Document:

Unassociated Document

    Exhibit
      10.1 

     

     

    Credit
      Agreement

    

    [CHASE
      LOGO]

    

    

    This
      agreement dated as of June 29, 2007, is between JPMorgan Chase Bank, N.A.
      (together with its successors and assigns, the “Bank”),
      whose address is 120 South La Salle Street, 6th Floor, Chicago, IL 60603-3403,
      and United Western Bancorp, Inc., a Colorado corporation, whose address is
      700
      17d’ Street, Suite 2100, Denver, Colorado 80202 (whether one or more, and if
      more than one, individually and collectively, the “Borrower”).

    

    1. Credit
      Facilities.

     

    
      	 	
              1.1

            	
              Scope.
                This agreement governs Facility A and Facility B, and, unless otherwise
                agreed to in writing by the Bank and the Borrower or prohibited by
                any
                Legal Requirement (as hereafter defined), governs all the Credit
                Facilities as defined below.

            

    

     

    
      	 	
              1.2

            	
              Facility
                A ($20,000,000.00 Advancing Converting to a Term
                Loan).
                The Bank has approved a credit facility to the Borrower in the principal
                sum not to exceed $20,000,000.00 in the aggregate at any one time
                outstanding (“Facility
                A”).
                Credit under Facility A shall be repayable as set forth in an Advancing
                Converting to a Term Note in the original principal amount of
                $20,000,000.00 executed concurrently with this agreement, and any
                renewals, modifications, extensions, rearrangements, restatements
                thereof
                and replacements or substitutions therefor. The proceeds of Facility
                A
                shall be used for general corporate
                purposes.

            

    

     

    
      	 	
              1.3

            	
              Facility
                B ($5,000,000.00 Line of Credit).
                The Bank has approved a credit facility to the Borrower in the principal
                sum not to exceed $5,000,000.00 in the aggregate at any one time
                outstanding (“Facility
                B”).
                Credit under Facility B shall be repayable as set forth in a Line
                of
                Credit Note in the original principal amount of $5,000,000.00 executed
                concurrently with this agreement, and any renewals, modifications,
                extensions, rearrangements, restatements thereof and replacements
                or
                substitutions therefor. The proceeds of Facility B shall be used
                for
                general corporate purposes.

            

    

     

    
      	 	
              1.4

            	
              Non-Usage
                Fee.
                The Borrower shall pay to the Bank a non-usage fee calculated on
                the
                average daily unused portion of Facility B at a rate of 0.18% per
                annum,
                payable in arrears within fifteen (15) days of the end of each calendar
                quarter for which the fee is owing. The Bank may begin to accrue
                the
                foregoing fee on the date the Borrower signs or otherwise authenticates
                this agreement.

            

    

     

    2. Definitions
      and Interpretations.

     

    A. Definitions.
      As used in this agreement, the following terms have the following respective
      meanings:

    

    
      	 	
              (1)

            	
              “10-K
                Report”
                means any annual report on Form 10-K submitted by any Obligor or
                any
                Obligor’s Subsidiary to a Governmental Authority, including but not
                limited to the Securities and Exchange Commission, along with copies
                of
                the financial statements contained in such annual report and any
                annual
                report to shareholders of any Obligor or any Obligor’s Subsidiary for the
                fiscal quarter then ended. Any 10K Report shall be furnished to the
                Bank
                via the EDGAR System and/or the Obligor’s or the Obligor’s Subsidiary’s
                Home Page. If for any reason, the EDGAR System and/or the Obligor’s or the
                Obligor’s Subsidiary’s Home Page are not available to the Bank as is
                required for making available the 10-K Report, the Borrower shall
                then
                furnish a copy of the 10-K Report to the
                Bank.

            

    

     

    
      	 	
              (2)

            	
              “10-Q
                Report”
                means any quarterly report on Form 10-Q submitted by any Obligor
                or any
                Obligor’s Subsidiary to a Governmental Authority, including but not
                limited to the Securities and Exchange Commission, along with copies
                of
                the financial statements contained in such quarterly report and any
                quarterly report to shareholders of any Obligor or any Obligor’s
                Subsidiary for the fiscal quarter then ended. Any 10-Q Report shall
                be
                furnished to the Bank via the EDGAR System and/or the Obligor’s or the
                Obligor’s Subsidiary’s Home Page. If for any reason, the EDGAR System
                and/or the Obligor’s or the Obligor’s Subsidiary’s Home Page are not
                available to the Bank as is required for making available the 10Q
                Report,
                the Borrower shall then furnish a copy of the 10-Q Report to the
                Bank.

            

    

     

    
      
        
        

      

      
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              (3)

            	
              “Affiliate”
                means, as to any Person, any other Person: (1) that directly or
                indirectly, through one or more intermediaries, controls or is controlled
                by, or is under common control with, such Person; (2) that directly
                or
                indirectly beneficially owns or holds five percent (5%) or more of
                any
                class of voting stock of such Person; or (3) five percent (5%) or
                more of
                the voting stock of which is directly or indirectly beneficially
                owned or
                held by the Person in question. The term “control” means to possess,
                directly or indirectly, the power to direct the management and policies
                of
                a Person, whether through Equity Interests, by contract, or otherwise,
                The
                Bank is not under any circumstances to be deemed an Affiliate of
                Borrower
                or any of its Subsidiaries.

            

    

     

    
      	 	
              (4)

            	
              “Authorizing
                Documents”
                means certificates of authority to transact business, certificates
                of good
                standing, borrowing resolutions, appointments, officer’s certificates,
                certificates of incumbency, and other documents which empower and
                authorize or evidence the power and authority of the Parties executing
                any
                Related Document or their representatives to execute and deliver
                the
                Related Documents and perform the Party’s obligations
                thereunder.

            

    

     

    
      	 	
              (5)

            	
              “Business
                Day”
                means a day when the main office of the Bank is open for the conduct
                of
                commercial lending business.

            

    

     

    
      	 	
              (6)

            	
              “Call
                Report”
                means any Report of Condition and Income, Thrift Financial Report
                or any
                substantially similar report (or replacement of any such report)
                submitted
                by any Obligor or any Obligor’s Subsidiary to a Governmental
                Authority.

            

    

     

    
      	 	
              (7)

            	
              “Corporation”
                means corporations, partnerships, limited liability companies, joint
                ventures, joint stock associations, associations, banks, business
                trusts
                and other entities.

            

    

     

    
      	 	
              (8)

            	
              “Credit
                Facilities”
                means all extensions of credit from the Bank to the Borrower, whether
                now
                existing or hereafter arising, including but not limited to those
                described in Section 1, if any, and those extended contemporaneously
                with
                this agreement, including any and all renewals, modifications, extensions,
                rearrangements, restatements thereof and replacements or substitutions
                therefor.

            

    

     

    
      	 	
              (9)

            	
              “EDGAR
                System”
                means the Electronic Data Gathering Analysis and Retrieval System
                owned
                and operated by the United States Securities and Exchange Commission
                or
                any replacement system.

            

    

     

    
      	 	
              (10)

            	
              “Equity
                Interests”
                means shares of capital stock, partnership interests, membership
                interests
                in a limited liability company, beneficial interests in a trust or
                other
                equity ownership interests in an entity, and any warrants, options
                or
                other rights entitling the holder thereof to purchase or acquire
                any such
                equity interest.

            

    

     

    
      	 	
              (11)

            	
              “GAAP”
                means generally accepted accounting principles in effect in the United
                States of America, consistently
                applied.

            

    

     

    
      	 	
              (12)

            	
              “Governmental
                Authority”
                means any foreign governmental authority, the United States of America,
                any state thereof, any political subdivision of any of the foregoing
                or
                any agency, department, commission, board, bureau, court or other
                tribunal
                having jurisdiction over the Bank, the Borrower or any other Obligor,
                or
                any Subsidiary of the Borrower or their respective properties or
                any
                agreement by which any of them is bound. Governmental Authority includes
                but is not limited to the Board of Governors of the Federal Reserve
                System
                (“FRB”),
                the Federal Deposit Insurance Corporation (the “FDIC”),
                the Colorado Division of Banking (“CDOB”),
                the Office of Thrift Supervision (the “OTS”),
                the Office of the Comptroller of the Currency (the “OCC”)
                and the Securities and Exchange Commission (the “SEC”).

            

    

     

    
      	 	
              (13)

            	
              “Home
                Page”
                means any corporate home page on the World Wide Web accessible through
                the
                Internet via a universal resource locator (“URL”).
                The Borrower shall designate in writing to the Bank the URL identification
                of the Home Page, if any, of each Obligor and each Obligor’s Subsidiary
                required to submit any 10-K or 10-Q Report. As of the date of this
                agreement, the Borrower’s Home Page may be accessed via the URL identified
                as “http://www.uwbancorp.com/”.

            

    

     

    
      
        
        

      

      
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              (14)

            	
              “Indebtedness”
                means and includes (without duplication) (i) all items arising from
                the
                borrowing of money, which according to GAAP, would be included in
                determining total liabilities as shown on the balance sheet; (ii)
                all
                indebtedness secured by any Lien on property owned by the Borrower
                or the
                Subsidiaries of the Borrower whether or not such indebtedness shall
                have
                been assumed; (iii) all guarantees and similar contingent liabilities
                in
                respect to indebtedness of others; and (iv) all other interest-bearing
                obligations evidencing indebtedness to others for borrowed
                money.

            

    

     

    
      	 	
              (15)

            	
              “Legal
                Requirement”
                means any law, ordinance, decree, requirement, order, judgment, rule,
                regulation (or interpretation of any of the foregoing) of, and the
                terms
                of any list, license or permit issued by, any Governmental
                Authority.

            

    

     

    
      	 	
              (16)

            	
              “Liabilities”
                means all obligations, indebtedness and liabilities of every kind
                and
                character of the Borrower to the Bank, its successors and assigns,
                now
                existing or later arising, whether the obligations, indebtedness
                and
                liabilities are individual, joint and several, contingent or otherwise,
                including, without limitation, all liabilities, interest, costs and
                fees,
                arising under or from any note, open account, overdraft, credit card,
                lease, Rate Management Transaction, letter of credit application;
                endorsement, surety agreement, guaranty, acceptance, foreign exchange
                contract or depository service contract, whether payable to the Bank
                or to
                a third party and subsequently acquired by the Bank, any monetary
                obligations (including interest) incurred or accrued during the pendency
                of any bankruptcy, insolvency, receivership or other similar proceedings,
                regardless of whether allowed or allowable in such proceeding, and
                all
                renewals, extensions, modifications, consolidations, rearrangements,
                restatements, replacements, restatements or substitutions of any
                of the
                foregoing.

            

    

     

    
      	 	
              (17)

            	
              “Lien”
                means any mortgage, deed of trust, pledge, charge, encumbrance, security
                interest, collateral assignment or other lien or restriction of any
                kind,
                whether based on common law, constitutional provision, statute or
                contract.

            

    

     

    
      	 	
              (18)

            	
              “Material
                Subsidiary”
                means United Western Bank, and any other Subsidiary of any Obligor
                the
                stockholders’ equity of which exceeds an amount equal to fifteen percent
                (15%) of the consolidated stockholders’ equity of the Obligor, determined
                in accordance with GAAP.

            

    

     

    
      	 	
              (19)

            	
              “Notes”
                means each and all promissory notes, instruments and/or other contracts
                now or hereafter evidencing the terms and conditions of any of the
                Credit
                Facilities.

            

    

     

    
      	 	
              (20)

            	
              “Obligor”
                means each Borrower and any guarantor, surety, co-signer, general
                partner
                or other Person who may now or hereafter be obligated to pay all
                or any
                part of the Liabilities.

            

    

     

    
      	 	
              (21)

            	
              “Organizational
                Documents”
                means, with respect to any entity, certificates of existence or formation,
                documents establishing or governing the entity or evidencing or certifying
                that the entity is duly organized and validly existing in accordance
                with
                all applicable Legal Requirements; including all modifications and
                supplements of such certificates and documents as of the date of
                the
                Related Document referring to the Organizational Document and any
                and all
                future modifications thereto approved by the
                Bank.

            

    

     

    
      	 	
              (22)

            	
              “Parties”
                means all Persons other than the Bank executing any Related
                Document.

            

    

     

    
      	 	
              (23)

            	
              “Person”
                means any individual, Corporation, trust, unincorporated organization,
                Governmental Authority or any other form of
                entity.

            

      	 	 	 

      	 	(24)	“Proper Form”
              means in form and substance satisfactory to the
              Bank.

     

    
      	 	
              (25)

            	
              “Rate
                Management Transaction”
                means any transaction (including an agreement with respect thereto)
                that
                is a rate swap, basis swap, forward rate transaction, commodity swap,
                commodity option, equity or equity index swap, equity or equity index
                option, bond option, interest rate option, foreign exchange transaction,
                cap transaction, floor transaction, collar transaction, forward
                transaction, currency swap transaction, cross-currency rate swap
                transaction, currency option, derivative transaction or any other
                similar
                transaction (including any option with respect to any of these
                transactions) or any combination thereof, whether linked to one or
                more
                interest rates, foreign currencies, commodity prices, equity prices
                or
                other financial measures.

            

    

     

    
      
        
        

      

      
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              (26)

            	
              “Related
                Documents”
                means this agreement, the Notes, applications for letters of credit,
                all
                loan agreements, credit agreements, reimbursement agreements, security
                agreements, mortgages, deeds of trust, pledge agreements, assignments,
                guaranties, and any other instrument or document executed in connection
                with this agreement or in connection with any of the
                Liabilities.

            

    

     

    
      	 	
              (27)

            	
              “Subordinated
                Debt”
                means any Indebtedness subordinated to Indebtedness due to the Bank
                pursuant to a written subordination agreement in Proper Form by and
                among
                the Bank, subordinated creditor and the Borrower which at a minimum
                must
                prohibit: (a) any action by any subordinated creditor which will
                result in
                an occurrence of an Event of Default or default under this agreement,
                the
                subordination agreement or the subordinated Indebtedness; and (b)
                upon the
                happening of any Event of Default or default under any Related Documents,
                the subordination agreement, or any instrument evidencing the subordinated
                Indebtedness: (i) any payment of principal and interest on the
                subordinated Indebtedness; (ii) any act to compel payment of principal
                or
                interest on subordinated Indebtedness; and (iii) any action to realize
                upon any collateral securing the subordinated
                Indebtedness.

            

    

     

    
      	 	
              (28)

            	
              “Subsidiary”
                means, as to a particular parent Corporation, any Corporation of
                which 50%
                or more of the indicia of equity rights is at the time of determination
                directly or indirectly owned by such parent Corporation or by one
                or more
                Persons controlled by, controlling or under common control with such
                parent Corporation.

            

    

     

    
      	 	
              B.

            	
              Interpretations.
                Whenever the Bank’s determination, consent, approval or satisfaction is
                required under this agreement or the other Related Documents or whenever
                the Bank may at its option take or refrain from taking any action
                under
                this agreement or the other Related Documents, the decision as to
                whether
                or not the Bank makes the determination, consents, approves, is satisfied
                or takes or refrains from taking any action, shall be in the sole
                and
                exclusive discretion of the Bank and the Bank’s decision shall be final
                and conclusive.

            

    

     

    3. Conditions
      Precedent.

     

    
      	 	
              3.1

            	
              Conditions
                Precedent to Initial Extension of Credit.
                Before the first extension of credit governed by this agreement and
                any
                initial advance under any of the Credit Facilities, whether by
                disbursement of a loan, issuance of a letter of credit, or otherwise,
                the
                Borrower shall deliver to the Bank in Proper
                Form:

            

    

     

    A. Related
      Documents.
      The Notes, and as applicable, the letter of credit applications, the security
      agreements, the pledge agreements, financing statements, mortgages or deeds
      of
      trust, the guaranties, the subordination agreements, and any other documents
      which the Bank may reasonably require to give effect to the transactions
      described in this agreement or the other Related Documents;

     

    B. Organizational
      and Authorizing Documents.
      The Organizational Documents and Authorizing Documents of the Borrower and
      any
      other Party executing the Related Documents that at a minimum (i) document
      the
      due organization, valid existence and good standing of the Borrower and every
      other entity that is a Party to this agreement or any other Related Document;
      (ii) evidence that each entity which is a Party to this agreement or any other
      Related Document has the power and authority to enter into the transactions
      described therein, and (iii) evidence that the Person signing on behalf of
      each
      entity which is a Party to the Related Documents (other than the Bank) is duly
      authorized to do so;

     

    C. Continuing
      Pledge of Stock.
      (i) A duly executed continuing pledge of all of the outstanding stock of United
      Western Bank; (ii) delivery of all stock certificates evidencing all of the
      outstanding stock of United Western Bank and (iii) stock powers duly executed
      in
      blank.

     

    
      
        
        

      

      
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    D. Payoff
      Existing Debt/Release of Liens.
      Full payment and satisfaction of all debt of the Borrower and each of its
      Subsidiaries other than the Indebtedness permitted by Section 5.1 hereof, and
      the release and satisfaction of all Liens other than the Liens permitted by
      Section 5.2 hereof.

     

    E. Satisfactory
      Review.
      Such documents and information as the Bank may reasonably request in performing
      its own due diligence review of the Borrower’s financial condition and
      operations, the results of which review must be in Proper Form.

     

    
      	 	
              3.2

            	
              Conditions
                Precedent to Each Extension of Credit.
                Before any extension of credit governed by this agreement, whether
                by
                disbursement of a loan, issuance of a letter of credit or otherwise,
                the
                following conditions must be
                satisfied:

            

    

     

    A. Representations.
      The representations of the Borrower and any other Parties to the Related
      Documents are true on and as of the date of the extension of
      credit;

     

    B. No
      Event of Default.
      No default or Event of Default has occurred under this agreement, the Notes
      or
      any other Related Documents and is continuing or would result from the extension
      of credit, and no event has occurred which would constitute the occurrence
      of
      any Event of Default but for the lapse of time until the end of any grace or
      cure period, if any;

     

    C. Additional
      Approvals, Opinions, and Documents.
      The Bank has received any other approvals, opinions and documents as it may
      reasonably request; and

     

    D. No
      Prohibition or Onerous Conditions.
      The making of the extension of credit is not prohibited by and does not subject
      the Bank, the Borrower, any Subsidiary of the Borrower or any other Obligor
      of
      any of the Liabilities to any penalty or onerous condition under any Legal
      Requirement.

     

    
      	 	
              3.3

            	
              Satisfaction
                of Conditions Precedent.
                The acceptance of the proceeds and benefits of the proceeds of any
                Credit
                Facility shall constitute a representation and warranty by the Parties
                that all of the conditions specified in this Article 3 for that Credit
                Facility have been satisfied as of that
                time.

            

    

     

    
      	
              4.

            	
              Affirmative
                Covenants. The
                Borrower agrees to do, and will cause each of its Material Subsidiaries
                to
                do, each of the following:

            

    

     

    
      	 	
              4.1

            	
              Financial
                Information.
                Furnish to the Bank in Proper Form (1) the financial statements prepared
                in conformity with GAAP on a consolidated basis and the other information
                described in, and within the times required by, Exhibit A, Reporting
                Requirements, Financial Covenants and Compliance Certificate attached
                hereto and incorporated in this agreement by reference; (2) within
                the
                time required by Exhibit A, Exhibit A, signed or otherwise authenticated
                and certified by the chief financial officer or president of the
                Party
                required to submit the information; (3) to the extent permitted by
                applicable Legal Requirements, promptly after the same are available,
                copies of each annual report or financial statement or other report
                or
                communication sent by the Borrower to the shareholders of the Borrower;
                and each registration statement which the Borrower or any Material
                Subsidiary may file with any Governmental Authority or with any securities
                exchange; (4) promptly after a request is submitted to the appropriate
                Governmental Authority, any request for waiver of funding standards
                or
                extension of amortization periods with respect to any employee benefit
                plan; (5) promptly after the Bank’s request, copies of special audits,
                studies, reports and analyses prepared by outside parties for the
                management of the Borrower, any of its Material Subsidiaries or any
                other
                Obligor; and (6) such other information relating to the financial
                condition, prospects and affairs of the Borrower, each other Obligor
                and
                their respective Material Subsidiaries, as the Bank may reasonably
                request
                from time to time. Nothing in this agreement shall require the Borrower
                to
                provide any information to the Bank which the Borrower, any other
                Obligor
                or any of their respective Subsidiaries is prohibited by Legal
                Requirements to disclose. All proceeds of any collateral shall be
                deposited in an account maintained with the
                Bank.

            

    

     

    
      	 	
              4.2

            	
              Existence.
                Maintain its existence and business operations, as presently in effect,
                in
                accordance with all applicable Legal Requirements, pay its debts
                and
                obligations when due under normal terms, and pay on or before their
                due
                date, all taxes, assessments, fees and other governmental monetary
                obligations, except as they may be contested in good faith (if they
                have
                been properly reflected on its books) and, at the Bank’s request, have
                adequate funds or security pledged or reserved to insure payment.
                -

            

    

     

    
      
        
        

      

      
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              4.3

            	
              Financial
                Records.
                Maintain proper books and records of accounts, in accordance with
                GAAP,
                and consistent with financial statements previously submitted to
                the
                Bank.

            

    

     

    
      	 	
              4.4

            	
              Inspection.
                Permit the Bank or its representatives, at those times and at the
                intervals as the Bank may reasonably require: (1) to inspect, examine,
                audit and copy its business records, and to discuss its business,
                operations, prospects, assets, affairs and financial condition with
                its
                officers, employees and accountants; and (2) to inspect its business
                operations and sites. Nothing in this agreement shall give the Bank
                the
                right to inspect or copy any records of any examination report of
                the
                Borrower’s supervisory Governmental Authority or other information that
                the Borrower or any of its Subsidiaries are prohibited by any Legal
                Requirement from disclosing without the consent of the supervising
                Governmental Authority; provided, however, the Borrower will and
                will
                cause each of its Material Subsidiaries to, cooperate in obtaining
                any
                consent should the Bank request the
                disclosure.

            

    

     

    
      	 	
              4.5

            	
              Notices
                of Claims, Litigation, Defaults, etc.
                Promptly inform the Bank in writing of (1) all existing and threatened
                litigation, claims, investigations, administrative proceedings and
                similar
                actions or changes in Legal Requirements affecting it which could
                materially affect any Obligor’s or any Material Subsidiary’s business,
                property, affairs, prospects or financial condition; (2) the occurrence
                of
                any default or Event of Default and the circumstances which give
                rise to
                the Bank’s option to terminate the Credit Facilities to the extent the
                disclosure does not violate any Legal Requirement; (3) any additions
                to or
                changes in its chief executive office or principal place of business;
                and
                (4) any alleged breach by the Bank of any provision of this agreement
                or
                of any other Related Documents.

            

    

     

    
      	 	
              4.6

            	
              Title
                to Assets and Property.
                Maintain good and marketable title to all of its assets and properties
                and
                defend its assets and properties against all claims and demands of
                all
                Persons at any time claiming any interest in
                them.

            

    

     

    
      	 	
              4.7

            	
              Additional
                Assurances.
                Promptly make, execute and deliver any and all agreements, documents,
                instruments and other records that the Bank may reasonably request
                to
                evidence any of the Credit Facilities, cure any defect in the execution
                and delivery of any of the Related Documents, perfect any Lien, comply
                with any Legal Requirement applicable to the Bank or the Credit Facilities
                or more fully to describe particular aspects of the agreements set
                forth
                or intended to be set forth in any of the Related
                Documents.

            

    

     

    
      	 	
              4.8

            	
              Compliance
                Certificate.
                Comply with each of the other additional covenants, if any, set forth
                in
                Exhibit A.

            

    

     

    
      	 	
              4.9

            	
              Ownership
                of United Western Bank.
                The Borrower shall at all times maintain ownership of one hundred
                percent
                (100%) of the capital stock of United Western
                Bank.

            

    

     

    
      	 	
              4.10

            	
              Capitalization
                Status.
                The Borrower shall cause United Western Bank to maintain at all times
                its
                categorization as “Well Capitalized” as defined by the regulations of
                United Western Bank’s primary Governmental
                Authority.

            

    

     

    
      	 	
              4.11

            	
              Non-Performing
                Assets Plus OREO Ratio.
                The Borrower shall cause United Western Bank to maintain at all times
                a
                Non-Performing Assets Plus OREO Ratio of not greater than three and
                one
                quarter of one percent (3.25%). As used in this Section, the term
                “Non-Performing
                Assets Ratio”
                means the ratio, determined on a consolidated basis for United Western
                Bank, of the sum of Non-Perfoming Assets plus OREO, to the sum of
                Total
                Loans and Repossessed Assets plus OREO. As used in this Section,
                (A)
                “Non-Perfoming
                Assets”
                means the sum of all loans classified as past due 90 days or more
                and
                still accruing interest, all loans classified as “non-accrual” and no
                longer accruing interest, all loans classified as “restructured loans and
                leases”, total investment in restructured assets, net of specific
                valuation allowances, total repossessed assets, net of general valuation
                allowances, and all other “nonperforming loans”, excluding loans 100%
                guaranteed by the U.S. government; (B) “Total
                Loans and Repossessed Assets”
                means the total of all performing and non-performing loans, valuation
                allowances on all loans, and allowances for loan and lease losses
                on all
                loans; and (C) “OREO”
                means the book value, net of accumulated depreciation, of all other
                real
                estate owned by United Western Bank, excluding all real estate which
                is
                not occupied and used by United Western Bank in the ordinary course
                of
                business. The ratio set forth in this Section shall be measured quarterly
                and shall be determined from the applicable Call Report filed with
                the
                applicable Governmental Authority.

            

    

     

    
      
        
        

      

      
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              5.

            	
              Negative
                Covenants. Without
                the prior written consent of the Bank, the Borrower will not and
                no
                Material Subsidiary of the Borrower
                will:

            

    

     

    
      	 	
              5.1

            	
              Indebtedness.
                Incur, contract for, assume, permit to remain outstanding, or in
                any
                manner become liable in respect of any Indebtedness, other than (1)
                Indebtedness incurred in the ordinary course of business and in accordance
                with applicable Legal Requirements and safe and sound banking practices;
                (2) Indebtedness reflected in the financial statements dated December
                31,
                2006; (3) additional Indebtedness contracted for after the date of
                this
                agreement that does not exceed the amounts reflected in those financial
                statements described in (2) above; (4) upon the approval of the Bank,
                Subordinated Debt; (5) additional trust preferred securities in an
                amount
                not to exceed $10,000,000.00; and (6) Indebtedness of United Western
                Bank
                incurred in the normal course of business, in accordance with safe
                and
                sound banking practices and types consistent with borrowings reflected
                in
                the financial statements dated December 31, 2006, to the Bank or
                any of
                its Affiliates and to the Federal Home Loan Bank of Topeka, the Federal
                Home Loan Bank of Dallas, Citigroup, Inc. or the Federal Reserve
                Bank of
                Kansas City.

            

    

     

    
      	 	
              5.2

            	
              Liens.
                Create, assume, incur, suffer or permit to exist any Lien of any
                kind or
                character upon or with respect to any of its assets or properties,
                whether
                now owned at the date hereof or later acquired, or assign or otherwise
                convey any right to receive income, other than (i) in the ordinary
                course
                of its business and in accordance with applicable laws and regulations
                and
                safe and sound banking practices including but not limited to Liens
                in
                connection with United Western Bank’s acquisition of various assets,
                generally but not exclusively through foreclosure or deed in lieu
                of
                foreclosure, provided that such Liens do not materially affect any
                Obligor’s or any Material Subsidiary’s business, property, affairs,
                prospects or financial condition; (ii) Liens that would not in any
                one
                case or in the aggregate materially adversely affect the Borrower
                and its
                Subsidiaries taken as a whole; and (iii) Liens securing the Indebtedness
                of United Western Bank incurred in the normal course of business,
                in
                accordance with safe and sound banking practices and types consistent
                with
                borrowings reflected in the financial statements dated December 31,
                2006,
                to the Bank or any of its Affiliates and to the Federal Home Loan
                Bank of
                Topeka, the Federal Home Loan Bank of Dallas, Citigroup, Inc. or
                the
                Federal Reserve Bank of Kansas
                City.

            

    

     

    
      	 	
              5.3

            	
              Disposal
                of Equity Interest in any Subsidiary.
                Pledge, sell, convey, assign, or otherwise dispose of or permit to
                exist
                any Lien on any Equity Interest in any Subsidiary other than in favor
                of
                the Bank.

            

    

     

    
      	 	
              5.4

            	
              Merger
                or Consolidations.
                (1) Dissolve; (2) merge or consolidate with any Person; (3) lease,
                sell or
                otherwise convey a material part of its assets or business outside
                the
                ordinary course of its business; (4) lease, purchase, or otherwise
                acquire
                a material part of the assets of any other Person, except in the
                ordinary
                course of its business; or (5) agree to do any of the foregoing;
                provided,
                however, that notwithstanding the foregoing, any Subsidiary other
                than
                United Western Bank may merge or consolidate with any other Subsidiary,
                or
                with the Borrower, so long as the Borrower is the
                survivor.

            

    

     

    
      	 	
              5.5

            	
              Use
                of Proceeds.
                Use, or permit any proceeds of the Credit Facilities to be used,
                directly
                or indirectly, for the purpose of “purchasing or carrying any margin
                stock” within the meaning of Federal Reserve Board Regulation U
                (“Regulation
                U”).
                At the Bank’s request, the Borrower will furnish a completed Federal
                Reserve Board Form U-1.

            

    

     

    
      	 	
              5.6

            	
              Negative
                Pledge of Assets.
                Enter into any agreement with any Person other than the Bank which
                prohibits or limits its ability to create or permit to exist any
                Lien on
                any of its property, assets or revenues, whether now owned or hereafter
                acquired.

            

    

     

    
      	 	
              5.7

            	
              Affiliate
                Transactions.
                Enter into any transaction or agreement with any Affiliate in violation
                of
                any Legal Requirement.

            

    

     

    
      	 	
              5.8

            	
              Continuity
                of Operations.
                (1) Engage in any business activities substantially different from
                those
                in which it is presently engaged; or (2) cease operations, liquidate,
                change its name, dissolve, or sell any assets out of the ordinary
                course
                of business,

            

    

     

    
      
        
        

      

      
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              5.9

            	
              Conflicting
                Agreements.
                Enter into any agreement containing any provision which would be
                violated
                or breached by the performance of its obligations under this agreement
                or
                any of the other Related Documents.

            

    

     

    
      	 	
              5.10

            	
              Government
                Regulation.
                (1) Be or become subject at any time to any Legal Requirement (including,
                without limitation, the U.S. Office of Foreign Asset Control list)
                that
                prohibits or limits the Bank from making any advance or extension
                of
                credit to the Borrower or from otherwise conducting business with
                it; or
                (2) fail to provide documentary and other evidence of its identity
                as may
                be requested by the Bank at any time to enable the Bank to verify
                its
                identity or to comply with any Legal Requirement, including, without
                limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
                Section
                5318.

            

    

     

    
      	
              6.

            	
              Representations,
                Warranties and Covenants by the Borrower. To
                induce the Bank to enter into this agreement and to extend credit
                or other
                financial accommodations under the Credit Facilities, the Borrower
                represents and warrants as of the date of this agreement and as of
                the
                date of each request for credit under the Credit Facilities that
                each of
                the following statements is and shall remain true and correct throughout
                the term of this agreement and until all Credit Facilities and all
                amounts
                owing under the Notes and other Related Documents are paid in
                full:

            

    

     

    
      	 	
              6.1

            	
              Organization
                and Status.
                The Borrower is a Colorado corporation registered as a savings and
                loan
                holding company with the Director of the Office of Thrift Supervision,
                and
                the Borrower and each of its Material Subsidiaries is duly organized,
                validly existing and in good standing under the laws of its organization
                and is duly qualified to do business and is in good standing under
                the
                laws of each state in which the ownership of its properties and the
                nature
                and extent of the activities transacted by it makes such qualification
                necessary.

            

    

     

    
      	 	
              6.2

            	
              Financial
                Statements.
                All financial statements delivered to the Bank are complete and correct
                and fairly present, in accordance with GAAP, the financial condition
                and
                the results of operations of the Borrower and each Subsidiary of
                the
                Borrower, as at the dates and for the periods indicated. No material
                adverse change has occurred in the assets, liabilities, financial
                condition, business or affairs of the Borrower or any of its Material
                Subsidiaries since the dates of such financial statements dated December
                31, 2006. Neither the Borrower nor any of its Material Subsidiaries
                is
                subject to any instrument or agreement materially and adversely affecting
                its financial condition, operations, business or
                affairs.

            

    

     

    
      	 	
              6.3

            	
              Enforceability.
                This agreement, the Notes, and the other Related Documents have been
                duly
                authorized, executed and delivered by the Parties thereto and are
                valid
                and binding agreements of the Parties, enforceable according to their
                terms, except as may be limited by bankruptcy, insolvency, reorganization
                or other laws affecting the enforcement of creditors’ rights generally and
                by general principles of equity. The execution, delivery and performance
                of this agreement, the Notes and the other Related Documents and
                the
                obligations that they impose, do not violate any Legal Requirement,
                conflict with any agreement by which any Party is bound, or require
                the
                consent or approval of any Governmental Authority or other third
                party
                which has not been promptly obtained in connection with the execution
                and
                delivery of this agreement and the other Related
                Documents.

            

    

     

    
      	 	
              6.4

            	
              Litigation.
                There is no litigation, claim, investigation, administrative proceeding
                or
                similar action (including those for unpaid taxes) against the Borrower,
                any of its Material Subsidiaries or any other Obligor pending or
                threatened, and no other event has occurred, which may in any one
                case or
                in the aggregate materially adversely affect the Borrower, any of
                its
                Material Subsidiaries, any other Obligor or any of their respective
                financial conditions and properties, other than litigation, claims,
                or
                other events, if any, that have been disclosed to and acknowledged
                by the
                Bank in writing.

            

    

     

    
      	 	
              6.5

            	
              Title
                and Rights.
                The Borrower and each of its Material Subsidiaries have good and
                marketable title to their respective properties, free and clear of
                any
                Lien except for Liens disclosed to and approved in writing by the
                Bank and
                those permitted by this agreement and the other Related Documents.
                The
                Borrower and each of its Material Subsidiaries possess all permits,
                licenses, patents, trademarks and copyrights required to conduct
                their
                respective businesses.

            

    

     

    
      	 	
              6.6

            	
              Regulation
                U; Business Purpose.
                None of the proceeds of any of the Credit Facilities will be used
                to
                purchase or carry, directly or indirectly, any margin stock or for
                any
                other purpose which would make this credit a “purpose credit” within the
                meaning of Regulation U or not an exempt transaction under Regulation
                U.
                All Credit Facilities will be used for business purposes and for
                the
                express purposes that the Borrower has informed the Bank that it
                will use
                the credit. None of the stock of the Borrower’s Subsidiaries is margin
                stock as defined in Regulation U.

            

    

     

    
      
        
        

      

      
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              6.7

            	
              Capital
                Stock of the Borrower’s Material Subsidiaries.
                (1) All of the issued and outstanding capital stock of each of the
                Borrower’s Material Subsidiaries (the “Borrower’s
                Subsidiaries’ Material Shares”)
                has been duly authorized, legally and validly issued, fully paid
                and
                non-assessable, and the Borrower’s Material Subsidiaries’ Shares are owned
                by the Borrower, free and clear of all Liens, except as may exist
                for the
                benefit of the Bank; (2) none of the Borrower’s Material Subsidiaries’
                Shares have been issued in violation of any shareholder’s preemptive
                rights; and (3) there are, as of the date of this agreement, no
                outstanding options, rights, warrants, plans, understandings or other
                agreements or instruments obligating the Borrower to issue, deliver
                or
                sell, or cause to be issued, delivered or sold, or contemplating
                or
                providing for the issuance of, additional shares of the capital stock
                of
                the Borrower’s Material Subsidiaries, or obligating the Borrower or the
                Borrower’s Material Subsidiaries to grant, extend or enter into any such
                agreement or commitment.

            

    

     

    
      	 	
              6.8

            	
              Regulatory
                Enforcement Actions.
                None of the Borrower, or any of its Material Subsidiaries, or any
                of their
                respective officers or directors, is now operating under or will
                operate
                under any effective written restrictions agreed to by the Borrower
                or by
                any of its Material Subsidiaries, or agreements, memoranda, or written
                commitments by the Borrower or by any of its Material Subsidiaries
                (other
                than restrictions of general application) imposed or required by
                any
                Governmental Authority nor are any such restrictions threatened or
                agreements, memoranda or commitments being sought by any Governmental
                Authority.

            

    

     

    
      	 	
              6.9

            	
              No
                Liens.
                The Borrower is not a party to any agreement, instrument or undertaking
                or
                subject to any other restriction pursuant to which the Borrower has
                placed, or will be required to place (or under which any other Person
                may
                place), a Lien upon any of its properties securing Indebtedness,
                either
                upon demand or upon the happening of a condition, with or without
                any
                demand.

            

    

     

    
      	 	
              6.10

            	
              Compliance.
                The Borrower and each of its Material Subsidiaries has filed all
                applicable tax returns and paid all taxes shown thereon to be due,
                except
                those for which extensions have been obtained and those which are
                being
                contested in good faith and for which adequate reserves have been
                established. The Borrower and each of its Material Subsidiaries is
                in
                compliance with all applicable material Legal Requirements and manages
                and
                operates (and will continue to manage and operate) its business in
                accordance with good industry practices. Neither the Borrower nor
                any of
                its Material Subsidiaries is in default in the payment of any other
                Indebtedness or under any agreement to which it is a party. The Parties
                have obtained all consents of and registered with all Governmental
                Authorities and other Persons required to execute, deliver and perform
                the
                Related Documents.

            

    

     

    
      	 	
              6.11

            	
              No
                Claims Against the Bank.
                There are no defenses or counterclaims, offsets or adverse claims,
                demands
                or actions of any kind, personal or otherwise, that the Borrower
                or any
                other Obligor could assert with respect to this agreement or the
                Credit
                Facilities.

            

    

     

    
      	 	
              6.12

            	
              Statements
                by Others.
                All statements made by or on behalf of the Borrower, any of its Material
                Subsidiaries or any other of the Parties in connection with any Related
                Document constitute the joint and several representations and warranties
                of the Borrower under this
                agreement.

            

    

     

    
      	 	
              6.13

            	
              Environment.
                The Borrower and each of its Material Subsidiaries have complied
                with
                applicable Legal Requirements in each instance in which any of them
                have
                generated, handled, used, stored or disposed of any hazardous or
                toxic
                waste or substance, on or off its premises (whether or not owned
                by any of
                them). Neither the Borrower nor any of its Material Subsidiaries
                has any
                material contingent liability for non-compliance with environmental
                or
                hazardous waste laws. Neither the Borrower nor any of its Material
                Subsidiaries has received any notice that it or any of its property
                or
                operations does not comply with, or that any Governmental Authority
                is
                investigating its compliance with, any environmental or hazardous
                waste
                laws.

            

    

     

    
      	 	
              6.14

            	
              Continuing
                Representations.
                Each request for an advance or conversion or continuation of an advance
                under any of the Credit Facilities shall constitute a representation
                and
                warranty by the Borrower that all of the representations and warranties
                set forth in this agreement shall be true and correct on and as of
                such
                date with the same effect as though such representations and warranties
                had been made on such date, except to the extent that such representations
                and warranties are stated to expressly relate solely to an earlier
                date.

            

    

     

    
      
        
        

      

      
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    7. Default/Remedies.

     

    7.1 Events
      of Default.
      Each of the following is an “Event
      of Default”:

     

    A. The
      Borrower or any other Obligor fails to pay when due any amount payable (1)
      under
      the Notes or under any other Liabilities; or (2) under any agreement or
      instrument evidencing Indebtedness to any creditor other than the
      Bank.

     

    B. The
      Borrower, any of its Material Subsidiaries or any other Obligor (1) fails to
      observe or perform or otherwise violates any other term, covenant, condition
      or
      agreement of any of the Notes or other Related Documents; (2) makes any
      materially incorrect or misleading representation, warranty, or certificate
      to
      the Bank; (3) makes any materially incorrect or misleading representation in
      any
      financial statement or other information delivered to the Bank; or (4) defaults
      under the terms of any agreement or instrument relating to any Indebtedness
      (other than the Indebtedness evidenced by the Notes) and the effect of such
      default will allow the creditor to declare the Indebtedness due before its
      maturity.

     

    C. In
      the event (1) there is a default under the terms of any Related Document; or
      (2)
      the Borrower fails to comply with, or pay, or perform under any agreement,
      now
      or hereafter in effect, between the Borrower and JPMorgan Chase & Co. or any
      of its Affiliates or their successors and assigns and the failure to comply
      with, pay or perform is not cured within any cure period specified in such
      agreement.

     

    D. The
      Borrower, any of its Material Subsidiaries or any other Obligor becomes
      insolvent or unable to pay its debts as they become due.

     

    E. The
      Borrower, any of its Material Subsidiaries or any other Obligor (1) makes an
      assignment for the benefit of creditors; (2) consents to the appointment of
      a
      custodian, receiver, or trustee for itself or for a substantial part of its
      assets; or (3) commences any proceeding under any bankruptcy, reorganization,
      liquidation, insolvency or similar laws of any jurisdiction.

     

    F. A
      custodian, receiver, conservator or trustee is appointed for the Borrower,
      any
      Material Subsidiary of the Borrower or any other Obligor or for a substantial
      part of its assets.

     

    G. Proceedings
      are commenced against the Borrower, any Material Subsidiary of the Borrower
      or
      any other Obligor under any bankruptcy, reorganization, liquidation, or similar
      laws of any jurisdiction, and they remain undismissed for thirty (30) days
      after
      commencement; or the Borrower, any Subsidiary of the Borrower or any other
      Obligor consents to the commencement of those proceedings.

     

    H. If
      any of the Borrower’s assets are attached, seized, subjected to a writ, or are
      levied upon or become subject to any Lien (with the exception of statutory
      Liens) or come within the possession of any receiver, trustee, custodian or
      assignee for the benefit of creditors; or if a notice of Lien, levy or
      assessment is filed of record or given to the Borrower or any Material
      Subsidiary of the Borrower with respect to all or any of their respective assets
      by any Governmental Authority.

     

    I. The
      FRB, the FDIC, the CDOB, the OCC, the OTS, the SEC or any other Governmental
      Authority charged with the regulation of bank holding companies or financial
      institutions issues to the Borrower or any of its Material Subsidiaries, or
      initiates through formal proceedings any action, suit or proceeding to obtain
      against, impose on or require from the Borrower or any of its Material
      Subsidiaries a cease and desist order or similar regulatory order, injunction,
      temporary restraining order, the assessment of civil monetary penalties,
      articles of agreement, a memorandum of understanding, a capital directive,
      a
      capital restoration plan, restrictions (other than board resolutions adopted
      at
      the direction of a Governmental Authority) that prevent or as a practical matter
      impair the payment of dividends by any of its Material Subsidiaries, the
      payments of any Indebtedness by the Borrower or the conduct of any or all of
      the
      business affairs of the Borrower or any of its Material Subsidiaries,
      restrictions (other than board resolutions adopted at the direction of a
      Governmental Authority) that make the payment of the dividends by any of its
      Material Subsidiaries, the payment of Indebtedness by the Borrower or the
      conduct of any or all of the business affairs of the Borrower or any of its
      Material Subsidiaries subject to prior regulatory approval, a notice or finding
      under subsection 8(a) of the Federal Deposit Insurance Act, as amended, or
      any
      similar enforcement action, measure or proceeding.

     

    
      
        
        

      

      
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    J. If
      the Borrower or any of its Material Subsidiaries is in default in the
      performance of any other term, condition or covenant contained in any agreement
      (including, but not limited to, an agreement in connection with the acquisition
      of capital equipment on a title retention or net lease basis), under which
      any
      such indebtedness is created the effect of which default in performance is
      to
      cause or permit the holder of the indebtedness to cause the indebtedness to
      become due prior to its stated maturity.

     

    K. A
      change of control of the Borrower shall occur or the Borrower shall have the
      option, exercisable on at least one (1) Business Day’s prior notice, upon the
      consummation, in whole or in part, of any transaction effecting any change
      of
      control of the Borrower that, in either case, has been approved as such, or
      is
      required to be approved by any Governmental Agency.

     

    L. A
      material adverse change occurs in the assets, liabilities, financial condition,
      business or affairs of any Obligor or any Material Subsidiary.

     

    
      	 	
              7.2

            	
              Remedies.
                At any time after the occurrence of a default, the Bank may do one
                or more
                of the following: (a) cease permitting the Borrower to incur any
                Liabilities; (b) terminate any commitment of the Bank evidenced by
                any of
                the Notes; (c) declare any of the Notes to be immediately due and
                payable,
                without notice of acceleration, presentment and demand or protest
                or
                notice of any kind, all of which are hereby expressly waived; (d)
                exercise
                all rights of setoff that the Bank may have contractually, by law,
                in
                equity or otherwise; and (e) exercise any and all other rights pursuant
                to
                any of the Related Documents, at law, in equity or
                otherwise.

            

    

     

    A. Generally.
      The rights of the Bank under this agreement and the other Related Documents
      are
      in addition to other rights (including without limitation, other rights of
      setoff) the Bank may have contractually, by law, in equity or otherwise, all
      of
      which are cumulative and hereby retained by the Bank. Each Obligor agrees to
      stand still with regard to the Bank’s enforcement of its rights, including
      taking no action to delay, impede or otherwise interfere with the Bank’s rights
      to realize on any collateral.

     

    B. Expenses.
      To the extent not prohibited by applicable law and whether or not the
      transactions contemplated by this agreement are consummated, the Borrower is
      liable to the Bank and agrees to pay on demand all reasonable costs and expenses
      of every kind incurred (or charged by internal allocation) in connection with
      the negotiation, preparation, execution, filing, recording, modification,
      supplementing and waiver of the Related Documents, the making, servicing and
      collection of the Credit Facilities and the realization on any collateral and
      any other amounts owed under the Related Documents, including without limitation
      reasonable attorneys’ fees (including counsel for the Bank that are employees of
      the Bank or its affiliates) and court costs. These costs and expenses include
      without limitation any costs or expenses incurred by the Bank in any bankruptcy,
      reorganization, insolvency or other similar proceeding involving any of the
      Parties or property of any of the Parties. The obligations of the Borrower
      under
      this section shall survive the termination of this agreement.

     

    C. Bank’s
      Right of Setoff.
      The Borrower grants to the Bank a security interest in the Deposits, and the
      Bank is authorized to setoff and apply, all Deposits, Securities and Other
      Property, and Bank Debt against any and all Liabilities. This right of setoff
      may be exercised at any time and from time to time after the occurrence of
      any
      default, without prior notice to or demand on the Borrower and regardless of
      whether any Liabilities are contingent, unmatured or unliquidated. In this
      paragraph: (a) the term “Deposits” means any and all accounts and deposits of
      the Borrower (whether general, special, time, demand, provisional or final)
      at
      any time held by the Bank (including all Deposits held jointly with another,
      but
      excluding any IRA or Keogh Deposits, or any trust Deposits in which a security
      interest would be prohibited by law); (b) the term “Securities and Other
      Property” means any and all securities and other personal property of the
      Borrower in the custody, possession or control of the Bank, JPMorgan Chase
&
Co. or their respective subsidiaries and affiliates (other than property held
      by
      the Bank in a fiduciary capacity); and (c) the term “Bank Debt” means all
      indebtedness at any time owing by the Bank, to or for the credit or account
      of
      the Borrower and any claim of the Borrower (whether individual, joint and
      several or otherwise) against the Bank now or hereafter existing.

     

    
      
        
        

      

      
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              7.3

            	
              Cure
                Periods.
                Except as expressly provided to the contrary in this agreement or
                any of
                the other Related Documents, the Bank shall not exercise its option
                to
                accelerate the maturity of the Notes upon the occurrence of a default
                unless the default has not been fully cured (i) within five (5) days
                after
                its occurrence, if the condition, event or occurrence giving rise
                to the
                default can be cured solely by the payment of money or (ii) within
                ten
                (10) days after its occurrence, if the condition, event or occurrence
                giving rise to the default is of a nature that it cannot be cured
                solely
                by the payment of money.

            

    

     

    Provided,
      however,
      that the Borrower shall have no cure rights if the condition, event or
      occurrence giving rise to the default: (a) is described in any of clauses (D),
      (E), (F), (G), (H), (I), (J) or (L) of the section above captioned Events of
      Default; or (b) constitutes a breach of any covenant in any of the Related
      Documents prohibiting the sale or transfer of (i) any property of any loan
      party
      or (ii) any collateral; or (c) during the twelve (12) month period immediately
      preceding the occurrence of the default either (A) the same default has occurred
      or (B) three (3) or more other defaults of any nature have occurred.
      Notwithstanding the existence of any cure period, the Bank shall have no
      obligation to extend credit governed by this agreement, whether by advance,
      disbursement of a loan or otherwise after the occurrence of any default or
      event
      which with the giving of notice or the passage of time or both could become
      a
      default or during any cure period. The inclusion of any cure period in this
      agreement shall have no bearing on the due dates for payments under any of
      the
      Related Documents, whether for purposes of calculating late payment charges
      or
      otherwise.

    

    8. Miscellaneous.

     

    
      	 	
              8.1

            	
              Notice.
                Any notices and demands under or related to this document shall be
                in
                writing and delivered to the intended party at its address stated
                in this
                agreement, and if to the Bank, at its main office if no other address
                of
                the Bank is specified in this agreement, by one of the following
                means:
                (I) by hand, (2) by a nationally recognized overnight courier service,
                or
                (3) by certified mail, postage prepaid, with return receipt requested.
                Notice shall be deemed given: (1) upon receipt if delivered by hand,
                (2)
                on the Delivery Day after the day of deposit with a nationally recognized
                courier service, or (3) on the third Delivery Day after the notice
                is
                deposited in the mail. “Delivery
                Day”
                means a day other than a Saturday, a Sunday or any other day on which
                national banking associations are authorized to be closed. Any party
                may
                change its address for purposes of the receipt of notices and demands
                by
                giving notice of such change in the manner provided in this
                provision.

            

    

     

    
      	 	
              8.2

            	
              No
                Waiver.
                No delay on the part of the Bank in the exercise of any right or
                remedy
                waives that right or remedy. No single or partial exercise by the
                Bank of
                any right or remedy precludes any other future exercise of it or
                the
                exercise of any other right or remedy. The making of an advance during
                the
                existence of any default or Event of Default or subsequent to the
                occurrence of a default or Event of Default or when all conditions
                precedent have not been met shall not constitute a waiver of the
                default,
                Event of Default or condition precedent. No waiver or indulgence
                by the
                Bank of any default is effective unless it is in writing and signed
                by the
                Bank, nor shall a waiver on one occasion bar or waive that right
                on any
                future occasion.

            

    

     

    
      	 	
              8.3

            	
              Integration.
                This agreement, the Notes, and any agreement related to the Credit
                Facilities embody the entire agreement and understanding of the Borrower
                and the Bank and supersede all prior agreements and understandings
                relating to their subject matter. If any one or more of the obligations
                of
                the Borrower under this agreement or the Notes is invalid, illegal
                or
                unenforceable in any jurisdiction, the validity, legality and
                enforceability of the remaining obligations of the Borrower shall
                not in
                any way be affected or impaired, and the invalidity, illegality or
                unenforceability in one jurisdiction shall not affect the validity,
                legality or enforceability of the obligations of the Borrower under
                this
                agreement or the Notes in any other
                jurisdiction.

            

    

     

    
      	 	
              8.4

            	
              Joint
                and Several Liability.
                Each party executing this agreement as the Borrower is individually,
                jointly and severally liable under this
                agreement.

            

    

     

    
      	 	
              8.5

            	
              Choice
                of Law.
                THIS AGREEMENT SHALL BE DEEMED TO BE EXECUTED AND HAS BEEN DELIVERED
                AND
                ACCEPTED IN DENVER, COLORADO BY SIGNING AND DELIVERING IT THERE.
                ANY
                DISPUTE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH,
                RELATED
                TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
                CONNECTION WITH THIS AGREEMENT, AND WHETHER ARISING IN CONTRACT,
                TORT,
                EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL
                LAWS AND NOT THE CONFLICTS OF LAW PROVISIONS OF THE STATE OF
                COLORADO.

            

    

     

    
      
        
        

      

      
        Page 12
          of
          15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              8.6

            	
              CONSENT
                TO JURISDICTION. THE BANK AND THE BORROWER AGREE THAT ALL DISPUTES
                BETWEEN
                THEM ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO
                THE
                RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT
                OR
                ANY OF THE OTHER RELATED DOCUMENTS, AND WHETHER ARISING IN CONTRACT,
                TORT,
                EQUITY OR OTHERWISE, SHALL BE RESOLVED ONLY BY STATE OR FEDERAL COURTS
                LOCATED IN DENVER COUNTY, COLORADO, BUT THE BANK AND THE BORROWER
                ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD
                BY A
                COURT LOCATED OUTSIDE OF DENVER COUNTY, COLORADO. THE BORROWER WAIVES
                IN
                ALL DISPUTES ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE
                COURT
                CONSIDERING THE DISPUTE.

            

    

     

    
      	 	
              8.7

            	
              Captions.
                Section headings and titles are for convenience of reference only
                and do
                not affect the interpretation of this
                agreement.

            

    

     

    
      	 	
              8.8

            	
              Creditors
                Proceedings.
                In any action or proceeding involving any state corporate law, or
                any
                state, federal or foreign bankruptcy, insolvency, reorganization
                or other
                Legal Requirement affecting the rights of creditors generally, if
                the
                obligations of the Borrower under this agreement would otherwise
                be held
                or determined to be avoidable, invalid or unenforceable on account
                of the
                amount of the Borrower’s liability under this agreement, then,
                notwithstanding any other provision of this agreement to the contrary,
                the
                amount of such liability shall, without any further action by the
                Borrower
                or the Bank, be automatically limited and reduced to the highest
                amount
                that is valid and enforceable as determined in such action or
                proceeding.

            

    

     

    
      	 	
              8.9

            	
              Survival
                of Representations and Warranties.
                The Borrower understands and agrees that in extending the Credit
                Facilities, the Bank is relying on all representations, warranties,
                and
                covenants made by the Borrower and the other Parties in this agreement,
                any other Related Documents or in any certificate or other instrument
                delivered by the Parties. The Borrower further agrees that regardless
                of
                any investigation made by the Bank, all such representations, warranties
                and covenants will survive the making of the Credit Facilities and
                delivery to the Bank of this agreement, shall be continuing in nature,
                and
                shall remain in full force and effect until such time as the Liabilities
                to the Bank shall be paid in fall.

            

    

     

    
      	 	
              8.10

            	
              Non-Liability
                of the Bank.
                The relationship of the Borrower and the Bank created by this agreement
                is
                strictly a debtor and creditor relationship and not fiduciary in
                nature,
                nor is the relationship to be construed as creating any partnership
                or
                joint venture between the Bank and the Borrower. The Borrower is
                exercising the Borrower’s own judgment with respect to its business. All
                information supplied to the Bank is for the Bank’s protection only and no
                other party is entitled to rely on such information. There is no
                duty for
                the Bank to review, inspect, supervise or inform the Borrower of
                any
                matter with respect to its business. The Bank and the Borrower intend
                that
                the Bank may reasonably rely on all information supplied by the Borrower
                or any other Parties to the Bank, together with all representations
                and
                warranties given by the Borrower and the other Parties to the Bank,
                without investigation or confirmation by the Bank and that any
                investigation or failure to investigate will not diminish the Bank’s right
                to so rely.

            

    

     

    
      	 	
              8.11

            	
              Indemnification
                of the Bank.
                The Borrower agrees to indemnify, defend and hold the Bank, its parent
                companies, subsidiaries, affiliates, their respective successors
                and
                assigns and each of their respective shareholders, directors, officers,
                employees and agents (collectively, the “Indemnified
                Persons”)
                harmless from any and against any and all loss, liability, obligation,
                damage, penalty, judgment, claim, deficiency, expense, interest,
                penalties, attorneys’ fees (including the fees and expenses of attorneys
                engaged by the Indemnified Person at the Indemnified Person’s reasonable
                discretion) and amounts paid in settlement (“Claims”)
                to which any Indemnified Person may become subject arising out of
                or
                relating to this agreement or the collateral, except to the limited
                extent
                that the Claims are proximately caused by the Indemnified Person’s gross
                negligence or willful misconduct. The indemnification provided for
                in this
                paragraph shall survive the termination of this agreement and shall
                not be
                affected by the presence, absence or amount of or the payment or
                nonpayment of any claim under, any
                insurance.

            

    

     

    
      
        
        

      

      
        Page
          13 of
          15

        
          

        

      

      
        
        

      

    

     

    
      	 	
              8.12

            	
              Counterparts.
                This agreement may be executed in multiple counterparts, each of
                which,
                when so executed, shall be deemed an original, but all such counterparts,
                taken together, shall constitute one and the same
                agreement.

            

    

     

    
      	 	
              8.13

            	
              Recovery
                of Additional Costs.
                If the imposition of or any change in any Legal Requirement, or the
                interpretation or application of any thereof by any Governmental
                Authority
                (including any request or policy not having the force of law) shall
                impose, modify, or make applicable any taxes (except federal, state,
                or
                local income or franchise taxes imposed on the Bank), reserve
                requirements, capital adequacy requirements, or other obligations
                which
                would (1) increase the cost to the Bank for extending or maintaining
                the
                Credit Facilities; (2) reduce the amounts payable to the Bank under
                the
                Credit Facilities; or (3) reduce the rate of return on the Bank’s capital
                as a consequence of the Bank’s obligations with respect to the Credit
                Facilities, then the Borrower agrees to pay the Bank such additional
                amounts as will compensate the Bank therefor, within five (5) days
                after
                the Bank’s written demand for such payment. The Bank’s demand shall be
                accompanied by an explanation of such imposition or charge and a
                calculation in reasonable detail of the additional amounts payable
                by the
                Borrower which explanation and calculations shall be conclusive in
                the
                absence of manifest error.

            

    

     

    
      	 	
              8.14

            	
              Conflicting
                Terms.
                If this agreement is inconsistent with any provision in any Related
                Documents, the Bank shall determine which of the provisions shall
                control
                any such inconsistency.

            

    

     

    
      	 	
              8.15

            	
              Expenses.
                The Borrower agrees to pay or reimburse the Bank for all its out-of-pocket
                costs and expenses and reasonable attorneys’ fees incurred in connection
                with the preparation and execution of this agreement, any amendment,
                supplement, or modification thereto, and any other documents prepared
                in
                connection herewith or therewith.

            

    

     

    
      	 	
              8.16

            	
              Reinstatement.
                The Borrower agrees that to the extent any payment or transfer is
                received
                by the Bank in connection with the Liabilities, and all or any part
                of the
                payment or transfer is subsequently invalidated, declared to be fraudulent
                or preferential, set aside or required to be repaid or transferred
                by the
                Bank or paid or transferred over to a trustee, receiver or any other
                entity, whether under any proceeding or otherwise (any of those payments
                or transfers is hereinafter referred to as a “Preferential
                Payment”),
                then this agreement and the Credit Facilities shall continue to be
                effective or shall be reinstated, as the case may be, even if all
                those
                Liabilities have been paid in full and whether or not the Bank is
                in
                possession of the Notes and whether any of the Notes has been marked,
                paid, released or cancelled, or returned to the Borrower and, to
                the
                extent of the payment, repayment or other transfer by the Bank, the
                Liabilities or part intended to be satisfied by the Preferential
                Payment
                shall be revived and continued in full force and effect as if the
                Preferential Payment had not been made. The obligations of the Borrower
                under this section shall survive the termination of this
                agreement.

            

    

     

    
      	 	
              8.17

            	
              Severability.
                If any provision of this agreement cannot be enforced, the remaining
                portions of this agreement shall continue in
                effect.

            

    

     

    
      	 	
              8.18

            	
              Assignments.
                The Borrower agrees that the Bank may provide any information or
                knowledge
                the Bank may have about the Borrower or about any matter relating
                to the
                Notes or the Related Documents to JPMorgan Chase & Co., or any of its
                subsidiaries or affiliates or their successors, or to any one or
                more
                purchasers or potential purchasers of the Notes or the Related Documents.
                The Borrower agrees that the Bank may at any time sell, assign or
                transfer
                one or more interests or participations in all or any part of its
                rights
                and obligations in the Notes to one or more purchasers whether or
                not
                related to the Bank.

            

    

     

    
      	 	
              8.19

            	
              Waivers.
                All Obligors jointly and severally waive notice, demand, presentment
                for
                payment, notice of nonpayment, notice of acceleration, protest, notice
                of
                protest, and the filing of suit and diligence in collecting the Notes
                and
                all other demands and notices, and consents and agrees that the Obligor’s
                liabilities and obligations shall not be released or discharged by
                any or
                all of the following, whether with or without notice to the Obligor
                or any
                other Obligor, and whether before or after the maturity of the Notes:
                (1)
                extensions of the time of payment; (2) renewals; (3) acceptances
                of
                partial payments; and (4) releases or substitutions of any collateral
                or
                any Obligor. The Bank may waive or delay enforcing any of its rights
                without losing them. Each Obligor agrees that acceptance of any partial
                payment shall not constitute a waiver and that waiver of any default
                shall
                not constitute waiver of any prior or subsequent default. Any waiver
                affects only the specific terms and time period stated in the waiver.
                No
                modification or waiver of this Agreement is effective unless it is
                in
                writing and signed by the party against whom it is being enforced.
                Nothing
                in this agreement is intended to waive or vary the duties of the
                Bank or
                the rights of the Borrower in violation of any provision of the Uniform
                Commercial Code as adopted in the State of Colorado, as amended from
                time
                to time, that would prohibit the waiver or variation of those duties
                and
                rights by agreement of the parties.

            

    

     

    
      
        
        

      

      
        Page 14
          of
          15

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              USA
                PATRIOT ACT NOTIFICATION. The
                following notification is provided to the Borrower pursuant to Section
                326
                of the USA Patriot Act of 2001, 31 U.S.C. Section
                5318:

            

    

     

    IMPORTANT
      INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government
      fight the funding of terrorism and money laundering activities, Federal law
      requires all financial institutions to obtain, verify, and record information
      that identifies each person or entity that opens an account, including any
      deposit account, treasury management account, loan, other extension of credit,
      or other financial services product. What this means for the Borrower: When
      it
      opens an account, if it is an individual, the Bank will ask for its name,
      taxpayer identification number, residential address, date of birth, and other
      information that will allow the Bank to identify it, and, if it is not an
      individual, the Bank will ask for its name, taxpayer identification number,
      business address, and other information that will allow the Bank to identify
      it.
      The Bank may also ask, if it is an individual, to see its driver’s license or
      other identifying documents, and, if it is not an individual, to see its
      Organizational Documents or other identifying documents.

    

    
      	
              10.

            	
              WAIVER
                OF SPECIAL DAMAGES. THE
                BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY
                RIGHT
                THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK IN ANY
                LEGAL
                ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
                DAMAGES.

            

    

     

    
      	
              11.

            	
              JURY
                WAIVER.
                THE BORROWER AND THE BANK VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND
                UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING
                ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN
                THE
                BORROWER AND THE BANK ARISING OUT OF OR IN ANY WAY RELATED TO THIS
                AGREEMENT AND THE RELATED DOCUMENTS. THIS PROVISION IS A MATERIAL
                INDUCEMENT TO THE BANK TO PROVIDE THE CREDIT
                FACILITIES.

            

    

     

    
      	
              Address
                for Notices:

            	
              BORROWER:
                UNITED WESTERN BANCORP, INC.

            
	
              700
                17th
                Street, Suite 2100

              Denver,
                Colorado 80202

              Attn:
                Jeff Leventhal

            	
              By:
                /s/
                William D. Snider

              Name:
                William D. Snider

              Title:
                CFO

            
	 	 
	 	 
	 	 
	
              Address
                for Notices:

            	
              BANK:
                JPMORGAN CHASE BANK, N.A.

            
	
              120
                S LaSalle St., 3rd
                Floor, IL1-1110

              Chicago,
                IL 60603-3402

              Attn:
                Division Manager of Financial Institutions Group

            	
              By:
                /s/
                Matthew Roan

              Name:
                Matthew Roan

              Title:
                Vice President

            
	 	 

    

    

    

    
      
        
        

      

      
        Page
          15 of
          152007
      STOCK INCENTIVE PLAN

    

    
      	1.	
              THE
                PLAN

            

    

    

    

    a)
      Purpose.
       This
      MIT
      Holding, Inc. 2007 Stock Incentive Plan (the "Plan") is intended to benefit
      the
      stockholders of MIT Holding, Inc. (the "Company") by providing a means to
      attract, retain and reward individuals who can and do contribute to the
      longer-term financial success of the Company. Further, the recipients of
      stock-based awards under the Plan should identify their success with that of
      the
      company's shareholders and therefore will be encouraged to increase their
      proprietary interest in the Company.

    

    b)
      Effective
      Date.
       To
      serve
      this purpose, the Plan will become effective upon its approval by the
      affirmative vote of a majority of the Company’s directors provided the Plan is
      approved by the affirmative vote of a majority of the Company’s outstanding
      shares of voting securities within twelve (12) months after such approval by
      the
      Board of Directors (the “Board”).

    

    
      	2.	
              ADMINISTRATION

            

    

    

    a)
      Committee. The
      Plan
      shall be administered by a Committee, appointed by the Board which shall consist
      of no less than two of its members, all of whom shall not be employees of the
      Company (the "Committee") or by the Board; provided, however, that from time
      to
      time the Board may assume, at its sole discretion, administration of the Plan.
      Except with regard to awards to employees subject to Section 16 of the
      Securities Exchange Act of 1934, the Committee may delegate certain
      responsibilities and powers to any executive officer or officers selected by
      it.
      Any such delegation may be revoked by the Committee at any time.

    

    b)
      Powers
      and Authority. The
      Committee's powers and authority include, but are not limited to: selecting
      individuals, who are either employees of the Company and any subsidiary of
      the
      Company or other entity in which the Company has a significant equity or other
      interest as determined by the Committee, non-employee members of the Board
      or
      independent consultants or other persons who perform services for or on behalf
      of the Company, to receive awards (“Awards”); determining the types and terms
      and conditions of all Awards granted, including performance and other earn
      out
      and/or vesting contingencies; permitting transferability of Awards to eligible
      third parties; interpreting the Plan’s provisions; and administering the Plan in
      a manner that is consistent with its purpose. The Committee's decision in
      carrying out the Plan and its interpretation and construction of any provisions
      of the Plan or any award granted or agreement or other instrument executed
      under
      it shall be final and binding upon all persons. No members of the Board shall
      be
      liable for any action or determination made in good faith in administering
      the
      Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    c)
      Award
      Prices. All
      Awards denominated or made in shares of common stock shares shall use as the
      per
      Share price as the fair market value as established by the Board in good faith.
      In the case of an Incentive Stock Award, in accordance with Section 422 of
      the
      Internal Revenue Code (the “Code”), the fair market value (the “Fair Market
      Value”) means the average of the high and low sales prices of the Shares on such
      date on the principal securities exchange on which such Shares are listed,
      or if
      such Shares are not so listed or admitted to trading, the arithmetic mean of
      the
      per Share closing bid price and closing asked price per Share on such date
      as
      quoted on the quotation system of the Nasdaq Stock Market, Inc. or such other
      market in which such prices are regularly quoted.

    

    
      	3.	
              SHARES
                SUBJECT TO THE PLAN AND
                ADJUSTMENTS

            

    

    

    a)
      Maximum
      Shares Available for Delivery.
      Subject
      to adjustments under Section 3(c), the maximum number of Shares that may be
      delivered to participants and their beneficiaries under the Plan shall be
      5,000,000. In addition, any Shares delivered under the Plan or any prior plan
      of
      the Company which are forfeited back to the Company because of the failure
      to
      meet an award contingency or condition shall again be available for delivery
      pursuant to new Awards granted under the Plan. Any Shares covered by an award
      (or portion of an award) granted under the Plan which is forfeited or canceled,
      expires or is settled in cash, including the settlement of tax withholding
      obligations using Shares, shall be deemed not to have been delivered for
      purposes of determining the maximum number of Shares available for delivery
      under the Plan. Likewise, if any stock option is exercised by tendering Shares,
      either actually or by attestation, to the Company as full or partial payment
      for
      such exercise under this Plan or any prior plan of the Company, only the number
      of Shares issued net of the Shares tendered shall be deemed delivered for
      purposes of determining the maximum number of Shares available for delivery
      under the Plan. Further, Shares issued under the Plan through the settlement,
      assumption or substitution of outstanding Awards or obligations to grant future
      Awards as a condition of the Company acquiring another entity shall not reduce
      the maximum number of Shares available for delivery under the Plan. In addition,
      shares available for delivery in settlement of Awards under the Plan may be
      increased by the Board by the number of shares purchased or acquired by the
      Company using amounts equivalent to the cash proceeds received by the company
      from the exercise of stock options, granted under any plan of the Company.
      

    

    b)
      Payment
      Shares. Subject
      to the overall limitation on the number of Shares that may be
      delivered under the Plan, the Committee may, in addition to granting awards
      under Section 4, use available Shares as the form of payment for compensation,
      grants or rights earned or due under any other compensation plans or
      arrangements of the Company, including those of any entity acquired by the
      Company.

    

    c)
      Adjustments
      for Corporate Transactions.
      

    

    (i) The
      Committee may determine that a corporate transaction has affected the price
      per
      Share such that an adjustment or adjustments to outstanding Awards are required
      to preserve (or prevent enlargement of) the benefits or potential benefits
      intended at time of grant. For this purpose a corporate transaction will
      include, but is not limited to, any stock dividend, stock split, extraordinary
      cash dividend, recapitalization, reorganization, merger, consolidation,
      split-up, spin-off, combination or exchange of shares, or other similar
      occurrence. In the event of such a corporate transaction, the Committee shall,
      in such manner as the Committee deems equitable, adjust (i) the number and
      kind
      of shares which may be delivered under the Plan pursuant to Section 3(a) and
      3(b); (ii) the number and kind of shares subject to outstanding Awards; and
      (iii) the exercise price of outstanding stock options and stock appreciation
      rights

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ii) In
      the
      event that the Company is not the surviving company of a merger, consolidation
      or amalgamation with another company, or in the event of a liquidation or
      reorganization of the Company, and in the absence of the surviving corporation's
      assumption of outstanding Awards made under the Plan, the Committee may provide
      for appropriate adjustments and/or settlements of such grants either at the
      time
      of grant or at a subsequent date. The Committee may also provide for adjustments
      and/or settlements of outstanding Awards as it deems appropriate and consistent
      with the Plan's purpose in the event of any other change-in-control of the
      Company.

    

    
      	4.	
              ELIGIBILITY

            

    

    

    a) Eligible
      Persons. All
      employees of the Company and its subsidiaries (“Employees”),
      including Employees who are officers or members of the Board, and members of
      the
      Board who are not Employees (“Non-Employee Directors”) shall be eligible to
      participate in the Plan. Consultants and advisors who perform services for
      the
      Company or any of its subsidiaries (“Key Advisors”) shall be eligible to
      participate in the Plan if the Key Advisors render bona fide services to the
      Company or its subsidiaries, the services are not in connection with the offer
      and sale of securities in a capital-raising transaction, and the Key Advisors
      do
      not directly or indirectly promote or maintain a market for the Company’s
      securities.

    

    b) Selection
      of Eligible Individuals.
      The
      Committee shall select the Employees, Non-Employee Directors and Key Advisors
      (collectively referred to as “Eligible Individuals”) to receive grants and shall
      determine the number of shares of Company Stock subject to a particular grant
      in
      such manner as the Committee determines. Incentive Stock Awards (as defined
      in
      Section 5(b)(i)) may not be granted to Non-Employee Directors.

    

    
      	5.	
              TYPES
                OF AWARDS

            

    

    

    a)
      General.
      An
      award may be granted singularly, in combination with another award(s) or in
      tandem whereby exercise or vesting of one award held by a participant cancels
      another award held by the participant. Subject to the limitations of Section
      2(c), an award may be granted as an alternative to or replacement of an existing
      award under the Plan or under any other compensation plans or arrangements
      of
      the Company, including the plan of any entity acquired by the Company. The
      types
      of Awards that may be granted under the Plan include:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      (i)
      Stock
      Option.
      A stock
      option represents a right to purchase a specified number of Shares during a
      specified period at a price per Share. A stock option may be in the form of
      an
      incentive stock option or in another form that may or may not qualify for
      favorable federal income tax treatment. The Shares covered by a stock option
      may
      be purchased by means of a cash payment or such other means as the Committee
      may
      from time-to-time permit, including (i) tendering (either actually or by
      attestation) Shares valued using the market price at the time of exercise,
      (ii)
      authorizing a third party to sell Shares (or a sufficient portion thereof)
      acquired upon exercise of a stock option and to remit to the Company a
      sufficient portion of the sale proceeds to pay for all the Shares acquired
      through such exercise and any tax withholding obligations resulting from such
      exercise; (iii) by converting Shares subject to options granted hereunder having
      a value equal to the exercise price of the Options being exercised on such
      terms
      and conditions as the Committee determines; or (iv) any combination of the
      above. 

    

    (ii)
      Stock
      Appreciation Right. A
      stock
      appreciation right is a right to receive a payment in cash, Shares or a
      combination, equal to the excess of the aggregate market price at time of
      exercise of a specified number of Shares over the aggregate exercise price
      of
      the stock appreciation right being exercised. The longest term a stock
      appreciation right may be outstanding shall be ten years. 

    

    (iii)
      Stock
      Award.
      A stock
      award is a grant of Shares or of a right to receive Shares (or their cash
      equivalent or a combination of both) in the future. Except in cases of certain
      terminations of employment or an extraordinary event, each stock award shall
      be
      earned and vest over at least three years and shall be governed by such
      conditions, restrictions and contingencies as the Committee shall determine.
      These may include continuous service and/or the achievement of performance
      goals. The performance goals that may be used by the Committee for such Awards
      shall consist of: operating profits (including EBITDA), net profits, earnings
      per Share, profit returns and margins, revenues, shareholder return and/or
      value, stock price and working capital. Performance goals may be measured solely
      on a corporate, subsidiary or business unit basis, or a combination thereof.
      Further, performance criteria may reflect absolute entity performance or a
      relative comparison of entity performance to the performance of a peer group
      of
      entities or other external measure of the selected performance criteria. Profit,
      earnings and revenues used for any performance goal measurement shall exclude:
      gains or looses on operating asset sales or dispositions; asset write-downs;
      litigation or claim judgments or settlements; effect of changes in tax law
      or
      rate on deferred tax liabilities; accruals for reorganization and restructuring
      programs; uninsured catastrophic property losses; the cumulative effect of
      changes in accounting principles; and any extraordinary non-recurring items
      as
      described in Accounting Principles Board Opinion No. 30 and/or in management’s
      discussion and analysis of financial performance appearing in the Company’s
      annual report to shareholders for the applicable year.

    

    (iv)
      Cash
      Award.
       A
      cash
      award is a right denominated in cash or cash units to receive
      a
      cash payment, based on the attainment of pre-established performance goals
      and,
      subject to a vesting period and such other conditions, restrictions, and
      contingencies as the Committee shall determine.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    b)
      Purchase
      Price. The
      purchase price or the manner in which the purchase price is to be determined
      for
      Shares under each Award shall be determined by the Committee and set forth
      in
      the Agreement; provided, however, that 

     

    (i) the
      purchase price per Share under each Incentive Stock Award (defined herein as
      an
      Award satisfying the requirements of Section 422 of the Code and designated
      by
      the Committee as an Incentive Stock Award) shall not be less than 100% of the
      Fair Market Value of a Share on the date the Incentive Stock Award is granted
      (110% in the case of an Incentive Stock Award granted to a Ten-Percent
      Stockholder), provided that the exercise price of any stock option or stock
      appreciation right may not be less than 120% of such Fair Market Value; and
       

    

    (ii)
       the
      purchase price per Share under each Nonqualified Stock Award may be less than
      the Fair Market Value of a Share on the date the Nonqualified Stock Award is
      granted, provided that the exercise price of any stock option or stock
      appreciation right may not be less than 120% of such Fair Market Value.

    

    c)
      Maximum
      Duration. Awards
      granted hereunder shall be for such term as the Committee shall determine,
      provided that an Incentive Stock Award granted hereunder shall not be
      exercisable after the expiration of ten (10) years from the date it is granted
      (five (5) years in the case of an Incentive Stock Award granted to a Ten-Percent
      Stockholder), and a Nonqualified Stock Award shall not be exercisable after
      the
      expiration of ten (10) years from the date it is granted. The Committee may,
      subsequent to the granting of any Award, extend the term thereof but in no
      event
      shall the term as so extended exceed the maximum term provided for in the
      preceding sentence.

    

    
      	6.	
              AWARD
                SETTLEMENTS AND PAYMENTS

            

    

    

    a)
      Dividends
      and Dividend Equivalents.
       An
      award
      may contain the right to receive dividends or dividend equivalent payments
      that
      may be paid either currently or credited to a participant's account. Any such
      crediting of dividends or dividend equivalents or reinvestment in Shares may
      be
      subject to such conditions, restrictions and contingencies as the Committee
      shall establish, including the reinvestment of such credited amounts in Share
      equivalents.

    

    b)
      Payments. Awards
      may be settled through cash payments, the delivery of Shares, the delivery
      of
      Awards in accordance with cashless exercise provisions, the granting of Awards
      or combination thereof as the Committee shall determine. Any award settlement,
      including payment deferrals, may be subject to such conditions, restrictions
      and
      contingencies as the Committee shall determine. The Committee may permit or
      require the deferral of any award payment, subject to such rules and procedures
      as it may establish, which may include provisions for the payment or crediting
      of interest, or dividend equivalents, including converting such credits into
      deferred Share equivalents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	7.	
              PERFORMANCE
                SHARES 

            

    

    

    The
      Committee is authorized to grant Performance Shares to Eligible Individuals
      on
      the following terms and conditions:

    

    a)
      Performance
      Period. The
      Committee shall determine a performance period (the “Performance
      Period”) of one or more years and shall determine the performance objectives for
      grants of Shares (“Performance Shares”). Performance objectives may vary from
      Eligible Individual to Eligible Individual and shall be based upon such
      performance criteria as the Committee may deem appropriate. Performance periods
      may overlap and Eligible Individuals may participate simultaneously with respect
      to Performance Shares for which different Performance Periods are
      prescribed.

    

    b)
      Award
      Value.
      At the
      beginning of a Performance period, the Committee shall determine for each
      Eligible Individual or group of Eligible Individuals with respect to that
      Performance Period the range of number of Shares, if any, in the case of
      Performance Shares which may be fixed or may vary in accordance with such
      performance or other criteria specified by the Committee, which shall be paid
      to
      an Eligible Individual as an Award if the relevant measure of Company
      performance for the Performance Period is met.

    

    c)
      Significant
      Events.
       If
      during
      the course of a Performance Period there shall occur
      significant events as determined by the Committee which the Committee expects
      to
      have a substantial effect on a performance objective during such period, the
      Committee may revise such objectives; provided,
      however,
      that,
      if an Award Agreement so provides, the Committee shall not have any discretion
      to increase the amount of compensation payable under the Award to the extent
      such an increase would cause the Award to lose its qualification as
      performance-based compensation for purposes of Section 162m(4)(C) of the Code
      and the regulations thereunder.

    

    d)
      Forfeiture.
       Except
      as
      otherwise determined by the Committee, at the date of grant
      or
      thereafter, upon termination of employment during the applicable Performance
      Period, Performance Shares for which the Performance Period was prescribed
      shall
      be forfeited; provided,
      however,
      that
      the Committee may provide, by rule or regulation or in any Award Agreement,
      or
      may determine in an individual case, that restrictions or forfeiture conditions
      relating to Performance Shares will be waived in whole or in part in the event
      of terminations resulting from specified causes, and the Committee may in other
      cases waive in whole or in part the forfeiture of Performance
      Shares.

    

    e)
      Payment.
       Each
      Performance Share may be paid in whole Shares, or cash, or a combination
      of Shares and cash either as a lump sum payment or in installments, all as
      the
      Committee shall determine, at the time of grant of the Performance Share or
      otherwise, commencing as soon as practicable after the end of the relevant
      Performance Period.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	
              8.

            	
              TERMS
                AND CONDITIONS APPLICABLE TO ALL
                AWARDS

            

    

    

    a)
      Duration. 
      Each
      Award shall terminate on the date which is the tenth anniversary of the grant
      date, unless terminated earlier as follows:

    

    (i) If
      the
      employment or services of an Eligible Individual terminates for any reason
      other
      than disability (as defined by the Committee), death or cause, the Eligible
      Individual may, for a period of three (3) months after such termination,
      exercise his or her Award to the extent, and only to the extent, such Award
      or
      portion thereof was vested and exercisable as of the date of the Eligible
      Individual’s employment or service terminated, after which time the Award shall
      automatically terminate in full.  

    

    (ii) If
      an
      Eligible Individual’s employment or service terminates by reason of the Eligible
      Individual’s disability, the Eligible Individual may exercise his or her Award
      for up to twelve (12) months after the date of termination to the extent, and
      only to the extent, such Award or portion thereof was vested and exercisable
      as
      of the date the Eligible Individual’s employment or service terminated, after
      which time the Award shall automatically terminate in full.

    

    (iii) If
      an
      Eligible Individual’s employment or service terminates for Cause, the Award
      granted to the Eligible Individual hereunder shall immediately terminate in
      full
      and no rights thereunder may be exercised.

    

    (iv) If
      an
      Eligible Individual dies while employed or in the service of the Company or
      an
      Affiliate or within the three (3) month or twelve (12) month period described
      in
      clause (i) or (ii), respectively, of this Section 8 the Award granted to the
      Eligible Individual may be exercised at any time within twelve (12) months
      after
      the Eligible Individual’s death by the person or persons to whom such rights
      under the Award shall pass by will, or by the laws of descent and distribution,
      after which time the Award shall terminate in full; provided, however, that
      an
      Award may be exercised to the extent, and only to the extent, such Award or
      portion thereof was exercisable on the date of death or earlier termination
      of
      the Eligible Individual’s services as a Director, employee, consultant or
      otherwise.

    

    (v)
       Upon
      retirement of an Eligible Individual, Stock Award privileges shall apply to
      those Shares immediately exercisable at the date of retirement. The Committee,
      however, in its discretion, may provide that any Stock Awards outstanding but
      not yet exercisable may be exercised in accordance with a schedule to be
      determined by the Committee. Stock Award privileges shall expire unless
      exercised within such period of time as may be established by the Committee,
      but
      in no event later than the expiration date of the Stock Award.

    

    Notwithstanding
      clauses (ii) through (v) above, the agreement evidencing the grant of an
      Incentive Stock Award or clauses (i) through (v) with respect to Nonqualified
      Stock Awards (“Award Agreement”) may, in the Committee’s sole and absolute
      discretion, set forth additional or different terms and conditions applicable
      to
      Awards upon a termination or change in status of the employment or service
      of an
      Eligible Individual. Such terms and conditions may be determined at the time
      the
      employee Award is granted or thereafter.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    b)
      Non-transferability.
       No
      Award
      (except for vested Shares) granted hereunder shall
      be
      transferable by the Eligible Individual to whom granted except by will or the
      laws of descent and distribution, and an Award may be exercised during the
      lifetime of such Eligible Individual only by the Eligible Individual or his
      or
      her guardian or legal representative. The terms of such Award shall be final,
      binding and conclusive upon the beneficiaries, executors, administrators, heirs
      and successors of the Eligible Individual.

     

    c)
      Method
      of Exercise.
       The
      exercise of an Award shall be made only by a written notice
      delivered in person or by mail to the Secretary or Chief Financial Officer
      of
      the Company at the Company’s principal executive office, specifying the number
      of Shares to be purchased and accompanied by payment therefor and otherwise
      in
      accordance with the Award Agreement pursuant to which the Award was granted.
      The
      purchase price for any Shares purchased pursuant to the exercise of an Award
      shall be paid in accordance with Section 8(e). The Eligible Individual shall
      deliver the Award Agreement evidencing the Award to the Secretary or Chief
      Financial Officer of the Company who shall endorse thereon a notation of such
      exercise and return such Agreement to the Eligible Individual. No fractional
      Shares (or cash in lieu thereof) shall be issued upon exercise of an Award
      and
      the number of Shares that may be purchased upon exercise shall be rounded to
      the
      nearest number of whole Shares. 

    

    d)
      Rights
      of Eligible Individuals.
      No
      Eligible Individual shall be deemed for any purpose to be the owner of any
      Shares subject to any Award unless and until (I) the Award shall have been
      exercised pursuant to the terms thereof, (ii) the Company shall have issued
      and
      delivered the Shares to the Eligible Individual and (iii) the Eligible
      Individual’s name shall have been entered as a stockholder of record on the
      books of the Company. Thereupon, the Eligible Individual shall have full voting,
      dividend and other ownership rights with respect to such Shares, subject to
      such
      terms and conditions as may be set forth in the applicable agreement evidencing
      such Award.

    

    e)
      Effect
      of Change in Control.
      In the
      event of a Change in Control, (as defined in Section 8(e), then the amount
      of
      shares that will vest in an Eligible Person or Eligible Individual shall
      be
      determined by the Committee. In the event an Eligible Person’s or Eligible
      Individual’s employment
      or service with the Company is terminated by the Company following a Change
      in
      Control, each Award held by the Eligible Person or Eligible Individual that
      was
      exercisable as of the date of termination of Eligible Person’s or Eligible
      Individual’s employment or service shall remain exercisable for a period ending
      not before the earlier of the first anniversary of the termination of the
      Eligible Person’s or Eligible Individual’s employment or service or the
      expiration of the stated term of the Award.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
      the
      purposes of the Agreement, “Change of Control” shall mean the occurrence of any
      of the following: (i) any “person” as defined in Sections 13(d) and 14(d) of the
      Exchange Act other
      than the persons or the group of persons in control of the Company on the date
      hereof is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
      Exchange Act), directly or indirectly, of securities of the Company representing
      fifty percent (50%) or more of the combined voting power of the Corporation’s
      then outstanding securities; (ii) within any period of two consecutive years)
      not including any period prior to the effective date of this Plan) there shall
      cease to be a majority of the Board comprised as follows: individuals who at
      the
      beginning of such period constitute the Board any new director(s) whose election
      was approved by a vote of at least two-thirds (2/3) of the directors then still
      in office who either were directors at the beginning of the period or whose
      election or nomination for election was previously so approved; (iii) the
      shareholders of the Company approve a merger of, or consolidation involving,
      the
      Company in which (A) the Company’s Common Stock, with no par value per share
      (such stock, or any other securities of the Company into which such stock shall
      have been converted through a reincorporation, recapitalization or similar
      transaction hereinafter called “Common Stock of the Company”), is converted into
      shares or securities of another corporation or into cash or other property,
      or
      (B) the Common Stock of the Company is not converted as described in Clause
      (A),
      but in which more than fifty percent (50%) of the Common Stock of the surviving
      corporation in the merger is owned by shareholders other than those who owned
      such amount prior to the merger; in each case, other than a transaction solely
      for the purpose of reincorporating the Company in another jurisdiction or
      recapitalizing the Common Stock of the Company; or (iv) the shareholders of
      the
      Company approve a plan or complete liquidation of the Company, or an agreement
      for the sale or disposition by the Company of all or substantially all of the
      Company’s assets, either of which is followed by a distribution of all or
      substantially all of the proceeds to the shareholders.  

    

    f)
      Limits
      on Incentive Stock Awards.
       Except
      as
      may otherwise be permitted by the Code,
      the
      Committee shall not grant to an Eligible Individual Incentive Stock Awards,
      that, in the aggregate, are first exercisable during any one calendar year
      to
      the extent that the aggregate fair market value of the Common Stock, at the
      time
      the Incentive Stock Awards are granted, exceeds $100,000.

    

    g)
      Form
      of Payment Under Awards.
       Subject
      to the terms of the Plan and any applicable
      Award Agreement, payments to be made by the Company or a Subsidiary or Affiliate
      upon the grant, maturation, or exercise of an Award may be made in such forms
      as
      the Committee shall determine at the date of grant or thereafter, including,
      without limitation, cash, Shares, or other property, and may be made in a single
      payment or transfer, in installments, or on a deferred basis. The Committee
      may
      make rules relating to installment or deferred payments with respect to Awards,
      including the rate of interest to be credited with respect to such payments.
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	9.	
              PLAN
                AMENDMENT AND TERMINATION

            

    

    

    a)
      Amendments.
       The
      Board
      may amend this Plan as it deems necessary and appropriate to better achieve
      the
      Plan's purpose provided, however, that: (I)the Share and other Award limitations
      set forth in Sections 3(a) and 3(b) cannot be increased and (ii) the minimum
      stock option and stock appreciation right exercise prices set forth in Sections
      2© and 5(b) and (c) cannot be changed unless such a plan amendment is properly
      approved by the Company's stockholders.

    

    b)
      Plan
      Suspension and Termination.
      The
      Board may suspend or terminate this Plan at any time. Any such suspension or
      termination shall not of itself impair any outstanding award granted under
      the
      Plan or the applicable participant's rights regarding such award.

    

    
      	10.	
              MISCELLANEOUS

            

    

    

    a)
      No
      Individual Rights.
       No
      person
      shall have any claim or right to be granted an award under the Plan. Neither
      the
      Plan nor any action taken hereunder shall be construed as giving any employee
      or
      other person any right to continue to be employed by or to perform services
      for
      the Company, any subsidiary or related entity. The right to terminate the
      employment of or performance of services by any Plan participant at any time
      and
      for any reason is specifically reserved tithe employing entity.

    

    b)
      Unfunded
      Plan.
       The
      Plan
      shall be unfunded and shall not create (or be construed to create) a trust
      or a
      separate fund or funds. The Plan shall not establish any fiduciary relationship
      between the Company and any participant or beneficiary of a participant. To
      the
      extent any person holds any obligation of the Company by virtue of an award
      granted under the Plan, such obligation shall merely constitute a general
      unsecured liability of the Company and accordingly shall not confer upon such
      person any right, title or interest in any assets of the Company.

    

    c)
      Other
      Benefit and Compensation Programs.
       Unless
      otherwise specifically determined by the Committee, settlements of Awards
      received by participants under the Plan shall not be deemed a part of a
      participant's regular, recurring compensation for purposes of calculating
      payments or benefits from any Company benefit plan or severance program.
      Further, the Company may adopt other compensation programs, plans or
      arrangements as it deems appropriate.

    

    d)
      No
      Fractional Shares.
      No
      fractional Shares shall be issued or delivered pursuant to the Plan or any
      Award, and the Committee shall determine whether cash shall be paid or
      transferred in lieu of any fractional Shares, or whether such fractional Shares
      or any rights thereto shall be canceled.

    

    e)
      Governing
      Law.
      The
      validity, construction and effect of the Plan and any Award, agreement or other
      instrument issued under it shall be determined in accordance with the laws
      of
      the state of Delaware without reference to principles of conflict of law.

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