Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

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. 

Page 1 of 16

 

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
[...***...] 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 [...***...] Allegiant's failure to provide any Certificate 

Page 7 of 16

 

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

Page 9 of 16

 

        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

QuickLinks

AIR TRANSPORTATION CHARTER AGREEMENT

AMENDMENT TO AGREEMENT

Recitals

SECOND AMENDMENT TO AGREEMENT

Recitals

MODIFICATION OF AGREEMENTExhibit 10.13  

[LAS
VEGAS McCARRAN INTERNATIONAL AIRPORT LETTERHEAD] 

April
14, 2003 

Mr. Andrew
Levy

Corporate Secretary & Treasurer
 ALLEGIANT AIR, INC.

3291 North Buffalo Drive, Suite 8

Las Vegas, NV 89129 

RE:    AIRLINE OPERATING PERMIT—McCarran International Airport  

Dear
Mr. Levy: 

        Pursuant
to applicable provisions of the Clark County Airline Rates and Charges Ordinance 20.10, as amended, effective July 1, 2001, the Clark County Department of Aviation,
hereinafter "County," is granting this Airline Operating Permit, hereinafter "Permit," allowing ALLEGIANT AIR, INC., hereinafter "Company,"
operational rights and privileges as an air transportation company at McCarran International Airport, hereinafter referred to as "Airport," predicated upon Company's acceptance of the following
conditions: 

	1.
	TERM. The term of this Airline Operating Permit, hereinafter "Permit," will commence on April 22,
2003, and continue on a month-to-month basis and will be automatically extended for each successive month thereafter unless terminated by thirty
(30) days advance written notice by either party.

	2.
	USE. Upon performance of the agreements, provisions and conditions contained in this Permit, Company will have the use of the Premises
for the purpose of operating a scheduled air transportation business and for no other purpose except as may be approved, in writing, by the Director of Aviation or designee.

	3.
	RENTS AND FEES. Company will pay to County directly the following rates, charges, and/or
fees:

	3.1
	Passenger
Facility Charges: 

Three
and 00/100 ($3.00) Dollars per enplaned revenue passenger, less the amount allowed by Federal Aviation Regulation Part 158 to be retained by the air carrier. 

	3.2
	Landing
Fees: 

Current
rate of One and 22/100 ($1.22) Dollars per 1,000 pounds, or fraction thereof, of maximum gross landing weight. Landing fees shall be collected for all flights and/or landings, which shall
include but is not limited to scheduled operations, cargo operations, training, emergencies, or other similar operations. 

	3.3
	Joint
Use Fee: 

Company
will pay rent at the rate of current rate of Sixty-Eight and 04/100 ($68.04) Dollars per square foot per annum for space jointly used by the air transportation companies and/or airline
servicing companies, allocated as follows: Ninety percent (90%) of the charge for joint use space will be prorated according to the ratio of (i) the number of each air transportation company's
or airline servicing company's enplaning passengers at the Airport during the most recent month for which such information is available to (ii) the total number of enplaning passengers at the
Airport during the most recent month for which such information is available of all air transportation companies and airline servicing companies using joint use space. The remaining ten percent (10%)
will be prorated in equal shares among all air transportation companies and airline servicing 

 

companies
that use the joint use space and operate flight schedules five or more days per week. One equal ten percent (10%) share shall be further divided on a direct proration basis among the
Permitted carriers. 

	3.4
	Exclusive
Space Rental: 

OFFICE SPACE—NORTH TICKETING, LEVEL 1

Exclusive Use Space: 227 square feet (total)—Door No. TB/1416

227 sq. ft @ the current rate of $68.04 per square foot per year (psfpy)

$15,445.08 annually; $1,287.09 monthly

Exhibit A: Engineering Drawing No. L-1431, Sheet 1 of 1, Dated 04/03 

	3.5
	Common
Use Fees: 

The
current rate of Forty Cents ($0.40) per enplaned passenger for non-exclusive use of ticket counter, sky cap podiums, baggage conveyor systems, and baggage make-up room. Such use is
subject to scheduling, as identified in Section 10. 

	3.6
	Common
Use Per Turn Gate Use Fees: 

The
current rate of One Hundred Eighty and 00/100 ($180.00) Dollars per turn for narrow body aircraft operations and Three Hundred and 00/100 ($300.00) Dollars per turn for wide body aircraft
operations. 

	3.7
	Off-Gate
Parking Fees: 

Company
shall pay aircraft paring charges for off-gate positions at the following rates: 

	•
	Less
than six (6) consecutive hours = No Charge

	•
	More
than six (6) consecutive hours but less than twelve (12) consecutive hours = One Hundred and 00/100 ($100.00) Dollars.

	•
	More
than twelve (12) consecutive hours but less than twenty-four (24) consecutive hours = Three Hundred and 00/100 ($300.00) Dollars.

	•
	More
than twenty-four (24) consecutive hours but less than forty-eight (48) consecutive hours = Six Hundred and 00/100 ($600.00) Dollars.

	•
	More
than forty-eight (48) consecutive hours = Six Hundred and 00/100 ($600.00) Dollars shall be added for each subsequent twenty-four (24)
hour period or any portion thereof.

	3.8
	Ground
Handling Fees: 

Company
will be subject to payment of the County's ground handling fees equal to five percent (5%) of the total ground handling charges, through its County approved ground handler. Such arrangements
shall be made to ensure that such payments are being made on behalf of Company to County. 

Company
will use best efforts to ensure that payments are made to the County in a timely manner. 

Company
understands and agrees that County retains the sole right to redetermine rates, charges, and/or fees from time to time. County will provide advance written notice of these fee changes. The
Airline Rates and Charges Ordinance, as applicable, and as amended from time to time is incorporated in this Permit by reference and is considered a part hereof. Company will be subject to all of the
terms and conditions as a condition of Company's use of this Airport. 

2

 

	4.
	METHOD OF PAYMENTS AND REPORTS. On or before the 15th of each month (Due Date), Company will submit an activity report to County for its
aircraft, passenger, and cargo activities at the Airport for the preceding month's activities on forms acceptable to County, together with a check in payment for Company's operations at the Airport in
accordance with Section 3 above.

	5.
	RECORDS AND AUDIT. Company agrees to make books, records, and accounts of all Company's Airport business activities available at any
time upon written request, Monday through Friday, 9:00 AM to 5:00 PM, for the inspection by County, or such agents, employees, or accountants as County may designate. County will at any time have the
right to cause an audit of the Company's business relative to its operations at the Airport to be made by a Certified Public Accountant of County's selection, and if the business activity reports
previously made to County by Company are found to be intentionally understated in any respect or to be understated (either intentionally or unintentionally) by a greater margin than one percent (1%)
of Company's actual activity for the period of review, as shown by such audit, Company will immediately pay to County the costs of such audit, as well as the additional payments shown to be payable to
County by Company, otherwise the cost of such audit will be paid by County. If such audit discloses any willful or intentional inaccuracies, this Airline Operating Permit, at the option of County and
as a cumulative remedy, may be thereupon canceled and terminated.

	6.
	LETTER OF CREDIT. Within ten (10) days of issuance of this Airline Operating Permit, Company agrees to provide a security deposit
to County based on an amount which is equal to no less than One Hundred Thirty-Five Thousand and 00/100 ($135,000.00) Dollars for two
(2) months estimated rates, charges, and/or fees, including PFCs, owed to County as determined at County's sole discretion. Such security deposit will be in the form of an irrevocable Letter of
Credit. In the event Company fails to make payments in accordance with the requirements of this Permit, County has the right to apply such security deposit as may be necessary or to exercise any other
legal remedies to which it may be entitled.

	7.
	LATE FEES. Any payment due by Company to County that is not received within three (3) days after the due date will accrue
interest at the interest rate of twelve percent (12%) per annum from the due date until paid in full.

	8.
	TAXES, LICENSES, PERMITS. Company will promptly pay all taxes, excises, license fees and permit fees of whatever nature applicable to
its operation hereunder. Company may elect, however, at its own cost and expense, to contest any such tax, excise, levy or assessment. Company will keep current municipal, state or federal licenses or
permits required for the conduct of its business.

	9.
	TICKET COUNTER AND GATE ASSIGNMENT. County has the right to schedule or otherwise assign all Common Use Facilities and County gates.
Company shall be responsible to notify County, in advance, of its facility requirements for ticket counter and/or gate use. Company acknowledges that the County will assign the use of Common Use
ticket counter positions and gate holdrooms and that such assignments will be reasonably determined at the sole discretion of the County.

	10.
	IMPROVEMENTS. Company has inspected the facilities and accepts same in present condition. Any changes, modifications, or alterations
will be at Company's sole cost and expense. Also, any changes or improvements are subject to County's prior written approval. Plans for any such improvements are to be submitted to the office of the
County's Assistant Director of Finance, (702) 261-51700, for County coordination and approval. Upon termination of this Airline Operating Permit, howsoever caused, Company will
vacate any Assigned Areas, as applicable, and return the area to its original condition, normal wear and 

3

 

tear
excepted. All material items, whether owned by Company or are in Company's custody and control, shall be removed from the Premises. Any material items left behind by, or on behalf, of Company
shall be considered abandoned and shall be disposed of accordingly at the sole cost of Company. 

	11.
	SUBLEASING. Company will not sublease, rent or permit any persons, firms or corporations to occupy or use any part of the facilities or
Assigned Areas, as may be applicable, without having received the written consent of County's Director of Aviation therefor. Any arrangements must be in the form of a written instrument and must be
specifically for purposes and uses of the facilities, including Assigned Areas as may be applicable, as authorized under this Airline Operating Permit and subject to the provisions of this Airline
Operating Permit. Company will submit a copy of such writing at the time of requesting County's consent therefor.

	12.
	COUNTY'S RESPONSIBILITIES. In the occupancy of Company's Assigned Areas, as applicable, hereunder, County will provide:

	12.1
	Existing
electrical outlets only in the Assigned Areas.

	12.2
	Basic
power for general area illumination.

	12.3
	General
area heat and air conditioning.

	12.4
	All
building exterior repairs except those caused by negligence on the part of Company or its clients, ground handlers, employees, agents, contractors, or subcontractors.

	12.5
	Common-Use
computer equipment at the ticket counter and gate podium positions.

	13.
	COMPANY'S RESPONSIBILITIES. In the occupancy of Company's Assigned Areas, as applicable, hereunder, Company will provide:

	13.1
	Any
modifications or connections to existing heating, air conditioning, plumbing, and electrical systems as required by Company, including the payment of connection fees and any
recurring periodic charges.

	13.2
	Telephone
systems, including the payment of connection fees and any recurring periodic charges.

	13.3
	Interior
walls.

	13.4
	Additional
illumination or decorative lighting.

	13.5
	Teletype
or computer system, which shall include all other common-use computer equipment not listed in Paragraph 14.5 above, if desired, including the payment of
installation, maintenance, and utility charges therefor.

	13.6
	Electrical
power for additional elements based on general power rates established by County's Energy Management Section. However, County may require the installation of a meter by
Company so that Company may become a direct customer of Nevada Power Company. Company will be responsible for the payment of connection fees and any recurring periodic charges.

	13.7
	Furnishings
and equipment.

	13.8
	Repair,
maintenance, and janitorial for the Exclusive Use Space, as more particularly defined in the Maintenance Matrix, Exhibit "E," attached thereto and by reference made a part
hereof. If Company fails to perform its obligations under this subsection, County may do so after reasonable notice and recover its entire cost plus a fifteen percent (15%) administrative charge from
Company. 

4

 

	13.9
	Company
shall be ultimately responsible for all aspects of safety and security relating to Company's operations, including but not limited to, providing access to the aircraft for
physically challenged passengers as may be appropriate and as required under 49 CFR part 27, whether or not the aircraft type is specifically excluded from this ruling.

	14.
	INDEMNIFICATION. Company agrees to indemnify and hold County forever harmless from and against all liability, loss, demand, judgements
or other expense, including, but not limited to, defense costs, expenses and reasonable attorney fees, imposed upon County by reason of injuries or death of persons, including wrongful death, and
damages to property caused during or because of Company's use or occupancy of County property or any actions or non-actions of Company, its officers, employees agents, or other
representatives, including movement of aircraft, provided, however, that such indemnity will not apply as to any negligent act or omission solely that of County, its employees, agents, or
representatives.

	15.
	INSURANCE. Prior to commencement of service, Company must provide certificates of insurance in the amounts as follows:

	15.1
	Aircraft
liability insurance and commercial general public liability insurance, including hangarkeepers liability insurance, for claims of property damage, bodily injury, or death
allegedly resulting from Company's activities into, on, and leaving any part of the Airport or the County Airport System, in an amount not less than One Hundred and Fifty Million ($150,000,000.00)
Dollars.

	15.2
	Automobile
liability insurance, if applicable, in an amount adequate to cover automobile insurance on the Airport in an amount not less than Five Million ($5,000,000.00) Dollars per
person and per occurrence, if applicable. 

County,
its officials, officers, employees, and volunteers are to be named as additional insureds on the above-referenced certificates of insurance. Copies of such certificates are to be provided to
County Business and Development Division at the Airport. 

	16.
	RULES AND REGULATIONS. Company must adhere to the Airport Rules and Regulations Manual, Operating Directives, Airport Security Plan,
Airport Emergency Plan, Airport Certification Manual, Airport Tenant Improvement Manual and the Environmental Directives as they are amended from time to time.

	17.
	STANDARDS OF OPERATION. Company will, in and about the Airport, exercise reasonable control over the conduct, demeanor and appearance
of its agents and representatives and the conduct of its contractors and suppliers. Upon objection from County to Company concerning the conduct, demeanor or appearance of such persons, Company will,
within a reasonable time, remedy the cause of the objection.

	18.
	USE OF EQUIPMENT. It is acknowledged by County that Company may use certain vehicles and equipment in the operation of its business
pursuant to this Airline Operating Permit. The use and movement of these vehicles and equipment in, on, or about the ramp areas and any other areas of the Airport covered by the terms of this Airline
Operating Permit will be operated by Company, its employees, or agents in accordance with responsible safety and traffic practices and in accordance with any rules, regulations, and procedures
established by County or any other governmental agency. The vehicles and equipment will be parked or stored as instructed by County. At County's request, Company will provide County with a current
list of its owned or leased automotive equipment to be utilized pursuant to this Airline Operating Permit.

	19.
	SIGNS. Company will not erect, install, operate, or cause or permit to be erected, installed or operated in or upon the Airport or any
other County property, any signs or other similar 

5

 

advertising
devices for its own business without having first obtained the written consent of County. Such written consent may consider and provide conditions concerning factors including, but not
limited to, size, type, content, and method of installation. 

	20.
	BADGING. Company must obtain Airport security registration and badging for their eligible employees and pay the related costs. Company
shall pay to County the current rate of Ten and 00/100 ($10.00) Dollars per badge issued. Lost badge fees will be charged at the current rate of Twenty-Five and 00/100 ($25.00) Dollars per
badge for the first lost badge and Fifty and 00/100 ($50.00) Dollars per badge for the second lost badge, in addition to the per badge fee as listed above. Company must obtain Airport badging for its
employees, subcontractors, suppliers, agents, and representatives, and pay any and all related costs associated with this privilege. Said badges will only be valid for the period of this Permit and
must be returned to the Airport Badging Office within twenty-four (24) hours or the next business day after expiration or suspension and/or termination of this Permit.

	21.
	AIRPORT SECURITY PROGRAM. Company covenants that it will at all times maintain the integrity of the Airport's Security Plan and
Transportation Security Administration (TSA) Regulations 49 CFR Parts 1500, 1520, 1540, 1542, 1544, 1546, 1548, and 1550, as promulgated, and that it will always maintain the security of any airfield
access which Company maintains. Company hereby agrees that it shall also be responsible for conducting and verifying any and all required background checks and for badging for any and all of its
employees, subcontractors, suppliers, agents, and/or representatives. Company also hereby agrees that it shall also be responsible for any and all of the actions of its employees, subcontractors,
suppliers, agents, and/or representatives and shall provide any and all necessary escorts, as outlined in the Airport's Security Plan, at all times. 

Should
Company, its employees, subcontractors, suppliers, agents, and/or representatives cause any security violation, and should County be cited for a civil penalty for such security violation,
Company agrees to reimburse County for any monetary civil penalty which may be imposed by the Federal Aviation Administration. Company will have badge/access privileges immediately suspended and/or
revoked by the Airport Security Administrator for failure to adhere to the Airport's Security Plan or for failure to return all badges within the time frames specified herein. Such actions may also
result in the immediate termination of this Permit, at the sole discretion of the County. 

	22.
	SECURITY AND SCREENING. Company will be subject to satisfactory payment arrangements with the firm providing security screening at the
Airport. Company will use its best efforts to ensure that payments are made to the firm providing security screening in a timely manner.

	23.
	FUELING CONSORTIUM. Company will be subject to satisfactory payment arrangements with the Airport's fueling consortium. Company will
use best efforts to ensure that payments are made to the Airport's fueling consortium in a timely manner.

	24.
	EMPLOYEE PARKING. Parking for Company's employees working at the Airport may be available in a parking area as determined by County at
rates equal to those paid by other Airport tenants. The present rate is Ten and 00/100 ($10.00) Dollars per month per employee parking permit. Company must provide County with the names of eligible
employees and make arrangements for monthly invoicing for the charges. Please contact the Airport Parking Office, (702) 261-5186, regarding the above.

	25.
	ENVIRONMENTAL COMPLIANCE. Company hereby agrees to be bound in the operation of its service at the Airport by all Airport Rules and
Regulations, Operating Directives, Airport Tenant Improvement Manual, Airport Environmental Compliance Handbook, Nevada Revised 

6

 

Statutes,
County Ordinances or other such governmental regulations, whether municipal, state or federal, including, but not limited to, all environmental laws and will immediately, upon request,
verify compliance to any such requirement. Company must adhere to the Airport Rules and Regulations, as may be amended from time to time. Company agrees to be subject to any fines from violations of
any of the Rules and Regulations and/or Operating Directives. 

Company
will not cause or permit any hazardous material to be used, generated, manufactured, produced, stored, brought upon, or released on, under or about the Assigned Areas, as applicable, or
transported to and from the Assigned Areas, as applicable, by Company, its Sublessees, their agents, employees, contractors, invitees or a third party in violation of any environmental rules,
regulations, ordinances, or laws. 

If
the presence of any hazardous material on, under or about the Assigned Areas, as applicable, caused, or permitted by Company results in any contamination of the Airport, Company will promptly take
all actions, at its sole cost and expense, as are necessary to return the affected area to the condition existing prior to the introduction of any such hazardous material. Company will take all steps
necessary to remedy and remove any such hazardous materials and special wastes and any other environmental contamination as is presently or subsequently discovered on or under the Assigned Areas, as
applicable, as are necessary to protect the public health and safety and the environment from actual or potential harm and to bring the Assigned Areas, as applicable, into compliance with all
environmental requirements. Such procedures are subject to: 

	A.
	Prior
approval of Director of Aviation, which approval will not be unreasonably withheld. Company will submit to Director of Aviation a written plan for completing all remediation
work. Director of Aviation retains the right to review and inspect all such work at any time using consultants and/or representatives of its choice.

	B.
	Such
actions of remediation by Company will not potentially have any material adverse long-term effect on the Assigned Areas, as applicable, in the sole judgement of the
Director of Aviation or designee.

	26.
	NOTICES. All notices, requests, consents, and approvals under this Permit will be served or given only by Certified or Registered mail,
except in cases of emergency, in which case they will be confirmed by Certified or Registered mail. 

Notices
intended for County will be addressed to: 

Clark
County, Nevada

Director of Aviation

P.O. Box 11005

Las Vegas, Nevada 89111-1005 

or
to such other address as may be designated by County by written notice to Company. 

Notices
intended for Company will be addressed to: 

Mr. Andrew
C. Levy

Corporate Secretary and Treasurer
 ALLEGIANT AIR, INC.

3291 North Buffalo Drive, Suite 8

Las Vegas, NV 89129

(702) 256-4332 FAX (702) 256-7209 

7

 

	27.
	The
Director of Aviation, or designee, has the authority to act on behalf of the Board of County Commissioners for all purposes of this Permit, including the ability to terminate this
Permit as set forth herein. 

        A
space is provided below for the acknowledgment and acceptance of the contents of this Permit. Please have an officer or agent of Company with authority to bind  ALLEGIANT AIR, INC. execute and
return one copy of this Permit to our office. The second copy is provided for your files.
 

	Sincerely,

/s/ Randall H. Walker	 	Contents Acknowledged And Accepted:
 ALLEGIANT AIR, INC.
	RANDALL H. WALKER

Director of Aviation	 	BY:	 	/s/ Andrew C. Levy
	 	 	 	 	

	 	 	PRINT:	 	Andrew C. Levy
	 	 	 	 	

	RHW:jo	 	 	 	 
	 	 	TITLE:	 	Secretary & Treasurer
	 	 	 	 	

	 	 	DATE:	 	4/18/2003
	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 
	cc:	 	R. Vassiliadis

M. Traasdahl

A. Koster	 	R. Johnson

R. LePore	 	S. Kichline

C. Donaldson	 	B. Klien

D. Golish	 	B. Bolton

S. Nash

8

EXHIBIT
"A"

[LOCATION MAP]

Drawing No. L1431 

[LAS VEGAS McCARRAN INTERNATIONAL AIRPORT LETTERHEAD] 

February
9, 2004 

Mr. Andrew
Levy

Managing Director
 ALLEGIANT AIR, INC.

3301 North Buffalo Drive, Suite B-9

Las Vegas, NV 89129 

RE:    Space Use Letter No. 1—D-Gates East Wing, Level 1 and Level 2 

Dear
Mr. Levy: 

        In
accordance with Section 3, Rents and Fees, of the Airline Operating Permit, dated April 14, 2003, hereinafter "Permit,"
the Clark County Department of Aviation, hereinafter "County," at the request of ALLEGIANT AIR, INC., hereinafter "Company," is  adding the following
Premises at McCarran International Airport, effective February 15, 2004, as
follows: 

D-Gates East Wing, Level 1—Operations Area, Room Nos. S2/10025, S2/11026B, S2/11027, S2/11028, S2/11031, S2/11032, S2/11033, S2/11034, S2/11034A,
S2/11035, S2/11036A, S2/11036B, and S2/11037

Exclusive Use Space:    2,553 square feet

    2,553sq. ft @ the current rate of $68.04 per square foot per annum (psfpa)

    $173,706.12 annually; $14,475.51 monthly

Exhibit A:    Engineering Drawing No. L-l 759, Sheet 1 of 1, Dated 01/04 

D-Gates East Wing, Level 1—Dripline D-4,

Preferential Use Space: 1,872 square feet

    1,872sq. ft @ the current rate of $68.04 per square foot per annum (psfpa)

    $127,370.88 annually; $10,614.24 monthly

Exhibit A:    Engineering Drawing No. L-1760, Sheet 1 of 1, Dated 01/04 

D-Gates East Wing, Level 2—Holdroom D-4

Preferential Use Space: 3,249 square feet

    3,249sq. ft @ the current rate of $68.04 per square foot per annum (psfpa)

    $221,061.96 annually; $18,421.83 monthly

Exhibit A:    Engineering Drawing No. L-1761, Sheet 1 of 1, Dated 01/04 

        County
and Company agree to the following terms and conditions related to the occupancy of the Premises: 

	1.
	The
term of this Space Use Letter No. 1 shall run on a month-to-month, unless terminated by either party, as provided under the terms and conditions of
the Permit. 

 
	2.
	Company
agrees to indemnify Clark County regarding its use of the Premises in accordance with Section 14, Indemnification, of the
Permit.

	3.
	Company
understands that all responsibilities regarding maintenance of the Premises will be as described in the Permit.

	4.
	Company
agrees that it has viewed the space and by execution of this Space Use Letter No. 1 hereby accepts the Premises in "AS
IS" condition.

	5.
	All
material items, whether owned by Company or which are in Company's custody and control, shall be removed from the Premises. Any material items left behind, or on behalf of Company
shall be considered abandoned and shall be disposed of accordingly at the sole cost of Company.

	6.
	The
Director of Aviation, or designee, has the authority to act on behalf of the Board of County Commissioners for all purposes of this Space Use Letter No. 1, including the
ability to terminate this Letter as set forth herein. 

        Please
incorporate into Company's Permit the enclosed Exhibit A, Engineering Drawing No. L-1759, L-1760, and L-1761, as referenced
above. 

        A
space is provided below for your acknowledgment and acceptance of the contents of this letter; however, use of the subject space and/or equipment will be evidence of acceptance by
Company. Please have the appropriate corporate signature affixed and return one (1) original to our office. The second original is provided for your records. 

	Sincerely,	 	Contents Acknowledged & Accepted:
	/s/ Randall H. Walker	 	 	 	 
	RANDALL H. WALKER	 	ALLEGIANT AIR, INC.
	Director of Aviation	 	 	 	 
	 	 	BY:	 	/s/ Andrew C. Levy
	 	 	 	 	

	 	 	PRINT:	 	Andrew C. Levy
	 	 	 	 	

	RHW:jo	 	TITLE:	 	Managing Director
	 	 	 	 	

	Attachment	 	DATE:	 	2/27/04
	 	 	 	 	

	 	 	 	 	 	 	 
	cc:	 	Rosemary A. Vassiliadis	 	Phil Murray	 	Scott Kichline
	 	 	Barbara L. Bolton, AAE	 	Harry Waters	 	Ralph LePore
	 	 	Bill Klein	 	Marc Traasdahl	 	Cindy Casey-Donaldson
	 	 	Dottie Golish-Gomez	 	Susan Nash	 	Majed Khater
	 	 	Anita Koster	 	Keny Wilper, LAS Station Manager

2

EXHIBIT
"A"

[LOCATION MAP]

Drawing No. L1759 

EXHIBIT
"A"

[LOCATION MAP]

Drawing No. L1760 

EXHIBIT
"A"

[LOCATION MAP]

Drawing No. L1761 

[LAS VEGAS McCARRAN INTERNATIONAL AIRPORT LETTERHEAD] 

May
5, 2005 

Mr. Andrew
Levy

Managing Director
 ALLEGIANT AIR, INC.

3301 North Buffalo Drive, Suite B-9

Las Vegas, NV 89129 

RE:    Space Use Letter No. 2—Operations Space

           Exclusive Use Space, South Baggage Claim, Level 1 

Dear
Mr. Levy: 

        In
accordance with Section 3, Rents and Fees, Airline Operating Permit, dated April 14, 2003, hereinafter "Permit," the
Clark County Department of Aviation, hereinafter "County," at the request of ALLEGIANT AIR, INC., hereinafter "Company," is  modifying the following
Premises at McCarran International Airport, as follows: 

ACTION 1: By deleting the following Exclusive Use Space from the Permit, effective  March 31, 2005:

        North Ticketing, Level 1—Office, Door No. TB/1416

        Exclusive Use Space: 227 square feet

                    227 sq. ft @ the current rate of $68.04 per square foot per annum (psfpa)

                    Fifteen Thousand Four Hundred Forty-Five and 08/100 ($15,445.08) annually; One

                    Thousand Two Hundred Eighty-Seven and 09/100 ($1,287.09) monthly

Exhibit A:    Engineering Drawing No. L-1431, Sheet 1 of 1, Dated 4/03 

ACTION 2: By adding the following Exclusive Use Space to the Permit, effective  April 1, 2005:

        South Baggage Claim, Level 1—Baggage Service Office, Door Nos. CT/1416.1A and CT/1416.1B

        Exclusive Use Space: 227 square feet

                    227 sq. ft @ the current rate of $68.04 per square foot per annum (psfpa)

                    Fifteen Thousand Four Hundred Forty-Five and 08/100 ($15,445.08) annually; One

                    Thousand Two Hundred Eighty-Seven and 09/100 ($1,287.09) monthly

Exhibit A:    Engineering Drawing No. L-2036, Sheet 1 of 1, Dated 3/05 

 

        County
and Company agree to the following terms and condition related to the occupancy of the Premises: 

	1.
	The
term of this Space Use Letter No. 2 shall run on a month-to-month basis, unless canceled by either party, as provided under the terms and conditions
of the Permit.

	2.
	Company
agrees to indemnify Clark County regarding its use of the Premises in accordance with Section 14, Indemnification, of the
Permit.

	3.
	Company
understands that all responsibilities regarding maintenance of the Premises will be as described in the Permit.

	4.
	Company
agrees that it has viewed the space and by execution of this Space Use Letter No. 2 hereby accepts the Premises in "AS
IS" condition.

	5.
	All
material items, whether owned by Company or are in Company's custody and control, shall be removed from the Premises. Any material items left behind, or on behalf of Company shall
be considered abandoned and shall be disposed of accordingly at the sole cost of Company.

	6.
	Company
shall restore Premises to original condition, reasonable wear and tear excepted.

	7.
	The
Director of Aviation, or designee, has the authority to act on behalf of the Board of County Commissioners for all purposes of this Space Use Letter No. 2, including the
ability to terminate this Space Use Letter No. 2 as set forth herein. 

        Please
delete from Company's Permit the enclosed Exhibit A, Engineering Drawing No. L-1431, as referenced above. 

        Please
incorporate into Company's Permit the enclosed Exhibit A, Engineering Drawing No. L-2036, as referenced above. 

        You
will not receive an adjusting invoice for the months of April 2005 and May 2005. The invoices previously submitted for these months are sufficient since the square
footage for the added space and the deleted space are the same. 

2

 

        A
space is provided below for your acknowledgment and acceptance of the contents of this Space Use Letter No. 2, however, use of the subject space and/or equipment will be
evidence of acceptance by Company. Please have the appropriate corporate signature affixed and return one (1) original to our office. The second original is provided for your records. 

	Sincerely,	 	Contents Acknowledged & Accepted:
	/s/ Randall H. Walker	 	ALLEGIANT AIR, LLC
	RANDALL H. WALKER	 	 	 	 
	Director of Aviation	 	 	 	 
	 	 	BY:	 	/s/ Andrew C. Levy
	 	 	 	 	

	 	 	PRINT:	 	Andrew C. Levy
	 	 	 	 	

	RHW:jo	 	TITLE:	 	Managing Director
	 	 	 	 	

	Attachment	 	DATE:	 	7/12/2005
	 	 	 	 	

	cc:	 	Rosemary A. Vassiliadis	 	Alan Stewart	 	Phil Murrary	 	Scott Kichline
	 	 	Barbara L. Bolton, AAE	 	Ralph LePore	 	Bill Klein	 	Harry Waters
	 	 	Cindy Casey-Donaldson	 	Jim Palmer	 	Scott Van Horn	 	Majed Khater
	 	 	Tony Roma	 	Susan Nash	 	Anita Koster	 	 
	 	 	Bob Williamson, LAS Station Manager	 	 	 	 

3

EXHIBIT
"A"

[LOCATION MAP]

Drawing No. L1431 

EXHIBIT
"A"

[LOCATION MAP]

Drawing No. L2036 

[LAS VEGAS McCARRAN INTERNATIONAL AIRPORT LETTERHEAD] 

July
25, 2005 

Mr. Andrew
C. Levy

Managing Director
 ALLEGIANT AIR, INC.
  3301 North Buffalo Drive, Suite B-9

Las Vegas, NV 89129 

RE:
Space Use Letter No. 3—Joint Use Space Modification 

Dear
Mr. Levy: 

        In
accordance with the Airline Operating Permit, dated April 14, 2003, hereinafter "Permit," the Clark County Department of Aviation, hereinafter "County," at the request of  ALLEGIANT AIR, INC.,
hereinafter "Company," is adding the following drawings for Joint Use Space
at McCarran International Airport, effective July 1, 2005:

ACTION 1: By adding the following Joint Use Space to Section 3.3 of the Permit: 

	
Baggage Claim, Level 0—Baggage Handling Areas
	Joint Use Space: 104,144 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1423, Sheet 1 of 1, Dated 3/03
	
Baggage Claim, Level 1—Baggage Claim Carrousel Areas
	Joint Use Space: 105,554 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1424, Sheet 1 of 1, Dated 3/03
	
Airfield/Terminal Transition Areas, Level 0—Baggage Service Tunnels
	Joint Use Space: 32,015 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1425, Sheet 1 of 1, Dated 3/03
	
Terminal 1, Rotunda, Level 2—A/B Security Checkpoint
	Joint Use Space: 8,814 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1426, Sheet 1 of 1, Dated 5/03
	
North Ticketing, Level 1—Baggage Screening Nodes
	Joint Use Space: 3,455 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1450, Sheet 1 of 1, Dated 5/03
	
Central Ticketing, Level 1—Baggage Screening Nodes
	Joint Use Space: 4,398 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1451, Sheet 1 of 1, Dated 5/03
	
South Ticketing, Level 1—Baggage Screening Nodes
	Joint Use Space: 4,497 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1452, Sheet 1 of 1, Dated 5/03
	
C-Gates Bus Plaza, Level 1—Security Checkpoint
	Joint Use Space: 2,351 square feet
	Exhibit B1:	 	Engineering Drawing No. L-1647, Sheet 1 of 1, Dated 5/03
	
South Baggage Claim Esplanade, Level 2—C/D Security Checkpoint
	Joint Use Space: 33,056 square feet
	Exhibit B1:	 	Engineering Drawing No. L-2106, Sheet 1 of 1, Dated 7/05

 

        County
and Company agree to the following terms and conditions related to the occupancy of the Joint Use Space: 

	1.
	The
term of this Space Use Letter No. 3 shall run on a month-to-month basis, unless canceled by either party, as provided under the terms and conditions
of the Permit.

	2.
	Company
agrees to indemnify Clark County regarding its use of the Joint Use Space in accordance with Section 14, Indemnification,
of the Permit.

	3.
	Company
understands that all responsibilities regarding maintenance of the Joint Use Space will be as described in the Permit.

	4.
	Company
agrees that it has viewed the space and by execution of this Space Use Letter No. 3 hereby accepts the Premises in "AS
IS" condition.

	5.
	All
material items, whether owned by Company or are in Company's custody and control, shall be removed from the Premises. Any material items left behind, or on behalf of Company shall
be considered abandoned and shall be disposed of accordingly at the sole cost of Company.

	6.
	Company
shall restore Premises to original condition, reasonable wear and tear excepted.

	7.
	The
Director of Aviation, or designee, has the authority to act on behalf of the Board of County Commissioners for all purposes of this Space Use Letter No. 3, including the
ability to terminate this Space Use Letter No. 3 as set forth herein. 

        The
new calculations for the total Joint Use Space total square footage is as follows, effective July 1, 2005:

Joint
Use Space: 298,284 square feet

    298,284 sq. ft. @ the current rate of $68.04 psfpy;

    $20,295,243.36 annually; $1,691,270.28 monthly

        Please
incorporate into Company's Permit the enclosed Exhibit Bl, Engineering Drawing Nos. L-1423, L-1424, L-1425, L-1426,
L-1450, L-1451, L-1452, L-1647, and L-2106, as referenced above. 

2

 

        A
space is provided below for your acknowledgment and acceptance of the contents of this Space Use Letter No. 3; however, use of the subject space and/or equipment will be
evidence of acceptance by Company. Please have the appropriate corporate signature affixed and return one (1) original to our office. The second original is provided for your records. 

	Sincerely,	 	Contents Acknowledged & Accepted:
	/s/ Randall H. Walker	 	ALLEGIANT AIR, LLC
	RANDALL H. WALKER	 	 	 	 
	Director of Aviation	 	 	 	 
	 	 	BY:	 	/s/ Andrew C. Levy
	 	 	 	 	

	 	 	PRINT:	 	Andrew C. Levy
	 	 	 	 	

	RHW:jo	 	TITLE:	 	Managing Director
	 	 	 	 	

	Attachment	 	DATE:	 	9/2/2005
	 	 	 	 	

	 	 	 	 	 	 	 	 	 
	cc:	 	Rosemary A. Vassiliadis	 	Alan Stewart	 	Phil Murray	 	Scott Kichline
	 	 	Barbara L. Bolton, AAE	 	Ralph LePore	 	Bill Klein	 	Harry Waters
	 	 	Cindy Casey-Donaldson	 	Jim Palmer	 	Scott Van Horn	 	Majed Khater
	 	 	Tony Roma	 	Susan Nash	 	Anita Koster	 	 
	 	 	Brian Manore, LAS Station Manger	 	 	 	 

3

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1423 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1424 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1425 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1426 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1450 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1451 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1452 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L1647 

EXHIBIT
"B1"

[LOCATION MAP]

Drawing No. L2106

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]