Document:

ex10-1.htm

    
      Exhibit
        10.1

 

     

    
 

    

     

    First
      Amended and Restated Loan Agreement

     

    Between

     

    Centerline
      Holding Company

     

    And

     

    American
      Mortgage Acceptance Company

     

    as
      of September 17, 2007

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    Page

     

    
      	
              SECTION
                1.    DEFINITIONS AND
                ACCOUNTING TERMS

               

            	
              1

               

            
	
              1.1

               

            	
                  DEFINITIONS

               

            	
              1

               

            
	
              1.2

               

            	
                  ACCOUNTING
                TERMS AND DETERMINATIONS

               

            	
              9

               

            
	
              SECTION
                2.    THE CREDIT
                ACCOMMODATIONS

               

            	
              9

               

            
	
              2.1

               

            	
                  THE
                CREDIT ACCOMMODATIONS

               

            	
              9

               

            
	
              2.2

               

            	
                  TERM
                OF
                AGREEMENT

               

            	
              10

               

            
	
              2.3

               

            	
                  PREPAYMENT
                OF
                THE OBLIGATIONS; BORROWER’S REDUCTION OF LOAN AMOUNT

               

            	
              10

               

            
	
              2.4

               

            	
                  EVIDENCE
                OF INDEBTEDNESS, MATURITY

               

            	
              10

               

            
	
              2.5

               

            	
                  INTEREST,
                LOAN
                FEES AND PAYMENT OF EXPENSES

               

            	
              10

               

            
	
              SECTION
                3.     CONDITIONS
                TO CREDIT

               

            	
              13

               

            
	
              3.1

               

            	
                  DOCUMENTS

               

            	
              13

               

            
	
              3.2

               

            	
                  REPRESENTATIONS
                AND WARRANTIES

               

            	
              13

               

            
	
              3.3

               

            	
                  EVENTS
                OF DEFAULT

               

            	
              13

               

            
	
              3.4

               

            	
                  APPROVAL
                OF
                LENDER’S COUNSEL

               

            	
              13

               

            
	
              3.5

               

            	
                  PAYMENT
                OF FEES

               

            	
              13

               

            
	
              SECTION
                4.    REPRESENTATIONS
                AND WARRANTIES

               

            	
              14

               

            
	
              4.1

               

            	
                  EXISTENCE;
                PLACE OF BUSINESS; IDENTIFICATION NUMBERS

               

            	
              14

               

            
	
              4.2

               

            	
                  AUTHORITY

               

            	
              14

               

            
	
              4.3

               

            	
                  FINANCIAL
                STATEMENTS

               

            	
              14

               

            
	
              4.4

               

            	
                  FINANCIAL
                CONDITION

               

            	
              14

               

            
	
              4.5

               

            	
                  ASSETS

               

            	
              15

               

            
	
              4.6

               

            	
                  LITIGATION

               

            	
              15

               

            
	
              4.7

               

            	
                  BURDENSOME
                PROVISIONS

               

            	
              15

               

            
	
              4.8

               

            	
                  OTHER
                AGREEMENTS

               

            	
              15

               

            
	
              4.9

               

            	
                  TAXES

               

            	
              15

               

            
	
              4.10

               

            	
                  THE
                LOAN

               

            	
              16

               

            
	
              4.11

               

            	
                  CAPITALIZATION

               

            	
              16

               

            
	
              4.12

               

            	
                  SOLVENCY

               

            	
              16

               

            
	
              4.13

               

            	
                  EVENTS
                OF DEFAULT

               

            	
              16

               

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    
      TABLE
        OF CONTENTS

      (continued)

      Page

       

    

    
      	
              4.14

               

            	
                  ERISA

               

            	
              16

               

            
	
              4.15

               

            	
                  ENVIRONMENTAL
                AND REGULATORY COMPLIANCE

               

            	
              17

               

            
	
              4.16

               

            	
                  CONTRACTS
                WITH
                AFFILIATES, ETC

               

            	
              17

               

            
	
              4.17

               

            	
                  FEDERAL
                REGULATIONS

               

            	
              18

               

            
	
              4.18

               

            	
                  QUALIFICATION
                AS A REIT

               

            	
              18

               

            
	
              4.19

               

            	
                  ADVISORY
                AGREEMENT; ADVISORY SUBCONTRACT

               

            	
              18

               

            
	
              4.20

               

            	
                  HOLDING
                COMPANY AND INVESTMENT COMPANY ACTS

               

            	
              18

               

            
	
              4.21

               

            	
                  INVESTMENT
                COMPANY ACT; OTHER REGULATIONS

               

            	
              18

               

            
	
              SECTION
                5.    AFFIRMATIVE
                COVENANTS

               

            	
              19

               

            
	
              5.1

               

            	
                  FINANCIAL
                STATEMENTS

               

            	
              19

               

            
	
              5.2

               

            	
                  MAINTENANCE
                OF
                EXISTENCE; CHARACTER OF EQUITY

               

            	
              20

               

            
	
              5.3

               

            	
                  MAINTENANCE
                OF
                PROPERTIES

               

            	
              20

               

            
	
              5.4

               

            	
                  COMPLIANCE
                WITH
                LAWS

               

            	
              20

               

            
	
              5.5

               

            	
                  TAXES
                AND CLAIMS

               

            	
              20

               

            
	
              5.6

               

            	
                  NOTICE
                OF DEFAULTS

               

            	
              21

               

            
	
              5.7

               

            	
                  CHANGES
                IN MANAGEMENT

               

            	
              21

               

            
	
              5.8

               

            	
                  NOTICE
                OF LITIGATION

               

            	
              21

               

            
	
              5.9

               

            	
                  RECORDS

               

            	
              21

               

            
	
              5.10

               

            	
                  EXECUTION
                OF
                OTHER INSTRUMENTS

               

            	
              21

               

            
	
              5.11

               

            	
                  MAINTENANCE
                OF
                REIT STATUS

               

            	
              21

               

            
	
              5.12

               

            	
                  CONTINUATION
                OF
                ADVISORY AGREEMENT AND ADVISORY SUBCONTRACT

               

            	
              21

               

            
	
              5.13

               

            	
                  INSPECTION
                OF
                PROPERTY; BOOKS AND RECORDS; DISCUSSIONS

               

            	
              22

               

            
	
              SECTION
                6.    NEGATIVE
                COVENANTS

               

            	
              22

               

            
	
              6.1

               

            	
                  ENCUMBRANCES
                AND LIENS

               

            	
              22

               

            
	
              6.2

               

            	
                  INDEBTEDNESS

               

            	
              23

               

            
	
              6.3

               

            	
                  CONSOLIDATION
                AND MERGER

               

            	
              24

               

            
	
              6.4

               

            	
                  LOANS,
                GUARANTEES, INVESTMENTS

               

            	
              24

               

            
	
              6.5

               

            	
                  ACQUISITIONS

               

            	
              24

               

            
	
              6.6

               

            	
                  DISPOSAL
                OF
                ASSETS

               

            	
              24

               

            

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    
      TABLE
        OF CONTENTS

      (continued)

      Page

    

    
      	
              6.7

               

            	
                  PAYMENT
                OF DISTRIBUTIONS

               

            	
              24

               

            
	
              6.8

               

            	
                  LIMITATIONS
                ON
                LEASING

               

            	
              24

               

            
	
              6.9

               

            	
                  DEFAULT
                UNDER OTHER AGREEMENTS OR INDENTURES

               

            	
              25

               

            
	
              6.10

               

            	
                  PURCHASE
                OF
                MARGIN STOCK

               

            	
              25

               

            
	
              6.11

               

            	
                  AMENDMENT
                TO
                CERTAIN DOCUMENTS

               

            	
              25

               

            
	
              6.12

               

            	
                  ERISA
                COMPLIANCE

               

            	
              25

               

            
	
              6.13

               

            	
                  REAL
                ESTATE ACTIVITIES

               

            	
              26

               

            
	
              6.14

               

            	
                  DEFAULT
                UNDER ADVISORY AGREEMENT OR ADVISORY SUBCONTRACT

               

            	
              26

               

            
	
              SECTION
                7.    FINANCIAL
                COVENANTS

               

            	
              26

               

            
	
              7.1

               

            	
                  MINIMUM
                ADJUSTED NET WORTH

               

            	
              26

               

            
	
              7.2

               

            	
                  LIQUIDITY

               

            	
              26

               

            
	
              7.3

               

            	
                  DEBT
                SERVICE COVERAGE

               

            	
              26

               

            
	
              7.4

               

            	
                  RECOURSE
                DEBT
                TO ADJUSTED NET WORTH

               

            	
              26

               

            
	
              7.5

               

            	
                  MINIMUM
                ADJUSTED AFFO

               

            	
              26

               

            
	
              SECTION
                8.    EVENTS OF
                DEFAULT

               

            	
              27

               

            
	
              8.1

               

            	
                  EVENTS
                OF DEFAULT

               

            	
              27

               

            
	
              SECTION
                9.    MISCELLANEOUS
                PROVISIONS

               

            	
              29

               

            
	
              9.1

               

            	
                  INCORPORATION
                OF PREAMBLE, RECITAL AND EXHIBITS

               

            	
              29

               

            
	
              9.2

               

            	
                  NOTICES

               

            	
              29

               

            
	
              9.3

               

            	
                  AMENDMENTS,
                WAIVERS, ETC

               

            	
              30

               

            
	
              9.4

               

            	
                  INDEMNIFICATION

               

            	
              30

               

            
	
              9.5

               

            	
                  INCONSISTENCIES
                WITH OTHER LOAN DOCUMENTS

               

            	
              30

               

            
	
              9.6

               

            	
                  EXPENSES

               

            	
              30

               

            
	
              9.7

               

            	
                  ASSIGNABILITY.

               

            	
              30

               

            
	
              9.8

               

            	
                  TIME
                OF
                ESSENCE

               

            	
              31

               

            
	
              9.9

               

            	
                  ENTIRE
                AGREEMENT

               

            	
              31

               

            
	
              9.10

               

            	
                  SEVERABILITY

               

            	
              31

               

            
	
              9.11

               

            	
                  GOVERNING
                LAW

               

            	
              31

               

            
	
              9.12

               

            	
                  NO
                PARTNERSHIP OR JOINT VENTURE

               

            	
              31

               

            

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

    
      TABLE
        OF CONTENTS

      (continued)

      Page

    

     

    
      	
              9.13

               

            	
                  REPLACEMENT
                DOCUMENTS

               

            	
              31

               

            
	
              9.14

               

            	
                  HEADINGS

               

            	
              31

               

            
	
              9.15

               

            	
                  USURY
                LIMITATION

               

            	
              31

               

            
	
              9.16

               

            	
                  WAIVER
                OF JURY TRIAL

               

            	 

    

    
      	
               

            	 

    

     

    

      
        
          
          

        

        
          -iv-

          
            

          

        

        
          
          

        

      

    EXHIBITS
      TO LOAN AGREEMENT

     

    
      	
              EXHIBIT
                A

            	
              Form
                of Note

            
	
              EXHIBIT
                2.1

            	
              Form
                of Borrowing Notice

            
	
              EXHIBIT
                3.1

            	
              Closing
                Checklist

            
	
              EXHIBIT
                4.6

              EXHIBIT
                4.11

            	
              Litigation

              Capitalization

            
	
              EXHIBIT
                4.16

            	
              Contracts
                with Affiliates

            
	
              EXHIBIT
                5.1

              EXHIBIT
                6.1

            	
              Form
                of Covenant Compliance Certificate

              Liens
                or encumbrances

            
	
              EXHIBIT
                6.2

            	
              Indebtedness

            
	 	 
	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Loan
      Agreement

     

    THIS
      FIRST AMENDED AND RESTATED LOAN AGREEMENT (this “Agreement”) is dated as of this
      17th day of September, 2007 and effective as of April 1, 2007 among American
      Mortgage Acceptance Company, a Massachusetts business trust (“Borrower”), and
      Centerline Holding Company, a Delaware statutory trust (“Lender”).

     

    RECITALS

     

    WHEREAS,
      the Borrower and the Lender are parties to a Loan Agreement dated as of June
      30,
      2004, as amended by the First Amendment to the Loan Agreement dated as of June
      30, 2005, as amended by the Second Amendment to the Loan Agreement dated as
      of
      April 20, 2006, as amended by the Third Amendment to the Loan Agreement dated
      as
      of June 29, 2007 (as amended, and modified, restated and/or supplemented from
      time to time, the “Initial Agreement”); and

    

    WHEREAS,
      on June 1, 2007, the
      Independent Trustees of the Borrower approved certain changes to the Initial
      Agreement which were preliminarily incorporated into the Third Amendment to
      the
      Loan Agreement; and

    

    WHEREAS,
      the Borrower and the Lender wish to fully amend and restate the Initial Loan
      Agreement to further clarify such changes.

     

    NOW
      THEREFORE, in consideration of the mutual covenants and conditions contained
      therein and set forth below, and for other valuable consideration, the receipt
      and sufficiency of which is hereby acknowledged by the parties, the parties
      agree as follows:

     

    Section
      1.

     

    DEFINITIONS
      AND ACCOUNTING TERMS

     

    1.1           DEFINITIONS.  The
      following terms, as used in this Agreement, shall have the following meanings,
      unless the context clearly indicates otherwise:

     

    “Accountants”
      means independent certified public accountants reasonably acceptable to the
      Lender.  The Lender hereby acknowledges that the Accountants for
      Borrower may include Deloitte & Touche LLP, which
      accountants are acceptable to the Lender.

     

    “Adjusted
      AFFO” for each quarterly period means the GAAP net income of Borrower for such
      period without giving effect to depreciation, amortization, gains or losses
      attributable to changes in the fair market value of derivative instruments,
      gains or losses on the sale of property or other assets, capital gains or losses
      with respect to the disposition of investments in marketable securities, and
      impairment losses on investments or recoveries on such impaired
      investments.

     

    “Adjusted
      Net Worth” means the GAAP net worth of Borrower for such period without giving
      effect to accumulated other comprehensive income or loss.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Advances”
      means any and all advances made or to be made by the Lender to Borrower pursuant
      to and as contemplated by the terms of this Agreement.

     

    “Advisor”
      means Centerline/AMAC Manager Inc., a Delaware corporation, or any Person
      directly or indirectly succeeding to Centerline/AMAC Manager Inc. (or Centerline
      Affordable Housing Advisors LLC, a Delaware limited liability company,
      hereinafter referred to as “Centerline Affordable” under the Advisory
      Subcontract) as the Advisor in accordance with the terms of Section 5.12
      hereof.

     

    “Advisory
      Agreement” means that certain Third Amended and Restated Advisory Services
      Agreement dated as of March 19, 2007 between Borrower and the Advisor, or any
      replacement thereof executed and delivered by Borrower in accordance with the
      terms of Section 5.12 hereof, pursuant to which the Advisor performs investment
      advisory services to Borrower, and manages Borrower’s assets and day-to-day
      affairs.

     

    “Advisory
      Subcontract” means that certain advisory subcontract, dated as of March 29,
      1993, between the Advisor and Centerline Affordable, pursuant to which all
      of
      the Advisor’s obligations and duties under the Advisory Agreement are assigned
      to and assumed by Centerline Affordable.  In the event that the
      Advisor or Centerline Affordable are replaced in accordance with the terms
      of
      Section 5.12 hereof, the term Advisory Subcontract shall mean the Advisory
      Agreement or such other document as Borrower and the Lender may
      agree.

     

    “Affiliates”
      means, with reference to any Person (including an individual, a corporation,
      a
      partnership, a limited liability company, a trust and a governmental agency
      or
      instrumentality) (i) any director, officer, general partner, manager, or
      employee of that Person, (ii) any other Person controlling, controlled by
      or under direct or indirect common control of that Person, (iii) any other
      Person directly or indirectly holding five percent (5%) or more of any class
      of
      the capital stock or other equity interests (including partnership interests,
      member interest, options, warrants, convertible securities and similar rights)
      of that Person and (iv) any other Person five percent (5%) or more of any class
      of whose capital stock or other equity interests (including partnership
      interests, member interest, options, warrants, convertible securities and
      similar rights) is held directly or indirectly by that Person.

     

    “Agreement”
      means this Loan Agreement.

     

    “AMAC
      Funds” means the funds advanced by Borrower to AMAC Credit Facility LLC under
      the AMAC Credit Facility Loan Agreement.

     

    “Borrower”
      means that term as defined in the first paragraph of this
      Agreement.

     

    “Borrowing
      Notice” means any borrowing request submitted by Borrower in the form of Exhibit
      2.1 attached hereto.

     

    “Business
      Day” means any day on which commercial banks in New York, New York settle
      payments.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Cash
      and
      Cash Equivalents” means the aggregate amount of cash and cash equivalents, as
      determined in accordance with GAAP.

     

    “Centerline
      Affordable” means Centerline Affordable Housing Advisors LLC, a Delaware limited
      liability company.

     

    “Closing
      Date” means the date on which the conditions set forth in Section 3.1 through
      Section 3.5 are first satisfied.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended.

     

    “Control”
      means either (i) having an economic interest in greater than 50% of the equity
      of an entity and the power and authority to elect or otherwise determine a
      majority of the board of directors or similar governing body of such entity,
      or
      (ii) having the power and authority to determine and control the policies and
      operations of such entity.

     

    “Covenant
      Compliance Certificate” means the Covenant Compliance Certificate substantially
      in the form of Exhibit 5.1 attached hereto, from the principal financial officer
      of Borrower, certifying that the information prepared thereon has been prepared
      in accordance with GAAP, and stating that such officer has no knowledge that
      a
      Default or Event of Default has occurred and is continuing or, if a Default
      or
      an Event of Default or such event has occurred and is continuing, the statement
      as to its nature and the action which such entity or any other entity proposes
      to take with respect to such Default or Event of Default.

     

    “Debt
      Service Coverage” for each quarterly period means the ratio of Adjusted AFFO
      plus Interest Expense on Recourse Debt for such period to Interest Expense
      on
      Recourse Debt.

     

    “Default”
      means an event or condition which, with the giving of notice or the passage
      of
      time, or both, would constitute an Event of Default.

     

    “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended, and
      the
      rules and regulations thereunder.

     

    “ERISA
      Affiliate” means each entity that may have been at any time during the sixty
      month period ending on the date of this Agreement or may be treated as a single
      employer with Borrower under the rules of Subsections (b), (c), (m) or (o)
      of
      Section 414 of the Code.

     

    “Event
      of
      Default” means any act or occurrence specified as an Event of Default in Section
      8.

     

    “Fair
      Market Value of Total Assets” means the aggregate fair market value of all of a
      Person’s assets, valuing those assets customarily bought and sold on a
      recognized market yielding widely distributed standard price quotations at
      their
      readily ascertainable market price, and all other assets valued using such
      methodology and data as shall be fully disclosed to, and approved by, the Lender
      in its reasonable discretion.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Fannie
      Mae” means the Federal National Mortgage Association.

     

    “FHA”
      means the Federal Housing Administration.

     

    “Financial
      Statements” means that term as defined in Section 4.3.

     

    “Freddie
      Mac” means the Federal Home Loan Mortgage Corporation.

     

    “GAAP”
      means generally accepted accounting principles and practices as applicable
      under
      Section 1.2 below and as set forth in the opinions and pronouncements of the
      Accounting Principles Board of the American Institute of Certified Public
      Accountants and statements and pronouncements of the Financial Accounting
      Standards Board or in such other statements by such other entity as may be
      approved by a significant segment of the accounting profession.  GAAP
      shall be consistently applied from one accounting period to
      another.

     

    “GNMA
      Certificates” means securities guaranteed by the Government National Mortgage
      Association including GNMA pass-through mortgage-backed securities.

     

    “Indebtedness”
      shall mean without duplication: (a) obligations created, issued or incurred
      by
      Borrower or its subsidiaries for borrowed money (whether by loan, the issuance
      and sale of debt securities or the sale of property to another Person subject
      to
      an understanding or agreement, contingent or otherwise, to repurchase such
      property from such Person), (b) obligations of Borrower or its subsidiaries
      to
      pay the deferred purchase or acquisition price of property or services, other
      than trade accounts payable (other than for borrowed money) arising, and accrued
      expenses incurred, in the ordinary course of business so long as such trade
      accounts payable are payable within ninety (90) days after the date the
      respective goods are delivered or the respective services are rendered, (c)
      debt
      of others secured by a lien on the property of Borrower or its subsidiaries,
      whether or not the respective debt so secured has been assumed by Borrower
      or
      its subsidiaries, (d) obligations (contingent or otherwise) of Borrower or
      its
      subsidiaries in respect of letters of credit or similar instruments issued
      or
      accepted by banks and other financial institutions for account of Borrower
      or
      its subsidiaries, (e) capital lease obligations of Borrower or its subsidiaries,
      (f) obligations of Borrower or its subsidiaries under repurchase agreements,
      sale/buy-back agreements or like arrangements, (g) debt of others guaranteed
      by
      Borrower or its subsidiaries, (h) all obligations of Borrower or its
      subsidiaries incurred in connection with the acquisition or carrying of fixed
      assets by Borrower or its subsidiaries, (i) debt of general partnerships of
      which Borrower or its subsidiaries is a general partner, and (j) all off-balance
      sheet obligations of Borrower or its subsidiaries.

     

    “Interest
      Expense” means for any period, total interest expense, both expensed and
      capitalized, of Borrower and its subsidiaries for such period with respect
      to
      all outstanding Recourse Debt of Borrower and its subsidiaries (including,
      without limitation, all commissions, discounts and other fees and charges owed
      with respect to letters of credit and bankers’ acceptance financing and net
      costs under interest rate protection agreements), determined on a consolidated
      basis in accordance with GAAP.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Interest
      Period” means, as to any LIBOR Rate Amount, the period the commencement and
      duration of which shall be determined in accordance with Section 2.5.1(A),
      provided that if any such Interest Period would otherwise end on a day which
      is
      not a Business Day, such Interest Period shall end on the Business Day next
      preceding or next succeeding such day as determined by the Lender in accordance
      with its usual practices, of which the Lender shall notify Borrower in writing
      at the beginning of such Interest Period.

     

    “IRS”
      means the United States Internal Revenue Service.

     

    “Lending
      Institution” means any reputable financial institution that has obtained a
      minimum debt rating of “A” from S&P and/or “A2” from Moody’s.

     

    “LIBOR
      Business Day” means any Business Day on which commercial banks are open for
      international business (including dealings in dollar deposits) in London or
      such
      other eurodollar interbank market as may be selected by the Lender in its sole
      discretion acting in good faith.

     

    “LIBOR
      Rate” means for any Interest Period with respect to a LIBOR Rate Amount, the
      rate of interest equal to the rate per annum (rounded upwards to the nearest
      100,000th of one percent) as determined on the basis of the offered rates for
      deposits in U.S. dollars, for a period of time comparable to the Interest Period
      selected by Borrower with respect to such LIBOR Rate Amount which appears on
      the
      Telerate page 3750 as of 11:00 a.m. London time on the day that is two LIBOR
      Business Days preceding the first day of the applicable Interest
      Period.  If the rate described above does not appear on the Telerate
      System on any applicable interest determination date, the LIBOR Rate shall
      be
      the rate (rounded upwards as described above, if necessary) determined on the
      basis of the offered rates for deposits in U.S. dollars for a period of time
      comparable to the applicable Interest Period and in an amount comparable to
      the
      principal amount of the requested LIBOR Rate Amount which are offered by four
      major banks in the London interbank market at approximately 11:00 a.m. London
      time on the day that is two (2) LIBOR Business Days preceding the first day
      of
      the applicable Interest Period.  The principal London office of each
      of the four major London banks will be requested to provide a quotation of
      its
      U.S. dollar deposit offered rate.  If at least two such quotations are
      provided, the rate for that date will be the arithmetic mean of the
      quotations.  If fewer than two quotations are provided as requested,
      the rate for that date will be determined on the basis of the rates quoted
      for
      loans in U.S. dollars to leading European banks for a period of time comparable
      to the applicable Interest Period for such LIBOR Rate Amount and in an amount
      comparable thereto offered by major banks in New York City at approximately
      11:00 a.m. New York City time, on the day that is two LIBOR Business Days
      preceding the first day of such Interest Period.  In the event that
      the Lender is unable to obtain any such quotation as provided above, it will
      be
      deemed that the LIBOR Rate cannot be determined and the interest rate applicable
      to such LIBOR Rate Amount shall be determined in accordance with Section
      2.5.1(D).  In the event that the Board of Governors of the Federal
      Reserve System shall impose a LIBOR Reserve Rate, then for any period during
      which such LIBOR Reserve Rate shall apply, the LIBOR Rate shall be

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    equal
      to
      the amount determined above divided by an amount equal to 1 minus the LIBOR
      Reserve Rate.

     

    “LIBOR
      Rate Amount” means, in relation to any Interest Period, any portions of the
      principal amount of the Loan on which Borrower elects pursuant to Section 2.5.1
      to pay interest at a rate determined by reference to the LIBOR
      Rate.

     

    “LIBOR
      Reserve Charge” means, for each day on which any LIBOR Rate Amount is
      outstanding, a reserve charge in an amount equal to the product of:

     

    (i)           the
      outstanding principal amount of the LIBOR Rate Amount,

     

    multiplied
      by

     

    (ii)           (a)
      the LIBOR Rate (expressed as a decimal) divided by one minus the LIBOR Reserve
      Rate, minus (b) the LIBOR Rate (expressed as a decimal),

     

    multiplied
      by

     

    (iii)           1/360.

     

    “LIBOR
      Reserve Rate” means, for any day with respect to a LIBOR Rate Amount, the
      maximum rate (expressed as a decimal) at which any lender subject thereto would
      be required to maintain reserves (including all basic, supplemental, marginal
      and other reserves) under Regulation D of the Board of Governors of the Federal
      Reserve System (or any successor or similar regulations relating to such reserve
      requirements) against “Eurocurrency Liabilities” (as that term is used in
      Regulation D), if such liabilities were outstanding.  The LIBOR
      Reserve Rate shall be adjusted automatically on and as of the effective date
      of
      any change in the LIBOR Reserve Rate.

     

    “Line
      of
      Credit” means that term as defined in the recital set forth above.

     

      “Liquidity”
      means Cash and Cash Equivalents plus availability to Borrower under the Line
      of
      Credit or a committed line of credit from a Lending Institution.

     

    “Loan”
      means all Advances made or other credit accommodations provided by the Lender
      to
      Borrower in accordance with the terms and conditions of this
      Agreement.

     

    “Loan
      Amount” means the principal amount of EIGHTY MILLION AND NO/100 DOLLARS
      ($80,000,000.00), or such lesser amount as may from time to time be in effect
      following exercise of the reduction procedure set forth in Section
      2.3.

     

    “Loan
      Documents” means this Agreement, the Note and the documents specified in Section
      3.1 and any other documents, instruments or agreements relating to the Line
      of
      Credit required or contemplated hereby and thereby.

     

    “Loan
      Fees” means the Upfront Fee.  The Loan Fees shall be in addition to
      all out-of-pocket expenses, including, without limitation, reasonable attorneys’
fees and costs for

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    the
      Lender and customary recording, filing or other similar document fees and
      charges, each of which shall be paid by Borrower.

     

    “Maturity
      Date” means such date as determined in accordance with the terms of Section 2.4,
      upon which date all Obligations, including, without limitation, any remaining
      unpaid principal, interest, Loan Fees, out-of-pocket expenses including
      attorneys’ fees and costs, and documentation charges and other charges relating
      to the Loan shall be due and payable in full.

     

    “Net
      Equity” means equity raised by Borrower or its subsidiaries, net of costs
      incurred in raising such equity, including, without limitation, brokerage costs
      and reasonable fees for professional services.

     

    “Non-Recourse
      Debt” shall mean Indebtedness for borrowed money in respect of which recourse
      for payment (except for customary exceptions for fraud, misapplication of funds,
      environmental indemnities, and other customary exceptions to non-recourse
      provisions) is contractually limited to specific assets of Borrower or its
      subsidiaries encumbered by a lien securing such Indebtedness.

     

    “Note”
      means the credit note in the aggregate principal amount of the Loan Amount
      executed substantially in the form of Exhibit A attached hereto by Borrower,
      payable to the order of the Lender.

     

    “Obligations”
      means any and all obligations of Borrower to the Lender of every kind and
      description, direct or indirect, absolute or contingent, primary or secondary,
      due or to become due, now existing in connection with or hereafter arising
      out
      of this Agreement and the other Loan Documents.

     

    “Organizational
      Documents” means, with regard to (i) a corporation, its charter and bylaws, (ii)
      a limited partnership, its certificate of limited partnership and agreement
      of
      limited partnership, (iii) a limited liability company, its certificate of
      organization and operating agreement or such similar certificate or agreement
      as
      is customary in the jurisdiction of formation for such limited liability
      company, (iv) a Massachusetts business trust, its charter and declaration of
      trust, and (v) any other type of entity, documents, agreements and certificates
      serving substantially the same purposes as the foregoing.

     

    “Person”
      means and includes any natural person, partnership, limited liability company,
      trust, estate, association, corporation or other entity.

     

    “Plans”
      means that term as defined in Section 4.14.

     

    “Preferred
      Securities” means financial instruments with characteristics of both liabilities
      and equity which per FASB Statement of Financial Accounting Standards No. 150,
      Accounting for Certain Financial Instruments with Characteristics of both
      Liabilities and Equity (May 2003), are recognized as liability on Borrower’s
      consolidated balance sheet.

     

    “Recourse
      Debt” shall mean, for any period, the aggregate Indebtedness (excepting any
      Non-Recourse Debt, commitments to provide future debt funding, and an
      existing

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    $3,150,000
      guaranty to Fannie Mae relating to a discontinued program) of Borrower or its
      subsidiaries outstanding during such period.

     

    “Registration
      Statement” means that certain Form S-2 Registration Statement under the
      Securities Act of 1933, for Borrower, as amended by Amendment No. 1, filed
      with
      the Securities and Exchange Commission on January 11, 2002.  The
      Registration Statement shall be defined, for purposes of this Agreement, as
      the
      Registration Statement as filed with the Securities and Exchange Commission
      prior to the date hereof, without amendment, modification or
      restatement.

     

    “REIT”
      means a “real estate investment trust” as such term is defined in Section 856 of
      the Code.

     

    “Revolving
      Commitment Period” means that term as defined in Section 2.1.

     

    “Subsidiaries”
      means, with reference to any Person (including an individual, a corporation,
      a
      partnership, a limited liability company, a trust or a governmental agency
      or
      instrumentality), any corporation, partnership, association, joint stock
      company, business trust or other similar organization of whose total capital
      stock, voting stock or other equity such Person directly or indirectly owns
      or
      controls more than 50% thereof or any partnership, limited liability company
      or
      other entity in which such Person directly or indirectly has more than a 50%
      interest or which is controlled directly or indirectly by such
      Person.

     

    “Ten
      Year
      U.S. Treasury Rate” means the arithmetic average of the weekly average yield to
      maturity for actively traded current coupon U.S. Treasury fixed interest rate
      securities (adjusted to constant maturities of ten years) published by the
      Federal Reserve Board during a fiscal year, or, if such rate is not published
      by
      the Federal Reserve Board, any Federal Reserve Bank or agency or department
      of
      the federal government selected by the Lender.  If the Lender
      determines in good faith that the Ten Year U.S. Treasury Rate cannot be
      calculated as provided above, then the rate will be the arithmetic average
      of
      the per annum average yields to maturities, based upon closing ask prices on
      each business day during a quarter, for each actively traded marketable U.S.
      Treasury fixed interest rate security with a final maturity date not less than
      8
      nor more than 12 years from the date of closing ask prices as chosen and quoted
      for each business day in each such quarter in New York City by at least three
      recognized dealers in U.S. Government Securities selected by the
      Lender.

     

    “Upfront
      Fee” means that term as defined in Section 2.5.2.

     

    For
      purposes of this Agreement, except as otherwise expressly provided herein or
      unless the context otherwise requires:

     

    (1)           references
      to any Person defined in this Section 1.1 refer to such Person and its successor
      in title and assigns or (as the case may be) his successors, assigns, heirs,
      executors, administrators and other legal representatives;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (2)           references
      to this Agreement refer to such document as originally executed, or if
      subsequently varied, supplemented or restated from time to time, as so varied,
      supplemented or restated and in effect at that relevant time of reference
      thereto;

     

    (3)           words
      importing the singular only shall include the plural and vice versa, and words
      importing the masculine gender shall include the feminine gender and vice versa,
      and all references to dollars shall be to United States Dollars;
      and

     

    (4)           grammatical
      variations of terms defined in this Agreement shall be defined with reference
      to
      and in the context of such defined terms (e.g. “Controlling,” “Controlled,” etc.
      shall be defined in the context of the definition of the word “Control” to refer
      to situations in which a Person holds greater than fifty percent (50%) of the
      equity of an entity and the power and authority to elect or otherwise determine
      a majority of the Board of Directors or similar governing body of such
      entity).

     

    1.2           ACCOUNTING
      TERMS AND DETERMINATIONS.  All accounting terms 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 as in effect from time to time.

     

    Section
      2.

    THE
      CREDIT ACCOMMODATIONS

     

    2.1           THE
      CREDIT ACCOMMODATIONS.

     

    2.1.1        Advances.  Subject
      to the terms and conditions hereof, from and including the Closing Date and
      prior to the Maturity Date (the “Revolving Commitment Period”), the Lender
      agrees to make revolving loans (“Advances”) to Borrower from time to time in an
      aggregate principal amount at any one time outstanding which does not exceed
      the
      Loan Amount.  During the Revolving Commitment Period, Borrower may use
      the Loan Amount by borrowing, prepaying the Advances in whole or in part, and
      reborrowing, all in accordance with the terms and conditions
      hereof.  Borrower shall give the Lender written notice of each
      requested Advance in the form of a Borrowing Notice, signed by
      Borrower.  On the Maturity Date, Borrower shall repay in full the
      outstanding principal balance of all Advances.

     

    2.1.2        Making
      of Revolving Loans.  Promptly after receipt of the Borrowing Notice,
      the Lender shall make the funds available to Borrower on the applicable
      Borrowing Date, utilizing reasonable efforts to initiate the transfer of such
      funds so received by not later than 2:00 p.m. (New York time) and shall disburse
      such proceeds in accordance with Borrower’s instructions set forth in such
      Borrowing Notice.

     

    2.1.3        Termination
      of Revolving Commitment Period.  Without limiting any other rights or
      remedies available to the Lender hereunder or under any applicable law, and
      notwithstanding any other provision of this Agreement, the Revolving Commitment
      Period shall end immediately in the event that Borrower fails to perform or
      observe any covenant, term, provision, condition, agreement or obligation under
      any of the Loan Documents or any other note, agreement or instrument in favor
      of
      the Lender, or in the event that any of Borrower’s Subsidiaries fails
      to

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    perform
      or observe any covenant, term, provision, condition, agreement or obligation
      under any of the Loan Documents.

     

    2.1.4        Application
      of Payments.  All Obligations incurred with respect to any Loan made
      to Borrower shall be paid within the applicable repayment periods set forth
      in
      this Section 2.1.  All payments shall be applied first to the payment
      of all Loan Fees, expenses and other amounts due to the Lender (excluding
      principal and interest), then to accrued interest, and the balance on account
      of
      outstanding principal of the Loan; provided, however, that after a Default
      or an
      Event of Default has occurred and is continuing, payments will be applied to
      the
      Obligations as the Lender determines in its unrestricted
      discretion.  If the entire amount of any required principal and/or
      interest payment is not paid in full within fifteen (15) days after the same
      is
      due, Borrower shall pay to the Lender a late fee equal to five percent (5%)
      of
      the required payment.

     

    2.2           TERM
      OF AGREEMENT.  This Agreement shall continue in full force and effect
      so long as any Obligation remains outstanding and the Lender continues to have
      any commitment to make any Advance or other credit accommodation
      hereunder.

     

    2.3           PREPAYMENT
      OF THE OBLIGATIONS; BORROWER’S REDUCTION OF LOAN AMOUNT.  Borrower may
      prepay any Obligation in whole or part at any time or from time to time, with
      accrued interest to the date of such prepayment on the amount prepaid, but
      without premium or penalty.  Any such partial prepayment shall be
      applied against the Advances under the Line of Credit as Borrower shall direct
      so long as there is not then outstanding any Default or Event of Default and,
      after the occurrence of such Default or Event of Default, as the Lender shall
      determine in its unrestricted discretion (provided that the Lender agrees not
      to
      prepay a LIBOR Rate Amount prior to the end of an Interest Period if there
      are
      any outstanding Advances accruing interest with reference to the LIBOR Rate
      at
      such time).  Any prepayment of a LIBOR Rate Amount shall be
      accompanied by payment of any additional amounts required pursuant to Section
      2.5.1 (F).  Borrower may from time to time by written notice delivered
      to the Lender at least three (3) Business Days prior to the date of the
      requested reduction, reduce the Loan Amount by integral multiples of $1,000,000
      as to any unborrowed portion of the Loan Amount.  No reduction of the
      Loan Amount shall be subject to reinstatement.

     

    2.4           EVIDENCE
      OF INDEBTEDNESS, MATURITY.  The Loan shall be evidenced by the Note in
      the aggregate principal amount of the Loan Amount.  The outstanding
      principal balance of the Loan, together with accrued interest thereon, and
      all
      other amounts payable by Borrower under the terms of the Loan Documents, shall
      be due and payable on June 30, 2008 (the “Maturity Date”).

     

    2.5           INTEREST,
      LOAN FEES AND PAYMENT OF EXPENSES.

     

    2.5.1        LIBOR
      Interest Rate.

     

    
      	
               

            	
              (A)

            	
              At
                the option of Borrower, so long as no Default or Event of Default
                has
                occurred and is then continuing, Borrower may elect from time to
                time
                prior to the Maturity Date to have all or a portion of the unpaid
                principal amount of the Loans bear interest at a per annum rate during
                any
                particular Interest Period with

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              reference
                to the LIBOR Rate plus three percent (3%); provided, however, that
                any
                such portion of any Loan shall be in an amount not less than $100,000
                or
                some greater integral multiple of $100,000 with respect to any single
                Interest Period.  During the continuation of any Event of
                Default, interest on the Loans will be calculated based on the one
                month
                LIBOR Rate plus any default interest and other penalties provided
                for in
                this Agreement.  Each Interest Period selected hereunder shall
                commence on the first day of a calendar month.  Any election by
                Borrower to have interest calculated at the LIBOR Rate shall be made
                by
                notice (which shall be irrevocable) to the Lender at least three
                (3)
                Business Days prior to the first day of the proposed Interest Period,
                specifying the LIBOR Rate Amount and the duration of the proposed
                Interest
                Period (which must be for one, two, three or six months).  Any
                such election of a LIBOR Rate shall lapse at the end of the expiring
                Interest Period unless extended by a further election notice provided
                in
                accordance with this paragraph.  Interest shall be payable in
                the last day of each such Interest Period and if such Interest Period
                has
                a duration of more than three months, on each date during such Interest
                Period occurring every three months from the first day of such Interest
                Period. All computations of interest accruing on the unpaid balance
                of
                Loans from time to time shall be calculated on the basis of a 360-day
                year
                for the actual number of days elapsed.  From and after the
                occurrence of an Event of Default and, when applicable, the expiration
                of
                the 15-day cure period for such Event of Default as provided in Section
                8.1, and during the continuation of such Event of Default, the unpaid
                balance of the Loan shall bear interest, to the extent permitted
                by law,
                at the annual rate of interest equal to four percent (4%) above the
                interest rate applicable to such Loan pursuant to Section 2.5.1 in
                effect
                on the first Business Day prior to the occurrence of such Event of
                Default, which interest shall be compounded monthly and payable on
                demand.  Notwithstanding the foregoing, Borrower may not select
                an Interest Period which extends beyond the Maturity
                Date.

            

    

     

    
      	
               

            	
              (B)

            	
              Borrower
                shall pay to the Lender, the LIBOR Reserve Charge, if any, with respect
                to
                LIBOR Rate Amounts of the Loans outstanding from time to time on
                the dates
                interest is payable on such LIBOR Rate
                Amounts.

            

    

     

    
      	
               

            	
              (C)

            	
              The
                Lender shall forthwith upon determining any LIBOR Rate provide notice
                thereof to Borrower.  Each such notice shall be conclusive and
                binding upon Borrower.

            

    

     

    
      	
               

            	
              (D)

            	
              If,
                with respect to any Interest Period, the Lender is unable to determine
                the
                LIBOR Rate relating thereto, or adverse or unusual conditions in
                or
                changes in applicable law relating to the applicable Eurodollar interbank
                market make it illegal or, in the reasonable judgment of the Lender,
                impracticable, to fund therein the LIBOR Rate Amount or make the
                projected
                LIBOR Rate unreflective of the actual costs of funds therefor to
                the
                Lender, or if it shall become unlawful for the Lender to charge interest
                on the Loans on a LIBOR Rate basis, then in any of the foregoing
                events
                the Lender shall so notify Borrower and interest will be calculated
                and
                payable in respect of such projected Interest Period (and
                thereafter

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              for
                so long as the conditions referred to in this sentence shall continue)
                by
                reference to the “prime rate” published by Citibank, N.A. plus 1% per
                annum.

            

    

     

    
      	
               

            	
              (E)

            	
              If
                any Interest Period would otherwise end on a day which is not a Business
                Day for LIBOR Rate purposes, that Interest Period shall end on the
                Business Day next preceding or next succeeding such day as determined
                by
                the Lender in accordance with its usual practice, of which the Lender
                shall notify Borrower at the beginning of such Interest
                Period.

            

    

     

    
      	
               

            	
              (F)

            	
              Borrower
                may prepay a LIBOR Rate Amount only upon at least three (3) Business
                Days
                prior written notice to the Lender (which notice shall be
                irrevocable).  Borrower shall pay to the Lender, upon request of
                the Lender, such amount or amounts as shall be sufficient (in the
                reasonable opinion of the Lender) to compensate the Lender for any
                loss,
                cost, or expense incurred as a result of:  (i) any payment of a
                LIBOR Rate Amount on a date other than the last day of the Interest
                Period
                for such Loan; (ii) any failure by Borrower to borrow a LIBOR Rate
                Amount
                on the date specified by Borrower’s written notice; or (iii) any failure
                by Borrower to pay a LIBOR Rate Amount on the date for payment specified
                in Borrower’s written notice. 

            

    

     

    2.5.2        Upfront
      Fee.  On the Closing Date, the Borrower agrees to pay the Lender a fee
      of $30,000 (the “Upfront Fee”).  The parties to this Agreement
      acknowledge that Borrower paid the full amount of the Upfront Fee in connection
      with the closing of the Initial Loan Agreement.

     

    2.5.3        
      Payment of Fees.  Borrower hereby authorizes the Lender to disburse
      proceeds of the Loan to pay the Loan Fees and the reasonable fees and expenses
      of the Lender’s legal counsel notwithstanding that Borrower may not have
      requested a disbursement of such amount.  Such disbursements shall
      constitute a portion of the outstanding principal balance of the Loan and the
      Note and shall be deemed to be the first principal amounts repaid by Borrower
      in
      making principal payments, whether or not designated as such by
      Borrower.  Invoices for all expenses charged to Borrower pursuant
      hereto will be provided to Borrower by the Lender prior to any such
      disbursement, and Borrower shall pay to the Lender all amounts due pursuant
      to
      any such invoices as repayment of such portion of the outstanding principal
      balance of the Loan and the Note represented by such invoices, with all interest
      accrued thereon, within twenty (20) Business Days following Borrower’s receipt
      thereof.

     

    2.5.4          Change
      in Laws.  Anything herein to the contrary notwithstanding, if any
      future applicable law (which expression, as used in this Agreement, includes
      statutes and rules and regulations thereunder and interpretations thereof by
      any
      competent court or by any governmental or other regulatory body or official
      charged with the administration or the interpretation thereof) shall (1) subject
      the Lender to any tax, levy, impost, duty, charge, fee, deduction or withholding
      of any nature with respect to this Agreement, the Loans or the payment to the
      Lender of any amounts due to it hereunder, or (2) materially change the basis
      of
      taxation of payments to the Lender of the principal or the interest on or any
      other amounts payable to the Lender hereunder, or (3) impose on the Lender
      any
      other conditions or requirements with respect to this Agreement, the Loan Amount
      or any Loan, and the result of any of the foregoing is (a) to increase the
      cost
      to making, funding or maintaining all or any part of the Loans, or (b) to
      reduce

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    the
      amount of principal, interest or other amount payable to the Lender hereunder,
      or (c) to require the Lender to make any payment or to forego any interest
      or
      other sum payable hereunder, the amount of which payment or foregoing interest
      or other sum is calculated by reference to the gross amount of any sum
      receivable or deemed received by the Lender from Borrower hereunder, then,
      and
      in each such case not otherwise provided for hereunder, Borrower will, upon
      demand made by the Lender accompanied by calculations thereof in reasonable
      detail, pay to the Lender such additional amounts as will be sufficient to
      compensate the Lender for such additional cost, reduction, payment or foregoing
      interest or other sum, provided that the foregoing provisions of this sentence
      shall not apply in the case of any additional cost, reduction, payment or
      foregoing interest or other sum resulting from any taxes charged upon or by
      reference to the overall net income, profits or gains of the
      Lender.

     

    Section
      3.

    CONDITIONS
      TO CREDIT

     

    The
      Lender’s obligations to make any Advances hereunder are subject to the
      fulfillment of each of the following conditions to the Lender’s satisfaction
      immediately prior to or contemporaneously with the making of any such
      Advances:

     

    3.1           DOCUMENTS.  Prior
      to or concurrently with the execution and delivery of this Agreement, the Lender
      shall receive each of the following documents in form and substance satisfactory
      to the Lender:

     

    3.1.1        All
      of the documents listed on the Closing Checklist attached hereto as Exhibit
      3.1;
      and

     

    3.1.2        Such
      other instruments or documents as the Lender’s counsel may reasonably
      request.

     

    3.2           REPRESENTATIONS
      AND WARRANTIES.  Upon execution and delivery of this Agreement and
      upon each request by Borrower for an Advance, the representations and warranties
      contained in Section 4 of this Agreement shall be accurate and complete (except
      to the extent such representations and warranties relate solely to an earlier
      specific date, in which case such representations and warranties shall have
      been
      accurate and complete as of such date).

     

    3.3           EVENTS
      OF DEFAULT.  Upon execution and delivery of this Agreement and upon
      each request by Borrower for an Advance, no Default or Event of Default
      hereunder shall have occurred and be continuing.

     

    3.4           APPROVAL
      OF LENDER’S COUNSEL.  Upon execution and delivery of this Agreement
      and upon each request by Borrower for an Advance, all legal matters incident
      to
      or in connection with the transactions hereby contemplated shall be reasonably
      satisfactory to counsel for the Lender.

     

    3.5           PAYMENT
      OF FEES.  At the Closing Date and prior to making any Advance
      hereunder, the Lender shall have received from Borrower an unconditional payment
      of the Loan Fees then due and payable, together with payment of all costs and
      expenses, including without limitation reasonable attorneys’ fees and costs
      incurred by the Lender in connection with the

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    preparation
      and execution of this Agreement and the Loan
      Documents.  Notwithstanding the foregoing, and without in any way
      reducing Borrower’s obligation to pay such fees, the Lender agrees not to refuse
      to make an Advance solely because attorneys fees incurred by the Lender, for
      which Borrower has been invoiced within 30 days of such Advance, remain
      outstanding.

     

    Section
      4.

    REPRESENTATIONS
      AND WARRANTIES

     

    Borrower
      represents and warrants that, as of the date hereof and as of any date any
      Advances under the Line of Credit are to be made:

     

    4.1           EXISTENCE;
      PLACE OF BUSINESS; IDENTIFICATION NUMBERS.  Borrower and its
      Subsidiaries are duly organized, validly existing and in good standing under
      the
      laws of the state of its formation.  Borrower and its Subsidiaries are
      duly licensed or qualified in all jurisdictions wherein the character of the
      property owned or the nature of the business transacted by it makes licensing
      or
      qualification necessary or advisable, except to the extent that the failure
      to
      do so could not reasonably be expected to have a material adverse effect on
      the
      business, results of operations or condition (financial or otherwise) of
      Borrower and its Subsidiaries, taken as a whole.  Borrower and its
      Subsidiaries are also duly authorized, qualified and licensed under all
      applicable laws, regulations, ordinances or orders of public authorities to
      carry on its business in the places and in the manner presently conducted,
      except to the extent that the failure to do so could not reasonably be expected
      to have a material adverse effect on the business, results of operations or
      condition (financial or otherwise) of Borrower and its Subsidiaries, taken
      as a
      whole.  Borrower has the organizational power to enter into any
      transaction and to make and perform any agreement or instrument which this
      Agreement or the Loan Documents require or contemplate. 

     

    4.2           AUTHORITY.  The
      execution, delivery and performance by Borrower of the Loan Documents and the
      transactions contemplated by this Agreement:  (a) have been duly
      authorized and do not require any other filing with, consent from, or approval
      by any Person or governmental authority, (b) do not violate Borrower’s
      Organizational Documents or any law, rule, regulation, order, writ, judgment
      or
      decree, and will not result in or constitute a default under any indenture,
      credit agreement, or any other agreement or instrument, to which it is a party
      or to which any of its property is subject.

     

    4.3           FINANCIAL
      STATEMENTS.  The balance sheet and statements of income of Borrower,
      on a consolidated basis, as of December 31, 2006, audited by the Accountants,
      and the interim management prepared financial statements of Borrower, on a
      consolidated basis, as of June 30, 2007, each duly certified by the principal
      financial officer of Borrower, as furnished to the Lender (collectively, the
      “Financial Statements”), are complete and correct and fairly present the
      financial position of Borrower and the results of operations for the period
      indicated.  Each of the Financial Statements was prepared in
      accordance with GAAP.

     

    4.4           FINANCIAL
      CONDITION.  Since the date of the latest Financial Statement
      (a) there has been no materially adverse change in the condition financial
      or otherwise of Borrower, and its Subsidiaries, taken as a whole, and (b)
      Borrower and its Subsidiaries have not entered into, incurred or assumed any
      material long-term debts, mortgages, leases or oral 

     

    
      
        
        

      

      
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    or
      written commitments, nor commenced any significant project, nor made any
      significant purchase or acquisition of any property except with the prior
      written consent of the Lender in accordance with the terms
      hereof.  Notwithstanding the foregoing sentence, Borrower and its
      Subsidiaries may enter into, incur or assume debt, mortgages, leases or oral
      or
      written commitments, commence significant projects and purchase or acquire
      property so long as such action is done in the ordinary course of business
      and
      is consistent with the description of Borrower’s Business.  Borrower
      and its Subsidiaries do not have any contingent liabilities of any substantial
      amount which are not reflected in the Financial Statements described above,
      except for liabilities incurred by Borrower and its Subsidiaries since the
      date
      of the Financial Statements in the ordinary course of its business consistent
      with past practices.

     

    4.5           ASSETS.  Borrower
      and its Subsidiaries have good and marketable title to all of its properties
      and
      assets, including without limitation as reflected in the balance sheet included
      in the Financial Statements, except property and assets sold or otherwise
      disposed of at market rates in the ordinary course of business and consistent
      with the description of Borrower’s Business subsequent to the date of such
      balance sheet.  Borrower and its Subsidiaries do not have any
      outstanding liens or encumbrances on any of its properties or assets, other
      than
      as fully described in the Financial Statements.  Borrower and its
      Subsidiaries are not a party to any security agreements or title retention
      agreements, whether in the form of leases or otherwise, of any personal property
      except as reflected in the financial statements.

     

    4.6           LITIGATION.  There
      are no actions, suits, proceedings or investigations pending or, to the
      knowledge of Borrower upon reasonable inquiry, threatened against or affecting
      Borrower, at law, in equity, or before or by any governmental department,
      commission, board, bureau, agency, or instrumentality, domestic or foreign,
      which if adversely determined would have a materially adverse effect on the
      business or condition of Borrower and its Subsidiaries, taken as a whole, other
      than those actions, suits, proceedings or investigations set forth on Exhibit
      4.6.  Borrower and its Subsidiaries are not in default or violation,
      in either case, beyond expiration of applicable grace, cure or notice periods
      of
      any order, writ, injunction or decree.

     

    4.7           BURDENSOME
      PROVISIONS.  Other than as reflected in the Financial Statements,
      Borrower and its Subsidiaries are not a party to any indenture, agreement,
      instrument or lease, or subject to any charter, bylaw, operating agreement
      or
      other restriction, or any law, rule, regulation, order, writ, judgment or
      injunction, which will, under current or reasonably anticipated conditions,
      materially and adversely affect its ability to fully perform all of the
      Obligations.

     

    4.8           OTHER
      AGREEMENTS.  Borrower and its Subsidiaries are not in default beyond
      applicable grace, cure or notice periods to any material extent in the
      performance, observance or fulfillment of any of the obligations, covenants
      or
      conditions contained in any debenture, note or other evidence of indebtedness
      of
      such entity or any indenture or agreement to which it is a party or is bound,
      which would have a material adverse effect on the financial condition of
      Borrower and its Subsidiaries, taken as a whole.

     

    4.9           TAXES.  Borrower
      and its Subsidiaries have filed all United States federal and state tax returns
      which are required to be filed by it (taking into account extensions permitted
      by applicable law) and have paid or made adequate provision for the payment
      of
      all taxes which 

     

    
      
        
        

      

      
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    have
      or
      may become due pursuant to those returns, to any matters raised by audits,
      assessments received by it, and for any other causes known to it, including
      foreign taxes.

     

    4.10           THE
      LOAN.  This Agreement, any Note and any other of the Loan Documents,
      or any other documents delivered by Borrower to or for the benefit of the Lender
      at any time in connection with the execution and delivery of any of the Loan
      Documents, will, when executed and delivered, constitute valid and binding
      obligations of such entity, enforceable against such entity in accordance with
      their respective terms, except as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws, or general principles of
      equity, affecting the rights of creditors generally.  Borrower will
      duly and punctually pay any principal and interest when due on any Obligation
      requiring the payment of money.

     

    4.11           CAPITALIZATION.  The
      outstanding equity of Borrower is comprised exclusively of trust interests
      or
      member interests, all of which have been duly issued and are outstanding and
      fully paid and nonassessable.  There are (i) no outstanding securities
      or agreements exchangeable for or convertible into or carrying any rights to
      acquire any equity interests in Borrower, and (ii) no outstanding commitments,
      options, warrants, calls or other agreements (whether written or oral) binding
      on Borrower which require or could require such entity to sell, grant, transfer,
      assign, mortgage, pledge or otherwise dispose of any equity interests of
      Borrower, except as set forth on Exhibit 4.11.  Except as set forth in
      any Organizational Document provided to the Lender for Borrower, no equity
      interests of Borrower are subject to any restrictions on transfer or any member
      agreements, voting agreements, trust agreements, trust deeds, irrevocable
      proxies, or any other similar agreements or interests (whether written or
      oral).

     

    4.12           SOLVENCY.  Borrower
      has and, after giving effect to each Advance under the Line of Credit will
      have,
      tangible assets having a fair salable value in excess of the amount required
      to
      pay the probable liability on its then existing debts (whether matured or
      unmatured, liquidated or unliquidated, fixed or contingent); Borrower has and
      will have access to adequate capital for the conduct of its business and the
      discharge of its debts incurred in connection therewith as such debts
      mature.

     

    4.13           EVENTS
      OF DEFAULT.  No Event of Default or, to the best knowledge of
      Borrower, Default exists.

     

    4.14           ERISA.  Borrower
      and the ERISA Affiliates, and each “Employee Pension Benefit Plan” and each
“Employee Welfare Benefit Plan” (as defined in ERISA) established, maintained or
      contributed to (including any such plan to which an obligation to contribute
      exists) by Borrower or any ERISA Affiliate (collectively, the “Plans”) is in
      compliance in all material respects with ERISA and the provisions of the Code
      applicable to such entity or Plan; neither Borrower nor any ERISA Affiliate
      or
      any Plan has engaged in a “prohibited transaction” (as defined in ERISA and the
      Code) which would subject such entity or such Plan to a material tax or penalty
      imposed on a “prohibited transaction”; neither Borrower nor any ERISA Affiliate
      or any Plan has incurred any material “accumulated funding deficiency” (as
      defined in ERISA); the aggregate current value of all assets of the funded
      Plans
      of each of Borrower and any ERISA Affiliate is at least equal to the aggregate
      current value of all accrued benefits under such Plans calculated in accordance
      with actuarial assumptions current as of the date of this representation

     

    
      
        
        

      

      
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    and
      warranty on a Plan termination basis; neither Borrower nor any ERISA Affiliate
      has incurred any material liability to the Pension Benefit Guaranty Corporation
      over and above premiums required by law and which have been paid or are not
      yet
      due; neither Borrower nor any ERISA Affiliate has terminated any Plan in a
      manner which could result in the imposition of a lien on the property of such
      entity; none of the Plans are multi-employer plans (as defined in
      ERISA).  All contributions to all Plans which were required to be made
      or provided for as of the date of this representation and warranty have been
      made or provided for in accordance with GAAP and, in the case of Plans, funded
      by means other than direct employer contributions, all such funding required
      through the date of this representation and warranty has been made or provided
      for in accordance with GAAP; each of Borrower and the ERISA Affiliates have
      performed in all material respects all of their respective obligations under
      each Plan and each Plan has been administered in accordance with its terms;
      there are no claims, complaints or causes of action pending or, to Borrower’s
      knowledge, threatened against any Plan (other than claims filed in the ordinary
      course for benefits under such Plans); and Borrower does not have any liability,
      contingent or otherwise, under any Plan that is not disclosed on its Financial
      Statements.

     

    4.15           ENVIRONMENTAL
      AND REGULATORY COMPLIANCE.

     

    4.15.1        As
      to each of the real properties either owned or leased by Borrower or any of
      its
      Subsidiaries, each such property is presently in compliance in all material
      respects with, and has in full force and effect, all material permits or
      approvals required by, all applicable anti-pollution, hazardous substance,
      hazardous material, oil, environmental, health, safety or other laws, ordinances
      or regulations, and Borrower and its Subsidiaries have not received notification
      that any of the foregoing properties is in violation of any of the foregoing
      provisions, except for any non-compliance with respect to, or lack of possession
      of the foregoing, which does not have or will not have a direct or indirect
      material adverse effect, in the Lender’s reasonable judgment, on the ability of
      Borrower to meet its Obligations under any of the Loan Documents.  No
      inquiry, notice or threat to give notice by any governmental authority or third
      party has been received by Borrower or any of its Subsidiaries with respect
      to
      the generation, storage or disposal or release or threat of release on, under
      or
      from any real property either owned or leased by Borrower or any of its
      Subsidiaries, of any hazardous substance, hazardous material or oil, or with
      respect to any violation of any federal, state or local environmental, health
      or
      safety statute or regulation which could have a direct or material adverse
      effect, in the Lender’s reasonable judgment, on the ability of Borrower to meet
      its Obligations under any of the Loan Documents.

     

    4.16           CONTRACTS
      WITH AFFILIATES, ETC.  Except as disclosed in Exhibit 4.16 or in the
      Financial Statements and except for agreements or transactions (in each case)
      in
      the ordinary course of business and on an arm’s-length basis upon terms at least
      as favorable as would be available to Borrower as is a party thereto with an
      unaffiliated third party, neither Borrower nor any of its Subsidiaries is a
      party to or otherwise bound by any agreement, instrument or contract (whether
      written or oral) with any Affiliate, except for any such agreement, instrument
      or contract as would not materially and adversely affect the condition
      (financial or otherwise), properties, business or results of operations of
      Borrower and its Subsidiaries, taken as a whole, or Borrower’s ability to meet
      its Obligations under any of the Loan Documents.

     

    
      
        
        

      

      
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    4.17           FEDERAL
      REGULATIONS.  No part of the proceeds of any Advance, and no other
      extensions of credit hereunder, will be used for “buying” or “carrying” any
“margin stock” within the respective meanings of each of the quoted terms under
      Regulation U as now and from time to time hereafter in effect.  If
      requested by the Lender, Borrower will furnish to the Lender a statement to
      the
      foregoing effect in conformity with the requirements of FR Form G-3 or FR Form
      U
      1, as applicable, referred to in Regulation U.

     

    4.18           QUALIFICATION
      AS A REIT.  Borrower qualified as a REIT under the provisions of the
      Code, as applicable for its fiscal years ended December 31, 1991 through
      December 31, 2006, and from December 31, 2006 through the date
      hereof.  All appropriate federal income tax returns for the fiscal
      years through December 31, 2005 have been filed by Borrower with the IRS and
      no
      previously filed return has been examined and reported on by the
      IRS.  Borrower is organized in conformity with the requirements for
      qualification as a REIT pursuant to Sections 856 through 860 of the Code, and
      Borrower’s proposed method of operation consistent with Borrower’s business and
      the business activities contemplated by this Agreement will enable it to meet
      the requirements for qualification and taxation as a REIT under the
      Code.

     

    4.19           ADVISORY
      AGREEMENT; ADVISORY SUBCONTRACT.

     

    4.19.1        In
      furtherance, and without limiting the provisions of Section 4.8 of this
      Agreement, the Advisory Agreement is in full force and effect, neither party
      thereto is in breach or default of any of its terms or provisions, and no party
      has given notice to the other of the intent to terminate, or cause not to be
      renewed or extended, the Advisory Agreement.  To the best of
      Borrower’s knowledge, none of the parties to the Advisory Agreement has any
      basis or intention to terminate or cause not to be renewed or extended the
      terms
      and provisions of the Advisory Agreement.

     

    4.19.2        In
      furtherance, and without limiting the provisions of Section 4.8 of this
      Agreement, the Advisory Subcontract is in full force and effect, neither party
      thereto is in breach or default of any of its terms or provisions, and no party
      has given notice to the other of the intent to terminate, or cause not to be
      renewed or extended, the Advisory Subcontract.  To the best of
      Borrower’s knowledge, none of the parties to the Advisory Subcontract has any
      basis or intention to terminate or cause not to be renewed or extended the
      terms
      and provisions of the Advisory Subcontract.

     

    4.20           HOLDING
      COMPANY AND INVESTMENT COMPANY ACTS.  Borrower is not 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.

     

    4.21           INVESTMENT
      COMPANY ACT; OTHER REGULATIONS.  Borrower is not an “investment
      company”, or a company “controlled” by an “investment company”, within the
      meaning of the Investment Company Act of 1940, as amended.  Borrower
      is not subject to regulation under any Requirement of Law that limits its
      ability to incur Indebtedness.

     

    
      
        
        

      

      
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    Section
      5.

    AFFIRMATIVE
      COVENANTS

     

    Unless
      the Lender waives compliance in writing, Borrower agrees to, and shall cause
      its
      Subsidiaries to, do the following until the Lender is no longer obligated to
      make any further Advances and all Obligations hereunder have been repaid in
      full
      (including all principal, interest, costs, fees and expenses, including, without
      limitation, Loan Fees and reasonable attorneys’ fees and costs):

     

    5.1           FINANCIAL
      STATEMENTS.

     

    5.1.1        Within
      one hundred twenty (120) days after the end of Borrower’s fiscal year, deliver
      to the Lender a complete copy of Borrower’s audited financial statements
      certified as being true and correct by the chief financial officer of
      Borrower.  The above financial statements are to be prepared in
      accordance with GAAP and shall include at least, on a consolidated and
      consolidating basis, a balance sheet as of the close of each such fiscal year
      and a statement of income and retained earnings (or comparable statement) for
      each such fiscal year, as at the end of the fiscal year, together with the
      report by Borrower’s Accountants, which financial statements shall fairly
      reflect the financial condition and operations of such entity, together with
      a
      certificate of said chief financial officer, in the form of Exhibit 5.1 hereof,
      to the effect that, in making the examination necessary for his report of the
      financial affairs of such entity for such fiscal year, he has obtained no
      knowledge of the occurrence of any condition, event or act which would
      constitute a Default or an Event of Default, or, if said officer shall have
      obtained knowledge of any such violation, condition, event or act, a statement
      as to the nature and status thereof.

     

    5.1.2         Deliver
      to the Lender as soon as such statements are available, but not later than
      sixty
      (60) days after the end of each quarter, a copy of Borrower’s unaudited
      financial statements, on a consolidated and consolidating basis, certified
      by
      the principal financial officer of each entity as having been prepared in
      accordance with GAAP (subject to year end adjustments, none of which shall
      be
      material individually or in the aggregate), together with a certificate of
      said
      officer, in the form of the Covenant Compliance Certificate attached hereto
      as
      Exhibit 5.1, stating he has no knowledge that a Default or an Event of Default,
      has occurred and is continuing or, if a Default or an Event of Default or such
      event has occurred and is continuing, a statement as to its nature and the
      action which Borrower or any other entity proposes to take with respect to
      such
      event.

     

    5.1.3         Deliver
      to the Lender as soon as such statements are available, but not later than
      sixty
      (60) days prior to December 31 of each year, a copy of the consolidated and
      consolidating budgeted operating statements (including, without limitation
      balance sheet, statement of income and retained earnings and statement of cash
      flows) for Borrower for the fiscal year commencing immediately following such
      December 31.

     

    5.1.4         Deliver,
      promptly upon receipt, to the Lender copies of all material notices received
      from any governmental authority.

     

    
      
        
        

      

      
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    5.1.5        Deliver,
      upon the Lender’s request from time to time, delinquency reports with respect to
      any of Borrower’s investments.

     

    5.1.6        Deliver
      to the Lender within thirty days of the end of each calendar month a valuation
      of each so-called GNMA Certificate owned directly or indirectly by Borrower
      or
      any of its Subsidiaries.  In addition, Borrower will notify the Lender
      within five Business Days of any change in value greater than 5% of any GNMA
      Certificate.

     

    5.1.7        Deliver
      to the Lender, simultaneously with each Borrowing Notice, a Covenant Compliance
      Certificate in which the officer executing and delivering such Certificate
      states that he has no knowledge that a Default or an Event of Default has
      occurred and is continuing.

     

    5.1.8        Deliver
      such additional information as the Lender from time to time may reasonably
      request with respect to the business affairs and financial condition of
      Borrower.

     

    5.2           MAINTENANCE
      OF EXISTENCE; CHARACTER OF EQUITY.

     

    5.2.1        Remain
      in and continue to operate, and cause its Subsidiaries to remain in and continue
      to operate, substantially the same line of business presently engaged in or
      contemplated to be engaged in by the terms of this Agreement as described in
      the
      Registration Statement (except that Borrower and its Subsidiaries may, upon
      notice to the Lender, withdraw from any business activity which its trustee(s)
      or manager(s) reasonably deem unprofitable or unsound in the due exercise of
      their authority, provided, however, such withdrawal shall not impair in any
      way
      such entity’s ability to fully pay and perform all of its Obligations), maintain
      and preserve, and cause Borrower to maintain and preserve, its existence and
      all
      rights, privileges and franchises necessary or desirable in the conduct of
      its
      business as contemplated by this Agreement; and conduct its business (and no
      other business) as contemplated by the terms of this Agreement in an orderly,
      efficient and customary manner.  Borrower shall not modify or amend
      its Organizational Documents without first giving 20 days prior written notice
      of a proposed change to the Lender.

     

    5.3           MAINTENANCE
      OF PROPERTIES.  Restore, maintain and operate all of its respective
      properties, if any, in accordance with sound commercial practices and maintain,
      preserve and keep all of its respective properties and assets necessary or
      useful in its respective business in good working order and
      condition.

     

    5.4           COMPLIANCE
      WITH LAWS.  Comply with and duly observe the requirements of all
      applicable laws, rules, regulations and orders of all federal, state and local
      governmental authorities, including without limitation obligations imposed
      by
      ERISA and hazardous substance and environmental laws, non-compliance with which
      could materially adversely affect the Borrower’s business or
      credit.

     

    5.5           TAXES
      AND CLAIMS.  Pay and discharge promptly all taxes, assessments,
      governmental charges and levies imposed, respectively, upon it or upon its
      income or profits or upon any properties belonging to it, prior to the date
      on
      which penalties would be imposed, and pay all lawful claims for labor, materials
      and supplies that, if unpaid, might become a lien or charge upon its respective
      property, provided that Borrower and its Subsidiaries shall not be required
      to
      pay any such tax, assessment, charge, levy or claim if the amount, applicability
      or

     

    
      
        
        

      

      
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    validity
      thereof is currently being contested in good faith and by proper proceedings
      and
      if such entity, respectively, has set aside on its books and shall maintain
      adequate reserves for the payment of the same in conformity with
      GAAP.

     

    5.6           NOTICE
      OF DEFAULTS.  Give prompt written notice to the Lender of any Default
      or Event of Default or of any default arising under any other agreement or
      indenture entered into by Borrower or any of its Subsidiaries, or of any other
      matter which has resulted in or is reasonably anticipated to result in a
      materially adverse change in Borrower’s financial condition, operations or
      prospects.

     

    5.7           CHANGES
      IN MANAGEMENT.  Give prompt written notice to the Lender of any
      changes in the senior management positions of Borrower or the
      Advisor.

     

    5.8           NOTICE
      OF LITIGATION.  Give prompt written notice of any pending or
      threatened claim, action or proceeding which would, in the event of an
      unfavorable outcome, have a materially adverse effect on the condition
      (financial or otherwise), operations or prospects of Borrower and its
      Subsidiaries, taken as a whole.

     

    5.9           RECORDS.  Keep
      and maintain full and accurate accounts and records of its operations according
      to GAAP and permit the Lender (and its designated officers, employees, agents
      and representatives) to have access to such accounts, records and operations
      and
      to make examinations thereof upon reasonable prior notice during normal business
      hours.

     

    5.10           EXECUTION
      OF OTHER INSTRUMENTS.  Do, execute, acknowledge and deliver, or cause
      to be done, executed, acknowledged and delivered by others, all further acts,
      covenants, assurances or further instruments and documents, promptly after
      the
      Lender reasonably requests, in order to carry out the intent and purpose of
      this
      Agreement and the other Loan Documents.  Borrower shall pay all fees
      and expenses (including without limitation reasonable attorneys’ fees and costs)
      in connection with the foregoing.

     

    5.11           MAINTENANCE
      OF REIT STATUS.  Engage in such business activities, and shall refrain
      from engaging in such activities, so as to have Borrower continue to meet the
      requirements for qualification and taxation as a REIT under the
      Code.

     

    5.12           CONTINUATION
      OF ADVISORY AGREEMENT AND ADVISORY SUBCONTRACT.  Borrower shall notify
      the Lender at least 90 days prior to any of the terms or conditions of the
      Advisory Agreement or the Advisory Subcontract no longer being in full force
      and
      effect or otherwise being terminated or amended for any reason or for no
      reason.  Borrower shall notify the Lender at least 90 days prior to
      either the Advisor or Centerline Affordable no longer being bound by the
      Advisory Agreement or the Advisory Subcontract, including, without limitation,
      because of either the Advisor’s or Centerline Affordable’s assignment or
      delegation of their respective obligations or duties thereunder; provided,
      however, that the transfer of all of the equity interests in Centerline
      Affordable to an Affiliate of Centerline Affordable or to a Person whose chief
      executive with senior-most responsibility for the business and operations of
      such Person is an Affiliate of Centerline Affordable, shall not constitute
      an
      assignment or delegation of Centerline Affordable’s obligations or duties
      thereunder.  In the event that either the Advisor or Centerline
      Affordable provides notice of its intention to terminate the
      Advisory

     

    
      
        
        

      

      
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    Agreement
      or the Advisory Subcontract, regardless of whether such termination is in
      accordance with the terms of the Advisory Agreement or the Advisory Subcontract,
      or fails to renew or extend the Advisory Agreement or the Advisory Subcontract
      for any reason or for no reason, Borrower shall provide to the Lender written
      notice at least 90 days prior to the effectiveness of such notice from the
      Advisor or from Centerline Affordable or such failure to renew or
      extend.  During the 90 day period following any such notice from, or
      failure by, Borrower pursuant to this Section 5.12, Borrower shall execute
      and
      deliver with one or more Persons reasonably acceptable to the Lender an
      agreement to provide those services following the end of such 90 day period
      provided by the Advisor and Centerline Affordable pursuant to the Advisory
      Agreement and the Advisory Subcontract.

     

    5.13           INSPECTION
      OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS.  

     

    5.13.1        Borrower
      and its Subsidiaries shall keep proper books of records and account in which
      full, true and correct entries in conformity with GAAP and all requirements
      of
      law shall be made of all dealings and transactions in relation to its business
      and activities.

     

    5.13.2        Borrower
      shall permit the Lender to examine and make abstracts from any of its books
      and
      records, at any reasonable time and as often as may reasonably be desired and
      to
      discuss the business, operations, properties and financial and other condition
      of Borrower and its Subsidiaries, taken as a whole with its representatives
      and
      with its independent certified public accountants.

     

    5.13.3        Borrower
      shall permit the Lender to conduct audits of Borrower (but not more than once
      during each semi-annual period unless a Default or an Event of Default has
      occurred and is continuing).  Borrower shall bear, and reimburse the
      Lender for, the commercially reasonable expenses of each such
      audit.

     

    Section
      6.

    NEGATIVE
      COVENANTS

     

    Borrower
      covenants and agrees that until the Lender is no longer obligated to make any
      further Advances on account of the Line of Credit and the Obligations have
      been
      repaid and performed in full, Borrower will not and will cause its Subsidiaries
      to not:

     

    6.1           ENCUMBRANCES
      AND LIENS.  Create, execute, assume or allow any mortgage, deed of
      trust, security agreement, pledge or encumbrance, or any other lien of any
      kind,
      or execute or allow to be filed any financing statement affecting, any or all
      of
      its property, real, personal or mixed, whether now owned or hereafter acquired,
      except:

     

    6.1.1       
      Liens or charges for current taxes, assessments or other governmental charges
      which are not delinquent or which remain payable without penalty, or the
      validity of which is contested in good faith by appropriate proceedings upon
      stay of execution of the enforcement thereof, provided such entity shall have
      set aside on its books and shall maintain adequate reserves for their payment
      in
      conformity with GAAP;

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    6.1.2         Liens
      or encumbrances granted with respect to its real estate, partnership interests
      or other assets, now owned or hereafter acquired, solely to the extent that
      such
      lien or encumbrance secures Indebtedness permitted under the terms of this
      Agreement;

     

    6.1.3         Liens
      or encumbrances related to carriers’, warehouse men’s, mechanics’,
      materialmen’s, repairman’s, or other like liens arising in the ordinary course
      of business which are not overdue for a period of more than thirty days or
      which
      are being contested in good faith and by appropriate proceedings diligently
      conducted, provided that such entities shall have set aside on their books
      and
      shall maintain adequate reserves for their payment in conformity with
      GAAP;

     

    6.1.4         Liens
      or encumbrances arising solely by virtue of any statutory or common law
      provision relating to banker’s liens, rights of set-off or similar rights and
      remedies as to deposit accounts or other funds maintained with a creditor
      depository institution; and

     

    6.1.5         Liens
      or encumbrances that are easements, rights-of-way, restrictions and other
      similar encumbrances affecting the real property which, in the aggregate, are
      not substantial in amount, and which do not in any case materially and adversely
      detract from the value of the property subject thereto or materially interfere
      with the ordinary conduct of the business of the applicable Person.

     

    6.1.6         Liens
      or encumbrances that are easements, rights-of-way, restrictions and other
      similar encumbrances affecting the real property which, in the aggregate, are
      not substantial in amount, and which do not in any case materially and adversely
      detract from the value of the property subject thereto or materially interfere
      with the ordinary conduct of the business of the applicable Person.

     

    6.1.7        All
      liens or encumbrances set forth on Exhibit 6.1. attached hereto.

     

    6.2           INDEBTEDNESS.

     

    6.2.1        Create,
      incur, assume or suffer to exist, nor in any manner become or be liable directly
      or indirectly with respect to any Indebtedness (on a consolidated basis)
      except:  (A) the Obligations; (B) Indebtedness for other borrowed
      money existing on the date of this Agreement, listed and described, but only
      to
      the extent so listed and described, on Exhibit 6.2 attached hereto, and any
      refinancings, refundings, renewals, restatement, or extensions thereof, provided
      that the principal amount of such Indebtedness is not increased at the time
      of
      such refinancing, refunding, renewal, restatement or extension except for an
      amount equal to a reasonable premium for accrued and unpaid interest thereon
      and
      the fees and expenses incurred in connection with such refinancing, refunding,
      renewal, restatement or extension, and by an amount equal to any existing
      commitments unutilized thereunder; (C) Indebtedness for the purchase price
      of capital assets incurred in the ordinary course of business (other than real
      estate), subject, however, to the limitation that such Indebtedness does not
      exceed the lesser of the cost of such capital assets or its fair market value
      at
      the time of acquisition; (D) Indebtedness permitted under Section 6.4 hereof;
      (E) Indebtedness for taxes, assessments or governmental charges to the
      extent that payment thereof shall at the time not be required to be made in
      accordance with Section 5.5 hereof; (F) Indebtedness represented by trust
      preferred securities

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    issued
      by
      the Borrower or any of its Subsidiaries or represented by the issuance of
      collateralized debt obligation securities of a Subsidiary of the Borrower;
      or
      (G) Indebtedness on open account for the cost of services, materials and
      supplies incurred by Borrower in the ordinary course of business (not as a
      result of borrowing), so long as all of such open account Indebtedness shall
      be
      promptly paid and discharged when due or in conformity with customary trade
      terms and practices, except for any such open account Indebtedness which is
      being contested in good faith by such debtor, respectively, as to which adequate
      reserves required by GAAP have been established and are being maintained and
      as
      to which no lien or encumbrance has been placed on any property of such debtor,
      respectively.

     

    6.3           CONSOLIDATION
      AND MERGER.  Liquidate or dissolve or enter into any consolidation,
      merger, partnership, joint venture, syndicate or other combination.

     

    6.4           LOANS,
      GUARANTEES, INVESTMENTS.  Except as expressly permitted by this
      Agreement, make any advance, loan or extension of credit to nor become a
      guarantor or surety for any Person, firm or corporation; except that (a)
      Subsidiaries of the Borrower may make loans to the Borrower or any other
      Subsidiary of the Borrower; and (b) the Borrower and its Subsidiaries may make
      investments (i) in direct obligations of the United States of America or of
      any
      state, U.S. federal agency obligations and commercial paper designated as
“prime” by the National Credit Office of Dunn & Bradstreet, and (ii) in the
      ordinary course of Borrower’s Business substantially consistent with past
      practices.

     

    6.5           ACQUISITIONS.  Except
      in the ordinary course of Borrower’s Business substantially consistent with past
      practices, purchase, acquire or incur any liability for the purchase or
      acquisition of any or all of the assets or business (including stock,
      partnership, membership or other equity interests) of any Person.

     

    6.6           DISPOSAL
      OF ASSETS.  Sell, lease, assign, transfer or otherwise dispose of more
      than five percent (5%) of its property or assets, now owned or hereafter
      acquired, except for (a) obsolete or worn-out property and real estate not
      used
      or useful in its business, and inventory sold at market rates in the ordinary
      course of business, (b) in the ordinary course of Borrower’s Business
      substantially consistent with past practices.

     

    6.7           PAYMENT
      OF DISTRIBUTIONS.  Declare or pay directly or indirectly (through any
      Affiliate or otherwise), any distributions in respect to its equity interests
      or
      make any distribution of assets with respect to its equity interests or in
      payment of fees or other compensation or reimbursement of any expenses to a
      party related to any other Affiliates, whether in cash, property or securities,
      except that so long as there does not then exist a Default or Event of Default
      (with and without taking into account the making of any such distribution),
      Borrower may make distributions to its equity holders as it may elect from
      time
      to time.

     

    6.8           LIMITATIONS
      ON LEASING.  Lease or become liable as lessee upon any lease of real
      or personal property, other than leases of office space and equipment at market
      rates entered into in the ordinary course of business consistent with past
      practices.

     

    6.9           DEFAULT
      UNDER OTHER AGREEMENTS OR INDENTURES.  Commit or do, or fail to commit
      or do, any act or thing which action or failure to act would constitute
      a

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    material
      event of default under any of the terms or provisions of any other agreement,
      indenture, contract, document or instrument executed or to be executed by such
      entity where such event of default would have a material adverse effect on
      the
      business or condition (financial or otherwise) of Borrower.

     

    6.10           PURCHASE
      OF MARGIN STOCK.  In furtherance, and not in limitation, of Section
      5.2 hereof, utilize any part of the proceeds of the Loan to purchase or carry
      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 margin stock.

     

    6.11           AMENDMENT
      TO CERTAIN DOCUMENTS.  Except with the prior written consent of the
      Lender:

     

    6.11.1       
      amend or agree with any party to vary the terms of any Organizational Documents
      of any of Borrower in a manner which may be materially adverse to the Lender;
      or

     

     
      Subject to the terms of Section 5.12 hereof, amend or vary the terms of either
      the Advisory Agreement or Advisory Subcontract in a manner which may be
      materially adverse to the Lender.  Borrower hereby acknowledges and
      agrees that, unless a Person reasonably acceptable to the Lender is engaged
      to
      perform such services in accordance with the terms of Section 5.12 hereof,
      Centerline Affordable’s no longer serving as its advisor in substantially the
      same capacity in which Centerline Affordable serves as its advisor as of the
      date of this Agreement shall constitute circumstances which are, for purposes
      of
      this Agreement, materially adverse to the Lender.

     

    6.12           TRANSACTIONS
      WITH AFFILIATES.  Directly or indirectly enter into, any purchase,
      sale, lease or other transaction with any Affiliate except in the ordinary
      course of business on terms that are no less favorable to such transacting
      entity than those which might be obtained at the time in a comparable
      arm’s-length transaction with any Person (including an individual, corporation,
      partnership, trust, limited liability company and governmental agency or
      instrumentality) who is not an Affiliate

     

    6.13           ERISA
      COMPLIANCE.  Permit, suffer or cause any Plan or any fiduciary or any
      party-in-interest (as such terms are defined in ERISA) thereof, to
      (A) engage in any “prohibited transaction” (as defined in ERISA and the
      Code), (B) incur any material “accumulated funding deficiency” (as defined in
      Section 412(a) of the Code and Section 302 of ERISA) whether or not waived,
      (C) fail to satisfy any additional funding requirements set forth in Section
      412
      of the Code and Section 302 of ERISA, (D) terminate any Plan in a manner which
      could result in the imposition of a lien on any property of an such entity,
      and
      (E) fail to administer the Plan in accordance with its terms, ERISA and the
      Code.  Each Plan shall comply in all material respects with
      ERISA.  In furtherance of the foregoing, with respect to any Plan,
      Borrower shall, or shall cause its Affiliates to, furnish to the Lender promptly
      (T) Written notice of the failure to make any contribution, premium payment
      or other payment relating to the funding of any Plan when due, (U) written
      notice of the actual or threatened insertion of any claim, complaint or cause
      of
      action against any Plan (other than a claim for benefits under such Plan filed
      in the ordinary course of such Plan’s administration) or any fiduciary thereof,
      (V) written notice of the occurrence of a Reportable Event (as defined in ERISA
      and the Code), (W) a copy of any request

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    for
      a
      waiver of the funding standards or an extension of the amortization periods
      required under Section 412 of the Code and Section 302 of ERISA, (X) a copy
      of
      any notice of intent to terminate any funded Plan that is a defined benefit
      plan, (Y) notice that Borrower or any of its Affiliates will or may incur any
      liability to or on account of a Plan under Section 4062, 4064, 4201 or 4204
      of
      ERISA, and (Z) upon the Lender’s request, a copy of the annual report of each
      Plan (Form 5500 or comparable form) required to be filed with the IRS and/or
      the
      U.S. Department of Labor.  Any notice to be provided to the Lender
      under this Section shall include a certificate of the chief financial officer
      of
      Borrower setting forth details as to such occurrence and the action, if any,
      which such entity and/or the Affiliate is required or proposes to take, together
      with any notices required or proposed to be filed with or by such entity and/or
      any Affiliate, the Pension Benefit Guaranty Corporation, the IRS, the trustee
      or
      the Plan administrator with respect thereto.  Promptly after the
      adoption of any Plan subject to ERISA, the entity adopting such Plan shall
      notify the Lender of such adoption and of the vesting and funding schedules
      and
      other principal provisions thereof.

     

    6.14           REAL
      ESTATE ACTIVITIES.

     

    6.14.1      
       Engage in the development or acquisition of real estate (except solely to
      the extent permitted under Subchapter M of the Code and all regulations
      thereunder); or

     

    6.14.2        Undertake
      or participate in, directly or indirectly, any real estate development project
      or asset of any kind whatsoever except as specifically contemplated by this
      Agreement or in the ordinary course of Borrower’s Business consistent with past
      practices.

     

    6.15           DEFAULT
      UNDER ADVISORY AGREEMENT OR ADVISORY SUBCONTRACT.  Commit or do, or
      fail to commit or do, any act or thing which action or failure to act would
      constitute a breach or default under any of the terms or provisions of either
      the Advisory Agreement or Advisory Subcontract.

     

    Section
      7.

    FINANCIAL
      COVENANTS

     

    7.1           MINIMUM
      ADJUSTED NET WORTH.  Borrower shall at all times maintain, and shall
      have maintained, on a consolidated basis, an Adjusted Net Worth of not less
      than
      SEVENTY-FIVE MILLION AND 00/100 DOLLARS ($75,000,000.00), as determined at
      the
      end of each calendar quarter, adjusted at the end of each calendar quarter
      by
      seventy-five percent (75%) of any Net Equity raised during each such calendar
      quarter.

     

    7.2           LIQUIDITY.  Borrower,
      on a consolidated basis, shall at all times maintain Liquidity of not less
      than
      TEN MILLION AND 00/100 DOLLARS ($10,000,000.00), as determined at the end of
      each calendar quarter.

     

    7.3           DEBT
      SERVICE COVERAGE.  Borrower shall at all times maintain, and shall
      have maintained, a Debt Service Coverage, as determined at the end of each
      quarter, of not less than 1.25X.

     

    7.4           RECOURSE
      DEBT TO ADJUSTED NET WORTH.  Borrower shall maintain a quarterly
      Recourse Debt to Adjusted Net Worth that is equal to or less than
      6.25X.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    7.5           MINIMUM
      ADJUSTED AFFO.  Borrower shall at all times maintain, and shall have
      maintained, quarterly Adjusted AFFO of at least ONE MILLION FIVE HUNDERED
      THOUSAND AND 00/100 DOLLARS ($1,500,000), as determined at the end of each
      calendar quarter.

     

    Section
      8.

    EVENTS
      OF
      DEFAULT

     

    8.1           EVENTS
      OF DEFAULT.  If one or more of the following described Events of
      Default occurs:

     

    8.1.1        Borrower
      defaults in the punctual payment of any principal or interest on any Obligation
      when due and such default continues for a period of five (5) days after the
      due
      date of such principal or interest payment; or

     

    8.1.2        Any
      of the representations or warranties made by Borrower in this Agreement, any
      Note, any other Loan Document, agreement, guaranty, certificate or financial
      or
      other statements delivered or later furnished by or on behalf of Borrower in
      connection with this Loan is false or misleading in any material respect at
      the
      time made; or

     

    8.1.3        Borrower
      fails to pay, perform or otherwise observe any other covenant, term, provision,
      condition, agreement or obligation of, or otherwise defaults under, this
      Agreement, or any other Loan Document; or

     

    8.1.4        Borrower
      or any of its Subsidiaries becomes insolvent, or admits in writing its inability
      to pay its debts as they mature, or fails generally to pay its debts as they
      become due, or makes an assignment for the benefit of creditors or commences
      a
      case for its dissolution; or applies for or consents to the appointment of
      or
      taking possession by a trustee, liquidator, assignee, custodian, sequestrator
      or
      receiver (or similar official) for it or for a substantial part of its property
      or business; or takes any action in furtherance of any of the foregoing;
      or

     

    8.1.5        A
      trustee, liquidator, assignee, custodian, sequestrator or receiver (or similar
      official) is appointed for Borrower or any of its Subsidiaries or for a
      substantial part of any of its property or business without its consent and
      is
      not discharged within thirty (30) days after such appointment; or

     

    8.1.6        Any
      governmental agency or any court of competent jurisdiction at the insistence
      of
      any governmental agency assumes custody or control of the whole or any
      substantial portion of the properties or assets of Borrower or any of its
      Subsidiaries and such is not dismissed within thirty (30) days thereafter;
      or

     

    8.1.7        Any
      money judgment, writ or warrant of attachment, or similar process, in excess
      of
      $1,000,000.00 is entered or filed against Borrower or any of its Subsidiaries,
      any of its properties or other assets and is not vacated, bonded, or stayed
      within the earlier of (a) a period of thirty (30) days or (b) five (5) days
      prior to the date of any proposed sale thereunder, unless (i) currently
      contested by such party in good faith and by proper proceedings and (ii) such
      party shall have set aside on its books and shall maintain adequate reserves
      for
      the payment of the same in conformity with GAAP; or

     

    
      
        
        

      

      
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    8.1.8        A
      bankruptcy, reorganization, insolvency, or liquidation case or other case for
      relief under any bankruptcy law or any law for the relief of debtors is
      commenced by or against Borrower or any of its Subsidiaries and, if instituted
      against Borrower or any of its Subsidiaries, is not dismissed within thirty
      (30)
      days after such institution or such entity by any action or answer approves
      of,
      consents to, or acquiesces in any such case or admits the material allegations
      of, or defaults in answering a petition filed in any such case; or

     

    8.1.9       
      This Agreement or any other guaranty or other agreement entered into in
      connection herewith or therewith, or any other Loan Document, at any time while
      any Obligations remain unpaid or unperformed, ceases to be in full force and
      effect or is declared null and void, or the validity or enforceability thereof
      is contested or any party thereto denies that it has any or further liability
      or
      obligation under this Agreement, such other agreement, such guarantee or any
      other Loan Document; or

     

    8.1.10      
      A default or a breach shall have occurred and be continuing beyond any
      applicable cure period in the payment or performance of any direct or contingent
      liability of Borrower or any of its Subsidiaries in excess of $1,500,000.00;
      or

     

    8.1.11       Any
      security issued by Borrower and listed on a national securities exchange or
      quoted on an automated quotation system of a national securities association
      is
      delisted from such national securities exchange or ceases to be quoted on such
      automated quotation system, as applicable; or

     

    8.1.12       The
      assignment by the Advisor or Centerline Affordable, by act or omission, or
      by
      operation of law, of all or any portion of their respective rights, benefits
      and
      entitlements, including, without limitation, their respective economic
      interests, under the Advisory Agreement or the Advisory Subcontract (except
      if
      and to the extent (i) arising out of the transfer of all of the equity interests
      in Centerline Affordable to an Affiliate of Centerline Affordable or to a Person
      whose chief executive with senior-most responsibility for the business and
      operations of such Person is an Affiliate of Centerline Affordable, or (ii)
      in
      accordance with the terms of Section 5.12 hereof); or either the Advisor or
      Centerline Affordable gives notice of its intention to terminate the Advisory
      Agreement or the Advisory Subcontract, or either the Advisor or Centerline
      Affordable fails to renew the Advisory Agreement or the Advisory Subcontract
      (except in accordance with the terms of Section 5.12 hereof

     

    And
      any
      such Event of Default (except for an Event of Default described in Sections
      8.1.1, 8.1.2, 8.1.4 through 8.1.10 (inclusive) and 8.1.12, for which there shall
      be no grace period except as specifically provided therein, and except for
      any
      other Event of Default that is not capable of being cured (for example, without
      limitation, an Event of Default arising out of a breach of a financial covenant
      set forth in Section 7 hereof)) shall continue for more than fifteen (15) days
      after the Lender shall have first notified Borrower of such Event of Default
      (or
      for more than sixty (60) days after the Lender shall have first notified
      Borrower of such Event of Default, if such Event of Default is a non-monetary
      failure or breach and is not capable of being cured within such fifteen (15)
      day
      period but is, nevertheless, capable of cure and Borrower shall have commenced
      and is diligently pursuing (in the sole determination of the Lender) a cure
      of
      such failure or breach) THEN, or at any time thereafter, (unless such Event
      of
      Default shall have been waived in writing by the Lender in accordance with
      the
      terms of Section 9.3 hereof) at the

     

    
      
        
        

      

      
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    option
      of
      the Lender’s unrestricted discretion the Lender may terminate the Line of Credit
      and each commitment to make any Advances to Borrower and each Obligation
      outstanding shall, without presentment, demand, protest, or notice of any kind,
      all of which are hereby expressly waived, be forthwith due and payable, if
      not
      otherwise then due and payable, anything herein contained or in any Note or
      other document to the contrary notwithstanding, and the Lender may immediately,
      and without any expiration of any period of grace, enforce any and all of the
      Lender’s rights or remedies provided by this Agreement, any Note, any Loan
      Document or any other rights or remedies afforded by law.

     

    Section
      9.

    MISCELLANEOUS
      PROVISIONS

     

    9.1           INCORPORATION
      OF PREAMBLE, RECITAL AND EXHIBITS.  The preamble, Recitals, and
      exhibits hereto are incorporated into this Agreement by reference and made
      a
      part hereof.

     

    9.2           NOTICES.  All
      notices, requests and demands given under the terms of this Agreement shall
      be
      in writing and may be effected by personal delivery, including by any commercial
      courier or overnight delivery service, or by United States certified mail,
      return receipt requested, with all postage and fees fully
      prepaid.  Notices shall be effective upon receipt by the party being
      given notice, as indicated by the return receipt if mailed; except that if
      a
      party has relocated without providing the other party with its new address
      for
      service of notices, or if a party refuses delivery of a notice upon its tender,
      the notice shall be effective upon the attempt to serve the notice at the last
      address given for service of notices upon that party.  In addition to
      the foregoing, notice may be served by facsimile transmission, in which case
      service shall be deemed effective only upon receipt by the party serving the
      notice of telephonic or return facsimile transmission confirmation that the
      party to whom the notice is directed has received a complete and legible copy
      of
      the notice.  Notices shall be addressed as follows:

     

    
      	
               

            	
              Borrower:

            	
              American
                Mortgage Acceptance Company

            

    

     

    
      	
               

            	
              625
                Madison Avenue

            

    

     

    
      	
               

            	
              New
                York, NY 10022

            

    

     

    
      	
               

            	
              Attention:

            	
              James
                L. Duggins, Chief Executive Officer

            

    

     

    
      	
               

            	
              Telephone:

            	
              (972)
                868-5323

            

    

     

    
      	
               

            	
              Facsimile:

            	
              (212)
                593-5769

            

    

     

    
      	
               

            	 

    

     

    
      	
               

            	
              Lender:

            	
              Centerline
                Holding Company

            

    

    
      	
               

            	
              625
                Madison Avenue

            

    

    
      	
               

            	
              New
                York, NY 10022

            

    

    
      	
               

            	
              Attention:

            	
              Marc
                D. Schnitzer, Chief Executive Officer and
                President

            

    

    
      	
               

            	
              Telephone:

            	
              (212)
                317-5700

            

    

    
      	
               

            	
              Facsimile:

            	
              (212)
                751-3550

            

    

    
      	
               

            	
               

            

    

    

    
      
        
        

      

      
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                     The
        addresses for service of notice on any party may be changed by that party
        by
        serving a notice upon the others of the new address or addresses, except
        that
        any change of address to a post office box shall not be effective unless
        a
        street address is also specified for use in effectuating personal
        service.

    

     

    9.3           AMENDMENTS,
      WAIVERS, ETC.

     

               The
      Lender may exercise its rights and remedies under this Agreement, the Note
      and
      the Loan Documents without resorting or regard to other interests or sources
      of
      reimbursement.  The Lender shall not be deemed to have waived any of
      such rights or remedies unless such waiver be in writing and signed by the
      Lender.  No delay or omission on the part of the Lender in exercising
      any of such rights or remedies shall operate as a waiver of such right or any
      other right.  A waiver on any one occasion shall not be construed as a
      bar to or waiver of any right on any future occasion.  All such rights
      and remedies shall be cumulative and may be exercised separately or
      concurrently.

     

    9.4           INDEMNIFICATION.  To
      the fullest extent permitted by law, Borrower agrees to protect, indemnify,
      defend and hold harmless the Lender, its trustees, officers, agents, employees
      and representatives from and against any and all liability, expense, loss or
      damage of any kind or nature and from any suits, claims or demands, including
      without limitation reasonable attorneys’ fees and costs, on account of any
      matter or thing or action or failure to act by the Lender, or its trustees,
      officers, agents, employees or representatives, whether in suit or not, arising
      out of this Agreement or in connection herewith or with the transactions
      contemplated hereby, unless such suit, claim or demand is caused principally
      by
      any grossly negligent act or omission or willful malfeasance of, the Lender,
      its
      trustees, officers, agents and employees and representatives.  Upon
      receiving knowledge of any suit, claim or demand asserted by a third party
      that
      the Lender believes is covered by this indemnity, such indemnified party shall
      give Borrower notice of the matter and an opportunity to defend it, at
      Borrower’s sole cost and expense, with legal counsel satisfactory to such
      indemnified party.  If such indemnified party is not satisfied with
      the defense being provided, such indemnified party may employ an attorney or
      attorneys selected by it to protect its rights hereunder, and Borrower shall
      pay
      to such indemnified party the reasonable attorneys’ fees and costs incurred by
      such indemnified party.  This obligation on the part of Borrower shall
      survive the closing of the Loan the repayment of all obligations hereunder
      and
      the termination or expiration of this Agreement.

     

    9.5           INCONSISTENCIES
      WITH OTHER LOAN DOCUMENTS.  In the event that it is impossible to
      simultaneously comply with the terms of this Agreement and any term of any
      of
      the other Loan Documents, the terms of this Agreement shall govern and prevail
      over the conflicting portion of the other Loan Document(s).

     

    9.6           EXPENSES.  Borrower
      shall pay on demand all reasonable costs and expenses, including, without
      limitation, reasonable attorneys’ fees and costs, incurred (A) by the Lender in
      connection with the preparation of this Agreement, (B) by the Lender in
      connection with the administration of this Agreement, and (C) by the Lender
      in
      connection with the enforcement and protection of its rights under this
      Agreement, including the protection of the rights of the Lender in any
      bankruptcy, reorganization, liquidation or insolvency proceeding, whether or
      not
      litigation is commenced.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    9.7           ASSIGNABILITY.

     

    9.7.1        This
      Agreement shall bind and its benefits shall inure to Borrower, the Lender,
      and
      their respective successors and permitted assigns, as the case may
      be.

     

    9.7.2        Borrower
      may not assign (voluntarily or by force of law) all or any portion of its
      interests, rights and obligations under this Agreement, the Note or any of
      the
      Loan Documents, without the prior written consent of the Lender, which consent
      may be withheld in the Lender’s sole and unrestricted discretion.

     

    9.7.3        The
      Lender may assign all or any portion of its interests, rights and obligations
      under this Agreement, the Note and the Loan Documents (for purposes of this
      Section 9.7 only, collectively, the “Assigned Commitment”); provided, however,
      that if there does not then exist a Default or Event of Default, the prior
      written consent of Borrower shall be required to any such proposed assignment;
      provided further, however, that such consent shall not be unreasonably withheld,
      conditioned or delayed.

     

    9.8           TIME
      OF ESSENCE.   Time is of the essence of this
      Agreement.

     

    9.9           ENTIRE
      AGREEMENT.  This Agreement and the Loan Documents and other materials
      furnished to the Lender by and on behalf of Borrower constitute the entire
      agreement and understanding of the Lender and Borrower and supersedes any and
      all prior agreements and understandings, both written and oral, among the
      parties with respect to the matters set forth herein and therein.  No
      representation, warranty, covenant, promise, understanding or condition shall
      be
      enforceable against any party unless it is contained in this Agreement or the
      Loan Documents.

     

    9.10           SEVERABILITY.  The
      invalidity or unenforceability of any one or more provisions of this Agreement
      or any Loan Document under particular circumstances or in its entirety shall
      not
      affect the validity or enforceability of such provisions under different
      circumstances or the validity or enforceability of any other
      provision.

     

    9.11           GOVERNING
      LAW.  This Agreement, any Note and all other documents executed
      pursuant to this Agreement or any Note shall be deemed entered into, and shall
      be governed and construed according to the laws of the State of New York,
      notwithstanding choice of law rules to the contrary.

     

    9.12           NO
      PARTNERSHIP OR JOINT VENTURE.  The Lender and Borrower agree that the
      Lender is not a partner or joint venturer with Borrower, in any manner
      whatsoever.

     

    9.13           REPLACEMENT
      DOCUMENTS.  Upon receipt of an affidavit from the Lender (containing
      standard indemnification provisions or representations) as to the loss, theft,
      destruction or mutilation of any Loan Document or Note, Borrower shall issue
      or
      execute and deliver to the Lender in lieu thereof, an identical replacement
      therefor.

     

    9.14           HEADINGS.  The
      headings of this Agreement are solely for the purpose of identification and
      shall not be construed as a part of the paragraphs they head.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    9.15           USURY
      LIMITATION.  If, at any time, the rate of interest, together with all
      amounts which constitute interest and which are reserved, charged or taken
      by
      the Lender as compensation for fees, services or expenses incidental to the
      making, negotiating or collection of the Loan, shall be deemed by any competent
      court of law, governmental agency or tribunal to exceed the maximum rate of
      interest permitted to be charged by the Lender to Borrower under then applicable
      law, then, during such time as such rate of interest would be deemed excessive,
      that portion of each sum paid attributable to that portion of such interest
      rate
      that exceeds the maximum rate of interest so permitted shall be deemed a
      voluntary prepayment of principal of the Obligations; provided, however, that
      in
      the event there is a change in the law which results in a higher permissible
      rate of interest, then this Agreement shall be governed by such new law as
      of
      its effective date.

     

    9.16           WAIVER
      OF JURY TRIAL.  BORROWER SHALL NOT SEEK A JURY TRIAL IN ANY LAWSUIT,
      PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION ACTION INVOLVING THE LENDER
      (OR
      ANY OFFICER, TRUSTEE, EMPLOYEE OR AGENT THEREOF) BASED UPON OR ARISING OUT
      OF
      THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, OR THE DEALINGS OR THE
      RELATIONSHIP BETWEEN OR AMONG SUCH PERSONS OR ENTITIES, OR ANY OF
      THEM.  BORROWER WILL NOT SEEK TO CONSOLIDATE ANY ACTION IN WHICH A
      JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT
      OR
      HAS NOT BEEN WAIVED.  ANY COURT PROCEEDINGS RELATING TO THIS AGREEMENT
      OR ANY OTHER OF THE LOAN DOCUMENTS SHALL BE BROUGHT EXCLUSIVELY IN THE COURTS
      OF
      THE STATE OF NEW YORK SITTING IN NEW YORK CITY (OR THE FEDERAL COURTS LOCATED
      THEREIN).  NOTWITHSTANDING THE FOREGOING FORUM DESIGNATION, BORROWER
      AGREES THAT THE LENDER SHALL HAVE THE RIGHT TO PROCEED AGAINST BORROWER OR
      ITS
      RESPECTIVE PROPERTY IN A COURT IN ANY LOCATION TO ENABLE THE LENDER TO (1)
      OBTAIN PERSONAL JURISDICTION OVER ANY OF THEM OR (2) IN ORDER TO ENFORCE A
      JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF THE
      LENDER.  BORROWER FURTHER AGREES THAT IT WILL NOT ASSERT ANY
      PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY THE LENDER TO REALIZE
      ON
      ANY SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER
      IN FAVOR OF THE LENDER.  BORROWER WAIVES ANY OBJECTION THAT IT MAY
      HAVE TO THE LOCATION OF THE COURT IN WHICH THE LENDER HAS COMMENCED ANY
      PROCEEDING.  THE PROVISIONS OF THIS SECTION 9.16 HAVE BEEN FULLY
      DISCUSSED BY BORROWER AND THE LENDER, AND THE PROVISIONS HEREOF SHALL BE SUBJECT
      TO NO EXCEPTIONS. NO PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY
      OTHER PARTY THAT THE PROVISIONS OF THIS SECTION 9.16 WILL NOT BE FULLY ENFORCED
      IN ALL INSTANCES.

     

    (SIGNATURES
      APPEAR ON NEXT PAGE)

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    WITNESS
      the execution hereof under seal as of the day and year first above
      written.

     

    
      	 	BORROWER:	 
	 	 	 
	 	AMERICAN
              MORTGAGE ACCEPTANCE
              COMPANY	 
	 	 	 	 
	
              Date

            	
              By:
                

            	/s/ 
James
              L. Duggins	 
	 	 	Name: 
James
              L.
              Duggins 	 
	 	 	Title: 
Chief
              Executive
              Officer	 
	 	 	 	 

    

     

     

    
      	 	LENDER:	 
	 	 	 
	 	CENTERLINE
              HOLDING COMPANY	 
	 	 	 	 
	
              Date

            	
              By:
                

            	/s/ 
              Marc. D. Schnitzer 	 
	 	 	Name: 
              Marc. D. Schnitzer  	 
	 	 	Title: 
              Chief Executive Officer and Presidentex10_1.htm

    
      

    

    EXHIBIT
      10.1

     

    
      REVOLVING
        CREDIT, TERM LOAN AND SECURITY AGREEMENT

      
        

      

      
        among

      

      
        

      

      
        AIR
          METHODS CORPORATION,

      

      
        ROCKY
          MOUNTAIN HOLDINGS, L.L.C.,

      

      
        MERCY
          AIR
          SERVICE, INC., and

      

      
        LIFENET,
          INC.,

      

      
        AS
          BORROWERS

      

      
        

      

      
        

      

      
        KEYBANK
          NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT

      

      
        FOR
          THE
          LENDERS, LEAD ARRANGER AND SOLE BOOK RUNNER,

      

      
        

      

      
        LASALLE
          BANK NATIONAL ASSOCIATION, AS SYNDICATION AGENT,

      

      
        

      

      
        NATIONAL
          CITY BANK, AS DOCUMENTATION AGENT,

      

      
        

      

      
        and

      

      
        

      

      
        THE
          LENDERS PARTY HERETO

      

      
        

      

      
        

      

      
        SEPTEMBER
          17, 2007

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        TABLE
          OF
          CONTENTS

      

      
        

      

      
        	 	 	
                Page
                  No.

              
	
                ARTICLE
                  I DEFINITIONS

              	
                1

              
	
                1.1

              	
                CERTAIN
                  SPECIFIC TERMS

              	
                1

              
	
                1.2

              	
                SINGULARS
                  AND PLURALS; INTERPRETIVE PROVISIONS

              	
                13

              
	
                1.3

              	
                UCC
                  DEFINITIONS

              	
                13

              
	
                ARTICLE
                  II AMOUNTS AND TERMS OF LOANS

              	
                13

              
	
                2.1

              	
                REVOLVING
                  CREDIT

              	
                13

              
	
                2.2

              	
                TERM
                  LOAN

              	
                16

              
	
                ARTICLE
                  III LETTERS OF CREDIT

              	
                18

              
	
                3.1

              	
                AMOUNT

              	
                18

              
	
                3.2

              	
                COLLATERAL

              	
                18

              
	
                ARTICLE
                  IV INTEREST, FEES AND PAYMENT CONVENTIONS

              	
                18

              
	
                4.1

              	
                PROMISE
                  TO PAY INTEREST

              	
                18

              
	
                4.2

              	
                PROMISE
                  TO PAY FEES

              	
                19

              
	
                4.3

              	
                COMPUTATION
                  OF INTEREST AND FEES

              	
                20

              
	
                4.4

              	
                DEFICIENCY
                  ADVANCES; FAILURE TO PURCHASE PARTICIPATIONS

              	
                20

              
	
                4.5

              	
                FUNDING
                  LOSSES AND LIBOR ISSUES

              	
                21

              
	
                4.6

              	
                FUNDING
                  LOSS

              	
                22

              
	
                4.7

              	
                ACCOUNT
                  STATED

              	
                22

              
	
                ARTICLE
                  V COLLATERAL AND INDEBTEDNESS SECURED

              	
                23

              
	
                5.1

              	
                SECURITY
                  INTEREST

              	
                23

              
	
                5.2

              	
                INDEBTEDNESS
                  SECURED

              	
                24

              
	
                ARTICLE
                  VI REPRESENTATIONS AND WARRANTIES

              	
                24

              
	
                6.1

              	
                EXISTENCE

              	
                25

              
	
                6.2

              	
                CAPACITY

              	
                25

              
	
                6.3

              	
                INVENTORY

              	
                25

              
	
                6.4

              	
                TITLE
                  TO COLLATERAL

              	
                25

              
	
                6.5

              	
                ACCOUNTS

              	
                26

              
	
                6.6

              	
                EQUIPMENT

              	
                26

              
	
                6.7

              	
                PLACE
                  OF BUSINESS

              	
                26

              
	
                6.8

              	
                FINANCIAL
                  CONDITION

              	
                26

              
	
                6.9

              	
                TAXES

              	
                27

              
	
                6.10

              	
                LITIGATION

              	
                27

              
	
                6.11

              	
                ERISA
                  MATTERS

              	
                27

              
	
                6.12

              	
                ENVIRONMENTAL
                  MATTERS

              	
                28

              
	
                6.13

              	
                VALIDITY
                  OF TRANSACTION DOCUMENTS

              	
                28

              
	
                6.14

              	
                AIR
                  CARRIER CERTIFICATES

              	
                28

              
	
                6.15

              	
                NO
                  VIOLATIONS

              	
                29

              
	
                6.16

              	
                TRADEMARKS
                  AND PATENTS; OTHER INTELLECTUAL PROPERTY

              	
                29

              
	
                6.17

              	
                CONTINGENT
                  LIABILITIES

              	
                29

              
	
                6.18

              	
                COMPLIANCE
                  WITH LAWS

              	
                30

              
	
                6.19

              	
                LICENSES,
                  PERMITS, ETC

              	
                30

              
	
                6.20

              	
                LABOR
                  CONTRACTS

              	
                30

              
	
                6.21

              	
                CONSOLIDATED
                  SUBSIDIARIES

              	
                30

              
	
                6.22

              	
                CAPITALIZATION

              	
                30

              
	
                6.23

              	
                ANTI-TERRORISM
                  LAWS

              	
                30

              
	
                6.24

              	
                TRADING
                  WITH THE ENEMY

              	
                31

              
	
                6.25

              	
                DISCLOSURE

              	
                31

              

      

      
        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      
        

      

      
        	
                6.26

              	
                DELIVERY
                  OF ACQUISITION AGREEMENT

              	
                32

              
	
                ARTICLE
                  VII CERTAIN DOCUMENTS TO BE DELIVERED TO AGENT

              	
                32

              
	
                7.1

              	
                CLOSING
                  DELIVERIES

              	
                32

              
	
                7.2

              	
                ADVANCE
                  REQUIREMENTS

              	
                33

              
	
                7.3

              	
                ADDITIONAL
                  DOCUMENTS

              	
                33

              
	
                ARTICLE
                  VIII AFFIRMATIVE COVENANTS

              	
                34

              
	
                8.1

              	
                FINANCIAL
                  INFORMATION

              	
                34

              
	
                8.2

              	
                INVENTORY
                  IN POSSESSION OF THIRD PARTIES

              	
                35

              
	
                8.3

              	
                EXAMINATION
                  OF BOOKS AND RECORDS

              	
                35

              
	
                8.4

              	
                VERIFICATION
                  OF COLLATERAL

              	
                35

              
	
                8.5

              	
                TAXES

              	
                35

              
	
                8.6

              	
                LITIGATION

              	
                36

              
	
                8.7

              	
                INSURANCE

              	
                36

              
	
                8.8

              	
                MAINTENANCE
                  OF EXISTENCE; GOOD STANDING; BUSINESS; NEW SUBSIDIARY.

              	
                37

              
	
                8.9

              	
                PENSION
                  REPORTS

              	
                37

              
	
                8.10

              	
                NOTICE
                  OF ADVERSE EVENT OR NON-COMPLIANCE

              	
                37

              
	
                8.11

              	
                COMPLIANCE
                  WITH ENVIRONMENTAL LAWS

              	
                37

              
	
                8.12

              	
                DEFEND
                  COLLATERAL

              	
                38

              
	
                8.13

              	
                USE
                  OF PROCEEDS

              	
                38

              
	
                8.14

              	
                COMPLIANCE
                  WITH LAWS

              	
                38

              
	
                8.15

              	
                MAINTENANCE
                  OF PROPERTY

              	
                38

              
	
                8.16

              	
                LICENSES,
                  PERMITS, ETC

              	
                38

              
	
                8.17

              	
                TRADEMARKS
                  AND PATENTS

              	
                39

              
	
                8.18

              	
                ERISA

              	
                39

              
	
                8.19

              	
                ACTIVITIES
                  OF CONSOLIDATED SUBSIDIARIES

              	
                39

              
	
                8.20

              	
                DEPOSIT
                  OF PROCEEDS OF COLLATERAL

              	
                39

              
	
                8.21

              	
                GOVERNMENT
                  RECEIVABLES

              	
                39

              
	
                ARTICLE
                  IX NEGATIVE COVENANTS

              	
                40

              
	
                9.1

              	
                LOCATION
                  OF INVENTORY, EQUIPMENT, AND BUSINESS RECORDS

              	
                40

              
	
                9.2

              	
                BORROWED
                  MONEY

              	
                40

              
	
                9.3

              	
                SECURITY
                  INTEREST AND OTHER ENCUMBRANCES

              	
                40

              
	
                9.4

              	
                USE
                  OF COLLATERAL

              	
                40

              
	
                9.5

              	
                MERGERS,
                  CONSOLIDATIONS, SALES OR ACQUISITIONS

              	
                40

              
	
                9.6

              	
                RESTRICTED
                  PAYMENT

              	
                41

              
	
                9.7

              	
                INVESTMENTS
                  AND ADVANCES

              	
                41

              
	
                9.8

              	
                GUARANTIES

              	
                41

              
	
                9.9

              	
                NAME
                  CHANGE

              	
                41

              
	
                9.10

              	
                FINANCIAL
                  COVENANTS

              	
                42

              
	
                9.11

              	
                AGREEMENTS
                  WITH AFFILIATES

              	
                42

              
	
                9.12

              	
                ANTI-TERRORISM
                  LAWS

              	
                42

              
	
                9.13

              	
                TRADING
                  WITH THE ENEMY ACT

              	
                43

              
	
                9.14

              	
                ADDITIONAL
                  AGREEMENTS

              	
                43

              
	
                ARTICLE
                  X EVENTS OF DEFAULT

              	
                43

              
	
                10.1

              	
                EVENTS
                  OF DEFAULT

              	
                43

              
	
                10.2

              	
                EFFECTS
                  OF AN EVENT OF DEFAULT

              	
                45

              
	
                ARTICLE
                  XI APPOINTMENT AND AUTHORIZATION OF AGENT

              	
                46

              
	
                11.1

              	
                APPOINTMENT
                  AND AUTHORIZATION

              	
                46

              
	
                11.2

              	
                AGENT
                  AND AFFILIATES

              	
                46

              
	
                11.3

              	
                ACTION
                  BY AGENT

              	
                46

              
	
                11.4

              	
                CONSULTATION
                  WITH EXPERTS

              	
                46

              

      

      
        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

      

      
        	
                11.5

              	
                LIABILITY
                  OF AGENT

              	
                47

              
	
                11.6

              	
                INDEMNIFICATION

              	
                47

              
	
                11.7

              	
                CREDIT
                  DECISION

              	
                47

              
	
                11.8

              	
                SUCCESSOR
                  AGENT

              	
                47

              
	
                11.9

              	
                ASSIGNMENT
                  BY LENDERS

              	
                48

              
	
                ARTICLE
                  XII AGENT'S RIGHTS AND REMEDIES

              	
                48

              
	
                12.1

              	
                GENERALLY

              	
                48

              
	
                12.2

              	
                NOTIFICATION
                  OF ACCOUNT DEBTORS

              	
                48

              
	
                12.3

              	
                POSSESSION
                  OF COLLATERAL

              	
                48

              
	
                12.4

              	
                COLLECTION
                  OF RECEIVABLES

              	
                48

              
	
                12.5

              	
                LICENSE
                  TO USE PATENTS, TRADEMARKS, AND TRADE NAMES

              	
                49

              
	
                12.6

              	
                PERFECTING
                  THE SECURITY INTEREST; PROTECTING THE COLLATERAL

              	
                49

              
	
                12.7

              	
                PERFORMANCE
                  OF BORROWERS' DUTIES

              	
                49

              
	
                12.8

              	
                NOTICE
                  OF SALE

              	
                49

              
	
                12.9

              	
                WAIVER
                  BY LENDERS

              	
                49

              
	
                12.10

              	
                WAIVER
                  BY BORROWERS

              	
                49

              
	
                12.11

              	
                SETOFF

              	
                50

              
	
                ARTICLE
                  XIII MISCELLANEOUS

              	
                50

              
	
                13.1

              	
                EXPENSES

              	
                50

              
	
                13.2

              	
                LENDERS'
                  CONSENTS, WAIVERS AND AMENDMENTS

              	
                50

              
	
                13.3

              	
                ASSIGNMENT

              	
                50

              
	
                13.4

              	
                SUCCESSORS
                  AND ASSIGNS

              	
                51

              
	
                13.5

              	
                MODIFICATION

              	
                51

              
	
                13.6

              	
                COUNTERPARTS;
                  FACSIMILES

              	
                51

              
	
                13.7

              	
                GENERALLY
                  ACCEPTED ACCOUNTING PRINCIPLES

              	
                51

              
	
                13.8

              	
                INDEMNIFICATION

              	
                51

              
	
                13.9

              	
                TERMINATION

              	
                52

              
	
                13.10

              	
                FURTHER
                  ASSURANCES

              	
                53

              
	
                13.11

              	
                HEADINGS

              	
                53

              
	
                13.12

              	
                CUMULATIVE
                  SECURITY INTEREST, ETC

              	
                53

              
	
                13.13

              	
                LENDER'S
                  DUTIES

              	
                53

              
	
                13.14

              	
                NOTICES
                  GENERALLY

              	
                53

              
	
                13.15

              	
                SEVERABILITY

              	
                53

              
	
                13.16

              	
                INCONSISTENT
                  PROVISIONS

              	
                54

              
	
                13.17

              	
                ENTIRE
                  AGREEMENT

              	
                54

              
	
                13.18

              	
                APPLICABLE
                  LAW

              	
                54

              
	
                13.19

              	
                CONSENT
                  TO JURISDICTION

              	
                54

              
	
                13.20

              	
                JURY
                  TRIAL WAIVER

              	
                54

              
	
                13.21

              	
                NO
                  ORAL AGREEMENTS

              	
                55

              
	
                13.22

              	
                CONFIDENTIALITY

              	
                55

              
	
                13.23

              	
                USA
                  PATRIOT ACT NOTICE

              	
                56

              
	
                13.24

              	
                JOINT
                  AND SEVERAL OBLIGATIONS

              	
                56

              

      

      
        

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            Schedules

          

           

          
            	
                    
                      1

                    

                  	
                    
                      -

                    

                  	
                    
                      CJ
                        Borrowers

                    

                  
	
                    
                      2

                    

                  	
                    
                      -

                    

                  	
                    
                      Unencumbered
                        Aircraft

                    

                  
	
                    
                      5.1(d)

                    

                  	
                    
                      -

                    

                  	
                    
                      Trademarks,
                        Patents, etc.

                    

                  
	
                    
                      6.3

                    

                  	
                    
                      -

                    

                  	
                    
                      Location
                        of Inventory and Equipment

                    

                  
	
                    
                      6.4

                    

                  	
                    
                      -

                    

                  	
                    
                      Existing
                        Liens

                    

                  
	
                    
                      6.6

                    

                  	
                    
                      -

                    

                  	
                    
                      Mortgages
                        and Leases

                    

                  
	
                    
                      6.7

                    

                  	
                    
                      -

                    

                  	
                    
                      Location
                        of Books and Records

                    

                  
	
                    
                      6.9

                    

                  	
                    
                      -

                    

                  	
                    
                      Unpaid
                        Taxes

                    

                  
	
                    
                      6.10

                    

                  	
                    
                      -

                    

                  	
                    
                      Litigation

                    

                  
	
                    
                      6.12

                    

                  	
                    
                      -

                    

                  	
                    
                      Storage
                        Tanks

                    

                  
	
                    
                      6.14

                    

                  	
                    
                      -

                    

                  	
                    
                      Air
                        Carrier Certificates

                    

                  
	
                    
                      6.20

                    

                  	
                    
                      -

                    

                  	
                    
                      Labor
                        Issues

                    

                  
	
                    
                      6.21

                    

                  	
                    
                      -

                    

                  	
                    
                      Consolidated
                        Subsidiaries

                    

                  
	
                    
                      6.22

                    

                  	
                    
                      -

                    

                  	
                    
                      Capitalization

                    

                  
	
                    
                      8.7

                    

                  	
                    
                      -

                    

                  	
                    
                      Insurance

                    

                  
	
                    
                      9.2

                    

                  	
                    
                      -

                    

                  	
                    
                      Certain
                        Debt

                    

                  
	
                    
                      9.7

                    

                  	
                    
                      -

                    

                  	
                    
                      Certain
                        Investments

                    

                  
	
                    
                      9.8

                    

                  	
                    
                      -

                    

                  	
                    
                      Guaranties

                    

                  

          

          
            

          

          
            Exhibits

          

          
            

          

          
            
              	
                      A

                    	
                      List
                        of Lenders

                    

            

          

          
            
              	
                      B

                    	
                      Form
                        of Revolving Note

                    

            

          

          
            
              	
                      C

                    	
                      Form
                        of Term Note

                    

            

          

          
            
              	
                      D

                    	
                      Applicable
                        Margin

                    

            

          

          
            
              	
                      E

                    	
                      Financial
                        Statements Certification

                    

            

          

          
            
              	
                      F

                    	
                      Compliance
                        Certificate

                    

            

          

          
            
              	
                      G

                    	
                      Assignment
                        and Acceptance Agreement

                    

            

          

          
            
              	
                      H

                    	
                      Borrowing
                        Notice

                    

            

          

          
            
              	
                      I

                    	
                      Interest
                        Period Notice

                    

            

          

          
            
              	
                      J

                    	
                      LIBOR
                        Rate Notice

                    

            

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
            REVOLVING
              CREDIT, TERM LOAN AND SECURITY AGREEMENT

          

          
             

            This
              REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT (this "Agreement"),
              dated as
              of September 17, 2007, is by and among AIR METHODS CORPORATION, a Delaware
              corporation ("AMC"), ROCKY MOUNTAIN HOLDINGS, L.L.C., a Delaware limited
              liability company, MERCY AIR SERVICE, INC., a California corporation,
              and
              LIFENET, INC., a Missouri corporation, as borrowers and debtors and,
              following
              the completion of the transactions contemplated by the Acquisition
              Agreement (as
              hereinafter defined), the entities identified on Schedule 1 hereto
              (the
              "Borrowers") (each individually a "Borrower" and collectively, the
              "Borrowers"),
              KEYBANK NATIONAL ASSOCIATION, a national banking association, as a
              Lender, as
              lead arranger, sole book runner and administrative agent ("KeyBank"
              or "Agent"),
              LASALLE BANK NATIONAL ASSOCIATION, as a Lender and as syndication agent,
              NATIONAL CITY BANK, as a Lender and as documentation agent, and the
              other
              LENDERS (as hereinafter defined).

          

          
             

            RECITALS

          

          
             

            A.           Borrowers
              and the Lenders have agreed to enter into this Agreement to establish
              a
              revolving credit facility pursuant to which the Lenders will provide
              funding to
              Borrowers in an aggregate principal amount equal to the Total Revolving
              Credit
              Commitment (the "Revolving Facility") and to establish a term loan
              in an
              aggregate principal amount equal to the Term Loan Amount (the "Term
              Facility").

          

          
             

            B.           The
              Lenders are willing to make available the credit facilities provided
              for herein
              based on the representations, warranties, covenants, terms and conditions
              set
              forth herein.

          

          
             

            AGREEMENT

          

          
             

            The
              parties agree as follows:

          

          
             

            ARTICLE
              I
              DEFINITIONS

          

          
             

            
              	
                    	
                      1.1

                    	
                      CERTAIN
                        SPECIFIC TERMS.

                    

            

          

          
             

            For
              purposes of this Agreement, the following terms shall have the following
              meanings:

          

          
             

            "ACCOUNT"
              means any account receivable, including any rights of payment for goods
              sold or
              leased or for services rendered, which is not evidenced by an instrument
              (as
              defined in the UCC) or chattel paper, whether or not it has been earned
              by
              performance and, in addition, includes all property included in the
              definition
              of "accounts" as used in the UCC together with any guaranties, letters
              of credit
              and other security therefor.

          

          
             

            "ACCOUNT
              DEBTOR" means a Person who is obligated under any Account, general
              intangible,
              chattel paper or instrument.

             

          

          
            "ACQUISITION
              AGREEMENT" means that certain Stock Purchase Agreement dated July 31,
              2007 among
              Air Methods Corporation, FSS Airholdings, Inc., and Fred S.
              Shaulis.

          

          
            
              
              

            

            
              1

              
                

              

            

            
              
              

            

          

          
            "ACQUISITION
              TERM LOAN AMOUNT" means an amount equal to Twenty-Five Million Dollars
              ($25,000,000).

          

          
             

            "ADVANCE"
              means a loan made to Borrowers by Lenders pursuant to this Agreement
              under the
              Revolving Facility.

          

          
             

            "AFFILIATE"
              means (a) any officer or director of a Person, or (b) any other Person
              that
              controls, is controlled by or is under common control with a Person
              (whether by
              contract, equity ownership or otherwise).

          

          
             

            "AGENT"
              has the meaning provided in the introductory paragraph of this Agreement,
              and
              shall include any successors to Agent.

          

          
             

            "AGREEMENT"
              means this Revolving Credit, Term Loan and Security Agreement as amended,
              extended or modified from time to time.

          

          
             

            "AIRCRAFT"
              shall mean (i) an engine-driven fixed-wing aircraft heavier than air,
              that is
              supported in flight by the dynamic reaction of the air against its
              wings or (ii)
              a rotorcraft that, for its horizontal motion, depends principally on
              its
              engine-driven rotors. Aircraft shall include any item which is incorporated
              in,
              attached to or specifically acquired by any Borrower to be used in
              connection
              with a specific Aircraft.

          

          
             

            "AMC"
              has
              the meaning provided in the introductory paragraph of this
              Agreement.

          

          
             

            "ANTI-TERRORISM
              LAWS" shall mean any laws relating to terrorism or money laundering,
              including
              Executive Order No. 13224, the USA PATRIOT Act, the laws comprising
              or
              implementing the Bank Secrecy Act, and the laws administered by the
              United
              States Treasury Department's Office of Foreign Asset Control (as any
              of the
              foregoing laws may from time to time be amended, renewed, extended,
              or
              replaced).

          

          
            

          

          
            "APPLICABLE
              COMMITMENT PERCENTAGE" means, for each Lender at any time, a fraction
              the
              numerator of which shall be such Lender's Revolving Credit Commitment
              and the
              denominator of which shall be the Total Revolving Credit Commitment,
              which
              Applicable Commitment Percentages for each Lender as of the First Closing
              Date
              are set forth in Exhibit A; provided that the Applicable Commitment
              Percentages of each Lender shall be increased or decreased to reflect
              any
              assignments to or by such Lender effected in accordance with this
              Agreement.

          

          
            

          

          
            "APPLICABLE
              MARGIN" means, initially, a LIBOR rate margin of 2.25% and a Commitment
              Fee
              margin of 0.375%. Commencing with the quarter ended December 31, 2007,
              Applicable Margin shall mean the appropriate percentages set forth
              on Exhibit
              D opposite the Total Adjusted Debt to Consolidated EBITDAR Ratio
              of
              Borrowers, which shall be determined at the end of each Fiscal Quarter
              based
              upon the financial statements required to be provided to Lenders pursuant
              to
              this Agreement.

          

          
            

          

          
            "ASSIGNMENT
              AND ACCEPTANCE" shall mean an Assignment and Acceptance Agreement in
              the form of
Exhibit G (with blanks appropriately filled in) delivered to the Agent
              in
              connection with an assignment of a Lender's interest under this Agreement
              pursuant to Section 2.1.

          

          
            
              
              

            

            
              2

              
                

              

            

            
              
              

            

          

          
             

            "AUTHORIZED
              REPRESENTATIVE" means any of the President, Chief Executive Officer,
              Chief
              Operating Officer, any Vice President or any Manager of a Borrower
              or, with
              respect to financial matters, the Chief Financial Officer, Chief Accounting
              Officer, Vice President of Finance, or any other Person expressly designated
              by
              the Board of Directors (or Managers) of a Borrower as an Authorized
              Representative of such Borrower.

          

          
             

            "BASE
              RATE" means, for any day, the rate per annum equal to the greater of
              (a) the
              Prime Rate, and (b) the Federal Funds Rate plus one-half of one percentage
              point
              (0.50%). Any change in the Base Rate due to a change in the Prime Rate
              or the
              Federal Funds Rate shall be effective on the effective date of such
              change in
              the Prime Rate or the Federal Funds Rate, as applicable.

          

          
             

            "BASE
              RATE ADVANCE" means an Advance that shall accrue interest based upon
              the Base
              Rate.

          

          
             

            "BASE
              RATE LOAN" means a Term Loan that shall accrue interest based upon
              the Base
              Rate.

          

          
             

            "BLOCKED
              ACCOUNTS" has the meaning provided in Section 8.20.

          

          
             

            "BLOCKED
              PERSON" has the meaning provided in Section 6.23(b).

          

          
             

            "BORROWER"
              and "BORROWERS" have the meaning provided in the introductory paragraph
              of this
              Agreement.

          

          
             

            "BORROWING
              NOTICE" means a request for an Advance (or a conversion or continuation
              of an
              interest rate) under the Revolving Line of Credit and, if written,
              in the form
              attached as Exhibit H.

          

          
            

          

          
            "BUSINESS
              DAY" means (a) except as expressly provided in clause (b), any day
              which is not
              a Saturday, Sunday or a day on which banks in the State are authorized
              or
              obligated by law, executive order or governmental decree to be closed,
              and (b)
              if the applicable Business Day relates to a LIBOR Rate Loan or LIBOR
              Rate
              Advance, such day must also be a day on which dealings are carried
              on in the
              London interbank market.

          

          
            

          

          
            "CHANGE
              OF CONTROL" shall mean the occurrence of an event, or series of events,
              which
              has led to (i) any "person" or "group" (as such terms are used in sections
              13(d)
              and 14(d) of the Securities Exchange Act of 1934) becoming the "beneficial
              owner" (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange
              Act of
              1934), directly or indirectly, of capital stock of AMC representing
              more than
              51% of the voting interest of the then outstanding capital stock of
              AMC, or (ii)
              during any period commencing on or after the First Closing Date, individuals
              who
              at the beginning of such period were directors of AMC, together with
              such
              directors as have been duly approved by individuals who were directors
              at the
              beginning of such period (or by directors duly approved by them), ceasing
              for
              any reason to constitute a majority of the board of directors of
              AMC.

          

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

          
            "COLLATERAL"
              means collectively all of the property of Borrowers subject to the
              Security
              Interest and described in Sections 5.1 and 5.2.

          

          
             

            "CONSOLIDATED
              EBITDAR" means, with respect to the Borrowers and their Consolidated
              Subsidiaries for any twelve-month period (or other applicable period,
              if
              appropriate) ending on the date of computation thereof, the sum of,
              without
              duplication, (a) net income or loss (exclusive of any extraordinary
              gains or
              losses), (b) Consolidated Interest Expense, (c) income tax expense,
              (d)
              amortization expense, (e) depreciation expense, (f) share-based options
              expensed
              pursuant to FAS 123R, and (g) all rents paid during the period with
              respect to
              operating leases plus any unfavorable lease amortization.

          

          
             

            "CONSOLIDATED
              INTEREST EXPENSE" means, with respect to any period of computation
              thereof, the
              net interest expense of the Borrowers and their Consolidated Subsidiaries,
              including without limitation the portion of any payments made in connection
              with
              capital leases allocable to interest expense, all determined on a consolidated
              basis in accordance with GAAP.

          

          
             

            "CONSOLIDATED
              SUBSIDIARY" means any corporation, limited liability company, partnership
              or
              other entity of which more than fifty percent (50%) of the voting power
              is
              controlled by a Borrower, directly or indirectly, through one or more
              intermediaries, whether existing on the date hereof or acquired at
              any time
              hereafter. If Borrowers have no Consolidated Subsidiaries, the provisions
              of
              this Agreement relating to Consolidated Subsidiaries shall be inapplicable
              without affecting the applicability of such provisions to Borrowers
              alone.

          

          
             

            "CURRENT
              TAX PROVISION" means, with respect to any period of computation thereof,
              taxes
              paid or payable in cash.

          

          
             

            "DEBT"
              means with respect to the Borrowers and their Consolidated Subsidiaries
              (a)
              indebtedness for borrowed money or for the deferred purchase price
              of property
              or services (other than trade or other accounts payable in the ordinary
              course
              of business), including performance bonds or other debt instruments,
              (b)
              obligations as lessee under capital leases to the extent that the obligation
              shall have been or should be, in accordance with GAAP, recorded as
              a liability
              on the Borrowers' balance sheet, and (c) obligations under direct or
              indirect
              guaranties in respect of, and obligations (contingent or otherwise)
              to purchase
              or otherwise acquire, or otherwise assure a creditor against loss in
              respect of,
              indebtedness or obligations of the kinds referred to in clause (a)
              or (b)
              above.

          

          
             

            "DEFAULT"
              means any event or condition which, with the giving or receipt of notice
              or
              lapse of time or both, would constitute an Event of Default
              hereunder.

          

          
             

            "DEFAULT
              RATE" means, with respect to the Revolving Facility and the Term Facility,
              a
              rate of interest per annum which shall be two percent (2%) above the
              interest
              rate effective immediately before any Event of Default, and in any
              case, the
              maximum interest rate permitted by applicable law, if
              lower.

          

          
             

            "DEFICIENCY
              ADVANCE" has the meaning provided in Section 4.4.

          

          
            

          

          
            "DEPOSITORY
              ACCOUNTS" has the meaning provided in Section 8.20.

          

          
            
              
              

            

            
              4

              
                

              

            

            
              
              

            

          

          
            "DISPOSAL"
              means the intentional or unintentional abandonment, discharge, deposit,
              injection, dumping, spilling, leaking, storing, burning, thermal destruction,
              or
              placing of any Hazardous Substance so that it or any of its constituents
              may
              enter the Environment.

          

          
             

            "ELIGIBLE
              ASSIGNEE" means (a) a Lender, (b) an Affiliate of a Lender, and (c)
              any other
              Person approved by the Agent and, unless an Event of Default has occurred
              and is
              continuing at the time any assignment is effected in accordance with
              Section
              11.9, Borrowers, such approval not to be unreasonably withheld or delayed
              by the
              Borrowers and such approval to be deemed given by the Borrowers in
              the absence
              of written notification of such disapproval within five (5) Business
              Days of the
              Borrowers being informed of such assignment.

          

          
             

            "ENVIRONMENT"
              means any water including, but not limited to, surface water and ground
              water or
              water vapor; any land including land surface or subsurface; stream
              sediments;
              air; fish; wildlife; plants; and all other natural resources or environmental
              media.

          

          
             

            "ENVIRONMENTAL
              LAWS" means all applicable federal, state, and local environmental,
              land use,
              zoning, health, chemical use, safety and sanitation laws, statutes,
              ordinances,
              regulations, codes, and rules relating to the protection of the Environment
              and/or governing the use, storage, treatment, generation, transportation,
              processing, handling, production, or disposal of Hazardous Substances
              and the
              policies, guidelines, procedures, interpretations, decisions, orders,
              and
              directives of federal, state, and local governmental agencies and authorities
              with respect thereto which have the force of law.

          

          
             

            "ENVIRONMENTAL
              PERMITS" means all licenses, permits, approvals, authorizations, consents,
              or
              registrations required by any applicable Environmental Laws and all
              applicable
              judicial and administrative orders in connection with ownership, lease,
              purchase, transfer, closure, use, and/or operation of any property
              owned,
              leased, or operated by a Borrower or any Consolidated Subsidiary and/or
              as may
              be required for the storage, treatment, generation, transportation,
              processing,
              handling, production, or disposal of Hazardous Substances.

          

          
             

            "ENVIRONMENTAL
              QUESTIONNAIRE" means a questionnaire and all attachments thereto concerning
              (a)
              activities and conditions affecting the Environment at any property
              owned,
              leased or operated by any Borrower or any Consolidated Subsidiary,
              or (b) the
              enforcement or possible enforcement of any Environmental Law against
              any
              Borrower or any Consolidated Subsidiary.

          

          
             

            "ENVIRONMENTAL
              REPORT" means a written report prepared for Lenders by an environmental
              consulting or environmental engineering firm.

          

          
             

            "ERISA"
              means the Employee Retirement Income Security Act of 1974, as amended
              from time
              to time.

          

          
             

            "EVENT
              OF
              DEFAULT" means an Event of Default or Events of Default as defined
              in Article
              X.

          

          
             

            "FAA"
              means the U.S. Federal Aviation Administration or any successor
              agency.

          

          
            

          

          
            "FACILITY"
              means the Revolving Facility and the Term Facility.

          

          
            
              
              

            

            
              5

              
                

              

            

            
              
              

            

          

          
            "FEDERAL
              BANKRUPTCY CODE" means Title 11 of the United States Code, entitled
              "Bankruptcy," as amended, or any successor federal bankruptcy
              law.

          

          
             

            "FEDERAL
              FUNDS RATE" means, for any day, the rate per annum 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 as so published on the next succeeding Business Day, and
              (b) if no
              such rate is so published, the rate as determined by Agent based on
              the average
              of the quotations for such day on such transactions received by the
              Agent from
              three lending federal funds brokers of recognized national standing
              selected by
              the Agent.

          

          
             

            "FIRST
              CLOSING DATE" means the date on which all Transaction Documents have
              been
              executed and delivered to and accepted by Lenders and all conditions
              precedent
              to funding have been satisfied, including those set forth in Section
              7.1(a).

          

          
             

            "FISCAL
              QUARTER" means each quarter of the Borrowers' Fiscal
              Year.

          

          
             

            "FISCAL
              YEAR" means the twelve month fiscal period of the Borrowers and their
              Consolidated Subsidiaries commencing on January 1 of each calendar
              year and
              ending on December 31 of each calendar year.

          

          
             

            "FIXED
              CHARGE COVERAGE RATIO" means (a) Operating Cash Flow divided by (b)
              Fixed
              Charges.

          

          
            

          

          
            "FIXED
              CHARGES" means, with respect to the Borrowers and the Consolidated
              Subsidiaries
              for any twelve-month period ending on the date of computation thereof,
              the sum,
              without duplication, of (a) Consolidated Interest Expense, (b) Scheduled
              Debt
              Payments, (c) all rents paid during the period with respect to operating
              leases
              plus any unfavorable lease amortization, and (d) Restricted Payments
              made during
              the period.

          

          
             

            "FRAUDULENT
              TRANSFER LAWS" has the meaning provided in Section 13.24(d).

          

          
             

            "FUNDING
              LOSSES" means any actual loss or expense that any Lender reasonably
              incurs
              because (a) Borrowers fail or refuse (for any reason whatsoever, other
              than a
              default by the Lender claiming such loss or expense) to take or convert
              any
              Advance, Term Loan or other loan that it has requested under this Agreement,
              or
              (b) Borrowers pay any LIBOR Rate Advance or LIBOR Rate Loan or convert
              any LIBOR
              Rate Advance or LIBOR Rate Loan to a Base Rate Advance or a Base Rate
              Loan, in
              each case, before the last day of the applicable Interest
              Period.

          

          
            

          

          
            "GAAP"
              means generally accepted accounting principles in the United States
              of America,
              being those principles of accounting set forth in pronouncements of
              the
              Financial Accounting Standards Board, the American Institute of Certified
              Public
              Accountants, or which have other substantial authoritative support
              and are
              applicable as of the date of a report, consistently applied during
              the
              applicable periods.

          

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

          
            "HAZARDOUS
              SUBSTANCES" means any explosives, radon, radioactive materials, asbestos,
              urea
              formaldehyde foam insulation, polychlorinated biphenyls, petroleum
              and petroleum
              products, methane, hazardous materials, hazardous wastes, hazardous
              or toxic
              substances, and any other material defined as a hazardous substance
              in Section
              101(14) of the Comprehensive Environmental Response, Compensation and
              Liability
              Act of 1980, 42 U.S.C. Section 9601(14).

          

          
             

            "INDEBTEDNESS"
              means the indebtedness evidenced by the Revolving Notes and the Term
              Notes,
              secured by the Security Interest described in Article V. together with
              all other amounts due, or which may become due, under the Transaction
              Documents.

          

          
             

            "INDEMNIFIED
              LIABILITIES" has the meaning provided in Section 13.8(c) of this
              Agreement.

          

          
             

            "INTEREST
              PERIOD" means the period of one (1), two (2), three (3) or six (6)
              months
              selected by Borrowers for any LIBOR Rate Advance or LIBOR Rate Loan.
              Whenever
              the last day of an Interest Period would otherwise occur on a day other
              than a
              Business Day, the last day of such Interest Period shall occur on the
              preceding
              Business Day.

          

          
             

            "INTEREST
              PERIOD NOTICE" means notice of the choice of an Interest Period in
              the form of
Exhibit I.

          

          
             

            "INVENTORY"
              means inventory, as defined in the UCC as in effect as of the date
              of this
              Agreement, and in any event shall include returned or repossessed
              goods.

          

          
             

            "ISSUING
              BANK" means KeyBank.

          

          
             

            "KEYBANK"
              has the meaning provided in the introductory paragraph of this
              Agreement.

          

          
             

            "LENDERS"
              means, without duplication, KeyBank and the other Persons listed on
Exhibit
              A of this Agreement and any successors or Eligible Assignees of
              each
              Lender.

          

          
             

            "LETTER
              OF CREDIT" means a trade, commercial or standby letter of credit issued
              by the
              Issuing Bank pursuant to Article III hereof for the account of the
              Borrowers in favor of a Person advancing credit or securing an obligation
              on
              behalf of the Borrowers. The amount of any Letter of Credit shall be
              considered
              an Advance and part of the Revolving Facility.

          

          
             

            "LETTER
              OF CREDIT COMMITMENT" means, with respect to each Lender, the obligation
              of such
              Lender to acquire Participations in respect of Letters of Credit and
              Reimbursement Obligations up to an aggregate amount at any one time
              outstanding
              equal to such Lender's Applicable Commitment Percentage of the Total
              Letter of
              Credit Commitment, as the same may be increased or decreased from time
              to time
              pursuant to this Agreement.

          

          
            

          

          
            "LETTER
              OF CREDIT OUTSTANDINGS" means, as of the date of determination, the
              aggregate
              amount available to be drawn under all outstanding Letters of Credit
              plus
              Reimbursement Obligations then outstanding.

          

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

          
            "LIBOR
              RATE" means, with respect to the Interest Period selected for any LIBOR
              Rate
              Advance or LIBOR Rate Loan, (a) the annual interest rate (rounded upwards
              to the
              next one sixteenth of one percent) determined by Agent in accordance
              with its
              general practices at which deposits in United States Dollars are offered
              at
              11:00 a.m. (London, England time) or as soon thereafter as is reasonably
              practicable by prime banks in the London Interbank Eurodollar Market
              two
              Business Days prior to the first day of the Interest Period for such
              LIBOR Rate
              Advance or LIBOR Rate Loan in an amount and maturity of such LIBOR
              Rate Advance
              or LIBOR Rate Loan, divided by (b) the remainder of 1.00 minus the
              LIBOR Reserve Requirement in effect two Business Days prior to the
              first day of
              such Interest Period, plus (c) the Applicable
              Margin.

          

          
             

            "LIBOR
              RATE ADVANCE" means an Advance that shall accrue interest based upon
              the LIBOR
              Rate for the applicable Interest Period.

          

          
             

            "LIBOR
              RATE LOAN" means a Term Loan that shall accrue interest based upon
              the LIBOR
              Rate for the applicable Interest Period.

          

          
             

            "LIBOR
              RATE NOTICE" means notice of a conversion of a Base Rate Loan to a
              LIBOR Rate
              Loan in the form of Exhibit J.

          

          
             

            "LIBOR
              RESERVE REQUIREMENT" means the percentage (expressed as a decimal fraction)
              provided by the Board of Governors of the Federal Reserve System (or
              any
              successor governmental body) on the date of determination for ascertaining
              the
              reserve requirements (including, without limitation, basic, supplemental,
              marginal and emergency reserves) under Regulation D with respect to
              Eurocurrency
              fundings, and requirements under any similar or replacement
              regulations.

          

          
             

            "LIEN"
              means any mortgage, deed of trust, pledge, hypothecation, assignment, security
              interest, lien (whether statutory or otherwise), charge, claim or encumbrance,
              or preference, priority or other security agreement or preferential
              arrangement
              held or asserted in respect of any asset of any kind or nature whatsoever,
              including any conditional sale or other title retention agreement,
              any lease
              having substantially the same economic effect as any of the foregoing,
              and the
              filing of, or agreement to give, any financing statement under the
              UCC or
              comparable law of any jurisdiction.

          

          
             

            "MATERIAL
              ADVERSE EFFECT" means a material adverse effect on (a) the business,
              properties,
              operations or condition, financial or otherwise, of the Borrowers and
              their
              Consolidated Subsidiaries, taken as a whole, (b) the ability of the
              Borrowers
              and their Consolidated Subsidiaries taken as a whole to pay the Indebtedness
              or
              perform their obligations under the Transaction Documents as such payment
              or
              performance becomes due in accordance with the terms thereof, or (c)
              the rights,
              powers and remedies of the Agent or any Lender under the Transaction
              Documents
              or the validity, legality or enforceability thereof.

          

          
             

            "MATERIAL
              DEBT AGREEMENTS" has the meaning provided in Section 10.1(g).

          

          
            

          

          
            "NOTES"
              means all Term Notes and all Revolving Notes.

          

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

          

          
            "OPERATING
              CASH FLOW" means, with respect to the Borrowers and the Consolidated
              Subsidiaries for any period of computation thereof, the difference,
              without
              duplication, of (a) Consolidated EBITDAR, less (b) Current Tax Provision,
              less
              (c) Unfinanced Capital Expenditures, in each case for the twelve-month
              period
              ending on the date of computation.

          

          
             

            "PARTICIPATION"
              means with respect to any Lender (other than the Issuing Bank) with
              respect to a
              Letter of Credit, the extension of credit represented by the participation
              of
              such Lender hereunder in the liability of the Issuing Bank in respect
              of a
              Letter of Credit issued by the Issuing Bank in accordance with the
              terms
              hereof.

          

          
             

            "PENSION
              EVENT" means, with respect to any Pension Plan, the occurrence of (a)
              any
              nonexempt prohibited transaction described in Section 406 of ERISA
              or in Section
              4975 of the Internal Revenue Code; (b) any Reportable Event for which
              there is
              no regulatory waiver; (c) any complete or partial withdrawal, or proposed
              complete or partial withdrawal, of any Borrower or any Consolidated
              Subsidiary
              from such Pension Plan; (d) any complete or partial termination, or
              proposed
              complete or partial termination, of such Pension Plan; or (e) any accumulated
              funding deficiency (whether or not waived), as defined in Section 302
              of ERISA
              or in Section 412 of the Internal Revenue Code.

          

          
             

            "PENSION
              PLAN" means any pension plan, as defined in Section 3(2) of ERISA,
              which is a
              multi-employer plan or a single employer plan, as defined in Section
              4001 of
              ERISA, and subject to Title IV of ERISA and which is (a) a plan maintained
              by
              any Borrower or any Consolidated Subsidiary for employees or former
              employees of
              Borrowers or of any Consolidated Subsidiary; (b) a plan to which any
              Borrower or
              any Consolidated Subsidiary contributes or is required to contribute;
              (c) a plan
              to which any Borrower or any Consolidated Subsidiary was required to
              make
              contributions at any time during the five (5) calendar years preceding
              the date
              of this Agreement; or (d) any other plan with respect to which any
              Borrower or
              any Consolidated Subsidiary has incurred or may incur liability, including,
              without limitation, contingent liability, under Title IV of ERISA either
              to such
              plan or to the Pension Benefit Guaranty Corporation. For purposes of
              this
              definition and the definition of Pension Event, any Borrower shall
              include any
              trade or business (whether or not incorporated) which, together with
              any
              Borrower or any Consolidated Subsidiary, is deemed to be a "single
              employer"
              within the meaning of Section 4001(b)(1) of ERISA.

          

          
             

            "PERSON"
              means an individual, partnership, organization, or
              entity.

          

          
             

            "PERMITTED
              ENCUMBRANCES" shall mean (a) Liens in favor of Agent for the benefit
              of Agent
              and Lenders (including Liens in favor of Agent or any Lender with respect
              to an
              interest rate swap); (b) Liens for taxes, assessments or other governmental
              charges not delinquent or being contested in good faith and by appropriate
              proceedings and with respect to which proper reserves have been taken
              by
              Borrowers; provided, that, if such taxes, assessments or other governmental
              charges are delinquent, the Lien shall have no effect on the priority
              of the
              Liens in favor of Agent or the value of the assets in which Agent has
              such a
              Lien and a stay of enforcement of any such Lien shall be in effect;
              (c) deposits
              or pledges to secure obligations under worker's compensation, social
              security or
              similar laws, or under unemployment insurance; (d) deposits or pledges
              to secure
              bids, tenders, contracts (other than contracts for the payment of money),
              leases, statutory obligations, surety and appeal bonds and other obligations
              of
              like nature arising in the ordinary course of business; (e) Liens arising
              by
              virtue of the rendition, entry or issuance against any Borrower or
              any
              Subsidiary, or any property of any Borrower or any Subsidiary, of any
              judgment,
              writ, order, or decree for so long as each such Lien (i) is in existence
              for
              less than 20 consecutive days after it first arises or is being properly
              contested and (ii) is at all times junior in priority to any Liens
              in favor of
              Agent; (f) mechanics', workers', materialmen's or other like Liens
              arising in
              the ordinary course of business with respect to obligations which are
              not due or
              which are being contested in good faith by the applicable Borrower;
              (g) Liens
              placed upon fixed assets now owned or hereafter acquired or leased
              to secure a
              portion of the purchase price thereof, provided that (x) any such Lien
              shall not
              encumber any other property of any Borrower and (y) the aggregate amount
              of Debt
              secured by such Liens incurred as a result of such purchases shall
              at no time
              exceed the amount provided for in Section 9.2; (h) Liens disclosed
              on Schedule
              6.4 and Schedule 6.6; (i) statutory or common law landlord's Liens
              to secure
              payment of rent so long as, with respect to the 7301 South Peoria,
              Englewood,
              Colorado location (the "Denver Facility"), such Lien is subordinated
              to the
              Liens in favor of Agent on terms reasonably acceptable to Agent; (j)
              Liens on
              Aircraft, other than Unencumbered Aircraft, securing aircraft indebtedness;
              (k)
              mortgages on Borrowers' facility in St. Louis, Missouri and the Denver
              Facility
              (once the interest in such facility is purchased by a Borrower), provided
              that
              the Debt secured by such mortgages does not subject any Borrower or
              its
              Subsidiaries to any financial covenants, and (1) Liens on assets acquired
              in a
              transaction permitted by Section 9.5.

            
              
                
                   

                  
                    
                      
                      

                    

                    
                      9

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                

                
                  "PRE-ACQUISITION
                    TERM LOAN AMOUNT" means an amount equal to Twenty-Five Million
                    Dollars
                    ($25,000,000).

                

                
                  

                

                
                  "PRIME
                    RATE" means the rate of interest from time to time publicly announced
                    by the
                    Agent as its "prime rate". The Agent may lend to its customers
                    at rates that are
                    at, above or below the Prime Rate. For purposes of determining
                    any interest rate
                    hereunder or under any other Transaction Document that is based
                    on the Prime
                    Rate, such interest rate shall change as and when the Prime Rate
                    changes.

                

                
                  

                

                
                  "REIMBURSEMENT
                    OBLIGATION" shall mean, at any time, the obligation of the Borrowers
                    with
                    respect to any Letter of Credit to reimburse the Issuing Bank
                    and the Lenders to
                    the extent of their respective Participations (including by the
                    receipt by the
                    Issuing Bank of proceeds of loans pursuant to Article III) for amounts
                    theretofore paid by the Issuing Bank pursuant to a drawing under
                    such Letter of
                    Credit.

                

                
                  

                

                
                  "RELEASE"
                    means "release" in a reportable quantity as defined in Section
                    101(22) of the
                    Comprehensive, Environmental Response, Compensation and Liability
                    Act of 1980,
                    42 U.S.C. Section 9601(22), and the regulations promulgated
                    thereunder.

                

                
                  

                

                
                  "REPORTABLE
                    EVENT" means any event described in Section 4043(b) of ERISA
                    or in regulations
                    issued thereunder with regard to a Pension Plan.

                

                
                  

                

                
                  "REQUIRED
                    LENDERS" means, as of any date, Lenders holding at least fifty-one
                    percent (51%)
                    of all outstanding Indebtedness, and if there is no outstanding
                    Indebtedness,
                    shall mean Lenders holding at least 51% of the Revolving Credit
                    Commitments;
                    provided that, when there are only two Lenders, both Lenders,
                    on such
                    date.

                

                
                  
                    
                    

                  

                  
                    10

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  "RESTRICTED
                    PAYMENT" means (a) any dividend or other distribution, direct
                    or indirect, on
                    account of any shares of any class of stock or securities of
                    a Borrower or any
                    securities of its Consolidated Subsidiaries (other than those
                    payable or
                    distributable solely to a Borrower or a Consolidated Subsidiary
                    of a Borrower)
                    now or hereafter outstanding, except a dividend payable solely
                    in shares of
                    class of stock or securities to the holders of that class; (b)
                    any redemption,
                    conversion, exchange, retirement or similar payment, purchase
                    or other
                    acquisition for value, direct or indirect, of any shares of any
                    class of stock
                    or securities of any Borrower or of any of its Consolidated Subsidiaries
                    (other
                    than those payable or distributable solely to a Borrower) now
                    or hereafter
                    outstanding, except a payment solely in shares of capital stock
                    or securities;
                    and (c) any payment made to retire, or to obtain the surrender
                    of, any
                    outstanding warrants, options or other rights to acquire shares
                    of any class of
                    stock of any Borrower or of its Consolidated Subsidiaries now
                    or hereafter
                    outstanding.

                

                
                  

                

                
                  "REVOLVING
                    CREDIT COMMITMENT" means, with respect to each Lender, the obligations
                    of such
                    Lender to make Revolving Loans to the Borrowers up to an aggregate
                    principal
                    amount at any one time outstanding equal to such Lender's Applicable
                    Commitment
                    Percentage of the Total Revolving Credit Commitment.

                

                
                  

                

                
                  "REVOLVING
                    CREDIT MATURITY DATE" means September 1, 2012.

                

                
                  

                

                
                  "REVOLVING
                    CREDIT OUTSTANDINGS" means, as of any date of determination,
                    the aggregate
                    principal amount of all Revolving Loans then outstanding.

                

                
                  

                

                
                  "REVOLVING
                    FACILITY" has the meaning provided in the Recitals to this
                    Agreement.

                

                
                  

                

                
                  "REVOLVING
                    LINE OF CREDIT" means the revolving line of credit described
                    in Section 2.1
                    hereof and all renewals, extensions, modifications, amendments,
                    restatements and
                    substitutions thereof or therefor.

                

                
                  

                

                
                  "REVOLVING
                    LOANS" means any borrowing pursuant to an Advance under the Revolving
                    Line of
                    Credit.

                

                
                  

                

                
                  "REVOLVING
                    NOTE" has the meaning provided in Section 2.1 of this
                    Agreement.

                

                
                  

                

                
                  "SCHEDULE"
                    means any schedule executed in connection with, and which is
                    a part of, this
                    Agreement.

                

                
                  

                

                
                  "SCHEDULED
                    DEBT PAYMENTS" means, with respect to any period of computation
                    thereof, cash
                    expended during such period to make scheduled principal payments
                    on Debt,
                    excluding short-term notes secured by assets held for sale.

                

                
                  

                

                
                  "SECOND
                    CLOSING DATE" means the date on which all conditions to funding
                    the Acquisition
                    Term Loan Amount have been satisfied, including those set forth
                    in Section
                    7.1(b).

                

                
                  
                    
                    

                  

                  
                    11

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  "SECURITY
                    INTEREST" means the security interest granted to Lenders by Borrowers
                    as
                    described in Article V.

                

                
                  

                

                
                  "STATE"
                    means the state of Colorado.

                

                
                  

                

                
                  "TERM
                    FACILITY" has the meaning provided in the Recitals to this
                    Agreement.

                

                
                  

                

                
                  "TERM
                    LOAN" means a term loan in the amount of the Pre-Acquisition
                    Term Loan Amount
                    and, if the Acquisition Agreement is completed, the Acquisition
                    Term Loan
                    Amount, as set forth in Section 2.2.

                

                
                  

                

                
                  "TERM
                    LOAN AMOUNT" means the Pre-Acquisition Term Loan Amount plus,
                    if the Acquisition
                    Agreement is completed, the Acquisition Term Loan Amount.

                

                
                  

                

                
                  "TERM
                    LOAN MATURITY DATE" means September 1, 2012.

                

                
                  

                

                
                  "TERM
                    NOTE" means any Term Note.

                

                
                  

                

                
                  "THIRD
                    PARTY" means any Person who has executed and delivered, or who
                    in the future may
                    execute and deliver, to Lenders any agreement, instrument, or
                    document pursuant
                    to which such Person has guaranteed to Lenders the payment of
                    the Indebtedness
                    or has granted Lenders a security interest in or lien on some
                    or all of such
                    Person's real or personal property to secure the payment of the
                    Indebtedness.

                

                
                  

                

                
                  "TOTAL
                    ADJUSTED DEBT" means, with respect to the Borrowers and their
                    Consolidated
                    Subsidiaries at any date of computation, (i) all Debt, less (ii)
                    short term
                    notes payable secured by assets held for sale, plus (iii) the
                    product of six (6)
                    times (A) all rents paid by such persons during the four (4)
                    Fiscal Quarters
                    ending with the date of computation with respect to operating
                    leases plus (B)
                    any unfavorable lease amortization.

                

                
                  

                

                
                  "TOTAL
                    ADJUSTED DEBT TO EBITDAR RATIO" means (a) Total Adjusted Debt
                    at the end of a
                    Fiscal Quarter divided by (b) Consolidated EBITDAR for the twelve-month
                    period
                    ending on such Fiscal Quarter end.

                

                
                  

                

                
                  "TOTAL
                    LETTER OF CREDIT COMMITMENT" means an amount not to exceed Five
                    Million Dollars
                    ($5,000,000).

                

                
                  

                

                
                  "TOTAL
                    REVOLVING CREDIT COMMITMENT" means a principal amount equal to
                    Fifty Million
                    Dollars ($50,000,000).

                

                
                  

                

                
                  "TRADING
                    WITH THE ENEMY ACT" shall mean the foreign assets control regulations
                    of the
                    United States Treasury Department (31 CFR, Subtitle B, Chapter
                    V, as amended)
                    and any enabling legislation or executive order relating
                    thereto.

                

                
                  

                

                
                  "TRANSACTION
                    DOCUMENTS" means this
                    Agreement, the Notes and all other agreements
                    and documents, including,
                    without limitation, collateral documents, letter of credit agreements,
                    acceptance credit
                    agreements, security agreements, pledges, guaranties,assignments,
                    and subordination
                    agreements now or hereafter required to be executed by any Borrower
                    or any Third
                    Party.

                

                
                  
                    
                    

                  

                  
                    12

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  

                

                
                  "UCC"
                    means the uniform commercial code as in effect in the State.

                

                
                  

                

                
                  "UNFINANCED
                    CAPITAL EXPENDITURES" means, with respect to any period of computation
                    thereof,
                    all capital expenditures made during such period that are not
                    financed with Debt
                    (other than Debt to Lenders under this Agreement) or from net
                    proceeds from any
                    equity offering of a Borrower allowed pursuant to this
                    Agreement.

                

                
                  

                

                
                  "UNENCUMBERED
                    AIRCRAFT" shall mean all Aircraft listed on Schedule 2 hereof, which
                    Schedule may be amended from time to time by notice from Borrowers
                    to
                    Agent.

                

                
                  

                

                
                  "USA
                    PATRIOT ACT" shall mean the Uniting and Strengthening America
                    by Providing
                    Appropriate Tools Required to Intercept and Obstruct Terrorism
                    Act of 2001,
                    Public Law 107-56, as the same has been, or shall hereafter be,
                    renewed,
                    extended, amended or replaced.

                

                
                  

                

                
                  
                    	
                          	
                            1.2

                          	
                            SINGULARS
                              AND PLURALS: INTERPRETIVE
                              PROVISIONS.

                          

                  

                

                
                  

                

                
                  Unless
                    the context otherwise requires, words in the singular include
                    the plural, and in
                    the plural include the singular. The word "including" means including
                    without
                    limitation, and is used for illustrative purposes rather than
                    limiting
                    purposes.

                

                
                  

                

                
                  
                    	
                          	
                            1.3

                          	
                            UCC
                              DEFINITIONS.

                          

                  

                

                
                  

                

                
                  Unless
                    otherwise defined in Section 1.1 or elsewhere in this Agreement,
                    capitalized
                    words shall have the meanings set forth in the UCC as of the
                    date of this
                    Agreement. For purposes of this Agreement, no property shall
                    be considered
                    "operated by" a Borrower or a Consolidated Subsidiary solely
                    due to the
                    operation of landing or launching any Aircraft at or from such
                    property.

                

                
                   

                  ARTICLE
                    II

                

                
                  AMOUNTS
                    AND TERMS OF LOANS

                

                
                  

                

                
                  
                    	
                          	
                            2.1

                          	
                            REVOLVING
                              CREDIT.

                          

                  

                

                
                  

                

                
                  (a)           Amount.
                    Subject to the other terms and conditions set forth in this Agreement,
                    and as
                    evidenced by a promissory note in favor of each Lender in the
                    form of Exhibit
                    B ("Revolving Note"), the Lenders agree to make available
                    to Borrowers,
                    until the Revolving Credit Maturity Date, Advances in an aggregate
                    amount
                    outstanding at any time not to exceed the Total Revolving Credit
                    Commitment,
                    except as expressly set forth in Section 2.1(b).

                

                
                  

                

                
                  (b)           Commitment.
                    Subject to the terms and conditions of this Agreement, each Lender
                    severally
                    agrees to make Advances to the Borrowers under the Revolving
                    Credit Commitment
                    from time to time from the First Closing Date until the Revolving
                    Credit
                    Maturity Date. Such Advances shall be made on a pro rata basis
                    as to the total
                    borrowing requested by the Borrowers on any day determined by
                    such Lender's
                    Applicable Commitment Percentage up to but not exceeding the
                    Revolving Credit
                    Commitment of such Lender; provided, however, that the Lenders
                    shall have no
                    obligation to make any such Advance (i) so long as any Default
                    or an Event of
                    Default has occurred and is continuing, or (ii) if the Agent
                    has accelerated the
                    maturity of any of the Notes as a result of an Event of Default;
                    provided,
                    further, that immediately after giving effect to each such Advance,
                    the amount
                    of Revolving Credit Outstandings plus Letter of Credit Outstandings
                    shall not
                    exceed the Total Revolving Credit Commitment.

                

                
                  
                    
                    

                  

                  
                    13

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  (i)           Additional
                    Lenders. The Lenders may assign all or a portion of their Applicable
                    Commitment Percentage of this Facility, and additional Lenders
                    may join the
                    Facility from time to time by executing and delivering an appropriate
                    Assignment
                    and Acceptance to each of the Lenders and to Borrowers, and otherwise
                    complying
                    with the terms of this Agreement.

                

                
                  

                

                
                  (ii)           Expiration
                    of Revolving Facility upon Revolving Credit Maturity Date. The term
                    of the Revolving Facility will expire and all principal and interest
                    amounts
                    owed to Lenders under the Revolving Facility shall be immediately
                    due and
                    payable on the Revolving Credit Maturity Date, and Lenders shall
                    have no further
                    obligation with respect thereto after such date.

                

                
                  

                

                
                  
                    	
                          	
                            (c)

                          	
                            Advances.

                          

                  

                

                
                  

                

                
                  (i)           Requests
                    for Base Rate Advance. Any request by an Authorized Representative of the
                    Borrowers (or any other person designated in writing by an Authorized
                    Representative) for a Base Rate Advance or conversion of a LIBOR
                    Rate Advance
                    hereunder shall be by a written Borrowing Notice or by telephone
                    (if given by
                    telephone, such request must be followed by a written Borrowing
                    Notice within
                    twenty-four (24) hours thereof) and must be given on behalf of
                    the Borrowers so
                    as to be received by the Agent not later than 1:00 P.M. (Denver,
                    Colorado time)
                    on the requested date of Advance.

                

                
                  

                

                
                  (ii)           Requests
                    for LIBOR Rate Advance. Any request by an Authorized Representative of the
                    Borrowers (or any other person designated in writing by an Authorized
                    Representative) for a LIBOR Rate Advance or continuation of a
                    LIBOR Rate Advance
                    or conversion of a Base Rate Advance into a LIBOR Rate Advance
                    hereunder shall
                    be by a written Borrowing Notice or by telephone (if given by
                    telephone, such
                    request must be followed by a written Borrowing Notice within
                    twenty-four (24)
                    hours thereof) and must be given on behalf of the Borrowers so
                    as to be received
                    by the Agent no later than 1:00 P.M. (Denver, Colorado time)
                    on the third
                    Business Day prior to the requested date of disbursement, continuation
                    or
                    conversion.

                

                
                  

                

                
                  (iii)           General.
                    Each request for an Advance hereunder shall be irrevocable and
                    shall be deemed a
                    representation by the Borrowers that on the requested date of
                    such Advance and
                    after giving effect to the requested Revolving Loans the applicable
                    conditions
                    specified in Article VII have been and will be satisfied. Each request
                    for an Advance hereunder shall specify (A) the requested date
                    of Advance, (B)
                    the aggregate amount of the Advance to be made on such date which
                    shall be in
                    the minimum amounts set forth in Section 2.1(d), (C)
                    whether the Advance is to be funded as a Base Rate Advance or
                    a LIBOR Rate
                    Advance, and (D)
                    in
                    the case of a LIBOR Rate Advance, the initial Interest Period
                    applicable thereto
                    (in no event shall Borrowers request (or Agent allow) an Interest
                    Period that
                    extends beyond the Revolving Credit Maturity Date). The Agent
                    may rely on any
                    telephone request for Revolving Loans hereunder which it believes
                    in good faith
                    to be genuine; and the Borrowers hereby waive the right to dispute
                    the Agent's
                    record of the terms of such telephone request. Agent shall be
                    entitled to honor
                    any request for an Advance that it reasonably believes to be
                    genuine, whether or
                    not the Person making the request is named as an Authorized Representative
                    hereunder or in any resolution or instruction furnished to Agent
                    by Borrowers.
                    The Agent shall promptly notify each other Lender of the receipt
                    of such
                    request, the matters specified therein, and of such Lender's
                    ratable share of
                    the requested Advance. With respect to each request for a LIBOR
                    Rate Advance or
                    a conversion of a Base Rate Advance to a LIBOR Rate Advance,
                    Borrowers shall
                    indemnify Lenders against any Funding Losses. A certificate as
                    to the amount of
                    such loss submitted by Agent to Borrowers shall be conclusive
                    and binding for
                    all purposes, absent manifest error.

                

                
                  
                    
                    

                  

                  
                    14

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  (iv)           Funding
                    from Lenders. On the date of the requested Advance, each Lender shall
                    provide its share of the requested Advance to the Agent in immediately
                    available
                    funds not later than 2:30 P.M. (Denver, Colorado time). Unless
                    the Agent
                    determines that any applicable condition specified in Article VII has not
                    been satisfied, the Agent will make available to the Borrowers
                    at the Agent's
                    principal office in Denver, Colorado in immediately available
                    funds not later
                    than 3:00 P.M. (Denver, Colorado time) on the requested date
                    of Advance the
                    amount of the requested Advance. If the Agent has made an Advance
                    to the
                    Borrowers on behalf of a Lender but has not received the amount
                    of such Advance
                    from such Lender by the time herein required, such Lender shall
                    pay interest to
                    the Agent on the amount so advanced at the overnight Federal
                    Funds Rate from the
                    date of such Advance to the date funds are received by the Agent
                    from such
                    Lender, such interest to be payable with such remittance from
                    such Lender of the
                    principal amount of such Advance (provided, however, that the
                    Agent shall not
                    make any Advance on behalf of a Lender if the Agent has received
                    prior notice
                    from such Lender that it will not make such Revolving Loan).
                    If the Agent does
                    not receive payment from such Lender by the next Business Day
                    after the date of
                    any Advance, the Agent shall be entitled to recover such Advance,
                    with interest
                    thereon at the rate then applicable to the Advance, on demand,
                    from the
                    Borrowers, without prejudice to the Agent's and the Borrowers'
                    rights against
                    any such non-advancing Lender. If such Lender pays the Agent
                    the amount herein
                    required with interest at the overnight Federal Funds Rate before
                    the Agent has
                    recovered from the Borrowers, such Lender shall be entitled to
                    the interest
                    payable by the Borrowers with respect to the Advance in question
                    accruing from
                    the date the Agent made such Advance.

                

                
                  

                

                
                  (d)           Frequency
                    and Amount of Borrowings. Until the Business Day immediately prior to the
                    Revolving Credit Maturity Date (or thirty (30) Business Days
                    prior to the
                    Revolving Credit Maturity Date for a LIBOR Rate Advance), Borrowers
                    may seek a
                    disbursement under the Revolving Facility at any time and from
                    time to time and
                    in any amount; provided, however, that any request for an Advance
                    must be in the
                    minimum principal amount of $1,000,000 and in multiples of $100,000
                    above the
                    minimum principal amount.

                

                
                  

                

                
                  (e)           Repayment
                    of Principal. Borrowers promise to pay to Lenders the outstanding principal
                    of Advances under the Revolving Line of Credit in full upon the
                    earliest to
                    occur of (i) termination of this Agreement, (ii) acceleration
                    of the time for
                    payment of the Indebtedness pursuant to this Agreement, or (iii)
                    the Revolving
                    Credit Maturity Date. Subject to the provisions of this Agreement,
                    any amounts
                    borrowed under the Revolving Line of Credit may be voluntarily
                    prepaid and any
                    amounts so prepaid may be reborrowed, up to the amount available
                    under Section
                    2.1(b) above at the time of such borrowing, until the Business
                    Day immediately
                    prior to the Revolving Credit Maturity Date (or thirty (30) Business
                    Days prior
                    to the Revolving Credit Maturity Date for a LIBOR Rate Advance).
                    Borrowers shall
                    notify Lender by 1:00 p.m. on the Business Day preceding the
                    Business Day (or
                    three (3) Business Days preceding such date for a LIBOR Rate
                    Advance) of any
                    prepayment of any amounts under the Revolving Line of
                    Credit.

                

                
                  
                    
                    

                  

                  
                    15

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  (f)           Overadvances.
                    During the term of the Revolving Facility, Borrowers shall pay
                    to Agent such
                    amounts as are necessary so that the sum of the outstanding principal
                    balance of
                    the Revolving Credit Outstandings and the Letter of Credit Outstandings
                    in the
                    aggregate at any time does not exceed the Total Revolving Credit
                    Commitment at
                    such time. Borrowers shall pay such amounts within two (2) Business
                    Days after
                    the earlier of demand by Agent and the date Borrower learns of
                    any such
                    excess.

                

                
                  

                

                
                  (g)           Continuation
                    and Conversion of Interest Rate. If no Borrowing Notice has been submitted
                    to Agent not less than three (3) Business Days prior to the end
                    of any Interest
                    Period on a LIBOR Rate Advance (which shall set forth the new
                    Interest Period or
                    state that the LIBOR Rate Advance is being converted to a Base
                    Rate Advance),
                    the LIBOR Rate Advance then maturing shall be automatically continued
                    at the
                    then current LIBOR Rate for an additional Interest Period equal
                    to the expired
                    Interest Period; provided, however, that if the Revolving Credit
                    Maturity Date
                    would fall within such subsequent Interest Period or such Interest
                    Period is not
                    available for any other reason, the LIBOR Rate Advance then maturing
                    shall be
                    automatically converted to a Base Rate Advance. At any time at
                    least thirty (30)
                    days prior to the Revolving Credit Maturity Date, Borrowers may
                    request to
                    convert a Base Rate Advance to a LIBOR Rate Advance upon submission
                    of a
                    Borrowing Notice to Agent at least three (3) Business Days prior
                    to the
                    effectiveness of such conversion.

                

                
                  

                

                
                  (h)           Reductions.
                    The Borrowers shall, by notice from an Authorized Representative,
                    have the right
                    from time to time upon not less than three (3) Business Days'
                    written notice to
                    the Agent, effective upon receipt, to reduce the Total Revolving
                    Credit
                    Commitment. The Agent shall give each Lender, within one (1)
                    Business Day of
                    receipt of such notice, telefacsimile notice or telephonic notice
                    (confirmed in
                    writing) of such reduction. Each such reduction shall be in the
                    aggregate amount
                    of the lesser of (x) at least $1,000,000 or (y) the entire remaining
                    Total
                    Revolving Credit Commitment, and shall permanently reduce the
                    Total Revolving
                    Credit Commitment. Each reduction of the Total Revolving Credit
                    Commitment shall
                    be accompanied by payment to the extent that the principal amount
                    of Revolving
                    Credit Outstandings plus Letter of Credit Outstandings exceeds
                    the Total
                    Revolving Credit Commitment as reduced under this Section
                    2.1(h).

                

                
                  

                

                
                  
                    	
                          	
                            2.2

                          	
                            TERM
                              LOAN.

                          

                  

                

                
                  

                

                
                  (a)           Amount.
                    Subject to the other terms and conditions set forth in this Agreement,
                    on the
                    First Closing Date, the Lenders agree to loan to Borrowers an
                    aggregate amount
                    equal to the Pre-Acquisition Term Loan Amount, which shall be
                    evidenced by
                    promissory notes in favor of each Lender in the form of Exhibit C ("Term
                    Note"). Upon consummation of the Acquisition Agreement and subject
                    to the other
                    terms and conditions set forth in this Agreement, on the Second Closing Date,
                    the Lenders agree to loan to Borrowers an aggregate amount equal
                    to the
                    Acquisition Term Loan Amount, which shall be evidenced by Term
                    Notes in favor of
                    each Lender. In the event the conditions to funding the Acquisition
                    Term Loan
                    Amount are not met prior to December 31, 2007, the Lenders obligation
                    to fund
                    the Acquisition Term Loan Amount shall terminate and the Term
                    Loan shall consist
                    only of the Pre-Acquisition Term Loan Amount. No amounts repaid
                    by Borrowers
                    under the Term Loan may be reborrowed.

                

                
                  
                    
                    

                  

                  
                    16

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  (b)           Commitment.
                    Subject to the terms and conditions of this Agreement, each Lender
                    severally agrees to participate on a pro rata basis as to each
                    Term Loan
                    determined by

                

                
                  such
                    Lender's Applicable Commitment Percentage.

                

                
                  

                

                
                  (i)           Repayment
                    of Principal. Borrowers promise to pay to Lenders the outstanding principal
                    of the Term Loan as follows: (A) until the Term Loan Maturity
                    Date, quarterly
                    payments in the amount of, if the Second Closing Date occurs,
                    $1,785,000.00 and,
                    if the Second Closing Date does not occur, $892,500.00, which
                    payments shall be
                    due and payable on the last Business Day of each Fiscal Quarter
                    with the first
                    such payment being due on June 30, 2008, and (B) in full upon
                    the earliest to
                    occur of (1) termination of this Agreement, (2) acceleration
                    of the time for
                    payment of the Indebtedness pursuant to this Agreement or (3)
                    the Term Loan
                    Maturity Date. Subject to the provisions of this Agreement, any
                    amounts
                    outstanding under the Term Loan may be voluntarily prepaid. Borrowers
                    shall
                    notify Agent by 1:00 P.M. (Denver, Colorado time) on the Business
                    Day prior to
                    the Business Day for such prepayment of any prepayment of any
                    portion of the
                    Term Loan.

                

                
                  

                

                
                  (ii)           Mandatory
                    Prepayments. No later than 180 days after the receipt of net proceeds
                    from
                    the sale or other disposition of any assets of a Borrower constituting
                    Collateral (other than sale of inventory in the ordinary course
                    of business),
                    the Borrowers shall prepay the Term Loan in the inverse order
                    of the maturity
                    thereof in an aggregate amount equal to 100% of the net proceeds
                    that remain
                    after deducting any amount reinvested in replacement assets within
                    180 days
                    after receipt of such net proceeds. For purposes of this section,
                    "net proceeds"
                    shall mean all proceeds received from the disposition of such
                    assets less any
                    applicable taxes and reasonable costs of such disposition.

                

                
                  

                

                
                  (c)           Interest
                    Option. On each of the First Closing Date and the Second Closing
                    Date,
                    Borrowers shall choose to have the Term Loan accrue interest
                    as a Base Rate Loan
                    or a LIBOR Rate Loan (which, if chosen, also requires Borrowers
                    to choose an
                    Interest Period). In the case of the LIBOR Rate Loan, upon the
                    expiration of an
                    Interest Period, in the absence of a new Interest Period Notice
                    submitted to
                    Agent not less than three (3) Business Days prior to the end
                    of such Interest
                    Period (which shall set forth the new Interest Period or state
                    that the LIBOR
                    Rate Loan is being converted to a Base Rate Loan), the LIBOR
                    Rate Loan then
                    maturing shall be automatically continued at the then current
                    LIBOR Rate for an
                    additional Interest Period equal to the expired Interest Period;
                    provided,
                    however, that if the Term Loan Maturity Date would fall within
                    such subsequent
                    Interest Period, the LIBOR Rate Loan then maturing shall be automatically
                    converted to a Base Rate Loan. At any time prior to the Term
                    Loan Maturity Date,
                    Borrowers may request to convert a Base Rate Loan to a LIBOR
                    Rate Loan upon
                    submission of a LIBOR Rate Notice to Agent at least three (3)
                    Business Days
                    prior to the effectiveness of such conversion.

                

                
                  
                    
                    

                  

                  
                    17

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  ARTICLE
                    III

                

                
                  LETTERS
                    OF CREDIT

                

                
                  

                

                
                  
                    	
                             

                          	
                            3.1

                          	
                            AMOUNT.

                          

                  

                

                
                  

                

                
                  As
                    part
                    of the Revolving Facility, Borrowers may, subject to the terms
                    and conditions of
                    this Agreement, request Letters of Credit to be issued in an
                    amount not to
                    exceed the Total Letter of Credit Commitment and in the event
                    and to the extent
                    the Issuing Bank issues a Letter of Credit on behalf of a Borrower,
                    the Total
                    Revolving Credit Commitment shall be considered utilized by the
                    amount of such
                    Letter of Credit. Amounts drawn under any Letter of Credit and
                    honored by the
                    Issuing Bank shall become an Advance hereunder in such amount,
                    at such time and
                    subject to the terms of this Agreement, whether or not any Event
                    of Default has
                    occurred. All Letters of Credit issued under this Agreement shall
                    reduce the
                    amount available under the Total Revolving Credit Commitment.
                    At no time shall
                    the aggregate amount of Letter of Credit Outstandings exceed
                    the Total Letter of
                    Credit Commitment; provided, however, that upon expiration or
                    termination of any
                    Letter of Credit, the Total Letter of Credit Outstandings shall
                    be reduced and
                    the Issuing Bank may determine to issue, or cause to be issued,
                    additional
                    Letters of Credit provided that, in connection with any such
                    additional Letter
                    of Credit, the Total Letter of Credit Commitment shall not be
                    exceeded and the
                    other terms and conditions set forth herein have been satisfied.
                    The Issuing
                    Bank shall not be obligated to issue Letters of Credit with an
                    expiration date
                    that extends beyond the earlier of (a) 364 days after the date
                    of issuance for
                    standby letters of credit or 180 days after the date of issuance
                    for trade and
                    commercial letters of credit, and (b) fifteen (15) days prior
                    to the Revolving
                    Credit Maturity Date. All of the Issuing Bank's terms and conditions
                    for the
                    issuance of a Letter of Credit must also be complied with by
                    Borrowers prior to
                    any such issuance.

                

                
                  

                

                
                  
                    	
                             

                          	
                            3.2

                          	
                            COLLATERAL.

                          

                  

                

                
                  

                

                
                  Borrowers
                    hereby expressly agree that Borrowers' obligations relating to
                    any Letter of
                    Credit are secured by the Collateral.

                

                
                  

                

                
                  ARTICLE
                    IV

                

                
                  INTEREST,
                    FEES AND PAYMENT CONVENTIONS

                

                
                  

                

                
                  
                    	
                          	
                            4.1

                          	
                            PROMISE
                              TO PAY INTEREST.

                          

                  

                

                
                  

                

                
                  (a)           Interest.
                    Borrowers agree to pay interest on the Revolving Credit Outstandings
                    and the
                    Term Loans from time to time as provided herein. The unpaid principal
                    balance of
                    each Base Rate Advance and of each Base Rate Loan will bear interest
                    at an
                    annual rate equal to the Base Rate. The unpaid principal balance
                    of each LIBOR
                    Rate Advance and of each LIBOR Rate Loan will bear interest at
                    an annual rate
                    equal to the LIBOR Rate.

                

                
                  

                

                
                  (b)           Interest
                    Payments.

                

                
                  

                

                
                  (i)           Revolving
                    Facility. Interest on Base Rate Advances shall be due and payable
                    monthly in
                    arrears on the last Business Day of each month. Interest on LIBOR
                    Rate Advances
                    shall be due and payable in arrears at the end of the applicable
                    Interest Period
                    but, in any event, no less than every ninety (90) days.

                

                
                  
                    
                    

                  

                  
                    18

                    
                      

                    

                  

                  
                    
                    

                  

                

                
                  (ii)           Term
                    Facility. Interest on Base Rate Loans shall be due and payable monthly
                    in
                    arrears on the last Business Day of each month. Interest on LIBOR
                    Rate Loans
                    shall be due and payable in arrears at the end of the applicable
                    Interest Period
                    but, in any event, no less than every ninety (90) days.

                

                
                  

                

                
                  (c)           Default
                    Interest. Notwithstanding the rates of interest specified in Sections
                    4.1(a)
                    and 4.1(b) and the payment dates specified herein, effective
                    immediately upon
                    the occurrence and during the continuance of any Event of Default,
                    the principal
                    balance, and accrued interest thereon as of such date, of all
                    outstanding
                    Revolving Loans and the Term Loans shall to the extent permitted
                    by applicable
                    law bear interest payable at the Default Rate. In addition, all
                    other amounts
                    due Agent or the Lenders (whether directly or for reimbursement)
                    under this
                    Agreement or any of the other Transaction Documents, if not paid
                    when due or, in
                    the event no time period is expressed, if not paid within five
                    (5) days after
                    written notice from Agent that the same has become due, shall
                    thereafter bear
                    interest at the Default Rate. Finally, any amount due (i) on
                    the Revolving
                    Facility on the Revolving Credit Maturity Date that is not then
                    paid and (ii) on
                    the Term Loans on the Term Loan Maturity Date that are not then
                    paid shall also
                    bear interest thereafter at the Default Rate.

                

                
                  

                

                
                  (d)           Interest
                    Rate Swaps. Borrowers shall have the right to enter into fixed rate
                    interest
                    rate swaps with any Lender or any other financial institution.
                    Any obligations
                    of a Borrower to a Lender under an interest rate swap shall be
                    Indebtedness and
                    secured by the security interest granted in Article V.

                

                
                  

                

                
                  
                    	
                          	
                            4.2

                          	
                            PROMISE
                              TO PAY FEES.

                          

                  

                

                
                  

                

                
                  (a)           Commitment
                    Fee. For the period beginning on the First Closing Date and
                    ending on the
                    Revolving Credit Maturity Date, the Borrowers agree to pay to
                    the Agent, for the
                    pro rata benefit of the Lenders, based on their Applicable Commitment
                    Percentages, a commitment fee in the amount of the Applicable
                    Margin on the
                    average daily unused portion of the Revolving Line of Credit.
                    Usage on the
                    Revolving Line of Credit will equal the sum of Revolving Credit
                    Outstandings and
                    Letter of Credit Outstandings. Such fees shall be due and payable
                    monthly in
                    arrears on the first day of each month beginning on the first
                    day of the first
                    month following the First Closing Date and shall be based on
                    the unused
                    commitments for the immediately preceding month.

                

                
                  

                

                
                  (b)           Letter
                    of Credit Fees. The Borrowers shall pay to the Agent, for the pro rata
                    benefit of the Lenders based on their Applicable Commitment Percentages,
                    a fee
                    equal to the Applicable Margin for LIBOR Rate Advances per annum
                    on the
                    aggregate amount of Letter of Credit Outstandings. Such fee shall
                    be due and
                    payable quarterly in arrears on the last day of each Fiscal Quarter,
                    the first
                    such payment to be made on the first such date occurring after
                    the date of the
                    issuance of a Letter of Credit.

                

                
                  

                

                
                  (c)           Letter
                    of Credit Fronting and Administrative Fees. Borrowers agree to pay Agent a
                    fee equal to 0.125% per annum of the face amount of each Letter
                    of Credit
                    requested by Borrowers, if any. Such fee shall be due and payable
                    quarterly in
                    arrears on the last day of each Fiscal Quarter, the first such
                    payment to be
                    made on the first such date occurring after the date of the issuance
                    of a Letter
                    of Credit. Borrowers also agree to pay all present and future
                    expenses, charges, costs and fees of any Letter of Credit application,
                    including, without limitation, all amendment fees, presentation
                    fees, wire
                    charges and attorneys' fees and expenses of the Issuing Bank.
                    
                       

                      
                        
                          
                          

                        

                        
                          19

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                    

                    
                      (d)           Delayed
                        Draw Fees. Borrowers shall pay to the Agent for the account of
                        each Lender,
                        based on its Applicable Commitment Percentage, a commitment
                        fee equal to 0.75%
                        per annum times $25,000,000 for the period between the First
                        Closing Date and
                        the earliest to occur of (i) the termination of the Lenders'
                        obligation to fund
                        the Acquisition Term Loan Amount, and (ii) the Second Closing
                        Date. This fee
                        shall accrue at all times during this period, and shall be
                        due and payable
                        monthly in arrears on the last Business Day of each month,
                        commencing with the
                        first such date to occur after the First Closing Date.

                    

                    
                      

                    

                    
                      (e)           Payment
                        of Fees. The fees described in this Section 4.2 represent compensation
                        for
                        services rendered and to be rendered separate and apart from
                        the lending of
                        money or the provision of credit and do not constitute compensation
                        for the use,
                        detention or forbearance of money. The obligation of Borrowers
                        to pay the fees
                        described herein shall be in addition to, and not in lieu
                        of, the obligation of
                        Borrowers to pay interest, other fees and expenses otherwise
                        described in this
                        Agreement or in any other agreement with the Agent. All fees
                        shall be payable
                        when due at Agent's office in Colorado in immediately available
                        funds and shall
                        be non-refundable when paid. Such fees shall constitute part
                        of the Facility,
                        secured by all of the Collateral.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                4.3

                              	
                                COMPUTATION
                                  OF INTEREST AND FEES.

                              

                      

                    

                    
                      

                    

                    
                      Interest
                        and fees shall be computed on the basis of the actual number
                        of days elapsed in
                        the period during which interest or fees accrue and a year
                        of three hundred
                        sixty (360) days. Notwithstanding any of the terms and conditions
                        contained in
                        this section, interest in respect of the Revolving Credit
                        Outstandings, Letter
                        of Credit Outstandings and the Term Loan shall not exceed
                        the maximum rate
                        permitted by applicable law.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                4.4

                              	
                                DEFICIENCY
                                  ADVANCES: FAILURE TO PURCHASE
                                  PARTICIPATIONS.

                              

                      

                    

                    
                      

                    

                    
                      No
                        Lender
                        shall be responsible for any default of any other Lender
                        in respect to such
                        other Lender's obligation to make any Advance hereunder or
                        to fund its purchase
                        of any Participation hereunder nor shall the Applicable Commitment
                        Percentage,
                        the Revolving Credit Commitment or Letter of Credit Commitment
                        of any Lender
                        hereunder be increased as a result of such default of any
                        other Lender. Without
                        limiting the generality of the foregoing, in the event any
                        Lender shall fail to
                        advance funds to the Borrowers as herein provided, the Agent
                        may in its
                        discretion, but shall not be obligated to, advance under
                        the applicable
                        Revolving Note in its favor as a Lender all or any portion
                        of such amount or
                        amounts (each, a "Deficiency Advance") and shall thereafter
                        be entitled to
                        payments of principal of and interest on such Deficiency
                        Advance in the same
                        manner and at the same interest rate or rates to which such
                        other Lender would
                        have been entitled had it made such Advance under its Revolving
                        Note; provided
                        that (a) such defaulting Lender shall not be entitled to
                        receive payments of
                        principal, interest or fees with respect to such Deficiency
                        Advance until the
                        amount of such Deficiency Advance (together with interest
                        thereon as provided in
                        clause (b)) shall be paid by such Lender to the Agent, and
                        (b) upon payment to
                        the Agent from such other Lender of the entire outstanding
                        amount of each such
                        Deficiency Advance, together with accrued and unpaid interest
                        thereon at the
                        Federal Funds Rate, then such payment shall be credited against
                        the applicable
                        Revolving Note of the Agent in full payment of such Deficiency
                        Advance and such
                        Borrower shall be deemed to have borrowed the amount of such
                        Deficiency Advance
                        from such other Lender as of the most recent date or dates,
                        as the case may be,
                        upon which any payments of interest were made by such Borrower
                        thereon. In the
                        event any Lender shall fail to fund its purchase of a Participation
                        after notice
                        from the Issuing Bank such Lender shall pay to the Issuing
                        Bank such amount on
                        demand, together with interest at the Federal Funds Rate
                        on the amount so due
                        from the date of such notice to the date such purchase price
                        is received by the
                        Issuing Bank.

                    

                    
                      
                        
                        

                      

                      
                        20

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      
                        	
                              	
                                4.5

                              	
                                FUNDING
                                  LOSSES AND LIBOR ISSUES.

                              

                      

                    

                    
                      

                    

                    
                      (a)           Basis
                        Unavailable or Inadequate for LIBOR. If, on or before any date when a LIBOR
                        Rate is to be determined, Agent determines that the basis
                        for determining the
                        LIBOR Rate is not available or that the resulting rate does
                        not accurately
                        reflect the cost to Lenders of making or converting Advances
                        or Term Loans at
                        that rate for the applicable Interest Period, then Agent
                        shall promptly notify,
                        in writing, Borrowers and Lenders of that determination (which
                        is conclusive and
                        binding on Borrowers absent manifest error) and the applicable
                        Advance or Term
                        Loan shall bear interest at the Base Rate. Until Agent notifies
                        Borrowers that
                        those circumstances no longer exist, Lenders' commitments
                        under this Agreement
                        to make, or to convert to, LIBOR Rate Advances and LIBOR
                        Rate Loans shall be
                        suspended.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                (b)

                              	
                                Additional
                                  Costs.

                              

                      

                    

                    
                      

                    

                    
                      (i)           With
                        respect to any LIBOR Rate Advance or LIBOR Rate Loan, if
(A)
                        any
                        present or future law imposes, modifies, or deems applicable
                        (or if compliance
                        by any Lender with any requirement of any court or authority
                        results in) any
                        reserve requirement, and if (B)
                        those
                        reserves reduce any sums receivable by Lenders under this
                        Agreement or increase
                        the costs incurred by Lenders in advancing or maintaining
                        any portion of any
                        LIBOR Rate Advance or LIBOR Rate Loan, then (C) Lenders (through
                        Agent) shall
                        deliver to Borrowers a certificate setting forth in reasonable
                        detail the
                        calculation of the amount necessary to compensate it for
                        its reduction or
                        increase, as the case may be (which certificate is conclusive
                        and binding absent
                        manifest error), and (D) Borrowers shall promptly pay that
                        amount to Agent upon
                        demand. This paragraph shall survive the satisfaction and
                        payment of all
                        Indebtedness and termination of this Agreement. This paragraph
                        may be invoked by
                        Lenders only if Lenders are generally invoking similar provisions
                        against other
                        Persons to which Lenders lend funds pursuant to facilities
                        similar to the
                        Facility.

                    

                    
                      

                    

                    
                      (ii)           With
                        respect to the Term Loan or the Revolving Line of Credit,
                        if any present or
                        future law regarding capital adequacy or compliance by any
                        Lender with any
                        request, directive or requirement now existing or hereafter
                        imposed by any court
                        or authority regarding capital adequacy, or any change in
                        its written policies
                        or in the risk category of this transaction, reduces the
                        rate of return on its
                        capital as a consequence of its obligations under this Agreement
                        to a level
                        below that which it otherwise could have achieved (taking
                        into consideration its
                        policies with respect to capital adequacy) by an amount deemed
                        by it to be
                        material (and it may, in determining the amount, utilize
                        reasonable assumptions
                        and allocations of costs and expenses and use any reasonable
                        averaging or
                        attribution method), then (unless the effect is already reflected
                        in the rate of
                        interest then applicable under this Agreement) Agent shall
                        notify Borrowers and
                        deliver to Borrowers a certificate setting forth in reasonable
                        detail the
                        calculation of the amount necessary to compensate it (which
                        certificate is
                        conclusive and binding absent manifest error), and Borrowers
                        shall promptly pay
                        that amount to Agent upon demand. This paragraph shall survive
                        the satisfaction
                        and payment of all Indebtedness and termination of this Agreement.
                        This
                        paragraph may be invoked by Lenders only if Lenders are generally
                        invoking
                        similar provisions against other Persons to which Lenders
                        lend funds pursuant to
                        facilities similar to the Facility.

                    

                    
                      
                        
                        

                      

                      
                        21

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      (c)           Change
                        in Law. If any law makes it unlawful for any Lender to make
                        or maintain
                        LIBOR Rate Advances or LIBOR Rate Loans, then that Lender
                        shall promptly notify
                        Borrowers and Agent, and (i) as to undisbursed funds, that
                        requested Advance
                        shall be made as a Base Rate Advance, (ii) as to any outstanding
                        LIBOR Rate Loan
                        or LIBOR Rate Advance, (A) if maintaining the LIBOR Rate
                        Loan or LIBOR Rate
                        Advance until the last day of the applicable Interest Period
                        is unlawful, the
                        LIBOR Rate Loan or LIBOR Rate Advance shall be converted
                        to a Base Rate Loan or
                        Base Rate Advance as of the date of notice, and Borrowers
                        shall pay any related
                        Funding Loss, or (B) if not prohibited by law, the LIBOR
                        Rate Loan or LIBOR Rate
                        Advance shall be converted to a Base Rate Loan or Base Rate
                        Advance as of the
                        last day of the applicable Interest Period, or (C) if any
                        conversion will not
                        resolve the unlawfulness, Borrowers shall promptly pay the
                        LIBOR Rate Loan or
                        LIBOR Rate Advance, without penalty, together with any related
                        Funding Loss.
                        This paragraph may be invoked by Lenders only if Lenders
                        are generally invoking
                        similar provisions against other Persons to which Lenders
                        lend funds pursuant to
                        facilities similar to the Facility.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                4.6

                              	
                                FUNDING
                                  LOSS.

                              

                      

                    

                    
                      

                    

                    
                      Borrowers
                        agree to indemnify each Lender against, and pay to it upon
                        demand, any Funding
                        Loss of that Lender. When any Lender demands that Borrowers
                        pay any Funding
                        Loss, that Lender shall deliver to Borrowers and Agent a
                        certificate setting
                        forth in reasonable detail the basis for imposing a Funding
                        Loss and the
                        calculation of the amount, which calculation is conclusive
                        and binding absent
                        manifest error. The provisions of and undertakings and indemnification
                        set forth
                        in this paragraph shall survive the satisfaction and payment
                        of the Indebtedness
                        and termination of this Agreement.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                4.7

                              	
                                ACCOUNT
                                  STATED.

                              

                      

                    

                    
                      

                    

                    
                      Borrowers
                        agree that each monthly or other statement of account mailed
                        or delivered by
                        Agent to Borrowers pertaining to the outstanding balance
                        of Advances or Letters
                        of Credit under the Revolving Line of Credit, the outstanding
                        balance of the
                        Term Loan, the amount of interest due thereon, fees, and
                        costs and expenses
                        shall be final, conclusive, and binding on Borrowers and
                        shall constitute an
                        "account stated" with respect to the matters contained therein
                        unless, within
                        sixty (60) calendar days after such statement is mailed or,
                        if not mailed,
                        delivered to Borrowers, Borrowers shall deliver to Agent
                        written notice of any
                        objections which they may have as to such statement of account,
                        and in such
                        event, only the items to which objection is expressly made
                        in such notice shall
                        be considered to be disputed by Borrowers.

                    

                    
                      
                        
                        

                      

                      
                        22

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      ARTICLE
                        V

                    

                    
                      COLLATERAL
                        AND INDEBTEDNESS SECURED

                    

                    
                      

                    

                    
                      
                        	
                              	
                                5.1

                              	
                                SECURITY
                                  INTEREST.

                              

                      

                    

                    
                      

                    

                    
                      Each
                        Borrower hereby grants to Lenders a security interest in,
                        and a Lien on, the
                        following property of such Borrower wherever located and
                        whether now owned or
                        hereafter acquired:

                    

                    
                      

                    

                    
                      (a)           All
                        Accounts (other than any governmental Accounts that are not
                        legally assignable
                        by Borrower), Inventory, general intangibles, chattel paper,
                        documents, and
                        instruments, whether or not specifically assigned to Lenders,
                        automotive
                        equipment, motor vehicles and fixtures;

                    

                    
                      

                    

                    
                      (b)           All
                        guaranties, collateral, liens on, or security interests in,
                        real or personal
                        property, leases, letters of credit, and other rights, agreements,
                        and property
                        securing or relating to payment of Accounts;

                    

                    
                      

                    

                    
                      (c)           All
                        rights to receive the surplus funds, if any, which are payable
                        to Borrower
                        following the termination of any Pension Plan and the satisfaction
                        of all
                        liabilities to participants and beneficiaries under such
                        Pension Plan in
                        accordance with applicable law;

                    

                    
                      

                    

                    
                      (d)           All
                        trademarks, trademark rights, patents, patent rights, intellectual
                        property
                        licenses and permits, trade names, trade name rights, and
                        approvals, including,
                        without limitation, those listed on Schedule 5.1(d) attached hereto,
                        together with all income, royalties, damages and payments
                        now and hereafter due
                        and payable thereunder with respect thereto;

                    

                    
                      

                    

                    
                      (e)           Equipment,
                        whether or not affixed to realty, including Unencumbered
                        Aircraft and equipment
                        located thereon but excluding any Aircraft that is the subject
                        of a Permitted
                        Encumbrance;

                    

                    
                      

                    

                    
                      (f)           All
                        sale, service, performance and equipment lease contracts
                        as to which Borrower is
                        lessee, agreements and grants (whether written or oral),
                        and any other contract
                        (whether written or oral) between Borrower and third parties
                        (except for any
                        real property leases, or any equipment leases that do not
                        allow an assignment of
                        such leases by their terms, neither of which shall be
                        Collateral);

                    

                    
                      

                    

                    
                      (g)           The
                        entire goodwill and all product lines of Borrower's businesses
                        and other general
                        intangibles, including, without limitation, know-how, trade
                        secrets, customer
                        lists, proprietary information, inventions, methods, procedures
                        and formulae in
                        connection with the use of and symbolized by the trademarks
                        of
                        Borrower;

                    

                    
                      

                    

                    
                      (h)           All
                        books, records, ledger cards, data processing records, computer
                        software, and
                        other property at any time evidencing or relating to
                        Collateral;

                    

                    
                      

                    

                    
                      (i)           All
                        monies, securities (including a pledge of all stock of any
                        Affiliate owned by
                        Borrower or any Consolidated Subsidiary and other property
                        now or hereafter
                        held, or received by, or in transit to, Lenders from or for
                        Borrower, and all of
                        Borrower's investment property and financial assets (as each
                        is defined in the
                        UCC)), deposit accounts, credits, and balances with Lenders
                        existing at any
                        time;

                    

                    
                      
                        
                        

                      

                      
                        23

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      (j)           All
                        parts (other than parts included in the purchase of Aircraft
                        that is the subject
                        of a Permitted Encumbrance), accessories, attachments, special
                        tools, additions,
                        replacements, substitutions, and accessions to or for all
                        of the
                        foregoing;

                    

                    
                      

                    

                    
                      (k)           All
                        proceeds and products of all of the foregoing in any form,
                        including, without
                        limitation, amounts payable under any policies of insurance
                        insuring the
                        foregoing against loss or damage, and all increases and profits
                        received from
                        all of the foregoing;

                    

                    
                      

                    

                    
                      provided,
                        however, the Collateral shall not include any rights or
                        interests of
                        Borrower under any licenses, leases or other contracts if
                        and to the extent that
                        the granting of a security interest in such licenses, leases
                        or contract is
                        prohibited as a matter of law (as opposed to a contractual
                        prohibition);
provided, further, (i) if any such prohibition is no longer
                        effective, a security interest therein in favor of Agent
                        shall automatically
                        arise hereunder without any further action on the part of
                        Borrower or Agent and
                        (ii) nothing contained herein shall be deemed to limit, impair
                        or otherwise
                        affect Agent's security interest in any rights or interests
                        of Borrower in or to
                        monies due or to become due under any such agreement.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                5.2

                              	
                                INDEBTEDNESS
                                  SECURED.

                              

                      

                    

                    
                      

                    

                    
                      The
                        Security Interest secures payment of any and all Indebtedness
                        and the
                        performance of all obligations and agreements of Borrowers
                        to Lenders, whether
                        now existing or hereafter incurred or arising, of every kind
                        and character,
                        primary or secondary, direct or indirect, absolute or contingent,
                        sole, joint or
                        several, and whether such Indebtedness is from time to time
                        reduced and
                        thereafter increased, or entirely extinguished and thereafter
                        reincurred,
                        including, without limitation: (a) all Advances under the
                        Revolving Line of
                        Credit, the Revolving Note, and any Letters of Credit; (b)
                        all amounts owed
                        under the Term Loan; (c) all interest which accrues on any
                        Indebtedness, until
                        payment of such Indebtedness in full, including, without
                        limitation, all
                        interest provided for under this Agreement or any other Transaction
                        Documents;
                        (d) all other monies payable by Borrowers, and all obligations
                        and agreements of
                        Borrowers to Lenders, pursuant to the Transaction Documents
                        or any interest rate
                        swap agreement; (e) all debts owed, or to be owed, by Borrowers
                        to Lenders or
                        their Affiliates that arise from negative balances which
                        may exist from time to
                        time in any operating, deposit or other account maintained
                        with an Affiliate of
                        a Lender; and (f) all monies payable by any Third Party,
                        and all obligations and
                        agreements of any Third Party to any Lender, pursuant to
                        any of the Transaction
                        Documents.

                    

                    
                      

                    

                    
                      ARTICLE
                        VI

                    

                    
                      REPRESENTATIONS
                        AND WARRANTIES

                    

                    
                      

                    

                    
                      To
                        induce
                        Lenders to enter into this Agreement, make the Term Loan,
                        make Advances, and
                        provide Letters of Credit to Borrowers from time to time
                        as herein provided,
                        Borrowers represent and warrant as of the First Closing Date,
                        as of each date an
                        Advance is made, and so long as any Indebtedness remains
                        unpaid or this
                        Agreement remains in effect, as follows:

                    

                    
                      
                        
                        

                      

                      
                        24

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      
                        	
                              	
                                6.1

                              	
                                EXISTENCE.

                              

                      

                    

                    
                      

                    

                    
                      Each
                        Borrower and each Consolidated Subsidiary is duly organized
                        and existing and in
                        good standing under the laws of the jurisdiction of its incorporation
                        or
                        formation and is duly licensed or qualified to do business
                        and in good standing
                        in every state in which the nature of its business or ownership
                        of its property
                        requires such licensing or qualification, except where failure
                        to do so would
                        not reasonably be expected to have a Material Adverse Effect.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.2

                              	
                                CAPACITY.

                              

                      

                    

                    
                      

                    

                    
                      The
                        execution, delivery, and performance of the Transaction Documents
                        to which each
                        Borrower is a party are within such Borrower's corporate
                        or limited liability
                        company powers, have been duly authorized by all necessary
                        and appropriate
                        corporate or limited liability company action, and are not
                        in contravention of
                        any law or the terms of such Borrower's articles of incorporation,
                        bylaws,
                        articles of organization, operating agreement or other organizational
                        documents
                        or any amendment thereto, or of any indenture, agreement,
                        undertaking, or other
                        document to which such Borrower is a party or by which such
                        Borrower or any of
                        such Borrower's property is bound or affected, except where
                        any contravention of
                        an indenture, agreement, undertaking or document would not
                        reasonably be
                        expected to have a Material Adverse Effect.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.3

                              	
                                INVENTORY.

                              

                      

                    

                    
                      

                    

                    
                      (a)           All
                        written representations made by Borrowers to Lenders, and
                        all documents and
                        schedules given by Borrowers to Lenders, relating to the
                        description, quantity,
                        quality, condition and valuation of the Inventory are true
                        and correct in all
                        material respects; (b) Borrowers have not received any Inventory
                        on consignment
                        or approval unless Borrowers (i) have marked such Inventory
                        on consignment or
                        approval or have segregated it from all other Inventory,
                        and (ii) have
                        appropriately marked its records to reflect the existence
                        of such Inventory on
                        consignment or approval; (c) Inventory is located only (i)
                        at the address or
                        addresses of Borrowers set forth on the signature pages to
                        this Agreement, (ii)
                        at or in transit between the locations specified in Schedule 6.3 attached
                        hereto (as such schedule may be updated from time to time
                        upon at least five (5)
                        days prior written notice to Agent from Borrower), (iii)
                        at various other
                        locations of third-party vendors for warranty, repair, maintenance
                        and
                        refurbishment, (iv) as to parts affixed to Aircraft, as mobile
                        goods, at
                        locations throughout the Aircraft's intended area of service
                        or (v) at such
                        other place or places as may be approved by Lenders in writing;
                        (d) all
                        Inventory is insured as required by Section 8.7 pursuant
                        to policies in full
                        compliance with the requirements of such section; and (e)
                        to Borrowers'
                        knowledge, all Inventory produced by Borrower has been produced
                        in substantial
                        compliance with the Federal Fair Labor Standards Act of 1938,
                        as amended, and
                        all rules, regulations, and orders promulgated thereunder.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.4

                              	
                                TITLE
                                  TO COLLATERAL.

                              

                      

                    

                    
                      

                    

                    
                      (a)           Borrowers
                        are, as of the date hereof, and, as to Collateral acquired
                        by them from time to
                        time after the date hereof, will be, the sole direct and
                        beneficial owner of the
                        Collateral free of all security interests, liens, and other
                        encumbrances except
                        (i) the Security Interest, (ii) Permitted Encumbrances, and
                        (iii) as described
                        in Schedule 6.4 attached hereto; (b) Borrowers
                        have the unconditional authority to grant the Security Interest
                        to Lenders; and
(c)
                        assuming that all necessary filings under the UCC and with
                        the FAA and the U.S.
                        Patent and Trademark Office have been made and, if applicable,
                        assuming
                        compliance with the Federal Assignment of Claims Act of 1940,
                        as amended, to the
                        extent such lien and security interest may be perfected as
                        a result of such
                        filings, Agent has an enforceable first lien and perfected
                        first priority
                        security interest on all Collateral, superior and prior to
                        the rights of all
                        other Persons therein, other than Permitted Encumbrances
                        and those security
                        interests, liens, or encumbrances described in Schedule
                        6.4.

                    

                    
                      
                        
                        

                      

                      
                        25

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      
                        	
                              	
                                6.5

                              	
                                ACCOUNTS.

                              

                      

                    

                    
                      

                    

                    
                      No
                        Account of Borrowers is an instrument, document, or chattel
                        paper or is
                        evidenced by any note, draft, trade acceptance, or other
                        instrument for the
                        payment of money, except such instrument, document, chattel
                        paper, note, draft,
                        trade acceptance, or other instrument as has been endorsed
                        and delivered by
                        Borrowers to Agent and has not been presented for payment
                        and returned
                        uncollected for any reason.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.6

                              	
                                EQUIPMENT.

                              

                      

                    

                    
                      

                    

                    
                      All
                        of
                        Borrowers' equipment is located, and equipment that is a
                        fixture is affixed to
                        real property, only at the locations identified in Section
                        6.3(c). The real
                        property at which such equipment is located is owned or leased
                        pursuant to valid
                        leasehold interests by Borrowers or by the Person or Persons
                        named in
Schedule 6.6 and is encumbered only by the mortgage
                        or
                        leases listed in Schedule 6.6.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.7

                              	
                                PLACE
                                  OF BUSINESS.

                              

                      

                    

                    
                      

                    

                    
                      (a)           Borrowers
                        are engaged in business operations which are in whole, or
                        in part, carried on at
                        the locations specified on, the signature pages to this Agreement
                        and on
Schedule 6.3; (b) Borrowers' chief executive offices are located
                        is at
                        the address specified as such on the signature pages to this
                        Agreement; and (c)
                        Borrowers' records concerning the Collateral are kept at
                        the address specified
                        on the signature pages to this Agreement or in Schedule
                        6.7 attached hereto.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.8

                              	
                                FINANCIAL
                                  CONDITION.

                              

                      

                    

                    
                      

                    

                    
                      Borrowers
                        have furnished to Lenders Borrowers' financial statements
                        for the quarter ended
                        June 30, 2007, which statements fairly represent the financial
                        condition and
                        results of the operations of Borrowers and the Consolidated
                        Subsidiaries as of
                        the dates, and for the period referred to, and have been
                        prepared in accordance
                        with GAAP (except for year-end adjustments) consistently
                        applied during each
                        period involved and from period to period. Since the date
                        of such financial
                        statements, there have not been any changes in the financial
                        condition reflected
                        in such financial statements that would reasonably be expected
                        to have a
                        Material Adverse Effect.

                    

                    
                      
                        
                        

                      

                      
                        26

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      
                        	
                              	
                                6.9

                              	
                                TAXES.

                              

                      

                    

                    
                      

                    

                    
                      Except
                        as
                        set forth in Schedule 6.9 attached hereto, (a) all federal and other tax
                        returns required to be filed by Borrowers and each Consolidated
                        Subsidiary have
                        been filed, are true and correct in all material respects,
                        and all taxes
                        required by such returns to be paid by Borrowers have been
                        paid when due (other
                        than any taxes, the amount or validity of which are currently
                        being contested in
                        good faith by appropriate proceedings and with respect to
                        which reserves in
                        conformity with GAAP have been provided on the books of Borrowers
                        or each
                        Consolidated Subsidiary, as the case may be); and (b) neither
                        any Borrower nor
                        any Consolidated Subsidiary has received any written notice
                        from the Internal
                        Revenue Service or any other taxing authority challenging
                        the accuracy or
                        validity of any filed return which remains unresolved.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.10

                              	
                                LITIGATION.

                              

                      

                    

                    
                      

                    

                    
                      Except
                        as
                        disclosed in Schedule 6.10 attached hereto, there are no actions, suits,
                        proceedings, or investigations pending or, to the knowledge
                        of Borrowers,
                        threatened in writing against any Borrower or any Consolidated
                        Subsidiary, or
                        any basis therefor, which, if adversely determined, in any
                        case or in the
                        aggregate, would reasonably be expected to have a Material
                        Adverse Effect or
                        materially impair the right or ability of any Borrower or
                        any Consolidated
                        Subsidiary to carry on its operations substantially as conducted
                        on the date of
                        this Agreement.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.11

                              	
                                ERISA
                                  MATTERS.

                              

                      

                    

                    
                      

                    

                    
                      Except
                        to
                        the extent such occurrence does not have a Material Adverse
                        Effect, (i) no
                        Pension Plan has been terminated, or partially terminated,
                        or is insolvent, or
                        in reorganization, nor have any proceedings been instituted
                        to terminate or
                        reorganize any Pension Plan; (ii) neither any Borrower nor
                        any Consolidated
                        Subsidiary has withdrawn from any Pension Plan in a complete
                        or partial
                        withdrawal, nor has a condition occurred which, if continued,
                        would result in a
                        complete or partial withdrawal; (iii) neither any Borrower
                        nor any Consolidated
                        Subsidiary has incurred any withdrawal liability, including,
                        without limitation,
                        contingent withdrawal liability, to any Pension Plan, pursuant
                        to Title IV of
                        ERISA; (iv) neither any Borrower nor any Consolidated Subsidiary
                        has incurred
                        any liability to the Pension Benefit Guaranty Corporation
                        other than for
                        required insurance premiums which have been paid when due;
                        (v) no Reportable
                        Event has occurred; (vi) no Pension Plan or other "employee
                        pension benefit
                        plan," as defined in Section 3(2) of ERISA, to which any
                        Borrower or any
                        Consolidated Subsidiary is a party has an "accumulated funding
                        deficiency"
                        (whether or not waived), as defined in Section 302 of ERISA
                        or in Section 412 of
                        the Internal Revenue Code; and (vii) the present value of
                        all benefits vested
                        under any Pension Plan does not exceed the value of the assets
                        of such Pension
                        Plan allocable to such vested benefits; (b) each Pension
                        Plan and each other
                        "employee benefit plan," as defined in Section 3(3) of ERISA,
                        to which any
                        Borrower or any Consolidated Subsidiary is a party is in
                        substantial compliance
                        with ERISA, and no such plan or any administrator, trustee,
                        or fiduciary thereof
                        has engaged in a nonexempt prohibited transaction described
                        in Section 406 of
                        ERISA or in Section 4975 of the Internal Revenue Code; (c)
                        each Pension Plan and
                        each other "employee benefit plan," as defined in Section
                        3(2) of ERISA, to
                        which any Borrower or any Consolidated Subsidiary is a party
                        has received a
                        favorable determination by the Internal Revenue Service with
                        respect to
                        qualification under Section 401(a) of the Internal Revenue
                        Code or is entitled
                        to rely on the favorable opinion letter issued to the master
                        or prototype plan
                        adopted with respect to the plan, to the extent provided
                        under Revenue Procedure
                        2005-16; and (d) neither any Borrower nor any Consolidated
                        Subsidiary has
                        incurred any liability to a trustee established pursuant
                        to Section 4042(b) or
                        (c) of ERISA.

                    

                    
                      
                        
                        

                      

                      
                        27

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      
                        	
                              	
                                6.12

                              	
                                ENVIRONMENTAL
                                  MATTERS.

                              

                      

                    

                    
                      

                    

                    
                      (a)           Any
                        Environmental Questionnaire previously provided to Lenders
                        by Borrowers was
                        accurate and complete at the time it was prepared, and the
                        most recent
                        Environmental Questionnaire is currently accurate and
                        complete.

                    

                    
                      

                    

                    
                      (b)           Except
                        as listed in Schedule 6.12, no above ground or underground storage tanks
                        containing Hazardous Substances are, or, to the knowledge
                        of Borrowers, have
                        been, located on any property owned, leased or operated by
                        any Borrower or any
                        Consolidated Subsidiary.

                    

                    
                      

                    

                    
                      (c)           No
                        property owned, leased or operated by any Borrower or any
                        Consolidated
                        Subsidiary is, or, to the knowledge of Borrowers, has been,
                        used for the
                        Disposal of any Hazardous Substance or for the treatment,
                        storage, or Disposal
                        of Hazardous Substances, except in substantial compliance
                        with Environmental
                        Laws.

                    

                    
                      

                    

                    
                      (d)           To
                        the knowledge of Borrowers, no Release of a Hazardous Substance
                        has occurred, or
                        is threatened on, at, from, or near any property owned, leased
                        or operated by
                        any Borrower or any Consolidated Subsidiary, except in accordance
                        with
                        Environmental Laws.

                    

                    
                      

                    

                    
                      (e)           Neither
                        any Borrower nor any Consolidated Subsidiary has received
                        written notice of any
                        existing, pending, or threatened suit, claim, notice of violation,
                        or request
                        for information under any Environmental Law.

                    

                    
                      

                    

                    
                      (f)           To
                        the knowledge of Borrowers, Borrowers and each Consolidated
                        Subsidiary are in
                        substantial compliance with, and have obtained all Environmental
                        Permits
                        required by, all Environmental Laws.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.13

                              	
                                VALIDITY
                                  OF TRANSACTION DOCUMENTS.

                              

                      

                    

                    
                      

                    

                    
                      The
                        Transaction Documents constitute the legal, valid, and binding
                        obligations of
                        each Borrower and, to the extent they are parties thereto,
                        of each Consolidated
                        Subsidiary and any Third Parties thereto, enforceable in
                        accordance with their
                        respective terms, except as enforceability may be limited
                        by applicable
                        bankruptcy, insolvency, fraudulent conveyance, moratorium
                        and similar laws
                        affecting creditors' rights generally or general principles
                        of
                        equity.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.14

                              	
                                AIR
                                  CARRIER CERTIFICATES.

                              

                      

                    

                    
                      

                    

                    
                      The
                        Air
                        Carrier Certificates listed on Schedule 6.14 remain in full force and
                        effect, and are all Air Carrier Certificates necessary for
                        the Borrowers to
                        conduct their business as currently conducted. Each Borrower
                        operates under an
                        Air Carrier Certificate under Section 44705 of Title 49 of
                        the United States
                        Code of Federal Regulations.

                    

                    
                      
                        
                        

                      

                      
                        28

                        
                          

                        

                      

                      
                        
                        

                      

                    

                    
                      
                        	
                              	
                                6.15

                              	
                                NO
                                  VIOLATIONS.

                              

                      

                    

                    
                      

                    

                    
                      Neither
                        any Borrower nor any Consolidated Subsidiary is in violation
                        of any term of (i)
                        its organizational documents or (ii) any mortgage, borrowing
                        agreement, or other
                        instrument or agreement pertaining to indebtedness for borrowed
                        money, which
                        violation, in the case of (ii) above, would reasonably be
                        expected to have a
                        Material Adverse Effect. Neither any Borrower nor any Consolidated
                        Subsidiary is
                        in violation of any term of any other instrument, or agreement
                        to which it is a
                        party or by which it or its property may be bound which would
                        reasonably be
                        expected to result in a Material Adverse Effect. Neither
                        any Borrower nor any
                        Consolidated Subsidiary is in violation of any order, writ,
                        judgment,
                        injunction, or decree of any court of competent jurisdiction.
                        The execution,
                        delivery and performance of the Transaction Documents is,
                        and will be, in
                        compliance with the foregoing and will not result in any
                        violation thereof, or
                        result in the creation of any mortgage, lien, security interest,
                        charge, or
                        encumbrance upon, any properties or assets of any Borrower
                        or any Consolidated
                        Subsidiary except in favor of Agent.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.16

                              	
                                TRADEMARKS
                                  AND PATENTS: OTHER INTELLECTUAL
                                  PROPERTY.

                              

                      

                    

                    
                      

                    

                    
                      Schedule
                        5.1(d) lists, as of the First Closing Date, all material trademarks,
                        trademark rights, patents, patent rights, trade names, trade
                        name rights and
                        copyright registrations and applications that are used by
                        and required for
                        Borrowers and each Consolidated Subsidiary in the conduct
                        of its business as now
                        conducted. Borrowers have the right to use all such intellectual
                        property
                        pursuant to valid trademarks, patents, licenses, sub-licenses
                        or other agreement
                        except with respect to any software used by the Borrowers
                        where the failure to
                        have such right to use would not have a Material Adverse
                        Effect. Other than
                        items in the ordinary course of business relating to interference,
                        infringement
                        or misappropriation of its intellectual property that would
                        not have a Material
                        Adverse Effect on any Borrower or its Consolidated Subsidiaries,
                        (a) Borrowers
                        have not received any written claim, demand or notice alleging
                        that its
                        intellectual property interferes with or infringes any third
                        party's
                        intellectual property rights, and (b) except as set forth
                        on Schedule
                        5.1(d). to the knowledge of Borrowers and their Consolidated
                        Subsidiaries,
                        no third party has interfered with, infringed upon or misappropriated
                        any
                        material intellectual property rights of any Borrower. Borrowers
                        hereby grant to
                        Agent a limited power of attorney to sign, upon the occurrence
                        and during the
                        continuance of an Event of Default, any document which may
                        be required by the
                        United States Patent and Trademark Office in order to effect
                        an absolute
                        assignment of all right, title and interest in each trademark,
                        patent and
                        copyright included in the Collateral, and to record the same.

                    

                    
                      

                    

                    
                      
                        	
                              	
                                6.17

                              	
                                CONTINGENT
                                  LIABILITIES.

                              

                      

                    

                    
                      

                    

                    
                      Except
                        as
                        disclosed in the filings made by AMC with the U.S. Securities
                        and Exchange
                        Commission, there are no suretyship agreements, guaranties,
                        or other contingent
                        liabilities of Borrowers or any Consolidated Subsidiary which
                        would reasonably
                        be expected to have a Material Adverse Effect.

                    

                    
                       

                      
                        
                          
                          

                        

                        
                          29

                          
                            

                          

                        

                        
                          
                          

                        

                      

                       

                        
                          
                            	
                                  	
                                    6.18

                                  	
                                    COMPLIANCE
                                      WITH LAWS.

                                  

                          

                        

                        
                          

                        

                        
                          Each
                            Borrower and each Consolidated Subsidiary is in compliance
                            with all applicable
                            laws, rules, regulations, and other legal requirements
                            with respect to its
                            business and the use, maintenance, and operation of the
                            real and personal
                            property owned or leased by it in the conduct of its
                            business, except where the
                            failure to comply would not, individually or in the aggregate,
                            reasonably be
                            expected to have a Material Adverse Effect.

                        

                        
                          

                        

                        
                          
                            	
                                  	
                                    6.19

                                  	
                                    LICENSES.
                                      PERMITS. ETC.

                                  

                          

                        

                        
                          

                        

                        
                          Each
                            franchise, grant, approval, authorization, license, permit,
                            consent,
                            certificate, and order of and registration, declaration,
                            and filing with, any
                            court, governmental body or authority, or other Person
                            required for or in
                            connection with the conduct of each Borrower's and each
                            Consolidated
                            Subsidiary's business as now conducted is in full force
                            and effect, except for
                            exceptions to the foregoing which would not reasonably
                            be expected to have a
                            Material Adverse Effect.

                        

                        
                          

                        

                        
                          
                            	
                                  	
                                    6.20

                                  	
                                    LABOR
                                      CONTRACTS.

                                  

                          

                        

                        
                          

                        

                        
                          Except
                            as
                            set forth on Schedule 6.20. neither any Borrower nor any Consolidated
                            Subsidiary is a party to any existing or threatened labor
                            dispute or
                            controversy; there are no strikes or walkouts or union
                            organization of any
                            Borrowers' employees threatened or existing; and no labor
                            contract is scheduled
                            to expire until after the Term Loan Maturity Date.

                        

                        
                          

                        

                        
                          
                            	
                                  	
                                    6.21

                                  	
                                    CONSOLIDATED
                                      SUBSIDIARIES.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            have no Consolidated Subsidiaries other than those listed
                            in Schedule 6.21(a)
and, after completion of the Acquisition Agreement,
Schedule 6.21(b),
                            and the percentage ownership of such Borrower in each
                            such Consolidated
                            Subsidiary is specified in such Schedule 6.21.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    6.22

                                  	
                                    CAPITALIZATION.

                                  

                          

                        

                        
                          

                        

                        
                          Except
                            as
                            set forth on Schedule 6.22. all of Borrowers' equity interests in any
                            Consolidated Subsidiary have been validly issued in full
                            compliance with all
                            applicable federal and state securities laws, and, with
                            respect to subsidiaries
                            that are corporations, are fully paid and non-assessable.
                            AMC, directly or
                            indirectly, owns all of the outstanding equity interests
                            of each other Borrower
                            and each Consolidated Subsidiary listed on Schedule 6.21(a) and, after
                            the completion of the Acquisition Agreement, will own
                            all of the outstanding
                            equity interests of the Consolidated Subsidiaries identified
                            in Schedule
                            6.21(b).

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    6.23

                                  	
                                    ANTI-TERRORISM
                                      LAWS.

                                  

                          

                        

                        
                          

                        

                        
                          (a)            General.
                            Neither any Borrower nor any Affiliate of any Borrower
                            is in violation of any
                            Anti-Terrorism Law or engages in or conspires to engage
                            in any transaction that
                            evades or avoids, or has the purpose of evading or avoiding,
                            or attempts to
                            violate, any of the prohibitions set forth in any Anti-Terrorism
                            Law.

                        

                        
                          
                            
                            

                          

                          
                            30

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          (b)           Executive
                            Order No. 13224. Neither any Borrower nor any Affiliate of any Borrower
                            or
                            their respective agents acting or benefiting in any capacity
                            in connection with
                            the Advances or other transactions hereunder, is any
                            of the following (each a
                            "Blocked Person"):

                        

                        
                          

                        

                        
                          (i)          a
                            Person that is listed in the annex to, or is otherwise
                            subject to the provisions
                            of, the Executive Order No. 13224;

                        

                        
                          

                        

                        
                          (ii)         a
                            Person owned or controlled by, or acting for or on behalf
                            of, any Person that is
                            listed in the annex to, or is otherwise subject to the
                            provisions of, the
                            Executive Order No. 13224;

                        

                        
                          

                        

                        
                          (iii)        a
                            Person or entity with which any Lender is prohibited
                            from dealing or otherwise
                            engaging in any transaction by any Anti-Terrorism Law;

                        

                        
                          

                        

                        
                          (iv)        a
                            Person or entity that commits, threatens or conspires
                            to commit or supports
                            "terrorism" as defined in the Executive Order No. 13224;

                        

                        
                          

                        

                        
                          (v)         a
                            Person or entity that is named as a "specially designated
                            national" on the most
                            current list published by the U.S. Treasury Department
                            Office of Foreign Asset
                            Control at its official website or any replacement website
                            or other replacement
                            official publication of such list, or

                        

                        
                          

                        

                        
                          (vi)        a
                            Person or entity who is affiliated or associated with
                            a Person or entity listed
                            above.

                        

                        
                          

                        

                        
                          Neither
                            any Borrower or, to the knowledge of any Borrower, any
                            of its agents acting in
                            any capacity in connection with the Advances or other
                            transactions hereunder (i)
                            conducts any business or engages in making or receiving
                            any contribution of
                            funds, goods or services to or for the benefit of any
                            Blocked Person, or (ii)
                            deals in, or otherwise engages in any transaction relating
                            to, any property or
                            interests in property blocked pursuant to the Executive
                            Order No.
                            13224.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    6.24

                                  	
                                    TRADING
                                      WITH THE ENEMY.

                                  

                          

                        

                        
                           

                          No
                            Borrower has engaged, nor does it intend to engage, in
                            any business or activity
                            prohibited by the Trading with the Enemy Act.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    6.25

                                  	
                                    DISCLOSURE.

                                  

                          

                        

                        
                          

                        

                        
                          No
                            representation or warranty made by any Borrower in this
                            Agreement or in any
                            financial statement, report, certificate or any other
                            document furnished in
                            connection herewith or therewith contains any untrue
                            statement of a material
                            fact or omits to state any material fact necessary to
                            make the statements herein
                            or therein not misleading. There is no fact known to
                            any Borrower which such
                            Borrower has not disclosed to Agent in writing with respect
                            to the transactions
                            contemplated by this Agreement which would reasonably
                            be expected to have a
                            Material Adverse Effect.

                        

                        
                          
                            
                            

                          

                          
                            31

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          
                            	
                                  	
                                    6.26

                                  	
                                    DELIVERY
                                      OF ACQUISITION AGREEMENT.

                                  

                          

                        

                        
                          

                        

                        
                          The
                            Acquisition Agreement (including all exhibits, schedules
                            and disclosure letters
                            referred to therein or delivered pursuant thereto, if
                            any) has not been amended
                            or supplemented, nor have any of the provisions thereof
                            been waived, except
                            pursuant to a written agreement or instrument which has
                            heretofore been
                            delivered to and approved by Agent.

                        

                        
                          

                        

                        
                          ARTICLE
                            VII

                        

                        
                          CERTAIN
                            DOCUMENTS TO BE DELIVERED TO AGENT

                        

                        
                          

                        

                        
                          
                            	
                                  	
                                    7.1

                                  	
                                    CLOSING
                                      DELIVERIES.

                                  

                          

                        

                        
                          

                        

                        
                          (a)           As
                            a condition to entering into this Agreement and the other
                            Transaction Documents
                            and making the Term Loan in the Pre-Acquisition Term
                            Loan Amount and any Advance
                            under the Revolving Line of Credit, Borrowers shall deliver,
                            or cause to be
                            delivered, to Agent on the First Closing Date the following
                            items:

                        

                        
                          

                        

                        
                          (i)          Term
                            Note for each Lender;

                        

                        
                          

                        

                        
                          (ii)         Revolving
                            Note for each Lender;

                        

                        
                          

                        

                        
                          (iii)        Secretary's
                            Certificate;

                        

                        
                          

                        

                        
                          (iv)       
                            Officer's Certificate as to accuracy of representations
                            and warranties and
                            availability under the Revolving Facility of at least
                            $25,000,000 on the First
                            Closing Date (after taking into account all disbursements
                            to occur related to
                            the First Closing Date) and stating that no event has
                            occurred that has caused a
                            Material Adverse Effect;

                        

                        
                          (v)         Landlord
                            waiver for the Denver Facility in a form reasonably acceptable
                            to Agent;

                        

                        
                          

                        

                        
                          (vi)        UCC-1s
                            on the Collateral;

                        

                        
                          

                        

                        
                          (vii)       Payoff
                            letters and UCC-3s on outstanding debt being repaid on
                            the First Closing
                            Date;

                        

                        
                          

                        

                        
                          (viii)      Any
                            necessary regulatory approval of any governmental bodies;

                        

                        
                          

                        

                        
                          (ix)         Legal
                            opinion of counsel to Borrowers; and

                        

                        
                          

                        

                        
                          (x)          Payment
                            of all fees and expenses due on the First Closing Date.

                        

                        
                          

                        

                        
                          (b)           As
                            a condition to making the Term Loan in the Acquisition
                            Term Loan Amount,
                            Borrowers shall deliver, or cause to be delivered, to
                            Agent on the Second
                            Closing Date the following items:

                        

                        
                          

                        

                        
                          (i)          Term
                            Note for each Lender;

                        

                        
                          
                            
                            

                          

                          
                            32

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          (ii)         Officer's
                            Certificate as to accuracy of representations and warranties
                            (including with
                            respect to all new Borrowers) and availability under
                            the Revolving Facility of
                            at least $25,000,000 on the Second Closing Date (after
                            taking into account all
                            disbursements to occur related to the Second Closing
                            Date) and stating that no
                            event has occurred that has caused a Material Adverse
                            Effect;

                        

                        
                          

                        

                        
                          (iii)        Updated
                            schedules to this Agreement (which must be acceptable
                            to Agent and each Lender
                            in its sole discretion);

                        

                        
                          

                        

                        
                          (iv)        Guaranty
                            agreements and security agreements for each Consolidated
                            Subsidiary that is not
                            a Borrower;

                        

                        
                          

                        

                        
                          (v)        
                            Legal opinion of counsel to Borrowers (with respect to
                            new
                            Borrowers);

                        

                        
                          

                        

                        
                          (vi)        Acquisition
                            Agreement and evidence of closing deliveries thereunder,
                            which shall be
                            reasonably acceptable to Agent; and

                        

                        
                          

                        

                        
                          (vii)       Payment
                            of all fees and expenses due on the Second Closing Date.

                        

                        
                           

                        

                        
                          
                            	
                                  	
                                    7.2

                                  	
                                    ADVANCE
                                      REQUIREMENTS.

                                  

                          

                        

                        
                           

                          In
                            addition to the provisions of Section 7.1, the following
                            conditions must be met
                            prior to Lenders making any Advance under the Revolving
                            Line of
                            Credit:

                        

                        
                          

                        

                        
                          (a)           All
                            representations and warranties of Borrowers in Article VI shall be true
                            and correct in all material respects on and as of such
                            date, except for
                            representations and warranties expressly stated to relate
                            to a specific earlier
                            date, in which case such representations and warranties
                            shall be true and
                            correct in all material respects as of such earlier date;

                        

                        
                          

                        

                        
                          (b)           Borrowers
                            shall have complied with all of its covenants set forth
                            in this Agreement to
                            have been complied with prior to the time of such Advance;

                        

                        
                          

                        

                        
                          (c)           No
                            Event of Default shall have occurred and be continuing
                            or would occur as a
                            result of such Advance;

                        

                        
                          

                        

                        
                          (d)           All
                            required fees and expenses shall have been paid to Agent;
                            and

                        

                        
                          

                        

                        
                          (e)           Agent
                            shall have received any other documents reasonably requested
                            by
                            it.

                        

                        
                           

                        

                        
                          
                            	
                                  	
                                    7.3

                                  	
                                    ADDITIONAL
                                      DOCUMENTS.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall deliver to Agent, at such times as Agent may reasonably
                            request, any other
                            documents and information reasonably requested by Agent,
                            all in form, content
                            and detail reasonably satisfactory to Agent.

                        

                        
                          
                            
                            

                          

                          
                            33

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          ARTICLE
                            VIII

                        

                        
                          AFFIRMATIVE
                            COVENANTS

                        

                        
                          

                        

                        
                          So
                            long
                            as any part of the Indebtedness remains unpaid, or this
                            Agreement remains in
                            effect, Borrowers shall comply with the covenants contained
                            elsewhere in this
                            Agreement, and with the covenants listed below:

                        

                        
                          

                        

                        
                          
                            	
                                  	
                                    8.1

                                  	
                                    FINANCIAL
                                      INFORMATION.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall furnish to Agent for the benefit of Lenders:

                        

                        
                          

                        

                        
                          (a)           As
                            soon as available and in any event within one hundred
                            twenty (120) days after
                            the end of each Fiscal Year, audited consolidated financial
                            statements of
                            Borrowers as of the end of such year, fairly presenting
                            Borrowers' financial
                            position, which statements shall consist of a balance
                            sheet and related
                            statements of operations, stockholders' equity, and cash
                            flows covering the
                            period of Borrowers' immediately preceding Fiscal Year,
                            which shall be prepared
                            in accordance with GAAP consistently applied during each
                            period involved, and
                            audited by independent certified public accountants reasonably
                            satisfactory to
                            Lenders, together with copies of any management letters
                            provided by said
                            accountants to Borrowers in connection with performing
                            such audit. Such
                            financial statements shall be accompanied by a certificate
                            signed by an
                            Authorized Representative of Borrowers or other Person
                            satisfactory to Lenders
                            in the form of Exhibit E attached hereto and made a part hereof. In
                            addition, as soon as available and in any event within
                            one hundred twenty (120)
                            days after the end of each Fiscal Year, a compliance
                            certificate executed by an
                            Authorized Representative of Borrowers or other Person
                            satisfactory to Lenders
                            in the form of Exhibit F attached hereto and made a part
                            hereof.

                        

                        
                          

                        

                        
                          (b)           As
                            soon as available and in any event within forty-five
                            (45) days after the end of
                            each Fiscal Quarter (except the final quarter of Borrowers'
                            Fiscal Year),
                            unaudited consolidated financial statements of Borrowers
                            as of the end of such
                            quarter, fairly presenting Borrowers' financial position,
                            which statements shall
                            consist of a balance sheet and related statements of
                            operations and cash flows
                            covering the period from the end of the immediately preceding
                            Fiscal Year to the
                            end of such quarter, which shall be prepared in accordance
                            with GAAP,
                            consistently applied during each period involved (subject
                            to year-end
                            adjustments), all in such detail as Lenders may request.
                            Such financial
                            statements shall be accompanied by a certificate signed
                            by an Authorized
                            Representative of Borrowers or other Person satisfactory
                            to Lenders in the form
                            of Exhibit E attached hereto and made a part hereof. In addition,
                            as soon
                            as available and in any event within forty-five (45)
                            days after the end of each
                            Fiscal Quarter (other than the final quarter of Borrowers'
                            Fiscal Year), a
                            compliance certificate executed by an Authorized Representative
                            of Borrowers or
                            other Person satisfactory to Lenders in the form of Exhibit F attached
                            hereto and made a part hereof.

                        

                        
                          

                        

                        
                          (c)           At
                            least thirty (30) days prior to the close of each Fiscal
                            Year of Borrowers, a
                            consolidated plan/budget for the succeeding Fiscal Year
                            prepared in accordance
                            with Borrowers' normal accounting procedures (and which
                            represent management's
                            reasonable estimate of Borrowers' projected performance
                            during such periods)
                            applied on a consistent basis, including, without limitation,
                            (i) forecasted
                            consolidated balance sheets, statements of operations
                            and cash flows of
                            Borrowers as of and for such Fiscal Year, (ii) the amount
                            of forecasted capital
                            expenditures for such Fiscal Year, and (iii) appropriate
                            discussion of the
                            principal assumptions on which such budget/plan is based.

                        

                        
                          
                            
                            

                          

                          
                            34

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          (d)           Promptly
                            after their preparation, copies of any and all proxy
                            statements, financial
                            statements, and reports that AMC sends to its shareholders,
                            and copies of any
                            and all periodic and special reports and registration
                            statements which AMC files
                            with the Securities and Exchange Commission. To the extent
                            that such statement
                            and reports are filed electronically and are available
                            on the website maintained
                            by the Securities and Exchange Commission, such delivery
                            may be effected by
                            reference to such website.

                        

                        
                          

                        

                        
                          (e)           Such
                            additional information as Lenders may from time to time
                            reasonably request
                            regarding the financial and business affairs of any Borrower
                            or any Consolidated
                            Subsidiary.

                        

                        
                           

                        

                        
                          
                            	
                                  	
                                    8.2

                                  	
                                    INVENTORY
                                      IN POSSESSION OF THIRD
                                      PARTIES.

                                  

                          

                        

                        
                          

                        

                        
                          If
                            any
                            Inventory remains in the hands or control of any of Borrowers'
                            agents,
                            finishers, contractors, or processors, or any other Person,
                            Borrowers shall,
                            upon the written request of Agent, notify such party
                            of Lenders' Security
                            Interest in the Inventory and instruct such party to
                            hold such Inventory for the
                            account of Lenders and subject to the instructions of
                            Agent, and provide waivers
                            of any landlord or warehouse liens (or similar liens)
                            in a form reasonably
                            acceptable to Agent.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.3

                                  	
                                    EXAMINATION
                                      OF BOOKS AND RECORDS.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall at all reasonable times during normal business
                            hours, and from time to
                            time, at Borrowers' reasonable expense, permit Agent
                            or its representatives to
                            inspect the Collateral and to examine and make extracts
                            from, or copies of, any
                            of Borrowers' books, ledgers, reports, correspondence,
                            and other
                            records.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.4

                                  	
                                    VERIFICATION
                                      OF COLLATERAL.

                                  

                          

                        

                        
                          

                        

                        
                          Agent
                            shall have the right to verify all or any Collateral
                            in any manner and through
                            any medium Agent may consider appropriate. In the absence
                            of the occurrence and
                            continuance of an Event of Default, Borrowers shall only
                            be required to
                            reimburse the costs of one such examination annually.
                            Borrowers agree to furnish
                            all assistance and information and perform any acts that
                            Agent may reasonably
                            require in connection therewith.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.5

                                  	
                                    TAXES.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall promptly pay and discharge all of its taxes, assessments,
                            and other
                            governmental charges prior to the date on which penalties
                            are attached thereto,
                            establish adequate reserves for the payment of such taxes,
                            assessments, and
                            other governmental charges, make all required withholding
                            and other tax
                            deposits, and, upon request, provide Lenders with receipts
                            or other proof that
                            such taxes, assessments, and other governmental charges
                            have been paid in a
                            timely fashion; provided, however, that nothing contained
                            herein shall require
                            the payment of any tax, assessment, or other governmental
                            charge so long as its
                            validity is being contested in good faith, and by appropriate
                            proceedings
                            diligently conducted, and adequate reserves for the payment
                            thereof have been
                            established.

                        

                        
                          
                            
                            

                          

                          
                            35

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.6

                                  	
                                    LITIGATION.

                                  

                          

                        

                        
                          

                        

                        
                          (a)           Borrowers
                            shall promptly notify Agent in writing of any litigation,
                            proceeding, or
                            counterclaim against, or of any investigation of, any
                            Borrower or any
                            Consolidated Subsidiary if (i) the outcome of such litigation,
                            proceeding,
                            counterclaim, or investigation would reasonably be expected
                            to have a Material
                            Adverse Effect or (ii) such litigation, proceeding, counterclaim,
                            or
                            investigation questions the validity of any Transaction
                            Document or any action
                            taken, or to be taken, pursuant to any Transaction Document.

                        

                        
                          

                        

                        
                          (b)           Borrowers
                            shall furnish to Agent such information regarding any
                            such litigation,
                            proceeding, counterclaim, or investigation as Agent may
                            reasonably request;
                            provided that such information is not required to be
                            provided if doing so, even
                            with all reasonable agreements and/or precautions among
                            the parties, would
                            constitute a waiver of any Borrower's attorney-client
                            privilege.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.7

                                  	
                                    INSURANCE.

                                  

                          

                        

                        
                          

                        

                        
                          (a)           Borrowers
                            shall at all times carry and maintain in full force and
                            effect the insurance
                            policies set forth on Schedule 8.7 attached hereto, and such other
                            insurance as Agent may from time to time reasonably require,
                            in coverage, form,
                            and amount, and issued by insurers, reasonably satisfactory
                            to Borrowers and
                            Agent, including, without limitation: workers compensation
                            or similar insurance;
                            public liability insurance; business interruption insurance;
                            and insurance
                            against such other risks as are usually insured against
                            by business entities of
                            established positive reputation engaged in the same or
                            similar businesses as
                            Borrowers and similarly situated.

                        

                        
                          

                        

                        
                          (b)           Borrowers
                            shall deliver to Agent certificates of insurance or the
                            policies of insurance
                            when requested by Agent, with appropriate endorsements
                            designating Agent as a
                            co-insured and loss payee with respect to the Collateral
                            as its interests may
                            appear as requested by Agent. Each certificate and policy
                            of insurance shall
                            provide that such policy and loss payable clauses may
                            not be cancelled, amended
                            or terminated unless at least thirty (30) days' prior
                            written notice is given to
                            Agent.

                        

                        
                          

                        

                        
                          (c)           Borrowers
                            hereby appoint Agent as their attorney-in-fact, with
                            full authority in the place
                            and stead of Borrowers and in the name of Borrowers,
                            Agent, or otherwise, from
                            time to time in Agent's discretion, to take any actions
                            and to execute any
                            instruments which Agent may deem necessary or desirable
                            to obtain, adjust, make
                            claims under, and otherwise deal with insurance required
                            pursuant hereto and to
                            receive, endorse, and collect any drafts or other instruments
                            delivered in
                            connection therewith; provided, however, that Agent agrees
                            that it will not take
                            any action pursuant to this power of attorney unless
                            Borrowers fail to take any
                            action requested by Agent promptly upon receipt by Borrowers
                            of such
                            request.

                        

                        
                          
                            
                            

                          

                          
                            36

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          8.8           MAINTENANCE
                            OF EXISTENCE; GOOD STANDING: BUSINESS: NEW SUBSIDIARY.

                        

                        
                          

                        

                        
                          (a)           Borrowers
                            shall at all times maintain their existence, and shall
                            maintain ownership of the
                            equity interest of each Consolidated Subsidiary set forth
                            in Schedule
                            6.21; provided, however, that no Borrower other than AMC
                            is required to
                            remain in existence or to maintain the same form of organization
                            if its
                            dissolution or change in structure would not reasonably
                            be expected to have a
                            Material Adverse Effect and at least thirty (30) days'
                            prior written notice of
                            such dissolution or change in structure is given to Agent.

                        

                        
                          

                        

                        
                          (b)           Borrowers
                            shall take all necessary steps to preserve their right
                            to conduct business in
                            all states in which the nature of their business or ownership
                            of their property
                            requires such qualification, except where the failure
                            to be qualified would not
                            reasonably be expected to have a Material Adverse Effect.

                        

                        
                          

                        

                        
                          (c)           Borrowers'
                            principal business shall be the same as the business
                            conducted on the date of
                            this Agreement.

                        

                        
                          

                        

                        
                          (d)           Borrowers
                            shall notify Agent in writing prior to the incorporation,
                            formation, acquisition
                            or organization of any new Consolidated Subsidiary.

                        

                        
                          

                        

                        
                          8.9           PENSION
                            REPORTS.

                        

                        
                          

                        

                        
                          Upon
                            the
                            occurrence of any Pension Event, Borrowers shall furnish
                            to Agent, as soon as
                            possible and, in any event, within thirty (30) days after
                            Borrowers know of such
                            occurrence, the statement of an Authorized Representative
                            of Borrowers setting
                            forth the details of such Pension Event and the action
                            which Borrowers propose
                            to take with respect thereto.

                        

                        
                          

                        

                        
                          8.10         NOTICE
                            OF ADVERSE EVENT OR NON-COMPLIANCE.

                        

                        
                          

                        

                        
                          Borrowers
                            shall notify Agent in writing as soon as possible and
                            in any event within ten
                            (10) days of obtaining knowledge of (a) any failure by
                            any Borrower or any Third
                            Party to comply with any provision of any Transaction
                            Document, and (b) any
                            event or occurrence which has or would reasonably be
                            expected to have a Material
                            Adverse Effect on any Borrower, any Borrower's business
                            or any Borrower's
                            ability to comply with any provision of any Transaction
                            Document.

                        

                        
                          

                        

                        
                          8.11         COMPLIANCE
                            WITH ENVIRONMENTAL LAWS.

                        

                        
                          

                        

                        
                          (a)           Borrowers
                            shall comply with all applicable Environmental Laws except
                            where the failure to
                            so comply would not cause a Material Adverse Effect on
                            a
                            Borrower.

                        

                        
                          

                        

                        
                          (b)           Borrowers
                            shall not cause or permit the unlawful Disposal of Hazardous
                            Substances at any
                            property owned, leased or operated by them or any Consolidated
                            Subsidiary.

                        

                        
                          

                        

                        
                          (c)           Borrowers
                            shall promptly notify Agent in the event of any Release,
                            or threatened Release,
                            of a Hazardous Substance, from any property owned, leased
                            or operated by
                            Borrowers or any Consolidated Subsidiary in violation
                            of Environmental
                            Laws.

                        

                        
                          
                            
                            

                          

                          
                            37

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          (d)           Borrowers
                            shall, at Agent's reasonable written request, provide,
                            at Borrowers' expense,
                            updated Environmental Questionnaires and/or Environmental
                            Reports concerning any
                            property owned, leased or operated by Borrowers or any
                            Consolidated
                            Subsidiary.

                           

                        

                        
                          (e)           Borrowers
                            shall deliver promptly to Agent: (i) copies of any documents
                            received from the
                            United States Environmental Protection Agency or any
                            state, county, or municipal
                            environmental or health agency alleging that Borrowers'
                            or any Consolidated
                            Subsidiary has violated or is liable under Environmental
                            Laws; and (ii) copies
                            of any documents submitted by Borrowers or any Consolidated
                            Subsidiary to the
                            United States Environmental Protection Agency or any
                            state, county, or municipal
                            environmental or health agency concerning any violation
                            of any Environmental
                            Law.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.12

                                  	
                                    DEFEND
                                      COLLATERAL.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall use commercially reasonable efforts to defend Agent's
                            interests in the
                            Collateral against all other parties (other than Lenders).

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.13

                                  	
                                    USE
                                      OF PROCEEDS.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall use the proceeds of Advances under the Revolving
                            Line of Credit, any
                            Letters of Credit, and the Term Loan solely for Borrowers'
                            working capital,
                            acquisitions (including payments under the Acquisition
                            Agreement), the repayment
                            of existing debt, and for such other legal and proper
                            corporate purposes as are
                            consistent with all applicable laws, Borrowers' organizational
                            documents,
                            resolutions of Borrowers' managers and/or board of directors,
                            and the terms of
                            this Agreement.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.14

                                  	
                                    COMPLIANCE
                                      WITH LAWS.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall comply with all applicable laws, rules, regulations,
                            and other legal
                            requirements with respect to its business and the use,
                            maintenance, and
                            operation of the real and personal property owned or
                            leased by them in the
                            conduct of their business except where noncompliance
                            would not reasonably be
                            expected to have a Material Adverse Effect.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.15

                                  	
                                    MAINTENANCE
                                      OF PROPERTY.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall maintain their property, including, without limitation,
                            the Collateral, in
                            good condition and repair (ordinary wear and tear excepted).

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.16

                                  	
                                    LICENSES.
                                      PERMITS. ETC.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall maintain all of their franchises, grants, authorizations,
                            licenses,
                            permits, consents, certificates, and orders necessary
                            to the conduct of their
                            businesses in full force and effect, except where any
                            failure to comply with the
                            foregoing would not reasonably be expected to have a
                            Material Adverse
                            Effect.

                        

                        
                          
                            
                            

                          

                          
                            38

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.17

                                  	
                                    TRADEMARKS
                                      AND PATENTS.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall use commercially reasonable efforts to maintain
                            all of their trademarks,
                            trademark rights, patents, patent rights, licenses, permits,
                            trade names, trade
                            name rights, licenses and approvals, including, without
                            limitation, those
                            described in Schedule 5(d). in full force and effect until their
                            respective expiration dates or termination, except to
                            the extent Borrowers
                            determine that any such items are not material to the
                            conduct of their
                            businesses. Within thirty (30) days of the issuance of
                            any new trademark
                            registration to Borrowers or the acquisition or issuance
                            or any patent or
                            copyright registrations or the filing of any application
                            for a trademark, patent
                            or copyright, Borrowers shall deliver to Agent copies
                            of the filings relating to
                            such acquisition or issuance.

                        

                        
                          

                        

                        
                          
                            	
                                  	
                                    8.18

                                  	
                                    ERISA.

                                  

                          

                        

                        
                          

                        

                        
                          Borrowers
                            shall comply in all material respects with the provisions
                            of ERISA and the
                            Internal Revenue Code with respect to each Pension Plan.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.19

                                  	
                                    ACTIVITIES
                                      OF CONSOLIDATED
                                      SUBSIDIARIES.

                                  

                          

                        

                        
                          

                        

                        
                          Unless
                            the provisions of this Section 8.19 are expressly waived
                            by Lenders in writing,
                            Borrowers shall cause each Consolidated Subsidiary to
                            comply with Articles 8 and
                            9 hereof, as applicable, and to enter into Third Party
                            security agreements and
                            any other documentation necessary to evidence its obligations
                            to Lenders,
                            including the obligation to grant a security interest
                            in all of its property to
                            Lenders to secure the Loans.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.20

                                  	
                                    DEPOSIT
                                      OF PROCEEDS OF
                                      COLLATERAL.

                                  

                          

                        

                        
                          

                        

                        
                          All
                            proceeds of Collateral shall be deposited by Borrowers
                            into either (i) a lockbox
                            account, dominion account or such other "blocked account"
                            ("Blocked Accounts"),
                            or (ii) depository accounts ("Depository Accounts"),
                            established at the Agent or
                            other depository institution reasonably acceptable to
                            Agent for the deposit of
                            such proceeds. All funds deposited in such Blocked Accounts
                            shall immediately
                            become the property of Agent. Alternatively, Agent may
                            establish Depository
                            Accounts in the name of Agent at a bank or banks for
                            the deposit of such funds
                            and Borrowers shall deposit all proceeds of Collateral
                            or cause same to be
                            deposited, in kind, in such Depository Accounts of Agent
                            in lieu of depositing
                            same to the Blocked Accounts.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    8.21

                                  	
                                    GOVERNMENT
                                      RECEIVABLES.

                                  

                          

                        

                        
                          

                        

                        
                          To
                            the
                            extent requested by Agent, Borrowers shall take all steps
                            necessary to protect
                            Agent's interest in the Collateral under the Federal
                            Assignment of Claims Act,
                            the UCC and all other applicable state or local statutes
                            or ordinances and
                            deliver to Agent appropriately endorsed, any instrument
                            or chattel paper
                            connected with any Account constituting Collateral arising
                            out of contracts
                            between any Borrower and the United States, any state
                            or any department, agency
                            or instrumentality of any of them.

                        

                        
                          
                            
                            

                          

                          
                            39

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          ARTICLE
                            IX

                        

                        
                          NEGATIVE
                            COVENANTS

                        

                        
                          

                        

                        
                          So
                            long
                            as any part of the Indebtedness remains unpaid or this
                            Agreement remains in
                            effect, each Borrower, without the prior written consent
                            of Lenders, shall
                            not:

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.1

                                  	
                                    LOCATION
                                      OF INVENTORY. EQUIPMENT. AND BUSINESS
                                      RECORDS.

                                  

                          

                        

                        
                           

                          Except
                            for property moved in the ordinary course of business
                            and which is returned
                            promptly thereafter, move the Inventory, Equipment, or
                            the records concerning
                            the Collateral from the locations specified in Sections 6.3, 6.6 and
6/7.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.2

                                  	
                                    BORROWED
                                      MONEY.

                                  

                          

                        

                        
                          

                        

                        
                          Create,
                            incur, assume, or suffer to exist any liability for borrowed
                            money owed to any
                            person other than a Borrower or Consolidated Subsidiary
                            thereof, except (a) for
                            customary trade payables entered into in the ordinary
                            course of Borrower's
                            business, (b) for lease or purchase or other financing
                            or refinancing of
                            Aircraft (including the equipment that is a part thereof);
                            (c) Debt identified
                            on Schedule 9.2 or any refinancing thereof, (d) Debt incurred
                            or assumed
                            in connection with the Acquisition Agreement or other
                            acquisitions permitted
                            under Section 9.5(a); (e) other borrowed money indebtedness
                            for informational
                            technologies systems not to exceed $5,000,000 in the
                            aggregate, or (f) for
                            amounts owed to Lenders.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.3

                                  	
                                    SECURITY
                                      INTEREST AND OTHER
                                      ENCUMBRANCES.

                                  

                          

                        

                        
                          

                        

                        
                          Create,
                            incur, assume, or suffer to exist any Lien upon any of
                            its properties or assets,
                            whether now owned or hereafter acquired, except for Permitted
                            Encumbrances.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.4

                                  	
                                    USE
                                      OF COLLATERAL.

                                  

                          

                        

                        
                          

                        

                        
                          Use
                            the
                            Collateral in violation of any provision of the Transaction
                            Documents, any
                            applicable statute, regulation, or ordinance or any policy
                            insuring the
                            Collateral, except for any such violation that would
                            not have a Material Adverse
                            Effect.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.5

                                  	
                                    MERGERS.
                                      CONSOLIDATIONS. SALES OR
                                      ACQUISITIONS.

                                  

                          

                        

                        
                          

                        

                        
                          (a)             Merge
                            or consolidate with or into any corporation or other
                            entity or consummate any
                            purchase or other acquisition of the capital stock or
                            equity interests in, or
                            all or any portion of the property or assets or business
                            of, any other Person,
                            except that (i) any Borrower may merge with a Consolidated
                            Subsidiary or another
                            Borrower in a transaction in which a Borrower is the
                            surviving entity, (ii) the
                            transactions contemplated by the Acquisition Agreement
                            may be completed, and
                            (iii) any Borrower may acquire all or a substantial portion
                            of the assets, stock
                            or other ownership interest of any Person if (A) the
                            Person being acquired is
                            engaged in, or the assets being acquired are used in,
                            the same business as is
                            permitted under Section 8.8(c) or another business reasonably
                            related thereto,
                            (B) at the time of and after giving effect to such acquisition,
                            no Default or
                            Event of Default would exist, (C) after giving effect
                            to such transaction,
                            Borrowers shall be in compliance with Section 9.10, based
                            on Borrowers'
                            projected operations of the combined entity; (D) the
                            total consideration paid by
                            Borrowers is less than $10,000,000; and (E) Agent obtains
                            a first priority
                            perfected security interest in the assets comprising
                            Collateral of the acquired
                            entity, subject to Permitted Encumbrances;

                        

                        
                          
                            
                            

                          

                          
                            40

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          (b)            enter
                            into joint ventures or partnerships with any Person that
                            require a contribution
                            of capital of any kind in excess of $2,000,000 in the
                            aggregate (taking into
                            account all joint ventures or partnerships formed from
                            and after the First
                            Closing Date) from the Borrowers;

                           

                        

                        
                          (c)            convey,
                            lease, or sell all or any material portion of its property,
                            assets or business,
                            including the Collateral, except for (i) the sale of
                            Inventory in the ordinary
                            course of its business and (ii) sales of assets for a
                            fair market value
                            consideration in accordance with the provisions of Section
                            2.2(b)(ii) and
                            Section 8.19 of this Agreement.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.6

                                  	
                                    RESTRICTED
                                      PAYMENT.

                                  

                          

                        

                        
                          

                        

                        
                          Make
                            any
                            Restricted Payment, other than, as long as no Event of
                            Default has occurred or
                            would occur as a result thereof (including compliance
                            with all financial
                            covenants after giving effect to such payment), repurchases
                            of outstanding stock
                            or other equity interests of AMC in amounts not to exceed
                            $5,000,000 in any
                            Fiscal Year.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.7

                                  	
                                    INVESTMENTS
                                      AND ADVANCES.

                                  

                          

                        

                        
                          

                        

                        
                          Make
                            any
                            investment in, or advances to, any other Person, except
                            (a) advance payments or
                            deposits against purchases made in the ordinary course
                            of a Borrower's regular
                            business; (b) direct obligations of or guaranteed by
                            the United States of
                            America or any agency thereof; (c) commercial paper with
                            maturities of not more
                            than 180 days and a published rating of not less than
                            A-l or P-l (or the
                            equivalent rating); (d) money market mutual funds that
                            invest in direct
                            obligations of or guaranteed by the United States of
                            America or any agency
                            thereof; (e) certificates of deposit with any commercial
                            bank organized or
                            licensed under the laws of the United States of America
                            or of any state thereof
                            and having a combined capital and surplus of at least
                            $250,000,000; (f) any
                            investments in, or advances to, the Consolidated Subsidiaries;
                            (g) investments
                            permitted by Section 9.5(a); or (h) existing investments
                            set forth on
Schedule 9.7.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.8

                                  	
                                    GUARANTIES.

                                  

                          

                        

                        
                          

                        

                        
                          Except
                            as
                            set forth on Schedule 9.8. become a guarantor, a surety, or otherwise
                            liable for the debts or other obligations of any other
                            Person (other than a
                            Borrower or a Consolidated Subsidiary), whether by guaranty
                            or suretyship
                            agreement, agreement to purchase indebtedness, agreement
                            for furnishing funds
                            through the purchase of goods, supplies, or services
                            (or by way of stock
                            purchase, capital contribution, advance, or loan) for
                            the purpose of paying or
                            discharging indebtedness, or otherwise, except as an
                            endorser of instruments for
                            the payment of money deposited to its bank account for
                            collection in the
                            ordinary course of business.

                        

                        
                          

                        

                        
                          
                            	
                                     

                                  	
                                    9.9

                                  	
                                    NAME
                                      CHANGE.

                                  

                          

                        

                        
                          

                        

                        
                          Change
                            its name or its state of formation without giving at
                            least thirty (30) days
                            prior written notice of its proposed new name or state
                            of formation to Agent,
                            together with delivery to Agent
                            of
                            UCC-1 financing statements reflecting Borrower's new
                            name or state of formation
                            and organizational number, if any, all in form and substance
                            reasonably
                            satisfactory to Agent.
                            
                              
                                 

                                
                                  
                                    
                                    

                                  

                                  
                                    41

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                                 

                              

                              
                                
                                  	
                                        	
                                          9.10

                                        	
                                          FINANCIAL
                                            COVENANTS.

                                        

                                

                              

                              
                                

                              

                              
                                Fail
                                  to
                                  comply with the following financial covenants:

                              

                              
                                

                              

                              
                                (a)           Maximum
                                  Total Adjusted Debt to EBITDAR. The Total Adjusted Debt to Consolidated
                                  EBITDAR Ratio at the end of each Fiscal Quarter
                                  shall not exceed 4.00 to
                                  1.00.

                              

                              
                                

                              

                              
                                (b)           Minimum
                                  Fixed Charge Coverage Ratio. Borrowers' Fixed Charge Coverage Ratio at
                                  the
                                  end of each Fiscal Quarter shall not be less than
                                  the
                                  following:

                              

                              
                                

                              

                              
                                	
                                        Period

                                      	
                                        Ratio

                                      
	 	 
	
                                        From
                                          the First Closing Date until September30,
                                          2008

                                      	
                                        1.05
                                          to 1.00

                                      
	
                                        From
                                          and after September 30, 2008

                                      	
                                        1.10
                                          to 1.00

                                      

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          9.11

                                        	
                                          AGREEMENTS
                                            WITH AFFILIATES.

                                        

                                

                              

                              
                                

                              

                              
                                Enter
                                  into any agreement or transaction with any Affiliate
                                  or any Person that directly
                                  or indirectly owns thirty percent (30%) or more
                                  of a Borrower or a Third Party
                                  or any Person thirty percent (30%) or more of the
                                  equity of which is owned by a
                                  Borrower or a Third Party except: (a) agreements
                                  or transactions in the ordinary
                                  course of business which contain terms that are
                                  no less favorable to Borrowers
                                  than commercially reasonable terms; or (b) agreements
                                  or transactions that have
                                  the prior written consent of Lenders.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          9.12

                                        	
                                          ANTI-TERRORISM
                                            LAWS.

                                        

                                

                              

                              
                                

                              

                              
                                No
                                  Borrower shall, until satisfaction in full of the
                                  Indebtedness and termination
                                  of this Agreement, nor shall it permit any Affiliate
                                  or agent
                                  to:

                              

                              
                                

                              

                              
                                (a)           Conduct
                                  any business or engage in any transaction or dealing
                                  with any Blocked Person,
                                  including the making or receiving any contribution
                                  of funds, goods or services
                                  to or for the benefit of any Blocked Person.

                              

                              
                                

                              

                              
                                (b)           Deal
                                  in, or otherwise engage in any transaction relating
                                  to, any property or
                                  interests in property blocked pursuant to the Executive
                                  Order No.
                                  13224.

                              

                              
                                

                              

                              
                                (c)           Engage
                                  in or conspire to engage in any transaction that
                                  evades or avoids, or has the
                                  purpose of evading or avoiding, or attempts to
                                  violate, any of the prohibitions
                                  set forth in the Executive Order No. 13224, the
                                  USA PATRIOT Act or any other
                                  Anti-Terrorism Law. Borrowers shall deliver to
                                  Lenders any certification or
                                  other evidence requested from time to time by any
                                  Lender in its sole discretion,
                                  confirming Borrowers' compliance with this section.

                              

                              
                                
                                  
                                  

                                

                                
                                  42

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                
                                  	
                                        	
                                          9.13

                                        	
                                          TRADING
                                            WITH THE ENEMY ACT.

                                        

                                

                              

                              
                                

                              

                              
                                Engage
                                  in
                                  any business or activity in violation of the Trading
                                  with the Enemy
                                  Act.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          9.14

                                        	
                                          ADDITIONAL
                                            AGREEMENTS.

                                        

                                

                              

                              
                                

                              

                              
                                (a)            Enter
                                  into any other agreement that contains any covenants
                                  more restrictive on
                                  Borrowers than those set forth in this Agreement;
                                  or

                              

                              
                                

                              

                              
                                (b)            Enter
                                  into any contract or agreement that would prohibit
                                  Agent or the Lenders from
                                  acquiring a Lien on, or a collateral assignment
                                  of, any of the property or
                                  assets of a Borrower (other than a contract or
                                  agreement entered into in
                                  connection with the purchase or lease of fixed
                                  assets that prohibits Liens on,
                                  or collateral assignment of, such fixed assets).

                              

                              
                                

                              

                              
                                ARTICLE
                                  X

                                EVENTS
                                  OF
                                  DEFAULT

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          10.1

                                        	
                                            EVENTS
                                            OF DEFAULT.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  occurrence of any one or more of the following
                                  events shall constitute an event
                                  of default (individually, an "Event of Default"
                                  and, collectively, "Events of
                                  Default"):

                              

                              
                                

                              

                              
                                (a)           Nonpayment.
                                  Nonpayment when due of any principal or interest,
                                  or of any premium, fee, cost,
                                  or expense due under this Agreement or the other
                                  Transaction
                                  Documents.

                              

                              
                                

                              

                              
                                (b)           Affirmative
                                  Covenants. Default in the observance of any of the covenants
                                  or agreements
                                  of Borrowers contained in Article VIII which is not remedied within
                                  fifteen (15) days after the later of (i) such default
                                  or (ii) the date Borrowers
                                  learn of such default, but in any event within
                                  thirty (30) days after such
                                  default.

                              

                              
                                

                              

                              
                                (c)           Negative
                                  Covenants. Default in the observance of any of the covenants
                                  or agreements
                                  of Borrowers contained in Article IX.

                              

                              
                                

                              

                              
                                (d)           Other
                                  Covenants. Default in the observance of any of the other
                                  covenants or
                                  agreements of Borrowers contained in the Transaction
                                  Documents (other than as
                                  referenced in Section 10.1(a) - (c)), or in any
                                  other agreement with Lenders
                                  which is not remedied by the earlier of ten (10)
                                  days after (i) notice thereof
                                  by Agent to Borrowers, or (ii) the date Borrowers
                                  were required to give notice
                                  to Lenders.

                              

                              
                                

                              

                              
                                (e)           Cessation
                                  of Business or Voluntary Insolvency Proceedings. The (i) cessation of
                                  operations of Borrowers' business as conducted
                                  on the date of this Agreement;
                                  (ii) filing by any Borrower of a petition or request
                                  for liquidation,
                                  reorganization, arrangement, adjudication as a
                                  bankrupt, relief as a debtor, or
                                  other relief under the bankruptcy, insolvency,
                                  or similar laws of the United
                                  States of America or any state or territory thereof
                                  or any foreign jurisdiction
                                  now or hereafter in effect; (iii) making by any
                                  Borrower of a general assignment
                                  for the benefit of creditors; (iv) consent by any
                                  Borrower to the appointment of
                                  a receiver or trustee, including, without limitation,
                                  a "custodian," as defined
                                  in the Federal Bankruptcy Code, for any Borrower
                                  or any Borrowers' assets; or
                                  (v) execution by any Borrower of a consent to any
                                  other type of insolvency
                                  proceeding (under the Federal Bankruptcy Code or
                                  other insolvency
                                  laws).

                              

                              
                                
                                  
                                  

                                

                                
                                  43

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                (f)           Involuntary
                                  Insolvency Proceedings. (i) The appointment of a receiver, trustee,
                                  custodian, or officer performing similar functions,
                                  including, without
                                  limitation, a "custodian," as defined in the Federal
                                  Bankruptcy Code, for any
                                  Borrower or any Borrowers' assets; or the filing
                                  against any Borrower of a
                                  request or petition for liquidation, reorganization,
                                  arrangement, adjudication
                                  as a bankrupt, or other relief under the bankruptcy,
                                  insolvency, or similar laws
                                  of the United States of America, any state or territory
                                  thereof, or any foreign
                                  jurisdiction now or hereafter in effect; or of
                                  any other type of insolvency
                                  proceeding (under the Federal Bankruptcy Code or
                                  other insolvency laws) shall be
                                  instituted against any Borrower; and (ii) such
                                  appointment shall not be vacated,
                                  or such petition or proceeding shall not be dismissed,
                                  within ninety (90) days
                                  after such appointment, filing, or institution.

                              

                              
                                

                              

                              
                                (g)           Other
                                  Indebtedness and Agreements. Failure by any Borrower to pay, when due
                                  (or,
                                  if permitted by the terms of any applicable documentation,
                                  within any applicable
                                  grace period) any Debt (including trade or other
                                  accounts payable) owing by any
                                  Borrower to Lenders or any other Person under an
                                  agreement with outstanding
                                  obligations exceeding $1,000,000 (the "Material
                                  Debt Agreements") (other than
                                  the Indebtedness incurred pursuant to this Agreement)
                                  whether such Debt shall
                                  become due by scheduled maturity, by required prepayment,
                                  by acceleration, by
                                  demand, or otherwise, or failure by any Borrower
                                  to perform any term, covenant,
                                  or agreement on its part to be performed under
                                  any agreement or instrument
                                  (other than a Transaction Document) evidencing
                                  or securing or relating to any
                                  Material Debt Agreement when required to be performed
                                  if the effect of such
                                  failure is to permit the holder to accelerate the
                                  maturity of such Debt
                                  (including trade or other accounts payable); provided
                                  that it shall not be a
                                  default under this Agreement if such Borrower has
                                  not paid any amount due to
                                  anyone other than Lenders which it is currently
                                  contesting in good faith and for
                                  which adequate reserves have been set aside in
                                  the event such contest is
                                  unsuccessful.

                              

                              
                                

                              

                              
                                (h)           Judgments.
                                  Any judgment or judgments against any Borrower
                                  in an amount in excess of
                                  $500,000 (other than any judgment for which such
                                  Borrower is fully insured)
                                  shall remain unpaid, unstayed on appeal, undischarged,
                                  unbonded, or undismissed
                                  for a period of twenty (20) days.

                              

                              
                                

                              

                              
                                (i)           Pension
                                  Default. (i) Any Reportable Event which Lenders shall
                                  determine in good
                                  faith constitutes sustainable grounds for the termination
                                  of any Pension Plan by
                                  the Pension Benefit Guaranty Corporation, or for
                                  the appointment by an
                                  appropriate United States district court of a trustee
                                  to administer any Pension
                                  Plan, shall occur and shall continue thirty (30)
                                  days after written notice
                                  thereof to Borrowers by Lenders; or (ii) the Pension
                                  Benefit Guaranty
                                  Corporation shall institute proceedings to terminate
                                  any Pension Plan or to
                                  appoint a trustee to administer any Pension Plan;
                                  or a trustee shall be
                                  appointed by an appropriate United States district
                                  court to administer any
                                  Pension Plan; or (iii) except where such termination
                                  or withdrawal would not
                                  reasonably be expected to have a Material Adverse
                                  Effect, (A) any Pension Plan
                                  shall be terminated, or (B) any Borrower or any
                                  Consolidated Subsidiary shall
                                  withdraw from a Pension Plan in a complete withdrawal
                                  or a partial withdrawal;
                                  or (iv) there shall arise vested unfunded liabilities
                                  under any Pension Plan
                                  that, in the good faith opinion of Lenders, have
                                  or will or might reasonably be
                                  expected to have a Material Adverse Effect on the
                                  finances or operations of any
                                  Borrower; or (v) any Borrower or any Consolidated
                                  Subsidiary shall fail to pay
                                  to any Pension Plan any contribution which it is
                                  obligated to pay under the
                                  terms of such plan or any agreement or which is
                                  required to meet statutory
                                  minimum funding standards and such delinquency
                                  shall continue thirty (30) days
                                  after written notice thereof to Borrowers by Agent.

                              

                              
                                
                                  
                                  

                                

                                
                                  44

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                (j)             Collateral;
                                  Impairment. (a) A notice of Lien (other than a Permitted
                                  Encumbrance), levy,
                                  assessment, injunction or attachment is issued
                                  against any of the Collateral
                                  which is not stayed or lifted within forty (40)
                                  days; (b) there shall occur with
                                  respect to the Collateral any material loss, theft,
                                  or damage not adequately
                                  covered by insurance; or (c) a material portion
                                  of the Collateral shall be
                                  seized or taken by a governmental body.

                              

                              
                                

                              

                              
                                (k)             Third
                                  Party Default. There shall occur with respect to any Third
                                  Party, including,
                                  without limitation, any Consolidated Subsidiary
                                  (i) any event described in
                                  Section 10.1(e), 10.1(f), 10.1(g), or 10.1(h);
                                  (ii) any pension default event
                                  such as described in Section 10.1 (i) with respect
                                  to any pension plan
                                  maintained by such Third Party; or (iii) any breach
                                  by a Third Party of the
                                  terms of any agreement between such Third Party
                                  and Lenders.

                              

                              
                                

                              

                              
                                (1)             Representations.
                                  Any certificate, statement, representation, warranty,
                                  or financial statement
                                  furnished by, or on behalf of, Borrowers or any
                                  Third Party, pursuant to, or in
                                  connection with, this Agreement (including, without
                                  limitation, representations
                                  and warranties contained herein) or as an inducement
                                  to Lenders to enter into
                                  this Agreement or any other lending agreement with
                                  any Borrower shall prove to
                                  have been false in any material respect at the
                                  time as of which the facts
                                  therein set forth were certified or to have omitted
                                  any substantial contingent
                                  or unliquidated liability or claim against any
                                  Borrower or any such Third Party,
                                  or if on the date of the execution of this Agreement
                                  there shall have been any
                                  materially adverse change in any of the facts disclosed
                                  by any such statement or
                                  certificate which shall not have been disclosed
                                  in writing to Lenders at, or
                                  prior to, the time of such execution.

                              

                              
                                

                              

                              
                                (m)             Challenge
                                  to Validity. Borrowers or any Third Party commences any
                                  action or proceeding
                                  to contest the validity or enforceability of any
                                  Transaction Document or any
                                  lien or security interest granted or obligations
                                  evidenced by any Transaction
                                  Document.

                              

                              
                                

                              

                              
                                (n)             Termination.
                                  Any Third Party terminates or attempts to terminate
                                  any guaranty or other
                                  Transaction Document executed by such Third Party.

                              

                              
                                

                              

                              
                                (o)             Material
                                  Adverse Effect. A Material Adverse Effect occurs with respect
                                  to all
                                  Borrowers, taken as a whole.

                              

                              
                                

                              

                              
                                (p)             Change
                                  of Control. A Change of Control shall occur.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          10.2

                                        	
                                          EFFECTS
                                            OF AN EVENT OF DEFAULT.

                                        

                                

                              

                              
                                

                              

                              
                                (a)           Upon
                                  the happening of one or more Events of Default
                                  (except an Event of Default under
                                  either Section 10.1(e) or 10.1(f)), Required Lenders
                                  may declare any obligations
                                  they may have hereunder to be cancelled, and all
                                  Indebtedness then outstanding
                                  to be immediately due and payable, together with
                                  all interest thereon and costs
                                  and expenses accruing under the Transaction Documents.
                                  Upon such declaration,
                                  any obligations Lenders may have hereunder shall
                                  be immediately cancelled, and
                                  the Indebtedness then outstanding shall become
                                  immediately due and payable
                                  without presentation, demand, or further notice
                                  of any kind to
                                  Borrowers.

                              

                              
                                
                                  
                                  

                                

                                
                                  45

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                (b)           Upon
                                  the happening of one or more Events of Default
                                  under Section 10.1(e) or 10.1(f),
                                  Lenders' obligations hereunder shall be cancelled
                                  immediately, automatically,
                                  and without notice, and the Indebtedness then outstanding
                                  shall become
                                  immediately due and payable without presentation,
                                  demand, or notice of any kind
                                  to the Borrowers.

                              

                              
                                

                              

                              
                                ARTICLE
                                  XI

                              

                              
                                APPOINTMENT
                                  AND AUTHORIZATION OF AGENT

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.1

                                        	
                                          APPOINTMENT
                                            AND AUTHORIZATION.

                                        

                                

                              

                              
                                

                              

                              
                                Each
                                  Lender irrevocably appoints and authorizes the
                                  Agent to take such action as
                                  agent on its behalf and to exercise such powers
                                  under this Agreement and the
                                  other Transaction Documents as are delegated to
                                  the Agent by the terms hereof or
                                  thereof, together with all such powers as are reasonably
                                  incidental thereto.
                                  Each Lender hereby agrees to the provisions of
                                  each of the Transaction Documents
                                  and agrees to be bound thereby and authorizes the
                                  Agent to enter into or accept
                                  each of the foregoing on its behalf.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.2

                                        	
                                          AGENT
                                            AND AFFILIATES.

                                        

                                

                              

                              
                                

                              

                              
                                KeyBank
                                  shall have the same rights and powers under this
                                  Agreement as any other Lender
                                  and may exercise or refrain from exercising the
                                  same as though it were not the
                                  Agent, and KeyBank and its Affiliates may accept
                                  deposits from, lend money to,
                                  and generally engage in any kind of business with
                                  the Borrowers, or any of their
                                  Affiliates, as if it were not the Agent hereunder.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.3

                                        	
                                          ACTION
                                            BY AGENT.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  obligations of the Agent hereunder are only those
                                  expressly set forth herein.
                                  All notices, payments, fees or other documents
                                  or items received by Agent from
                                  Borrowers shall be for the benefit of the Lenders,
                                  and Agent shall promptly,
                                  after receipt, deliver any documents or pro rata
                                  portion of fees and payments to
                                  each Lender (except where, pursuant to this Agreement,
                                  any Lender is not
                                  entitled to any fee or payment or is entitled to
                                  a lesser or greater portion of
                                  any fee or payment). Without limiting the generality
                                  of the foregoing, the Agent
                                  shall not be required to take any action with respect
                                  to any Event of Default,
                                  except as expressly provided in this Agreement.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.4

                                        	
                                          CONSULTATION
                                            WITH EXPERTS.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  Agent
                                  may consult with legal counsel, independent public
                                  accountants and other experts
                                  selected by it and shall not be liable for any
                                  action taken or omitted to be
                                  taken by it in good faith in accordance with the
                                  advice of such counsel,
                                  accountants or experts.

                              

                              
                                
                                  
                                  

                                

                                
                                  46

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                
                                  	
                                        	
                                          11.5

                                        	
                                          LIABILITY
                                            OF AGENT.

                                        

                                

                              

                              
                                

                              

                              
                                Neither
                                  the Agent nor any of its directors, officers, agents
                                  or employees shall be
                                  liable to any other Lender for any action taken
                                  or not taken by it in connection
                                  with any of the Transaction Documents (a) with
                                  the consent or at the request of
                                  the Required Lenders, or (b) in the absence of
                                  its own gross negligence or
                                  willful misconduct. Neither the Agent nor any of
                                  its directors, officers, agents
                                  or employees shall be responsible for or have any
                                  duty to ascertain, inquire
                                  into or verify (i) any statement, warranty or representation
                                  made in connection
                                  with this Agreement or any borrowing hereunder;
                                  (ii) the performance or
                                  observance of any of the covenants or agreements
                                  of the Borrowers; (iii) the
                                  satisfaction of any condition specified herein,
                                  except receipt of items required
                                  to be delivered to the Agent; or (iv) the validity,
                                  effectiveness or genuineness
                                  of any of the Transaction Documents or any other
                                  instrument or writing furnished
                                  in connection herewith. The Agent shall not incur
                                  any liability by acting in
                                  reliance upon any notice, consent, certificate,
                                  statement, or other writing
                                  (which may be a bank wire, telex or similar writing)
                                  believed by it to be
                                  genuine or to be signed by the proper party or
                                  parties.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.6

                                        	
                                          INDEMNIFICATION.

                                        

                                

                              

                              
                                

                              

                              
                                Each
                                  Lender, including KeyBank, shall, ratably based
                                  on its Applicable Commitment
                                  Percentage, indemnify the Agent (to the extent
                                  not reimbursed by the Borrowers)
                                  against any reasonable cost or expense (including
                                  counsel fees and
                                  disbursements), or any claim, demand, action, loss
                                  or liability (except such as
                                  result from the Agent's gross negligence or willful
                                  misconduct) that the Agent
                                  may suffer or incur in connection with any of the
                                  Transaction Documents or any
                                  action taken or omitted by the Agent thereunder.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.7

                                        	
                                          CREDIT
                                            DECISION.

                                        

                                

                              

                              
                                

                              

                              
                                Each
                                  Lender acknowledges that it has, independently
                                  and without reliance upon the
                                  Agent or any other Lender, and based on such documents
                                  and information as it has
                                  deemed appropriate, made its own credit analysis
                                  and decision to enter into this
                                  Agreement. Each Lender also acknowledges 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 decisions in taking or not taking any action
                                  under any of the Transaction
                                  Documents.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          11.8

                                        	
                                          SUCCESSOR
                                            AGENT.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  Agent
                                  may resign at any time by giving written notice
                                  thereof to the Lenders and the
                                  Borrowers. Upon any such resignation, the Required
                                  Lenders shall have the right
                                  to appoint a successor Agent. If no successor Agent
                                  shall have been so appointed
                                  by the Required Lenders, and shall have accepted
                                  such appointment, within thirty
                                  (30) days after the retiring Agent has given notice
                                  of resignation, then the
                                  retiring Agent may, on behalf of the Lenders, appoint
                                  a successor Agent, which
                                  shall be a commercial bank organized or licensed
                                  under the laws of the United
                                  States of America or of any state thereof and having
                                  a combined capital and
                                  surplus of at least $250,000,000. Upon the acceptance
                                  of its appointment as
                                  Agent hereunder by a successor Agent, such successor
                                  Agent shall thereupon
                                  succeed to and become vested with all the rights
                                  and duties of the retiring
                                  Agent, and the retiring Agent shall be discharged
                                  from its duties and
                                  obligations hereunder and under the other Transaction
                                  Documents. After any
                                  retiring Agent's resignation hereunder as Agent,
                                  the provisions of this Article
                                  shall inure to its benefit as to any actions taken
                                  or omitted to be taken by it
                                  while it was Agent.

                              

                              
                                
                                  
                                  

                                

                                
                                  47

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                
                                  	
                                        	
                                          11.9

                                        	
                                          ASSIGNMENT
                                            BY LENDERS.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  Lenders may make assignments of their Revolving
                                  Credit Commitment to any
                                  Eligible Assignee in accordance with the procedure
                                  set forth in the definition
                                  thereof, which shall include, in the circumstances
                                  set forth therein, consent of
                                  Borrowers; provided that such assignments are in
                                  minimum amounts approved by the
                                  Agent, which approval shall not be unreasonably
                                  withheld. The Lenders will also
                                  be permitted to sell participation rights to any
                                  Eligible Assignee in accordance
                                  with such procedures. If any Lender makes an assignment
                                  as set forth in this
                                  section, upon such assignment an assignment fee
                                  equal to $3,500 shall be payable
                                  to the Agent by the assigning Lender.

                              

                              
                                

                              

                              
                                ARTICLE
                                  XII

                              

                              
                                AGENT'S
                                  RIGHTS AND REMEDIES.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.1

                                        	
                                          GENERALLY.

                                        

                                

                              

                              
                                

                              

                              
                                Agent's
                                  rights and remedies with respect to the Collateral,
                                  in addition to those rights
                                  granted herein and in any other agreement between
                                  Borrowers and Lenders now or
                                  hereafter in effect, shall be those of a secured
                                  party under the UCC and under
                                  any other applicable law.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.2

                                        	
                                          NOTIFICATION
                                            OF ACCOUNT DEBTORS.

                                        

                                

                              

                              
                                

                              

                              
                                Upon
                                  the
                                  occurrence and during the continuance of an Event
                                  of Default, Agent may, at any
                                  time and from time to time, notify any or all Account
                                  Debtors (other than for
                                  any Account that is not Collateral) of the Security
                                  Interest and may direct such
                                  Account Debtors to make all payments on receivables
                                  directly to
                                  Agent.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.3

                                        	
                                          POSSESSION
                                            OF COLLATERAL.

                                        

                                

                              

                              
                                

                              

                              
                                Whenever
                                  Agent may take possession of the Collateral pursuant
                                  to Section 12.1, Agent may
                                  take possession of the Collateral on Borrowers'
                                  premises or may remove the
                                  Collateral, or any part thereof, to such other
                                  places as the Agent may, in its
                                  sole discretion, determine. If requested by Agent,
                                  Borrowers shall assemble the
                                  Collateral and deliver it to Agent at such place
                                  as may be designated by
                                  Agent.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.4

                                        	
                                          COLLECTION
                                            OF RECEIVABLES.

                                        

                                

                              

                              
                                

                              

                              
                                Upon
                                  the
                                  occurrence and during the continuance of an Event
                                  of Default, Agent may demand,
                                  collect, and sue for all monies and proceeds due,
                                  or to become due, on the
                                  Accounts that constitute Collateral (in either
                                  Borrowers' or Lenders' name at
                                  the Agent's option) with the right to enforce,
                                  compromise, settle, or discharge
                                  any or all Accounts that constitute Collateral.
                                  If Agent takes any action
                                  contemplated by this section with respect to any
                                  Account, Borrowers shall not
                                  exercise any rights with respect to such Account,
                                  except as consented to by
                                  Agent.

                              

                              
                                
                                  
                                  

                                

                                
                                  48

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                
                                  	
                                        	
                                          12.5

                                        	
                                          LICENSE
                                            TO USE PATENTS. TRADEMARKS. AND TRADE
                                            NAMES.

                                        

                                

                              

                              
                                

                              

                              
                                Borrowers
                                  grant to Agent a royalty-free, non-exclusive license
                                  to use any and all patents,
                                  trademarks, and trade names now or hereafter owned
                                  by or licensed to Borrowers
                                  (to the extent the terms of any such license permit
                                  a further license to Agent),
                                  including, without limitation, the items set forth
                                  on Schedule 5.1(d).
                                  effective upon, and solely for the purpose of disposing
                                  of Inventory after the
                                  occurrence and during the continuance of an Event
                                  of Default.

                              

                              
                                 

                              

                              
                                
                                  	
                                        	
                                          12.6

                                        	
                                          PERFECTING
                                            THE SECURITY INTEREST; PROTECTING THE
                                            COLLATERAL.

                                        

                                

                              

                              
                                

                              

                              
                                Borrowers
                                  hereby authorize Agent to file such financing statements
                                  relating to the
                                  Collateral without Borrowers' signature thereon
                                  as Agent may deem appropriate,
                                  and appoints Agent as Borrowers' attorney-in-fact
                                  to perform all other acts
                                  which Agent deems appropriate to perfect and continue
                                  the Security Interest and
                                  to protect, preserve, and realize upon the Collateral,
                                  subject to the terms and
                                  conditions of this Agreement.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.7

                                        	
                                          PERFORMANCE
                                            OF BORROWERS' DUTIES.

                                        

                                

                              

                              
                                

                              

                              
                                Upon
                                  Borrowers' failure to perform any of its duties
                                  under the Transaction Documents,
                                  including, without limitation, the duty to obtain
                                  insurance as specified in
                                  Section 8.7, Lenders may, but shall not be obligated
                                  to, perform any or all such
                                  duties.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.8

                                        	
                                          NOTICE
                                            OF SALE.

                                        

                                

                              

                              
                                

                              

                              
                                Without
                                  in any way requiring notice to be given in the
                                  following manner, Borrowers agree
                                  that any notice by Agent of sale, disposition,
                                  or other intended action
                                  hereunder, or in connection herewith, whether required
                                  by the UCC or otherwise,
                                  shall constitute reasonable notice to Borrowers
                                  if such notice is mailed by
                                  regular or certified mail, postage prepaid, at
                                  least ten (10) calendar days
                                  prior to such action, to Borrowers' address or
                                  addresses specified on the
                                  signature page hereof or to any other address which
                                  Borrowers have specified in
                                  writing to Agent as the address to which notices
                                  hereunder shall be given to
                                  Borrowers.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.9

                                        	
                                          WAIVER
                                            BY LENDERS.

                                        

                                

                              

                              
                                

                              

                              
                                No
                                  course
                                  of dealing among Borrowers and Lenders and no delay
                                  or omission by Lenders in
                                  exercising any right or remedy under the Transaction
                                  Documents or with respect
                                  to any Indebtedness shall operate as a waiver thereof
                                  or of any other right or
                                  remedy, and no single or partial exercise thereof
                                  shall preclude any other or
                                  further exercise thereof or the exercise of any
                                  other right or remedy. All
                                  rights and remedies of Lenders are cumulative.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          12.10

                                        	
                                          WAIVER
                                            BY BORROWERS.

                                        

                                

                              

                              
                                

                              

                              
                                Lenders
                                  shall have no obligation to take, and Borrowers
                                  shall have the sole
                                  responsibility for taking, any and all steps to
                                  preserve rights against any and
                                  all Account Debtors and against any and all prior
                                  parties to any note, chattel
                                  paper, draft, trade acceptance, or other instrument
                                  for the payment of money
                                  covered by the Security Interest whether or not
                                  in Lenders' possession. Lenders
                                  shall not be responsible to Borrowers for loss
                                  or damage resulting from Lenders'
                                  failure to enforce any Accounts or to collect any
                                  moneys due, or to become due,
                                  thereunder or other proceeds constituting Collateral
                                  hereunder. Borrowers waive
                                  protest of any note, check, draft, trade acceptance,
                                  or other instrument for the
                                  payment of money constituting Collateral at any
                                  time held by Lenders on which
                                  Borrowers are in any way liable and waives notice
                                  of any other action taken by
                                  Lenders, including, without limitation, notice
                                  of Lenders' intention to
                                  accelerate the Indebtedness or any part thereof.

                              

                              
                                
                                  
                                  

                                

                                
                                  49

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                
                                  	
                                        	
                                          12.11

                                        	
                                          SETOFF.

                                        

                                

                              

                              
                                

                              

                              
                                Without
                                  limiting any other right of Lenders, upon the occurrence
                                  and during the
                                  continuance of an Event of Default, Lenders, at
                                  their sole election, may apply
                                  to the Indebtedness any and all property of any
                                  Borrower held by Lenders in any
                                  capacity, and may exercise a right of setoff against
                                  any monies owed to Lenders
                                  by any Borrower.

                              

                              
                                

                              

                              
                                ARTICLE
                                  XIII

                                MISCELLANEOUS

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.1

                                        	
                                          EXPENSES.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  Borrowers agree to pay on demand all costs and
                                  expenses of the Agent in
                                  connection with the preparation, execution, delivery,
                                  administration,
                                  modification, and amendment of this Agreement,
                                  the other Transaction Documents,
                                  and the other documents to be delivered hereunder,
                                  including, without
                                  limitation, the reasonable fees and expenses of
                                  counsel for the Agent with
                                  respect thereto and with respect to advising the
                                  Agent as to its rights and
                                  responsibilities under the Transaction Documents.
                                  The Borrowers further agree to
                                  pay on demand all costs and expenses of the Agent
                                  and the other Lenders, if any
                                  (including, without limitation, reasonable attorneys'
                                  fees and expenses), in
                                  connection with the enforcement (whether through
                                  negotiations, legal
                                  proceedings, or otherwise) of the Transaction Documents
                                  and the other documents
                                  to be delivered hereunder. Notwithstanding the
                                  foregoing, Borrowers shall not be
                                  obligated to pay any expenses of the Agent that
                                  are incurred due to the failure
                                  of the Agent to act in accordance with this Agreement.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.2

                                        	
                                          LENDERS'
                                            CONSENTS. WAIVERS AND
                                            AMENDMENTS.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  Required Lenders shall have the authority to grant
                                  any consents or waivers or
                                  approve any amendments to the Transaction Documents;
                                  provided, however, that
                                  unanimous approval of the Lenders shall be required
                                  for (a) increases in the
                                  aggregate Revolving Credit Commitment, (b) reductions
                                  of principal, interest or
                                  fees payable other than as permitted under Section
                                  2.1(h), (c) extensions of
                                  scheduled maturities or times for payments, (d)
                                  the release of any Collateral,
                                  except in connection with sales of assets in accordance
                                  with the terms hereof,
                                  and (e) any amendment to required voting percentages.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.3

                                        	
                                          ASSIGNMENT.

                                        

                                

                              

                              
                                

                              

                              
                                The
                                  rights and benefits of Lenders hereunder shall,
                                  if Lenders so agree, inure to
                                  any party acquiring any interest in the Indebtedness
                                  or any part thereof,
                                  provided such assignee is an Eligible Assignee
                                  and agrees in writing to be bound
                                  by the terms hereof.

                              

                              
                                
                                  
                                  

                                

                                
                                  50

                                  
                                    

                                  

                                

                                
                                  
                                  

                                

                              

                              
                                
                                  	
                                        	
                                          13.4

                                        	
                                          SUCCESSORS
                                            AND ASSIGNS.

                                        

                                

                              

                              
                                

                              

                              
                                Lenders
                                  and Borrowers, as used herein, shall include the
                                  successors or assigns of those
                                  parties, except that no Borrower shall not have
                                  the right to assign its rights
                                  hereunder or any interest herein.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.5

                                        	
                                          MODIFICATION.

                                        

                                

                              

                              
                                

                              

                              
                                No
                                  modification, rescission, waiver, release, or amendment
                                  of any provision of this
                                  Agreement shall be made, except by a written agreement
                                  signed by Borrowers and
                                  the Required Lenders (except as otherwise provided
                                  in Section
                                  13.2).

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.6

                                        	
                                          COUNTERPARTS:
                                            FACSIMILES.

                                        

                                

                              

                              
                                

                              

                              
                                This
                                  Agreement may be executed in any number of counterparts,
                                  and by Lenders and
                                  Borrowers on separate counterparts, each of which,
                                  when so executed and
                                  delivered, shall be an original, but all of which
                                  shall together constitute one
                                  and the same Agreement. A counterpart hereof executed
                                  and delivered by facsimile
                                  shall be effective as an original for all applicable
                                  purposes.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.7

                                        	
                                          GENERALLY
                                            ACCEPTED ACCOUNTING
                                            PRINCIPLES.

                                        

                                

                              

                              
                                

                              

                              
                                Any
                                  financial calculation to be made, all financial
                                  statements and other financial
                                  information to be provided, and all books and records
                                  to be kept in connection
                                  with the provisions of this Agreement, shall be
                                  in accordance with GAAP;
                                  provided, however, that in the event changes in
                                  GAAP after the First Closing
                                  Date shall be mandated by the Financial Accounting
                                  Standards Board or any
                                  similar accounting body of comparable standing, or should be recommended
                                  by
                                  Borrowers' certified public accountants, to the
                                  extent such changes would affect
                                  any financial calculations to be made in connection
                                  herewith, such changes shall
                                  be implemented in making such calculations only
                                  from and after such date as
                                  Borrowers and Lenders shall have amended this Agreement
                                  to the extent necessary
                                  to reflect such changes in the financial and other
                                  covenants to which such
                                  calculations relate.

                              

                              
                                

                              

                              
                                
                                  	
                                        	
                                          13.8

                                        	
                                          INDEMNIFICATION.

                                        

                                

                              

                              
                                

                              

                              
                                (a)    If
                                  after
                                  receipt of any payment of all, or any part of,
                                  the Indebtedness, Lenders are,
                                  for any reason, compelled to surrender such payment
                                  to any Person because such
                                  payment is determined to be void or voidable as
                                  a preference, an impermissible
                                  setoff, or a diversion of trust funds, or for any
                                  other reason, the Transaction
                                  Documents shall continue in full force and Borrowers
                                  shall be liable, and shall
                                  indemnify and hold Lenders harmless for, the amount
                                  of such payment surrendered.
                                  The provisions of this section shall be and remain
                                  effective notwithstanding any
                                  contrary action which may have been taken by Lenders
                                  in reliance upon such
                                  payment, and any such contrary action so taken
                                  shall be without prejudice to
                                  Lenders' rights under the Transaction Documents
                                  and shall be deemed to have been
                                  conditioned upon such payment having become final
                                  and irrevocable. The
                                  provisions of this Section 13.8(a) shall survive
                                  the termination of this
                                  Agreement and the Transaction Documents.

                              

                              
                                 

                                
                                  
                                    
                                    

                                  

                                  
                                    51

                                    
                                      

                                    

                                  

                                  
                                    
                                    

                                  

                                

                              

                            

                          

                        

                        
                          (b)           Borrowers
                            agree to indemnify, defend, and hold harmless Lenders
                            from and against any and
                            all liabilities, claims, damages, penalties, expenditures,
                            losses, or charges,
                            including, but not limited to, all costs of investigation,
                            monitoring, legal
                            representations, remedial response, removal, restoration,
                            or permit acquisition,
                            which may now, or in the future, be undertaken, suffered,
                            paid, awarded,
                            assessed, or otherwise incurred by Lenders as a result
                            of the presence of,
                            Release of, or threatened Release of Hazardous Substances
                            on, in, under, or near
                            the property owned, leased or operated by any Borrower
                            or any Consolidated
                            Subsidiary. The liability of Borrowers under the covenants
                            of this Section
                            13.8(b) is not limited by any exculpatory provisions
                            in this Agreement or any
                            other documents securing the Indebtedness and shall survive
                            repayment of the
                            Indebtedness or any transfer or termination of this Agreement
                            regardless of the
                            means of such transfer or termination. Borrowers agree
                            that Lenders shall not be
                            liable to Borrowers or any Consolidated Subsidiary for
                            the completeness or
                            accuracy of any Environmental Report or the information
                            contained therein.
                            Borrowers further agree that Lenders have no duty to
                            warn Borrowers about any
                            actual or potential environmental contamination or other
                            problem that may have
                            become apparent, or will become apparent, to Lenders.
                            The provisions of this
                            Section 13.8(b) shall survive repayment of the
                            Indebtedness.

                        

                        
                           

                          (c)           Borrowers
                            agree to pay, indemnify, and hold Lenders harmless from
                            and against any and all
                            liabilities, obligations, losses, damages, penalties,
                            actions, judgments, suits,
                            costs, expenses, or disbursements of any kind or nature
                            whatsoever (including,
                            without limitation, counsel and special counsel fees
                            and disbursements in
                            connection with any litigation, investigation, hearing,
                            or other proceeding)
                            with respect, or in any way related, to the existence,
                            execution, delivery,
                            enforcement, performance, and administration of this
                            Agreement and any other
                            Transaction Document (collectively, the "Indemnified
                            Liabilities"), except to
                            the extent that any of the foregoing arises out of the
                            gross negligence or
                            willful misconduct of the party being indemnified. The
                            provisions of this
                            Section 13.8(c) shall survive repayment of the
                            Indebtedness.

                        

                        
                           

                          
                            	
                                  	
                                    13.9

                                  	
                                    TERMINATION.

                                  

                          

                        

                        
                           

                          This
                            Agreement is, and is intended to be, a continuing Agreement
                            and shall remain in
                            full force and effect until the full and final payment
                            of all of the
                            Indebtedness in immediately available funds. Subject
                            to the terms and conditions
                            hereof, Borrowers may terminate this Agreement at any
                            time by giving Lenders a
                            written notice of termination within the time periods
                            required in Sections
                            2.2(b)(i) and 2.1(h), upon the expiration of which time
                            periods all outstanding
                            Indebtedness shall be due and payable in full without
                            presentation, demand, or
                            further notice of any kind, whether or not all or any
                            part of such Indebtedness
                            is otherwise due and payable pursuant to the agreement
                            or instrument evidencing
                            same. Lenders may terminate this Agreement immediately
                            and without notice upon
                            the occurrence of an Event of Default. Notwithstanding
                            the foregoing or anything
                            in this Agreement or elsewhere to the contrary, the Security
                            Interest, Lenders'
                            rights and remedies under the Transaction Documents and
                            Borrowers' obligations
                            and liabilities under the Transaction Documents, shall
                            survive any termination
                            of this Agreement and shall remain in full force and
                            effect until all of the
                            Indebtedness outstanding, or contracted or committed
                            for (whether or not
                            outstanding), together with interest accruing thereon
                            after such notice, shall
                            be finally and irrevocably paid in full. No Collateral
                            shall be released or
                            financing statement terminated until such final and irrevocable
                            payment in full
                            of the Indebtedness in immediately available funds. Thereafter,
                            Lenders shall
                            (at Borrowers' expense) release or terminate all security
                            interests, liens and
                            encumbrances held by Agent on the Collateral.

                        

                        
                          
                            
                            

                          

                          
                            52

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                           

                          
                            	
                                  	
                                    13.10

                                  	
                                    FURTHER
                                      ASSURANCES.

                                  

                          

                        

                        
                           

                          From
                            time
                            to time, Borrowers shall take such action and execute
                            and deliver to Lenders
                            such additional documents, instruments, certificates,
                            and agreements as Lenders
                            may reasonably request to effectuate the purposes of
                            the Transaction
                            Documents.

                        

                        
                           

                          
                            	
                                  	
                                    13.11

                                  	
                                    HEADINGS.

                                  

                          

                        

                        
                           

                          Article
                            and Section headings used in this Agreement are for convenience
                            only and shall
                            not affect the construction of this Agreement.

                        

                        
                           

                          
                            	
                                  	
                                    13.12

                                  	
                                    CUMULATIVE
                                      SECURITY INTEREST. ETC.

                                  

                          

                        

                        
                           

                          The
                            execution and delivery of this Agreement shall in no
                            manner impair or affect any
                            other security (by endorsement or otherwise) for payment
                            or performance of the
                            Indebtedness, and no security taken hereafter as security
                            for payment or
                            performance of the Indebtedness shall impair in any manner
                            or affect this
                            Agreement, or the Security Interest granted hereby, all
                            such present and future
                            additional security to be considered as cumulative security.

                        

                        
                          

                           

                          
                            	
                                  	
                                    13.13

                                  	
                                    LENDERS'
                                      DUTIES.

                                  

                          

                        

                        
                           

                          Without
                            limiting any other provision of this Agreement: (a) the
                            powers conferred on
                            Agent or Lenders hereunder are solely to protect their
                            interests and shall not
                            impose any duty to exercise any such powers; and (b)
                            except as may be required
                            by applicable law, neither Agent nor Lenders shall have
                            any duty as to any
                            Collateral or as to the taking of any necessary steps
                            to preserve rights against
                            any parties or any other rights pertaining to any Collateral.

                        

                        
                           

                          
                            	
                                  	
                                    13.14

                                  	
                                    NOTICES
                                      GENERALLY.

                                  

                          

                        

                        
                           

                          All
                            notices and other communications hereunder, unless otherwise
                            expressly provided,
                            shall be in writing and made by telecopy, overnight air
                            courier, or certified or
                            registered mail, return receipt requested, and shall
                            be deemed to be received by
                            the party to whom sent one Business Day after sending,
                            if sent by telecopy or
                            overnight air courier; and three Business Days after
                            mailing, if sent by
                            certified or registered mail. All such notices and other
                            communications to a
                            party hereto shall be addressed to such party at the
                            address set forth on the
                            signature pages hereof or to such other address as such
                            party may designate for
                            itself in a notice to the other party given in accordance
                            with this Section
                            13.14. Copies of all notice to Agent in connection herewith
                            shall also be
                            provided to Jacobs Chase Frick Kleinkopf & Kelley LLC, 1050 17th Street,
                            Suite 1500, Denver, CO 80265, Attention: Gary N. Meade,
                            Phone: (303)685-4800,
                            Facsimile: Fax (303) 685-4869.

                        

                        
                           

                          
                            	
                                  	
                                    13.15

                                  	
                                    SEVERABILITY.

                                  

                          

                        

                        
                           

                          The
                            provisions of this Agreement are
                            independent of, and separable from, each other, and no
                            such provision shall be
                            affected or rendered invalid or unenforceable by virtue
                            of the fact
                            thatfor
                            any reason any
                            other such provision may be invalid or unenforceable
                            in whole or in part. If
any
                            provision of this
                            Agreement is prohibited or unenforceable in any jurisdiction,
                            such provision
                            shall be ineffective in such jurisdiction only to the
                            extent of such prohibition
                            or unenforceability,
                            and
                            such prohibition or unenforceability shall not invalidate
                            the balance of such
provision
                            to the extent it
                            is not prohibited or unenforceable nor render prohibited
                            or unenforceable
                            such provision in any
                            other jurisdiction.

                          

                            
                              
                                
                                

                              

                              
                                53

                                
                                  

                                

                              

                              
                                
                                

                              

                            

                          

                        

                        
                           

                          
                            	
                                  	
                                    13.16

                                  	
                                    INCONSISTENT
                                      PROVISIONS.

                                  

                          

                        

                        
                           

                          The
                            terms
                            of this Agreement and the other Transaction Documents
                            shall be cumulative except
                            to the extent that they are specifically inconsistent
                            with each other, in which
                            case the terms of this Agreement shall prevail.

                        

                        
                           

                          
                            	
                                  	
                                    13.17

                                  	
                                    ENTIRE
                                      AGREEMENT.

                                  

                          

                        

                        
                           

                          This
                            Agreement, the Exhibits and Schedules attached hereto
                            and incorporated herein by
                            this reference, and the other Transaction Documents constitute
                            the entire
                            agreement and understanding between the parties hereto
                            with respect to the
                            transactions contemplated hereby and supersede all prior
                            negotiations,
                            understandings, and agreements between such parties with
                            respect to such
                            transactions, including, without limitation, those expressed
                            in any commitment
                            letter delivered by Lenders to Borrowers.

                        

                        
                           

                          
                            	
                                  	
                                    13.18

                                  	
                                    APPLICABLE
                                      LAW.

                                  

                          

                        

                        
                           

                          This
                            Agreement, and the transactions evidenced hereby, shall
                            be governed by, and
                            construed under, the internal laws of the State of Colorado,
                            without regard to
                            principles of conflicts of law, as the same may from
                            time to time be in effect,
                            including, without limitation, the UCC.

                        

                        
                           

                          
                            	
                                  	
                                    13.19

                                  	
                                    CONSENT
                                      TO JURISDICTION.

                                  

                          

                        

                        
                           

                          Borrowers
                            and Lenders agree that any action or proceeding to enforce,
                            or arising out of,
                            the Transaction Documents maybe commenced in any state
                            or federal court of
                            competent jurisdiction in the State of Colorado, and
                            Borrowers and Lenders waive
                            personal service of process and agree that a summons
                            and complaint commencing an
                            action or proceeding in any such court shall be properly
                            served and shall confer
                            personal jurisdiction if served by registered or certified
                            mail to Borrowers or
                            Lenders, as appropriate, or as otherwise provided by
                            the laws of the State or
                            the United States.

                        

                        
                           

                          
                            	
                                  	
                                    13.20

                                  	
                                    JURY
                                      TRIAL WAIVER.

                                  

                          

                        

                        
                           

                          BORROWERS
                            AND LENDERS HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY
                            WAIVE ANY RIGHT TO
                            TRIAL BY JURY BORROWERS OR LENDERS MAY HAVE IN ANY ACTION
                            OR PROCEEDING, IN LAW
                            OR IN EQUITY, IN CONNECTION WITH THE TRANSACTION DOCUMENTS
                            OR THE TRANSACTIONS
                            RELATED THERETO. BORROWERS REPRESENT AND WARRANT THAT
                            NO REPRESENTATIVE OR AGENT
                            OF LENDERS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
                            LENDERS WILL NOT, IN
                            THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS RIGHT TO
                            JURY TRIAL WAIVER.
                            BORROWERS ACKNOWLEDGE THAT LENDERS HAVE BEEN INDUCED
                            TO ENTER INTO THIS
                            AGREEMENT BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS
                            SECTION
                            13.20.

                        

                        
                          
                            
                            

                          

                          
                            54

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                           

                          
                            	
                                  	
                                    13.21

                                  	
                                    NO
                                      ORAL AGREEMENTS.

                                  

                          

                        

                        
                           

                          Oral
                            agreements or commitments to loan money, extend credit
                            or to forbear from
                            enforcing repayment of a debt, including promises to
                            extend or renew such debt,
                            are not enforceable. To protect Borrowers and Lenders
                            from misunderstanding or
                            disappointment, any agreements covering such matters
                            are contained in the
                            Transaction Documents, which are the complete and exclusive
                            statement of the
                            agreement between the parties hereto.

                        

                        
                           

                          
                            	
                                  	
                                    13.22

                                  	
                                    CONFIDENTIALITY.

                                  

                          

                        

                        
                          

                        

                        
                          Each
                            of
                            the Agent and the Lenders agrees to maintain the confidentiality
                            of the
                            Information (as defined below), except that Information
                            may be disclosed (a) to
                            its and its Affiliates' directors, officers, employees
                            and agents, including
                            accountants, legal counsel and other advisors (it being
                            understood that the
                            Persons to whom such disclosure is made will be informed
                            of the confidential
                            nature of such Information and instructed to keep such
                            Information
                            confidential); (b) to the extent requested by any regulatory
                            authority; (c) to
                            the extent required by applicable laws or regulations
                            or by any subpoena or
                            similar legal process; (d) to any other party to this
                            Agreement; (e) in
                            connection with the exercise of any remedies hereunder
                            or any suit, action or
                            proceeding relating to this Agreement or the enforcement
                            of rights hereunder;
                            (f) subject to an agreement containing provisions substantially
                            the same as
                            those of this section, to (i) any permitted assignee
                            of or participant in any of
                            its rights or obligations under this Agreement, or (ii)
                            any direct or indirect
                            contractual counterparty or prospective counterparty
                            (or such contractual
                            counterparty's or prospective counterparty's professional
                            advisor) to any credit
                            derivative transaction relating to obligations of the
                            Borrowers; (g) with the
                            consent of the Borrowers; (h) to the extent such Information
                            (i) becomes
                            publicly available other than as a result of a breach
                            of this section, or (ii)
                            becomes available to the Agent or any Lender on a nonconfidential
                            basis from a
                            source other than the Borrowers; or (i) if the applicable
                            Lender is an insurance
                            company, to the National Association of Insurance Commissioners
                            or any other
                            similar organization to the extent requested in connection
                            with a review of such
                            Lender. In addition, the Agent and the Lenders may disclose
                            the existence of
                            this Agreement and information about this Agreement (but
                            not about the
                            Borrowers) to market data collectors, similar service
                            providers to the lending
                            industry, and service providers to the Agent and the
                            Lenders in connection with
                            the administration and management of this Agreement and
                            the other Transaction
                            Documents. For the purposes of this section, "Information"
                            means all information
                            received from Borrowers or any Consolidated Subsidiary
                            relating to Borrowers or
                            any Consolidated Subsidiary or its respective business,
                            other than any such
                            information that is available to Agent or any Lender
                            on a nonconfidential basis
                            prior to disclosure by Borrowers or any Consolidated
                            Subsidiary. Any Person
                            required to maintain the confidentiality of Information
                            as provided in this
                            section shall be considered to have complied with its
                            obligation to do so if
                            such Person has exercised the same degree of care to
                            maintain the
                            confidentiality of such Information as such Person would
                            accord to its own
                            confidential information.

                        

                        
                          
                            
                            

                          

                          
                            55

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          13.23       USA
                            PATRIOT ACT NOTICE.

                        

                        
                           

                          Each
                            Lender that is subject to the Act (as hereinafter defined)
                            and the Agent (for
                            itself and not on behalf of any Lender) hereby notifies
                            the Borrowers that
                            pursuant to the requirements of the USA PATRIOT Act (Title
                            III of Pub. L. 107-56
                            (signed into Law October 26, 2001)) (the "Act"), it is
                            required to obtain,
                            verify and record information that identifies the Borrowers,
                            which information
                            includes the name and address of the Borrowers and other
                            information that will
                            allow such Lender or the Agent, as applicable, to identify
                            the Borrowers in
                            accordance with the Act.

                        

                        
                           

                          13.24       JOINT
                            AND SEVERAL OBLIGATIONS.

                        

                        
                           

                          (a)           Each
                            Borrower agrees that its obligations and liabilities
                            (including the
                            Indebtedness) under this Agreement and all other Transaction
                            Documents are joint
                            and several obligations regardless of which Borrower
                            receives the proceeds of
                            the Transactions or the manner in which the Borrowers,
                            the Agent or the Lenders
                            account therefor in their respective records. Each Borrower
                            acknowledges and
                            agrees that, for purposes of the Transaction Documents,
                            the Borrowers constitute
                            a single integrated financial enterprise and that each
                            receives a benefit from
                            the availability of credit under this Agreement to each
                            other
                            Borrower.

                        

                        
                           

                          (b)           Each
                            Borrower acknowledges that it will enjoy significant
                            benefits from the business
                            conducted by the other Borrowers because of, inter alia, their combined
                            ability to bargain with other Persons including without
                            limitation, their
                            ability to receive the credit extensions under this Agreement
                            and the other
                            Transaction Documents, which would not have been available
                            to an individual
                            Borrower acting alone. Each Borrower has determined that
                            it is in its best
                            interest to procure the credit facilities contemplated
                            hereunder, with the
                            credit support of the other Borrowers as contemplated
                            by this Agreement and the
                            other Transaction Documents.

                        

                        
                           

                          (c)           The
                            Agent and the Lenders have advised the Borrowers that
                            they are unwilling to
                            enter into this Agreement and the other Transaction Documents
                            and make available
                            the credit facilities extended hereby or thereby to a
                            Borrower unless the other
                            Borrowers agree, among other things, to be jointly and
                            severally liable for the
                            due and proper payment of the Indebtedness of the other
                            Borrowers under this
                            Agreement and the other Transaction Documents. Each Borrower
                            has determined that
                            it is in its best interest and in pursuit of its purposes
                            that it so induce the
                            Agent and the Lenders to extend credit pursuant to this
                            Agreement and the other
                            Transaction Documents (i) because of the desirability
                            to each Borrower of the
                            credit facilities hereunder and the interest rates and
                            the modes of borrowing
                            available hereunder; (ii) because a Borrower may engage
                            in transactions jointly
                            with other Borrowers; and (iii) because a Borrower may
                            require, from time to
                            time, access to funds under this Agreement for the purposes
                            herein set forth.
                            Each Borrower, individually, expressly understands, agrees
                            and acknowledges,
                            that the credit facilities contemplated hereunder would
                            not be made available on
                            the terms herein in the absence of the collective credit
                            of the Borrowers and
                            the joint and several liability of all such Persons.
                            Accordingly, each Borrower
                            individually acknowledges that the benefit of the accommodations
                            made under this
                            Agreement to the Borrowers as a whole constitutes reasonably
                            equivalent value,
                            regardless of the amount of the indebtedness actually
                            borrowed by, advanced to,
                            or the amount of credit provided to, any individual
                            Borrower.

                        

                        
                          
                            
                            

                          

                          
                            56

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          (d)           Notwithstanding
                            anything herein, in the Notes or in any other Transaction
                            Document to the
                            contrary, in any action or proceeding involving any state
                            corporate law, or any
                            state or federal bankruptcy, insolvency, reorganization
                            or other law affecting
                            the rights of creditors generally, if, as a result of
                            applicable law relating to
                            fraudulent conveyance or fraudulent transfer, including
                            Section 548 of the
                            Bankruptcy Code or any applicable provisions of comparable
                            state law
                            (collectively, "Fraudulent Transfer Laws"), the obligations
                            of a Borrower under
                            this Agreement, the Notes or any other Transaction Document
                            would, after giving
                            effect to (i) all other liabilities of such Borrower,
                            contingent or otherwise,
                            that are relevant under such Fraudulent Transfer Laws
                            (specifically excluding,
                            however, any liabilities of such Borrower in respect
                            of intercompany Debt to
                            another Borrower); and (ii) the value as assets of such
                            Borrower (as determined
                            under the applicable provisions of such Fraudulent Transfer
                            Laws) and of any
                            rights of subrogation, contribution, reimbursement, indemnity
                            or similar rights
                            held by such Borrower, be held or determined to be void,
                            invalid or
                            unenforceable, or subordinated to the claims of any other
                            creditors, on account
                            of the amount of its liability under this Agreement,
                            the Notes or any other
                            Transaction Document, then the amount of such liability
                            shall, without any
                            further action by such Borrower, any Lender, the Agent
                            or any other Person, be
                            automatically limited and reduced to the highest amount
                            that is valid and
                            enforceable and not subordinated to the claims of other
                            creditors as determined
                            in such action or proceeding.

                        

                        
                           

                          (e)           Subject
                            to the terms of this Agreement and the other Transaction
                            Documents, the Agent is
                            hereby authorized, without notice or demand and without
                            affecting the liability
                            of any Borrower hereunder, to, at any time and from time
                            to time, (i) renew,
                            extend or otherwise increase the time for payment of
                            the Indebtedness; (ii) with
                            the written agreement of Borrowers, accelerate or otherwise
                            change the terms
                            relating to the Indebtedness or otherwise modify, amend
                            or change the terms of
                            any promissory note or other agreement, document or instrument
                            now or hereafter
                            executed by any Borrower and delivered to Agent; (iii)
                            accept partial payments
                            of the Indebtedness; (iv) take and hold security or collateral
                            for the payment
                            of the Indebtedness or for the payment of any guaranties
                            of the Indebtedness and
                            exchange, enforce, waive and release any such security
                            or collateral; (v) apply
                            such security or collateral and direct the order or manner
                            of sale thereof as
                            Agent, in its sole discretion, may determine; (vi) settle,
                            release, compromise,
                            collect or otherwise liquidate the Indebtedness and any
                            security or collateral
                            therefor in any manner; and (vii) exercise, in its sole
                            discretion, any right,
                            remedy or combination thereof that may then be available
                            to Agent, without
                            affecting or impairing the Indebtedness of any Borrower.
                            Except as specifically
                            provided in this Agreement or any of the other Transaction
                            Documents, Agent
                            shall have the exclusive right to determine the time
                            and manner of application
                            of any payments or credits, whether received from any
                            Borrower or any other
                            source, and such determination shall be binding on all
                            Borrowers. All such
                            payments and credits may be applied, reversed and reapplied,
                            in whole or in
                            part, to any of the Indebtedness as Agent shall determine
                            in its sole discretion
                            without affecting the validity or enforceability of the
                            Indebtedness of any
                            other Borrower.

                        

                        

                        
                          (f)           Each
                            Borrower hereby agrees that, except as hereinafter provided,
                            its liability with
                            respect to the Indebtedness hereunder shall be unconditional,
                            irrespective of
                            (i) the absence of any attempt to collect the Indebtedness
                            from any obligor or
                            other action to enforce the same; (ii) the waiver or
                            consent by Agent with
                            respect to any provision of any instrument evidencing
                            the Indebtedness, or any
                            part thereof, or any other agreement heretofore, now
                            or hereafter executed by a
                            Borrower (other than the Borrower with respect to which
                            such waiver or consent
                            is granted) and delivered to Agent; (iii) the failure
                            by Agent to take any steps
                            to perfect and maintain its security interest in, or
                            to preserve its rights to,
                            any security or collateral for the Indebtedness; (iv)
                            the institution of any
                            proceeding under the United States Bankruptcy Code, or
                            any similar proceeding,
                            by or against a Borrower or Agent's election in any such
                            proceeding of the
                            application of Section 1111(b)(2) of the United States
                            Bankruptcy Code; (v) any
                            borrowing or grant of a security interest by a Borrower
                            as debtor-in-possession,
                            under Section 364 of the United States Bankruptcy Code;
                            (vi) the disallowance,
                            under Section 502 of the United States Bankruptcy Code,
                            of all or any portion of
                            Agent's claim(s) for repayment of any of the Indebtedness;
                            or (vii) any other
                            circumstance other than payment in full of the Indebtedness
                            which might
                            otherwise constitute a legal or equitable discharge or
                            defense of a guarantor or
                            surety.

                        

                        
                          
                            
                            

                          

                          
                            57

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                           

                          (g)           Each
                            Borrower hereby waives (i) any right of redemption with
                            respect to the
                            Collateral after the sale hereunder, and all rights,
                            if any, of marshalling of
                            the Collateral or other collateral or security for the
                            Indebtedness; and (ii)
                            any right (except as shall be required by applicable
                            statute and cannot be
                            waived) to require the Agent or any Lender to (A) proceed
                            against any other
                            Borrower or any other Person, (B) proceed against or
                            exhaust any other
                            collateral or security for any of the Indebtedness, or
                            (C) pursue any remedy in
                            the Agent's or any Lender's power whatsoever. Each Borrower
                            hereby waives any
                            defense based on or arising out of any defense of any
                            other Borrower or any
                            other Person other than payment in full of the Indebtedness,
                            including, without
                            limitation, any defense based on or arising out of the
                            disability of any other
                            Borrower or any other Person, or the unenforceability
                            of the Indebtedness or any
                            part thereof for any reason, or the cessation for any
                            reason of the liability of
                            any other Borrower other than payment in full of the
                            Indebtedness. The Agent
                            may, at its election, foreclose on any security held
                            by the Agent by one or more
                            judicial or non-judicial sales, whether or not every
                            aspect of any such sale is
                            commercially reasonable (to the extent such sale is permitted
                            by applicable
                            law), or exercise any other right or remedy the Agent
                            may have against any other
                            Borrower or any other Person, or any security, without
                            affecting or impairing in
                            any way the liability of any Borrower hereunder except
                            to the extent the
                            Indebtedness has been paid in full. Each Borrower waives
                            all rights and defenses
                            arising out of an election of remedies by the Agent,
                            even though that election
                            of remedies, such as non-judicial foreclosure with respect
                            to security for a
                            guaranteed obligation, has destroyed such Borrower's
                            rights of subrogation and
                            reimbursement against any other Borrower.

                        

                        
                           

                          (h)          Until
                            all Indebtedness has been paid and satisfied in full
                            and all Revolving Credit
                            Commitments hereunder are terminated, no payment made
                            by or for the account of a
                            Borrower including, without limitation, (i) a payment
                            made by such Borrower on
                            behalf of the liabilities of any other Borrower; or (ii)
                            a payment by any other
                            person under any guaranty, shall entitle such Borrower,
                            by subrogation or
                            otherwise, to any payment from any other Borrower or
                            from or out of any other
                            Borrower's property and such Borrower shall not exercise
                            any right or remedy
                            against any other Borrower or any property of any other
                            Borrower by reason of
                            any performance of such Borrower of its joint and several
                            liability
                            hereunder.

                           

                        

                        
                          (i)          Any
                            notice given by one Borrower hereunder shall constitute
                            and be deemed to be
                            notice given by all Borrowers, jointly and severally.
                            Notice given by Agent or
                            Lenders to AMC hereunder or pursuant to any other Transaction
                            Documents in
                            accordance with the terms hereof shall constitute notice
                            to each and every
                            Borrower. The knowledge of one Borrower shall be imputed
                            to all Borrowers and
                            any consent by one Borrower shall constitute the consent
                            of and shall bind all
                            Borrowers.

                        

                        
                          
                            
                            

                          

                          
                            58

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                           

                          (j)          This
                            Section 13.24 is intended to define the relative rights
                            of Borrowers and nothing
                            set forth in this section is intended to or shall impair
                            the Indebtedness of
                            Borrowers, jointly and severally, to pay any amounts
                            as and when the same shall
                            become due and payable in accordance with the terms of
                            this Agreement or any
                            other Transaction Documents. Nothing contained in this
                            section shall limit the
                            liability of any Borrower to pay the credit facilities
                            made directly or
                            indirectly to that Borrower and accrued interest, fees
                            and expenses with respect
                            thereto or for which such Borrower shall be primarily
                            liable.

                        

                        
                           

                          (k)          The
                            parties hereto acknowledge that any rights of contribution
                            and indemnification
                            of a Borrower against another Borrower shall constitute
                            assets of each Borrower
                            to which such contribution and indemnification is owing.
                            The rights of any
                            indemnifying Borrower against the other Borrowers shall
                            be exercisable upon the
                            full and indefeasible payment of the Indebtedness and
                            the termination of the
                            credit facilities hereunder.

                        

                        
                           

                          (1)          This
                            Agreement is a primary and original obligation of each
                            of the Borrowers and each
                            of the Borrowers shall be liable for all existing and
                            future Indebtedness of any
                            other Borrower as fully as if such Indebtedness were
                            directly incurred by such
                            Borrower.

                        

                        
                           

                          (m)          Each
                            Borrower further agrees that its Indebtedness hereunder
                            shall not be impaired in
                            any manner whatsoever by any bankruptcy, extensions,
                            moratoria or other relief
                            granted to any other Borrower pursuant to any statute
                            presently in force or
                            hereafter enacted.

                        

                        
                           

                          [Signature
                            page follows]

                        

                        
                          
                            
                            

                          

                          
                            59

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                           

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

                           

                        

                        
                          	 	
                                  BORROWERS:

                                	 
	 	 	 
	 	
                                  AIR
                                    METHODS CORPORATION

                                	 
	 	 	 	 
	 	 	 	 
	 	
                                  By:

                                	
                                  /s/
                                    Trent J. Carman

                                	 
	 	
                                  Name:
                                    Trent J. Carman

                                	 
	 	
                                  Title:
                                    Chief Financial Officer

                                	 
	 	 	 
	 	
                                  Address:

                                	 
	 	
                                  7301
                                    South Peoria Street

                                	 
	 	
                                  Englewood,
                                    Colorado 80112

                                	 
	 	
                                  Attn:
                                    Trent J. Carman

                                	 
	 	
                                  Phone:
                                    303-792-7591

                                	 
	 	
                                  Facsimile:
                                    303-790-4780

                                	 
	 	 	 
	 	
                                  ROCKY
                                    MOUNTAIN HOLDINGS, L.L.C.

                                	 
	 	 	 
	 	
                                  By:

                                	
                                  Air
                                    Methods Corporation, its sole member

                                	 
	 	 	 
	 	 	 
	 	
                                  By:

                                	
                                  /s/
                                    Trent J. Carman

                                	 
	 	
                                  Name:
                                    Trent J. Carman

                                	 
	 	
                                  Title:
                                    Chief Financial Officer

                                	 
	 	 	 
	 	
                                  Address:

                                	 
	 	
                                  7301
                                    South Peoria Street

                                	 
	 	
                                  Englewood,
                                    Colorado 80112

                                	 
	 	
                                  Attn:
                                    Trent J. Carman

                                	 
	 	
                                  Phone:
                                    303-792-7591

                                	 
	 	
                                  Facsimile:
                                    303-790-4780

                                	 

                        

                        
                          

                        

                        
                          

                        

                        
                          [Signature
                            page to Revolving Credit, Term Loan and Security Agreement
                            for Air Methods
                            Corporation, et al.]

                        

                        
                          
                            
                            

                          

                          
                            
                            

                            
                              

                            

                          

                          
                            
                            

                          

                        

                        
                          

                        

                        
                          	 	
                                  MERCY
                                    AIR SERVICE, INC

                                	 
	 	 	 
	 	
                                  By:

                                	
                                  /s/
                                    Trent J. Carman

                                	 
	 	
                                  Name:
                                    Trent J. Carman

                                	 
	 	
                                  Title:
                                    Chief Financial Officer

                                	 
	 	 	 
	 	
                                  Address:

                                	 
	 	
                                  7301
                                    South Peoria Street

                                	 
	 	
                                  Englewood,
                                    Colorado 80112

                                	 
	 	
                                  Attn:
                                    Trent J. Carman

                                	 
	 	
                                  Phone:
                                    303-792-7591

                                	 
	 	
                                  Facsimile:
                                    303-790-4780

                                	 
	 	 	 
	 	
                                  LIFENET,
                                    INC.

                                	 
	 	 	 	 
	 	
                                  By:

                                	
                                  /s/
                                    Trent J. Carman

                                	 
	 	
                                  Name:
                                    Trent J. Carman

                                	 
	 	
                                  Title:
                                    Chief Financial Officer

                                	 
	 	 	 
	 	
                                  Address:

                                	 
	 	
                                  7301
                                    South Peoria Street

                                	 
	 	
                                  Englewood,
                                    Colorado 80112

                                	 
	 	
                                  Attn:
                                    Trent J. Carman

                                	 
	 	
                                  Phone:
                                    303-792-7591

                                	 
	 	
                                  Facsimile:
                                    303-790-4780

                                	 

                        

                        
                          

                           

                          [Signature
                            page to Revolving Credit, Term Loan and Security Agreement
                            for Air Methods
                            Corporation, et al.]

                           

                          
                            
                              
                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                        

                        

                          
                            	 	
                                    LENDERS: 

                                  	 
	 	 	 	 
	 	 	 	 
	 	
                                    As
                                      Lender and Agent:  

                                  
	 	 	 	 
	 	
                                    KEYBANK
                                      NATIONAL ASSOCIATION  

                                  
	 	 	 	 
	 	
                                    By: 
                                      

                                  	
                                    /s/
                                      Chris Mohler

                                  	 
	 	
                                    Name: 
                                      

                                  	
                                    Chris
                                      Mohler

                                  	 
	 	
                                    Title: 
                                      

                                  	
                                    Sr.
                                      Vice President

                                  	 
	 	 	 	 
	 	
                                    Address: 

                                  	 
	 	
                                    1675
                                      Broadway, Suite 300 

                                  	 
	 	
                                    Denver,
                                      CO 80202 

                                  	 
	 	
                                    Attn:
                                      Chris Mohler 

                                  	 
	 	
                                    Phone:
                                      720-904-4502 

                                  	 
	 	
                                    Fax:
                                      720-904-4515 

                                  	 

                          

                          
                            

                          

                          
                            

                          

                          
                            

                          

                          
                            [Signature
                              page to Revolving Credit, Term Loan and Security Agreement
                              for Air Methods
                              Corporation, et al.]

                          

                          
                            
                              
                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                          
                             

                          

                          
                            	 	
                                    LASALLE
                                      BANK NATIONAL ASSOCIATION  

                                  
	 	 	 	 
	 	 	 	 
	 	
                                    By: 
                                      

                                  	
                                    /s/ Darren
                                      Lemkau

                                  	 
	 	
                                    Name: 
                                      

                                  	
                                    Darren
                                      Lemkau

                                  	 
	 	
                                    Title: 
                                      

                                  	
                                    Senior
                                      Vice President

                                  	 
	 	 	 	 
	 	
                                    Address: 

                                  	 
	 	
                                    370
                                      17th Street, Suite 3590 

                                  	 
	 	
                                    Denver,
                                      CO 80202 

                                  	 
	 	
                                    Attn:
                                      Darren Lemkau 

                                  	 
	 	
                                    Phone:
                                      303-825-7582 

                                  	 
	 	
                                    Fax:
                                      303-825-6719 

                                  	 

                          

                          
                            

                          

                          
                            

                          

                          
                            

                          

                          
                            (Signature
                              page to Revolving Credit, Term Loan and Security Agreement
                              for Air Methods
                              Corporation, et al.]

                          

                          
                            
                              
                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                          
                             

                          

                          
                            	 	
                                    NATIONAL
                                      CITY BANK  

                                  
	 	
                                     

                                  	 	 
	 	 	 	 
	 	
                                    By:

                                  	
                                    /s/
                                      Emil Kwaczala

                                  	 
	 	
                                    Name: 
                                      

                                  	
                                    Emil
                                      Kwaczala 

                                  	 
	 	Title: 
                                    	
                                    Vice
                                      President

                                  	 
	 	 	 	 
	 	
                                    Address: 

                                  	 
	 	
                                    20
                                      Stanwix Street 

                                  	 
	 	
                                    Pittsburgh,
                                      PA 15222 

                                  	 
	 	
                                    Attn:
                                      Emil Kwaczala 

                                  	 
	 	
                                    Phone:
                                      412-644-7727 

                                  	 
	 	
                                    Fax:
                                      412-644-6224 

                                  	 

                          

                          
                            

                          

                          
                            

                          

                          
                            

                          

                          
                            [Signature
                              page to Revolving Credit, Term Loan and Security Agreement
                              for Air Methods
                              Corporation, et al.]

                          

                          
                            
                              
                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                          
                             

                          

                          
                            	 	
                                    PNC
                                      BANK, NATIONAL ASSOCIATION  

                                  
	 	 	 	 
	 	 	 	 
	 	
                                    By: 
                                      

                                  	
                                    /s/
                                      Marc Van Horn

                                  	 
	 	
                                    Name: 
                                      

                                  	
                                    Marc
                                      Van Horn

                                  	 
	 	
                                    Title: 
                                      

                                  	
                                    Credit
                                      Manager

                                  	 
	 	 	 	 
	 	
                                    Address: 

                                  	 
	 	
                                    249
                                      Fifth Avenue 

                                  	 
	 	
                                    Pittsburgh,
                                      PA 15222 

                                  	 
	 	
                                    Attn:
                                      Marc Van Horn 

                                  	 
	 	
                                    Phone:
                                      412-762-6361 

                                  	 
	 	
                                    Fax:
                                      412-705-3232 

                                  	 

                          

                          
                            

                          

                          
                            

                          

                          
                            

                          

                          
                            [Signature
                              page to Revolving Credit, Term Loan and Security Agreement
                              for Air Methods
                              Corporation, et al.]

                          

                          
                            
                              
                              

                            

                            
                              
                              

                              
                                

                              

                            

                            
                              
                              

                            

                          

                          
                             

                          

                          
                            	 	
                                    COLORADO
                                      BUSINESS BANK  

                                  
	 	 	 	 
	 	 	 	 
	 	
                                    By:

                                  	
                                    /s/
                                      Doug Pogge

                                  	 
	 	
                                    Name: 
                                      

                                  	
                                    Doug
                                      Pogge

                                  	 
	 	
                                    Title:
                                      

                                  	
                                    Senior
                                      Vice President

                                  	 
	 	 	 	 
	 	
                                    Address: 

                                  	 
	 	
                                    821
                                      17th Street 

                                  	 
	 	
                                    Denver,
                                      CO 80202 

                                  	 
	 	
                                    Attn:
                                      Doug Pogge 

                                  	 
	 	
                                    Phone:
                                      303-383-1288 

                                  	 
	 	
                                    Fax:
                                      303-312-3477 

                                  	 

                          

                          
                            

                          

                          
                            

                          

                          
                            

                          

                          
                            [Signature
                              page to Revolving Credit, Term Loan and Security Agreement
                              for A1t Methods
                              Corporation, el al.]

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