13.9 On February 25, 2002, the private placement department of Provident Mutual was evaluating a $10 million loan request from Fly-By-Dusk, Inc. The loan principal would be repayable in five annual installments of $2 million each. Provident would charge 14%

per annum on this type of loan but Fly-By-Dusk was willing to give Provident 1 million warrants to reduce interest payments. The warrants would have $10 exercise price and would expire in 5 years. Fly-By-Dusk has 5 million shares outstanding valued at $5 a