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FIRST AMENDMENT TO AMENDED AND RESTATED INTERCREDITOR AGREEMENT

Intercreditor Agreement

FIRST AMENDMENT
                                       TO
                  AMENDED AND RESTATED INTERCREDITOR AGREEMENT You are currently viewing:
This Intercreditor Agreement involves

ATLANTIC EXPRESS TRANSPORTATION CORP | WACHOVIA BANK,NATIONAL ASSOCIATION

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Title: FIRST AMENDMENT TO AMENDED AND RESTATED INTERCREDITOR AGREEMENT
Governing Law: New York     Date: 10/16/2006

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                                                                    Exhibit 10.2
 
                                 FIRST AMENDMENT
                                       TO
                  AMENDED AND RESTATED INTERCREDITOR AGREEMENT
                  --------------------------------------------
 
     THIS FIRST AMENDMENT TO AMENDED AND RESTATED INTERCREDITOR AGREEMENT (this
"First Amendment") dated as of October 12, 2006 is by and among WACHOVIA BANK,
NATIONAL ASSOCIATION, a national banking association, as successor by merger to
Congress Financial Corporation, a Delaware corporation, as Agent (in such
capacity, together with its successors and assigns, if any, the "Revolving Loan
Agent") for the Revolving Loan Lenders, THE BANK OF NEW YORK, a New York banking
corporation, as collateral agent (in such capacity, together with its successors
and assigns, if any, the "Noteholder Collateral Agent") for the Trustee and the
Noteholders, and AIRLIE OPPORTUNITY CAPITAL MANAGEMENT, L.P., as collateral
agent (in such capacity, together with its successors and assigns, if any, the
"Third Priority Collateral Agent") for the Third Priority Noteholders. The
Revolving Loan Agent, Noteholder Collateral Agent and Third Priority Collateral
Agent are sometimes individually referred to herein as a "Creditor" and
collectively as "Creditors."
 
                              W I T N E S S E T H:
                              -------------------
 
     WHEREAS, the Revolving Loan Agent and Revolving Loan Lenders have entered
into a Second Amended and Restated Loan and Security Agreement, dated as of
April 22, 2004, as heretofore amended (as amended, supplemented, and restated or
otherwise modified from time to time, the "Loan Agreement"), among the Debtors,
the Revolving Loan Agent and the Revolving Loan Lenders parties thereto,
pursuant to which Debtors may borrow and, subject to the terms and conditions
specified therein, the Revolving Loan Lenders will from time to time make loans
in an aggregate principal amount of up to the maximum amount specified therein
and arrange for letter of credit accommodations in an amount of up to the
maximum amount specified therein;
 
     WHEREAS, the obligations of Debtors to Revolving Loan Agent and Revolving
Loan Lenders are secured by certain assets and properties of the Debtors as set
forth in the Loan Agreement pursuant to which the Debtors granted to Revolving
Loan Agent for the benefit of the Revolving Loan Lenders a security interest in
and lien upon the Collateral (as defined in the Loan Agreement);
 
     WHEREAS, the Debtors, the Noteholder Collateral Agent and Noteholders
entered into an Indenture, dated as of April 22, 2004, as heretofore amended (as
amended, supplemented, restated or otherwise modified from time to time, the
"Note Indenture"), with the Noteholder Collateral Agent and The Bank of New
York, in its capacity as trustee (in such capacity, together with its successors
and assigns, if any, the "Trustee"), governing the rights and duties of Debtors
thereunder and under the 12% Senior Secured Notes due 2008 and the Senior
Secured Floating Rate Notes due 2008 in the original aggregate principal amount
of $115,000,000;
 
     WHEREAS, the obligations of Debtors to the Noteholders are secured by
certain assets and properties of the Debtors as set forth in the Indenture and
the Security Agreement, dated as
 
 
 
 
of April 22, 2004, as heretofore amended (as amended, supplemented, restated or
otherwise modified from time to time, the "Security Agreement"), pursuant to
which the Debtors granted to Noteholder Collateral Agent for the pro-rata
benefit of the Noteholders a security interest in and lien upon the Collateral
(as defined in the Security Agreement);
 
     WHEREAS the parties hereto are parties to the Amended and Restated
Intercreditor Agreement dated as of March 3, 2005 (the "Intercreditor
Agreement");
 
     WHEREAS, pursuant to the Third Supplemental Indenture, dated as of March
31, 2006, among the Debtors, the Noteholder Collateral Agent and the Trustee
(the "Third Supplemental Indenture"), the Note Indenture was amended among other
things to modify the definition of the term "Permitted Indebtedness" to allow
the amount of secured debt permitted to be incurred pursuant to the Loan
Agreement to be increased from $20,000,000 to $30,000,000;
 
     WHEREAS, the Note Indenture, as amended by the Third Supplemental
Indenture, provides that the Revolving Loan Lenders shall have a Permitted Prior
Lien (as defined in the Note Indenture) on the Collateral (as defined in the
Note Indenture) securing the debt under the Loan Agreement, including any
increased amount of available borrowings thereunder;
 
     WHEREAS, pursuant to Amendment No 13 to Second Amended and Restated Loan
Agreement, dated of even date herewith, among Debtors, Revolving Loan Agent and
Revolving Loan Lenders ("Amendment No. 13 to Loan Agreement"), the Loan
Agreement was amended among other things to permit the Debtors to borrow from
the Revolving Loan Lenders up to an additional $10,000,000 of secured debt
thereunder; and
 
     WHEREAS Section 4.1 of the Intercreditor Agreement permits the parties
thereto to amend the Intercreditor Agreement in writing;
 
     WHEREAS, it is the intention of the Creditors that the Intercreditor
Agreement be amended to reflect the amendment to the Note Indenture set forth in
the Third Supplemental Indenture and in addition to reflect the amendment to the
Loan Agreement set forth in Amendment No. 13 to Loan Agreement;
 
     NOW THEREFORE, in consideration of the mutual benefits accruing to
Creditors hereunder and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto do hereby agree
as follows:
 
     1. DEFINITIONS
        -----------
 
         Except as otherwise defined herein, capitalized terms used herein are
used with the same meaning assigned thereto in the Intercreditor Agreement.
 
     2. AMENDMENT
        ---------
 
     Section 1.27 of the Intercreditor Agreement is hereby amended to increase
the reference to $23,000,000 in such section by $10,000,000 to $33,000,000, so
that, as amended hereby, such section reads in its entirety as follows:
 
 
 
 
     1.27 "Revolving Loan Priority Amount" shall mean the sum of (a) (i) the
outstanding principal amount of Revolving Loan Debt not to exceed $33,000,000 in
the aggregate, plus (ii) the aggregate amount of Letter of Credit Accommodations
and LC Advances (as such terms are defined in the Revolving Loan Agreements) in
an amount not to exceed $10,000,000, plus (iii) the outstanding principal amount
of any other Revolving Loan Debt (in excess of the Revolving Loan Debt
referenced in clause (i) above) to the extent that such Revolving Loan Debt is
permitted under Section 4.12 of the Indenture, and clause (14) of the definition
of "Permitted Indebtedness" contained therein, plus (b) accrued but unpaid
interest on and fees and charges payable in connection with the Revolving Loan
Debt set forth in clause (a) above (including, without limitation, interest and
fees accruing during any Insolvency Proceeding whether or not allowable in whole
or in part therein), plus (c) Revolving Loan Agent's costs and expenses paid or
incurred and other payments made in connection with collecting the Revolving
Loan Debt and enf        
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