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Exhibit 10.12  

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 OPERATING COMPANY, INC., with principal offices at One Harrah's
Court, Las Vegas, Nevada 89119 ("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 Reno, Nevada. Services are scheduled to begin on or
around 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 on or around April 15, 2003. 

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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, 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 operational 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 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. 

Page 2 of 16

 

        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. 

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 Operational Block Hours to be provided under the Schedule based on the standardized operational block hours of Exhibit A from the16th 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 Operational Block Hours to be provided under the Schedule based on the standardized operational 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, federal security charges 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 16

 

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 remittance of payment of all per passenger security charges imposed by the federal government for Charter'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. 

        9.3   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 16

 

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

Page 5 of 16

 

        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 16

   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 unconditionally
waive subrogation and 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 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 and unconditionally 

Page 7 of 16

 

waiving
the insurance carrier's rights of subrogation. Allegiant's 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 gross negligence or willful misconduct of 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 16

 

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 Operating Company, Inc.

c/o Harrah's Casino Hotel Reno

219 North Center Street

Reno, Nevada 89501

Attn: Michael Silberling, General Manager

Phone (775) 788-3647

Fax (775) 788-2644
	

With a copy to:	
 	

Harrah's Casino Hotel Lake Tahoe

P.O. Box 8

Stateline, Nevada 89449

Attn: Joe Hasson, General Manager

Phone (775) 588-6611

Fax (775) 586-6853
	

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, Esq.

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. 

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        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. 

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 

Page 10 of 16

 

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
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 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 / NOTIFICATION OF EXPANDED SERVICE  

        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. 

Page 11 of 16

 

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

        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. 

Page 12 of 16

 

        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 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 Operating Company, Inc.	 	Allegiant Air, Inc.
	

By:	

/s/ Anthony Sanfilippo	
 	

By:	

/s/ Maurice J. Gallagher
	 	
	 	 	

	 	Name: Anthony Sanfilippo	 	 	Maurice J. Gallagher, Principal
	 	Title: Division President	 	 	 

	

STATE OF	

Nevada
	

)
	 	 	)ss:
	COUNTY OF	Clark
	)

        On
this 21st day of March, 2003, before me a Notary Public, personally appeared Anthony Sanfilippo 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 OPERATING COMPANY,
 INC., the corporation executed it. 

	

 	

 	
 	

/s/ Pier Washington

	[SEAL]	 	Notary Public
	
	 	 	 
	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 executed it. 

	

 	

 	
 	

/s/ Jennifer Luce

	[SEAL]	 	Notary Public
	
	 	 	 
	Notary Statement and/or Seal	 	 	 

Page 13 of 16

   Exhibit A  

AIR CHARTER PROGRAM OPERATIONAL BLOCK HOURS—RENO/TAHOE  

	CITY
 
	 	ST
	 	City
	 	Billing Hrs

TO RNO
	 	Billing Hrs

FROM RNO

	Birmingham	 	AL	 	BHM	 	4.30	 	3.67
	Huntsville	 	AL	 	HSV	 	4.40	 	3.85
	Mobile, AL	 	AL	 	MOB	 	4.41	 	3.95
	Montgomery	 	AL	 	MGM	 	4.40	 	3.85
	Little Rock	 	AR	 	LIT	 	3.56	 	3.26
	Phoenix/Williams-Gateway	 	AZ	 	IWA	 	1.55	 	1.55
	Phoenix-Sky Harbor	 	AZ	 	PHX	 	1.50	 	1.50
	Tucson	 	AZ	 	TUS	 	1.78	 	1.67
	Victoria, BC, Canada	 	BC	 	YYJ	 	1.64	 	1.71
	Bakersfield	 	CA	 	BFL	 	0.90	 	0.90
	Burbank	 	CA	 	BUR	 	1.07	 	1.07
	Fresno	 	CA	 	FAT	 	0.75	 	0.75
	Long Beach	 	CA	 	LGB	 	1.15	 	1.15
	Monterey	 	CA	 	MRY	 	0.83	 	0.83
	Oakland	 	CA	 	OAK	 	0.72	 	0.72
	Ontario	 	CA	 	ONT	 	1.13	 	1.13
	Orange County	 	CA	 	SNA	 	1.19	 	1.19
	Palm Springs	 	CA	 	PSP	 	1.23	 	1.23
	Redding	 	CA	 	RDD	 	0.60	 	0.60
	Sacramento	 	CA	 	SMF	 	0.50	 	0.50
	San Diego	 	CA	 	SAN	 	1.22	 	1.22
	San Jose	 	CA	 	SJC	 	0.75	 	0.75
	Santa Barbara	 	CA	 	SBA	 	1.00	 	1.00
	Santa Maria	 	CA	 	SMX	 	1.01	 	1.01
	Stockton	 	CA	 	SCK	 	0.50	 	0.50
	Denver	 	CO	 	DEN	 	2.01	 	1.79
	Pueblo	 	CO	 	PUB	 	2.07	 	1.84
	Bradley/Hartford	 	CT	 	BDL	 	5.10	 	4.94
	Wilmington	 	DE	 	ILM	 	5.10	 	4.70
	Ft. Lauderdale	 	FL	 	FLL	 	5.10	 	4.97
	Ft. Myers	 	FL	 	FMY	 	5.10	 	4.75
	Jacksonville	 	FL	 	JAX	 	4.80	 	4.51
	Orlando-Sanford	 	FL	 	SFB	 	5.10	 	4.66
	Tampa	 	FL	 	TPA	 	4.88	 	4.58
	Atlanta	 	GA	 	ATL	 	4.60	 	4.17
	Cedar Rapids	 	IA	 	CID	 	3.47	 	3.17
	Des Moines	 	IA	 	DSM	 	3.24	 	2.96
	Dubuque	 	IA	 	DBQ	 	3.51	 	3.21
	Sioux City	 	IA	 	SUX	 	2.91	 	2.66
	Boise	 	ID	 	BOI	 	1.03	 	1.03
	Chicago/Midway	 	IL	 	MDW	 	4.00	 	3.50
	Moline	 	IL	 	MLI	 	3.54	 	3.24
	Peoria	 	IL	 	PIA	 	3.83	 	3.00
	Quincy	 	IL	 	UIN	 	3.49	 	3.19
	Rockford	 	IL	 	RFD	 	3.66	 	3.39
	 	 	 	 	 	 	 	 	 

Page 14 of 16

 

	Springfield	 	IL	 	SPI	 	3.60	 	3.10
	Fort Wayne	 	IN	 	FWA	 	4.00	 	3.67
	Indianapolis	 	IN	 	IND	 	4.08	 	3.67
	South Bend	 	IN	 	SBN	 	4.03	 	3.69
	Garden City	 	KS	 	GCK	 	2.43	 	2.22
	Liberal	 	KS	 	LBL	 	2.33	 	2.25
	Wichita	 	KS	 	ICT	 	2.92	 	2.58
	Louisville	 	KY	 	SDF	 	4.25	 	4.00
	New Orleans	 	LA	 	MSY	 	4.08	 	3.77
	Shreveport	 	LA	 	SHV	 	3.75	 	3.13
	Boston	 	MA	 	BOS	 	5.30	 	5.10
	Chicopee Falls/Westover	 	MA	 	CEF	 	5.10	 	4.95
	Baltimore-Washington	 	MD	 	BWI	 	4.92	 	4.62
	Detroit	 	MI	 	DTW	 	4.50	 	4.08
	Grand Rapids	 	MI	 	GRR	 	4.06	 	3.76
	Minneapolis	 	MN	 	MSP	 	3.31	 	3.02
	Rochester	 	MN	 	RST	 	3.38	 	3.09
	Kansas City	 	MO	 	MCI	 	3.17	 	2.92
	Springfield	 	MO	 	SGF	 	3.58	 	2.92
	St. Louis	 	MO	 	STL	 	4.00	 	3.42
	Jacksonville	 	MS	 	JAN	 	4.00	 	3.65
	Billings	 	MT	 	BIL	 	1.80	 	1.80
	Butte	 	MT	 	BTM	 	1.45	 	1.45
	Great Falls	 	MT	 	GTF	 	1.74	 	1.80
	Kalispell	 	MT	 	FCA	 	1.67	 	1.74
	Charlotte	 	NC	 	CLT	 	5.00	 	4.20
	Raleigh-Durham	 	NC	 	RDU	 	4.82	 	4.53
	Bismarck	 	ND	 	BIS	 	2.54	 	2.32
	Fargo	 	ND	 	FAR	 	2.97	 	2.71
	Grand Island	 	NE	 	GRI	 	2.68	 	2.45
	Omaha	 	NE	 	OMA	 	2.97	 	2.71
	Newark	 	NJ	 	EWR	 	5.30	 	4.83
	Albuquerque	 	NM	 	ABQ	 	1.97	 	1.75
	Albany	 	NY	 	ALB	 	5.30	 	4.80
	Buffalo	 	NY	 	BUF	 	5.03	 	3.88
	Rochester	 	NY	 	ROC	 	5.10	 	4.70
	Syracuse	 	NY	 	SYR	 	4.86	 	4.57
	Cincinnati	 	OH	 	CVG	 	4.50	 	3.95
	Cleveland	 	OH	 	CLE	 	4.50	 	3.95
	Columbus	 	OH	 	CMH	 	4.50	 	3.53
	Dayton, OH	 	OH	 	DAY	 	4.43	 	3.96
	Oklahoma City	 	OK	 	OKC	 	3.08	 	2.60
	Tulsa	 	OK	 	TUL	 	3.00	 	2.67
	Eugene	 	OR	 	EUG	 	1.04	 	1.04
	Portland	 	OR	 	PDX	 	1.27	 	1.27
	Philadelphia	 	PA	 	PHL	 	5.30	 	4.74
	Pittsburgh	 	PA	 	PIT	 	4.67	 	4.17
	Reading	 	PA	 	RDG	 	4.92	 	4.67
	Wilkes-Barre/Scranton	 	PA	 	AVP	 	4.95	 	4.65
	 	 	 	 	 	 	 	 	 

Page 15 of 16

 

	Providence	 	RI	 	PVD	 	5.10	 	5.08
	Columbia	 	SC	 	CAE	 	5.00	 	4.20
	Pierre	 	SD	 	PIR	 	2.48	 	2.27
	Rapid City	 	SD	 	RAP	 	2.16	 	1.97
	Sioux Falls	 	SD	 	FSD	 	2.88	 	2.63
	Bristol	 	TN	 	TRI	 	4.50	 	4.08
	Chattanooga	 	TN	 	CHA	 	4.75	 	4.00
	Knoxville	 	TN	 	TYS	 	4.80	 	3.90
	Memphis	 	TN	 	MEM	 	3.83	 	3.42
	Nashville	 	TN	 	BNA	 	4.25	 	4.00
	Abilene	 	TX	 	ABI	 	2.95	 	2.58
	Amarillo	 	TX	 	AMA	 	2.43	 	2.22
	Austin	 	TX	 	AUS	 	3.20	 	2.95
	Beaumont	 	TX	 	BPT	 	3.63	 	3.37
	Corpus Christi	 	TX	 	CRP	 	3.47	 	3.18
	Dallas	 	TX	 	DAL	 	3.42	 	2.87
	El Paso	 	TX	 	ELP	 	2.16	 	1.98
	Harlingen	 	TX	 	HRL	 	3.61	 	3.31
	Houston	 	TX	 	IAH	 	3.67	 	3.22
	Lubbock	 	TX	 	LBB	 	2.80	 	2.42
	Midland-Odessa	 	TX	 	MAF	 	2.62	 	2.40
	Mission-McAllen	 	TX	 	MFE	 	3.55	 	3.25
	San Angelo	 	TX	 	SJT	 	3.10	 	2.60
	San Antonio	 	TX	 	SAT	 	3.20	 	2.95
	Waco	 	TX	 	ACT	 	3.33	 	2.82
	Wichita Falls	 	TX	 	SPS	 	3.00	 	2.58
	Norfolk	 	VA	 	ORF	 	5.10	 	4.82
	Richmond	 	VA	 	RIC	 	4.91	 	4.61
	Roanoke	 	VA	 	ROA	 	5.00	 	4.20
	Bellingham	 	WA	 	BLI	 	1.64	 	1.70
	Pasco	 	WA	 	PSC	 	1.17	 	1.25
	Seattle	 	WA	 	SEA	 	1.41	 	1.41
	Spokane	 	WA	 	GEG	 	1.43	 	1.43
	Green Bay	 	WI	 	GRB	 	3.76	 	3.48
	Madison	 	WI	 	MSN	 	3.62	 	3.36
	Milwaukee	 	WI	 	MKE	 	3.83	 	3.67
	Wausau	 	WI	 	CWA	 	3.59	 	3.32
	Charleston	 	WV	 	CRW	 	4.67	 	4.25
	Casper	 	WY	 	CPR	 	1.83	 	1.83
	Laramie	 	WY	 	LAR	 	1.88	 	1.67

Page 16 of 16

   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—two
pilots and three flight attendants plus additional 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, but not
including the per passenger security fee owed to the federal government recently imposed;

	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—[...***...]. 

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

	4.
	Minimum
Block Hour Guarantee. 

2003
Block Guarantees

[...***...] Block Hours for April 15-June 30, 2003

[...***...] Block Hours for July 1-September 30, 2003

[...***...] Block Hours for October 1-December 31, 2003

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

2004-2005
Block Hour Guarantees

[...***...] Block Hours for Calendar Quarters 1
(January 1-March 31) and 4 (October 1—December 31)

[...***...] Block Hours for Calendar Quarters 2 (April 1- June 30) and 3 (July l—September 30)

Total of [...***...] Block Hours per Calendar Year 

	5.
	Reimbursable
Expenses: 

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

1

 

        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 Operating Company, Inc.	 	Allegiant Air, Inc.
	

By:	

/s/  ANTHONY SANFILIPPO      
 Name: Anthony Sanfilippo

Title: Division President	
 	

By:	

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

Date:	

3/21/03	
 	

Date:	

3/21/03

2

   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 Reno, 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 

1

 

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 Operating Company, Inc.	 	Allegiant Air, Inc.
	

By:	

/s/  ANTHONY SANFILIPPO      
 Name: Anthony Sanfilippo

Title: Division President	
 	

By:	

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

Date:	

3/21/03	
 	

Date:	

3/21/03

2

   Exhibit F  

SUPPLEMENTARY AGREEMENT  

        This Supplementary Agreement (this "Agreement"), dated as
of                        , 200    , is by and
between                        (Indirect Air Carrier or IAC),
Harrah's Operating Company, 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. 

1

 

	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 Operating Company, Inc. 

By:
                                         
                                Fax: 
(            )
            -                    

Printed Name and Title: Anthony Sanfilippo, Division President 

2

  

 
 

AMENDMENT TO AGREEMENT    
    

        THIS AMENDMENT TO Air Transportation Charter Agreement ("Amendment") is made this 1st 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 OPERATING COMPANY, INC. with its principal offices at One Harrah's Court, Las Vegas, Nevada 89119 ("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 July 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 otherwise immediately or automatically terminate by operation in accordance with Section 1, 2, or 3 of this Amendment. 

Page 1 of 4

 

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
invoices, receipts 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 the subject
quarter. 

Page 2 of 4

 

	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 [...***...] per 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 [...***...] per gallon,
Allegiant will receive [...***...] of the total amount deposited into the above mentioned account for that particular month;

	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. 

Page 3 of 4

 

        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 OPERATING COMPANY, INC.
	

By	
 	

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

By	
 	

                           

 Don Marrandino
	Title:	 	CEO	 	Title:	 	Senior V.P./General Manager,

Harrah's Northern Nevada
	 	 	 	 	 	 	 

	 	 	Approved as to form:	 	 
	

 	
 	

/s/  URI L. CLINTON      
 Uri L. Clinton

Senior Attorney	
 	

5-26-04
 Date

Page 4 of 4

  

 
 

SECOND AMENDMENT TO AGREEMENT    
    

        THIS SECOND AMENDMENT TO Air Transportation Charter Agreement ("Amendment") is made this 9—day  of
44A, v-, 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 OPERATING COMPANY, INC.,
 ("Charterer") with its principal offices at One Harrah's Court, Las Vegas, Nevada 89119 (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  June 14, 2004 ("First Amendment");

        WHEREAS, Allegiant and Chatterer 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 Charterer agree to a
limited amendment of the abovementioned Agreement and the immediate termination of the First Amendment as follows: 

Section 1: Limited Scope Of Second Amendment.  

        It is expressly agreed by Allegiant and Charterer 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 of the Agreement; Section 10.1 of the Agreement; Section 27.3 of the Agreement; Exhibit B Section 1 of the Agreement;
and Exhibit B Section 3 of the Agreement. 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 Charterer 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 April 1, 2005 until terminated pursuant to the terms of the Agreement. 

 
 

MODIFICATION OF AGREEMENT    
    

1

 

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 

        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: 

        As
used in the Agreement and its Addendums the term "Base Fuel Cost" shall be defined and shall mean the initial cost of fuel up to and including the first
[...***...] per gallon of the actual average monthly fuel cost. Fuel cost shall be paid as follows: 

	A.
	In
all cases Allegiant shall pay the following fuel cost. (i) [...***...] of the Base Fuel Cost; (ii) [...***...] of the
difference between the Base Fuel Cost and the actual average monthly fuel cost up to and including [...***...] per gallon; and (iii) [...***...]
of the next additional [...***...] of the actual average monthly fuel cost when added to the amount calculated pursuant to Section 4, A, (ii) above.

	B.
	In
all cases Charterer shall pay the following fuel cost: (i) [...***...] of the difference between the Base Fuel Cost and the actual average monthly
fuel cost up to and including [...***...] per gallon; (ii) [...***...] of the next additional [...***...] of the actual
average monthly fuel cost when added to the amount calculated pursuant to Section 4, B, (i) above; and (iii) [...***...] of all additional actual average
monthly fuel cost greater than [...***...] per gallon 

        Allegiant
shall fully document the actual average monthly fuel cost. 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. 

2

 

Section 6: Amendment Of Aircraft Exhibit B Section J Of The Agreement  

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

        On
May 1, 2005 Allegiant shall use one (1) MD-83 Aircraft containing one hundred fifty (150) seats for use by Charterer from May 1, 2005, through
August 31, 2005. Charterer shall provide notice to Allegiant, no later than July 18, 2005, of its desire to continue to use the
MD-83 Aircraft for the period of time between August 31, 2005 up to and including May 1, 2006. 

        After
May 1, 2006, Chatterer shall have the right to select, upon sixty (60) day written notice, between the MD-83 Aircraft or the MD-87 Aircraft.
As long as Allegiant has the MD-87 Aircraft in its plane inventory, it shall honor Charterer's request to use that Aircraft. In any case, when it is not required to use the one hundred
fifty (150) seat MD-83 Aircraft, Allegiant shall use the one hundred thirty (130) seat MD-87 Aircraft. 

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 for the use of the MD-83 Aircraft. Charterer shall pay Allegiant [...***...] per Block Hour for the use of the
MD-87 Aircraft. 

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 14: 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. 

3

 

        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 OPERATING COMPANY
	

By	

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

By	

[ILLEGIBLE]

	 	 	Approved as to form:
	

 	
 	

 Uri L. Clinton                        Date

Senior Attorney

4

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Recitals

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Exhibit 10.20  

        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.  

  
 

    MAINTENANCE GENERAL TERMS AGREEMENT    
    

        This Maintenance Agreement ("Agreement") is made this    day of March, 2006, by and between Allegiant
Air, LLC, a Nevada limited liability company, having its principal place of business at 3301 N Buffalo Dr., Suite B-9, Las Vegas, Nevada 89129
("Customer"), and American Airlines, Inc., a Delaware corporation, having its principal place of business at 4333 Amon Carter Boulevard, Fort
Worth, Texas 76155 ("American"). 

WITNESSETH:

        WHEREAS,
American is authorized under FAA Regulation Part 121 and 145 to inspect, repair and overhaul aircraft, aircraft engines and other equipment pursuant to FAA
Part 121 Certificate No. AALA025A and Part 145 Certificates; and 

        WHEREAS
Customer owns, leases or operates certain aircraft, aircraft engines and equipment and from time to time may request that American perform certain services with respect thereto,
all as more fully described herein. 

        NOW,
THEREFORE, in consideration of the foregoing and the covenants and agreements contained in this Agreement, American and Customer agree as follows: 

 
 

ARTICLE I
  PURCHASE AND PERFORMANCE OF SERVICES    
    

        Subject to the provisions of this Agreement, American agrees to perform for Customer, and Customer agrees to purchase from American, the repair and overhaul
services identified in each Exhibit A attached hereto (the "Services") for the aircraft, aircraft
engine(s) and other equipment (individually and collectively the "Equipment") as identified in each such  Exhibit A, as requested from time to time by
Customer and accepted by American. Upon the written agreement of American and Customer, American
will also perform other repair, overhaul, inspections, modifications and other services on Customer's Equipment. Such written agreement shall be attached hereto and become a part of this Agreement
upon the execution by both parties. Each party hereby represents and warrants to the other as follows: 

        (a)   Such
party is duly organized, validly existing and in good standing and has all right, power and authority necessary to execute and deliver this Agreement and perform
its obligations hereunder; 

        (b)   Such
party's execution and delivery of this Agreement and performance of its respective obligations hereunder have been and remain duly authorized by all necessary
action and do not contravene any provision of its certificate or agreement of organization or any law, regulation or contractual restriction binding on or affecting it or its property; and 

        (c)   This
Agreement is such party's legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency and
similar laws affecting creditors' rights generally and subject, as to enforceability, to general principles of equity. 

 

 
 

ARTICLE II    
    CONDITIONS PRECEDENT TO PERFORMANCE OF SERVICES
  AND DELIVERY OF EQUIPMENT FOR SERVICES    
    

        2.01. Conditions Precedent-American. The initial and ongoing obligation of American to perform Services hereunder on any
Equipment is subject to the initial and ongoing fulfillment in a manner reasonably satisfactory to American of the following conditions precedent: 

        (a)   Delivery of Equipment. Customer shall have delivered such Equipment F.O.B. to American at its Tulsa Maintenance Base,
including applicable taxes and fees; provided, however, that American may, upon sixty (60) days' prior notice to Customer, specify (as to Equipment other than an aircraft) or request Customer's
consent to (as to aircraft) another American location within the continental United States as the F.O.B. point for the delivery of such Equipment type hereunder. Customer shall reply to any such
request within ten (10) business days thereafter. Provided that Customer has consented (if required), thereafter, unless and until American shall specify, or, if applicable, American and
Customer shall agree to, a different location for purposes of this Section 2.01(a), all such Equipment shall be delivered to such newly
identified F.O.B. location. If Customer does not consent to any such request by American to change the F.O.B. location as to aircraft, the F.O.B. location shall remain the Tulsa Maintenance Base or
other location with respect to which Customer has given its consent, but American shall have the right to terminate its obligation to perform Services on such aircraft upon not less than
180 days notice to Customer. 

        (b)   Equipment Records. Customer shall have provided to American, together with each item of Equipment, its logbook or other
records, if any, relative to such Equipment that are determined by American to be necessary for the Services thereon, which logbooks or other records shall have been mutually agreed and specified in
the respective Exhibit A for such Equipment. 

        (c)   Condition Tag. If applicable Customer shall have provided to American a condition tag or other similar document for each
item of Equipment describing: (i) the reason for removal of such Equipment from Customer's aircraft, if applicable, (ii) proper part or other identification of such Equipment, and
(iii) any other information regarding the Equipment that Customer believes will be helpful in diagnosing any malfunction thereof or otherwise performing the Services thereon. 

        (d)   Delivery of Customer Supplied Material. Customer shall have provided to American all known parts and material to be
furnished by Customer for performance of the Services (the "Customer Supplied Material") as specifically identified in the applicable  Exhibit A, which
shall include but not be limited to components, parts and material not common to American's aircraft. 

        (e)   Representations. The representations and warranties of Customer contained herein shall be true and correct in all
material respects when made and as of the date of the performance by American of any Services hereunder, with the same effect as if made on and as of such dates; and Customer shall have complied with
all of the terms and conditions of this Agreement to be performed or observed by Customer and no Event of Default involving Customer shall be in existence on such date. 

        (f)    Acceptance of ESOs. Customer shall have furnished to American, a writing in a form acceptable to both parties, noting the
Customer's acceptance of the relevant American Engineering Specifications Orders (each an "ESO") or other specification utilized in the performance of
the Services and such other consents as may be required by the FAA or any other governmental authority. 

        (g)   Agreement upon Scope of Work. American and Customer shall have mutually agreed in writing upon the specific, detailed
scope of Services for the Equipment (the "Bill of Work"). 

2

 

        (h)   Advance Payment. American shall have received from Customer any advance payment required in  Section 3.03.

        2.02. Conditions Precedent for the Benefit of American. The conditions precedent set forth above are imposed solely for the
benefit of American and may be waived or enforced by American at its option. No waiver by American of any condition precedent shall constitute the waiver of such condition precedent in the future, and
American may at any time require strict compliance with all conditions precedent. Exhibit A shall identify which conditions precedent are
generally waived for any particular type of Equipment. 

        2.03. Conditions Precedent-Customer. The initial and ongoing obligation of Customer to comply with the delivery of Equipment
to American pursuant to the respective Exhibit A is subject to the initial and ongoing fulfillment in a manner reasonably satisfactory to
Customer of the following condition precedent: 

        (a)   Representations. The representations and warranties of American contained herein shall be true and correct in all
material respects when made and as of the date of the performance by American of any Services hereunder, with the same effect as if made on and as of such dates; and American shall have complied with
all of the terms and conditions of this Agreement to be performed or observed by American and no breach by American of its obligations hereunder shall exist and be continuing on such date. 

 
 

ARTICLE III
  PAYMENTS AND CHARGES    
    

        3.01. Charges. In consideration of any Services performed hereunder, Customer shall pay or cause to be paid to American, in
accordance with this Article III, the charges set forth in the applicable Exhibit A. 

        3.02. Invoices and Payments. Unless otherwise agreed in the applicable  Exhibit A, Customer shall pay the total estimated amount to be charged for all Services performed
hereunder prior to redelivery of the Equipment.
As soon as practicable following the completion of such Services, American shall issue a reconciling invoice for any outstanding sums, which sums shall be paid within thirty (30) days after
issuance of such invoice. All payments shall be made in United States Dollars. If Customer shall fail to pay when due any amounts or charges required to be paid by Customer hereunder, such unpaid
amount shall bear interest from and including the date payment was due until the date payment is actually received by American at a per annum interest rate equal to the lesser of
(a) 12 percent or (b) the highest rate permitted by applicable law. 

        3.03. Nonpayment. In the event of any (a) material adverse change in Customer's financial condition such that American
shall reasonably conclude that payment by Customer for specifically-identified Services hereunder is unlikely, or (b) failure of Customer to promptly pay in full for any prior Services
hereunder, which payment is not being disputed pursuant to the dispute resolution procedures hereunder, American may, at its option and upon reasonable prior notice to Customer, require that Customer:
(c) procure one or more letters of credit in American's favor (which letter(s) of credit shall be in an aggregate amount sufficient to ensure that American will be promptly paid in full for
specifically-identified Services anticipated to be performed hereunder and otherwise reasonably satisfactory in all respects to American), (d) deposit with American sufficient funds to ensure
that American will be promptly paid for specifically-identified Services anticipated to be performed hereunder, or (e) otherwise modify the payment terms provided in this Agreement as American
deems reasonably necessary to ensure that it will be promptly paid in full for such Services performed hereunder. Notwithstanding the provisions of Article X, in the event of any nonpayment or
threatened nonpayment by Customer hereunder, provided that dispute resolution procedures of this Agreement have been followed or none are pending on the subject matter, American may exercise any other
rights 

3

 

or
remedies that it may possess, at law or in equity, to secure such payment, including, if permitted by applicable law, retaining possession of any Equipment or other property of Customer in the
possession of American or filing or otherwise perfecting any mechanics' or materialmen's liens on the Equipment involved with such nonpayment. 

        3.04. Payments Without Set-Off. All charges for Services hereunder shall be paid by Customer to American without
set-off or reduction for any amounts owed, or claimed, from American by Customer, and Customer hereby waives and disclaims any rights of offset or set-off. No payment by
Customer shall be a waiver of its rights under Section 11.11. Notwithstanding any designation by Customer or rule of law to the contrary, if Customer is past due on payment of any debt,
liability or obligation to American hereunder in accordance with the payment terms specified in Section 3.02, American may apply any payment received from Customer to any debt, liability or
obligation of Customer to American hereunder in such manner and order as American shall elect in its sole discretion. 

        3.05. Taxes. In addition to the amounts otherwise payable hereunder, Customer is solely responsible for, and shall be and
remain liable for and shall indemnify American against, any customs, duties or similar charges (including penalties and interest) with respect to any Equipment, including any such charges incident to
any importation or exportation of Equipment, and for any taxes (including penalties and interest), including, without limitation, stamp, sales, use, property and other taxes or fees (other than taxes
on or imposed with reference to the income of, or measured by the income of, American), which may be imposed or paid in connection with the execution and/or performance of this Agreement, including,
without limitation, the furnishing by American of the Services. Excluded under the foregoing shall be any taxes, duties or impositions arising out of the importation of any parts normally maintained
by American to support the Services hereunder and not required to be supplied by Customer under this Agreement. All payments hereunder by Customer to American shall be made free and clear of and
without deduction for any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto. If Customer shall be required by law to deduct any
such amounts from or in respect of any sum payable hereunder, the sum payable shall be increased as may be necessary so that after making all required deductions American receives an amount equal to
the sum it would have received had no such deductions been made. Customer shall be entitled to contest any and all taxes for which it is liable under the foregoing, and American shall cooperate
reasonably with Customer's requests with respect to any such contest. If, after payment by Customer of any taxes under the foregoing, American receives a refund thereof, American shall deliver over to
Customer such refund, including any increased payment received by American associated therewith. 

 
 

ARTICLE IV
  RESERVED    
    

 
 

ARTICLE V
  TERM OF THE AGREEMENT    
    

        The term of this Agreement (the "Term"), with respect to each  Exhibit A, shall
commence upon execution of such Exhibit A by both parties and shall,
unless earlier terminated in accordance with the terms hereof, continue for the period specified in such Exhibit A. Subject to the foregoing,
this Agreement shall be effective upon execution hereof and, unless earlier terminated in accordance with the terms hereof, shall remain in effect for a 36 month period thereafter the date
first appearing above; subject to Customer's right to extend such term for three additional 12-month periods. 

4

 

 
 

ARTICLE VI
  GENERAL TERMS AND CONDITIONS    
    

        6.01. Performance Standards. American shall perform the Services in accordance with the specifications set forth in the
applicable Exhibit A or as otherwise agreed upon by the parties in writing. American will maintain its applicable authorization from the FAA to
perform the Services under any such exhibit (FAA Part 121 Certificate No. AALA025A or Part 145 Certificate (or any substitutes therefor)) as specified therein. 

        6.02. Turn Time. Upon and subject to fulfillment by Customer of the conditions precedent described in  Article II with respect to any Equipment, American will commence to
perform the Services thereon. Subject to the foregoing sentence and to  Section 6.03, American will endeavor to have such Services completed within the estimated Turn Time set forth in the
applicable  Exhibit A or agreed to in writing for Services not initially included in such Exhibit A.
American does not, however, guarantee the Turn Times, provided that, again subject to the foregoing sentences and to Section 6.03, in the event that American fails to complete any Services
within the estimated Turn Time set forth in the applicable Exhibit A, then Customer shall be entitled to receive from American liquidated
damages, at the daily rate specified in the applicable Exhibit A for such Services, commencing with the *** day of delay and continuing
thereafter until the Services are completed, which the parties agree is a reasonable basis for determining the losses to Customer and is not a penalty in view of the difficulty in calculating actual
damages. American shall not be deemed to have failed to complete the Services on an item of Equipment within the estimated Turn Time based solely on the failure to have completed minor or
inconsequential items within such time so long as when redelivered the item of Equipment is airworthy and in the condition customarily regarded in the airline industry as eligible to be placed into
immediate service. 

        6.03. Excusable Delays. Neither party shall be liable for any delay in the delivery of Services (and no such delay shall
constitute an Event of Default hereunder) if the delay is caused by forces beyond the reasonable control of such party, including, but not limited to, with respect to American's performance, delays by
Customer in providing any of the items required under Section 2.01 or Customer Furnished Material or in providing any directions necessary for
the performance of the Services or the disposition of parts (including approvals of Outside Services or vendors, manufacturers or suppliers) and, as to each party's performance, delays by
subcontractors, part suppliers, manufacturers or suppliers (so long as the affected party has used diligent efforts to find other sources or vendors), fires, explosions, floods or other natural
catastrophes, governmental acts, orders or regulations, strikes or labor difficulties (including, if affecting American's performance, strikes or labor difficulties with American's pilots, flight
attendants, mechanics or other labor groups provided that American has used its reasonable efforts to eliminate the basis for such strikes or labor difficulties). The affected party shall notify the
other promptly after the occurrence of any event claimed to cause an excusable delay. Further, if American determines that as a result of any excusable delay the turn time for the performance of any
Services shall be delayed by more than 10 days, American shall notify Customer of such determination, whereupon Customer shall be entitled to employ third parties to perform such tasks if
necessary and who may enter the premises of American to perform the same if the affected Equipment cannot reasonably be removed from American's premises, until such time as American notifies Customer
in writing that American can once again perform such Services on a timely basis. 

        6.04. Redelivery. Each item of Equipment shall be made available for Customer to pickup or be redelivered by American to
Customer F.O.B. American's Tulsa or other Maintenance Base in the same shipping container or a shipping container comparable to that in which such Equipment was received by American. Notwithstanding
anything to the contrary set forth herein, American shall have no obligation to redeliver any item of Equipment if Customer is past due on payment of any debt, liability or obligation to American
hereunder in accordance with the payment terms specified in Section 3.02. 

5

 

        6.05. Return of Records; Serviceable Parts Tag. Upon redelivery of each item of Equipment to Customer, American shall:
(a) return to Customer any documents and records provided to American by Customer pursuant to this Agreement, and (b) provide to Customer a serviceable parts tag and/or other
documentation as appropriate (per FAA regulations, manufacturer and appliance and component manual requirements and Customer's policies, procedures and maintenance program) for the Services provided
thereon, if any. 

        6.06. Outside Services. From time to time American may determine that in order to overhaul or repair an item of Equipment it
is necessary or appropriate to subcontract to a third party all or a portion of the Services thereon (such subcontracted services being collectively referred to herein as
"Outside Services"). Customer hereby consents and agrees that American may, subject to approval by Customer (which shall be required even as to third
parties that are already included on Customer's Approved Vendor List, as approved by the FAA), utilize such Outside Services in the performance of American's obligations under this Agreement.
Customer's approval shall be provided within 24 hours after American's request therefor. Any Outside Services utilized in connection with the performance of the Services and which fall under
the immediately foregoing sentence or are otherwise approved by Customer will be charged to Customer at American's cost plus the mark-up shown in the applicable  Exhibit A. 

        6.07. Monitoring Work by Customer. Customer shall have the right to monitor work in progress and inspect each item of
Equipment during the performance by American of the Services thereon and for that purpose American, with reasonable advance notice, shall permit Customer's agents or employees (in such numbers as
shall be reasonably necessary for such purpose) to enter American's facilities when such Services are being performed. If requested by American, Customer, together with any agents and employees of
Customer entering into American's premises in order to perform such monitoring and inspection, shall execute a waiver and release in a form acceptable to American. If reasonably deemed by Customer to
be necessary during the performance of the Services to Equipment, American shall provide to Customer and Customer's on-site representatives, agents and employees a reasonably secure office
space (lockable), telephone and fax lines for use, with Customer to be responsible for any long distance charges. 

        6.08. Change Orders. Any change to the Services identified in any  Exhibit A and any overtime charges shall be authorized and approved in writing by Customer, prior to
the performance of any such changes to such
Services or overtime, on a form acceptable to both parties. American shall at all times be justified in relying on, and is hereby instructed by Customer to rely on, any instructions, authorizations,
approvals or modifications received from any officer, director, employee or agent of Customer who has been specified in the applicable Exhibit A
as the officer, director, employee, or agent of Customer who is designated to give such instructions, authorizations, approvals or modifications. 

        6.09. Selection of Vendor. Except for Customer Supplied Material, Customer agrees that American may, subject to Customer's
consent, determine whether and from which vendor, manufacturer or supplier to acquire or purchase any parts to be utilized in connection with the performance of any Services. Such consent shall be
required whether or not such vendor, manufacturer or supplier is already included on the Customer's Approved Vendor List and shall be provided by Customer within 24 hours after American's
request therefor. 

        6.10. Not a "Consumer Transaction". American and Customer acknowledge and
agree that this Agreement does not evidence a "consumer transaction" within the meaning of the Oklahoma Consumer Protection Act, 15 Okla. Stat.
§ 751, et seq. 

        6.11. Customer Supplied Material. Customer shall provide as Customer Supplied Material all parts and material that are not
common to American's aircraft or engines. Customer hereby represents and warrants that all Customer Supplied Material will meet all applicable FAA Regulations and appropriate records as to
serviceability and repair. Customer acknowledges that American makes no warranties with 

6

 

respect
to such Customer Supplied Material and assumes no additional liability due to American's use thereof. 

 
 

ARTICLE VII
  LIMITED WARRANTY    
    

        7.01. Limited Warranty. Subject to the limitations and conditions of this  Article VII, American warrants that the Services performed hereunder will be free from Defects
(the "American
Warranty"). A "Defect" shall mean a failure of American's workmanship on an item of Equipment to conform to the relevant
specifications mutually agreed upon by the parties as set forth in Exhibit A. 

        7.02. Limitations on Warranties. 

        (a)   Third Party Items; Assignment of Warranties. The warranties set forth in  Section 7.01 shall not apply to, and Customer hereby acknowledges that American makes no
warranties with respect to, any parts, the Equipment
itself or its constituent parts or the maintenance (other than by American hereunder), design, airworthiness, construction or operation of any of the foregoing. If any parts are covered by any
warranty made by the manufacturer or supplier of such parts, American hereby assigns (to the extent legally possible) to Customer all of American's right, title and interest, if any, to such
warranties. To the extent not so possible, at Customer's request American agrees to submit and pursue warranty claims on Customer's behalf. 

        (b)   General Limitation. The exercise by Customer of any remedies for breach of the warranties set forth in  Section 7.01, and American's obligations and liabilities
under this Article VII, are
expressly subject to the following conditions precedent: 

        (i)    a
Defect having become apparent within the warranty period agreed upon by the parties as set forth in the applicable  Exhibit A (the "Warranty Period");

        (ii)   the
submission by Customer of a claim within thirty (30) days of the claimed Defect having become apparent along with proof reasonably satisfactory to American
that the claimed Defect is due to a matter covered by Section 7.01 and that the Defect did not result from any act or omission of the operator of
the affected Equipment including, but not limited to, any failure to properly operate or maintain such Equipment; and 

        (iii)  the
return by Customer of the Equipment claimed to contain a Defect to American's Tulsa or other Maintenance Base within forty-five (45) days after
the claimed Defect becomes apparent, except in the event American elects to reimburse Customer for its costs to repair in accordance with  Section 7.03. 

        7.03. Determination of No Defect. 

        (a)   In
the event that American shall conclude, after investigation of a claimed Defect with respect to an item of Equipment, that no Defect exists, and Customer does not
timely invoke the third party vendor binding arbitration set forth below (or does timely invoke such arbitration but the Warranty Arbitrator decides in favor of American), Customer shall, upon demand,
promptly reimburse American for American's expenses incurred in the transportation, teardown, investigation, reassembly and test of the item of Equipment in question, all at American's standard labor
and material rates for Services on such item of Equipment as specified in the applicable Exhibit Aand as certified by American in writing. In the
event American authorizes Customer to perform repairs in accordance with Section 7.04, American shall have the right to have an authorized
representative present at all times during such repair, and Customer shall provide American with copies of all reports, data and information that are obtained, assimilated and/or prepared as a result
of the repair. 

7

 

        (b)   Subject
to the third party vendor binding arbitration set forth below, if at the conclusion of an authorized repair of an item of Equipment by Customer, American
concludes that no Defect existed prior to such authorized repair, (i) American shall have no liability or obligation to Customer with respect to the item of Equipment, including without
limitation, any liability for the costs incurred in the repair of such item of Equipment in question, and (ii) Customer shall reimburse American, upon
demand, for all expenses incurred by American (as certified by American in writing) in having such representative present during the performance by Customer of such repairs. 

        (c)   Under
the foregoing process, American shall act reasonably in evaluating claimed Defects. If, under the foregoing procedure, Customer disagrees with the determination of
no Defect by American, Customer shall have the right (within 15 days after being notified of such determination) to refer such disagreement to a disinterested third (3rd) party
vendor/repair station, selected under the procedure described below (the "Warranty Arbitrator"), who will receive information from both Customer and
American as to the dispute and resolve the dispute (and issue a decision) within 30 calendar days after American is notified by Customer of the dispute and request for arbitration (the
"Arbitration Request"). The decision of the Warranty Arbitrator shall be final and binding on Customer and American. The costs of the Warranty
Arbitrator shall be borne by the parties equally, regardless of outcome of the arbitration. If Customer and American cannot agree on the Warranty Arbitrator within five (5) calendar days after
the date of the Arbitration Request, the Warranty Arbitrator shall be selected by two (2) third (3rd) party vendor/repair stations (one (1) selected by American and the
other by Customer) duly qualified in maintenance, repair, inspection and overhaul of the item in issue. If necessary, the selection of the two (2) vendor/repair stations by American and
Customer shall be completed within ten (10) calendar days after the date of the Arbitration Request, and the Warranty Arbitrator shall be selected no later than 15 calendar days after the date
of the Arbitration Request. In no event shall the Warranty Arbitrator have fewer than 15 calendar days to consider the dispute and submit its decision. 

        7.04. Exclusive Remedy of Customer. Upon a finding of a Defect (whether by American's evaluation or by the Warranty
Arbitrator), Customer's sole and exclusive remedy and American's sole and exclusive obligation and liability under Section 7.01 are limited to,
at American's expense and option, either (a) the reservicing, repairing or replacing of the Equipment containing the Defect, together with the payment by American of any reasonable expenses
actually incurred by Customer in the removal of such Equipment from an aircraft, shipment of such removed Equipment to American, return of such Equipment to Customer and reinstallation of such
Equipment in an aircraft, or (b) the refund to Customer of amounts actually paid for the Services that are the subject of the warranty claim. All warranty claims shall be submitted to: 

Manager
of Maintenance Marketing

American Airlines, Inc.

P.O. Box 582809, MD 284

Tulsa, Oklahoma 74158-2809. 

Customer
may from time to time request that American permit Customer to repair, or obtain the repair of, an item of Equipment containing a Defect. Subject to  Section 7.03 above, in the event American, in
its sole discretion, gives its prior written approval of any such Customer repairs, Customer may
remove, repair and reinstall, or cause to be removed, repaired and reinstalled, any Equipment containing a Defect, and the costs thereof, together with the costs of the parts consumed during such
activity (as certified by Customer in writing), will be paid by American to Customer; provided that (c) the man-hours expended and the parts consumed by Customer do not exceed
American's reasonable estimate therefor (based on U.S. Airline Industry Standards), and (d) the man-hours required for maintenance work being carried out concurrently on such
Equipment or its constituent parts shall not be included. The labor rates for each
man-hour shall not exceed the labor rate for the Services that are the subject of the warranty claim. 

8

 

        7.05. General Limitations on Liability and Warranties.  

         (a)   General Limitations. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED IN THIS AGREEMENT, THE
WARRANTIES, OBLIGATIONS AND LIABILITIES OF AMERICAN AND THE REMEDIES OF CUSTOMER SET FORTH IN SECTIONS 7.01 AND  7.04 ARE
EXCLUSIVE AND IN SUBSTITUTION FOR, AND CUSTOMER HEREBY WAIVES, RELEASES AND RENOUNCES, ALL OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF
AMERICAN AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF CUSTOMER AGAINST AMERICAN, EXPRESS OR IMPLIED, ARISING BY STATUTE OR OTHERWISE, WITH RESPECT TO ANY DEFECT OR NONCONFORMANCE IN ANY SERVICE OR
WORKMANSHIP PERFORMED FOR CUSTOMER PURSUANT TO THIS AGREEMENT OR ANY THING DELIVERED TO OR PROVIDED TO CUSTOMER PURSUANT TO THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO:  

        (i)    ANY STATUTORY OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE;  

         (ii)   ANY IMPLIED WARRANTY ARISING FROM COURSE OF DEALING, COURSE OF PERFORMANCE OR USAGE OF TRADE; AND  

         (iii) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR NOT ARISING FROM THE NEGLIGENCE (OTHER THAN GROSS NEGLIGENCE) OF AMERICAN (WHETHER ACTIVE,
PASSIVE OR IMPUTED), OR STRICT LIABILITY OF AMERICAN.  

        (b)   No Consequential or Incidental Damages. IN ADDITION, BUT WITHOUT LIMITING OR OTHERWISE IMPAIRING ANY
RIGHT OR REMEDY
EXPRESSLY GRANTED OR RESERVED TO EITHER PARTY HEREIN, NEITHER AMERICAN NOR CUSTOMER SHALL HAVE ANY OBLIGATION OR LIABILITY, WHETHER ARISING IN CONTRACT (INCLUDING WARRANTY), TORT (INCLUDING ACTIVE,
PASSIVE OR IMPUTED NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, FOR LOSS OF USE, REVENUE OR PROFIT OR FOR ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES WITH RESPECT TO ANY BREACH OF THIS AGREEMENT OR
ANY NONCONFORMANCE OR DEFECT IN ANY SERVICE OR WORKMANSHIP OR ANY PART, ENGINE OR OTHER MATERIAL, COMPONENT, ACCESSORY, EQUIPMENT OR PRODUCT PROVIDED OR DELIVERED PURSUANT TO THIS AGREEMENT.  

        (c)   Full Negotiation by Parties. THE PARTIES ACKNOWLEDGE THAT THIS SECTION
7.05 HAS BEEN THE SUBJECT OF FULL DISCUSSION AND NEGOTIATION BETWEEN THE PARTIES, WITH THE ADVICE OF THEIR RESPECTIVE LEGAL COUNSEL, AND THAT THE PROVISIONS OF THIS AGREEMENT
WERE ARRIVED AT IN CONSIDERATION OF THE PROVISIONS OF THIS SECTION 7.05 INCLUDING THE DISCLAIMER, WAIVER, RELEASES AND RENUNCIATIONS SET FORTH HEREIN.  

         7.06 Waiver of Oklahoma Deceptive Trade Practices Act. CUSTOMER HEREBY WAIVES ANY ACTIONS OR REMEDIES TO THE EXTENT
AVAILABLE
TO IT UNDER THE OKLAHOMA PROTECTION ACT, 15 OKLA. STAT. SECTION 751, ET SEQ., AND THE OKLAHOMA DECEPTIVE TRADE PRACTICE ACT, 78 OKLA. STAT. SECTION 51,  ET
SEQ.

        7.07. Faulty Condition Tag. Under no circumstances shall American be liable for any labor or material costs that are incurred
in the correction of any Defect that occurred, as determined by American in the exercise of its reasonable judgment, because Customer, via the condition tag delivered to American pursuant to  Section 2.01(c)
 or otherwise, excluded from prior servicing work that otherwise would have been performed and that would have included inspection
and repairs that would have revealed or anticipated such Defect. 

9

 

        7.08 Survival. The rights and obligations of the parties under this  Article VII shall survive any termination or expiration of this Agreement. 

 
 

ARTICLE VIII
  INSURANCE    
    

        8.01. Insurance of American. American agrees to maintain the following insurance coverages and to provide to Customer upon
execution of this Agreement and annually upon renewal a certificate to such effect: 

        (a)   Workers
Compensation Insurance as statutorily required in the state in which its Maintenance Base performing the Services is located. 

        (b)   Hangarkeeper's
Legal Liability Insurance in an amount not less than $25,000,000.00. 

        (c)   Comprehensive
Liability Insurance with limits of not less than $500,000,000.00 per occurrence. 

        8.02. Insurance of Customer. Customer shall carry and maintain with insurers of recognized financial responsibility
satisfactory to American, the following insurance coverages, and shall provide to American, contemporaneously with Customer's execution of this Agreement and annually upon renewal, a certificate of
Customer's insurer or insurance broker to such effect: 

        (a)   Comprehensive
Airline Liability Insurance, including, but not limited to, aircraft passenger and product liability, with limits of not less than U.S. $500,000,000
combined single limit per occurrence, excluding manufacturing products. The following special provisions shall be endorsed on such policy: 

        (i).   The
insurer(s) shall accept and insure the indemnification and hold harmless provisions of Article IX, to the
extent of the Customer's insurance policy's terms and conditions. 

        (ii).  Each
Indemnified Party (as defined in Section 9.01) shall be included as an additional insured with respect to the Services performed under this Agreement, only
as respects operations of the named insured (Customer). 

        (iii). The
insurer(s) shall waive any rights of subrogation they have against any Indemnified Party, but only to the extent that Customer has waived its rights against such
Indemnified Party; 

        (iv). Such
policy shall be primary without right of contribution from any insurance carried by American. 

        (v).  Such
insurance (A) shall not be invalidated with respect to any Indemnified Party by any action or inaction of Customer, and (B) shall insure each
Indemnified Party regardless of any breach or violation of such policy by Customer; provided that in each such case, the Indemnified Party has not caused, contributed to or knowingly condoned the said
breach or violation. 

The
coverages under (i) and (ii) above are subject to exclusion for American's liability as a manufacturer. 

        (b)   Hull
All Risk Insurance, including ground and flight coverage, in an amount satisfactory to Customer. The following special provisions shall be endorsed on such policy: 

        (i).   The
insurers shall accept and insure the indemnification and hold harmless provisions of Article IX to the extent
of the Customer's insurance policy's terms and conditions. 

10

 

        (ii).  The
insurers shall waive any rights of subrogation they have against any Indemnified Party but only to the extent that Customer has waived its rights against such
Indemnified Party. 

The
obligation of Customer to carry and maintain the insurance under the foregoing shall be limited to a period expiring four (4) years after (c) completion of the Services for the last
item of Equipment to receive Services hereunder, or (d) termination or expiration of this Agreement, whichever occurs last. In limitation of the foregoing, the insurance obligation of Customer
under this Article relates solely and exclusively to the performance of Services under this Agreement and not to any other relationship between the parties or any affiliate of either of them. 

        8.03 Notice
of Cancellation; Risk of Loss. 

        (a)   As
respects all insurance carried by Customer or American pursuant to this Agreement, the insurers shall be required to give to American, with respect to insurance
carried by Customer, and to Customer, with respect to insurance carried by American, thirty (30) days' prior written notice of any cancellation of any such policy or of any material change in
such affecting the other. 

        (b)   Risk
of loss to the Equipment shall at all times remain with Customer, except for loss or damage occurring while American actually has physical possession of the
Equipment and then only to the extent caused by American's negligence or misconduct or that of its officers, directors, employees or agents. In any event, American's liability for such loss or damage
shall at all times be limited to actual physical damage to the Equipment and, for the avoidance of doubt, shall not include liability for incidental, consequential, special, indirect, punitive or
other similar damages. 

 
 

ARTICLE IX
  INDEMNITY    
    

        9.01. General. CUSTOMER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS AMERICAN, ITS PARENT, SUBSIDIARIES
AND AFFILIATES, AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS (INDIVIDUALLY, AN "INDEMNIFIED PARTY"), FROM AND AGAINST ANY AND ALL
LIABILITIES, DAMAGES, LOSSES, COSTS, EXPENSES, FINES AND PENALTIES THAT MAY BE CHARGED TO, RECOVERED FROM OR SUFFERED BY AN INDEMNIFIED PARTY AS A RESULT OF ANY CLAIM, SUIT OR ACTION (BY A PERSON
OTHER THAN CUSTOMER) TO ANY EXTENT OR IN ANY WAY CONNECTED WITH OR ARISING FROM THIS AGREEMENT OR ANY SERVICES, OUTSIDE SERVICES OR PARTS PROVIDED HEREUNDER, OR ANY FAILURE BY CUSTOMER TO PERFORM
HEREUNDER, INCLUDING, WITHOUT LIMITATION, CLAIMS FOR INJURY TO OR DEATH OF PERSONS (INCLUDING ANY EMPLOYEES OR AGENTS OF CUSTOMER WHO ENTER AMERICAN'S PREMISES PURSUANT TO  SECTION 6.07 AND
ALL INVITEES, GUESTS, PASSENGERS AND EMPLOYEES OF CUSTOMER) AND DAMAGE TO OR DESTRUCTION OF PROPERTY (INCLUDING PROPERTY OF CUSTOMER
AND ITS INVITEES, GUESTS, PASSENGERS, EMPLOYEES AND AGENTS AND PROPERTY OF EACH INDEMNIFIED PARTY); PROVIDED, HOWEVER, CUSTOMER SHALL HAVE NO LIABILITY TO INDEMNIFY ANY INDEMNIFIED PARTY FOR ANY
LIABILITIES, DAMAGES, LOSSES, COSTS, EXPENSES, FINES AND PENALTIES TO THE EXTENT RESULTING FROM THE GROSS NEGLIGENCE, MISCONDUCT, INTENTIONAL ACT OR RECKLESSNESS OF ANY INDEMNIFIED PARTY.  

        9.02. Indemnification for Negligent Acts. WITHOUT LIMITING SECTION
9.01 ABOVE, AMERICAN AND CUSTOMER EXPRESSLY INTEND THAT CUSTOMER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS EACH INDEMNIFIED PARTY AGAINST CLAIMS THAT ARISE AS A RESULT OF THE SOLE NEGLIGENCE (WHETHER
ACTIVE, PASSIVE OR IMPUTED) OF AMERICAN OR ANY OTHER INDEMNIFIED PARTY OR AS A RESULT OF THE JOINT OR CONCURRENT  

11

 

 NEGLIGENCE (WHETHER ACTIVE, PASSIVE OR IMPUTED) OF AMERICAN OR ANY OTHER INDEMNIFIED PARTY AND CUSTOMER.  

        9.03. Defense of Claims; Settlement. IN THE EVENT A CLAIM IS MADE OR SUIT IS BROUGHT THAT IS COVERED BY THE FOREGOING
INDEMNITY, THE INDEMNIFIED PARTY SHALL GIVE CUSTOMER NOTICE THEREOF PROMPTLY AFTER BECOMING AWARE OF SUCH CLAIM OR SUIT, HOWEVER, THE FAILURE SO TO NOTIFY CUSTOMER SHALL NOT RELIEVE CUSTOMER OF ANY
LIABILITY THAT CUSTOMER MAY HAVE TO THE INDEMNIFIED PARTY EXCEPT TO THE EXTENT THAT THE DEFENSE OF SUCH ACTION HAS BEEN PREJUDICED THEREBY. CUSTOMER SHALL ASSUME ALL RESPONSIBILITY FOR ANY CLAIM OR
SUIT THAT IS COVERED BY THE FOREGOING INDEMNITY, AND THE INDEMNIFIED PARTY SHALL PROVIDE REASONABLE ASSISTANCE AND COOPERATION DURING THE DEFENSE OR SETTLEMENT OF THE CLAIM OR SUIT. EXCEPT AS LIMITED
HEREINAFTER, CUSTOMER SHALL HAVE COMPLETE CONTROL OF THE DEFENSE OR SETTLEMENT OF SUCH CLAIM OR SUIT OR COMPROMISE THEREOF. NO COMPROMISE OR SETTLEMENT OF ANY CLAIM OR SUIT MAY BE EFFECTED BY CUSTOMER
WITHOUT THE INDEMNIFIED PARTY'S CONSENT, WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD; PROVIDED, HOWEVER, NO CONSENT SHALL BE REQUIRED IF: (a) THERE IS NO FINDING OR ADMISSION OF ANY
VIOLATION OF ANY LAW BY THE INDEMNIFIED PARTY OR ANY VIOLATION OF THE RIGHTS OF ANY PERSON BY THE INDEMNIFIED PARTY, (b) THERE IS NO ADVERSE EFFECT ON ANY CLAIM OR SUIT THAT MAY BE MADE BY OR
AGAINST THE INDEMNIFIED PARTY, AND (c) THE RELIEF PROVIDED IS THE SOLE RESPONSIBILITY OF CUSTOMER. EACH INDEMNIFIED PARTY SHALL HAVE THE RIGHT, BUT NOT THE DUTY, AT ITS OWN EXPENSE, TO
PARTICIPATE IN THE DEFENSE AND/OR SETTLEMENT OF ANY CLAIM OR SUIT WITH COUNSEL OF ITS OWN CHOOSING WITHOUT RELIEVING CUSTOMER OF ANY OBLIGATIONS HEREUNDER. CUSTOMER SHALL COOPERATE WITH THE
INDEMNIFIED PARTY'S COUNSEL, BUT CONTROL OF THE MATTER SHALL REMAIN WITH CUSTOMER.  

         9.04. Survival. FOR THE AVOIDANCE OF DOUBT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS  ARTICLE IX SHALL SURVIVE ANY TRANSFER OF TITLE OR POSSESSION OF ANY EQUIPMENT OR ANY PART, ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT OR ANY
IMPOSSIBILITY OF PERFORMANCE OR FRUSTRATION OF PURPOSE OF THIS AGREEMENT.  

  
 

    ARTICLE X
  EVENTS OF DEFAULT    
    

        10.01. Defaults. An "Event of Default" shall exist hereunder with respect to
either party to this Agreement if any one or more of the following events shall occur and be continuing with respect to said party (herein, a "Defaulting
Party"): 

        (a)   Such
party shall fail or refuse to pay amounts due and payable hereunder on the date due hereunder and within five (5) days after notice by the other party
demanding such payment (provided
that the amount so demanded is not being disputed pursuant to the dispute resolution procedures set forth herein or such procedures have been exhausted without result in payor's favor); 

        (b)   Any
representation or warranty made by such party hereunder shall prove to have been untrue or inaccurate in any material respect; 

        (c)   Such
party shall fail in the performance of any of the other covenants or agreements of such party contained herein and such failure shall continue for a period of
thirty (30) days beyond notice to such party; provided, however, the existence of any Defect shall not constitute an Event 

12

 

of
Default with respect to American so long as American promptly commences and diligently complies with its warranty obligations; 

        (d)   Such
party shall (i) apply for or consent to the appointment of a receiver, trustee, custodian, intervenor or liquidator of such party or of all or a substantial
part of such party's assets, (ii) file a voluntary petition in bankruptcy, admit in writing that such party is unable to pay such party's debts as they become due or generally not pay
such party's debts as they become due, (iii) make a general assignment for the benefit of creditors, (iv) file a petition or answer seeking reorganization or an arrangement with
creditors or to take advantage of any bankruptcy or insolvency laws, (v) file an answer admitting the material allegations of, consent to or default in answering a petition filed against such
party in any bankruptcy, reorganization or insolvency proceeding, or (vi) take corporate action for the purpose of effecting any of the foregoing; or 

        (e)   An
involuntary petition or complaint shall be filed against such party seeking bankruptcy or reorganization of such party or the appointment of a receiver, custodian,
trustee, intervenor or liquidator of such party, or of all or substantially all of such party's assets, and such petition or complaint shall not have been dismissed within sixty (60) days of
the filing thereof; or an order, order for relief, judgment or decree shall be entered by any court of competent jurisdiction or other competent authority approving a petition or complaint seeking
bankruptcy or reorganization of such party or appointing a receiver, custodian, trustee, intervenor or liquidator of such party, or of all or substantially all of such party's assets. 

        10.02. Remedies. Upon the occurrence of an Event of Default hereunder, the non-Defaulting Party may, at its
option (a) terminate its obligations hereunder upon notice to the Defaulting Party, effective as of the date specified in such notice, which date shall be no earlier than the date of such Event
of Default, and/or (b) exercise any and all other rights and remedies available to such party at law or in equity; provided, however, the non-Defaulting Party's remedies shall in
all respects be limited as set forth in Section 7.05(b). 

        10.03. Survival of Obligations. Notwithstanding anything to the contrary set forth in  Article V or Section 10.02, no
expiry of the Term in accordance with  Article V and no termination of this Agreement under Section 10.02 shall terminate any
right or obligation of Customer or American under Article III, VII, VIII, IX, X or XI. 

 
 

ARTICLE XI
  MISCELLANEOUS    
    

        11.01. Modification of Agreement. Unless otherwise specifically indicated herein, this Agreement shall not be modified or
amended except by written agreement of subsequent date signed on behalf of Customer and American by their respective duly authorized representatives. 

        11.02. Notices and Requirements. Except as otherwise expressly provided in this Agreement, all notices and requests required
or authorized hereunder shall be sufficiently given if in writing and (a) sent by express courier delivery service, (b) transmitted by telecopier, or (c) sent by certified mail, 

13

 

postage
prepaid. For purposes of such notices and requests, the addresses of the parties shall be as follows: 

	If to American:	 	Manager, Maintenance Marketing

American Airlines, Inc.

3900 N. Mingo Rd., MD284

Tulsa, Oklahoma 74116

FAX: (918) 292-2717; Telephone: (918) 292-2676
	

If to Customer:	
 	

Allegiant Air, LLC

3301 N. Buffalo Dr., Suite B-9

Las Vegas, Nevada 89129

Attn: Vice President, Maintenance & Engineering

FAX: (702) 739-6828; Telephone: (702) 851-7383
	

 	
 	

With a copy to each of:
	

 	
 	

Allegiant Air, LLC

Same address

Attn: Senior Vice President Operations

FAX: (    )    -            ; Telephone: (    )
    -            
	

 	
 	

and
	

 	
 	

Allegiant Air, LLC

Same Address

Attn: Managing Director

Secretary and Treasurer

FAX: (702) 851-7301; Telephone: (702) 851-7306

Notices
and requests shall be effective upon receipt. Each party shall have the right to change its address for purposes of notices and requests hereunder to any other location in the United States
or, in the case of a Customer having its principal place of business outside of the United States, to Customer's principal place of business by giving thirty (30) days' prior written notice to
the other party in the manner set forth above. 

        11.03. Confidentiality. Except as may be required by law or pursuant to judicial proceedings, neither party to this Agreement
shall disclose any details connected with this Agreement to any third party without first obtaining the written consent of the other party hereto; provided, however, either party may, if reasonably
deemed necessary by such party, furnish a copy of this Agreement (including the exhibits hereto with the pricing redacted) to the FAA (excluding the FAA aircraft registry). If a party to this
Agreement wishes to utilize advertising or promotional material incorporating in any way whatsoever the other party or its name, the party initiating the advertising or promotional material must
obtain the affected party's approval in writing prior to release or use of such material. 

        11.04. Relationship-No Exclusivity. American shall be and act as an independent contractor of Customer hereunder,
and nothing contained herein shall be deemed to constitute or create a partnership or joint venture between American and Customer. No employee or agent of American or Customer shall be deemed to be an
employee of the other for any purpose whatsoever. Nothing in this Agreement is intended by the parties to create an exclusive relationship with one another or create an obligation for Customer to use
or request services for any equipment other than the Equipment described herein and then only to the extent specified in the applicable exhibit. 

14

 

        11.05. Assignment. THIS AGREEMENT SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF THE PARTIES
HERETO AND THEIR RESPECTIVE SUCCESSORS AND PERMITTED ASSIGNS. EXCEPT FOR THE ASSIGNMENT OR DELEGATION BY AMERICAN OR CUSTOMER TO ITS PARENT OR ONE OF ITS RESPECTIVE SUBSIDIARIES OR AFFILIATES, NEITHER
PARTY TO THIS AGREEMENT MAY ASSIGN ANY RIGHTS OR DELEGATE ANY OBLIGATIONS ARISING UNDER THIS AGREEMENT WITHOUT THE PRIOR WRITTEN CONSENT OF THE OTHER PARTY, WHICH SHALL NOT BE UNREASONABLY WITHHELD.
NO ASSIGNMENT OR DELIGATION BY AMERICAN OR CUSTOMER WITHOUT THE OTHER'S CONSENT (INCLUDING ANY ASSIGNMENT OR DELEGATION EXCEPTED IN THE FOREGOING SENTENCE) SHALL RELIEVE AMERICAN OR CUSTOMER FROM ITS
OBLIGATIONS UNDER THIS AGREEMENT.

        11.06. Savings Clause. If any provision of this Agreement is declared unlawful or unenforceable as a result of final
administrative, legislative or judicial action, the parties agree that this Agreement shall be deemed to be amended to conform with the requirements of such action and that all other provisions hereof
shall remain in full force and effect. 

        11.07. Waiver Clause. No failure or delay by either party in requiring strict performance of this Agreement, no previous
waiver or forbearance of the terms of this Agreement by either party and no course of dealing between the parties shall in any way be construed as a waiver or continuing waiver of any provision of
this Agreement. 

        11.08. Merger. THIS AGREEMENT SETS FORTH THE ENTIRE AGREEMENT OF THE PARTIES, AND SHALL SUPERSEDE ANY
PREVIOUSLY EXECUTED AGREEMENTS OR ORAL UNDERSTANDINGS BETWEEN THE PARTIES AND ANY REPRESENTATIONS, CLAIMS OR OTHER STATEMENTS NOT CONTAINED HEREIN, RELATING TO THE SUBJECT MATTER OF THIS
AGREEMENT.

        11.09. Headings. The headings to the articles and sections of this Agreement are for convenience of reference only and shall
not affect the meaning or construction of any article or section. Except as otherwise indicated, all references herein to Sections and Articles are references to Sections and Articles of this
Agreement. 

        11.10. Governing Law. THIS AGREEMENT IS INTENDED TO BE PERFORMED IN THE STATE OF OKLAHOMA AND SHALL
BE GOVERNED BY AND CONSTRUED AND INTERPRETED ACCORDING TO THE LAWS OF THE STATE OF OKLAHOMA, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PROVISIONS.  

         11.11. Disputes; Choice of Forum; Consent to Service of Process and Jurisdiction. IF A DISPUTE BETWEEN AMERICAN AND
CUSTOMER
ARISES UNDER THIS AGREEMENT, BOTH PARTIES AGREE THAT THEY SHALL FIRST ENDEAVOR, IN GOOD FAITH (INCLUDING ELEVATION TO UPPER LEVELS OF MANAGEMENT), TO RESOLVE ANY SUCH DISPUTE BY MUTUAL AGREEMENT AND
THAT EACH OF THEM SHALL UNDERTAKE SUCH RESOLUTION EFFORTS PRIOR TO RESORT TO ANY JUDICIAL RESOLUTION THEREOF. SUBJECT TO THE FOREGOING, ANY SUIT, ACTION OR PROCEEDING AGAINST CUSTOMER OR AMERICAN
UNDER OR WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE DISTRICT COURT OF THE STATE OF OKLAHOMA, COUNTY OF TULSA, OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA,
AND CUSTOMER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF ANY SUCH SUIT, ACTION OR PROCEEDING. EACH OF CUSTOMER AND AMERICAN HEREBY IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING IN SAID COURTS BY THE MAILING THEREOF BY THE OTHER BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE FIRST PARTY AT ITS
ADDRESS SET FORTH IN SECTION 11.02. CUSTOMER HEREBY IRREVOCABLY WAIVES  

15

 

 ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING IN THE COURTS LOCATED IN THE STATE OF OKLAHOMA, COUNTY OF TULSA, AND HEREBY FURTHER
IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT CUSTOMER MAY BE ENTITLED AT ANY TIME TO CLAIM
FOR ITSELF OR ITS ASSETS ANY IMMUNITY (WHETHER BY REASON OF SOVEREIGNTY OR OTHERWISE) FROM SUIT, FROM THE JURISDICTION OF ANY COURT, FROM EXECUTION OF JUDGMENT OR OTHERWISE, CUSTOMER HEREBY
IRREVOCABLY WAIVES AND AGREES NOT TO CLAIM SUCH IMMUNITY IN RESPECT OF THIS AGREEMENT AND ANY PROCEEDING UNDER OR WITH RESPECT TO THIS AGREEMENT.

        11.12. Attorneys' fees. The prevailing party in any suit, action or proceeding (including any legal proceeding at law or in
equity or in any bankruptcy, receivership or other court proceeding) brought in connection with this Agreement shall be entitled to receive from the other party all costs, fees and expenses (including
without limitation court costs and expenses and fees and expenses of legal counsel) arising out of or in connection with such suit, action or proceeding. 

        11.13. Waiver of Immunity. If Customer is incorporated or based outside of the United States, to the extent that Customer or
any of its property is or becomes entitled at any time to any immunity on the grounds of sovereignty or otherwise from any legal action, suit or proceeding or other legal process in any jurisdiction,
Customer for itself and its property does hereby irrevocably and unconditionally waive, and agree not to plead or claim, any such immunity with respect to its obligations, liabilities or any other
matter under or arising out of or in connection with the subject matter hereof. 

[THE
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

16

 

EXECUTED
as of the day and year first written above. 

	AMERICAN AIRLINES, INC.	 	ALLEGIANT AIR, LLC
	

By:	

    
	
 	

By:	

    

	

Printed Name:	

    
	
 	

Printed Name:	

    

	

Title:	

    
	
 	

Title:	

    

	

Date:	

    
	
 	

Date:	

    

17

  

 
 

EXHIBIT A-6    
    
    Page 1 of 11    

	I.
	The
Services/Additional Services will be performed pursuant to the following authority: 

X
FAR Part 121; Air Carrier Certificate AALA025A; or 

___
FAR Part 145; 

___
Air Agency Certificate AALR025A (TUL) 

___
Air Agency Certificate A3AR112Y (AFW) 

___
Air Agency Certificate ZYUR969X (MCI) 

	II.
	Description
of Services and Components/Exclusivity: 

For
the period covered by the terms of this Exhibit A-6, all scheduled "C-Checks" defined as C1 through C8 checks under Allegiant's existing Boeing MSG3 maintenance
program, excluding C-checks that are part of the work package for aircraft
that are being inducted to Allegiant's fleet. This would also include any Structural Inspection cards (SI), AD's, SB's, MOD's and Lube Cards that are required at the same time intervals of the
c-checks. 

	III.
	Specific
Bills of Work (BOW) will be provided as required prior to each check. 

This
exhibit guarantees American has the exclusive right to perform, and shall perform, any check as described above, wheel and brake services as described below in VII.14. and landing gear overhauls
as described in Exhibit A-9, for Allegiant's existing fleet, including but not limited to, those listed below and any additional acquisition aircraft that occurs during the term of
this Exhibit A-6. 

	N860GA	 	N865GA	 	N872GA	 	N877GA	 	N948MA
	N861GA	 	N866GA	 	N873GA	 	N878GA	 	N880GA
	N862GA	 	N868GA	 	N874GA	 	N879GA	 	N881GA
	N863GA	 	N869GA	 	N875GA	 	N891GA	 	N883GA
	N864GA	 	N871GA	 	N876GA	 	N945MA	 	 

Notwithstanding
anything to the contrary in the General Terms Agreement (to which this Exhibit A-6 is a part), but in addition to the rights of the parties under Article X of
the General Terms Agreement, 

(i)
Customer shall have the right to terminate (upon notice to American Airlines) Customer's agreement and obligation under this Exhibit A-6, Section II, to deliver aircraft
to under this Exhibit A-6, on an exclusive basis, to American Airlines, for the performance of the checks described above, after the occurrence of the following events: 

Any
corporate acquisition of, or any corporate or business merger or combination with or into, or any change of control of, American Airlines, in any form; and 

(1)
After the expiration of twenty (20) consecutive days following notice by Customer to American Airlines that Customer has made a good faith determination that the services by American
Airlines hereunder with respect to any Aircraft on which services hereunder have been performed do not comply with CFR 14 and FAR Part 121, provided that within such 20 days, American
Airlines and Customer do not reach agreement (each, acting reasonably) on the plan for rectification by American Airlines of all conditions bearing on such determination by Customer; or
(2) American Airlines fails in whole or in part to implement any rectification plan agreed under (1) above within ninety (90) days after such plan is agreed by the parties.
American Airlines and Customer agree to 

18

 

act
reasonably and cooperate with one another to provide timely notices, discuss issues, and attempt to reach agreement under the circumstances noted above, provided, however, no party is required by
the terms here of to reach agreement in such context. 

(ii)
Customer shall not be obligated to deliver any aircraft to American Airlines for the performance of the checks described above (and Customer shall be free to have the checks contemplated by this
Exhibit A-6 performed by another maintenance provider): 

(a)
during the existence and continuance of a strike, slow down, or job action of any kind affecting American Airlines workforce involved with the checks described above and the effect of which is
that work on any Customer aircraft in American Airlines' possession is delayed such that the Turn Time on such aircraft will be delayed more than ten (10) consecutive days; 

(b)
if any strike, slow down, or job action of any kind affecting American Airlines' workforce involved with the checks described above, the effect of which would be as described in (a) above,
exists and is continuing, is threatened or is imminent.. 

For
the avoidance of doubt, at such time as any of such conditions (a) through (c) shall cease to exist, Customer's obligation to send aircraft to American Airlines under the terms of
this Exhibit A-6 shall resume and Customer and American Airlines shall conduct discussions on the resumption of services and smooth transition thereof. American Airlines shall
supply Customer with detailed (to the extent possible) and up-to-date information, from time to time with respect to events bearing on the occurrence, existence and continuance
of (ii) (a) through (b) above. 

Termination
of Customer's obligation to deliver aircraft, on an exclusive basis to American Airlines under the circumstances described above, shall not affect, modify or terminate any other of
Customer's or American Airlines' rights or obligations under the remainder of this Exhibit A-6. 

Specifications: 

The
performance of these services shall be conducted in accordance with the Customer's Work Cards and approved manuals that are part of the Customer's Maintenance Program. 

	1.
	All
manuals will be provided by the Customer no later then seven (7) days before aircraft induction date as agreed to by both parties. 
	2.
	If
required, the Customer will provide all necessary documentation required in the performance of repairs or modifications. 
	3.
	AA
to use its own non-routine forms 
	4.
	Buy
back will be in accordance with AA policy unless otherwise agreed by both parties 
	5.
	Allegiant
Air to provide onsite representatives for shift work.

	IV.
	Term
of Agreement: 

The
terms of this Exhibit A-6 are effective for the period beginning on July 17, 2006 and ending (and will expire on) December 31, 2009. In addition, Customer shall
have the right and option, upon notice given to American Airlines no later than June 30, 2009, to extend such period an additional 12 months or, until December 31, 2010; provided,
however, upon receipt of such notice by American Airlines, American Airlines shall have the right and option to refuse such extension by Customer, which refusal must be delivered to Customer no later
than 30 days after receipt by American Airlines of notice by Customer of exercise of Customer's right of extension above. If American Airlines does not deliver notice of such refusal of
extension in such time frame, the extension shall commence January 1, 2010. 

	V.
	Turn
Times: 

American
Airlines will endeavor to redeliver the aircraft to the Customer within *** work days from date of start of services on aircraft or as otherwise agreed in writing prior to aircraft start 

19

 

date
provided no inspection finding causes additional time required. Customer will be notified upon discovery of any item that would cause any such additional time. 

Aircraft Start Date and times—Aircraft start dates and times shall be agreed to by both parties as recorded on the "dock plan" as "day one."

	V.
	Warranty
Period: 

Workmanship
only, for a period of *** from the date of redelivery of the equipment. 

	VII.
	Other
Services and Charges: 

Labor,
Material and costs: 

	1.
	Labor, excluding Engineering—for all labor hours, including but not limited to routine and
non-routine task cards as follows: 

Methodology: Routine airframe check work and non-routine tasks generated from the routine inspection work cards will be charged at the labor
rate specified below in VII.1.a. until three checks of the same type have been completed. Upon the completion of the third occurrence, an agreed standard number of hours will be established from the
average of the occurrences and mutual approval of the both parties. From that point forward, the price for labor will be a fixed based on the "Standard hours" with a variance of plus or minus 5%. The
sum of C-check routine hours and related non-routine hours will be compared with the standard hours. Any required adjustments in the charges will be made to benefit the
appropriate party per section VII.1.b. and VII.1.c. All structural inspection task cards, Customer request items and additional modifications are specifically excluded and are charged using ***
rates set forth in this exhibit as applicable. Any labor hours that can be considered as repeatable by three (3) events may be included in the standard hours upon mutual agreement. Standard
labor hours will be reviewed on a bi-annual basis. Rates to be used are the following: 

	a.
	Standard
labor through the end of each calendar start date prior to December 31 of that year: 

2006:
*** per hour retroactive to aircraft N866GA

2007: *** per hour

2008: *** per hour

2009: *** per hour

2010: *** per hour 

	b.
	Charge
for standard labor exceeding the upper limit of the variance—*** per hour

	c.
	Credit
for standard labor exceeding the lower limit of the variance—*** per hour 

An
example of the calculation for this pricing structure is attached to this exhibit as Table B to provide further clarification. If Allegiant adds more than 12 aircraft to their fleet in a given
calendar year, check capacity and labor rates will need to be reviewed by both parties. 

Drop-in aircraft—A drop-in is considered non-scheduled and will be administered by utilizing a "Visiting
Aircraft Agreement" and *** rates would apply. 

Induction aircraft defined as new additions to Allegiant's existing fleet, will be charged at the applicable rate for the dates above, based on the date
at the start of the check. American Airlines will provide check slots for these aircraft as our check capacity allows. 

	2.
	Engineering—

American
will endeavor to deliver all engineering for an aircraft while in check during the given span time of the check unless an inspection finding and engineering requirements drive 

20

 

the
redelivery of the aircraft beyond this requirement. Upon discovery of any item that will cause a delay in the engineering data, the Customer will be notified as soon as practicable. 

Engineering
projects that fall outside an aircraft check, the start time and duration of the project will be scheduled and agreed to by both parties prior to starting the project. 

On-call
engineering will be provided as needed. American will respond to such requests with reasonable urgency to resolve the Customer request in a timely manner. 

Allegiant
to provide support information as needed, including but not limited to, the following: 

A.
Aircraft Data

B. Modification requirements

C. Aircraft access to gather data

D. Maintenance program documentation

E. Existing engineering specifications and/or engineering change orders 

Pricing
will be based on the following scale: 

	0—25	 	hours =	 	*** per hour
	26—50	 	hours =	 	*** per hour
	51—100	 	hours =	 	*** per hour
	101+	 	hours =	 	*** per hour

	3.
	Outside Services—cost plus *** not to exceed *** per line item. Transportation cost is the responsibility of
the Customer.

	4.
	New Parts and Materials—AA's *** price *** or invoice price for newly purchased parts, plus a handling fee of
*** not to exceed *** per item. Transportation cost is the responsibility of the Customer.

	5.
	Exchange Parts for C-Checks—AA will make every effort to exchange repairable parts required for
the c-checks. Charges will be based on *** of the total cost of the "repair" plus the cost of repair, or the cost of repair plus a floor of ***; whichever is greater. The "repair,"
including and AA specific modifications (changes made by American Airlines Engineering), will be based on the labor rates set forth in the contract section VII.1.a. above and the material rates
as applicable within this section VII. of this Exhibit A-6.

	6.
	Used Serviceable Materials—AA's *** price *** or invoice price for newly purchased parts, plus a handling fee
of *** not to exceed *** per item. Transportation cost is the responsibility of the Customer.

	7.
	Used Serviceable Life Limited Parts—Prorated based on *** price, based on the remaining life of any such part.
If purchased from an outside vendor, the cost plus a handling fee of *** not to exceed *** per item. Transportation cost is the responsibility of the Customer.

	8.
	Customer supplied Pre-pull kit material—Value, as provided by copy of Customer's invoice. Handling
fee of *** not to exceed *** per kit. Transportation cost is the responsibility of the Customer.

	9.
	Normal Consumable materials—Supplied by American Airlines in the performance of this work scope; they shall be
charged a flat fixed fee of *** per check.

	10.
	Bundled services—The following items are all included in one fee of *** per check: 

A.
Ramp Movement/Docking

B. Aircraft Wash (for inspection)

21

 

C.
De-Fuel/Fuel

D. Preplanning, Post Check evaluation

E. HazMat Disposal

F. Supervisors and Support for unknown factors that have a direct impact on check 

	11.
	Other Fees—Airport fees (Landing Fees and third party assessment fees if applicable) and/or any taxes, which
may be imposed by government or Airport agency on American in the performance of providing these services, shall be borne by the Customer.

	12.
	Tooling, test equipment, Part kits, etc.—These items shall be charged at vendors invoiced rate, plus all
transportation costs and a handling fee of *** not to exceed *** per line item.

	13.
	On-call Tech support—Troubleshoot MD80 maintenance problems and dispatch mechanics for AOG
maintenance as requested by the Customer. 

This
includes: 

	A.
	Twenty-four
hour year-round on-call Tech Support service by telephone 
	B.
	Call
response and resolution, including recommended actions to be taken for correcting problem, assisting in troubleshooting of repeat problems and out of service (OTS)
aircraft 
	C.
	Mechanics
available for field-trip on-call maintenance as requested by Customer 

Allegiant
to provide the following: 

	A.
	MEL
System parameters 
	B.
	Tracking
requirements 
	C.
	Training
on Allegiant unique items, GPM, logbook, deferral process and MEL book 
	D.
	Access
and a copy of all Maintenance Manuals (on-line or microfiche) 
	E.
	Continuous
Maintenance Manual revision service 

Time Estimate:

American
will endeavor to get all procedures in place and ready for implementation within 90 days from the date this agreement is executed. 

Call
response time would be immediate or as soon as practicable depending on call volumes. 

Field
trip response time would be as soon as practicable allowing time to notify AMT's and arrange travel and delivery of personnel and tools. 

Allegiant
provided information would be needed to maintain compliance. This information should be provided as soon as practicable. Any delay in the providing of timely information and updates will
have a direct impact on American's ability to administer this service. 

Charges:

On-call
Tech services: 

	A.
	Initial
set-up—Fee to be determined based upon Customer requirements and format of available information. This will be charged by the actual
number of hours required plus any hardware fees (set up for dedicated phone line). An estimate will be provided after initial evaluation of project scope and data format. This amount will be charged
on the invoice for the first month of service.

	B.
	A
fee of *** would be charged for each call pick-up and would include the first ***. Each additional hour, or portion thereof, would be charged at *** per
hour for the duration of the call. 

22

 

Field-trip services:

	C.
	Standard
time (time clock starts upon departure for field trip) Monday through Friday excluding holidays—Labor rate of *** per hour for the first
8.5 hours worked or traveled for each mechanic per mechanic per hour per day.

	D.
	Overtime,
Weekends and Holidays—Labor rate of *** per hour per mechanic including any applicable travel time. Overtime is defined as any continuous work or
travel time that exceeds 8.5 hours of standard time per day or if the time falls on the weekend or a holiday.

	E.
	The
Customer is responsible for all reasonable travel and incidental charges for AA personnel.

	14.
	Wheels and Brake Service—

	A.
	Brake Major Service (Overhaul)

	1.
	Receiving
inspection, generate work order 
	2.
	Complete
disassembly 
	3.
	Clean
housing and subcomponents as required 
	4.
	Inspection
of components 
	5.
	Repair
and rework parts as possible per Manual along with the regrind of Rotors as allowed for reuse. 
	6.
	Installation
of new pads on Stators, Pressure plates and Torque Tubes. 
	7.
	Housings
cleaned and visual inspected again along with any corrosion removed and surface treatment per Manual. 
	8.
	Perform
visual inspection with dimensional checks of all components at reassembly of housing, installing new packing, swedge tubes and other expendables. 
	9.
	Reassembly
of Brake with new pads and new or serviceable rotors. 
	10.
	Pressure
and functional check of assembly for final test and return to service with 8130 Tag 
	11.
	Package
and prepare for shipment in container provided by Customer.

	

	B.  Brake Check and Repair

	1.
	Receiving
inspection, generate work order. 
	2.
	Clean,
visual inspection, functional check 
	3.
	Repair
findings 
	4.
	Final
check and return to service with 8130 Tag. 
	5.
	Package
and prepare for shipment in container provided by Customer. 

Included
in labor cost are plasma cutting, welding, and machine process of crack repairs on the stators, pressure plates, and torque tubes. Also rework of rotors included in labor cost. 

Expendables
Included 

	C.
	Major Wheel Service (Overhaul)

	1.
	Receiving
inspection, generate work order 
	2.
	Complete
disassembly 
	3.
	Clean
wheel halves, components, and hardware. (Wheel bearings cleaned, inspected, repacked, and reused if serviceable.) 
	4.
	Dimensional
checks and minor repairs (i.e. nicks scratches, corrosion removal.) 
	5.
	Alodine
anticorrosion treatment of all exposed aluminum. 
	6.
	Perform
Eddy Current inspection and Ultra Sonic inspection of wheel halves as required. 

23

 

	7.
	Tie
bolts inspected then anti-seize applied to bolts and nuts. 
	8.
	Reassembly
of wheel halves 
	9.
	Install
tire and inflate with nitrogen 
	10.
	Install
bearings, grease seals, retainer clips, and leak check 
	11.
	Final
check and return to service with 8130 Tag. 
	12.
	Package
and repair for shipment in container provided by Customer

	

	D.
Minor Wheel Service (Tire Change)

	1.
	Receiving
inspection, generate work order 
	2.
	Disassembly
of wheel halves 
	3.
	Clean
wheel halves, and hardware. (Wheel bearings cleaned, inspected, repacked, and reused if serviceable.) 
	4.
	Dimensional
checks and minor repairs (i.e. nicks scratches, corrosion removal.) 
	5.
	Alodine
anticorrosion treatment of all exposed aluminum. 
	6.
	Perform
Eddy Current inspection and Ultra Sonic inspection of wheel halves as required. 
	7.
	Tie
bolts inspected then anti-seize applied to bolts and nuts. 
	8.
	Install
tire and inflate with nitrogen 
	9.
	Install
bearings, grease seals, retainer clips, and leak check 
	10.
	Final
check and return to service with 8130 Tag. 
	11.
	Package
and repair for shipment in container provided by Customer 

Painting
is additional charge if required; American has had excellent success with the alodine treatment and does not repaint wheels and brakes. 

Welding
and machine repairs on wheels are additional cost charged at the rate listed in VII.1.a. 

Expendables
Included. 

Time Estimate:

	Nose Wheel Overhaul	 	*** shop days
	Main Wheel Overhaul	 	*** shop days
	Main Wheel Tire Change	 	*** shop days
	Brake Overhaul	 	*** shop days
	Brake Check and Repair	 	*** shop days

Shipping Responsibility:  

American is responsible for all shipping and Allegiant will be invoiced for one way shipping. Rates will be charged at the prevailing rates charged to American Airlines. 

24

 

Service Fees:  

Fixed Rates for Labor and kit not including parts that are "as needed" or "upon condition" or not specifically listed in the kit: 

	Wheels:
	 	Labor and Kit

	1. Nose Wheel Overhaul	 	***
	2. Main Wheel Tire Change	 	***
	3. Main Wheel Overhaul	 	***
	4. Nose Wheels	 	***
	5. Main Wheels	 	***

	Brakes:
	 	Labor and Kit
	 	 
	 
	4. Check and Repair	 	***	 	(no kit—parts only as needed	)
	5. Overhaul	 	***	 	 	 

Scrap
parts are not included in any of the fixed prices. 

Parts
required that are considered "as needed" or purchase of parts to replace anything that is considered scrap will be considered "New Parts and Materials" and charged as follows: 

New
Parts and Materials—AA's *** price or invoice price for newly purchased parts, plus a handling fee of *** not to exceed *** per item. Transportation cost is the responsibility of the
Customer. 

Part
Kits listed in Table A of this Exhibit A-6 

	15.
	Reliability and Trend Analysis Service—

	A.
	Identify
those systems/components whose inherent reliability prove inadequate and provide this information to the appropriate Allegiant Engineering and Maintenance
Contacts. Data provided should be used by Allegiant to develop enhancements, as required, to restore reliability to its inherent level.

	B.
	Provide
data displays (reports, graphs, etc.) that accurately summarize the fleet performance to the appropriate Allegiant Engineering and Maintenance Contacts to help
evaluate the effectiveness of the total maintenance program. 

This service includes the following reports:

Delay Cancellation Analysis Trend Chart

PIREP Counts and Rates with top 25 degrading PIREP chart

MEL Counts and Rates with top 25 ATA Systems by count

2 Digit ATA Year over Year comparison

4 Digit ATA Year over Year comparison

Air Interrupt summary w/trend charts 

	C.
	Work
with Allegiant to create a documented Reliability program to layout guidelines for responsibilities, data flow, work flow, etc. based on their available data
sources.

	D.
	Provide
timely reports based on either an "event" or "alert" based program.

	E.
	Provide
"root cause" analysis as needed.

	F.
	Provide
information to improve Allegiant's overall fleet reliability.

	G.
	Help
enhance the Continuing Analysis and Surveillance System (CASS) set forth in 14 CFR Sec. 121.373. 

25

 

	H.
	Provide
reports for evaluation as outlined in Advisory Circular (AC) No. 120-17A. 

Specifications:

	A.
	All
data to be provided by Allegiant electronically.

	B.
	American
Airlines will keep an electronic data back-up for a 1 year period. 

Report Time:

	A.
	Initial
set-up: American will endeavor to have program set-up and initialized 45 days from receipt of all data from Allegiant.

	B.
	Report
Interval Recommendation: Monthly—Electronically 

Charges:

	A.
	Initial
set-up—Charge to be determined based upon Customer requirements and format of available information. This will be charged by the actual
number of hours required. An estimate will be provided after initial evaluation of project scope and data format. This amount will be charged on the invoice for the first month of service.

	B.
	A
flat fee of *** per month for the reports defined above including 3 ad hoc reports per month for a fleet size up to *** aircraft, *** for each additional aircraft. The
initial charge will be charged upon completion of setup.

	C.
	Additional
ad hoc reports: *** per hour for report prep. *** minimum.

	D.
	FAA
meeting Support/Presentation: *** per day per engineer

	16.
	Heavy Maintenance Planning— 

Preparation
and delivery of Planning Services including review of time controlled aircraft and items, scheduling of airframe "C" checks and bill of work preparation. Items provided as needed would be
modification maintenance planning and Airworthiness Directive maintenance planning. 

This
service includes: 

	A.
	Weekly
updates of normal airframe maintenance plans.

	B.
	Bills
of work for normal airframe maintenance as needed based upon the plan and time controlled maintenance items.

	C.
	Weekly
updates of any special project planning as needed and agreed to by both parties. 

Assumptions:

Allegiant
to provide the following information: 

	A.
	Maintenance
program information including work cards with updates 
	B.
	Time
control data 
	C.
	Aircraft
revenue trip schedules 
	D.
	Aircraft
AD summaries including Service Bulletins 
	E.
	Modification
information as required 
	F.
	Access
to work card system to print checks 

Report Time estimates:

Report
Intervals: Weekly or as otherwise agreed 

Charges:

26

 

	E.
	A
flat rate of *** per month for a fleet size up to *** aircraft, *** for each additional aircraft. Includes all normal maintenance planning and Bill of Work preparation
for "C" checks. This includes all existing AD's at the date of signature. The initial charge will be charged upon completion of setup. 

Special
project planning such as new modification planning and AD planning as needed will be outside this service and fees will be mutually agreed. 

	17.
	Travel Passes—American Airlines will provide a total of *** round trip tickets per year to be used by the
on-site Allegiant representatives for travel between a destination within the main land United States and TUL or the base where a C-check is being performed. The ticket route
and time will be based on available space within the American Airlines flight system.

	VIII.
	American's
Maintenance Facility: 

American
Airlines, Inc.

Maintenance and Engineering Center

3800 N. Mingo Road

Tulsa, OK 74116 

	IX.
	Customer's
Invoice Address: 

Allegiant
Air

Attn: Accounts Payable

3301 North Buffalo Drive Suite B9

Las Vegas, NV 89129 

	X.
	Parts 

All
known parts (prepull or rotable's) as per the work documents, manuals, and original task cards for the requested work, must be in the possession of the seller at a minimum of 72 hours
before aircraft induction or as otherwise agreed to. Any part(s) that the Customer requests to be provided by American must be made in writing 7 days prior to check and American will provide
such part(s) based on availability of such part(s). 

	XI.
	Invoicing
to Allegiant 

American
will endeavor to invoice according to the following schedule: 

	A.
	C-check
deposit invoice—no later than *** days after induction of aircraft 
	B.
	C-check
invoice—*** days after redelivery of the aircraft to Allegiant 
	C.
	Reconciling
C-check invoice including component and part repairs—*** days after redelivery of the aircraft to Allegiant 
	D.
	Service
fee invoices—monthly

	XII.
	Payment
Terms 

An
amount of ***for each C-Check to be paid prior to the aircraft redelivery will be applied to the charge for the C-check. Net *** days on all other invoices. 

27

 

Agreed
and accepted by, 

	Allegiant Air	 	American Airlines, Inc.
	

By:	

    
	
 	

By:	

    

	

Printed	
 	

Printed
	Name:	    
	 	Name:	    

	Title:	    
	 	Title:	    

	Date:	    
	 	Date:	    

28

QuickLinks

MAINTENANCE GENERAL TERMS AGREEMENT

ARTICLE I PURCHASE AND PERFORMANCE OF SERVICES

ARTICLE II CONDITIONS PRECEDENT TO PERFORMANCE OF SERVICES AND DELIVERY OF EQUIPMENT FOR SERVICES

ARTICLE III PAYMENTS AND CHARGES

ARTICLE IV RESERVED

ARTICLE V TERM OF THE AGREEMENT

ARTICLE VI GENERAL TERMS AND CONDITIONS

ARTICLE VII LIMITED WARRANTY

ARTICLE VIII INSURANCE

ARTICLE IX INDEMNITY

ARTICLE X EVENTS OF DEFAULT

ARTICLE XI MISCELLANEOUS

EXHIBIT A-6 Page 1 of 11

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