 2005. It shall be an immediate Event of Default
under the Purchase Agreement if the applicable amount of the One-Time Fee is not
received by the Purchasers on March 31, 2005.

         This letter agreement shall become effective on the date on which (i)
each of the Purchasers shall have received a fully executed counterpart of this
letter from each of the Co-Obligors and (ii) Bingham McCutchen LLP shall have
received from the Co-Obligors its accrued and unpaid legal fees and expenses.

         This document may be executed in multiple counterparts, which together
shall constitute a single document.

         If you are in agreement with the foregoing, please sign the enclosed
counterpart of this letter in the space indicated below and return it to the
Purchasers at the above address whereupon, subject to the conditions expressed
herein, it shall become a binding agreement between the Co-Obligors and the
Purchasers.

                                             Sincerely,

                                             PRUDENTIAL CAPITAL PARTNERS, L.P.

                                             By: Prudential Capital Group, L.P.,
                                             General Partner

                                             By: /s/ Stephen J. DeMartini
                                                --------------------------------
                                             Its:  Vice President

                                             PRUDENTIAL CAPITAL PARTNERS,
                                             MANAGEMENT FUND, L.P.

                                             By: Prudential Investment
                                             Management, Inc., General Partner

                                             By: /s/ Stephen J. DeMartini
                                                --------------------------------
                                             Its:  Vice President

<PAGE>

AIR METHODS CORPORATION
November 12, 2003
Page 4

Accepted and agreed to as of the date first appearing above:

AIR METHODS CORPORATION

By: /s/ Trent J. Carman
    ----------------------------------------
Its: Chief Financial Officer

ARCH AIR MEDICAL SERVICE, INC.

By: /s/ Trent J. Carman
    ----------------------------------------
Its: Chief Financial Officer

MERCY AIR SERVICE, INC.

By: /s/ Trent J. Carman
    ----------------------------------------
Its: Chief Financial Officer

ROCKY MOUNTAIN HOLDINGS, L.L.C.

By: /s/ Trent J. Carman
    ----------------------------------------
Its: Chief Financial Officer

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