On December 22, 2014, Great Lakes Aviation, Ltd. entered into the loan agreement with Callidus Capital Corporation (the lender). Pursuant to the loan agreement, the lender agreed to make available to the company: (i) a $25,000,000 single advance term loan facility, (ii) a revolving loan facility with availability of up to $6,000,000 and (iii) a second revolving loan facility with availability of up to $3,000,000. The $25,000,000 term loan was disbursed at closing, and substantially all of its proceeds were used to pay all outstanding borrowings, fees and expenses under the credit agreement dated November 6, 2011 as amended between the company and Crystal Financial LLC and other lenders.

The revolving loan facilities may be used for the company's working capital needs. The loans under the loan agreement mature on December 22, 2017 at which time all outstanding principal balances will be due and payable. No amortization payments will be required until the maturity date.

Outstanding principal under the term loan and revolving loans will bear interest at a rate of 14% per year. In addition, the company paid a 1% facility fee at closing and will be required to pay a 1.25% facility fee on the maturity date or in an event of default. The company will also be assessed a 1% unused line fee.

In connection with the loan agreement, the company granted first-ranking security interests to the lender covering substantially all of the assets of the business. The loan agreement contains certain affirmative and negative covenants which are usual and customary with asset based loans, and the company agreed to maintain a fixed charge coverage ratio.