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Exhibit 10.10  

EXECUTION
VERSION   

   

  

AIRCRAFT PURCHASE AGREEMENT  

Dated as of June 8, 2006 

Between
and Among 

PCG ACQUISITION II, INC.

as Seller  

and 

ALLEGIANT AIR, LLC,

as Buyer  

  

in respect of

One (1) McDonnell Douglas Model MD-83 Aircraft

(also referred to at the International Registry as Model MD-80-83)

bearing Manufacturer's Serial Number 49625

Finnish Registration Number OH-LMG

US Registration Number N880GA

equipped with two (2) Pratt & Whitney Model JT8D-219 Engines

(also referred to at the International Registry as Model JT8D 200)

bearing Manufacturer's Serial Numbers

708520 and 718285 

  

  

  

  

  

  

  

 
 

AIRCRAFT PURCHASE AGREEMENT    
    

        This AIRCRAFT PURCHASE AGREEMENT dated as of June 8, 2006, is between PCG
ACQUISITION II, INC., a Nevada corporation ("Seller") and ALLEGIANT AIR, LLC, a
Nevada limited liability company ("Buyer"). 

W I T N E S S E T H:  

        WHEREAS, Seller owns all legal and beneficial title to the Aircraft that is the subject matter of this Agreement;
and 

        WHEREAS, Buyer desires to purchase the Aircraft from Seller and Seller is willing to sell the Aircraft to Buyer, on the terms and subject
to the conditions set forth in this Agreement; 

        NOW THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants of the parties set forth herein, and for
other good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, the parties hereto agree as follows: 

 
 

ARTICLE 1: DEFINITIONS    
    

        The following terms shall have the following respective meanings for all purposes of this Agreement: 

"Agreement" means this Aircraft Purchase Agreement. 

"Aircraft" means, collectively, the Airframe, the Engines, and the Aircraft Documents. 

"Aircraft Documents" means all logs, manuals, data and inspection, modification, maintenance and overhaul records (including historical records
necessary to prove parts traceability) associated with the Airframe and the Engines that are in Seller's possession. 

"Aircraft Protocol" means the official [English] language text of the Protocol to the Cape Town Convention On Matters Specific
To Aircraft Equipment adopted 16 November 2001, at a diplomatic conference in Cape Town, South Africa. 

"Airframe" means that certain McDonnell Douglas Model MD-83 airframe (also referred to at the International Registry as Model
MD-80-83) bearing manufacturer's serial number 49625, Finnish registration number OH-LMG and anticipated to have United States registration number N880GA, together
with any and all avionics, appliances, components, parts, instruments, appurtenances, accessories, furnishings or other equipment of whatever nature (excluding Engines) incorporated therein, installed
thereon, and attached thereto. 

"Applicable Law" means, without limitation, all applicable laws, treaties, international agreements, decisions and orders of any court, arbitration or
governmental agency or authority and rules, regulations, orders, directives, licenses and permits of any governmental body, instrumentality, agency or authority. 

"Balance" has the meaning set forth in Section 2.4 hereof. 

"Bills of Sale" means, collectively, the Warranty Bill of Sale and the FAA Bill of Sale. 

"Business Day" means a day other than a Saturday or Sunday on which the banks in the U.S. and Sweden are open for the transaction of business of the
type required by this Agreement. 

"Cape Town Convention" means, collectively, the official [English] language texts of the Convention on International Interests
in Mobile Equipment (the "Convention") and the Aircraft Protocol, both, adopted on 16 November 2001, at a diplomatic conference in Cape Town, South Africa. 

"Delivery" has the meaning set forth in Section 4.2 hereof. 

 

"Delivery Conditions" has the meaning set forth in Exhibit C hereof and shall include complete
preparation of the Aircraft for immediate departure from the Delivery Location. 

"Delivery Date" means the date on which Delivery occurs which shall be June 9, 2006 or such other date as mutually agreed by both parties. 

"Delivery Receipt" means the delivery receipt substantially in the form attached hereto as  Exhibit A. 

"Delivery Location" means Arlanda Airport, Stockholm, Sweden. 

"Deposit" has the meaning set forth in Section 2.3 hereof. 

"Discrepancies" means a condition of the Aircraft following an Inspection that, in Buyer's sole opinion, causes the Aircraft to not satisfy the
conditions set forth in Exhibit C hereto or otherwise makes the Aircraft not acceptable to Buyer. 

"Dollar" or "US$" means the lawful currency of the United States of America. 

"Effective Date" means the date of this Agreement. 

"Engines" means those two (2) Pratt & Whitney Model JT8D-219 engines (also referred to at the International Registry as Model
JT8D 200) bearing manufacturer's serial numbers 708520 and 718285, together with any and all avionics, appliances, components, parts, instruments, appurtenances, accessories, furnishings or other
equipment of whatever nature incorporated in, installed on, and/or attached to either such Engine. 

"FAA" means the United States Federal Aviation Administration. 

"FAA Bill of Sale" means an FAA form 8050-2 aircraft bill of sale for the Aircraft, suitable for filing and recording with the FAA. 

"FAA Counsel" means McAfee & Taft. 

"Finnair" means Finnair Oyj, the operator and lessee (from Seller) of the Aircraft immediately prior to the sale contemplated by this Agreement. 

"Inspection" has the meaning set forth in Section 3.1 hereof. 

"International Registry" means the registry, located in Dublin, Ireland, established pursuant to the Cape Town Convention. 

"International Registry Procedures and Regulations" means the official [English] language text of the Procedures for the
International Registry and the Regulations of the International Registry, each, issued by the supervisory authority thereof pursuant to the Cape Town Convention. 

"Manufacturer" shall mean McDonnell Douglas. 

"Material Damage" means any damage to the Airframe and/or to an Engine to the Aircraft. 

"Nordea" shall mean Nordea Finans Sweden PLC, lender to Seller and lienholder in the Aircraft for the period prior to sale of the Aircraft to Buyer
hereunder. 

"Purchase Price" has the meaning set forth in Section 2.2 hereof. 

"Taxes" means any and all present and future taxes, duties, withholdings, levies, assessments, imposts, fees and other governmental charges of all kinds
(including without limitation any value added or similar tax and any stamp, documentary, registration or similar tax), together with any penalties, fines, surcharges and interest thereon and any
additions thereto; 

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"Taxing Jurisdiction" means any federal, state, county, local, airport, district, foreign, or governmental agency thereof or therein that imposes Taxes. 

"Technical Acceptance" has the meaning set forth in Section 3.3 hereof. 

"Technical Acceptance Certificate" means a Technical Acceptance Certificate substantially in the form attached hereto as  Exhibit B. 

"Technical Acceptance Date" means the date on which Buyer delivers the Technical Acceptance Certificate to Seller. 

"Technical Acceptance Location" means Helsinki, Finland. 

"Total Loss" means any of the following events with respect to the Aircraft: (i) the loss of the Aircraft or of the use thereof due to the
destruction of or damage to such property which renders repair uneconomic or which renders such property permanently unfit for normal use for any reason whatsoever; (ii) any damage to such
property which results in an insurance settlement with respect to such property on the basis of a total loss or a constructive or compromised total loss; or (iii) the theft, hijacking or
disappearance of such property for a period in excess of 10 consecutive days or, if earlier, beyond the Delivery Date. A Total Loss with respect to the Aircraft shall be deemed to have occurred if a
Total Loss occurs with respect to the Airframe. 

"Warranty Bill of Sale" means a bill of sale for the Aircraft substantially in the form attached hereto as  Exhibit D. 

 
 

ARTICLE 2: AGREEMENT TO SELL AND PURCHASE    
    

	2.1
	Agreement to Sell and Purchase. Seller agrees to sell and deliver the Aircraft to Buyer, and Buyer agrees to purchase and accept
delivery of the Aircraft from Seller, in accordance with and subject to the terms and conditions set forth in this Agreement.

	2.2
	Purchase Price. The purchase price for the Aircraft shall be Three Million Five Hundred Twenty Five Thousand and No/100 US Dollars
(US$3,525,000.00) (the "Purchase Price").

	2.3
	Deposit. On June 22, 2006 Buyer deposited Two Hundred and Fifty Thousand and No/100 US Dollars (US$250,000) with Seller, (the
"Deposit"). The Deposit shall be applied to the Purchase Price due at the time of Delivery and shall be refunded as otherwise specifically set forth
herein.

	2.4
	Payment of Balance. Immediately after arrival of the Aircraft at the Delivery Location, provided no Total Loss or damage has occurred
with respect to the Aircraft since the Technical Acceptance, Buyer shall deliver to Seller the Delivery Receipt and pay the Purchase Price less the Deposit (such amount to be hereinafter referred to
as the "Balance") to Seller to such account with Nordea as Seller shall have notified Buyer in advance.

	2.5
	Refund of Deposit. Buyer and Seller shall cooperate in good faith to refund the Deposit to Buyer in accordance with this Agreement.

 
 

ARTICLE 3: INSPECTION AND TECHNICAL CCEPTANCE    
    

	3.1
	Inspection. Prior to Technical Acceptance, Seller shall make the Aircraft and the Aircraft Documents available to Buyer at the
Technical Acceptance Location, so that Buyer may: (a) take part as an observer in (i) Finnair's performance of a videotape borescope inspection of the low pressure and high pressure
compressors, combustion chambers, NGVs, and the turbine area on the Engines; and (ii) Finnair's performance of maximum power assurance run and condition, acceleration and bleed valve scheduling
checks of the Engines; (b) conduct a physical inspection of the Aircraft and the Aircraft Documents (collectively, (a) and (b) the
"Inspection"). Buyer has, prior to the date hereof, participated in a demonstration flight of the Aircraft and was satisfied 

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with
the results thereof. Buyer acknowledges that in accepting the Aircraft, Buyer is relying on its own inspection and knowledge of the Aircraft in determining whether the Aircraft is in a condition
acceptable to Buyer, in its sole discretion. 

	3.2
	Discrepancies Correction. Buyer shall compile a list of Discrepancies determined from the Inspection, if any. Seller shall correct and
repair such Discrepancies at Seller's cost and expense no later than the Delivery Date, subject, however to Section 11.4 and Buyer's rights of termination thereunder. Seller shall inform Buyer
its decision regarding rectification of the Discrepancies within 5 Business Days of notification to Seller of the Discrepancies and if Seller shall undertake rectification thereof, the same shall be
completed in such time-frame as Buyer shall determine acceptable, in its discretion. If the time for rectification is not acceptable to Buyer, Buyer shall have the right to terminate this
Agreement upon notice to Seller whereupon Seller shall refund the Deposit to Buyer and thereafter, neither party shall have any further rights or obligations hereunder.

	3.3
	Technical Acceptance. After the Inspection, and the resolution of Discrepancies, if any, or the waiver thereof by Buyer, Buyer shall
execute and deliver a Technical Acceptance Certificate to Seller thereby accepting the condition of the Aircraft, subject to no Material Damage and/or Total Loss affecting the Aircraft upon or prior
to arrival of the Aircraft at the Delivery Location (the "Technical Acceptance"); provided that any damage not constituting either Material Damage or
Total Loss which occurs after Technical Acceptance and prior to Delivery shall be subject to the terms of Section 11.6. Buyer acknowledges that Seller makes no representations or warranties
regarding the condition of the Aircraft except for its warranty of title and as expressly set forth Article 5 hereof, and Buyer's acceptance of the Aircraft is made based on Buyer's own
inspection and not based on any representation or warranty of Seller.

	3.4
	Events Following Technical Acceptance. Promptly following the Technical Acceptance, the parties will take all steps, as may be
necessary, in order to achieve the following (the parties understand and agree that the order shown below will be followed unless otherwise agreed) without undue delay:

	(a)
	Ferry
of the Aircraft to the Delivery Location by Finnair pilots (with Buyer's pilots on board to observe such ferry flight; Finnair's costs for such flight (such as for fuel,
Eurocontrol charges, insurance and landing fees) if any are charged to Seller by Finnair, to be borne by Buyer, based on invoice from Finnair to Seller and which are estimated to be
4200-5000 Euros);

	(b)
	Inspection
of the Aircraft by Buyer at the Delivery Location to determine whether or not any damage or Total Loss has occurred to the Aircraft since Technical Acceptance; and

	(c)
	Provided
no damage or Total Loss has occurred to the Aircraft since Technical Acceptance, Seller shall complete acceptance and return of the Aircraft from Finnair under its lease with
Finnair and obtain deregistration of the Aircraft from Finnish registration;

	(d)
	Subject
to the conditions precedent of Section 4.below being complied with, the parties shall proceed with Delivery under Section 4.5 below; 

Buyer
and Seller acknowledge and agree to the reservation of the right of Buyer to designate another country other than the United States for registration of the Aircraft following deregistration from
Finland and the parties agree to cooperate in good faith to make such adjustments to the delivery procedure and conditions precedent set forth herein as may be reasonably required to accommodate such
alternative designation by Buyer and successful registration in such other country. 

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ARTICLE 4: DELIVERY    
    

	4.1
	Delivery Condition. On the date of Delivery, and subject to the terms and conditions of this Agreement, the Aircraft shall be delivered
to Buyer in an "AS IS, WHERE IS" condition, and with no representations or warranties of any kind except as described in Articles 5 and 6 hereof.

	4.2
	Delivery. Delivery shall occur upon the satisfaction (or waiver by the parties) of the conditions in Sections 4.3 and 4.4 hereof and
upon the occurrence of the actions in Section 4.5 hereof ("Delivery").

	4.3
	Buyer's Conditions Precedent. Buyer's obligation to purchase and accept delivery of and purchase the Aircraft from Seller shall be
subject to satisfaction of each of the following conditions at such time as is indicated below:

	(a)
	receipt
by Buyer, on or before Delivery of the following: 

        (i)    executed
counterparts of this Agreement duly executed by Seller (for Seller compliance) and the Bills of Sale have been prepositioned with FAA Counsel, as signed by
Seller; 

        (ii)   written
disclaimer of interest and release of lien in and to the Aircraft by Nordea upon Delivery, in such form as Buyer shall reasonably request (which originally
signed document shall have been prepositioned with FAA Counsel prior to Delivery for filing with the FAA immediately after Delivery (for Seller compliance); 

        (iii)  written
evidence of the immediate termination of the lease between Finnair and Seller upon Delivery (which originally signed document shall have been prepositioned
with FAA Counsel prior to Delivery for filing with the FAA immediately after Delivery (for Seller compliance); 

        (iv)  written
evidence of the deregistration of the Aircraft from Finland, which evidence shall also have been provided to the FAA by the Finnish Aviation Authorities (for
Seller compliance); 

        (v)   Seller
and Buyer shall have registered Buyer's rights (including its international interests) under this Agreement with the International Registry; 

        (vi)  the
originally signed letter from Pacific Coast Group, Inc. in the form of Exhibit G hereto (for Seller compliance); 

        (vii) a
letter signed by Finnair with respect to the absence of Eurocontrol charges outstanding with respect to the Aircraft and all aircraft in Finnair's fleet (for Seller
compliance); 

        (viii) from
FAA Counsel, written evidence that there are no liens, claims or encumbrances recorded against the Aircraft or any part thereof at either of the FAA or the
International Registry (other than, in the case of the International Registry, such registration of the sale under this Agreement as Seller and Buyer have jointly made). 

	(b)
	Buyer
shall be satisfied prior to Technical Acceptance, in its sole discretion, with the condition of the Aircraft; and

	(c)
	No
Total Loss or other damage with respect to the Aircraft shall have occurred after Technical Acceptance and prior to Buyer's delivery to Seller of the Delivery Receipt. 

The
conditions in this Section 4.3 are for the sole benefit of Buyer and may be waived, in whole or in part, only by Buyer. 

	4.4
	Seller's Conditions Precedent. Seller's obligation to sell and deliver the Aircraft to Buyer shall be subject to the satisfaction of
each of the following conditions:

	(a)
	receipt
by Seller, on or before Delivery, of the following: 

        (i)    executed
counterparts of this Agreement duly executed by Buyer (for Buyer compliance); 

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        (ii)   Buyer's
executed copy of the Technical Acceptance Certificate and, at Delivery, the Delivery Receipt (for Buyer compliance as and when required by this Agreement); 

        (iii)  Buyer's
insurance certificate covering the Aircraft in compliance with the terms of this Agreement and being effective upon the Delivery hereunder; and 

	(b)
	receipt
by Seller of the Balance. 

The
conditions specified in this Section 4.4 are for the sole benefit of Seller and may be waived, in whole or in part, only by Seller. 

	4.5
	Actions at Delivery. Upon the meeting or waiver of the conditions precedent and arrival of the Aircraft at the Delivery Location and
deregistration of the Aircraft from Finland, the parties shall immediately convene a conference call in which FAA Counsel, Nordea, Seller and Buyer shall participate and in which all of the following
actions shall occur (which actions shall be deemed to take place simultaneously):

	(a)
	Delivery Receipt. Delivery to Seller, via facsimile transmission by Buyer of the signed Delivery Receipt, dated the Delivery Date;

	(b)
	Warranty Bill of Sale. Dating the pre-positioned Bills of Sale the Delivery Date and delivery to Buyer's control and
direction;

	(c)
	Payment of Balance of Purchase Price. Delivery of the Balance to Seller;

	(d)
	Other Actions. Such other actions as may be agreed among Buyer, Seller, and FAA Counsel with respect to filing with the FAA all
applicable release of lien, disclaimer and termination of lease documentation, application for registration of the Aircraft, and any financing or lease documentation as may be required by Buyer and
release of FAA Counsel's legal opinion with respect to the sale; and

	(e)
	FAA Bill of Sale. FAA Counsel shall, after dating the pre-positioned Bills of Sale the Delivery Date, file the same (either
the FAA Bill of Sale or the Warranty Bill of Sale, along with Buyer's application for registration and related documents (as under (d) above)) with the FAA. 

 
 

ARTICLE 5: REPRESENTATIONS, WARRANTIES & COVENANTS    
    

	5.1
	Representations and Warranties of Seller

	5.1.1
	Seller
hereby represents and warrants as of the Delivery Date as follows:

	(a)
	Seller
is the true and lawful owner of all legal and beneficial title to the Aircraft. The execution and delivery of the Warranty Bill of Sale and FAA Bill of Sale shall convey to
Buyer all right, title and interest in, and to, and good and marketable title to, the Aircraft, free of any and all liens, claims and encumbrances;

	(b)
	Seller
is organized and validly existing under the laws of the United States, possessing perpetual existence as a legal entity, with the capacity to sue and be sued in its own name,
and with full power and legal right to carry on its business as currently conducted and to execute, deliver and perform its obligations arising under this Agreement, the Warranty Bill of Sale and the
FAA Bill of Sale;

	(c)
	The
execution, delivery, and performance by Seller of this Agreement, the Warranty Bill of Sale, and the FAA Bill of Sale have been duly authorized by all necessary action on behalf
of Seller and do not conflict with or result in any breach of any of the terms or constitute a default under any document, instrument, or agreement to which Seller is a party; 

6

 

	(d)
	No
action, suit or proceeding to which Seller is a party is pending or, to the knowledge of Seller, threatened before any court, arbitrator or administrative or other governmental
body that may restrain, enjoin or challenge this Agreement, the consummation of the transaction, the performance of obligations, or enjoyment of rights and benefits contemplated herein, or that is
otherwise related hereto or thereto;

	(e)
	Each
of this Agreement, and, upon the execution and delivery thereof, the Warranty Bill of Sale and FAA Bill of Sale has been duly executed and delivered by Seller and each constitute
the legal, valid, and binding obligations of Seller enforceable against Seller in accordance with their respective terms; and

	(f)
	no
broker or finder has been involved, either directly or indirectly, with the transaction contemplated herein on behalf of Seller or any affiliate of Seller;

	(g)
	Seller
shall take no action to record or register any national or international interests, including without limitation, with the FAA civil aircraft registry or with the International
Registry, without the consent and participation of Buyer;

	(h)
	In
the event this Agreement is terminated in accordance with its terms prior to Delivery and Buyer does not purchase the Aircraft, Seller shall cooperate with Buyer to release the
international interests registered by Buyer and Seller prior to such termination, as may be prescribed by the International Registry Rules and Procedures.

 

	5.2
	Representations and Warranties of Buyer. Buyer hereby represents and warrants as of the Effective Date and the Delivery Date as
follows:

	(a)
	Buyer
is a limited liability company organized and validly existing under the laws of the State of Nevada possessing perpetual existence as a legal entity, with the capacity to sue
and be sued in its own name, and with full power and legal right to carry on its business as currently conducted, and to execute, deliver and perform the provisions of this Agreement;

	(b)
	The
execution, delivery, and performance by Buyer of this Agreement have been duly authorized by all necessary action on behalf of Buyer and do not conflict with or result in any
breach of any of the terms or constitute a default under any document, instrument, or agreement to which Buyer is a party;

	(c)
	This
Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid, and binding obligation of Buyer enforceable against Buyer in accordance with its terms;

	(d)
	No
action, suit or proceeding to which Buyer is a party is pending or, to the knowledge of Buyer, threatened before any court, arbitrator or administrative or other governmental body
that may restrain, enjoin or question this Agreement, the consummation of the transaction, the performance of obligations, or enjoyment of rights and benefits contemplated herein, or that is otherwise
related hereto or thereto;

	(e)
	No
broker or finder has been involved, either directly or indirectly, with the transaction contemplated herein on behalf of Buyer or any affiliate of Buyer;

	(f)
	In
the event this Agreement is terminated in accordance with its terms prior to Delivery and Buyer does not purchase the Aircraft, Buyer shall cooperate with Seller to release the
international interests registered by Buyer and Seller prior to such termination, as may be prescribed by the International Registry Rules and Procedures.

 

	5.3
	DISCLAIMER. THE AIRCRAFT IS BEING SOLD HEREUNDER ON AN "AS IS" "WHERE IS" AND "WITH ALL FAULTS" BASIS. SELLER'S EXPRESS WARRANTIES AND 

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REPRESENTATIONS
SET FORTH IN ARTICLE 5.1 HEREOF ARE EXCLUSIVE AND IN LIEU OF ALL OTHER REPRESENTATIONS OR WARRANTIES WHATSOEVER BY SELLER EXPRESS OR IMPLIED OR ARISING BY OPERATION OF LAW OR IN
EQUITY, AND EACH OF SELLER HAS NOT MADE, AND BUYER HEREBY WAIVES, RELEASES, DISCLAIMS, AND RENOUNCES ALL EXPECTATION OF OR RELIANCE UPON, ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER (OTHER THAN THOSE
SET FORTH IN ARTICLE 5.1 HEREOF) WITH RESPECT TO THE AIRCRAFT OR ANY PART THEREOF, INCLUDING, WITHOUT LIMITATION, REPRESENTATIONS AND WARRANTIES AS TO THE AIRWORTHINESS, VALUE, CONDITION, DESIGN,
MERCHANTABILITY, AND FITNESS FOR A PARTICULAR USE OF THE AIRCRAFT, AND ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY ARISING
FROM A COURSE OF PERFORMANCE OR DEALING OR USAGE OF TRADE). BUYER HEREBY WAIVES ANY AND ALL RIGHTS, CLAIMS, AND REMEDIES OF BUYER AGAINST SELLER, EXPRESS OR IMPLIED OR ARISING BY OPERATION OF LAW OR
IN EQUITY, ARISING FROM ANY SUCH REPRESENTATION OR WARRANTY (OTHER THAN THOSE SET FORTH IN ARTICLE 5.1 HEREOF), OR FOR ANY LIABILITY, CLAIM, OR REMEDY FOR LOSS OF OR DAMAGE TO THE AIRCRAFT, FOR LOSS
OF USE, REVENUE, OR PROFIT WITH RESPECT TO THE AIRCRAFT, OR FOR ANY OTHER INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES WHATSOEVER, BUT IN EACH CASE, OTHER THAN THOSE WHICH ARISE FROM ANY
REPRESENTATION AND WARRANTY SET FORTH IN ARTICLE 5.1 HEREOF OR BREACH OR INACCURACY THEREOF. 

 
 

ARTICLE 6: THIRD PARTY WARRANTIES    
    

	6.1
	Third Party Warranties. To the extent that any warranties from manufacturers, service providers, or suppliers are still in effect with
respect to the Aircraft (to the extent that such rights are assignable and are not extinguished as a result of this Agreement), such warranties and all rights thereunder shall, without further action,
be irrevocably assigned to Buyer effective as of the Delivery Date. Seller further agrees, at Buyer's expense, to enforce on Buyer's behalf such warranties that are, by their terms, assignable by
Seller, provided that Buyer shall pay in the first instance any reasonable out of pocket costs and expenses incurred by Seller in rendering such assistance. 

 
 

ARTICLE 7: SALES AND OTHER TAXES    
    

	7.1
	Tax Liabilities. Seller shall be responsible for, shall defend, indemnify and hold harmless Buyer from and against, and shall pay
promptly when due or on demand, any and all Taxes (i) imposed by any Finnish Taxing Jurisdiction relating to the sale and purchase hereunder and/or the export of the Aircraft from Finland,
(ii) imposed by any Taxing Jurisdiction based on or imposed with reference to the income of Seller; (iii) imposed by any Taxing Jurisdiction with respect to the Aircraft, its use,
operation, maintenance or location on or prior to Delivery; and (iv) imposed by any Taxing Jurisdiction with respect to any aspect of the financing of the Aircraft by Seller (including, without
limitation, payments on the related loan upon or prior to Delivery). Buyer shall be responsible for, shall defend, indemnify and hold harmless Seller from and against, and shall pay promptly when due
or on demand, any and all Taxes (i) imposed by any United States Taxing Jurisdiction relating to the sale and purchase hereunder and/or the import of the Aircraft to the United States,
(ii) imposed by any Taxing Jurisdiction based on or imposed with reference to the income of Buyer; (iii) imposed by any Taxing Jurisdiction with respect to the Aircraft, its use,
operation, maintenance or location after Delivery. 

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	7.3
	Miscellaneous. Seller and Buyer agree to cooperate with each other to ensure that the sale and delivery of, and transfer of title to,
the Aircraft pursuant to this Agreement are completed in a manner such that no Taxes are imposed with respect to the transactions contemplated by this Agreement. 

 
 

ARTICLE 8: PCG COVENANT AND NOTICES    
    

	8.1
	PCG Letter. Seller agrees to procure the cooperation and assistance of Pacific Coast Group, Inc. in the delivery to Buyer at
Delivery of the letter attached hereto as Exhibit G, signed by PCG.

	8.2
	Notices. All communications and notices hereunder shall be in writing and shall be deemed made (i) when delivered by hand, or
(ii) three (3) calendar days after being sent by overnight courier, or (iii) when transmitted by means of facsimile or other wire transmission (with request for assurance of
receipt in a manner typical with respect to communications of that type and followed promptly with the original thereof) in each case at the address set forth below: 

	If to Buyer:	 	Allegiant Air, LLC

Attn: Sean Hopkins

3301 North Buffalo Dr. Suite B-9

Las Vegas, NV 89129
	

 	
 	

Tel: (702) 851-7321

Fax: (702) 851 7301
	
With a copy to:	
 	

Donna M. Schmidt, Esq.

405 S. Roosevelt

Wichita, KS 67206

Tel: (316) 683-5500

Fax: (316) 651-5013
	
If to Seller:	
 	

PCG Acquisition II, Inc.

Attn: Lawrence Olson, Vice President

3291N Buffalo Dr., Suite 8

Las Vegas, Nevada 89129

Tel: (702) 256-8203

Fax: (702) 256-7209

 
 

ARTICLE 9: RESERVED    
    

 
 

ARTICLE 10: INSURANCE    
    

	10.1
	Insurance Coverage. From and after the delivery by Buyer of the Technical Acceptance Certificate through the period ending two
(2) years after Delivery, Seller and Nordea shall be named and remain as "additional insureds" under Buyer's airline third party liability insurance taken out in respect of the Aircraft.

	10.2
	Certificate of Insurance. Buyer shall provide Seller and Nordea with a certificate of insurance complying with Section 10.1
hereof and in form and substance reasonably satisfactory to Seller on or prior to the Delivery Date and upon Seller's request at any time (but not more than once per year) prior to the date two
(2) years after Delivery. 

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ARTICLE 11: TERMINATION AND CERTAIN OTHER EVENTS    
    

	11.1
	Reserved.

	11.2
	Buyer's Right of Termination Prior to Technical Acceptance. In addition to Buyer's right to terminate this Agreement after Seller
fails or refuses to correct Discrepancies as set forth in Section 11.4 below, Buyer shall have the right, in its sole discretion, at any time prior to Technical Acceptance, for reasons
pertaining to the condition of the Aircraft, non-compliance with the Delivery Conditions and/or the results of the Inspection, to terminate this Agreement upon notice to Seller. Upon
Seller's receipt of Buyer's notice thereof, Seller shall refund the Deposit and thereafter, neither party shall have any further rights or obligations hereunder.

	11.3
	Buyer Performance. If Seller is ready, willing and able to proceed with either the Technical Acceptance or Delivery in accordance with
the terms and conditions required of it under this Agreement, but due to, the failure of Buyer to perform its obligations under this Agreement, such Technical Acceptance or Delivery has not been
consummated, Seller shall have the right, upon notice to Buyer, to terminate this Agreement, whereupon this Agreement shall terminate, the parties shall have no further liability to one another
hereunder and Seller shall have no further obligation to deliver the Aircraft to Buyer. Upon the receipt by Buyer of such notice of termination, Seller shall refund the Deposit to Buyer. Prior to
Technical Acceptance, the foregoing shall be Seller's sole remedy for breach of Buyer's obligations under this Agreement. After Technical Acceptance, the sole remedy of Seller for breach of Buyer's
obligations under this Agreement, as described above, shall be the forfeiture of the Deposit to Seller.

	11.4
	Seller Performance. If Buyer is ready, willing and able to proceed with either the Technical Acceptance or Delivery in accordance with
the terms and conditions required of it under this Agreement, but due to the failure of Seller to perform its respective obligations under this Agreement, such Technical Acceptance or Delivery has not
been consummated, including, without limitation, due to the failure of Seller to tender the Aircraft in compliance with the Delivery Conditions and failure of Seller to rectify any Discrepancies, then
Buyer shall have the right, to terminate this Agreement upon notice to Seller whereupon receipt of such notice Seller shall refund the entire Deposit to Buyer Following such return by Seller of the
Deposit to Buyer, this Agreement shall terminate and the parties shall have no further liability to one another hereunder. In furtherance of the foregoing, Seller shall exert its reasonable efforts to
rectify Discrepancies in accordance with Section 3.2 as soon as possible after discovery and notice thereof; however, if Seller does not or is unable to rectify the same, Buyer's sole remedy
against Seller is termination of this Agreement as aforesaid or, Buyer may proceed with purchase and rectify the Discrepancies at Buyer's sole expense.

	11.5
	Total Loss Prior to Delivery. If the Aircraft has experienced a Total Loss prior to Delivery, then upon written notice of such Total
Loss from Seller to Buyer or, if Buyer has notice thereof, upon written notice of such Total Loss from Buyer to Seller, Seller shall refund the Deposit to Buyer and thereafter, the parties shall have
no further liability to one another hereunder and this Agreement shall thereupon terminate.

	11.6
	Damage Prior to Delivery. If the Aircraft has experienced any Material Damage prior to Delivery, Buyer shall have the right, upon
evaluation thereof (including the time consumed in rectification thereof either by Seller or by Buyer) upon notice to Seller, to terminate this Agreement, whereupon receipt of such notice, Seller
shall refund the Deposit to Buyer and thereafter, the parties shall have no further liability to one another hereunder and this Agreement shall thereupon terminate. 

If
the Aircraft has experienced any damage prior to Delivery which damage constitutes neither Material Damage nor a Total Loss, so long as such damage is covered by Finnair insurance, Seller 

10

 

shall
rectify the damaged condition, at Seller's sole cost and expense, prior to Delivery and without effect on the amount of the Purchase Price payable hereunder. The Delivery Date shall be extended
to such date as may be reasonably required to complete such rectification. 

 
 

ARTICLE 12: MISCELLANEOUS    
    

	12.1
	Time is of the Essence. Unless stated expressly to the contrary herein, time shall be of the essence for all events contemplated
hereunder.

	12.2
	Confidentiality. Each party hereto agrees that it will treat this Agreement and the financial terms hereof as privileged and
confidential and will not, without the prior written consent of the other, disclose the terms hereof or thereof to any third party, except for disclosure to its lenders, attorneys, auditors or its
successors or permitted assigns and as may be required by Applicable Law or governmental regulations or as may be necessary to effect the transactions contemplated hereby, in which case the party so
disclosing shall use good faith efforts to limit disclosure to such third parties on a need-to know basis. In connection with any such disclosure the party making such disclosure shall
request and use its best efforts to obtain confidential treatment of such information.

	12.3
	Binding Effect. This Agreement shall inure to the benefit of and be binding upon each of the parties hereto and their respective
successors and permitted assigns.

	12.4
	Transaction Costs and Expenses. Whether or not the transactions contemplated hereby are consummated, and except as otherwise provided
herein, each of Seller and Buyer shall bear and be responsible for its own costs and expenses incurred in connection with the negotiation, preparation, execution and delivery of this Agreement, and
any other agreements, documents and instruments relating hereto, and neither Seller nor Buyer shall have any right of reimbursement or indemnity for such costs and expenses as against each other, with
the exception of (i) costs (including legal fees) pertaining to clearance of any liens on the Aircraft which are the responsibility of Seller to remove prior to Delivery and (ii) any
costs required to export the Aircraft from Finland, which shall be borne by Seller.

	12.5
	Entire Agreement. This Agreement constitutes, on and as of the Effective Date, the entire agreement of the parties hereto with respect
to the subject matter hereof, and all prior or contemporaneous understandings or agreements, whether written or oral, between the parties hereto with respect to the subject matter hereof are hereby
superseded in their entirety.

	12.6
	Amendments. No provision of this Agreement may be amended, changed, waived or discharged orally, but only by an instrument in writing
specifying the provision intended to be amended, changed, waived or discharged and signed by the party against whom enforcement of such amendment, change, waiver or discharge is sought and no
provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed
by the party against whom enforcement of such agreement is sought.

	12.7
	Assignment. Neither party may assign any of its rights or delegate any of its obligations hereunder prior to Delivery without the
prior written consent of the other party, which consent shall not be unreasonably withheld. On or immediately, prior to Delivery, Buyer shall be entitled to assign any of its rights under this
Agreement to a third party, in which case, Seller shall take such steps to acknowledge and cooperate with such assignment. In addition, Buyer (or its assignee of its rights under the foregoing) shall
be entitled, on or after Delivery, to assign to its lender or financing party, as additional security, the Buyer's rights under this Agreement and the Bills of Sale. 

11

 
	12.8
	Headings and References. The division of this Agreement into Articles, and the insertion of headings, are for convenience of reference
only and shall not affect the construction or interpretation of this Agreement.

	12.9
	Counterparts. This Agreement may be fully executed in any number of separate counterparts by each of the parties hereto, all such
counterparts together constituting but one and the same instrument. Copies of this Agreement and the documents to be delivered hereunder, transmitted by facsimile, shall be deemed to be and treated
the same as executed originals; provided that the original of any document delivered by facsimile transmission shall, upon request, also be delivered by mail or private delivery service.

	12.10
	Non-Waiver. Any failure at any time of either party to enforce any provision of this Agreement shall not constitute a
waiver of such provision or prejudice the right of such party to enforce such provision at any subsequent time.

	12.11
	Further Assurances. The parties will accommodate reasonable requests for additional documentation to facilitate the purchase and sale
of the Aircraft. Each party shall execute all documents and do all other things that may be reasonably requested by the other party in order to fully and adequately document the purchase and sale of
the Aircraft, whether prior to, in connection with, or subsequent to the Delivery Date.

	12.12
	Survival of Representations and Warranties. The representations, warranties and covenants herein of each party hereto shall survive
the execution and delivery of, and the consummation of the transactions contemplated by, this Agreement.

	12.13
	Attorneys' Fees. In any suit or other proceeding which may be instituted by Seller or Buyer pertaining to this Agreement, the party
ultimately prevailing, in addition to any other relief that may be awarded, shall be entitled to its costs, expenses and reasonable attorneys' fees incurred in such proceeding.

	12.14
	Invalid Provisions. If any provision of this Agreement is or becomes void or unenforceable by force or operation of law, the other
provisions shall remain valid and enforceable.

	12.15
	Currency. All prices, amounts and payments referred to herein shall be in United States Dollars.

	12.16
	Governing Law. This Agreement shall in all respects, including all matters of construction, validity and performance, be governed by,
and construed and enforced in accordance with, the laws of the State of Nevada, as would be applicable to contracts entered into in that state between citizens of that state and to be performed wholly
within that state, without reference to any rules governing conflicts of laws. The parties consent to service of process by mail courier or hand delivery, at their regular business address from time
to time. 

[Signature
page follows.] 

12

 

        IN WITNESS WHEREOF, the parties have caused this Aircraft Purchase Agreement to be
executed by their duly authorized representatives as of the Effective Date. 

	 	 	BUYER:
	

 	
 	
ALLEGIANT AIR, LLC
	

 	
 	

By:	

    

	

 	
 	

Print:	

Sean P. Hopkins
	

 	
 	

Title:	

Vice President, Fleet Planning
	

 	
 	

SELLER:
	

 	
 	
PCG ACQUISITION II, INC.
	

 	
 	

By:	

    

	

 	
 	

Print:	

    

	

 	
 	

Title:	

    

13

QuickLinks

AIRCRAFT PURCHASE AGREEMENT

ARTICLE 1: DEFINITIONS

ARTICLE 2: AGREEMENT TO SELL AND PURCHASE

ARTICLE 3: INSPECTION AND TECHNICAL CCEPTANCE

ARTICLE 4: DELIVERY

ARTICLE 5: REPRESENTATIONS, WARRANTIES & COVENANTS

ARTICLE 6: THIRD PARTY WARRANTIES

ARTICLE 7: SALES AND OTHER TAXES

ARTICLE 8: PCG COVENANT AND NOTICES

ARTICLE 9: RESERVED

ARTICLE 10: INSURANCE

ARTICLE 11: TERMINATION AND CERTAIN OTHER EVENTS

ARTICLE 12: MISCELLANEOUSQuickLinks
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Exhibit 10.11  

Confidential
treatment has been requested for portions of this document. This copy of the document filed as an Exhibit omits the confidential information subject to the confidentiality request.
Omissions are designated by the symbol [...***...]. A complete version of this document has been filed separately with the Securities and Exchange Commission. 

 
 

AIR TRANSPORTATION CHARTER AGREEMENT    
    

        This AIR TRANSPORTATION CHARTER AGREEMENT ("Agreement") dated as of
February                        , 2003, by and between ALLEGIANT AIR, INC., a California
corporation with principal offices at 3291 North Buffalo Drive, Suite 8, Las Vegas, Nevada 89129 ("Allegiant") and Harrah's Laughlin, Inc., with principal offices at 2900 South Casino Drive,
Laughlin, Nevada 89029 ("Charterer"). (Allegiant and Charterer shall each also be referred to as the "Party" or collectively as the "Parties"). 

        WHEREAS,
Allegiant in its capacity as a direct air carrier under Parts 207, 212 and 380 of the regulations of the United States Department of Transportation ("DOT"), 14 C.F.R. Parts 207,
212 and 380, desires to provide air transportation services to Charterer to and from locations designated by Charterer; and 

        WHEREAS,
Charterer in its capacity as a Public Charter Operator under Part 380 of the DOT regulations, 14 C.F.R. Part 380, has a need for air transportation services and
desires to utilize air transportation services provided by Allegiant; 

        NOW
THEREFORE, in consideration of the promises and covenants contained herein, the Parties hereto, intending to be legally bound hereby, do agree as follows: 

1.     AIRCRAFT  

        Allegiant shall provide the air transportation services using the Aircraft listed in Exhibit B (the "Aircraft") or equivalent aircraft. 

2.     SERVICES  

        2.1   Allegiant
shall provide air transportation services (the "Services") as more fully described in Exhibit B from Laughlin, Nevada. Services are scheduled to begin
April 15, 2003. 

        2.2   Upon
request, Allegiant shall use commercially reasonable efforts to provide Charterer additional services. Such services shall be governed by this Agreement where
applicable or by special conditions agreed to by the Parties. 

3.     PRICE  

        In consideration for the Services provided by Allegiant under this Agreement, Charterer agrees to pay Allegiant the rates listed in Exhibit B. 

4.     TERM  

        The term of this Agreement (the "Term") shall commence April 15, 2003 and shall remain in full force and effect thereafter until December 31, 2005.
Services are scheduled to begin April 15, 2003. 

5.     REGULATORY APPROVALS AND DUTIES  

        5.1   Allegiant
and Charterer shall each hold all licenses, certificates, and permissions, including without limitation all DOT and United States Federal Aviation
Administration (the "FAA") approvals, 

Page 1 of 22

 

required
to fulfill their respective obligations specified in or contemplated by the terms of this Agreement. 

        5.2   Pursuant
to 14 C.F.R. Part 380 and other applicable regulations, Allegiant shall be responsible for its own compliance with DOT regulations, except as agreed to
by the Parties in Section 5.4, and shall defend and hold harmless Charterer from any fines, claims or penalties resulting from noncompliance with any governing laws, rules or regulations
associated therewith. 

        5.3   Pursuant
to 14 C.F.R. Part 380 and other applicable regulations, including the responsibility agreed to under Section 5.4, Charterer shall be responsible
for its compliance with DOT regulations, and shall defend and hold harmless Allegiant from any fines, claims or penalties resulting from noncompliance with any governing laws, rules or regulations
associated therewith, including its noncompliance with Section 5.4. 

        5.4   Charterer
shall be responsible to submit all public charter filings as required to the DOT without delay and no later than ten (10) days after the Schedule is
finalized pursuant to Section 6.1. Charterer shall provide a DOT conformed copy, including a Public Charter Number, to Allegiant no later than ten (10) days prior to the first flight
scheduled in the filing. 

        5.5   A
Tour Participation Agreement ("TPA") must be collected from each passenger of Charterer on all Public Charter flights. Charterer shall make arrangements for the
collection of TPAs through a representative or agent of Charterer. Notwithstanding the foregoing, Charterer shall at times request that Allegiant assume the responsibility to collect the TPAs. In such
cases, Charterer shall notify Allegiant with as much advance notice as possible and shall provide Allegiant with an adequate supply of TPAs to distribute and collect from the passengers. The signed
TPA signature forms shall be handed by Allegiant to a designee of Charterer upon the arrival of the flight. 

        5.6   As
applicable, Charterer shall furnish Allegiant in a timely manner with all documents to be furnished to Allegiant as required by applicable regulations. If Allegiant
becomes aware that Charterer has failed to comply with applicable regulations, Allegiant shall notify Charterer of the violation. Charterer shall have the opportunity to cure such violation within two
business days after receipt of the foregoing written notice. 

6.     OPERATIONAL BLOCK TIMES / SCHEDULING  

        6.1   Charterer
agrees to provide Allegiant a flight schedule (the "Proposed Schedule") at least ninety (90) days before the date of the first flight and the Proposed
Schedule period shall cover at least ninety (90) days. Upon receipt of the Proposed Schedule, Allegiant shall develop block time estimates for each flight ("Operational Block Times" or "Block
Hours") and these operational Block Times shall be provided to Charterer. (Operational Block Times are defined as the amount of time it takes from an aircraft's departure from the gate at the origin
airport until the aircraft's arrival at the gate at the destination airport). Allegiant and Charterer shall have fifteen (15) days from receipt of the Proposed Schedule to agree to the final
schedule ("the Schedule") and Operational Block Times. 

        6.2   There
may be changes made to the Schedule at the request of either Charterer or Allegiant. Both Parties agree to use their commercially reasonable efforts to agree on
any changes requested by the other Party. In the event changes are made by Charterer to the Schedule with less than seven (7) days notice, Charterer shall reimburse Allegiant for any
non-recoverable costs, if any, incurred by Allegiant in preparing to provide the Services as scheduled. However, Charterer shall have no obligation to Allegiant for changes to the Schedule
initiated or made by Allegiant. 

        6.3   The
Parties will work together to schedule major maintenance events in a manner that causes the least amount of inconvenience and cost to the Parties. 

Page 2 of 22

 

7.     MINIMUM BLOCK HOUR GUARANTEE  

        7.1   Charterer
agrees to pay for a minimum number of Block Hours, as described in Exhibit B (the "Minimum Block Hour Guarantee"). Flights involved in positioning the
Aircraft (ferry flights) shall count towards meeting the Minimum Block Hour Guarantee. Any Services provided for Charterer or its parent, subsidiary or affiliated companies' operations shall also
count toward meeting the Minimum Block Hour Guarantee. 

        7.2   Charterer
shall pay Allegiant pursuant to Section 8.1, for Services to be operated pursuant to the Schedule. Charterer shall pay Allegiant based on standardized
block times in Exhibit A. 

        7.3   Within
ten (10) days of the completion of each calendar quarter and annual period, Allegiant shall provide Charterer with a report that lists the Services
provided, by flight, during the subject quarter. If the Services provided fail to meet the Minimum Block Hour Guarantee, then Allegiant shall invoice Charterer (for the difference between the Block
Hours for the Services provided and the Minimum Block Hour Guarantee. Allegiant agrees to use flight factors, such as direct flight paths and proximate fuel stops, to minimize Block Hours.
[...***...] 

8.     PAYMENT TERMS  

        8.1   Charterer
shall pay Allegiant for the Services by depositing by the 1st day of each month (the "1st Payment Date") an amount equal to the projected cost for Services as
calculated by the flights and Block Hours to be provided under the Schedule based on the standardized block hours of Exhibit A from the 16th day of the month through the end of that same month
(the "1st Billing Period"). Charterer will deposit by the 16th day of each month (the "2nd Payment Date"), an amount equal to the estimated cost for Services as calculated by the flights and Block
Hours to be provided under the Schedule based on the standardized block hours of Exhibit A from the 1st day through the 15th day of the following month (the "2nd Billing Period"). All deposits
shall be made by wire transfer to Allegiant's DOT approved escrow account listed in Exhibit D. Allegiant shall provide Charterer a copy of the DOT letter approving the escrow account. The
Parties agree that payment for each flight shall only be released from the DOT escrow upon completion of the flight (from the origin airport to the destination airport). 

        8.2   All
reimbursable expenses, including but not limited to certain catering, liquor, insurance and PFC charges (defined in Section 9.3), shall be invoiced in arrears
monthly by Allegiant to Charterer for payment by wire transfer to Allegiant's operating account listed in Exhibit E. Reimbursable expenses shall be invoiced each month and Charterer shall remit
payment within 15 days of receipt of invoice. In the event that Charterer fails to pay within 15 days of receipt of invoice, Charterer shall pay a late charge equal to 5% of the invoice
amount. All invoices for reimbursable expenses shall list the expenses by flight wherever possible. 

        8.3   All
payment terms are subject to the terms and conditions of Section 25 herein. 

        8.4   Allegiant
represents and warrants that it will maintain the DOT escrow at all times and notify Charterer of any changes to the DOT escrow. 

        8.5   In
the event that Charterer fails to make payment when due under Section 8.1, and such failure to make payment is not cured within five days, Allegiant shall have
the right to cancel flights scheduled on the eleventh day proceeding that date and such right shall continue until Allegiant has received payment in full under Section 8.1. Any flights
cancelled due to non-payment under Section 8.1 shall in no way limit or excuse Charterer's obligation under the Minimum Block Hour Guarantee. 

Page 3 of 22

 

9.     TAXES AND OTHER CHARGES  

        9.1   Charterer
shall be responsible for the collection and payment of any and all federal, state and local excise taxes (including federal segment fees) imposed upon the
purchase of air transportation. Charterer agrees to indemnify, defend and hold harmless Allegiant from and against any claims made, or penalties or fines imposed as a result of any act or omission
relating to collection or payment of such taxes (including, but not limited to attorneys' fees, costs and expenses incurred in connection therewith) arising out of the performance of Services under
this Agreement, unless arising from Allegiant's negligence, misconduct or false information. 

        9.2   Allegiant
shall be responsible for the payment of any security charges that are assessed on a per passenger basis. Allegiant agrees to indemnify, defend and hold
harmless Charterer from and against any claims made, or penalties or fines imposed as a result of any act or omission relating to the payment of such charges (including, but not limited to attorney's
fees, costs and expenses incurred in connection therewith) arising out of the performance of Services under this Agreement. 

        9.3   Allegiant
shall be responsible for the remittance of payment of all passenger facility charges ("PFC") imposed by airports on Charterer's passengers carried by
Allegiant. Notwithstanding the foregoing, Charterer shall be responsible for the collection of these charges from its passengers and for transmittal of same to Allegiant, and for reimbursing outlays
made by Allegiant for these charges. Allegiant shall invoice Charterer pursuant to Section 8.2 above. 

        9.4   Charterer
and Allegiant each warrant to the other that any commissions that are or will become due to any third party in connection with this Agreement or its
performance hereunder shall be payable at that Party's sole expense. 

10.   FUEL  

        10.1 [...***...]

11.   STATIONS  

        11.1 Allegiant
is responsible for station charges (as described in Exhibit B, Section 2) and shall not levy any surcharges against Charterer for stations to or
from any U.S. city. Charterer agrees to work in good faith with Allegiant to minimize stations costs, including the review of feasible alternative airports identified by Allegiant. 

        11.2 In
certain instances, Charterer may desire to fly to or from a city in Canada or Mexico. In these cases Charterer shall pay for the portion of station costs per round
trip associated with those flights that are in excess of [...***...]. 

12.   LIQUOR  

        12.1 Alcoholic
beverages shall be available at a nominal cost to passengers on all flights. Allegiant shall purchase the alcoholic beverages
[...***...] 

        12.2 Allegiant
shall provide alcoholic beverages to certain passengers as designated by Charterer at no cost to the passenger. These passengers shall present coupons to
Allegiant personnel in exchange for free alcoholic beverages. Allegiant shall invoice Charterer at its cost, pursuant to Section 8.2, the amount due for alcoholic beverages provided at no
charge to passengers. 

13.   CATERING  

        The Price for Services provided by Allegiant includes catering as described in Exhibit B. Allegiant may be able to provide other catering alternatives and
will attempt to do so at Charterer's direction, but the expense incurred by Allegiant, if any, of additional catering shall be invoiced to and be borne 

Page 4 of 22

 

solely
by Charterer. Allegiant shall invoice Charterer pursuant to Section 8.2 for any additional catering expenses. If Charterer supplies the catering at its sole expense, there shall be no
reimbursement due to Allegiant. 

14.   PERFORMANCE STANDARDS  

        14.1 Allegiant
agrees to perform the Services safely and professionally in accordance with the highest standards of the air transportation industry and in full compliance
with all applicable federal, state and local laws and regulations. 

        14.2 Allegiant
represents and warrants that they own or lease the Aircraft at all times. Allegiant shall at all times have exclusive operational control of the Aircraft
performing the Services. Allegiant represents and warrants that they are the direct air carrier, unless substitute aircraft is provided pursuant to Section 16. Allegiant shall be charged with
responsibility for decisions with respect to the suitability of the Aircraft, weather conditions, flight conditions and any other decisions or issues relating to control and direction of the
activities associated with the flight of the Aircraft. Under no circumstances shall Charterer or anyone other than Allegiant have the right to countermand or issue any directive pertaining to the
foregoing activities and issues. 

        14.3 Allegiant
shall at all times maintain the Aircraft in an airworthy condition in accordance with its FAA-approved maintenance program. Allegiant shall clean
the interior of the Aircraft prior to each flight and the exterior on an as-needed basis. 

        14.4 Each
Allegiant pilot shall hold current and valid pilot licenses, be duly rated and qualified by the FAA, and be fully trained for operation of the Aircraft. 

        14.5 All
cabin crew personnel shall be courteous to each passenger, maintain good grooming and hygiene standards, wear easily identifiable full uniform outfits that are
professional in appearance in a manner similar to the standards of cabin crews for nationally recognized commercial passenger airlines, and shall not make any negative comments with respect to
Charterer, its affiliates or Allegiant. 

        14.6 Allegiant
shall maintain in a current status all operating certificates, permits and licenses issued by all appropriate regulatory authorities and shall be in full
compliance with applicable regulations, standards, agency directives and laws and shall indemnify and defend Charterer, its managers, officers, directors, parents, employees, agents, and subsidiaries
from and against any fines, penalties or claims resulting from noncompliance hereunder. 

        14.7 Upon
request by Charterer, Allegiant will make available for inspection its records and data concerning accidents, violations, safety, licensing, regulatory matters and
other matters relevant to the welfare and safety of passengers. 

        14.8 Allegiant
agrees to meet the following operational performance metrics (the "Performance Metrics"): (1) on-time performance of
[...***...], as measured by arrivals within 15 minutes of scheduled arrival time; and (2) completion factor of [...***...]. Allegiant's
performance shall be measured at the completion of every calendar quarter (January 1 - March 31; April 1 - June 30; July 1 - September 30; and
October 1 - December 31). Within ten days of the completion of each quarter, Allegiant shall provide Charterer a report of its performance as measured by the Performance Metrics. Such
report shall include FAA weather reports relied on by Allegiant to justify delays or cancellations caused by weather. If Allegiant is deficient in meeting the Performance Metrics during a quarter, it
shall have a [...***...]day period, commencing with the first day of the ensuing quarter to improve its performance so as to meet or exceed the Performance Metrics measured
during that [...***...]day period. If Allegiant is unable to do so, Charterer shall have the right to cancel this Agreement upon [...***...] written
notice. Flight cancellations or delays that are due to force majeure reasons (except for delays or cancellations under Section 27), weather conditions, air traffic control or other causes
outside 

Page 5 of 22

 

Allegiant's
reasonable control or due to the request of Charterer shall not be included in measuring performance against the Performance Metrics. 

        14.9 In
the event that Charterer causes a flight to be delayed and it results in Allegiant being unable to provide Services on that day or as scheduled the following day due
to crew duty-time limitations and/or other Federal Aviation Regulations reasons, Charterer will be liable to Allegiant for the reimbursement of costs incurred by Allegiant as a result of
such delay. In the event a trip is cancelled due to the foregoing, the cancelled trip shall not be charged against Allegiant's Performance Metrics and Charterer shall have no right of reimbursement
for payment made pursuant to Section 8.1 for such cancelled flight. 

        14.10 Exhibit C
shall govern the liability and treatment of passengers in the event of delays, cancelled flights or irregular operations. 

        14.11 Allegiant
shall notify Charterer at least thirty (30) days in advance of the identity, location and contact information for the ground handling agent that will
be contracted by Allegiant at each airport that appears on the Schedule. 

        14.12 Charterer
shall send via facsimile to Allegiant's Dispatch Office, at least 48 hours before each flight is scheduled, a copy of the latest flight manifest. Any
changes made to the manifest shall be communicated by Charterer to Allegiant's Dispatch Office on a continuous basis up until the flight departure time. 

15.   SUBCONTRACTORS  

        All Services, or any portion thereof, may be subcontracted by Allegiant to a third party. However, Allegiant shall remain liable to Charterer hereunder for the
performance of all terms of this Agreement as if such sub-contracting had not occurred. Allegiant shall provide written notice to Charterer no less then two weeks prior to engaging in any
subcontracting agreement with a third party. 

16.   CANCELLATION/SUBSTITUTE AIRCRAFT  

        Allegiant may cancel a flight due to weather conditions without any reduction in the Minimum Block Hour Guarantee. Except under emergency situations (subservice
arrangements), Allegiant shall notify Charterer of its intention to use any new carrier for transportation hereunder at least fourteen (14) days prior to commencement of utilization of the
carrier. No flights shall commence until each carrier utilized hereunder has executed a Supplementary Agreement with Charterer, a copy of which is attached as Exhibit F, and has submitted an
Insurance Certificate in compliance with the insurance requirements of the Supplementary Agreement. Allegiant agrees that substitute aircraft shall have the minimum number of passenger seats required
hereunder. In the event of cancellation by Allegiant for cause other than force majeure, Allegiant will use its best efforts to provide a replacement flight, fuel and ground handling at no additional
cost and if Allegiant fails to provide a replacement flight, then Allegiant shall pay Charterer a full refund for the cost of such flight. 

17.   NO-SHOW PASSENGERS  

        Allegiant shall not be responsible or liable for the transportation of Charterer's passengers who fail to report at the specified check-in point at
the departure airport at least thirty (30) minutes prior to the scheduled departure time of a flight, or who are, through no fault of Allegiant, not aboard at the time of scheduled departure.
Allegiant may depart as scheduled and shall in no way be responsible for or to such individual or Charterer, and Allegiant shall be deemed to have completed its contractual obligation to Charterer. 

Page 6 of 22

 

18.   BAGGAGE AND HAZARDOUS MATERIALS  

        18.1 Baggage
limitations are prescribed by government regulations, airport regulations and Allegiant's and Charterer's policies. Allegiant shall provide required baggage
identification tags and claim checks to be distributed to passengers. 

        18.2 Allegiant
assumes liability only for passenger baggage actually received by a representative of Allegiant from the individual passenger at the departing airport. Limit
of baggage liability shall be as prescribed by applicable DOT regulations (14 C.F.R. Part 254). As between Charterer and Allegiant, Charterer assumes all responsibility for baggage in
possession of transfer companies engaged by Charterer. Charterer agrees that Allegiant is not liable for property not delivered to it and agrees to indemnify, defend and hold harmless Allegiant from
any claims brought against it by third parties alleging loss or damage to such baggage. 

        18.3 UNDER NO CIRCUMSTANCE SHALL ALLEGIANT ACCEPT FOR TRANSPORTATION IN CHECKED OR HAND-CARRIED BAGGAGE, OR AS CARGO, NOR MAY ANY
PASSENGER BRING ABOARD ALLEGIANT'S AIRCRAFT, ANY ARTICLE CONSTITUTING "HAZARDOUS MATERIAL", DEFINED AS ANY ARTICLE OR SUBSTANCE THE TRANSPORTATION OF WHICH BY AIR IS PROHIBITED,
RESTRICTED OR OTHERWISE AFFECTED BY ANY RULE OR REGULATION OF THE DOT, INCLUDING THE RESEARCH AND SPECIAL PROGRAMS ADMINSITRATION (the "RSPA"), THE FAA, OR THE INTERNATIONAL CIVIL AVIATION
ORGANIZATION (the "ICAO").

19.   FORCE MAJEURE  

        Both parties shall be excused from all performance and or payment obligations when the ability of either party to perform according to the terms of this Agreement
has been impeded as a result of, or arising from, any of the following: governmental or airport laws, regulations, orders, war, acts of terrorism, acts of God, riots, civil disobedience; or national
emergencies (hereinafter referred to as "Force Majeure conditions"). Any Force Majeure conditions shall be said to have impeded a parties ability to perform when it has required that party to cancel a
scheduled charter flight. The parties shall only be excused from their performance and/or payment obligations during the duration of the Force Majeure condition. Either party shall promptly notify the
other of any such conditions which may result in its inability to resume its obligations upon the cessation of the Force Majeure condition. Each party shall make every effort to resume performance, at
the earliest time that it is safe and prudent to do so. 

20.   INSURANCE AND INDEMNITY  

        20.1 Allegiant
shall have in effect with financially viable and reputable insurers an aircraft liability insurance policy, including passenger liability coverage, having a
liability limit of not less than Three Million Dollars ($3,000,000.00) per seat for any one occurrence for any Aircraft used under this Agreement. Additionally, Allegiant's aforementioned liability
insurance policy shall provide coverage for any liability to third parties outside of the Aircraft for any Aircraft used under this Agreement. Allegiant shall cause its insurer to
[...***...] to name without limitation, Charterer, its parents, managers, officers, directors, employees, agents, subsidiaries and affiliated companies as additional insureds
on all liability policies required hereunder or furnished in connection with Services provided hereunder, and shall deliver to Charterer a valid certificate of insurance ("Certificate") and a copy of
the insurance policy endorsement evidencing compliance coverage herewith at least fourteen (14) days prior to the commencement of Allegiant's Services hereunder. This insurance protection
afforded to the additional insureds shall provide the same protection and coverage as is provided to the primary insured on the policy and such insurance shall be primary and not secondary to any
existing insurance coverage of any additional insured. Such Certificates and endorsements shall contain provisions requiring the insurance carrier to give at least 30 days prior written notice
to Charterer of any reduction in, or cancellation of, insurance coverage that has been so certified [...***...] Allegiant's 

Page 7 of 22

 

failure
to provide any Certificate required herein shall not relieve Allegiant of any obligation to cause the insurance coverage described herein to be provided. It shall be Allegiant's obligation to
make certain that itself and its insurers have complied with the provisions of this Section. 

        20.2 Allegiant
hereby agrees to defend, indemnify, release, save free and hold harmless Charterer, its parent and affiliated companies, their managers, agents, employees,
officers, directors and subsidiaries from and against any and all claims, suits, damages, liabilities, fines, penalties, proceedings, orders, decrees, settlements, and judgments of any kind or nature
by or in favor of anyone whomsoever and from and against any and all costs and expenses, including attorneys fees, resulting from or in connection with loss of life, bodily injury or damage to
property arising directly or indirectly, out of or from or on account of the provision of Services pursuant to this Agreement, except when such claims, suits, damages, liabilities, fines, penalties,
proceedings, orders, decrees, settlements, and judgments are due to the [...***...] Charterer, its subsidiaries, parent or affiliated companies, its managers, agents,
employees, officers, directors or contractors. This indemnification shall be insured against by Allegiant and shall not be limited or restricted by any other provision of this Agreement, including but
not limited to the insurance requirements. 

        20.3 Any
obligations of indemnification, insurance and confidentiality shall survive the termination of this Agreement. 

        20.4 Allegiant
shall invoice Charterer for the following insurance surcharges: (a) a [...***...] per passenger per segment fee (for passenger
liability), to be invoiced pursuant to Section 8.2; (b) a [...***...] per departure charge (for ground liability), to be invoiced pursuant to Section 8.1;
and (c) a [...***...] annual charge (for war risk hull), to be invoiced in the amount of [...***...] each twice monthly pursuant to
Section 8.1. [...***...] 

21.   LIABILITY  

        21.1 Allegiant
shall not, in any event, be liable for loss of use or indirect, special, incidental, consequential or exemplary damages to Charterer. 

        21.2 No
passenger shall be deemed a party to this Agreement nor have any rights hereunder. Charterer shall indemnify, defend and hold harmless Allegiant, its parent,
subsidiaries and affiliated companies, and their officers, directors, employees, agents and representatives against any claims brought by passengers against Allegiant, except when such claims, suits,
damages, or liabilities are due to the gross negligence or willful misconduct of Allegiant, its officers, directors, employees, agents or representatives. 

22.   NOTICES  

        All notices required or permitted under this Agreement shall be in writing and shall become effective on the date of receipt and shall be hand delivered or faxed
(with receipt confirmed 

Page 8 of 22

 

simultaneously)
or mailed by registered or certified first class mail, return receipt requested, addressed to: 

	Allegiant:	 	Allegiant Air, Inc.

3291 N. Buffalo Drive, Suite 8

Las Vegas, Nevada 89129

Attn: Linda Marvin, CFO

Phone (702) 256-4332

Fax (702) 256-7209
	

with a copy to:	
 	

Allegiant Air, Inc.

3291 N. Buffalo Drive, Suite 8

Las Vegas, Nevada 89129

Attn: Andrew C. Levy, Secretary and Treasurer

Phone (702) 256-4332

Fax (702) 256-7209
	

Charterer:	
 	

Harrah's Laughlin, Inc.

2900 South Casino Drive

Laughlin, Nevada 89029

Attn: Tom Jenkin, Sr. Vice President and General Manager

Phone (702) 298-4600

Fax (702) 298-3023
	

With a copy to:	
 	

Harrah's Entertainment, Inc.

One Harrah's Court

P.O. Box 98905

Las Vegas, Nevada 89193-8905

Attn: Uri L. Clinton

Phone (702) 407-6250

Fax (702) 407-6285

This copy, although mandatory, does not constitute notice.

        Such
addresses may be changed by written notice to the other party at any time. 

23.   INDEPENDENT CONTRACTOR, DIRECTION AND CONTROL  

        23.1 Allegiant
is an independent contractor with respect to all Services performed hereunder, and under no circumstances shall Allegiant or its directors, officers, agents,
affiliates, employees, or subcontractors, be deemed for any purpose to be the agent, servant, employee, "borrowed servants" or representative of Charterer in the performance of all or any part of the
work or Services performed hereunder. Charterer hereby expressly foregoes and disclaims any contractual or other right to direct or control Allegiant or its employees or agents for any work or
Services performed pursuant to this Agreement and is interested only in the results to be obtained. 

        23.2 No
agency relationship is created or intended by this Agreement. Charterer has no authority to act on Allegiant's behalf, represent Allegiant in any manner, or bind
Allegiant to any agreement or undertaking. 

Page 9 of 22

   24.   CONFIDENTIALITY  

        24.1 Allegiant's
employees, officers, agents, directors and subcontractors shall treat as confidential and proprietary and not disclose to others during or subsequent to the
term of this Agreement, except as necessary to perform this Agreement, and then only on a confidential basis satisfactory to Charterer, any information whether oral or written of any description
whatsoever, including, but not limited to, any technical information or data regarding Charterer or Charterer's plans, programs, marketing, strategies, facilities, processes, products, costs,
equipment, operations or customer lists which are designed or reasonably understood to be confidential or proprietary at the time divulged to Allegiant, its employees, officers, agents, directors or
subcontractors in the performance of this Agreement. Additionally, Allegiant may not use any of the confidential or proprietary information for any purposes other than to fulfill its obligations under
the terms of this Agreement, nor may Allegiant use any proprietary or confidential information for any of its own advertising, marketing, or other business purposes not connected with its obligations
under this Agreement. Notwithstanding the foregoing, Allegiant may disclose this Agreement and other information to governmental agencies (FAA, DOT, GCB, SEC and IRS) as reasonably required and to any
financial institution in connection with financial services. 

        24.2 Charterer's
employees, officers, agents, directors and subcontractors shall treat as confidential and proprietary and not disclose to others during or subsequent to the
term of this Agreement, except as necessary to perform this Agreement, and then only on a confidential basis satisfactory to Allegiant, any information whether oral or written of any description
whatsoever, including any technical information or data regarding Allegiant or Allegiant's plans, programs, marketing, strategies, facilities, processes, products, costs, equipment, operations or
customers which are designed or reasonably understood to be confidential or proprietary at the time divulged to Charterer, its employees, officers, agents, directors or subcontractors in the
performance of this Agreement. Notwithstanding the foregoing, Charterer may disclose this Agreement and other information to governmental agencies (FAA, DOT, GCB, SEC and IRS) as reasonably required
and to any financial institution in connection with financial services. 

25.   GAMING REGULATORY REQUIREMENTS  

        Allegiant acknowledges that this Agreement is subject to the registration and other licensing, permitting or approval requirements imposed on Allegiant by the
Nevada Gaming Control Board (GCB) and, if applicable, any manufacturer, distributor or supplier of the goods to be delivered hereunder. Allegiant hereby agrees that Charterer may conduct
investigations of Allegiant, its owners and key employees regarding financial information and legal proceedings. In the event any material information provided by Allegiant, its owners or key
employees to Charterer is false or omitted, Charterer may immediately terminate this Agreement. Allegiant shall be solely responsible for securing all required registrations, permits, approvals and
licenses from GCB or otherwise, and failure to obtain or maintain same shall be an event of default under this Agreement. If (i) GCB, at any time, requires Allegiant or any related party to be
found suitable and Allegiant receives an initial decision finding Allegiant or related party unsuitable, or (ii) GCB, at any time, disapproves or objects to this Agreement in any way, revokes
any approval or registration for the transaction or suspends any business activity between Allegiant and Charterer, or (iii) GCB denies, suspends or revokes any registration, license, permit or
approval sought by or obtained by Allegiant or related party, or Allegiant or a related party is placed by GCB on a restricted list or similar list that restricts Charterer from transacting business
with Allegiant or a related party, then Charterer may, in its sole discretion and, in addition to any other remedy permitted hereunder and pursuant to law, terminate this Agreement without liability
to Allegiant or to any third party, whether or not Allegiant may pursue or is pursuing any rights to challenge any action or inaction of GCB, in which case termination shall become effective on the
date of written notice thereof to Allegiant. Allegiant acknowledges that this 

Page 10 of 22

 

Agreement
is subject to the continuing oversight and jurisdiction of GCB and any orders, directives or mandates issued thereby to Allegiant or Charterer relating to any terms of this Agreement,
including the payment terms and, further, agrees to be bound by the terms of any such GCB order, directives or mandates. 

26.   DEFAULT AND EARLY TERMINATION  

        26.1 Except
as otherwise set forth herein, in the event of a monetary default by Charterer which is not cured within [...***...] of written notice
thereof, Allegiant may terminate this Agreement. Except as otherwise set forth herein, in the event of a material default by Allegiant, which is not cured within [...***...] of
written notice thereof, Charterer may either terminate this Agreement or offset any monetary amounts owed by Allegiant in its subsequent payment under section 8.1 or 8.2. 

        26.2 The
following events may justify immediate termination of this Agreement by the non-affected Party: (i) the making by either Party of any general
assignments for the benefit of creditors; (ii) the filing by either Party of or a petition for the reorganization or arrangement under any laws relating to bankruptcy (unless, in the case of a
petition filed against either Party, the same is dismissed within thirty (30) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of such
Party's assets; (iv) the attachment, execution or other judicial seizure of substantially all of such Party's assets; or (v) either Party's convening of a meeting of any creditors or any
class thereof for the purpose of effecting a moratorium upon or composition of such party's debts, or any class thereof. 

        26.3 Each
Party shall have the ability to terminate this Agreement by giving the other Party [...***...] months advance written notice. Additionally,
Charterer may immediately terminate this Agreement at any time upon payment to Allegiant of [...***...] and the payment in full of all outstanding amounts due hereunder. 

        26.4 In
the event that either Party's authorization under the FAA and/or the DOT is revoked, cancelled or suspended, wholly or in part, the non-impaired Party
may immediately terminate this Agreement by giving the impaired Party notice thereof. 

        26.5 The
rights of termination contained in this Section are in addition to any other remedies available to any of the Parties hereunder. 

        26.6 Any
termination of the Agreement by either Party pursuant to the terms herein shall be without prejudice to the claims of either Party up to the date of termination.
The rights and obligations of the Parties shall cease on the date of termination, except those obligations and debts arising prior to the date of termination, including but not limited to any amounts
owed to Allegiant for Services provided, the insurance obligations under Section 20, and any amounts owed to Charterer hereunder. 

27.   SERVICES FOR THIRD PARTIES  

        27.1 Allegiant
agrees that Charterer shall have priority use of the Aircraft. Nonetheless, Allegiant reserves the right to utilize the Aircraft to provide air transportation
services to third parties if it does not impact its ability to provide Services to Charterer. In the event that Allegiant arranges to provide air transportation services to another party using the
Aircraft, it agrees to notify Charterer with as much advance notice as possible. If services provided to a third party with the Aircraft causes a delay or flight cancellation for Charterer, this delay
or flight cancellation shall be the sole responsibility of Allegiant, regardless of whether it would fall under the definition of force majeure. 

        27.2 Notwithstanding
the foregoing, Allegiant is prohibited from providing air transportation services to any hotel or casino entity in Laughlin, Nevada without the prior
written consent of Charterer. 

Page 11 of 22

 

        27.3 Allegiant
represents to Charterer that, as of the date of this Agreement, its only scheduled commercial air service is as follows: Las Vegas to/from Fresno, CA;
Colorado Springs, CO; and Wichita, KS. [...***...] 

        [...***...] 

        Any
additional and/or different terms (including, but not limited to, [...***...] reached pursuant to subsequent negotiations according to this provision shall be
considered a modification of this Agreement. All such modifications must be memorialized according to Section 28.7 of this Agreement. 

28.   MISCELLANEOUS  

        28.1 If
a litigated dispute should arise herein between Allegiant and Charterer, the prevailing Party shall be entitled to receive from the non-prevailing Party,
in addition to any other compensation or award, all reasonable attorney fees and all costs of suit or claim therein. 

        28.2 This
Agreement and all Exhibits shall be governed by the laws of the State of Nevada. Venue shall solely lie in Clark County, Nevada, and the Parties hereto submit to
such jurisdiction. 

        28.3 In
the event that one or more of the provisions of this Agreement are held invalid, illegal, or unenforceable, the remaining provisions of this Agreement shall be
unimpaired. 

        28.4 Neither
Party will use for any commercial purpose customer/passenger names and addresses that are procured by the other Party. 

        28.5 This
Agreement is entered into by Charterer and Allegiant on their own behalf. 

        28.6 Charterer
shall, at any time from the date hereof through one (1) year after the termination of this Agreement, be entitled to an audit of Allegiant's records to
determine Allegiant's compliance with the terms of this Agreement. Charterer shall conduct any audit during normal business hours at the principal place of business of Allegiant or at another location
designated by Allegiant. If it shall be determined as a result of such audit that there has been non-compliance with any provision of this Agreement, Allegiant shall have thirty
(30) calendar days from the date Charterer gives it written notice of its non-compliance to cure such non-compliance. In the event the non-compliance is a
listed default that allows Charterer a different and/or shorter remedy, Charterer may utilize such remedy. In the event Allegiant fails to cure said non-compliance within said time frame,
Charterer may immediately terminate this Agreement. Should any non-compliance be found, Allegiant shall reimburse Charterer for the cost of the audit or Charterer may deduct the cost of
the audit from any funds owed to Allegiant under invoices issued by Allegiant pursuant to Section 8.2 of this Agreement. 

        28.7 This
Agreement, including its Exhibits attached hereto, constitute the entire agreement between Allegiant and the Charterer relating to the subject matter hereof and
supersedes all oral agreements or writings with respect hereto and may be altered, amended or modified only by a written instrument signed by an authorized officer of each of the Parties to this
Agreement. 

        28.8 Each
of the persons signing this Agreement warrants that he/she is authorized and has authority to execute this Agreement on behalf of his/her respective Party. 

        28.9 This
Agreement and all or any part of Allegiant's or Charterer's rights hereunder may not be assigned, transferred or otherwise conveyed by either Party in whole or in
part, except to a subsidiary, affiliated or parent company, without the prior written consent of the other Party. Notwithstanding the foregoing, Charterer may sell or assign all or a portion of the
passenger seats on any flight to third parties. 

        28.10 No
term or condition of this Agreement shall be deemed waived by either Party unless the waiver is in writing and is executed by the Party alleged to be bound by the
waiver. A waiver by either 

Page 12 of 22

 

Party
of a breach of any of the terms or conditions hereof will not constitute a waiver of any subsequent breach thereof or a waiver of any breach of any other term or condition. 

        IN
WITNESS WHEREOF, Charterer and Allegiant, by and through their duly authorized representatives, have executed this instrument as of the date first written above. 

	

 	
 	
Harrah's Laughlin, Inc.
	

 	
 	

By:	

/s/ Thomas M. Jenkin
 Thomas M. Jenkin

Senior Vice President & General Manager

Southern Nevada
	 	 	 	 

	

 	
 	
Allegiant Air, Inc.
	

 	
 	

By:	

/s/ Maurice J. Gallagher
 Maurice J. Gallagher, Principal
	 	 	 	 

	STATE OF Nevada	)
	 	) ss:
	COUNTY OF Clark	)

Page 13 of 22

 

        On
this 21st day of March, 2003, before me a Notary Public, personally appeared Thomas M. Jenkin personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person who executed the within instrument as                        on behalf of HARRAH'S LAUGHLIN, INC.,
the corporation that executed it. 

	 	 	 	/s/ Pier Washington
 Notary Public
	 	 	 	 
	 	 	 	 
	 	 	 	(SEAL)
 Notary Statement and/or Seal
	 	 	 	 

	STATE OF Nevada	)
	 	) ss:
	COUNTY OF Clark	)

        On
this 19th day of March, 2003, before me a Notary Public, personally appeared Maurice J. Gallagher personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person who executed the within instrument as Principal on behalf of ALLEGIANT AIR, INC., the company that executed it. 

	 	 	 	/s/ Jennifer Luce
 Notary Public
	 	 	 	 
	 	 	 	 
	 	 	 	(SEAL)
 Notary Statement and/or Seal

Page 14 of 22

   Exhibit A  

AIR CHARTER PROGRAM OPERATIONAL BLOCK HOURS—LAUGHLIN  

	CITY
 
	 	ST
	 	CODE
	 	BLOCK HOURS

TO LAUGHLIN
	 	BLOCK HOURS

FROM LAUGHLIN

	BIRMINGHAM	 	AL	 	BHM	 	3.74	 	3.24
	HUNTSVILLE	 	AL	 	HSV	 	3.70	 	3.21
	MOBILE	 	AL	 	MOB	 	3.66	 	3.18
	MONTGOMERY	 	AL	 	MGM	 	3.75	 	3.50
	LITTLE ROCK	 	AR	 	LIT	 	3.00	 	2.61
	MESA	 	AZ	 	IWA	 	0.80	 	0.80
	PHOENIX	 	AZ	 	PHX	 	0.83	 	0.83
	TUSCON	 	AZ	 	TUS	 	1.00	 	0.95
	BAKERSFIELD	 	CA	 	BFL	 	0.90	 	0.92
	BURBANK	 	CA	 	BUR	 	0.85	 	0.87
	FRESNO	 	CA	 	FAT	 	1.08	 	1.05
	LONG BEACH	 	CA	 	LGB	 	0.95	 	0.92
	MONTEREY	 	CA	 	MRY	 	1.20	 	1.40
	OAKLAND	 	CA	 	OAK	 	1.40	 	1.40
	ONTARIO	 	CA	 	ONT	 	0.80	 	0.75
	ORANGE COUNTY	 	CA	 	SNA	 	0.80	 	0.80
	PALM SPRINGS	 	CA	 	PSP	 	0.65	 	0.65
	REDDING	 	CA	 	RDD	 	1.47	 	1.50
	SACRAMENTO	 	CA	 	SMF	 	1.33	 	1.35
	SAN DIEGO	 	CA	 	SAN	 	0.92	 	0.85
	SAN JOSE	 	CA	 	SJC	 	1.42	 	1.40
	SANTA BARBARA	 	CA	 	SBA	 	1.00	 	1.00
	SANTA MARIA	 	CA	 	SMX	 	1.00	 	1.05
	STOCKTON	 	CA	 	SCK	 	1.23	 	1.25
	DENVER	 	CO	 	DEN	 	1.80	 	1.75
	PUEBLO	 	CO	 	PUB	 	1.73	 	1.55
	HARTFORD	 	CT	 	BDL	 	5.10	 	4.68
	FT LAUDERDALE	 	FL	 	FLL	 	5.02	 	4.35
	FT MEYERS	 	FL	 	FMY	 	4.76	 	4.12
	JACKSONVILLE	 	FL	 	JAX	 	4.60	 	3.88
	ORLANDO-SANFORD	 	FL	 	SFB	 	4.70	 	4.07
	TAMPA	 	FL	 	TPA	 	4.69	 	4.07
	ATLANTA	 	GA	 	ATL	 	4.30	 	3.80
	CEDAR RAPIDS	 	IA	 	CID	 	3.03	 	2.72
	DES MOINES	 	IA	 	DSM	 	2.75	 	2.58
	DUBUQUE	 	IA	 	DBQ	 	3.16	 	2.84
	SIOUX CITY	 	IA	 	SUX	 	2.52	 	2.26
	BOISE	 	ID	 	BOI	 	1.75	 	1.75
	CHICAGO	 	IL	 	MDW	 	3.70	 	3.30
	MOLINE	 	IL	 	MLI	 	3.25	 	3.00
	PEORIA	 	IL	 	PIA	 	3.33	 	3.00
	QUINCY	 	IL	 	UIN	 	3.04	 	2.72
	ROCKFORD	 	IL	 	RFD	 	3.34	 	2.80
	SPRINGFIELD	 	IL	 	SPI	 	3.22	 	2.89
	FORT WAYNE, IN	 	IN	 	FWA	 	4.20	 	3.40
	 	 	 	 	 	 	 	 	 

Page 15 of 22

 

	INDIANAPOLIS, IN	 	IN	 	IND	 	3.60	 	3.23
	SOUTH BEND, IN	 	IN	 	SBN	 	3.75	 	3.20
	EVANSVILLE	 	IN	 	EVV	 	3.50	 	3.20
	GARDEN CITY	 	KS	 	GCK	 	2.00	 	1.78
	LIBERAL	 	KS	 	LBL	 	2.13	 	1.78
	WICHITA	 	KS	 	ICT	 	2.48	 	2.27
	LOUISVILLE, KY	 	KY	 	SDF	 	3.78	 	3.28
	NEW ORLEANS	 	LA	 	MSY	 	3.58	 	3.42
	SHREVEPORT	 	LA	 	SHV	 	2.75	 	2.67
	BOSTON	 	MA	 	BOS	 	5.30	 	4.85
	WESTOVER	 	MA	 	CEF	 	5.10	 	4.69
	BALTIMORE	 	MD	 	BWI	 	5.12	 	4.40
	DETROIT	 	MI	 	DTW	 	4.35	 	3.80
	GRAND RAPIDS	 	MI	 	GRR	 	4.20	 	3.43
	MINNEAPOLIS	 	MN	 	MSP	 	3.10	 	2.83
	ROCHESTER	 	MN	 	RST	 	3.03	 	2.72
	KANSAS CITY	 	MO	 	MCI	 	3.00	 	2.60
	SPRINGFIELD	 	MO	 	SGF	 	2.70	 	2.58
	ST. LOUIS	 	MO	 	STL	 	3.25	 	2.95
	JACKSON	 	MS	 	HKS	 	3.24	 	2.91
	JACKSON	 	MS	 	JAN	 	3.25	 	3.10
	BILLINGS	 	MT	 	BIL	 	2.20	 	2.00
	BUTTE	 	MT	 	BTM	 	1.85	 	2.00
	GREAT FALLS	 	MT	 	GTF	 	2.15	 	2.23
	KALISPELL	 	MT	 	FCA	 	2.15	 	2.35
	CHARLOTTE	 	NC	 	CLT	 	4.25	 	3.95
	RALEIGH	 	NC	 	RDU	 	4.65	 	4.30
	WILMINGTON	 	NC	 	ILM	 	4.88	 	4.24
	BISMARK	 	ND	 	BIS	 	2.50	 	2.20
	FARGO	 	ND	 	FAR	 	2.90	 	2.53
	GRAND ISLAND	 	NE	 	GRI	 	2.60	 	2.15
	OMAHA	 	NE	 	OMA	 	2.50	 	2.40
	NEWARK	 	NJ	 	EWR	 	5.30	 	4.60
	ALBUQUERQUE	 	NM	 	ABQ	 	1.30	 	1.25
	ALBANY	 	NY	 	ALB	 	5.10	 	4.56
	BUFFALO	 	NY	 	BUF	 	4.67	 	4.05
	ROCHESTER	 	NY	 	ROC	 	4.80	 	4.16
	SYRACUSE	 	NY	 	SYR	 	5.10	 	4.15
	CINNCINNATI	 	OH	 	CVG	 	4.20	 	3.45
	CLEVELAND	 	OH	 	CLE	 	4.00	 	3.50
	COLUMBUS	 	OH	 	CMH	 	4.25	 	3.55
	DAYTON	 	OH	 	DAY	 	4.00	 	3.35
	OKALHOMA CITY	 	OK	 	OKC	 	2.25	 	2.08
	TULSA	 	OK	 	TUL	 	2.65	 	2.35
	EUGENE	 	OR	 	EUG	 	1.92	 	2.00
	PORTLAND	 	OR	 	PDX	 	2.00	 	2.17
	PHILADELPHIA	 	PA	 	PHL	 	4.90	 	4.50
	PITTSBURGH	 	PA	 	PIT	 	4.60	 	4.10
	READING	 	PA	 	RDG	 	4.75	 	4.42
	 	 	 	 	 	 	 	 	 

Page 16 of 22

 

	SCRANTON	 	PA	 	AVP	 	5.03	 	4.36
	PROVIDENCE	 	RI	 	PVD	 	5.10	 	4.81
	COLUMBIA	 	SC	 	CAE	 	4.45	 	3.85
	PIERRE	 	SD	 	PIR	 	2.47	 	2.10
	RAPID CITY	 	SD	 	RAP	 	2.17	 	1.84
	SIOUX FALLS	 	SD	 	FSD	 	2.80	 	2.40
	BRISTOL	 	TN	 	TRI	 	3.95	 	3.67
	CHATTANOOGA	 	TN	 	CHA	 	3.85	 	3.65
	KNOXVILLE	 	TN	 	TYS	 	4.04	 	3.50
	MEMPHIS	 	TN	 	MEM	 	3.19	 	2.86
	NASHVILLE	 	TN	 	BNA	 	3.68	 	3.19
	ABILENE	 	TX	 	ABI	 	2.20	 	2.05
	AMARILLO	 	TX	 	AMA	 	1.85	 	1.60
	AUSTIN	 	TX	 	AUS	 	2.50	 	2.40
	BEAUMONT	 	TX	 	BPT	 	2.95	 	2.58
	CORPUS CHRISTI	 	TX	 	CRP	 	2.70	 	2.50
	DALLAS	 	TX	 	DAL	 	2.70	 	2.40
	EL PASO	 	TX	 	ELP	 	1.50	 	1.45
	HARLINGEN	 	TX	 	HRL	 	2.92	 	2.75
	HOUSTON	 	TX	 	IAH	 	3.00	 	2.67
	LUBBOCK	 	TX	 	LBB	 	1.90	 	1.70
	MC ALLEN	 	TX	 	MFE	 	2.90	 	2.55
	MIDLAND/ODESSA	 	TX	 	MAF	 	1.85	 	1.75
	SAN ANGELO	 	TX	 	SJT	 	2.33	 	2.00
	SAN ANTONIO	 	TX	 	SAT	 	2.75	 	2.33
	WACO	 	TX	 	ACT	 	2.67	 	2.50
	WICHITA FALLS	 	TX	 	SPS	 	2.30	 	2.15
	NORFOLK	 	VA	 	ORF	 	4.70	 	4.35
	RICHMOND	 	VA	 	RIC	 	4.87	 	4.23
	ROANOKE	 	VA	 	ROA	 	4.53	 	3.93
	BELLINGHAM	 	WA	 	BLI	 	2.42	 	2.58
	PASCO	 	WA	 	PSC	 	2.07	 	2.15
	SEATTLE	 	WA	 	SEA	 	2.35	 	2.52
	SPOKANE	 	WA	 	GEG	 	2.17	 	2.15
	GREEN BAY	 	WI	 	GRB	 	3.50	 	3.20
	MADISON	 	WI	 	MSN	 	3.50	 	3.00
	MILWAUKEE	 	WI	 	MKE	 	3.50	 	3.11
	MOSINEE	 	WI	 	CWA	 	3.50	 	3.12
	CHARLESTON	 	WV	 	CRW	 	4.31	 	3.74
	CASPER	 	WY	 	CPR	 	1.85	 	1.75
	LARAMIE	 	WY	 	LAR	 	1.78	 	1.78
	VICTORIA	 	BC	 	YYJ	 	3.00	 	2.50

Page 17 of 22

 
Exhibit B  

	1.
	Aircraft 

One
(1) MD-87 with a single class configuration of 130 seats. 

	2.
	Services 

The
Services shall include the following: 

	a.
	Aircraft
(as described above);

	b.
	Crews—sufficient
crew personnel as prescribed by FAA regulations and to operate the Schedule, as amended from time to time;

	c.
	Insurance
(except surcharges as discussed in Section 20.4);

	d.
	Maintenance—all
line and heavy maintenance as required;

	e.
	Stations—all
services associated with passenger check-in and ramp handling, including airport facilities, landing fees and security screening charges;

	f.
	Deicing—all
deicing costs;

	g.
	Fuel—The
cost for fuel [...***...]; and

	h.
	Catering—soft
drinks, juice, coffee and dry snacks such as peanuts and pretzels. 

Other
services provided would be at an additional cost to Charterer. 

	3.
	Price
for Services 

[...***...]
per Block Hour

There will be a fee of $750 for any city that requires a fuel stop. 

	4.
	Minimum
Block Hour Guarantee 

[...***...]
Block Hours for January 1 - March 31 quarter (the "1st Quarter")

[...***...] Block Hours for April 1 - June 30 quarter (the "2nd Quarter")

[...***...] Block Hours for July 1 - September 30 quarter (the "3rd Quarter")

[...***...] Block Hours for October 1 - December 31 quarter (the "4th Quarter")

Total
of [...***...] Block Hours for 2003

Total of [...***...] Block Hours for 2004-2005 

	5.
	Reimbursable
Expenses 

At
cost. These include, but are not limited to catering (Section 13), liquor (Section 12), PFCs (Section 9.3), and insurance surcharges (Section 20.4). 

        IN
WITNESS WHEREOF, Charterer and Allegiant by and through their duly authorized representatives, have executed this instrument as of the date first written above. 

	Harrah's Laughlin, Inc.	 	Allegiant Air, Inc.
	    	 	 	 	 	 	 
	By:	 	/s/  THOMAS M. JENKIN      	 	By:	 	/s/  MAURICE J. GALLAGHER      
	 	 	
	 	 	 	

	 	 	Thomas M. Jenkin	 	 	 	Maurice J. Gallagher,
	 	 	Senior Vice President & General Manager,	 	 	 	Principal
	 	 	Southern Nevada	 	 	 	 
	    	 	 	 	 	 	 
	Date:	 	3/21/03	 	Date:	 	3/21/03

Page 18 of 22

   Exhibit C  

	A.
	Delays

Provided
passenger boarding of the aircraft has not then commenced, the following amenities shall be furnished to passengers delayed three (3) hours or more: 

	1.
	Meals
and Phone Calls

	a.
	3
to 6 Hour Delay: 1 meal and 1 3-minute phone call.

	b.
	6
to 8 Hour Delay: A 2nd meal.

	c.
	8
to 12 Hour Delay: A 3rd meal and a 2nd 3-minute phone call.

	d.
	12
Hours + Delay: A 4th meal.

	e.
	Monetary
allowances per passenger shall not exceed $7 for breakfast or snack, $10 for lunch, $15 for dinner.

	2.
	Hotel
Accommodations and Ground Transportation

	a.
	Eligible
passengers (as determined in accordance with "c" below) shall be provided hotel accommodations only to the extent (a) the period of delay has exceeded five
(5) hours after the scheduled departure time; (b) the delay has extended or will be extended beyond 2100 hours (9:00 PM) local time; and (c) there is no reasonable
expectation that departure will occur within four (4) hours thereafter; provided, that clause "b" shall not apply in the case of flights having a scheduled departure time later than
2100 hours local time. Hotel accommodations shall be standard category (e.g. Days Inn, Comfort Inn) unless no such accommodations are available, in which case the most economical accommodations
in the next higher category shall apply.

	b.
	Passengers
residing within a 50-mile radius of the airport at which a delay occurs shall not be provided hotel accommodations. In lieu thereof, such passengers shall
receive the value of ground transfer from the airport to their place of residence and return, via taxicab, airport van/minibus/limo service, or standard category rental car, whichever is most
economical. To the extent any such passengers have driven to the airport and prefer to use their own transportation, such passengers may elect to do so and be reimbursed for parking charges incurred
since arrival at the airport plus mileage to their place of residence and return at the rate of 20 cents per mile.

	c.
	If
the delay occurs in Laughlin, Nevada, all guests will be housed at Charterer's or its affiliated hotel, subject to availability.

	3.
	Costs

	(a)
	If
the delay is caused by force majeure reasons, weather conditions, air traffic control delays, other causes outside Allegiant's reasonable control, the costs shall be borne solely
by Charterer. Any costs incurred by Allegiant in such a situation shall be invoiced and reimbursed by Charterer pursuant to Section 8.2.

	(b)
	If
the delay is caused by any other reason than those listed in 3(a) above, then the costs shall be borne solely by Allegiant, provided that any stay at Charter's or an affiliate's
hotel shall be at cost.

	B.
	Cancelled
Flights 

        (1)   If
a flight is cancelled due to force majeure reasons or weather conditions, air traffic control, or other causes outside Allegiant's reasonable control, Allegiant shall
use its best efforts to 

Page 19 of 22

 

assist
Charterer in making alternative travel arrangements for Charterer's passengers. Allegiant shall invoice to and be reimbursed by Charterer for any costs incurred by Allegiant in making such
arrangements. 

        (2)   If
a flight is cancelled due reasons other than those listed in B (1) above, Allegiant shall be fully and solely responsible to make necessary alternative
transportation arrangements. If no such arrangements are made and the passengers are unable to make their trip, then Allegiant shall reimburse payments made to it by Charterer in advance for that
particular flight (or flights, in the event that the cancelled flight is for the first or outbound segment). 

	C.
	Irregular
Operations 

        (1)   If
a flight lands at an alternative airport and is unable to continue to its scheduled destination due to force majeure reasons, weather conditions, air traffic control
delays, or other causes outside Allegiant's reasonable control, Allegiant shall use its best efforts to make alternative transportation arrangements for Charterer's passengers. Allegiant shall invoice
to and be reimbursed by Charterer for any costs incurred by Allegiant in making such arrangements. 

        (2)   If
a flight lands at an alternative airport and is unable to continue to its scheduled destination due to reasons other than those listed in C (1) above,
Allegiant shall be fully and solely responsible to make necessary alternative transportation arrangements and it shall bear all associated costs. 

        IN
WITNESS WHEREOF, Charterer and Allegiant by and through their duly authorized representatives, have executed this instrument as of the date first written above. 

	Harrah's Laughlin, Inc.	 	Allegiant Air, Inc.
	

By:	

/s/  THOMAS M. JENKIN      
 Thomas M. Jenkin

Senior Vice President & General Manager

Southern Nevada	
 	

By:	

/s/  MAURICE J. GALLAGHER      
 Maurice J. Gallagher, Principal
	

Date:	

3/21/03	
 	

Date:	

3/21/03

Page 20 of 22

  

Exhibit F  

 
  SUPPLEMENTARY AGREEMENT    
    

        This Supplementary Agreement (this "Agreement"), dated as
of                        , 200    , is by and
between                        (Indirect Air Carrier or IAC),
Harrah's Laughlin, Inc. (Public Charter Operator or PCO), and                        (Direct Air Carrier or DAC). 

        WHEREAS,
the DAC has chartered to the IAC a                        [describe aircraft] aircraft
with                        passenger seats engaged for operation of public
charter flights serving various U.S. cities to/from                        ,
in                        -[month/date]; and
 

        WHEREAS,
the IAC has co-chartered to the PCO all of the above-identified seats for marketing and sale to the public by the PCO and for transportation of the PCO's passengers;
and 

        WHEREAS,
the DAC, the IAC and the PCO acknowledge and agree that the above charter and co-charter agreements are mutually beneficial to these three parties and to the
traveling public; 

        NOW
THEREFORE, in consideration of the mutual covenants contained herein, the DAC, the IAC and the PCO agree as follows: 

	1.
	In
the event the DAC reasonably determines that the IAC is in default under their above-described charter agreement, and provided (a) such default has remained uncured for two
(2) business days after the IAC's receipt of written notice thereof from the DAC and (b) such default reasonably places in question the operation of any flight, the DAC shall immediately
provide written notification of such uncured default directly to the PCO, with a copy of such notification to the IAC.

	2.
	In
the event the PCO reasonably determines that the IAC is in default under their above-described co-charter agreement, and provided (a) such default has remained
uncured for two (2) business days after the IAC's receipt of written notice thereof from the PCO and (b) such default reasonably places in question the operation of any flight, the PCO
shall immediately provide written notification of such uncured default directly to the DAC, with a copy of such notification to the IAC.

	3.
	In
the event of the PCO's receipt of notification from the DAC under Paragraph 1 above, or in the event of the DAC's receipt of notification from the PCO under
Paragraph 2 above, the DAC and the PCO shall proceed forthwith to negotiate and enter into a charter contract covering the flight or flights that have been placed in question by the IAC's
default; provided, that the charter price to be paid by the PCO to the DAC under such contract shall be equal to the all-inclusive co-charter price then in effect between the
PCO and the IAC; and provided further, that if the IAC cures its outstanding default or otherwise eliminates the outstanding question concerning the operation of the subject flight(s) prior to the
PCO's and the DAC's conclusion of a charter contract, and so notifies the PCO and the DAC, the PCO and the DAC shall terminate negotiations and all parties shall continue performing under their
original charter and co-charter agreements.

	4.
	The
parties acknowledge and consent to the possibility that the charter and co-charter agreements identified at the outset of this Supplementary Agreement may be superseded
by a charter contract between the PCO and the DAC under the circumstances set forth in Paragraphs 1-3 hereof, but only under those
circumstances. The IAC additionally consents to the PCO's release to the DAC of then-effective pricing information under the IAC/PCO co-charter agreement, but  only in the course of PCO/DAC charter
contract negotiations occurring under Paragraph 3 above. 

Page 21 of 22

 

	5.
	All
parties acknowledge that a copy of this Supplementary Agreement will be furnished to the U.S. Department of Transportation (DOT), Office of Aviation Analysis, Special Authorities
Division, in conjunction with DOT acceptance of the co-charter program described herein.

	6.
	In
the event the PCO and the DAC enter into a charter contract pursuant to Paragraph 3 above, DOT will be notified thereof in the form of a corresponding public charter
prospectus (or prospectus amendment) filed under Part 380 of DOT's Special Regulations.

	7.
	In
the event the circumstances set forth in Paragraphs 1-3 hereof arise, the terms of this Supplementary Agreement shall supersede any conflicting terms of the DAC/IAC
charter agreement and the IAC/PCO co-charter agreement. Any and all notices given under this Supplementary Agreement shall be transmitted by facsimile to the attention of the persons
signing below, and shall be effective upon transmission provided successful transmission of all pages is confirmed electronically by the sender's facsimile machine. This Supplementary Agreement may be
executed in identical counterparts, which together shall constitute one and the same instrument, and signatures transmitted via facsimile shall be valid for all purposes hereunder. 

        IN
WITNESS WHEREOF, the parties have executed this Supplementary Agreement as of the date first written above. 

Direct
Air Carrier: 

By:
                                         
                                Fax: 
(            )
            -                    

Printed Name and Title:
                                         
                                          
              

Indirect
Air Carrier: 

By:
                                         
                                Fax: 
(            )
            -                    

Printed Name and Title:
                                         
                                          
              

Public
Charter Operator: Harrah's Laughlin, Inc. 

By:
                                         
                                Fax: 
(            )
            -                    

Printed Name and Title: Thomas M. Jenkin, Senior Vice President & General Manager, Southern Nevada 

Page 22 of 22

  

 
 

AMENDMENT TO AGREEMENT    
    

        THIS AMENDMENT TO Air Transportation Charter Agreement ("Amendment") is made this 3 day of JUNE, 2004, by and between ALLEGIANT
AIR, INC., a California corporation with its principal offices at 3291 North Buffalo Drive, Suite 8, Las Vegas, Nevada 89129, ("Allegiant") and HARRAH'S
LAUGHLIN, INC., with its principal offices at 2900 South Casino Drive, Laughlin, Nevada 89029 ("Charterer") (Allegiant and Charterer shall each also be referred to as
the "Party" or collectively as the "Parties"). 

 
 

Recitals    
    

        WHEREAS, Allegiant and Charterer are parties to that certain Air Transportation Charter Agreement ("Agreement") executed by each on March 21, 2003; 

        WHEREAS,
Allegiant has experienced an unexpected increase in the cost of jet fuel over which it has no control; 

        WHEREAS,
Allegiant has indicated that the increase in its jet fuel costs has adversely affected its profitability; including its profits from services provided to Charterer pursuant to
the terms and conditions of the abovementioned Air Transportation Charter Agreement; 

        WHEREAS,
the existing aforementioned Air Transportation Charter Agreement between Allegiant and Charterer [...***...] 

        THEREFORE,
Allegiant and Charter agree to a limited modification of the abovementioned Air Transportation Charter Agreement as follows: 

Section 1: Limited Scope Of Modification.  

        It is expressly agreed that this Amendment only acts as a modification of Section 10.1 of the abovementioned Air Transportation Charter Agreement
previously entered into between the parties on March 21, 2003. All other terms, conditions, obligations, representations, warranties and provisions of the abovementioned Air Transportation
Charter Agreement are in no way modified by this Amendment and are still binding on the Parties. 

        The
Parties expressly agree that if the terms, conditions, provision, representations, or warranties of this Amendment are breached by either Party this Amendment will immediately become
null and void and the Parties will revert back to and be governed by Section 10.1 of the abovementioned Air Transportation Charter Agreement in its original unmodified form as of the date of
the breach. 

        This
Amendment shall be effective from June 1, 2004 until terminated pursuant to the terms of this Amendment. At any time, for any reason or no reason, upon thirty
(30) days written notice by Charterer to Allegiant, Charterer shall have the right to terminate this Amendment and to revert back to the original fuel cost arrangement in its unmodified form as
initially agreed to in Section 10.1 of the above mentioned Air Transportation Charter Agreement. The thirty (30) day notice required for Charterer to unilaterally terminate this
Amendment shall not be required in cases where this Amendment would other wise immediately or automatically terminate by operation in accordance with Section 1, 2, or 3 of this Amendment. 

Page 1 of 3

 

Section 2: Allegiant's Representations and Warranties.  

        It is expressly understood that this Amendment is the result of representations and warranties made by Allegiant to Charterer regarding the increasing cost it is
required to pay for jet fuel. Specifically, Allegiant makes the following representations and warranties: 

	A.
	Allegiant
represents and warrants that it is solely responsible for all cost associated with the jet fuel required to provide services to Charterer pursuant to the abovementioned Air
Transportation Charter Agreement;

	B.
	Allegiant
represents and warrants that it will disclose to Charterer, on a quarterly basis, the actual average price per gallon for each month after any and all discounts, price
reductions or any other consideration given to Allegiant by any of its third party vendors from whom it purchases jet fuel;

	C.
	Allegiant
represents and warrants that all money received from Charterer as a reimbursement for the monthly cost of its jet fuel will be used only for the flights it is required to
provide directly for Charterer pursuant to the above mentioned Air Transportation Charter Agreement; and 

        If
it is discovered that any one or more of the above representations and/or warranties are not true and or that the circumstance have materially changed so that at a future date the
representations and or warranties cease to be true the parties expressly agree to hold this Amendment null and void and to revert back to Section 10.1 of the abovementioned Air Transportation
Charter Agreement in its original unmodified form. 

Section 3: Procedure And Scope Of Reimbursement.  

        Allegiant shall only request a fuel reimbursement when the average monthly fuel cost is [...***...] per gallon or greater. All requests
must be made pursuant to the following terms and conditions: 

	A.
	All
requests for reimbursement shall be paid on a monthly basis based on a good faith estimate by Allegiant. Allegiant shall provide to Charterer, on a quarterly basis, copies of all
receipts, invoices and purchase orders for jet fuel purchased during the preceding quarter. If the amount of Charterer's jet fuel reimbursement for the quarter exceeds the amounts due pursuant to the
receipts, invoices and purchase orders then the overpayment will be offset in future jet fuel reimbursements by Charterer. If it is determined that the amount of reimbursement paid by Charterer for
the quarter is less than the amount due based on the receipts, invoices and purchase orders then Allegiant shall not be entitled to any additional payment for any of the months within that subject
quarter.

	B.
	Charterer
will make one deposit into an account identified by Charterer on a monthly basis. The amount of the deposit will be based on Charterer's sole discretion. The amount to be
deposited will be reported to Allegiant upon request. Additionally, upon Allegiant's request and pursuant to the following scale, Charterer will forward funds from the above mentioned account to
Allegiant:

	i.
	In
months where the average cost of jet fuel is equal to [...***...] per gallon but less than [...***...] gallon, Allegiant will receive
[...***...] of the total amount deposited into the above mentioned account for that particular month;

	ii.
	In
months where the average cost of jet fuel is equal to [...***...] per gallon but less than [...***...] gallon, Allegiant will
receive [...***...] the total amount deposited into the above mentioned account for that particular month; 

Page 2 of 3

 

	iii.
	In
months where the average cost of jet fuel is [...***...] per gallon or greater, Allegiant will receive up to [...***...] of the
total amount deposited into the abovementioned account for that particular month. However, in no case shall Allegiant receive more in additional funds from the above-mentioned account than the amount
it actually paid for jet fuel.

	iv.
	Any
funds remaining in the above mentioned account after funds have been paid to Allegiant or Allegiant has failed to request reimbursement of funds for any individual month will
revert back to Charterer, as its sole property;

	v.
	Allegiant
shall not be entitled to any funds from the above-mentioned account in months where the average cost of jet fuel is less then [...***...] per gallon.
It is expressly understood and agreed that Allegiant shall be totally responsible for payment of the cost of jet fuel where the average price of jet fuel for the month is less than
[...***...] per gallon;

	vi.
	Allegiant
shall not be entitled to payment of any additional funds in any month where the total distribution from the account is insufficient to cover the actual difference between
the target average monthly cost of [...***...] per gallon and the actual average monthly cost paid by Allegiant. It is expressly understood that there may be months where the
total amount deposited is less then the total amount actually paid by Allegiant. 

Section 4: Miscellaneous  

        This Amendment is made pursuant to and governed by the requirements, terms, and conditions of Section 28.7 of the above-mentioned Air Transportation
Charter Agreement. 

        All
capitalized terms used in this Amendment and not otherwise defined shall have the meanings set forth in the Agreement. 

        Except
as set forth in this Amendment, the terms and conditions of the above-mentioned Air Transportation Charter Agreement shall remain in full force and effect. In the event of any
conflict between the terms of the above-mentioned Air Transportation Charter Agreement and this Amendment, the terms of this Amendment shall control. 

        IN
WITNESS WHEREOF, the parties have executed this Amendment to be effective on the day and year first above written. 

	    	 	 	 	 
	ALLEGIANT AIR, INC.	 	HARRAH'S LAUGHLIN, INC.
	

By	

/s/  MAURICE J. GALLAGHER      
	
 	

By	

/s/  JOHN KOSTER      

	 	Maurice J. Gallagher, Principal	 	 	John Koster
	Title:	CEO/PRESIDENT
	 	 	Title: Senior V.P./General Manager, Laughlin

	

 	

 Approved as to form:
	

 	

/s/  URI L. CLINTON      
	
 	

5-24-04

	 	Uri L. Clinton	 	Date
	 	Senior Attorney	 	 

Page 3 of 3

  

 
 

SECOND AMENDMENT TO AGREEMENT    
    

        THIS SECOND AMENDMENT TO Air Transportation Charter Agreement ("Amendment") is made this
3rd day of February, 2005, by and between ALLEGIANT AIR, L.L.C., a Nevada limited liability company with its principal offices at
3301 North Buffalo Drive, Suite B-9, Las Vegas, Nevada 89129, ("Allegiant") and HARRAH'S LAUGHLIN, INC., with its principal offices
at 2900 South Casino Drive, Laughlin, Nevada 89029 ("Charterer") (Allegiant and Charterer shall each also be referred to as the "Party" or collectively as the "Parties"). 

 
 

Recitals    
    

        WHEREAS, Allegiant and Charterer are parties to that certain Air Transportation Charter Agreement ("Agreement")
executed by each on March 21, 2003; 

        WHEREAS, Allegiant and Charterer are parties to that certain Amendment to the abovementioned Agreement executed by each on
                        , 2004 ("First Amendment"); 

        WHEREAS, Allegiant and Charterer have agreed that it is in the interest of both parties to enter into a Second Amendment of the
abovementioned Agreement; 

        WHEREAS, Allegiant and Charterer have agreed to amend the above mentioned Agreement as required by Section 28.7 of said agreement; 

        WHEREAS, Allegiant and Charterer have agreed to immediately terminate upon execution of this Second Amendment the above mentioned First
Amendment to the Agreement as required by Section 1 of said First Amendment without the required thirty (30) day notice of termination; 

        THEREFORE, in consideration of the promises, covenants, and provisions below and the recitals above, Allegiant and Charter agree to a
limited amendment of the abovementioned Agreement and the immediately termination of the First Amendment as follows: 

Section 1: Limited Scope Of Second Amendment.  

        It is expressly agreed by Allegiant and Charter that this Amendment only acts as a modification of the following sections of the Agreement: the identification of
the Allegiant Air business entity; Section 4; Section 10.1; Section 27.3; Exhibit B Section 1; and Exhibit B Section 3. Additionally, pursuant to the
terms of this Second Amendment of the Agreement the First Amendment of the Agreement shall immediately terminate and be of no effect upon the execution of this Second Amendment. 

        It
is expressly agreed by Allegiant and Charter that all other terms, conditions, responsibilities, obligations, representations, warranties and provisions of the abovementioned
Agreement are in no way modified by this Second Amendment and will continue to be binding on each of the Parties. 

        This
Second Amendment shall be effective from January 6, 2005 until terminated pursuant to the terms of the Agreement. 

 
 

MODIFICATION OF AGREEMENT    
    

Section 2: Amendment Of the Allegiant Air's Corporate Identity  

        All references to "Allegiant" in the Agreement and all subsequent Amendments shall refer directly and only to: 

        Allegiant
Air, L.L.C., a Nevada Limited Liability Company with its principal offices at 3301 North Buffalo Drive, Suite B-9, Las Vegas, Nevada 89129. 

Page 1 of 4

 

        Allegiant
Air, L.L.C. shall be responsible for complying with all recitals, terms, conditions, and provision of the Agreement and all subsequent Amendments. 

Section 3: Amendment Of Term Section 4 Of The Agreement  

        Section 4 of the Agreement is hereby deleted in its entirety and replaced with the following: 

        The
term of this Agreement (the "Term") shall commence April 15, 2003 and shall remain in full force and effect thereafter until December 31, 2008, unless terminated
earlier pursuant to the terms of the Agreement. 

Section 4: Amendment Of Fuel Section 10.1 Of The Agreement.  

        Section 10 of the Agreement is hereby deleted in its entirety and replaced with the following: 

        Each
Party shall be responsible for the fuel cost based on the following schedule of fuel cost categories: 

        Fuel Cost Category 1:    The term Base Fuel Cost shall be defined and shall mean any initial cost of fuel up to and
including the first [...***...] per gallon of the average monthly fuel cost paid for fuel. In all cases Allegiant shall be fully and solely responsible for the Base Fuel Cost
required for the services it provides in furtherance of its obligations pursuant to the terms of the Agreement. 

        Fuel Cost Category 2:    The Base Fuel Cost shall be paid by Allegiant. Chareterer shall pay
[...***...] of the difference between the Base Fuel Cost and the actual average monthly fuel cost of fuel up to [...***...] per gallon. The
remaining [...***...] of the difference between the Base Fuel Cost and the actual cost of fuel up to [...***...] per gallon shall be paid by Allegiant. 

        Fuel Cost Category 3:    The Base Fuel Cost shall be paid by Allegiant. Chareterer shall pay
[...***...] of the difference between the Base Fuel Cost and the actual average monthly fuel cost of fuel between [...***...] up to
[...***...] per gallon. The remaining [...***...] of the difference between the Base Fuel Cost and the actual cost of fuel between
[...***...] up to [...***...] per gallon shall be paid by Allegiant. 

        Fuel Cost Category 4:    The Base Fuel Cost shall be paid by Allegiant. Chareterer shall pay
[...***...] of the difference between the Base Fuel Cost and the actual average monthly fuel cost of [...***...] per gallon or greater. 

        In
no case or in any of the above Fuel Cost Categories shall Charterer pay any of the Base Fuel Cost. It is hereby expressly agreed that the first [...***...] per
gallon average monthly fuel cost in each of the above Fuel Cost Categories shall be paid by Allegiant. Allegiant shall fully document the actual fuel cost in each of the above Fuel Cost Categories.
Charterer shall have the right to inspect and review all documents relating to the cost of fuel (including but not limited to actual receipts, invoices, and / or purchase orders). 

Section 5: Amendment Of Services For Third Parties Section 27.3 Of The Agreement.  

        The first paragraph of Section 27.3 of the Agreement is hereby deleted in its entirety and replaced with the following: 

        [...***...]

        The
second and third paragraph of Section 27.3 of the Agreement shall remain in effect unmodified by this Second Amendment. 

Page 2 of 4

 

Section 6: Amendment Of Aircraft Exhibit B Section 1 Of The Agreement.  

        Exhibit B Section 1 of the Agreement is hereby deleted in its entirety and replaced with the following: 

        Allegiant
shall provide one (1) MD-83 aircraft containing 150 seats for services it is obligated to provide pursuant to the terms, conditions, recitals and provisions
of the Agreement. 

Section 7: Amendment Of Price For Services Exhibit B Section 3 Of The Agreement.  

        Exhibit B Section 3 of the Agreement is hereby deleted in its entirety and replaced with the following: 

        Charterer
shall pay Allegiant [...***...] per Block Hour. 

Section 8: Amendment Of Minimum Block Hour Guarantee Exhibit B Section 4 Of The Agreement.  

        The following addition is made to Exhibit B Section 4 of the Agreement: 

        Total
of [...***...] Block Hours per year for the years of 2006, 2007, and 2008. 

Section 9: Termination Of First Amendment  

        Allegiant and Charterer have agreed to immediately terminate the above mentioned First Amendment to the Agreement as required by Section 1 of said First
Amendment without the required thirty (30) day notice of termination. 

        Allegiant
hereby expressly and immediately waives all rights to any contributions it would otherwise be entitled to pursuant to the First Amendment of the Agreement. 

Section 10: Miscellaneous  

        This Amendment is made pursuant to and governed by the requirements, terms, and conditions of Section 28.7 of the abovementioned Agreement. 

        All
capitalized terms used in this Amendment and not otherwise defined shall have the meanings set forth in the Agreement. 

        Except
as set forth in this Amendment, the terms, conditions, provisions, and recitals of the abovementioned Agreement shall remain in full force and effect. In the event of any conflict
between the terms of the abovementioned Agreement and this Second Amendment, the terms of this Second Amendment shall control. The First Amendment shall have no effect and shall be deemed immediately
terminated upon the execution of this Second Amendment. 

Page 3 of 4

 

        IN WITNESS WHEREOF, the parties have executed this Second Amendment to be effective on the day and year first above written. 

	

ALLEGIANT AIR, L.L.C.	
 	

HARRAH'S LAUGHLIN, INC.
	

By	

/s/  MAURICE J. GALLAGHER      	
 	

By	

/s/  JOHN KOSTER      
	 	
	 	 	

	 	Maurice J. Gallagher, Principal	 	 	John Koster
	Title:	C.E.O. President	 	Title:	General Manager
	 	
	 	 	 

	

 	

 Approved as to form:
	

 	

/s/  URI L. CLINTON      	
 	

2-2-05
	 	
	 	

	 	Uri L. Clinton	 	Date
	 	Senior Attorney	 	 

Page 4 of 4

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AIR TRANSPORTATION CHARTER AGREEMENT

SUPPLEMENTARY AGREEMENT

AMENDMENT TO AGREEMENT

Recitals

SECOND AMENDMENT TO AGREEMENT

Recitals

MODIFICATION OF AGREEMENT

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