Document:

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Exhibit 10.22

                                  $104,000,000

                       TERM AND REVOLVING CREDIT AGREEMENT

                                     BETWEEN

                         COMMERCIAL FEDERAL CORPORATION

                                       AND

                          FIRST NATIONAL BANK OF OMAHA

                                DECEMBER 30, 2002

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                       TERM AND REVOLVING CREDIT AGREEMENT

         This Term and Revolving Credit Agreement (the "Agreement") is made as
of the 30th day of December, 2002, between Commercial Federal Corporation, a
Nebraska corporation and federal savings and loan association holding company
having its principal place of business in Omaha, Nebraska (the "Borrower") and
First National Bank of Omaha, a national banking association having its
principal offices in Omaha, Nebraska, (the "Bank").

         The Borrower has requested the Bank make available to it revolving
credit loans and a term loan for the purposes set forth herein.

         To induce the Bank to make such loans, the Borrower proposes to enter
into this Agreement pursuant to which the loans will be made available to the
borrower who will derive benefit, directly or indirectly, from the credit so
extended to the Borrower.

         Accordingly, the parties hereto agree as follows:

                                 I. DEFINITIONS

         1.1 Certain Defined Terms. As used herein, the following terms shall
have the following meanings (and all terms defined in this section 1.1 or in
other provisions of this Agreement in the singular to have the same meanings
when used in the plural and vise versa):

Advance:      Any advance of credit to the Borrower from the Bank pursuant to
              Article III of this Agreement.

Affiliate:    As to any Person (as hereinafter defined), any "affiliate" shall
              mean, with respect to the Borrower, any Person that directly or
              indirectly controls, or is under, control with, or is controlled
              by, the Borrower. As used in this definition, "control" including,
              with its correlated meetings, "controlled by" and "under common
              control" shall mean possession, directly or indirectly, a power to
              direct or cause the direction of management or policies (whether
              through ownership of securities or partnership or other ownership
              interest, by contract or otherwise), provided that, in any event,
              any Person that owns directly or indirectly securities having 10%
              or more of a voting power for the election of directors or other
              governing body of a corporation or 10% or more in the partnership
              or other ownership interest of any other Person (other than as a
              limited partner of such other Person) will be deemed to control
              such corporation or other Person.

Bank:         First National Bank of Omaha, a national banking association
              having its principal place of business at 1620 Dodge Street, Stop
              1196, Omaha, Nebraska 68197, its successors and assigns.

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Borrower:     Commercial Federal Corporation, a Nebraska corporation and federal
              savings and loan association holding company having its principal
              place of business at 13220 California Street, Omaha, Nebraska
              68154, its successors and assigns.

Business Day: Any day, other than a Saturday, Sunday or a legal holiday, on
              which commercial banks are not authorized or required to close in
              Omaha, Nebraska.

Change of     (a) At any time when any of the equity securities of the Borrower
Control:      shall be registered under Section 12 of the Securities Exchange
              Act of 1934, as amended from time to time (the "Exchange Act"), to
              (i) any person, entity or "group" (within the meaning of Section
              13(d)(3) of the Exchange Act) (other than any person which is a
              management employee, or any such "group" which consists entirely
              of management employees, of the Borrower) being or becoming the
              beneficial owner, directly or indirectly, of more than 25% or the
              voting stock of the Borrower, or (ii) a majority of the members of
              the Borrower's board of directors (the "Board") consisting of
              persons other than Continuing Directors (as hereinafter defined).
              As used herein, the term "Continuing Director" means any member of
              the Board on December 30, 2002 and any other member of the Board
              who shall be recommended or elected to succeed a Continuing
              Director by a majority of the Continuing Directors who are then
              members of the Board.

Classified    At any particular time, all loans of the Borrower and its
Loans:        Subsidiaries (as hereinafter defined) on a consolidated basis
              classified as "Loss," "Doubtful", or "Substandard" or in any
              equivalent category by any regulators of such Person (as
              hereinafter defined), as reported by such Person to any such
              regulators, pursuant to any internal review of such Person, or
              pursuant to any inspection and review by the Bank.

Closing Date: December 30, 2002.

Commercial    Commercial Federal Bank, a federal savings bank, having its
Federal:      principal place of business at 13220 California Street, Omaha,
              Nebraska 68154, its successors and assigns.

Commercial    Any time at which Borrower owns less than 100% of the issued
Federal       and outstanding voting stock of Commercial Federal. For purposes
Change of     of this definition, warrants for voting stock of Commercial
Control:      Federal will be deemed to be issued and outstanding voting stock.

Consolidated  With respect to the Borrower for any period, the sum (without
Interest      duplication) of the following (in each case, eliminating all
Expense:      offsetting debits and credits between the Borrower and its
              Subsidiaries (as hereinafter defined) and all other items to be
              eliminated in the course of preparing consolidated financial
              statements of the Borrower and its Subsidiaries in accordance with
              GAAP (as

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              hereinafter defined)): (i) all interest in respect of Indebtedness
              (as hereinafter defined) of the Borrower and its Subsidiaries
              (including imputed interest on capital leases) deducted in
              determining consolidated net income (or loss) of the Borrower and
              its Subsidiaries for such period as determined in accordance with
              GAAP (as hereinafter defined), after eliminating all offsetting
              debits and credits between the Borrower and its Subsidiaries and
              all other items required to be eliminated in the course of
              preparation of consolidated financial statements of the Borrower
              and its Subsidiaries in accordance with GAAP, plus (ii) all debt
              discount and expense amortized or required to be amortized in
              determining the consolidated net income (or loss) of the Borrower
              and its Subsidiaries in (i) above.

Consolidated  Stockholders equity of the Borrower and its Subsidiaries on a
Net Worth:    consolidated basis, calculated in accordance with GAAP; plus
              losses not to exceed $15 million on securities designated as
              available for sale.

Credit        Credit documents shall mean, collectively, this agreement, the
Documents:    notes, and all other promissory notes, and other instruments,
              agreements, and other related documentation executed and
              delivered pursuant to or in connection with this Agreement, as
              such instruments, agreements, and other documentation may be
              amended or otherwise modified from time to time.

Credit Party: Credit Party shall mean the Bank, its Primary Participants, and
              any affiliate of the Bank and any successor or assignee thereof.

Default:      An Event of Default or an event that with notice or lapse of time
              or both would become an Event of Default.

Default Rate: The floating interest rate announced from time to time by the Bank
              as its "National Base Rate," plus three and one-half percent
              (3.5%). The National Base Rate is set by the Bank, solely in its
              discretion, to reflect the rates charged by money center banks as
              their reference rates. Rates charged by the Bank may be at, above,
              or below the National Base Rate, as determined by the Bank as to
              each respective customer.

Earnings      For any period, the sum of (i) the consolidated net income (or
Available for loss) of the Borrower for such period as determined in accordance
Fixed         with GAAP, after eliminating all offsetting debits  and credits
Charges:      between the Borrower and its Subsidiaries and all other items
              required to be eliminated in the course of preparation of
              consolidated financial statements of the Borrower and its
              Subsidiaries in accordance with GAAP; (ii) Consolidated Interest
              Expense for such period; (iii) the consolidated amortization
              expense related to goodwill, deferred charges and other intangible
              assets of the Borrower for such period, as determined in
              accordance with GAAP; (iv) all taxes, assessments and other
              governmental fees, charges, claims and levies incurred by the
              Borrower on a

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              consolidated basis for such period, including, without limitation,
              any such amounts based on revenue, income, gross receipts,
              purchases, leases, licenses, sales, use, business, franchises,
              shares, operations, business occupation, capital surplus,
              earnings, distributions, dividends, properties, assets, wages,
              employment or services, and further including, without limitation,
              any penalties or interest thereon; plus (v) all operating lease
              expenses of the Borrower and its Subsidiaries on a consolidated
              basis for such period.

Environmental Environmental Claim shall mean, with respect to any Person, any
Claim:        written notice, claim, demand or other written communication
              (collectively, a "claim") by any Governmental Authority or other
              Person alleging or asserting such Person's liability for costs,
              damages to natural resources or other Property, personal injuries,
              fines or penalties arising out of, based on or resulting from (i)
              the presence or Release of any Hazardous Material at any location,
              or (ii) circumstances forming the basis of any violation, or
              alleged violation, of any Environmental Law.

Environmental Environmental Laws means any and all Federal, state, local and
Laws:         foreign statutes, laws, regulations, ordinances, rules, judgments,
              orders, decrees, permits, concessions, grants, franchises,
              licenses, agreements or governmental restrictions relating to
              pollution and the protection of the environment or the release of
              any materials into the environment, including but not limited to
              those related to hazardous substances or wastes, air emissions and
              discharges to waste or public systems.

ERISA:        The Employee Retirement Income Security Act of 1974, as amended
              from time to time, and the rules and regulations promulgated
              thereunder as from time to time in effect.

Event of      Any of the events set forth in Section 9 of this Agreement.
Default:

Existing      Existing Credit Agreement shall mean the Credit Agreement dated as
Credit        of July 1,1999 among the Borrower and the Bank, as amended and
Agreement:    modified  by  Amendment  No. 1 thereto  dated as of December 31,
              1999, Amendment No. 2 thereto  dated as of September 22, 2000,
              Amendment No. 3 thereto dated as December 20, 2001, and Amendment
              No. 4 January 22, 2002.

Existing      All outstanding Indebtedness of the Borrower to the Bank pursuant
Indebtedness: to this Agreement, plus the Indebtedness shown on Exhibit I to
              this Agreement.

GAAP:         Generally accepted accounting principles as in effect from time to
              time in the United States of America.

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Governmental  Governmental Approval shall mean any permit, license, variation,
Approval:     certification, consent, no-action letter, clearance, exemption or
              other approval granted by a Governmental Authority.

Governmental  Governmental Authority shall mean any nation or government, any
Authority:    central bank of any nation, any state, province, territory or
              other political subdivision thereof and any other agency, body,
              department, bureau, authority or other entity exercising
              executive, legislative, judicial, regulatory, monetary, taxing or
              administrative functions of or pertaining to government.

Guarantee:    Guarantee shall mean a guarantee, an endorsement, a contingent
              agreement to purchase or to furnish funds for the payment or
              maintenance of, or otherwise to be or become contingently liable
              under or with respect to, the Indebtedness, or obligations, net
              worth, working capital or earnings of any Person, or a guarantee
              of the payment of dividends or other distributions upon the stock
              or equity interests of any Person, or an agreement to purchase,
              sell or lease (as lessee or lessor) Property, products, materials,
              supplies or services primarily for the purpose of enabling a
              debtor to make payment of such debtor's obligations or an
              agreement to assure a creditor against loss, and including,
              without limitation, causing a bank or other financial institution
              to issue a letter of credit or other similar instrument for the
              benefit of another Person, but excluding endorsements for
              collection or deposit in the ordinary course of business. The
              terms "Guarantee" and "Guaranteed" used as a verb shall have a
              correlative meaning.

Guaranteed    Guaranteed Obligations shall mean, collectively (but without
Obligations:  duplication):(a) all obligations in respect of the principal of
              and interest on the Loans made by the Bank to, and the Notes held
              by each Bank of, the Borrower and (b) all other Obligations from
              time to time owing to any Credit Party.

Hazardous     Hazardous Material shall mean any hazardous or toxic chemical,
Material:     waste, byproduct, pollutant, contaminant, compound, product or
              substance, including, without limitation, asbestos, urea
              formaldehyde foam insulation , polychlorinated biphenyls and
              petroleum, and any other material, exposure to the manufacture,
              possession, presence, use, generation, storage, transportation,
              treatment, release, disposal, abatement, cleanup, remediation or
              handling of which is prohibited, controlled or regulated by any
              Environmental Law.

Indebtedness: Indebtedness shall mean, for any Person (without duplication): (a)
              obligations created, issued or incurred by such Person for
              borrowed money (whether by loan, the issuance and sale of debt
              securities or the sale of Property to another Person subject to an
              understanding or agreement, contingent or otherwise, to repurchase
              such Property from such Person); (b) obligations of such Person to
              pay the deferred purchase or acquisition price of Property or
              services, other than trade accounts payable (other than for
              borrowed money) arising, and

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              accrued expenses incurred, in the ordinary course of business so
              long as such trade accounts payable are payable within 180 days of
              the date the respective goods are delivered or the respective
              services are rendered; (c) Indebtedness of others secured by a
              Lien on the Property of such Person, whether or not the respective
              indebtedness so secured has been assumed by such Person; (d)
              obligations of such Person in respect of letters of credit,
              bankers acceptances, bonds, guaranties, indemnities or similar
              instruments issued or accepted by banks or other financial
              institutions for account of such Person supporting obligations
              that constitute Indebtedness of any Person; (e) Capital Lease
              Obligations of such Person; (f) Guarantees by such Person of
              Indebtedness of others; (g) all obligations of such Person in
              respect of mandatory redemption or mandatory dividend rights on
              equity interests but excluding dividends payable solely in
              additional equity interests; (h) all obligations of such Person,
              contingent or otherwise, for the payment of money under any
              noncompete, consulting or similar agreement entered into with the
              seller of a Target or any other similar arrangements providing for
              the deferred payment of the purchase price for any acquisition
              permitted hereby or an acquisition consummated prior to the date
              hereof; and (i) all obligations of such Person to pay rent or
              other amounts under any lease of (or other arrangement conveying
              the right to use) real or personal property, or a combination
              thereof, which lease is required or is permitted to be classified
              and accounted for as an operating lease under U.S. GAAP but which
              is intended by the parties thereto for tax, bankruptcy,
              regulatory, commercial law, real estate law and all other purposes
              as a financing arrangement.

Knowledge:    With respect to any Person that is not an individual, actual or
              constructive knowledge by such Person's president, chief executive
              officer, chief operating officer or chief financial officer of
              facts or circumstances giving rise to an Event of Default or
              Potential Event of Default.

Lien:         With respect to any Person, any mortgage, lien, pledge, charge,
              security interest or other encumbrance, or any interest or title
              of any vendor, lessor, lender or other secured party to or any
              obligation of such Person under any conditional sale or other
              title retention agreement or capital lease which would be required
              to be capitalized on a balance sheet in accordance with GAAP, upon
              or with respect to any property or asset or such Person (including
              in the case of stock, stockholder agreements, voting trust
              agreements and all similar arrangements), and any agreement to
              give any such Lien.

Loan Loss     The quarterly report to be provided by Commercial Federal to the
Reserve       Bank pursuant to Sections 5.1(c) and 7.5 hereof, substantially in
Adequacy      the form of Exhibit II to this Agreement wherein
Report:       Commercial Federal provides its internal reserve calculations used
              to support reserves recorded under the Borrower's approved
              policies.

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Loans:        Loan show mean the Term Note and the Revolving Note.

Material:     Material in relation to the business, operations, affairs,
              financial condition, assets or properties of the Borrower and its
              Subsidiaries taken as a whole.

Material      A material adverse effect on (a) the business, operations,
Adverse       affairs, financial condition, assets or properties of the Borrower
Effect:       and its Subsidiaries taken as a whole, or (b) on the ability of
              the Borrower to perform its obligations under this Agreement, the
              Term Notes or the Revolving Notes (as hereinafter defined), or
              (c) on the validity or enforceability of this Agreement, the Term
              Notes or the Revolving Notes.

Material      With respect to either William A. Fitzgerald, Robert J.
Adverse       Hutchinson, or David S. Fisher, (i)the resignation, retirement, or
Management    voluntary or involuntary termination of employment and/or status
Change:       of such Person as an officer and director of the Borrower; (ii)
              any announcement, notice of intent, resolution or similar advance
              notice with respect to the matters referenced in the foregoing
              clause; or (iii) the death, disability or legal incompetence of
              any such Person.

Non-          With respect to the Borrower and its Subsidiaries on a
Performing    consolidated basis, the sum of: (i) Non-Performing Loans
Assets:       hereinafter defined); (ii) each (as ownership interest of the
              Borrower or any of its Subsidiaries in any real property required
              to be disclosed as other real estate owned in such Person's
              reports to any of its regulators; plus (iii) other assets acquired
              through foreclosure or other realization upon collateral or
              rearrangement or satisfaction of Indebtedness.

Non-          With respect to the Borrower and its Subsidiaries on a
Performing    consolidated basis, the sum of: (i) loans which are classified as
Loans:        90 days or more past due but which are still treated as accrual
              loans (regardless of whether such classification is internal or
              as reported to or directed by such Person's regulators); (ii)
              loans classified as non-accrual (regardless of whether such
              classification is internal or as reported to or directed by such
              Person's regulators); plus (iii) loans for which the obligee has
              reduced the agreed interest rate, reduced the principal or
              interest obligation, extended the maturity, applied interest
              payments to reduce principal, capitalized interest, obtained or
              requested additional collateral or otherwise "renegotiated" the
              terms of the obligation based upon the actual or asserted
              inability of the obligor or obligors of such loans to perform
              their obligations pursuant to the agreements with the obligee
              prior to such modification or renegotiation.

Note Rate:    The floating interest rate announced from time to time by the Bank
              as its "National Base Rate" minus one percent (1%). The National
              Base Rate is set by the Bank, solely in its discretion, to reflect
              generally the rates charged by money center banks as their
              reference rates. Rates charged by the Bank may be at, above or
              below the National Base Rate, as determined by the Bank as to

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              each respective customer.

Permitted:    With respect to any Person, any of the following:
Liens
              (a)   pledges or deposits by the Person under workmen's
                    compensation law, social security, unemployment insurance
                    laws or similar legislation, or good faith deposits in
                    connection with bids, tenders, contracts (other than for the
                    payment of Indebtedness by the Person), or leases to which
                    the Person is a party, or deposits of cash or United States
                    of America Government Bonds to secure surety or appeal bonds
                    or performance bonds to which the Person is a party or which
                    are issued for their account or Liens to secure payments of
                    premiums for insurance purchased in the ordinary course of
                    business;

              (b)   Liens imposed by law, such as carriers', warehousemen's,
                    materialmen's, attorney's, miner's, and mechanics' liens, or
                    Liens arising out of judgments or awards against the Person
                    with respect to which the Person at the time shall currently
                    be prosecuting an appeal or proceedings for review in good
                    faith and by proper procedure and with respect to which
                    adequate reserves have been established on the books of the
                    Person to the extent required by GAAP;

              (c)   Liens for taxes, assessments or other governmental charges
                    or levies not yet subject to penalties for nonpayment and
                    Liens for taxes, assessments or other governmental charges
                    or levies, the payment of which is being contested in good
                    faith by appropriate proceedings and with respect to which
                    adequate reserves have been established to the extent
                    required by GAAP;

              (d)   Minor survey exceptions, minor encumbrances, easements or
                    reservations of, or rights of others for, rights of way,
                    highways and railroad crossings, sewers, electric lines,
                    telegraph and telephone lines and other similar purposes, or
                    zoning or other restrictions as to the use of real
                    properties or other Liens incidental to the conduct of the
                    business of the Person or to the ownership of its property
                    which Liens were not incurred in connection with
                    Indebtedness of the Person, and which Liens do not
                    individually or in the aggregate materially detract from the
                    value of said properties or materially impair the operation
                    of the business taken as a whole of the Person;

              (e)   Liens existing on the date hereof and specified on Exhibit
                    4.10 hereto, and any extension, renewal or replacement of
                    any such Lien in respect of the same property subject
                    thereto; provided that the principal amount of Indebtedness
                    associated with such Liens in no event shall exceed the
                    principal amount of such Indebtedness on the date hereof (or
                    if it is

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                    increased, such increase is permitted under Section 7.3
                    hereof) and does not materially adversely affect the title
                    to or does not materially affect the use of the assets
                    encumbered thereby;

              (f)   Purchase money Liens arising after the date hereof and
                    securing payment of the purchase price of fixed assets
                    purchased or constructed after such date; provided, that at
                    the time of such filing, Indebtedness secured by the Lien
                    does not exceed the cost of such property; and the
                    incurrence of Indebtedness secured by such Lien is not
                    prohibited by any other covenant or limitation contained in
                    this Agreement;

              (g)   Other Liens incidental to the conduct of its business or the
                    ownership of its property and assets which were not incurred
                    in connection with the borrowing of money or the obtaining
                    of advances or credit or in contemplation of an acquisition
                    (except as permitted under subparagraph (f) above), and
                    which do not in the aggregate: (i) materially adversely
                    affect the title to, or materially affect the use of, the
                    assets in the operation of the business of the Person, taken
                    as a whole, or (ii) materially detract from the value of
                    such property or assets for the purpose of the business of
                    the Person, taken as a whole;

              (h)   Any Lien: (i) existing on any property of any corporation at
                    the time it becomes a Subsidiary of the Person, or (ii)
                    existing prior to the time of acquisition upon property
                    acquired by the Person or any Subsidiary of it through
                    purchase, merger or consolidation or otherwise, whether or
                    not the obligation secured thereby is assumed by the Person
                    or such Subsidiary, provided that (A) any Lien permitted by
                    this clause (h) shall not encumber any other property
                    (except the proceeds of such property) of the Person or any
                    Subsidiary of it, and (B) the obligation secured by the
                    Liens on the property of the Person permitted by this clause
                    (h) shall not exceed 100% of the fair market value of such
                    property;

              (i)   Any Liens arising in the ordinary course of business of
                    Commercial Federal's banking business which constitute Liens
                    securing a loan from a Federal Home Loan Bank, Liens
                    securing deposits of governmental entities, and Liens in
                    connection with securities repurchase agreements; and

              (j)   Other Liens, provided, that the aggregate amount of
                    Indebtedness secured by such other Liens shall not at any
                    time exceed an amount equal to five percent (5%) of the sum
                    of the stockholder's equity of the Person calculated in
                    accordance with GAAP, plus any non-cash charges occurring
                    after the date hereof relating to changes in accounting
                    policies, minus the sum (without duplication) of (i)
                    intangible assets as set forth in the

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                     financial statements of the Person, and (ii) Redeemable
                     Stock.

Person:          Any individual, partnership, corporation, trust, unincorporated
                 organization, limited liability company, or limited liability
                 partnership.

Plan:            Any Plan as defined in Section 3 of ERISA.

Potential Event  Any event or condition the occurrence or existence of which
of Default:      would, with the lapse of time or the giving of notice, or both,
                 become an Event of Default.

Primary          La Salle National Bank, a national banking association located
Participants:    in Chicago, Illinois; U.S. Bank National Association, a
                 national banking association located in Milwaukee, Wisconsin,
                 and M & I Marshall and Ilsley Bank, a national banking
                 association located in Milwaukee, Wisconsin.

Pro Forma        With respect to the Borrower and its  Subsidiaries on a
Fixed Charges:   consolidated basis for any period, the sum of: (i) Consolidated
                 Interest Expense for such period, plus (ii) operating lease
                 expenses of the Borrower and its Subsidiaries on a consolidated
                 basis for such period; plus (iii) the Term Note principal
                 payments, but excluding the Term Note principal payment due
                 December 31, 2007.

Quarterly        The report prepared by the Borrower's chief financial officer
Compliance       on behalf of the  Borrower pursuant to Section 5.1 hereof,
Certificate:     substantially in the form of Exhibit 5.1 hereto.

Redeemable       Any equity security which, by its terms (or by the terms of any
Stock:           security into which it is convertible or for which it is
                 exchangeable before the Term Note Maturity Date (as hereinafter
                 defined)), or upon the happening of any event, matures or is
                 mandatorily redeemable or is redeemable at the option of the
                 holder thereof, in whole or in part, prior to the Term Note
                 Maturity Date.

Restricted       As to any Person, any dividends (including, without limitation,
Payments:        dividends payable in cash and other non-cash distributions and
                 all accrued cumulative dividends on preferred stock, but
                 excluding dividends payable solely in stock of the Person and
                 stock splits of the Person) in respect of the capital stock of
                 such Person; stock redemptions and repurchases by such Person;
                 payments with respect to warrants, options, rights or puts of
                 such Person; other cash distributions in respect of the capital
                 stock of the Person, excluding dividends, stock redemptions and
                 repurchases, warrants, options, rights and puts; other cash
                 distributions in respect of capital stock between the Person
                 and its Subsidiaries or between Subsidiaries; and any payments
                 of the subordinated debt shown as "Existing Indebtedness" on
                 Exhibit I.

Revolving        The amount available to be drawn and outstanding under the
Credit Facility  Revolving Notes, which shall be $10,000,000.
Amount:

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Amount:

Revolving        That certain promissory note from the Borrower to the Bank in
Notes:           the principal amount of $10,000,000, dated as of the date
                 hereof, evidencing the loan contemplated in Section 3.1 of this
                 Agreement, substantially in the form set forth in Exhibit 3.2
                 hereto, and any promissory note or notes from the Borrower to
                 the Bank in replacement, renewal or extension thereof.

Revolving        December 29, 2003
Note Maturity
Date:

Secondary        Financial institutions as to which the Bank and/or the Primary
Participants:    Participants have granted a participation in the Revolving
                 Notes or the Term Notes.

Subsidiary:      Subsidiary shall mean, with respect to any Person, any
                 corporation, partnership or other entity of which at least a
                 majority of the securities or other ownership interests having
                 by the terms thereof ordinary voting power to elect a majority
                 of the board of directors or other persons performing similar
                 functions of such corporation, partnership or other entity
                 (irrespective of whether or not at the time securities or other
                 ownership interests of any other class or classes of such
                 corporation, partnership or other entity shall have or might
                 have voting power by reason of the happening of any
                 contingency) is at the time directly or indirectly owned or
                 controlled by such Person or one or more Subsidiaries of such
                 Person or by such Person and one or more Subsidiaries of such
                 Person.

Supplementary    The amount of capital designated as "Supplementary Capital"
Capital:         under 12 C.F.R. (S) 567.5(b) and other applicable statutes,
                 rules and regulations specified by the Office of Thrift
                 Supervision. Supplementary capital consists of, among other
                 items, certain approved subordinated debt and a portion of
                 Commercial Federal's loan loss allowances.

Taxes:           Taxes shall mean all present and future stamp, transaction,
                 registration and other taxes and levies, imposts, deductions,
                 charges, and withholdings whatsoever, and all interest,
                 penalties or similar amounts with respect thereto, now or
                 hereafter imposed, assessed, levied or collected by any
                 authority of or in any jurisdiction (including, without
                 limitation, the U.S. or any political subdivision or taxing
                 authority thereof or therein, or any international or other
                 association of or with which the U.S. may be a member or
                 associated) on or in respect of any Credit Document, the
                 recording, registration, notarization or other formalization of
                 any thereof, the enforcement thereof or the introduction
                 thereof in any judicial proceedings, or on or in respect of any
                 payments of principal, interest, premium, charges, fees or
                 other amounts made on, under or in respect of any thereof.

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Term Note:       That certain promissory note from the Borrower to the Bank in
                 the principal amount of $94,000,000, dated as of the date
                 hereof, evidencing the loan contemplated in Section 2.1 of this
                 Agreement, substantially in the form set forth in Exhibit 2.2
                 hereto, and any promissory note or notes from the Borrower to
                 the Bank in replacement, renewal or extension thereof.

Term Note        December 31, 2007
Maturity Date:

Tier 1 Capital:  The amount of capital designated as "Tier 1 Capital" under
                 applicable statutes and the rules and regulations promulgated
                 by the Borrower's principal regulatory authority.

Tier 1           The amount of capital designated as "Tier 1 Leverage Capital"
Leverage         under 12 C.F.R. (S) 567.8 and  other applicable statutes, rules
Capital:         and regulations specified by the Office of Thrift Supervision.

Tier 1 Risk-     The amount of capital designated as "Tier 1 Risk-Based Capital"
Based Capital:   under 12 C.F.R.ss.567.6 and other applicable statutes, rules
                 and regulations specified by the Office of Thrift Supervision.

Total Risk-      As defined by the Office of Thrift Supervision pursuant to 12
Based Capital:   C.F.R.(S) 567.6, the sum of the Tier 1 Risk-Based Capital and
                 the Supplementary Capital.

Trust Preferred  The Trust Preferred Security CUSIP # 12526H201 dated May 14,
Debenture        1997, Wells Fargo Bank, Trustee.

Wholly-Owned     Wholly owned subsidiary shall mean, with respect to any Person,
Subsidiary:      any corporation, partnership or other entity of which all of
                 the equity securities or other ownership interests (other than,
                 in the case of a corporation, directors' qualifying shares)
                 are directly or indirectly owned or controlled by such Person
                 or one or more Wholly Owned Subsidiaries of such Person or by
                 such Person and one or more Wholly Owned Subsidiaries of such
                 Person.

              1.2     Accounting Terms and Determinations.

              (a)     Except as otherwise expressly provided herein, all
accounting terms used herein shall be interpreted, and all financial statements
and certificates and reports as to financial matters required to be delivered to
the Bank shall be prepared in U.S. Dollars in accordance with GAAP. All
calculations made for the purposes of determining compliance with this Agreement
shall be made by application GAAP. In the event of a material difference at any
time between GAAP as in effect on the date of this Agreement and GAAP from time
to time in effect, the Borrower shall deliver to the Bank at the same time as
the delivery of any annual or quarterly financial statement under Section 5.1
hereof a description in reasonable detail satisfactory to the Bank of any such
material differences and a

                                       13

<PAGE>

reconciliation of the calculations required thereby. In the event any changes in
accounting principles required by GAAP or recommended by the Borrower's
certified public accountants and implemented by the Borrower occur and such
changes result in a change in the method of the calculation, required thereby.

                            II. TERM CREDIT FACILITY

     2.1 Loan. Subject to satisfaction of the conditions precedent specified in
Section 8.1, and in consideration of the Borrower's execution and delivery of
the Term Note (substantially in the form of Exhibit 2.2 hereto) the Bank shall
cancel and return to the Borrower the existing promissory notes dated as of July
1, 1999, from the Borrower to the Bank in the principal amount of
$48,937,500.00, together with accrued and unpaid interest thereon as of December
30, 2002 in the amount of $427,863.28, for a total due of $49,365,363.28;
$10,000,000, with no principal balance outstanding as of the Closing Date
(together with accrued and unpaid interest thereon as of December 30, 2002 in
the amount of $0.00, for a total due of $0.00); and that certain promissory note
dated November 26, 2002 in the principal amount of $15,000,000 with no principal
balance outstanding as of the Closing Date (together with accrued and unpaid
interest thereon in the amount of $0.00, for a total due of $0.00); and shall
cancel and terminate the Term and Revolving Credit Loan Agreement dated as of
July 1, 1999, as amended between the Borrower and the Bank.

     2.2 Term Note. Amounts to be drawn under the Term Facility shall be in the
amount of $94,000,000, subject to the terms and conditions specified in this
Agreement. After the payments referenced in Section 2.1 hereof, and the
remaining balance of $44,634,636.72 will be used by the Borrower solely to fund
a call of $45,000,000 on the Trust Preferred Debenture. The Term Note shall bear
interest on the outstanding principal loan amount thereof from and after the
Closing Date to the date of repayment at the Note Rate; provided, however, that
after an Event of Default has occurred, interest shall accrue on the entire
outstanding balance of principal and interest at the Default Rate. The Note Rate
shall fluctuate on a daily basis, and changes in the Note Rate shall be
effective on the day any change is announced by the Bank in its National Base
Rate. Interest shall be calculated on the basis of actual days elapsed and a
year of 360 days.

     2.3 Payments. All obligations of the Borrower under the Term Note and this
Agreement shall be payable in immediately available funds in lawful money of the
United States of America at the principal office of the Bank in Omaha, Nebraska,
or at such other address as may be designated in writing by the Bank. Interest
on the unpaid balance of the Term Notes shall be due on the last day of the
months of March, June, September and December beginning March 31, 2003. The
principal amount of the Term Notes shall become due and payable in twenty equal
quarterly installments of $2,350,00000, with the first such installment due on
March 31, 2003, and subsequent installments due on the last day of the months of
June, September, December and March thereafter, with the balance of the
principal amount of the Term Notes due and payable on the Term Note Maturity
Date. The total amount of all unpaid principal and accrued interest hereunder
shall be due and payable no later than December 31, 2007. In the event that a
payment day is not a Business Day, the payment shall be due on the next
succeeding Business Day. Interest shall continue to accrue on the full unpaid
balance hereunder notwithstanding any permitted or unpermitted failure of the
Borrower to make a scheduled

                                       14

<PAGE>

payment or the fact that a scheduled payment falls on a day other than a
Business Day. Any payment received after 3 p.m. Omaha time, will be deemed paid
on the following Business Day.

     2.4 Prepayment. The Borrower may prepay, in whole or in part, without
penalty, the principal loan amount outstanding under the Term Notes if the
Borrower has given the Bank at least 10 Business Days prior written notice of
its intention to make such prepayment.

     2.5 Use of Proceeds. The Borrower shall use the proceeds of the Term Note
solely for the purposes described in Sections 2.1 and 2.2 hereof.

     2.6 Application of Payments. After the occurrence of a Potential Event of
Default or an Event of Default, the Bank shall have the right to apply payments
received under this Agreement to principal, interest, fees or any other amounts
outstanding under the Credit Documents in such order as the Bank in its sole
discretion may elect.

     2.7 Origination Fee. The Bank's obligation to provide the credit facilities
described in this Agreement is subject to the payment on or before the Closing
Date of an origination fee in the amount of One Hundred Eighty-Eight Thousand
Dollars ($188,000).

                         III. REVOLVING CREDIT FACILITY

     3.1 Loan. Until December 29, 2003, and subject to satisfaction of the
conditions precedent specified in Section 8.1, the Bank agrees to advance funds
for general corporate purposes to the Borrower on a revolving credit basis up to
the aggregate Revolving Credit Facility Amount in effect from time to time;
provided, however, that the aggregate amount of funds available for Advance to
the Borrower hereunder shall not exceed $10,000,000. The Borrower shall not be
entitled to Advances hereunder during the occurrence of an Event of Default or
Potential Event of Default. Such loan will be evidenced by the Revolving Notes
substantially in the form of Exhibit 3.1 hereof. Advances shall be made, on the
terms and conditions of this Agreement, upon the Borrower's request. Advance
requests shall be made by 12 noon Omaha time on the Business Day prior to the
requested date of the Advance. Advance requests shall be made by presentation to
the Bank of a drawing certificate in the form of Exhibit 3.1.

     3.2 Revolving Note. The Revolving Note shall bear interest on the
outstanding principal loan amount thereof from and after the Closing Date to the
date of repayment at the Note Rate; provided, however, that after an Event of
Default has occurred, interest shall accrue on the entire outstanding balance of
principal and interest at the Default Rate. The Note Rate shall fluctuate on a
daily basis, and changes in the Note Rate shall be effective on the day that a
change is announced by the Bank in its National Base Rate. Interest shall be
calculated on the basis of actual days elapsed and a year of 360 days.

     3.3 Payments. All obligations of the Borrower under the Revolving Notes and
this Agreement shall be payable in immediately available funds in lawful money
of the United States of America at the principal office of the Bank in Omaha,
Nebraska, or at such other address as may be designated in writing by the Bank.
Interest on the unpaid balance of the Revolving Notes shall be due on the last
day of the months of March, June, September and the Revolving Note Maturity
Date,

                                       15

<PAGE>

beginning March 31, 2003. The principal amount of the Revolving Note shall
become due and payable on the Revolving Note Maturity Date. The total amount of
all unpaid principal and accrued interest hereunder shall be due and payable no
later than December 29, 2003. In the event that a payment day is not a Business
Day, the payment shall be due on the next succeeding Business Day. Interest
shall continue to accrue on the full unpaid balance hereunder notwithstanding
any permitted or unpermitted failure of the Borrower to make a scheduled payment
or the fact that a scheduled payment falls on a day other than a Business Day.
Any payment received after 3 p.m. Omaha time, will be deemed paid on the
following Business Day.

     3.4 Prepayment. The Borrower may prepay, in whole or in part, without
penalty, the principal loan amount outstanding under the Revolving Notes if the
Borrower has given the Bank at least one Business Day prior written notice of
its intention to make such prepayment.

     3.5 Use of Proceeds. The Borrower shall use the proceeds of the loan for
general corporate purposes.

     3.6 Application of Payments. After the occurrence of a Potential Event of
Default or an Event of Default, the Bank shall have the right to apply payments
received under this Credit Agreement to principal, interest, fees or any other
amounts outstanding under the Credit Documents in such order as the Bank in its
sole discretion may elect.

     3.7 Non Use Fee. The Borrower agrees to pay to the Bank a commitment fee on
the average daily unused portion of the Revolving Note from the date of this
Agreement until the Revolving Note Maturity Date at the rate of one eighth (1/8)
of one (1) percent per annum, payable on the last day of the month of March,
June, September and on the Revolving Note Maturity Date, beginning March 31,
2003.

     3.8 Renewal. So long as no Event of Default has occurred or is continuing,
the Bank and its Primary Participants will consider for approval, on an annual
basis, renewal of the Revolving Note.

                       IV. REPRESENTATIONS AND WARRANTIES

     Both the Borrower and Commercial Federal represents and warrants to the
Bank that:

     4.1 Corporate Existence. Both (a) is a corporation, partnership or other
entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization; (b) has the requisite corporate or other
power, and has all material Governmental Approvals necessary to own its assets
and carry on its business as now being or as proposed to be conducted; (c) is
qualified to do business and is in good standing in all jurisdictions in which
the nature of the business conducted by it makes such qualification necessary
and where failure so to qualify could reasonably be expected (either
individually or in the aggregate) to have a Material Adverse Effect; and (d) the
certified copies of the charter and by-laws (or equivalent documents) of the
Borrower and of the all corporate authority for the Borrower (including, without
limitation, board of director resolutions, evidence of the incumbency, including
specimen signatures, of officers and evidence, with respect to the Borrower)
with respect to the execution, delivery and performance of such of the Credit
Documents to which the

                                       16

<PAGE>

Borrower is intended to be a party and each other document to be delivered by
such party from time to time in connection herewith and the extensions of credit
hereunder (and each Credit Party may conclusively rely on such certificate until
it receives notice in writing from the Borrower to the contrary) previously
delivered by the Borrower to the Bank in connection with the existing Credit
Agreement remain true and correct with no Material Adverse Changes.

     4.2 Financial Condition.

         (a) Both have heretofore furnished to the Bank:

             (i) As to the Borrower only, an audited balance sheet as at
     December 31, 2001 and the related statements of operations, shareholders'
     equity and cash flows for the fiscal years ended on said dates, accompanied
     by an opinion thereon of independent certified public accountants of
     recognized international standing; and

             (ii) Unaudited balance sheets as at September 30, 2002 and the
     related statements of operations, shareholders' equity and cash flows for
     the nine month period ended September 30, 2002, setting forth in each case
     in comparative form the corresponding figures for the corresponding periods
     in the preceding fiscal year.

         (b) All such financial statements fairly present in all material
respects the financial condition of the entities specified above and the results
of their respective operations for the respective fiscal years and the
respective six-month periods ended on the respective dates specified above
(subject, in the case of such unaudited financial statements, to normal year-end
audit adjustments), all in accordance with GAAP.

         (c) None of the entities referred to above for which financial
statements have been furnished had on the date(s) of their respective financial
statements any material contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any
unfavorable commitments, except as referred to or reflected or provided for
herein. As of the Closing Date and at the time prior to the delivery of the
first audited financial statements of the Borrower pursuant to Section 4.2(a)
hereof, there has been no material adverse change in the financial condition,
operations, business or prospects of such entities (taken as a whole) from that
set forth in such financial statements.

         (d) From and after the date of delivery of the first audited financial
statements of the Borrower pursuant to Section 4.2(a) hereof, since the date of
such financial statements, there has been no material adverse change in the
financial condition, operations, business or prospects of the Borrower from that
set forth herein.

     4.3 Litigation. There are no legal or arbitral proceedings, or any
proceedings by or before any Governmental Authority, now pending or (to the
knowledge of the Borrower) threatened against the Borrower or the transactions
contemplated hereby that could reasonably be expected (either individually or in
the aggregate) to have a Material Adverse Effect.

                                       17

<PAGE>

     4.4 No Breach. None of the execution and delivery of this Agreement, the
consummation of the transactions herein and therein contemplated or compliance
with the terms and provisions hereof and thereof will conflict with or result in
a breach of, or require any consent (except for those which have been obtained)
under, the organizational documents of the Borrower, or any applicable law or
regulation, or any order, writ, injunction or decree of any court or
Governmental Authority, or any agreement or instrument to which the Borrower is
a party or by which any of them or any of their Property is bound or to which
any of them is subject, or constitute a default under any such agreement or
instrument, or result in the creation or imposition of any Lien upon any
Property of the Borrower pursuant to the terms of any such agreement or
instrument.

     4.5 Action; Enforceability. The Borrower has all necessary corporate power,
authority and legal right to execute, deliver and perform its obligations under
each of the Credit Documents to which it is a party; the execution, deliver and
performance by the Borrower of each of the Credit Documents to which it is a
party have been duly authorized by all necessary corporate action on its part
(including, without limitation, any required shareholder approvals); and this
Agreement has been duly validly executed and delivered by the Borrower and
constitutes, and each of the other Credit Documents to which it is a party when
executed and delivered by the Borrower (in the case of the Notes, for value)
will constitute, its legal, valid and binding obligation, enforceable against
the Borrower in accordance with its terms, except as such enforceability may be
limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar
laws of general applicability affecting the enforcement of creditors' rights and
(b) the application of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     4.6 Governmental Approvals. No authorizations, approvals or consents of
(including any exchange control approval), and no filings or registrations with,
any Governmental Authority or any securities exchange are necessary for the
execution, deliver or performance by the Borrower of any of the Credit Documents
to which it is a party or for the legality, validity or enforceability hereof or
thereof.

     4.7 Employee Benefits Plan. Each Employee Benefit Plan is in compliance in
all material respects with, and has been administered in all material respects
in compliance with, applicable law and regulations.

     4.8 Taxes. Each have filed all material tax returns that are required to be
filed by them and have paid all taxes shown due pursuant to such returns, except
for any tax the payment of which is being contested in good faith and by proper
proceedings and against which adequate reserves in accordance with GAAP are
being maintained. The charges, accruals and reserves on the books of Borrower
and Commercial Federal in respect of taxes and other governmental charges are,
in the opinion of the Borrower, adequate in accordance with GAAP.

     4.9 Investment Company Act. Neither is an "investment company", or a
company "controlled" by an "investment company", within the meaning of the
Investment Company Act of 1940, as amended.

                                       18

<PAGE>

     4.10 Public Utility Holding Company Act. Neither the is a "holding
company", or an "affiliate" of a "holding company" or a "subsidiary company" of
a "holding company", within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

     4.11 Environmental Matters. Each has obtained all environmental, health and
safety permits, licenses, consents, approvals and other authorizations required
under all Environmental Laws to carry on its business as now being or as
proposed to be conducted, except to the extent failure to have any such permit,
license, consent, approval or authorization would not (either individually or in
the aggregate) have a Material Adverse Effect. Each of such permits, licenses,
consents, approvals and authorizations is in full force and effect and each of
the Borrower and Commercial Federal is in compliance with the terms and
conditions thereof, and with all other limitations, restrictions, conditions,
standards, prohibitions, requirements, obligations, schedules and timetables
contained in any applicable Environmental Law, except to the extent failure to
comply therewith would not (either individually or in the aggregate) have a
Material Adverse Effect.

     4.12 True and Complete Disclosure. The information, reports, financial
statements, exhibits and schedules furnished in writing by or on behalf of the
Borrower to the Bank in connection with the negotiation, preparation or delivery
of the Credit Documents or included herein or therein or delivered pursuant
hereto or thereto, when taken as a whole (together with the Information
Memorandum with respect to the matters contained therein relating to the
Borrower and the transactions contemplated hereby) do not contain any untrue
statement of material fact or omit to state any material fact necessary to make
the statements herein or therein, in light of the circumstances under which they
were made, not misleading. All written information furnished after the date
hereof by the Borrower to the Bank pursuant to the Credit Documents and the
transactions contemplated hereby and thereby will be true, complete and accurate
in every material respect, or (in the case of projections) based on reasonable
estimates, on the date as of which such information is stated or certified.
There is no fact known to the Borrower that could reasonably be expected to have
a Material Adverse Effect that has not been disclosed herein, in the other
Credit Documents, or in a report, financial statement, exhibit, schedule,
disclosure letter or other writing furnished to the Lenders for use in
connection with the transactions contemplated hereby or thereby.

     4.13 Commercial Activity; Absence of Immunity. The Borrower is subject to
civil and commercial law with respect to its obligations under each of the
Credit Documents to which it is a party. The execution, delivery or performance
by the Borrower of each of the Credit Documents to which it is a party
constitute private and commercial acts rather than public or governmental acts.
Neither the Borrower nor any of its respective Properties or revenues, is
entitled to any right of immunity in any jurisdiction from suit, court
jurisdiction, judgment, attachment (whether before or after judgment), set-off
or execution of a judgment or form any other legal process or remedy relating to
the obligations of the Borrower under any of the Credit Documents to which it is
a party.

     4.14 Title to Assets. The Borrower has good title to all of its material
properties and assets.

     4.15 Compliance with Laws. Without impairing the specificity of Sections
4.07 and 4.11, the Borrower is not in violation of any law, rule, regulation,
order, or decree of any Governmental

                                       19

<PAGE>

Authority or arbitrator applicable to it or its properties other than violation
s which (either individually or in the aggregate) could not reasonably be
expected to have a Material Adverse Effect.

     4.16 Margin Regulations. No part of the proceeds of any advance hereunder
shall be used for any purpose that violates, or which is inconsistent with, the
provisions of Regulation G, T, U or X of the Board of Governors of the Federal
Reserve System of the United States.

     4.17 Capital Distributions.

          (a) Commercial Federal is authorized to make capital distributions
during a calendar year upon notice to the Office of Thrift Supervision as
permitted in 12 C.F.R. ss.563.140-146.

          (b) No approval (excluding the notices contemplated in Section 5.10 of
this Agreement) of the Office of Thrift Supervision, the FDIC, or any other
regulatory authority, state or federal, is required in order for Commercial
Federal to make capital distributions.

     4.18 Commercial Federal Stock. The Borrower owns 100% of the issued and
outstanding capital stock of Commercial Federal, and such stock is free of any
Lien. Such stock is not subject to any restrictions on pledge, hypothecation, or
other encumbrance, or any restrictions on sale, assignment or other transfer,
except as disclosed in Exhibit 4.18 hereof.

                            V. AFFIRMATIVE COVENANTS

     The Borrower hereby covenants that:

     5.1 Financial Reports.

         (a) Within forty-five (45) days after the end of each quarterly fiscal
     period, the Borrower, at its sole expense, shall furnish the Bank a copy of
     the Borrower's Quarterly Report on Form 10-Q for such quarterly period
     prepared in compliance with the requirements therefor and filed with the
     Securities and Exchange Commission.

         (b) Within ninety (90) days after the close of the Borrower's fiscal
     year, the Borrower, at its sole expense, shall furnish the Bank: (i) a copy
     of the Borrower's Annual Report on Form 10-K for such fiscal year (together
     with the Borrower's annual report to shareholders, if any, prepared
     pursuant to Rule 14A-3 under the Securities Exchange Act of 1934, as
     amended, prepared in compliance with the requirements therefor and filed
     with the Securities and Exchange Commission); and (ii) a certificate from
     Deloitte & Touche, or other independent certified public accountants
     acceptable to the Bank certifying that in making the requisite audit for
     certification of any such financial statements after the date of this
     Agreement, the auditors either (1) have obtained no knowledge, and are not
     otherwise aware of, any condition or event which constitutes an Event of
     Default or which with the passage of time or the giving of notice would
     constitute an Event of Default or Potential Event of Default, or (2) have
     discovered such condition or event, as specifically set forth in such
     certificate, which constitutes an Event of Default or Potential Event of
     Default. The auditors shall not be liable to the Bank by reason of the
     auditors' failure to obtain knowledge of such event or condition in

                                       20

<PAGE>

     the ordinary course of their audit unless such failure is the result of
     negligence or willful misconduct in the performance of the audit.

         (c) Within forty-five (45) days after the end of each quarter, the
     Borrower, at its expense, shall furnish the Bank a Quarterly Compliance
     Certificate and a Loan Loss Reserve Adequacy Report, substantially in the
     form of Exhibit A to the Quarterly Compliance Report, setting forth such
     information (including detailed calculations) sufficient to verify the
     conclusions of such officer after due inquiry and review, that:

             (i)  The Borrower, either (y) is in compliance with the
         requirements set forth in this Agreement or (z) is NOT in compliance
         with the foregoing for reasons specifically set forth therein; and

             (ii) The chief financial officer of the Borrower has reviewed or
         caused to be reviewed all of the terms of the Credit Documents of the
         Borrower and that such review either (1) has NOT disclosed the
         existence of any condition or event which constitutes an Event of
         Default or a Potential Event of Default under the Credit Documents or
         (2) has disclosed the existence of a condition or event which
         constitutes an Event of Default or a Potential Event of Default, under
         the aforesaid instrument or instruments and the specific condition
         or event is specifically set forth.

         (d) The Borrower shall provide the Bank with such other financial
     reports and statements as the Bank may reasonably request.

     5.2 Notice of Default. The Borrower shall give to the Bank prompt written
notification of the existence or occurrence of:

         (a) any fact or event which results in an Event of Default or
     Potential Event of Default hereunder;

         (b) any proceedings instituted by or against the Borrower or Commercial
     Federal in any federal, state or local court or before any governmental
     body or agency, or before any arbitration board, or any such proceedings
     threatened against the Borrower or Commercial Federal by any governmental
     agency,

             (i)  affecting or challenging the validity of the Credit Documents,
         or payment of the Term Notes or Revolving Notes; or

             (ii) which is likely to have a Material Adverse Effect;

         (c) any event of default or any event or condition the occurrence or
     existence of which with the lapse of time, the giving of notice, or both,
     would become an event of default involving the payment of money under any
     agreement or instrument which is Material to the Borrower or Commercial
     Federal to which the Borrower or Commercial Federal, as applicable, is a
     party or by which it or any of its property may be bound, and which default
     or event of default would have a Material Adverse Effect; or

                                       21

<PAGE>

                  (d) the Borrower shall give immediate notice of the
         commencement of any proceeding under the Federal Bankruptcy Code by or
         against the Borrower or Commercial Federal, or of any regulatory action
         against or materially affecting the Borrower or Commercial Federal.

         5.3      Compliance with Law and Regulations. The Borrower shall
comply, and shall cause Commercial Federal to comply, in all material respects
with all applicable federal and state laws and regulations.

         5.4      Maintenance of Property; Accounting; Corporate Form; Taxes;
Insurance.

                  (a) The Borrower shall maintain, and shall cause Commercial
         Federal to maintain, its property in good condition in all material
         respects, ordinary wear and tear excepted, and make all renewals,
         replacements, additions, betterments and improvements thereto necessary
         for the efficient operation of its business.

                  (b) The Borrower shall keep, and shall cause Commercial
         Federal to keep, true books of record and accounts in which full and
         correct entries shall be made of all its business transactions, all in
         accordance with generally accepted accounting principles consistently
         applied.

                  (c) The Borrower shall do or cause to be done all things
         necessary to preserve and keep in full force and effect, for each of
         itself and Commercial Federal, its corporate form of existence as is
         necessary for the continuation of its business in substantially the
         same form.

                  (d) The Borrower shall pay, and shall cause Commercial Federal
         to pay, all taxes, assessments and governmental charges or levies
         imposed upon it or its property; provided, however, that neither the
         Borrower nor Commercial Federal shall be required to pay any of the
         foregoing taxes which are being diligently contested in good faith by
         appropriate legal proceedings and with respect to which adequate
         reserves have been established.

                  (e) The Borrower shall maintain or cause to be maintained
         liability insurance and casualty insurance upon tangible assets owned
         by it or by Commercial Federal.

         5.5      Inspection of Properties and Books. Subject to any necessary
regulatory approvals and privacy laws, the Borrower shall recognize and honor
the right of the Bank, upon request to an officer of the Borrower by the Bank's
head of the Correspondent Banking department, the Corporate Bank President, or
an Executive Vice President of the Bank or higher, to visit and inspect any of
the properties of, to examine the books, accounts, and other records of, and to
take extracts therefrom and to discuss the affairs, finances, loans and accounts
of, and to be advised as to the same by the officers of, the Borrower and
Commercial Federal at all such times, in such detail and through such agents and
representatives as the Bank may reasonably desire.

         5.6      Corporate Structure. The Borrower shall give the Bank ninety
(90) days notice prior to changing its corporate structure, if such change would
result in a Material Adverse Effect.

                                       22

<PAGE>

         5.7      Notice of Change in Ownership or Management. During the term
of this Agreement, the Borrower shall give the Bank notice of the occurrence of
any of the following described events, which notice shall be given as soon as
the Borrower obtains notice or knowledge thereof:

                  (a) any Change of Control; or

                  (b) any Material Adverse Management Change or event or
         occurrence which is likely to result in a Material Adverse Effect.

         5.8      Expenses. The Borrower shall, immediately upon demand by the
Bank, reimburse the Bank for all costs and expenses, including fees and expenses
of counsel to the Bank, incurred by the Bank in connection with the transaction
contemplated by the Operating Documents, including without limitation, the
negotiation, execution, waiver, amendment or enforcement thereof.

         5.9      Transactions with Affiliates. All transactions between or
among the Borrower, Commercial Federal, their Subsidiaries or Affiliates, or any
of them (other than transactions between Commercial Federal and its Wholly-Owned
Subsidiaries) shall be in the ordinary course of business, for fair value and on
terms no less favorable than would be obtainable in a comparable arms-length
transaction with a third party.

         5.10     Regulatory Notices of Capital Distribution. The Borrower shall
provide to the Bank copies of all notices to the Office of Thrift Supervision
regarding capital distributions.

                             VI. NEGATIVE COVENANTS

         The Borrower hereby covenants that:

         6.1      Corporate Structure and Assets. The Borrower shall not merge
or consolidate with any other corporation or entity unless the Borrower shall be
the surviving entity, nor sell any assets except items that are obsolete or no
longer necessary for operation of the business, other than in the ordinary
course of business without the prior written consent of the Bank. The Bank shall
be entitled to receive as a prepayment on the Term Notes or Revolving Notes
proceeds of any sale of assets of the Borrower which are prohibited by the
preceding sentence. Notwithstanding the foregoing prepayment requirements, any
such prohibited sale shall remain a violation of this Agreement.

         6.2      Use of Proceeds. No part of the proceeds of any advance
hereunder shall be used for any purpose that violates, or which is inconsistent
with, the provisions of Regulation G, T, U or X of the Board of Governors of the
Federal Reserve System of the United States.

         6.3      Negative Pledge. The Borrower will not create, incur, assume,
permit or suffer to exist with respect to any of the assets or property of the
Borrower or Commercial Federal or their respective Wholly-Owned Subsidiaries
(including, without limitation, the Borrower's stock in and evidences of debt
from Commercial Federal or other Subsidiaries) or any income, revenue, or
profits therefrom, all whether now owned or possessed or hereafter acquired, any
Lien, assignment, hypothecation, charge, adverse claim or other encumbrance
thereon, excepting only Permitted Liens. Neither the Borrower nor Commercial
Federal nor any of their respective Wholly-Owned Subsidiaries

                                       23

<PAGE>

will transfer or convey any of its assets or property (including without
limitation, its stock in Subsidiaries), or any income, revenue, profits
therefrom, all whether now owned or possessed or hereafter acquired, for the
purpose, or with the effect, of subjecting the same to payment of any
Indebtedness or other obligation in priority of payment over its general
creditors. Neither the Borrower nor Commercial Federal nor any of their
respective Wholly-Owned Subsidiaries will suffer to exist any Indebtedness or
obligation (other than Indebtedness or an obligation secured by a Permitted Lien
which does not otherwise create a Default or Event of Default under this
Agreement) which may, by law, if unpaid or in the event of bankruptcy or
insolvency, or otherwise, be given priority in payment over its general
creditors; nor will the Borrower or Commercial Federal or any of their
respective Wholly-Owned Subsidiaries make any agreement or arrangement to
subordinate the payment of the Term Notes or the Revolving Notes to any other
Indebtedness. Without limiting the generality of the foregoing, if the Borrower
or Commercial Federal or any of their respective Wholly-Owned Subsidiaries shall
create, incur, assume, permit or suffer to exist any Lien (other than Permitted
Liens) upon any of its property or assets, the Borrower or Commercial Federal or
their respective Wholly-Owned Subsidiaries, as applicable, shall make or cause
to be made effective provision for the Term Note and the Revolving Note to be
secured equally and ratably with any Indebtedness secured by the Lien, so long
as such other Indebtedness shall be so secured; provided, however, that such
Lien will constitute a breach of this Section 6.3 regardless of the Borrower's
or Commercial Federal's or their respective Wholly-Owned Subsidiaries'
compliance with this last sentence.

         6.4      Prepayment of Indebtedness. The Borrower shall not prepay any
of the Existing Indebtedness (other than amounts owed under the Term Notes and
the Revolving Notes) prior to the scheduled debt service shown on Exhibit 6.4
hereof without the written consent of the Bank.

                            VII. FINANCIAL COVENANTS

         7.1      Total Risk-Based Capital. The Borrower shall cause Commercial
Federal to maintain Total Risk-Based Capital in an amount not less than
$800,000,000.00.

         7.2      [Reserved].

         7.3      Additional Debt. From and after the Closing Date, without the
prior written consent of the Bank, the Borrower will not create, incur, or
suffer to exist any Indebtedness except Indebtedness incurred by the Borrower in
the ordinary course of its business or any additional Indebtedness (including
Indebtedness under capital leases) not in excess of $25,000,000 on a
consolidated basis and which at all times shall be subordinate to the Credit
Documents.

         7.4      Financial Ratios. During the term of this Agreement, the
Borrower shall maintain and shall cause Commercial Federal to maintain, as
applicable, financial ratios on a consolidated basis equivalent to or better
than the following:

                  (a) the ratio of the Borrower's total liabilities, determined
         in accordance with GAAP, to Commercial Federal's Total Risk-Based
         Capital shall not exceed .30 to 1.0 (30.0%);

                                       24

<PAGE>

                  (b) the Borrower's Earnings Available for Fixed Charges for
         the then-current immediately preceding three calendar quarters shall be
         no less than two times the Borrower's Pro Forma Fixed Charges for the
         then-current and three immediately following calendar quarters;

                  (c) Commercial Federal's Classified Loans, excluding Other
         Real Estate Owned (as required to be disclosed in Commercial Federal's
         reports to any of its regulators), shall be less than 2.0% of the total
         principal amount of outstanding loans and less than 24.0% of Commercial
         Federal's Total Risk-Based Capital;

                  (d) Commercial Federal's Non-Performing Loans shall be less
         than 1.3% of the total principal amount of outstanding loans and less
         than 16.0% of Commercial Federal's Total Risk-Based Capital;

                  (e) Commercial Federal's Non-Performing Assets shall be less
         than 22.0% of Commercial Federal's Total Risk-Based Capital; and

                  (f) On an annual basis as determined in accordance with GAAP
         as of December 31st of each year, Commercial Federal's annual return on
         assets shall be no less than 0.4% per annum.

         7.5      Commercial Federal Reserves. At all times during the term of
this Agreement, the Borrower shall cause Commercial Federal to maintain a
reserve for bad debts equal to at least 65.0% of the total principal amount
outstanding of Commercial Federal's Non-Performing Assets. Additionally, the
Borrower shall cause Commercial Federal to maintain a ratio of actual reserve to
minimum reserve of greater than 100%, as calculated and reported in the Loan
Loss Reserve Adequacy Report, which the Borrower will provide to the Bank on a
quarterly basis.

         7.6      Sales of Assets. Except for transactions in the ordinary
course of business including the sale of the OREO properties, and transactions
with the Borrower's Wholly-Owned Subsidiaries, during the term of this Agreement
the Borrower shall not sell, lease, abandon or otherwise dispose of, or permit
the sale, lease, abandonment or other disposition of assets on a consolidated
basis in excess of $10,000,000 each year. Notwithstanding the foregoing, the
Borrower is hereby permitted to sell the following real property in Omaha,
Nebraska, so long as the proceeds of such sales are reinvested by the Borrower
in a new corporate headquarters: (a) the Commercial Federal Building at 450
Regency Parkway; (b) the building at 4444 Farnam Street; and (c) the 70-acre
parcel of land bounded by 132nd Streets and 137th Streets on the east and west,
and Dodge Street and Burt Street on the south and north. All sales, leases,
abandonment or other disposition of an aggregate annual amount of $10,000,000
must be at fair market value. The Borrower shall not, and shall not permit
Commercial Federal nor any of their Subsidiaries to: (i) sell, assign, pledge or
otherwise dispose of any stock of Commercial Federal; (ii) enter into any other
transaction, the effect of which would be to reduce the Borrower's percentage of
stock in Commercial Federal; or (iii) sell, assign,

                                       25

<PAGE>

pledge or otherwise dispose of any stock of any other Subsidiary in excess of
$10,000,000 in the aggregate after the date hereof.

         7.7 Investments in Affiliates and Subsidiaries. The Borrower shall not
make any loans or other extensions of credit to, or capital contributions or
other investments in, its Affiliates and Subsidiaries, in an aggregate amount
per year in excess of $25,000,000; provided, however, that this limitation shall
not apply to any such transactions with the Borrower's Wholly-Owned
Subsidiaries.

          7.8 Capital. The Borrower shall cause Commercial Federal to maintain a
level of capital that exceeds by .25% (.0025) the percent which qualifies it as
"well-capitalized" under then-current the rules and regulations specified by the
Office of Thrift Supervision, including without limitation 12 C.F.R. ss.
565.4(b)(1) and any regulations promulgated in connection with, or substitution
or replacement thereof. Based on current regulatory requirements, the Borrower
shall cause Commercial Federal to maintain financial ratios equivalent to or
better than the following:

                  (a) Tier 1 Leverage Capital shall be not less than 5.25%;

                  (b) Tier 1 Risk-Based Capital shall be not less than 6.25%;
         and

                  (c) Total Risk-Based Capital shall be not less than 10.25%.

                           VIII. CONDITIONS PRECEDENT

         8.1 Initial Extension of Credit. The obligation of the Bank to make its
initial Loan hereunder is subject to the conditions precedent that: (i) such
Loan shall be made on or prior to December 31, 2002; and (ii) the Bank shall
have received the following documents, each of which shall be satisfactory to
the Bank in form and substance:

                  (a) Officer's Certificate. A certificate of a Responsible
         Officer of the Borrower, dated the Closing Date, to the effect set
         forth in the first sentence of 8.2 hereof.

                  (b) Solvency Certificate. A solvency certificate from a
         Responsible Officer of the Borrower as required by, and in form and
         substance reasonably satisfactory to, the Bank.

                  (c) Repayment of Existing Indebtedness. Evidence that the
         principal of and interest on, and all other amounts owing in respect
         of, the Indebtedness (including, without limitation, any contingent or
         other amounts payable in respect of letters of credit) outstanding in
         connection with the Existing Credit Agreement shall have been (or shall
         be simultaneously) paid in full, that any commitments to extend credit
         under the agreements or instruments relating to such Indebtedness shall
         have been cancelled or terminated.

                                       26

<PAGE>

                  (d) Opinions of Counsel to the Borrower. Opinion, dated the
         Closing date, of counsel to the Borrower in form and substance
         satisfactory to the Bank and covering such matters with respect to the
         Credit Documents being executed and delivered by the Borrower.

                  (e) Payment of Fees and Other Amounts. Evidence of payment of
         all fees payable to the Bank as of the Closing Date as heretofore
         agreed.

                  (f) Other Documents. Such other documents as any the Bank or
         counsel to the Bank may reasonably request.

                  (g) Agency. Payment by the Borrower to the Bank of an agency
         fee of fifty thousand dollars ($50,000.00).

         8.2      Initial and Subsequent Extensions of Credit. The obligation of
the Bank to make any Loan to the Borrower is subject to the further conditions
precedent that, both immediately prior to the making of such Loan, and also
after giving effect thereto and to the intended use thereof:

                  (a) No Default shall have occurred and be continuing;

                  (b) The representations and warranties made by the Borrower in
         Section 8 hereof shall be true and complete on and as of the date of
         the making of such Loan, or other extension of credit wit h the same
         force and effect as if made on and as of such date (or, if any such
         representation or warranty is expressly stated to have been made as of
         the specific date, as of such specific date);

                  (c) No material adverse change shall have occurred and be
         continuing with respect to the condition (financial or otherwise),
         business, operations, assets, liabilities or prospects of the Borrower.

                  (d) No order, judgment or decree of any court, arbitrator or
         Governmental Authority that does, or seeks to, enjoin or restrain the
         Bank from making any Loan or shall be pending or threatened.

                              IX. EVENTS OF DEFAULT

         9.1      Events of Default. If one or more of the following events
(herein called "Events of Default") shall occur and be continuing:

                  (a) The Borrower shall default in the payment when due
         (whether at stated maturity or upon mandatory or optional prepayment)
         of any principal of any Loan. The Borrower shall default in the payment
         when due of any interest on any Loan, any fee or any other amount
         payable by it hereunder or under any other Credit Document; or

                  (b) The Borrower shall default in the payment when due of any
         principal of or interest on any of its other Indebtedness; or any event
         specified in any note, agreement, indenture or other document
         evidencing or relating to any such Indebtedness shall occur if the

                                       27

<PAGE>

         effect of such event is to cause, or (with the giving of any notice or
         the lapse of time or both) to permit the holder or holders of such
         Indebtedness (or a trustee or agent on behalf of such holder or
         holders) to cause, such Indebtedness to become due, or to be prepaid in
         full (whether by redemption, purchase, offer to purchase or otherwise),
         prior to its stated maturity; or

                  (c) Any representation, warranty or certification made or
         deemed made herein or in any other Credit Document (or in any
         modification or supplement hereto or thereto) by the Borrower or any
         certificate furnished to the Bank pursuant to the provisions hereof or
         thereof, shall prove to have been false or misleading as of the time
         made or furnished in any material respect; or

                  (d) The Borrower shall default in the performance of any of
         its obligations under any of Sections 5.2, 5.6, 7.1, 7.3, 7.4, 7.5, and
         7.8 hereof. The Borrower shall default in the performance of any of its
         obligation in any Credit Document (other than those listed in clause
         (a) of this Section 9 or the first sentence of this clause (d)) and
         such default (in each se set forth in this sentence) shall continue
         unremedied for a period of 30 or more days after notice thereof to the
         Borrower by the Bank; or

                  (e) The Borrower shall admit in writing its inability to, or
         be generally unable to, pay its debts as such debts become due; or

                  (f) The Borrower shall (i) apply for or consent to the
         appointment of, or the taking of possession by, a receiver, an interim
         receiver, an administrator, a custodian, trustee, examiner, provisional
         liquidator, liquidator or similar officer of itself or of all or a
         substantial party of its Property, (ii) make a general assignment for
         the benefit of its creditors, (iii) commence a voluntary case under any
         applicable Bankruptcy Law, (iv) file a petition (or proposal or notice
         of intention to file a proposal or motion for a stay) seeking to take
         advantage of any other law relating to bankruptcy, insolvency,
         reorganization, suspension of payments, liquidation, dissolution,
         arrangement or winding-up, or composition or readjustment of debts, (v)
         fail to controvert in a timely and appropriate manner, or acquiesce in
         writing to, any petition filed against it in an involuntary case under
         any applicable Bankruptcy Law or (vi) take any corporate action
         (including, without limitation, any resolution) for the purpose of
         effecting any of the foregoing; or

                  (g) A proceeding or case shall be commenced against the
         Borrower without the application or consent of the Borrower, as the
         case may be, in any court of competent jurisdiction, seeking (i) its
         reorganization, liquidation, dissolution, arrangement or winding-up, or
         the composition or readjustment of its debts, (ii) the appointment of a
         receiver, an interim receiver, a custodian, trustee, examiner,
         provisional liquidator, liquidator or the like of the Borrower of all
         or any substantial part of its Property, or (iii) similar relief in
         respect of the Borrower under any Bankruptcy Law, and such proceeding
         or case shall continue undismissed or not rejected, or an order,
         judgment or decree approving or ordering any of the foregoing shall be
         entered and continue unstayed and in effect, for a period of 90 or more
         days; or an order for relief against the Borrower shall be entered in
         an involuntary case under any applicable Bankruptcy Law; or

                                       28

<PAGE>

                  (h) A final judgment or judgments for the payment of money of
         One Million Dollars ($1,000,000) or more in the aggregate (exclusive of
         judgment amounts fully covered by insurance where the insurer has
         admitted liability in respect of such judgment) shall be rendered by
         one or more courts, administrative tribunals or other bodies having
         jurisdiction against the Borrower and the same shall be outstanding at
         the same time and shall not be discharged (or provision shall not be
         made or such discharge), or a stay of execution thereof shall not be
         procured, within 30 days from the date of entry thereof and the
         Borrower shall not, within said period of 30 days, or such longer
         period during which execution of the same shall have been stayed,
         appeal therefrom and cause the execution thereof to be stayed during
         such appeal; or

                  (i) Any Governmental Approval or other license, consent,
         authorization, registration or approval at any time necessary to enable
         the Borrower to comply with any of its obligations under this Agreement
         or any other Credit Document shall be revoked, withdrawn or withheld or
         shall be modified or amended in a manner which could reasonably be
         expected, in the sole determination of the Bank to have a Material
         Adverse Effect on such event or condition shall continue unremedied for
         a period of 30 or more days after notice thereof to the Borrower by the
         Bank, or any other event or circumstance shall occur which could
         reasonably be expected, in the sole determination of the Bank, to have
         a Material Adverse Effect; or

THEREUPON: (1) in the case of an Event of Default other than one referred to in
clause 9.01 of this Section 9, the Bank may, by notice to the Borrower,
terminate the Revolving Commitment and/or declare the principal amount then
outstanding of, and the accrued interest on, the Revolving Loan and the Term
Loan, and all other amounts payable to the Borrower hereunder and under the
other Credit Documents to be forthwith due and payable, whereupon such amounts
shall be immediately due and payable without presentment, demand, protest or
other formalities of any kind, all of which are hereby expressly waived by the
Borrower; and (2) in the case of the occurrence of an Event of Default referred
to in clause 9.01 of this Section 9, the Revolving Commitment and the Term Loan
shall automatically be terminated and the principal amount then outstanding of
and the accrued interest on, the Revolving Credit Loan and the Term Loan and all
other amounts payable by the Borrower hereunder and under the other Credit
Documents shall automatically become immediately due and payable without
presentment, demand, protest or other formalities of any kind, all of which are
hereby expressly waived by the Borrower.

                            X. YIELD PROTECTION, ETC.

         10.1     Capital Adequacy. If, after the date hereof, the adoption or
implementation of any applicable law, rule, or regulation regarding capital
adequacy (including, without limitation, any law, rule, or regulation
implementing the Basle Accord), or any change therein, or any change in the
interpretation or administration thereof by any central bank or other
governmental authority charged with the interpretation or administration
thereof, or compliance by the Bank (or its parent) or any Primary Participant
with any guideline, request, or directive regarding capital adequacy (whether or
not having the force of law) of any such central bank or other governmental
authority (including, without limitation, any guideline or other requirement
implementing the Basle Accord), has or would have the effect of reducing the
rate of return on such Person's capital as a consequence of its

                                       29

<PAGE>

obligations hereunder or the transactions contemplated hereby to a level below
that which such Person could have achieved but for such adoption,
implementation, change, or compliance (taking into consideration such Person's
policies with respect to capital adequacy) by an amount deemed by such Person to
be material, then such Person shall provide to the Borrower notice of such
matter, and from time to time thereafter within ten (10) Business Days after
demand by such Person, the Borrower shall pay to such Person such additional
amount or amounts as will compensate such Person for such reduction which is
incurred by such Person after the date of such Person's notice to the Borrower
under this Section 10.1. Notwithstanding the preceding sentence, upon Borrower's
receipt of such notice from such Person, Borrower may provide to such Person its
notice of prepayment in accordance with Sections 2.4 and 3.4 hereof. A
certificate of the Person claiming compensation under this Section and setting
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive, provided that the determination thereof is made on a reasonable
basis. In determining such amount or amounts, such Person may use any reasonable
averaging and attribution methods.

         10.2     General Indemnity. The Borrower shall indemnify the Bank, the
Primary Participants and the respective directors, officers, employees and
agents from and against any and all losses, claims, liabilities, damages,
attorneys' fees and disbursements, and other costs and expenses which the
indemnified party may at any time sustain or incur in connection with the
Borrower's use of loan proceeds; provided that the indemnified party shall not
have any right to be indemnified for its own gross negligence or willful
misconduct. All indemnities and all provisions relative to reimbursement to the
Bank and the Primary Participants of amounts sufficient to compensate any such
Person for the changes in capital adequacy requirements, including, but not
limited to, Section 10.1 hereof, shall survive the termination of this Agreement
and the payment of the Term Notes and the Revolving Notes.

                                XI. MISCELLANEOUS

         11.1     Entire Agreement. This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and may not be effectively amended, changed, modified or altered, except in
writing executed by all parties. Notwithstanding the foregoing, it is understood
that in the event the terms of the Term Notes or the Revolving Notes conflict
with the terms of this Agreement, the provisions of the Term Notes or Revolving
Notes, as applicable, shall prevail.

         11.2     Governing Law. The Credit Documents shall be governed by and
construed pursuant to the laws of the State of Nebraska.

         11.3     Notices. Until changed by written notice form one party hereto
to the other, all communications under the Credit Documents shall be in writing
and shall be telecopied, hand delivered or mailed by registered to the parties
as follows:

                                       30

<PAGE>

                  If to the Borrower:

                                    COMMERCIAL FEDERAL CORPORATION
                                    13220 California Street
                                    Omaha, Nebraska  68154
                                    Attn: Mr. David S. Fisher, Executive Vice
                                          President and CFO

                  If to the Bank:

                                    FIRST NATIONAL BANK OF OMAHA
                                    1620 Dodge Street, Stop 1196
                                    Omaha, Nebraska 68197
                                    Attn: Kevin Thompson, Second Vice President

         11.4     Headings. The captions and headings herein are for convenience
only and in no way define, limit or describe the scope or intent of any
provisions or sections of this Agreement.

         11.5     Counterparts. This Agreement may be executed in several
counterparts and such counterparts together shall constitute one and the same
instrument.

         11.6     Survival; Successors and Assigns. The covenants, agreements,
representations and warranties made herein, and in the certificates delivered
pursuant hereto, shall survive the execution and delivery to the Bank of this
Agreement and shall continue in full force and effect so long as the Term Notes,
the Revolving Notes or any obligation to the Bank under any of the Credit
Documents is outstanding and unpaid. Whenever in this Agreements any of the
parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party, and all covenants, promises and agreements
by or on behalf of the Borrower which are contained in this Agreement shall bind
the successors and assigns of the Borrower and shall inure to the benefit of,
the successors and assigns of, or Person participating with, the Bank.

         11.7     Severability. If any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity without invalidating
the remainder of such provision or the remaining provisions of this Agreement.

         11.8     Assignment. The Borrower may not assign its rights or
obligations hereunder and any assignment in contravention of the terms hereof
shall be void.

         11.9     Amendments. Any amendment, modification or supplement to this
Agreement must be in writing and must be signed by the parties hereto.

         11.10    Participations. The Borrower hereby acknowledges that the Bank
is assigning to the Primary Participants a participation in the Term Credit
Facility and the Term Notes. The Bank and each Primary Participant may, at their
sole election, participate their respective interests in the Revolving Notes and
the Term Notes to Secondary Participant provided, however, that the rights of

                                       31

<PAGE>

any Secondary Participant shall be enforceable solely by the Bank or Primary
Participant from whom its participation interest was granted.

         11.11 Waiver of Jury Trial. THE PARTIES TO THIS AGREEMENT HEREBY WAIVE
ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY DISPUTE OR CAUSE OF ACTION
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

         IN WITNESS WHEREOF, the Borrower and the Bank have caused this Loan
Agreement to be executed by their duly authorized corporate officers as of the
day and year first above written.

                                                COMMERCIAL FEDERAL CORPORATION

                                       By /s/ David S. Fisher
                                          --------------------------------------
                                              Title: Executive Vice President
                                                     and Chief Financial Officer

                                              FIRST NATIONAL BANK OF OMAHA

                                       By /s/ Kevin P. Thompson
                                          --------------------------------------
                                              Title: Second Vice President

NOTICE: A credit Agreement must be in writing to be enforceable under Nebraska
law. To protect you and us from any misunderstanding or disappointments, any
contract, promise, undertaking, or offer to forebear repayment of money or to
make any other financial accommodation in connection with this loan of money or
grant or extension of credit, or any amendment of, cancellation of, waiver of,
or substitution for any or all of the terms or provisions of any instrument or
document executed in connection with this loan of money or grant or extension of
credit, must be in writing to be effective.

                                                      INITIALED:

                                                      /s/ DSF
                                                      --------
                                                      Borrower

                                       32

<PAGE>

                      TERM CREDIT BUSINESS PROMISSORY NOTE

$94,000,000                                              Date: December 30, 2002

         For Value Received, the undersigned promises to pay on or before
December 31, 2007, to the order of First National Bank of Omaha, at its
headquarters office located at 1601 Dodge Street, Omaha, NE 68197 (the "Bank"),
or at such other place as the holder hereof may from time to time designate, the
principal sum of Ninety-Four Million Dollars ($94,000,000). The principal sum
shall become due and payable in twenty equal quarterly installments of
$2,350,000 with the first such installment due on March 31, 2003 and subsequent
installments due on the last day of the month of June, September, December and
March thereafter, with the balance of the principal amount of the term note due
and payable on the maturity date. TERMS NOT DEFINED HEREIN SHALL HAVE THE
MEANINGS SET FORTH IN THAT CERTAIN TERM AND REVOLVING CREDIT AGREEMENT DATED AS
OF DECEMBER 30, 2002 AMONG THE UNDERSIGNED AND THE BANK (the "Credit
Agreement"). Amounts available to be drawn under this Term Credit Business
Promissory Note shall be determined in accordance with the terms of the credit
agreement.

         The unpaid balance of this Note at any time shall be the total amount
advanced, plus interest accrued thereon and costs, expenses, and fees chargeable
hereunder, less the amount of payments made hereon by or for the undersigned,
which balance may be indorsed hereon from time to time by the holder hereof.

         Interest shall be charged on the unpaid principal balance of this Note
to the date of maturity on a daily basis for the actual number of days any
portion of the principal is outstanding, computed on the basis of a 360-day
year, at the floating rate announced from time to time by the Bank as its
"National Base Rate" minus one percent (1%) (the "Note Rate"). The National Bar
Rate is set by the Bank, solely in its discretion, to reflect generally the
rates charged by money center banks as their reference rates. Rates charged by
the Bank may be at above or below the National Base Rate, as determined by the
Bank as to each respective customer. Each change in the National Base Rate (or
any component thereof) shall become effective, without notice to the undersigned
(which notice is hereby expressly waived by the undersigned), on the effective
date of each such change. Should Bank, during the term of this Note, abolish or
abandon the practice of establishing a National Base Rate, then the National
Base Rate used during the remaining term of this Note shall be that interest
rate then the effect at Bank, which, from time to time, in the reasonable
judgment of Bank, most effectively approximates the original definition of the
"National Base Rate." The undersigned acknowledges that Bank may, from time to
time, extend credit to other persons at rates of interest varying from, and
having no relationship to, the National Base Rate. A certificate signed by an
officer of Bank shall be conclusive evidence of the National Base Rate at any
given time.

         Interest shall be computed on the basis of a 360--day year and shall be
payable on the due date of this Note quarterly commencing with the 31/st/ day of
March, 2003, until all principal and interest hereunder have been fully paid.

<PAGE>

         The undersigned acknowledges that the undersigned has agreed to the
rate of interest represented by (1) the Note Rate; (2) any compensating balance
requirement of Bank; and (3) any additional charges, costs, and fees arising out
of or related to the transaction of which this Note is a part, to the extent
deemed to be interest under applicable law.

         Upon default, all obligations under this Note (including principal,
interest, costs, and fees) shall bear interest, until paid in full at the Note
Rate plus a per annum rate equal to three and one half percent (3.5%).

         Each and every payment due under this Note shall be made in lawful
money of the United States and in immediately available funds, and when made
shall be first applied to accrued costs, expenses, and fees, if any, then to
interest due, and then to the reduction of the principal amount of this Note.

         No provision of this Note or any other aspect of the transaction of
which this Note is a part is intended to or shall require or permit the holder,
directly or indirectly, to take, receive, contract for, or reserve, in money,
goods, or things in action, or in any other way, any interest (including amounts
deemed by law to be interest, such amounts to then be deemed to be an addition
to the rate of interest agreed upon) in excess of the maximum rate of interest
permitted by applicable law in the state of Nebraska as of the date hereof. If
any such excess shall nevertheless be provided for, or be adjudicated by a court
of competent jurisdiction to be provided for, the undersigned shall not be
obligated to pay such excess but, if paid, then such excess shall be applied
against the unpaid principal balance of this Note or, to the extent that the
principal balance has been paid in full by reason of such application or
otherwise, such excess shall be remitted to the undersigned.

         The undersigned hereby agrees (1) to any and all extensions (including
extensions beyond the original term hereof) and renewals hereof, from time to
time, without notice, and that no such extension or renewal shall constitute or
be deemed a release of any obligation of the undersigned to the holder hereof;
(2) that any written modification, extension, or renewal hereof executed by the
undersigned shall constitute a representation and warranty of the undersigned
that the unpaid balance of principal, interest, and other sums owing hereunder
at the time of such modification, renewal, or extension are owed without
adjustment for any offset, counterclaim, or other defense of any kind by the
undersigned against Bank; (3) that the acceptance by the holder hereof of any
performance that does not comply strictly with the terms hereof shall be deemed
to be neither a waiver or bar of any right of said holder, nor a release of any
obligation of the undersigned to the holder hereof; (4) to offsets of any sums
or property owed to the undersigned by the holder hereof at any time; (5) that
the undersigned is and shall remain subject to the in personam, in rem, and
subject matter jurisdiction of the courts of Nebraska (including the Federal
District Court for the district of Nebraska for all purposes pertaining to this
instrument and all documents and instruments executed in connection herewith,
securing the same, or in any way pertaining hereto; (6) that no surety or
guarantor hereof shall be required to be joined in any action brought to enforce
this Note, and that the undersigned waives the right to require the joinder of
the undersigned in any action to enforce the liability of a surety or guarantor
hereof; (7) that this Note shall be governed by the laws of the state of
Nebraska applicable to the holder hereof upon demand any and all costs,
expenses, and fees (including reasonable attorney fees)

<PAGE>

incurred in enforcing or attempting to recover payment of the amounts due under
this Note, including negotiating, documenting, and otherwise pursuing or
consummating modifications, extensions, compositions, renewals, or other similar
transactions pertaining to this Note, irrespective of the existence of an event
of default, and including costs, expenses, and fees incurred before, after, or
irrespective of whether suit is commenced, and in the event suit is brought to
enforce payment hereof, such costs, expenses, and fees and all other issues in
such suit shall be determined by a court sitting without a jury.

         The undersigned authorizes Bank to furnish any information in its
possession, however acquired, concerning the undersigned (or any affiliate) to
any person or entity, for the purpose that Bank, in good faith and in its sole
discretion, believes to be proper, including without limitation, the disclosure
of information to an actual or prospective lender to the undersigned, any actual
or prospective participant in a loan between the undersigned and Bank, any
prospective purchaser of securities issued or to be issued by Bank, and, to the
extent permitted by law, any governmental body or regulatory agency, or in
connection with the actual or prospective transfer of all or a portion of this
Note to another financial institution.

         The undersigned represents and warrants that the indebtedness
represented by this Note is for commercial purposes only.

                                                 COMMERCIAL FEDERAL CORPORATION

                                                 By:____________________________
                                                 Its:___________________________

<PAGE>

                        REVOLVING CREDIT PROMISSORY NOTE

$10,000,000                                              Date: December 30, 2002

         For Value Received, the undersigned promises to pay on or before
December 29, 2003, to the order of First National Bank of Omaha, at its
headquarters office located in 1601 Dodge Street, Omaha, NE 68197 ("Bank"), or
at such other place as the holder hereof may from time to time designate, the
unpaid amount of all sums that have been advanced to or for the benefit of the
undersigned in accordance with the terms hereof and that certain Term and
Revolving Credit Agreement ("Credit Agreement") between the undersigned and
Bank, dated as of December 30, 2002. Advances evidenced by this Note shall be
made in accordance with the Credit Agreement. No request for an advance will be
honored if a default hereunder shall exceed the sum of Ten Million Dollars
($10,000,000). Advances pursuant to the Credit Agreement shall be made on a
revolving basis and subject to the provisions thereof, the undersigned may
borrow, prepay, and reborrow under the Credit Agreement from time to time, and
at any time prior to the due date of this Note. TERMS NOT DEFINED HEREIN SHALL
HAVE THE MEANINGS SET FORTH IN THAT CERTAIN TERM AND REVOLVING CREDIT AGREEMENT
DATED AS OF DECEMBER 30, 2002.

         The unpaid balance of this Note at any time shall be the total amount
advanced, plus interest accrued thereon and costs, expenses, and fees chargeable
hereunder, less the amount of payments made hereon by or for the undersigned,
which balance may be indorsed hereon from time to time by the holder hereof.

         Interest shall be charged on the unpaid principal balance of this Note
to the date of maturity on a daily basis for the actual number of days any
portion of the principal is outstanding, computed on the basis of a 360-day
year, at the floating rate announced from time to time by the Bank as its
"National Base Rate" minus one percent (1%) (the "Note Rate"). The National Bar
Rate is set by the Bank, solely in its discretion, to reflect generally the
rates charged by money center banks as their reference rates. Rates charged by
the Bank may be at above or below the National Base Rate, as determined by the
Bank as to each respective customer. Each change in the National Base Rate (or
any component thereof) shall become effective, without notice to the undersigned
(which notice is hereby expressly waived by the undersigned), on the effective
date of each such change. Should Bank, during the term of this Note, abolish or
abandon the practice of establishing a National Base Rate, then the National
Base Rate used during the remaining term of this Note shall be that interest
rate then the effect at Bank, which, from time to time, in the reasonable
judgment of Bank, most effectively approximates the original definition of the
"National Base Rate." The undersigned acknowledges that Bank may, from time to
time, extend credit to other persons at rates of interest varying from, and
having no relationship to, the National Base Rate. A certificate signed by an
officer of Bank shall be conclusive evidence of the National Base Rate at any
given time.

         Interest shall be computed on the basis of a 360--day year and shall be
payable on the due date of this Note quarterly commencing with the 31/st/ day of
March, 2003, until all principal and interest hereunder have been fully paid.

<PAGE>

         The undersigned acknowledges that the undersigned has agreed to the
rate of interest represented by (1) the Note Rate; (2) any compensating balance
requirement of Bank; and (3) any additional charges, costs, and fees arising out
of or related to the transaction of which this Note is a part, to the extent
deemed to be interest under applicable law.

         Upon default, all obligations under this Note (including principal,
interest, costs, and fees) shall bear interest, until paid in full at the Note
Rate plus a per annum rate equal to three and one half percent (3.5%).

         Each and every payment due under this Note shall be made in lawful
money of the United States and in immediately available funds, and when made
shall be first applied to accrued costs, expenses, and fees, if any, then to
interest due, and then to the reduction of the principal amount of this Note.

         No provision of this Note or any other aspect of the transaction of
which this Note is a part is intended to or shall require or permit the holder,
directly or indirectly, to take, receive, contract for, or reserve, in money,
goods, or things in action, or in any other way, any interest (including amounts
deemed by law to be interest, such amounts to then be deemed to be an addition
to the rate of interest agreed upon) in excess of the maximum rate of interest
permitted by applicable law in the state of Nebraska as of the date hereof. If
any such excess shall nevertheless be provided for, or be adjudicated by a court
of competent jurisdiction to be provided for, the undersigned shall not be
obligated to pay such excess but, if paid, then such excess shall be applied
against the unpaid principal balance of this Note or, to the extent that the
principal balance has been paid in full by reason of such application or
otherwise, such excess shall be remitted to the undersigned.

         The undersigned hereby agrees (1) to any and all extensions (including
extensions beyond the original term hereof) and renewals hereof, from time to
time, without notice, and that no such extension or renewal shall constitute or
be deemed a release of any obligation of the undersigned to the holder hereof;
(2) that any written modification, extension, or renewal hereof executed by the
undersigned shall constitute a representation and warranty of the undersigned
that the unpaid balance of principal, interest, and other sums owing hereunder
at the time of such modification, renewal, or extension are owed without
adjustment for any offset, counterclaim, or other defense of any kind by the
undersigned against Bank; (3) that the acceptance by the holder hereof of any
performance that does not comply strictly with the terms hereof shall be deemed
to be neither a waiver or bar of any right of said holder, nor a release of any
obligation of the undersigned to the holder hereof; (4) to offsets of any sums
or property owed to the undersigned by the holder hereof at any time; (5) that
the undersigned is and shall remain subject to the in personam, in rem, and
subject matter jurisdiction of the courts of Nebraska (including the Federal
District Court for the district of Nebraska for all purposes pertaining to this
instrument and all documents and instruments executed in connection herewith,
securing the same, or in any way pertaining hereto; (6) that no surety or
guarantor hereof shall be required to be joined in any action brought to enforce
this Note, and that the undersigned waives the right to require the joinder of
the undersigned in any action to enforce the liability of a surety or guarantor
hereof; (7) that this Note shall be governed by the laws of the state of
Nebraska applicable to the holder

<PAGE>

hereof upon demand any and all costs, expenses, and fees (including reasonable
attorney fees) incurred in enforcing or attempting to recover payment of the
amounts due under this Note, including negotiating, documenting, and otherwise
pursuing or consummating modifications, extensions, compositions, renewals, or
other similar transactions pertaining to this Note, irrespective of the
existence of an event of default, and including costs, expenses, and fees
incurred before, after, or irrespective of whether suit is commenced, and in the
event suit is brought to enforce payment hereof, such costs, expenses, and fees
and all other issues in such suit shall be determined by a court sitting without
a jury.

         The undersigned authorizes Bank to furnish any information in its
possession, however acquired, concerning the undersigned (or any affiliate) to
any person or entity, for the purpose that Bank, in good faith and in its sole
discretion, believes to be proper, including without limitation, the disclosure
of information to an actual or prospective lender to the undersigned, any actual
or prospective participant in a loan between the undersigned and Bank, any
prospective purchaser of securities issued or to be issued by Bank, and, to the
extent permitted by law, any governmental body or regulatory agency, or in
connection with the actual or prospective transfer of all or a portion of this
Note to another financial institution.

         The undersigned represents and warrants that the indebtedness
represented by this Note is for commercial purposes only.

                                                  COMMERCIAL FEDERAL CORPORATION

                                                  By:___________________________
                                                  Its:__________________________<PAGE>

                                                                   EXHIBIT 10.01

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

     This Agreement ("Agreement") dated this 13th day of November, 2002 between
Choice Hotels International, Inc. ("Employer"), a Delaware corporation with
principal offices at 10750 Columbia Pike, Silver Spring, Maryland 20901, and
Charles A. Ledsinger ("Employee"), amends and restates that employment agreement
dated July 31, 1998 and sets forth the terms and conditions governing the
employment relationship between Employee and Employer.

     1.   Employment. During the term of this Agreement, as hereinafter defined,
Employer hereby employs Employee as President and Chief Executive Officer
("CEO"). Employee hereby accepts such employment upon the terms and conditions
hereinafter set forth and agrees to faithfully and to the best of his ability
perform such duties as may be from time to time assigned by Employer's Board of
Directors, such duties to be rendered at the principal office of Employer,
subject to reasonable travel. The Employer shall assign to Employee only those
duties consistent with his position as President and CEO. The Employee, in his
position as President and CEO, shall report directly to the Employer's Board of
Directors and all senior executives of the Employer shall report either directly
to Employee or indirectly through other senior executives. Employee also agrees
to perform his duties in accordance with policies established by Employer's
Board of Directors, which may be changed from time to time. During the term of
this Agreement, Employee shall be nominated by the Board of Directors for
re-election to the Employer's Board of Directors as a Class III director.

     2.   Term. Subject to the provisions for termination hereinafter provided,
the term of this Agreement shall begin on November 13, 2002 ("Effective Date")
and shall terminate four (4) years thereafter (the "Termination Date"). The
Agreement shall automatically be extended for successive one-year terms unless
either party gives written notice no less than 270 days prior to the Termination
Date that it elects not to extend the Termination Date.

     3.   Compensation. For all services rendered by Employee under this
Agreement during the term thereof, Employer shall pay Employee the following
compensation:

          (a)  Salary. A base salary of Six Hundred Fourteen Thousand Eight
          Hundred Dollars ($614,800) per annum payable in equal bi-weekly
          installments. Such salary shall be reviewed by the Compensation
          Committee of the Board of Directors of Employer on the next annual
          review of officers and each annual review thereafter and may be
          increased at the discretion of Employer.

          (b)  Incentive Bonus. Employee shall have the opportunity to earn a
          target bonus of Sixty-Five Percent (65%) per annum of the base salary
          set forth in subparagraph 3(a) above in Employer's bonus plans as
          adopted from time to time by Employer's Board of Directors.

<PAGE>

          (c)  Restricted Stock. At the Effective Date, Employer shall issue to
          Employee 100,000 restricted shares of Choice Hotels common stock
          ("Common Stock"). The restrictions on such shares shall lapse upon
          vesting, which shall occur in five (5) equal annual installments
          beginning one year from the Effective Date; provided, however, vesting
          of any then unvested shares shall accelerate and shall occur
          immediately upon the death, Constructive Termination (as defined in
          Section 7(c) below) or Change of Control Termination (as defined in
          Section 11(d)) of Employee.

          (d)  Automobile. Employer shall provide Employee with an allowance for
          automobile expenses of $1,100 per month beginning on the Effective
          Date.

          (e)  Club Membership. Employer shall provide Employee with an
          appropriate corporate membership, including initial and annual fees,
          at a dining and/or recreational club at the choice of Employee for the
          purpose of business entertainment.

          (f)  Stock Awards. Employee shall be eligible to receive annual awards
          under the Choice Hotels International, Inc. Long Term Incentive Plan
          ("LTIP"), or similar plan, to purchase Common Stock in accordance with
          the policy of the Choice Hotels Board as in effect from time to time.

          (g)  SERP and Deferred Compensation Plan. At the Commencement Date,
          Employee shall participate in the Choice Hotels International, Inc.
          Supplemental Executive Retirement Plan ("SERP") and the Choice Hotels
          International Executive Deferred Compensation Plan approved September
          25, 2002 ("Deferred Comp Plan"). As applied to the Employee:

            .  Section 1.10 of the SERP shall be amended by adding the following
               at the end thereto:

               "From and after attaining age 55, the Participant's Years of
               Service shall be deemed to be his actual Years of Service plus 10
               years";

            .  For purposes of Section 5.1 of the Deferred Comp Plan, Employee
               upon attaining age fifty-five, shall be deemed to have ten Years
               of Services.

          (h)  Other Benefits. Employee shall, when eligible, be entitled to
          participate in all other fringe benefits, including vacation policy,
          generally accorded the most senior executive officers of Employer as
          are in effect from time to time on the same basis as such other senior
          executive officers.

     4.   Extent of Services. Employee shall devote his full professional time,
attention, and energies to the business of Employer, and shall not during the
term of this Agreement be

                                        2

<PAGE>

engaged in any other business activity whether or not such business activity is
pursued for gain, profit, or other pecuniary advantage; but the foregoing shall
not be construed as preventing Employee from investing his assets in (i) the
securities of public companies, or (ii) the securities of private companies or
limited partnerships outside the lodging industry, if such holdings are passive
investments of one percent (1%) or less of outstanding securities and Employee
does not hold positions of officer, employee or general partner. Employee shall
be permitted to serve as a director of companies outside of the lodging industry
so long as such service does not inhibit his performance of services to the
Employer. Employee shall not be permitted to serve as a director of any company
within the lodging industry unless (i) the Corporate Compliance officer of the
Employer has determined that there is no conflict of interest and (ii) such
service does not inhibit his performance of services to the Employer. Employee
warrants and represents that he has no contracts or obligations to others which
would materially inhibit the performance of his services under this Agreement.

     5.   Disclosure and Use of Confidential Information; Non-Compete.

     (a) Employee recognizes and acknowledges that information about Employer's
and affiliates' present and prospective clients, customers, franchises,
management contracts, acquisitions and personnel, as they may exist from time to
time, and to the extent it has not been otherwise disclosed, is a valuable,
special and unique asset of Employer's business ("Confidential Information").
Throughout the term of this Agreement and for a period of two (2) years after
its termination or expiration for whatever cause or reason except as required by
applicable law, Employee shall not directly or indirectly, or cause others to,
make use of or disclose to others any Confidential Information. Notwithstanding
the foregoing, Confidential Information does not include information which (i)
was or becomes generally available to the public other than as a result of a
disclosure by Employee or (ii) is developed by Employee or on his behalf without
reliance on information furnished to Employee by Employer or its agents.

     (b) For a period of two years after the expiration or termination of the
Employee's employment with the Employer, the Employee will not, except with the
prior written consent of the Board, directly or indirectly, own, manage,
operate, join, control, finance or participate in the ownership, management,
operation, control or financing of, or be connected as an officer, director,
employee, partner, principal, agent, representative, consultant or otherwise
with, or use or permit Employee's name to be used in connection with, any
business or enterprise which is engaged in the mid-market or economy hotel
franchising business or any other line of business in which the Employer is
materially engaged at the time of termination ("Competing Business"); provided,
however, the foregoing shall not be construed as preventing Employee from (i)
investing his assets in (A) the securities of any Competing Business that is a
public company or (B) the securities of any Competing Business that is a
privately-held corporation, limited partnership, limited liability company or
other business entity, if such holdings are passive investments of one percent
(1%) or less of such entity's outstanding securities or (ii) becoming an
employee, agent or representative of, consultant to, or otherwise connected with
any business entity that has multiple lines of business, some of which are not a
Competing Business, if

                                        3

<PAGE>

Employee's services for such entity are restricted so that he will provide no
services or other assistance in support of, and will not otherwise be involved
with, any such Competing Business conducted by such entity.

     (c) During the term of this Agreement and for a period of two years after
its expiration or termination, Employee agrees not to solicit for employment,
directly or indirectly, on his behalf or on behalf of any person or entity,
other than on behalf of Employer, any person employed by Employer, or its
subsidiaries or affiliates during such period, unless Employer consents in
writing. Additionally, during such period, Employee agrees not to solicit for
business nor to solicit to end their relationship with Employer any person or
entity who was a franchisee of Employer (or its subsidiaries) during the Term of
this Agreement; provided, however, the foregoing shall not be construed as
preventing Employee from soliciting business from any such franchisee that is
for a line of business other than any Competing Business.

     (d) The Employee acknowledges and agrees that the restrictions contained in
this Section are reasonable and necessary to protect and preserve the legitimate
interests, properties, goodwill and business of the Employer, that the Employer
would not have entered into this Agreement in the absence of such restrictions
and that irreparable injury will be suffered by the Employer should the Employee
breach any of those provisions. Employee represents and acknowledges that (i)
the Employee has been advised by the Employer to consult Employee's own legal
counsel in respect of this Agreement, and (ii) that the Employee has had full
opportunity, prior to execution of this Agreement, to review thoroughly this
Agreement with the Employee's counsel. The Employee further acknowledges and
agrees that a breach of any of the restrictions in this Section cannot be
adequately compensated by monetary damages and that the Employer shall be
entitled to seek preliminary and permanent injunctive relief, without the
necessity of proving actual damages, as well as any other appropriate equitable,
which rights shall be cumulative and in addition to any other rights or remedies
to which the Employer may be entitled. In the event that any of the provisions
of this Section should ever be adjudicated to exceed the time, geographic,
service, or other limitations permitted by applicable law in any jurisdiction,
it is the intention of the parties that the provision shall be amended to the
extent of the maximum time, geographic, service, or other limitations permitted
by applicable law, that such amendment shall apply only within the jurisdiction
of the court that made such adjudication and that the provision otherwise be
enforced to the maximum extent permitted by law.

     6.   Notices. Any notice, request or demand required or permitted to be
given under this Agreement shall be in writing, and shall be delivered
personally to the recipient or, if sent by certified or registered mail or
overnight courier service to his residence in the case of Employee, or to its
principal office in the case of the Employer, return receipt requested. Such
notice shall be deemed given when delivered if personally delivered or when
actually received if sent certified or registered mail or overnight courier.

     7.   Constructive Termination.

                                        4

<PAGE>

     (a) Nothing contained in this Agreement is intended to nor shall be
construed to abrogate, limit or affect the powers, rights and privileges of the
Board of Directors or stockholders to remove Employee from the positions set
forth in Section 1, with or without Cause (as defined in Section 10 below),
during the term of this Agreement or to elect someone other than Employee to
those positions, as provided by law and the By-Laws of Employer.

     (b) If Employee is Constructively Terminated (as defined in Section 7(c)
below), it is expressly understood and agreed that Employee's rights under this
Agreement shall in no way be prejudiced. Accordingly, Employee shall be entitled
to receive all forms of compensation referred to in Section 3 above through the
expiration of the term specified in Section 2, including bonuses (calculated
based only on the actual payout of the EPS portion of the bonus as all
Employer's officers receive in a given year) but excluding ungranted stock
options. Additionally, all unvested Restricted Stock and stock options then held
by Employee shall become immediately fully vested. From and after the date of
Constructive Termination, Employee shall have no further obligation to provide
any services to Employer under this Agreement, and shall not be required to
mitigate damages but nevertheless shall be entitled in his sole discretion to
pursue other employment. If Employee chooses to pursue and accept other
employment after Constructive Termination, Employer shall be entitled to receive
as offset, and thereby reduce its payment, the amount received by Employee from
any other active employment. As a condition to Employee receiving his
compensation from Employer, Employee agrees to permit verification of his
employment records and Federal income tax returns by an independent attorney or
accountant, selected by Employer but reasonably acceptable to Employee, who
agrees to preserve the confidentiality of the information disclosed by Employee
except to the extent required to permit Employer to verify the amount received
by Employee from other active employment. Employer shall receive credit for
unemployment insurance benefits, social security insurance or like amounts
actually received by Employee.

     (c) For purposes of this Agreement, "Constructively Terminated" shall mean
(i) Employer's removal or termination of Employee other than in accordance with
Section 10, (ii) failure of the Employer to place Employee's name in nomination
for re-election to the Employer's Board, (iii) assignment of duties by the
Employer inconsistent with Section 1, (iv) a decrease in Employee's compensation
or benefits (unless a similar decrease is imposed on all senior executives), (v)
a change in Employee's title or the line of reporting set forth in Section 1,
(vi) a significant reduction in the scope of Employee's authority, position,
duties or responsibilities, (vii) a significant change in Employer's annual
bonus program which adversely affects Employee, or (viii) any other material
breach of this Agreement by Employer, provided Employer shall be given fourteen
(14) days advance written notice of such claim of material breach, which written
notice shall specify in reasonable detail the grounds for such claim of material
breach, and "Constructive Termination" shall mean the occurrence of the
foregoing. Except in the case of bad faith, Employer shall have an opportunity
to cure the basis for Constructive Termination during the fourteen (14) day
period after written notice. If Employer fails to cure the material breach
within such fourteen (14) day period, Employee shall be Constructively
Terminated as of the last day of such fourteen (14) day period.

                                        5

<PAGE>

     8.   Waiver of Breach. The waiver of either party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach.

     9.   Assignment. The rights and obligations of Employer under this
Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of Employer. The obligations of Employee hereunder may not be
assigned or delegated.

     10.  Termination of Agreement. This Agreement shall terminate upon the
following events and conditions:

     (a)  Upon expiration of its term;

     (b)  For Cause, which means Employee's gross negligence, willful
     misconduct, willful nonfeasance, material breach of this Agreement,
     conviction following final disposition of any available appeal of a felony,
     or pleading guilty or no contest to a felony. Employee shall be entitled to
     fourteen (14) days advance written notice of termination, except where the
     basis for termination constitutes willful conduct on the part of Employee
     involving dishonesty or bad faith, in which case the termination shall be
     effective upon the sending of notice. Such written notice shall specify in
     reasonable detail the grounds for Cause and Employee shall have an
     opportunity to contest or cure the basis for termination during the
     fourteen (14) day period after written notice.

     (c)  Subject to state and federal laws, if Employee is unable to perform
     the essential functions of the services described herein, after reasonable
     accommodation, for more than 180 days (whether or not consecutive) in any
     period of 365 consecutive days, Employer shall have the right to terminate
     this Agreement by written notice to Employee. In the event of such
     termination, all non-vested stock option and other non-vested obligations
     of Employer to Employee pursuant to this Agreement shall terminate.

     (d)  In the event of Employee's death during the term of this Agreement,
     the Agreement shall terminate as of the date thereof.

     (e)  Upon voluntary resignation of Employee not due to Constructive
     Termination, so long as Employee has given Employer one hundred eighty
     (180) days prior written notice of such resignation.

     11.  Change of Control Severance.

     (a)  If, within twelve (12) months after a Change in Control, as defined in
     Section 11(c), there occurs a Change of Control Termination, as defined in
     Section 11(d), Employee may elect to receive as severance compensation
     either (i) the amount of salary and bonuses payable to him under this
     Agreement through the end of the term, such

                                        6

<PAGE>

     compensation to be paid and to be subject to offset as provided n Section
     7(b), or (ii) a severance payment in an amount equal to 250% of his base
     salary at the rate in effect at the time of termination plus 250% of the
     amount of any full year bonus awarded to Employee for the year immediately
     preceding the Change of Control (or the maximum target bonus if no bonus
     was awarded in the prior year). Employee may make this election by giving
     written notice to the Employer no later than sixty (60) days after the date
     of the date of employment termination. If Employee makes this election, the
     Employer shall pay the severance payment to Employee no later than thirty
     (30) days after the date on which Employee gives notice of such election.
     Regardless of which alternative form of severance compensation is elected
     by Employee, all unvested Restricted Stock and stock options then held by
     Employee shall automatically become fully vested as of the date of the
     Change of Control Termination.

     (b)  Employee's right to receive the benefits described in Section 11(a)
     shall be conditioned upon Employee executing Employer's standard release
     agreement in which Employee releases all claims against Employer.

     (c)  A Change in Control of the Employer shall occur upon the happening of
     the earliest to occur of the following:

          1. Any "person" as such term is used in Sections 13(d) and 14(d) of
     the Securities Exchange Act of 1934, as amended (other than (i) the
     Employer, (ii) any trustee or other fiduciary holding securities under an
     employee benefit plan of the Employer, (iii) any corporations owned,
     directly or indirectly, by the stockholders of the Employer in
     substantially the same proportions as their ownership of stock, (iv)
     Stewart Bainum, his wife, their lineal descendants and their spouses (so
     long as they remain spouses) and the estate of any of the foregoing
     persons, and any partnership, trust, corporation or other entity to the
     extent shares of common stock (or their equivalent) are considered to be
     beneficially owned by any of the persons or estates referred to in the
     foregoing provisions of this subsection 11(b) or any transferee thereof, or
     (v) the Baron Entities, unless such entities, in the aggregate,
     beneficially own more than 19,715,000 shares of the Employer's common
     stock) becomes the "beneficial owner" (as defined in Rule 13d-3 under the
     Exchange Act), directly or indirectly, of securities of the Employer
     representing 33% or more of the combined voting power of the Employer's
     then outstanding voting securities.

          2. Individuals constituting the Board on the Effective Date and the
     successors of such individuals ("Continuing Directors") cease to constitute
     a majority of the Board. For this purpose, a director shall be a successor
     if and only if he or she was nominated by a Board (or a Nominating
     Committee thereof) on which individuals constituting the Board on the
     Effective Date and their successors (determined by prior application of
     this sentence) constituted a majority.

                                        7

<PAGE>

          3. The stockholders of the Employer approve a plan of merger or
     consolidation ("Combination") with any other corporation or legal person,
     other than a Combination which would result in stockholders of the Employer
     immediately prior to the Combination owning, immediately thereafter, more
     than sixty-five percent (65%) of the combined voting power of either the
     surviving entity or the entity owning directly or indirectly all of the
     common stock, or its equivalent, of the surviving entity; provided,
     however, that if stockholder approval is not required for such Combination,
     the Change in Control shall occur upon the consummation of such
     Combination.

          4. The stockholders of the Employer approve a plan of complete
     liquidation of the Employer or an agreement for the sale or disposition by
     the Employer of all or substantially all of the Employer's stock and/or
     assets, or accept a tender offer for substantially all of the Employer's
     stock (or any transaction having a similar effect); provided, however, that
     if stockholder approval is not required for such transaction, the Change in
     Control shall occur upon consummation of such transaction.

     For purposes of this Section 11(c), Baron Entities shall mean Baron Capital
     Group, Inc., BAMCO, Inc., Baron Capital Management, Inc., Baron Asset Fund
     and Ronald Baron.

          (d)  A Change of Control Termination shall mean and include the
     termination of Employee's employment with Employer at any time during the
     twelve (12) month period after the Change of Control if such termination is
     (i) by the Employer, (ii) a Constructive Termination or (iii) by the
     resignation of Employee, in his discretion, upon written notice to Employer
     given no less than sixty (60) days prior to the date of termination.

     12.  Excise Taxes.

          (a)  Anything in this Agreement to the contrary notwithstanding, if it
shall be determined that any payment or distribution to the Employee or for the
Employee's benefit (whether paid or payable or distributed or distributable)
pursuant to the terms of this Agreement or otherwise (the "Payment") would be
subject to the excise tax imposed by section 4999 of the Internal Revenue Code
(the "Excise Tax"), then the Employee shall be entitled to receive from Employer
an additional payment (the "Gross-Up Payment") in an amount such that the net
amount of the Payment and the Gross-Up Payment retained by the Employee after
the calculation and deduction of all Excise Taxes (including any interest or
penalties imposed with respect to such taxes) on the payment and all federal,
state and local income tax, employment tax and Excise Tax (including any
interest or penalties imposed with respect to such taxes) on the Gross-Up
Payment provided for in this Section, and taking into account any lost or
reduced tax deductions on account of the Gross-Up Payment, shall be equal to the
Payment;

                                        8

<PAGE>

          (b)  All determinations required to be made under this Section,
including whether and when the Gross-Up Payment is required and the amount of
such Gross-Up Payment, and the assumptions to be utilized in arriving at such
determinations shall be made by Accountants which Employer shall request provide
the Employee and Employer with detailed supporting calculations with respect to
such Gross-Up Payment at the time the Employee is entitled to receive the
Payment. For the purposes of this Section, the "Accountants" shall mean
Employer's independent certified public accountants. All fees and expenses of
the Accountants shall be borne solely by Employer. For the purposes of
determining whether any of the Payments will be subject to the Excise Tax and
the amount of such Excise Tax, such Payments will be treated as "parachute
payments" within the meaning of section 280G of the Code, and all "parachute
payments" in excess of the "base amount" (as defined under section 280G(b)(3) of
the Code) shall be treated as subject to the excise Tax, unless and except to
the extent that in the opinion of the Accountants such Payments (in whole or in
part) either do not constitute "parachute payments" or represent reasonable
compensation for services actually rendered (within the meaning of section
280G(b)(4) of the Code) in excess of the "base amount," or such "parachute
payments" are otherwise not subject to such Excise Tax; for purposes of
determining the amount of the Gross-Up Payment the Employee shall be deemed to
pay Federal income taxes at the highest applicable marginal rate of Federal
income taxation for the calendar year in which the Gross-Up Payment is to be
made and to pay any applicable state and local income taxes at the highest
applicable marginal rate of taxation for the calendar year in which the Gross-Up
Payment is to be made, net of the maximum reduction in Federal income taxes
which could be obtained from the deduction of such state or local taxes if paid
in such year (determined without regard to limitations on deductions based upon
the amount of the Employee's adjusted gross income); and to have otherwise
allowable deductions for Federal, state and local income tax purposes at least
equal to those disallowed because of the inclusion of the Gross-Up Payment in
the Employee's adjusted gross income. Any Gross-Up Payment with respect to any
Payment shall be paid by Employer at the time the Employee is entitled to
receive the Payment. Any determination by the Accountants shall be binding upon
Employer and the Employee. As a result of uncertainty in the application of
section 4999 of the Code at the time of the initial determination by the
Accountants hereunder, it is possible that the Gross-Up Payment made will have
been an amount less than Employer should have paid pursuant to this Section (the
"Underpayment"). In the event that Employer exhausts its remedies and the
Employee is required to make a payment of any Excise Tax, the Underpayment shall
be promptly paid by Employer to or for the Employee's benefit.

     13.  Legal Fees. Employer shall reimburse the Employee for all reasonable
attorneys fees incurred in connection with the negotiation and execution of this
Agreement.

     14.  Condition to Effectiveness. This Agreement shall not be effective
until approved by Employer's Board of Directors.

     15.  Entire Agreement. This instrument contains the entire agreement of the
parties. It

                                        9

<PAGE>

may be changed only by an agreement in writing signed by the party against whom
enforcement of any waiver, change, modification, extension or discharge is
sought. This Agreement supersedes all previous agreements between the parties
with respect to the matters contained herein. This Agreement shall be governed
by the laws of the State of Maryland, and any disputes arising out of or
relating to this Agreement shall be brought and heard in any court of competent
jurisdiction in the State of Maryland.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first set forth above.

                                         Employer:

                                         CHOICE HOTELS INTERNATIONAL, INC.

                                         By:
                                            ---------------------------------
                                               Michael J. DeSantis
                                               Senior Vice President

                                         Employee:

                                         ------------------------------------
                                         Charles A. Ledsinger

                                       10

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