Document:

ex102notepsp

                                       PROMISSORY NOTE  THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE  SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT  BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION  STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE  SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR  SUCH LAWS.  Reference is made to that certain Payroll Support Program Agreement (“PSP Agreement”) dated as of the date hereof  by and among Allegiant Air, LLC, a Nevada limited liability company (“Issuer”), having an office at 1201 N. Town  Center Drive, Las Vegas, NV 89144 and the United States Department of the Treasury (“Treasury”), having an office  at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220, entered into by Issuer and Treasury pursuant to the  Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (Mar. 27, 2020) (“CARES Act”).  WHEREAS, Issuer has requested that Treasury provide financial assistance to the Issuer and certain of its Affiliates  (as defined below) that are Recipients (as defined in the PSP Agreement) that shall be used for the continuation of  payment of employee wages, salaries, and benefits as is permissible under Section 4112(a) of the CARES Act.  WHEREAS, as appropriate compensation to the Federal Government of the United States of America for the  provision of financial assistance under the PSP Agreement, Issuer has agreed to issue this Promissory Note (“Note”)  to Treasury on the terms and conditions set forth herein.  FOR VALUE RECEIVED, Issuer unconditionally promises to pay to the Holder (as defined below) the principal sum  of ZERO DOLLARS ($0), subject to increases and/or decreases made pursuant to Section 2.1, as permissible under  the PSP Agreement, or Section 2.3, in each case as noted by the Holder in Schedule I (the “Principal Amount”),  outstanding hereunder, together with all accrued interest thereon on the Maturity Date (as defined below) as provided  in this Note.  Notations made by the Holder in Schedule I shall be final and conclusive absent manifest error;  provided, however, that any failure by the Holder to make such notations or any error by omission by the Holder in  this regard shall not affect the obligation of the Issuer to pay the full amount of the principal of and interest on the  Note or any other amount owing hereunder.   1  DEFINITIONS  1.1 Defined Terms.  As used in this Note, capitalized terms have the meanings specified in Annex A.  1.2 Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms  defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and  neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase  “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”   The word “or” is not exclusive.  The word “year” shall refer (i) in the case of a leap year, to a year of three hundred  sixty-six (366) days, and (ii) otherwise, to a year of three hundred sixty-five (365) days.  Unless the context requires  otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed  as referring to such agreement, instrument or other document as from time to time amended, supplemented or  otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein),  (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the  words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Note in its  entirety and not to any particular provision hereof, (d) all references herein to Sections, Annexes and Schedules shall  be construed to refer to Sections of, and Annexes and Schedules to, this Note, (e) any reference to any law or  regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or  supplemented from time to time, and (f) the words “asset” and “property” shall be construed to have the same  meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,  accounts and contract rights.  1.3 Accounting Terms.  All accounting terms not otherwise defined herein shall be construed in conformity with  GAAP, as in effect from time to time.   2  NOTE  2.1 Principal Amount.  Upon any disbursement to the Issuer under the PSP Agreement after the Closing Date, the  Principal Amount of this Note shall be increased in an amount equal to 30% of any such disbursement; provided,                                              1  [AM_ACTIVE 402047542_6] 

 

    however, that no increases in the Principal Amount of this Note shall occur pursuant to this Section until the aggregate  principal amount of any disbursements to the Issuer under the PSP Agreement is greater than $100,000,000.   2.2 Maturity Date.  The aggregate unpaid principal amount of the Note, all accrued and unpaid interest, and all other  amounts payable under this Note shall be due and payable on the Maturity Date, unless otherwise provided in Section  5.1.    2.3 Prepayments.  (a) Optional Prepayments.  The Issuer may, upon written notice to the Holder, at any time and from time to time  prepay the Note in whole or in part without premium or penalty in a minimum aggregate principal amount equal to the  lesser of $5,000,000 and the Principal Amount outstanding.   (b) Mandatory Prepayments.  If a Change of Control occurs, within thirty (30) days following the occurrence of such  Change of Control, the Issuer shall prepay the aggregate principal amount outstanding under the Note and any accrued  interest or other amounts owing under the Note.  The Issuer will not, and will not permit any Subsidiary to, enter into  any Contractual Obligation (other than this Note) that, directly or indirectly, restricts the ability of the Issuer or any  Subsidiary to make such prepayment hereunder.   2.4 Interest.  (a) Interest Rate.  Subject to paragraph (b) of this Section, the Note shall bear interest on the Principal Amount  outstanding from time to time at a rate per annum equal to 1.00% until the fifth anniversary of the Closing Date, and  the Applicable SOFR Rate plus 2.00% thereafter until the Maturity Date.  All interest hereunder shall be computed on  the basis of the actual number of days in each interest period and a year of 365 or 366 days, as applicable, until the  fifth anniversary of the Closing Date and computed in a manner determined by the Holder thereafter, based on  prevailing customary market conventions for the use of the Applicable SOFR Rate in floating-rate debt instruments at  the time of the announcement of the Applicable SOFR Rate.  Each interest period will be from, and including, the  Closing Date, or from and including the most recent interest payment date to which interest has been paid or provided  for, to, but excluding the next interest payment date.  (b) Default Interest.  If any amount payable by the Issuer or any Guarantor under this Note (including principal of the  Note, interest, fees or other amount) is not paid when due, whether at stated maturity, upon acceleration or otherwise,  such amount shall thereafter bear interest at a rate per annum equal to the applicable Default Rate.  While any Event  of Default exists, the Issuer or any Guarantor shall pay interest on the principal amount of the Note outstanding  hereunder at a rate per annum equal to the applicable Default Rate.  (c) Payment Dates.  Accrued interest on the Note shall be payable in arrears on the last Business Day of March and  September of each year, beginning with September 30, 2020, and on the Maturity Date and at such other times as may  be specified herein; provided that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on  demand and (ii) in the event of any repayment or prepayment of the Note, accrued interest on the principal amount  repaid or prepaid shall be payable on the date of such repayment or prepayment.  (d) SOFR Fallback.  If, at any time, the Holder or its designee determines that a Benchmark Transition Event has  occurred with respect to the Applicable SOFR Rate or SOFR, or any successor rate, the Holder or its designee will  designate a Benchmark Replacement and, as applicable, make Benchmark Conforming Changes in a manner  consistent with the methodology set forth in the ARRC Fallback Provisions.  Any determination, decision or election  that may be made by the Holder or its designee pursuant to this Section (d), and any decision to take or refrain from  taking any action or making any determination, decision or election arising out of or relating to this Section (d), shall  be conclusive and binding absent manifest error, may be made by the Holder or its designee in its sole discretion, and,  notwithstanding anything to the contrary in this Note, shall become effective without the consent of the Issuer, any  Guarantor or any other party.  Any terms used in this Section (d) but not defined in this Note shall be construed in a  manner consistent with the ARRC Fallback Provisions.   2.5 Payments Generally.  (a) Payments by Issuer.  All payments to be made by the Issuer hereunder shall be made without condition or  deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, (i) for  so long as Treasury is the Holder of this Note, each payment under this Note shall be paid in immediately available  funds by electronic funds transfer to the account of the United States Treasury maintained at the Federal Reserve Bank  of New York specified by Treasury in a written notice to the Issuer, or to such other account as may be specified from                                             2  [AM_ACTIVE 402047542_6] 

 

    time to time by Treasury in a written notice to the Issuer, or (ii) in the event that Treasury is not the Holder of this  Note, then each payment under this Note shall be made in immediately available funds by electronic funds transfer to  such account as shall be specified by the Holder in a written notice to the Issuer, in each case not later than 12:00 noon  (Washington, D.C. time) on the date specified herein.  All amounts received by the Holder after such time on any date  shall be deemed to have been received on the next succeeding Business Day and any applicable interest or fees shall  continue to accrue.  If any payment to be made by the Issuer shall fall due on a day that is not a Business Day,  payment shall be made on the next succeeding Business Day and such extension of time shall be reflected in  computing interest or fees, as the case may be; provided that, if such next succeeding Business Day would fall after  the Maturity Date, payment shall be made on the immediately preceding Business Day.  Except as otherwise expressly  provided herein, all payments hereunder shall be made in Dollars.  (b) Application of Insufficient Payments.  If at any time insufficient funds are received by and available to the Holder  to pay fully all amounts of principal, interest, fees and other amounts then due hereunder, such funds shall be applied  (i) first, to pay interest, fees and other amounts then due hereunder, and (ii) second, to pay principal then due  hereunder.   3  REPRESENTATIONS AND WARRANTIES  The Issuer and each Guarantor represents and warrants to the Holder on the Closing Date and is deemed to represent  and warrant to the Holder on any date on which the amount of the Note is increased pursuant to the terms hereof and  in accordance with the PSP Agreement that:  3.1 Existence, Qualification and Power.  The Issuer, each Guarantor and each Subsidiary (a) is duly organized or  formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or  organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents  and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its  obligations under the Note, and (c) is duly qualified and is licensed and, as applicable, in good standing under the  Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires  such qualification or license, except, in each case referred to in clause (a) (other than with respect to the Issuer and  each Guarantor), (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material  Adverse Effect.  3.2 Authorization; No Contravention.  The execution, delivery and performance by the Issuer and each Guarantor of  the Note have been duly authorized by all necessary corporate or other organizational action, and do not and will not  (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of,  or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to  which the Issuer or any Guarantor is a party or affecting the Issuer or any Guarantor or the material properties of the  Issuer, any Guarantor or any Subsidiary or (ii) any material order, injunction, writ or decree of any Governmental  Authority or any arbitral award to which the Issuer, the Guarantor or any Subsidiary or its property is subject or  (c) violate any Law, except to the extent that such violation could not reasonably be expected to have a Material  Adverse Effect.  3.3 Governmental Authorization; Other Consents.  No approval, consent, exemption, authorization, or other action  by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection  with the execution, delivery or performance by, or enforcement against, the Issuer or any Guarantor of this Note,  except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken  or made and in full force and effect.  3.4 Execution and Delivery; Binding Effect.  This Note has been duly executed and delivered by the Issuer and each  Guarantor.  This Note constitutes a legal, valid and binding obligation of the Issuer and each Guarantor, enforceable  against the Issuer and each Guarantor in accordance with its terms, except as such enforceability may be limited by  bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors’ rights generally  and by general principles of equity.   4  COVENANTS  Until all Obligations shall have been paid in full or until any later date as provided for in this Note, the Issuer  covenants and agrees with the Holder that:  4.1 Notices.  The Issuer will promptly notify the Holder of the occurrence of any Default.                                              3  [AM_ACTIVE 402047542_6] 

 

    4.2 Guarantors.  The Guarantors listed on the signature page to this Note hereby Guarantee the Guaranteed  Obligations as set forth in Annex B.  If any Subsidiary (other than an Excluded Subsidiary) is formed or acquired after  the Closing Date or if any Subsidiary ceases to be an Excluded Subsidiary, then the Issuer will cause such Subsidiary  to become a Guarantor of this Note within 30 days of such Subsidiary being formed or acquired or of such Subsidiary  ceasing to be an Excluded Subsidiary pursuant to customary documentation reasonably acceptable to the Holder and  on the terms and conditions set forth in Annex B.  4.3 Pari Passu Ranking.  The Obligations of the Issuer and any Guaranteed Obligations of any Guarantor under this  Note shall be unsecured obligations of the Issuer and any Guarantor ranking pari passu with all existing and future  senior unsecured Indebtedness of the Issuer or any Guarantor that is not subordinated in right of payment to the holder  or lender of such Indebtedness.   5  EVENTS OF DEFAULT  5.1 Events of Default.  If any of the following events (each, an “Event of Default”) shall occur:  (a) the Issuer shall fail to pay any principal of the Note when and as the same shall become due and payable, whether  at the due date thereof or at a date fixed for prepayment thereof or otherwise;  (b) the Issuer shall fail to pay any interest on the Note, or any fee or any other amount (other than an amount referred  to in clause (a) of this Section) payable under this Note, when and as the same shall become due and payable, and  such failure shall continue unremedied for a period of two (2) or more Business Days;  (c) any representation or warranty made or deemed made by or on behalf of the Issuer or any Guarantor, including  those made prior to the Closing Date, in or in connection with this Note or any amendment or modification hereof, or  any waiver hereunder, or in the PSP Agreement, or in any report, certificate, financial statement or other document  furnished pursuant to or in connection with this Note, the PSP Agreement or the PSP Application or any amendment  or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any  material respect (or, in the case of any such representation or warranty under this Note already qualified by  materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made;  (d) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in Section 4.1;  (e) the Issuer or any Guarantor shall fail to observe or perform any covenant, condition or agreement contained in  this Note (other than those specified in clause (a), (b) or (d) of this Section) and such failure shall continue  unremedied for a period of 30 or more days after notice thereof by the Holder to the Issuer;  (f) (i) the Issuer or any Guarantor shall default in the performance of any obligation relating to any Indebtedness  (other than Indebtedness under the Note) having an aggregate principal amount equal to or greater than $5,000,000  (“Material Indebtedness”) and any applicable grace periods shall have expired and any applicable notice requirements  shall have been complied with, and as a result of such default the holder or holders of such Material Indebtedness or  any trustee or agent on behalf of such holder or holders shall have caused such Material Indebtedness to become due  prior to its scheduled final maturity date or (ii) the Issuer or any Guarantor shall default in the payment of the  outstanding principal amount due on the scheduled final maturity date of any Indebtedness outstanding under one or  more agreements of the Issuer or any Guarantor, any applicable grace periods shall have expired and any applicable  notice requirements shall have been complied with and such failure to make payment when due shall be continuing for  a period of more than five (5) consecutive Business Days following the applicable scheduled final maturity date or the  applicable grace period thereunder, in an aggregate principal amount at any single time unpaid exceeding $5,000,000;  (g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation,  reorganization or other relief in respect of the Issuer, any Guarantor or any Subsidiary or its debts, or of a substantial  part of its assets, under any Debtor Relief Law now or hereafter in effect or (ii) the appointment of a receiver, trustee,  custodian, sequestrator, conservator or similar official for the Issuer or any of its Subsidiaries or for a substantial part  of its assets, and, in any such case, such proceeding or petition shall continue undismissed for a period of 60 or more  days or an order or decree approving or ordering any of the foregoing shall be entered;  (h) the Issuer, any Guarantor or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition  seeking liquidation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (ii) consent  to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in  clause (g) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,  conservator or similar official for the Issuer, any Guarantor or any Subsidiary or for a substantial part of its assets,                                             4  [AM_ACTIVE 402047542_6] 

 

    (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding or (v) make a  general assignment for the benefit of creditors;  (i) the Issuer, any Guarantor or any Subsidiary shall become unable, admit in writing its inability or fail generally to  pay its debts as they become due;  (j) there is entered against the Issuer, any Guarantor or any Subsidiary (i) a final judgment or order for the payment  of money in an aggregate amount (as to all such judgments and orders) exceeding an amount equal to or greater than  $5,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of  such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment  or order that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse  Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order,  or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a  pending appeal or otherwise, is not in effect; or  (k) any material provision of the Note, at any time after its execution and delivery and for any reason other than as  expressly permitted hereunder or satisfaction in full of all Obligations, ceases to be in full force and effect; or the  Issuer, any Guarantor or any other Person contests in writing the validity or enforceability of any provision of the  Note; or the Issuer or any Guarantor denies in writing that it has any or further liability or obligation under the Note,  or purports in writing to revoke, terminate or rescind the Note;  then, and in every such event (other than an event with respect to the Issuer or any Guarantor described in clause (g)  or (h) of this Section), and at any time thereafter during the continuance of such event, the Holder may, by notice to  the Issuer, take any or all of the following actions, at the same or different times:  (i) declare any amounts then outstanding under the Note to be due and payable in whole (or in part, in which case  any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon  the principal of the Note so declared to be due and payable, together with accrued interest thereon and all fees and  other Obligations of the Issuer accrued hereunder, shall become due and payable immediately, without presentment,  demand, protest or other notice of any kind, all of which are hereby waived by the Issuer and any Guarantor; and  (ii) exercise on all rights and remedies available to it under the Note and Applicable Law;  provided that, in case of any event with respect to the Issuer or any Guarantor described in clause (g) or (h) of this  Section, the principal of the Note then outstanding, together with accrued interest thereon and all fees and other  Obligations accrued hereunder, shall automatically become due and payable, in each case without presentment,  demand, protest or other notice of any kind, all of which are hereby waived by the Issuer and any Guarantor.   6  MISCELLANEOUS  6.1 Notices.  (a) Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by  telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein  shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or  sent by email as follows:  (i) if to the Issuer or any Guarantor, to Allegiant Travel Company, 1201 N. Town Center Drive, Las Vegas, Nevada  89144, Attention of Gregory Anderson (Telephone No. 702-830-8520; Email: Gregory.anderson@allegiantair.com);   (ii) if to the Holder, to the Department of the Treasury at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220,  Attention of Assistant General Counsel (Banking and Finance) (Telephone No. 202-622-0283; Email:  eric.froman@treasury.gov); and   Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have  been given when received.  Notices delivered through electronic communications, to the extent provided in  paragraph (b) below, shall be effective as provided in said paragraph (b).  (b) Electronic Communications.  Notices and other communications to the Holder hereunder may be delivered or  furnished by electronic communication (including e-mail, FpML, and Internet or intranet websites) pursuant to  procedures approved by the Holder.  The Holder, the Issuer or any Guarantor may, in its discretion, agree to accept                                              5  [AM_ACTIVE 402047542_6] 

 

    notices and other communications to it hereunder by electronic communications pursuant to procedures approved by  it; provided that approval of such procedures may be limited to particular notices or communications.  Unless the Holder otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be  deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by return e- mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website  shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the  foregoing clause (i), of notification that such notice or communication is available and identifying the website address  therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent  during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at  the opening of business on the next Business Day.  6.2 Waivers; Amendments.  (a) No Waiver; Remedies Cumulative; Enforcement.  No failure or delay by the Holder in exercising any right,  remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any  such right, remedy, power or privilege, or any abandonment or discontinuance of steps to enforce such a right remedy,  power or privilege, preclude any other or further exercise thereof or the exercise of any other right remedy, power or  privilege.  The rights, remedies, powers and privileges of the Holder hereunder and under the Note are cumulative and  are not exclusive of any rights, remedies, powers or privileges that any such Person would otherwise have.    (b) Amendments, Etc.  Except as otherwise expressly set forth in this Note, no amendment or waiver of any provision  of this Note, and no consent to any departure by the Issuer therefrom, shall be effective unless in writing executed by  the Issuer and the Holder, and each such waiver or consent shall be effective only in the specific instance and for the  specific purpose for which given.  6.3 Expenses; Indemnity; Damage Waiver.  (a) Costs and Expenses.  The Issuer shall pay (i) all reasonable out-of-pocket expenses incurred by the Holder  (including the reasonable fees, charges and disbursements of any counsel for the Holder) in connection with the  preparation, negotiation, execution, delivery and administration of this Note and the PSP Agreement, any other  agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers  of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be  consummated), and (ii) all out-of-pocket expenses incurred by the Holder (including the fees, charges and  disbursements of any counsel for the Holder), in connection with the enforcement or protection of its rights in  connection with this Note and the PSP Agreement, any other agreements or documents executed in connection  herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or  not the transactions contemplated hereby or thereby shall be consummated), including all such out-of-pocket expenses  incurred during any workout, restructuring, negotiations or enforcement in respect of such Note, PSP Agreement and  other agreements or documents executed in connection herewith or therewith.  (b) Indemnification by the Issuer.  The Issuer shall indemnify the Holder and each of its Related Parties (each such  Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,  damages, liabilities, obligations, penalties, fines, settlements, judgments, disbursements and related costs and expenses  (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold  harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of  any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Issuer)  arising out of, in connection with, or as a result of (i) the execution or delivery of this Note or any agreement or  instrument contemplated hereby, the performance by the Issuer or any Guarantor of its obligations hereunder or the  consummation of the transactions contemplated hereby, (ii) the Note or the use or proposed use of the proceeds  therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the  foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Issuer or any  Guarantor, and regardless of whether any Indemnitee is a party thereto.  (c) Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable Law, the Issuer and any  Guarantor shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special,  indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection  with, or as a result of, this Note or any agreement or instrument contemplated hereby, the transactions contemplated  hereby, or the use of the proceeds thereof.  No Indemnitee referred to in paragraph (b) above shall be liable for any  damages arising from the use by unintended recipients of any information or other materials distributed by it through                                              6  [AM_ACTIVE 402047542_6] 

 

    telecommunications, electronic or other information transmission systems in connection with this Note or the  transactions contemplated hereby.  (d) Payments.  All amounts due under this Section shall be payable not later than five  (5) days after demand therefor.  (e) Survival.  Each party’s obligations under this Section shall survive the termination of the Note and payment of the  obligations hereunder.  6.4 Successors and Assigns.  Neither the Issuer nor any Guarantor may assign or transfer this Note or any of its rights  or obligations hereunder and any purported assignment or transfer in violation of this Note shall be void.  Holder may  assign or participate a portion or all of its rights under this Note at any time in compliance with all Applicable Laws.   This Note shall inure to the benefit of and be binding upon Issuer, any Guarantor and Holder and their permitted  successors and assigns.  Any Holder that assigns, or sells participations in, any portion of the Note will take such  actions as are necessary for the Note and such portion to be in “registered form” (within the meaning of Treasury  Regulations Section 5f.103-1).  6.5 Counterparts; Integration; Effectiveness.  This Note and any amendments, waivers, consents or supplements  hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall  constitute a single contract. This Note constitutes the entire contract between Issuer, any Guarantor and the Holder  with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written,  with respect thereto.  Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a  signature page of this Note by electronic means shall be effective as delivery of a manually executed counterpart of  this Note.  6.6 Severability.  If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such  invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render  unenforceable such term or provision in any other jurisdiction.    6.7 Right of Setoff.  If an Event of Default shall have occurred and be continuing, the Holder is hereby authorized at  any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all  deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other  obligations (in whatever currency) at any time owing, by the Holder, to or for the credit or the account of the Issuer  against any and all of the due and unpaid Obligations of the Issuer now or hereafter existing under this Note to the  Holder, irrespective of whether or not the Holder shall have made any demand under this Note.  The rights of the  Holder under this Section are in addition to other rights and remedies (including other rights of setoff) that the Holder  may have.  The Holder agrees to notify the Issuer promptly after any such setoff and application; provided that the  failure to give such notice shall not affect the validity of such setoff and application.  6.8 Governing Law; Jurisdiction; Etc.  This Note will be governed by and construed in accordance with the federal  law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the  State of New York applicable to contracts made and to be performed entirely within such State.  Each of the Issuer,  any Guarantor and the Holder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District  Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Note or the  transactions contemplated hereby, and (b) that notice may be served upon the Issuer, any Guarantor or the Holder at  the applicable address in Section 6.1 hereof (or upon any Holder that is not Treasury at an address provided by such  Holder to Issuer in writing).  To the extent permitted by Applicable Law, each of the Issuer, any Guarantor and the  Holder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Note or the  transactions contemplated hereby.  6.9 Headings.  Section headings used herein are for convenience of reference only, are not part of this Note and shall  not affect the construction of, or be taken into consideration in interpreting, this Note.                                              7  [AM_ACTIVE 402047542_6] 

 

 

                                            ANNEX A                                        DEFINITIONS  “Affiliate” means any Person that directly or indirectly Controls, is Controlled by, or is under common Control with,  the Issuer.  “Applicable Law” means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is  subject.  “Applicable SOFR Rate” means a rate of interest based on SOFR that shall be determined by the Holder and publicly  announced by the Holder on or prior to the fifth anniversary of the Closing Date and shall, to the extent reasonably  practicable, be based on customary market conventions as in effect at the time of such announcement.  In no event  will the Applicable SOFR Rate be less than 0.00% per annum.  “ARRC Fallback Provisions” means the Fallback Language for New Issuances of LIBOR Floating Rate Notes set  forth in the ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR  Floating Rate Notes, dated April 25, 2019.   “ASU” means the Accounting Standards Update 2016-02, Leases (Topic 842) by the Financial Accounting Standards  Board issued on February 25, 2016.    “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act,  except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3)  of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person”  has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is  exercisable only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned” have a  corresponding meaning.     “Business Day” means any on which Treasury and the Federal Reserve Bank of New York are both open for business.  “Capitalized Lease Obligations” means, at the time any determination thereof is to be made, the amount of the liability  in respect of a Capitalized Lease that would at such time be required to be capitalized and reflected as a liability on a  balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP; provided that all leases of such  Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU  shall  continue to  be  accounted  for  as operating  leases  for  purposes of  all  financial  definitions  and  calculations  for  purposes of this Note (whether or not such operating lease obligations were in effect on such date) notwithstanding the  fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise)  to be treated as capitalized lease obligations for other purposes.   “Capitalized Leases” means all leases that have been or should be, in accordance with GAAP as in effect on the Closing  Date, recorded as capitalized leases; provided that for all purposes hereunder the amount of obligations under any  Capitalized Lease shall be the amount thereof accounted for as a liability in accordance with GAAP; provided, further,  that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the  issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and  calculations for purposes of this Note (whether or not such operating lease obligations were in effect on such date)  notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive  basis or otherwise) to be treated as capitalized lease obligations for other purposes.   “CARES Act” has the meaning specified in the preamble to this Note.  “Change of Control” means the occurrence of any of the following: (a) the sale, lease, transfer, conveyance or other  disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or  substantially all of the properties or assets of the Issuer and its Subsidiaries, or if the Issuer is a Subsidiary of any  Guarantor, such Guarantor (the “Parent Guarantor”) and its Subsidiaries, taken as a whole to any Person (including  any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)); or (b) the consummation of any  transaction (including, without limitation, any merger or consolidation), the result of which is that any Person  (including any “person” (as defined above)) becomes the Beneficial Owner, directly or indirectly, of more than 50%  of the Voting Stock of the Issuer or Parent Guarantor, as applicable, (measured by voting power rather than number of  shares), other than (i) any such transaction where the Voting Stock of the Issuer or Parent Guarantor, as applicable,                                          Annex A-1  [AM_ACTIVE 402047542_6] 

 

    (measured by voting power rather than number of shares) outstanding immediately prior to such transaction  constitutes or is converted into or exchanged for at least a majority of the outstanding shares of the Voting Stock of  such Beneficial Owner (measured by voting power rather than number of shares), or (ii) any merger or consolidation  of the Issuer or Parent Guarantor, as applicable, with or into any Person (including any “person” (as defined above))  which owns or operates (directly or indirectly through a contractual arrangement) a Permitted Business (a “Permitted  Person”) or a Subsidiary of a Permitted Person, in each case, if immediately after such transaction no Person  (including any “person” (as defined above)) is the Beneficial Owner, directly or indirectly, of more than 50% of the  total Voting Stock of such Permitted Person (measured by voting power rather than number of shares).   “Closing Date” means the date set forth on the Issuer’s and each Guarantor’s signature page to this Note.  “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any  agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is  bound.  “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management  or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling”  and “Controlled” have meanings analogous thereto.  “Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation,  conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership,  insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from  time to time in effect.  “Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the  passage of time, or both, would be an Event of Default.  “Default Rate” means an interest rate (before as well as after judgment) equal to the interest rate on the Note  plus 2.00% per annum.  “Disqualified Equity Interest” means any equity interest that, by its terms (or the terms of any security or other equity  interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition  (a) matures or is mandatorily redeemable (other than solely for equity interests that are not Disqualified Equity  Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of Control or asset sale so  long as any rights of the holders thereof upon the occurrence of a change of Control or asset sale event shall be subject  to the prior repayment in full of the Note and all other Obligations that are accrued and payable), (b) is redeemable at  the option of the holder thereof, in whole or in part, (c) provides for scheduled payments of dividends in cash, or (d) is  or becomes convertible into or exchangeable for Indebtedness or any other equity interests that would constitute  Disqualified Equity Interests, in each case, prior to the date that is ninety-one days after the Maturity Date; provided  that if such equity interests are issued pursuant to a plan for the benefit of employees of the Issuer or any Subsidiary or  by any such plan to such employees, such equity interests shall not constitute Disqualified Equity Interests solely  because they may be required to be repurchased by the Issuer or its Subsidiaries in order to satisfy applicable statutory  or regulatory obligations or as a result of such employee’s termination, death or disability.   “Dollar” and “$” mean lawful money of the United States.  “Event of Default” has the meaning specified in Section 5.   “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.     “Excluded Subsidiary” means any Subsidiary of the Issuer that is not an obligor in respect of any Material  Indebtedness that is unsecured of the Issuer or any of its Subsidiaries, unless such Subsidiary is required to be an  obligor under any agreement, instrument or other document relating to any Material Indebtedness that is unsecured of  the Issuer or any of its Subsidiaries.  “GAAP” means United States generally accepted accounting principles as in effect as of the date of determination  thereof.  Notwithstanding any other provision contained herein, (a) all terms of an accounting or financial nature used  herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving  effect to any election under FASB Accounting Standards Codification 825-Financial Instruments, or any successor  thereto (including pursuant to the FASB Accounting Standards Codification), to value any Indebtedness of any                                           Annex A-2  [AM_ACTIVE 402047542_6] 

 

    subsidiary at “fair value,” as defined therein and (b) the amount of any Indebtedness under GAAP with respect to  Capitalized Lease Obligations shall be determined in accordance with the definition of Capitalized Lease Obligations.  “Governmental Authority” means the government of the United States of America or any other nation, or of any  political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court,  central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or  functions of or pertaining to government (including any supra-national bodies such as the European Union or the  European Central Bank).  “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or  having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another  Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such  Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such  Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring  the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or  other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity  or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or  other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such  Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in  respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Indebtedness or other  obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or  any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the term  “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business.  The amount  of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary  obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the  maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.   The term “Guarantee” as a verb has a corresponding meaning.   “Guaranteed Obligations” has the meaning specified in Annex B.  “Guarantor” means each Guarantor listed on the signature page to this Note and any other Person that Guarantees this  Note.   “Holder” means the United States Department of the Treasury or its designees or any other Person that shall have  rights pursuant to an assignment hereunder.  “Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not  included as indebtedness or liabilities in accordance with GAAP: (a) all obligations of such Person for borrowed  money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar  instruments; (b) all direct or contingent obligations of such Person arising under (i) letters of credit (including standby  and commercial), bankers’ acceptances and bank guaranties and (ii) surety bonds, performance bonds and similar  instruments issued or created by or for the account of such Person; (c) net obligations of such Person under any swap  contract; (d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade  accounts payable in the ordinary course of business); (e) indebtedness (excluding prepaid interest thereon) secured by  a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales  or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is  limited in recourse; (f) attributable indebtedness in respect of any Capitalized Lease Obligation and any synthetic  lease obligation of any Person; (g) all obligations of such Person in respect of Disqualified Equity Interests; and (h) all  Guarantees of such Person in respect of any of the foregoing.  For all purposes hereof, the Indebtedness of any Person  shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation  or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is  expressly made non-recourse to such Person.  The amount of any net obligation under any swap contract on any date  shall be deemed to be the swap termination value thereof as of such date.  The amount of any Indebtedness of any  Person for purposes of clause (e) that is expressly made non-recourse or limited-recourse (limited solely to the assets  securing such Indebtedness) to such Person shall be deemed to be equal to the lesser of (i) the aggregate principal  amount of such Indebtedness and (ii) the fair market value of the property encumbered thereby as determined by such  Person in good faith.  “Indemnitee” has the meaning specified in Section 6.3(b).                                           Annex A-3  [AM_ACTIVE 402047542_6] 

 

    “Issuer” has the meaning specified in the preamble to this Note.  “Laws” means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines,  regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or  administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration  thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and  agreements with, any Governmental Authority, in each case whether or not having the force of law.  “Lien” means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien  (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or  nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or  other encumbrance on title to real property, and any financing lease having substantially the same economic effect as  any of the foregoing).  “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on, the operations,  business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Parent  Guarantor and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Issuer or any  Guarantor to perform its Obligations, (ii) the legality, validity, binding effect or enforceability against the Issuer or  any Guarantors of the Note or (iii) the rights, remedies and benefits available to, or conferred upon, the Holder under  the Note.  “Material Indebtedness” has the meaning specified in Section 5.1(f).  “Maturity Date” means the date that is ten years after the Closing Date (except that, if such date is not a Business Day,  the Maturity Date shall be the next preceding Business Day).  “Note” has the meaning specified in the preamble to this Note.  “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, the Issuer arising  under or otherwise with respect to the Note, whether direct or indirect (including those acquired by assumption),  absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that  accrue after the commencement by or against the Issuer or any Affiliate thereof of any proceeding under any Debtor  Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are  allowed claims in such proceeding.  Without limiting the foregoing, the Obligations include (a) the obligation to pay  principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Issuer under the Note and  (b) the obligation of the Issuer to reimburse any amount in respect of any of the foregoing that the Holder, in each case  in its sole discretion, may elect to pay or advance on behalf of the Issuer.  “Obligee Guarantor” has the meaning specified in Annex B.  “Organizational Documents” means (a) as to any corporation, the charter or certificate or articles of incorporation and  the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) as to  any limited liability company, the certificate or articles of formation or organization and operating or limited liability  agreement and (c) as to any partnership, joint venture, trust or other form of business entity, the partnership, joint  venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice  with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority  in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or  organization of such entity.   “Permitted Business” means any business that is the same as, or reasonably related, ancillary, supportive or  complementary to, the business in which the Issuer and its Subsidiaries are engaged on the date of this Note.    “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,  partnership, Governmental Authority or other entity.  “Principal Amount” has the meaning specified in the preamble to this Note.  “PSP Agreement” has the meaning specified in the preamble to this Note.  “PSP Application” means the application form and any related materials submitted by the Allegiant Travel Company  to Treasury in connection with an application for financial assistance under Division A, Title IV, Subtitle B of the  CARES Act.                                          Annex A-4  [AM_ACTIVE 402047542_6] 

 

    “Related Parties” means, with respect to any Person, such Person’s Affiliates and the agents, advisors and  representatives of such Person and of such Person’s Affiliates.  “SOFR” means the secured overnight financing rate published by the Federal Reserve Bank of New York, as  administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York’s (or such  successor’s) website.  “Subsidiary” of a Person means a corporation, partnership, limited liability company, association or joint venture or  other business entity of which a majority of the equity interests having ordinary voting power for the election of  directors or other governing body (other than securities or interests having such power only by reason of the  happening of a contingency) are at the time owned or the management of which is Controlled, directly, or indirectly  through one or more intermediaries, by such Person.  Unless otherwise specified, all references herein to a  “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Issuer.  “Treasury” has the meaning specified in the preamble to this Note.  “United States” and “U.S.” mean the United States of America.    “Voting Stock” of any specified Person as of any date means the equity interests of such Person that is at the time  entitled to vote in the election of the board of directors of such Person.                                             Annex A-5  [AM_ACTIVE 402047542_6] 

 

                                            ANNEX B                                        GUARANTEE  1.     Guarantee of the Obligations.  Each Guarantor jointly and severally hereby irrevocably and unconditionally  guarantees to the Holder, the due and punctual payment in full of all Obligations (or such lesser amount as agreed by  the Holder in its sole discretion) when the same shall become due, whether at stated maturity, by required prepayment,  declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the  automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed  Obligations”).   2.     Payment by a Guarantor.  Each Guarantor hereby jointly and severally agrees, in furtherance of the foregoing  and not in limitation of any other right which the Holder may have at law or in equity against any Guarantor by virtue  hereof, that upon the failure of the Issuer to pay any of the Guaranteed Obligations when and as the same shall  become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise  (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the  Bankruptcy Code, 11 U.S.C. § 362(a)), such Guarantor will upon demand pay, or cause to be paid, in cash, to the  Holder an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as  aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for the Issuer’s  becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations,  whether or not a claim is allowed against the Issuer for such interest in the related bankruptcy case) and all other  Guaranteed Obligations then owed to the Holder as aforesaid.   3.     Liability of Guarantors Absolute.  Each Guarantor agrees that its obligations hereunder are irrevocable,  absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or  equitable discharge of a guarantor or surety other than payment in full of the Guaranteed Obligations.  In furtherance  of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:   (a) this Guarantee is a guarantee of payment when due and not of collectability;   (b) the Holder may enforce this Guarantee upon the occurrence of an Event of Default notwithstanding the existence  of any dispute between the Issuer and the Holder with respect to the existence of such Event of Default;   (c) a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is  brought against the Issuer or any other Guarantors and whether or not Issuer or such Guarantors are joined in any such  action or actions;   (d) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect,  modify or abridge any other Guarantor’s liability for any portion of the Guaranteed Obligations which has not been  paid;     (e) the Holder, upon such terms as it deems appropriate, without notice or demand and without affecting the validity  or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any  Guarantor’s liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or  otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise,  release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed  Obligations or subordinate the payment of the same to the payment of any other obligations; (iii) release, surrender,  exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration,  any security for payment of the Guaranteed Obligations, any other guarantees of the Guaranteed Obligations, or any  other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations; and  (iv) enforce its rights and remedies even though such action may operate to impair or extinguish any right of  reimbursement or subrogation or other right or remedy of any Guarantor against the Issuer or any security for the  Guaranteed Obligations; and   (f) this Guarantee and the obligations of each Guarantor hereunder shall be valid and enforceable and shall not be  subject to any reduction, limitation, impairment, discharge or termination for any reason (other than payment in full of  the Guaranteed Obligations), including the occurrence of any of the following:  (i) any failure, delay or omission to  assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by  operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy                                          Annex B-1  [AM_ACTIVE 402047542_6] 

 

    with respect to the Guaranteed Obligations, or with respect to any security for the payment of the Guaranteed  Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the  terms or provisions hereof; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time being  found to be illegal, invalid or unenforceable in any respect; (iv) the Holder’s consent to the change, reorganization or  termination of the corporate structure or existence of the Issuer or any of its Subsidiaries and to any corresponding  restructuring of the Guaranteed Obligations; (v) any defenses, set-offs or counterclaims which the Issuer or any  Guarantor may allege or assert against the Holder in respect of the Guaranteed Obligations, including failure of  consideration, lack of authority, validity or enforceability, breach of warranty, payment, statute of frauds, statute of  limitations, accord and satisfaction and usury; and (vi) any other event or circumstance that  might in any manner vary  the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.   4.     Waivers by Guarantors.  Each Guarantor hereby waives, for the benefit of the Holder:  (a) any right to require  the Holder, as a condition of payment or performance by such Guarantor, to (i) proceed against Issuer, any Guarantor  or any other Person; (ii) proceed against or exhaust any security in favor of the Holder; or (iii)  pursue any other  remedy in the power of the Holder whatsoever or (b) presentment to, demand for payment from and protest to the  Issuer or any Guarantor or notice of acceptance; and (c) any defenses or benefits that may be derived from or afforded  by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.   5.     Guarantors’ Rights of Subrogation, Contribution, etc.  Until the Guaranteed Obligations shall have been paid  in full, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or  may hereafter have against the Issuer or any other Guarantor or any of its assets in connection with this Guarantee or  the performance by such Guarantor of its obligations hereunder, including without limitation (a) any right of  subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Issuer  with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy  that the Holder now has or may hereafter have against the Issuer, and (c) any benefit of, and any right to participate in,  any collateral or security now or hereafter held by the Holder.  In addition, until the Guaranteed Obligations shall have  been paid in full, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against  any other guarantor (including any other Guarantor) of the Guaranteed Obligations.  If any amount shall be paid to  any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time  when all Guaranteed Obligations shall not have been finally and paid in full, such amount shall be held in trust for the  Holder and shall forthwith be paid over to the Holder to be credited and applied against the Guaranteed Obligations,  whether matured or unmatured, in accordance with the terms hereof.   6.     Subordination.  Any Indebtedness of the Issuer or any Guarantor now or hereafter held by any Guarantor (the  “Obligee Guarantor”) is hereby subordinated in right of payment to the Guaranteed Obligations, and any such  indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing  shall be held in trust for the Holder and shall forthwith be paid over to the Holder to be credited and applied against  the Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee  Guarantor under any other provision hereof.   7.     Continuing Guarantee.  This Guarantee is a continuing guarantee and shall remain in effect until all of the  Guaranteed Obligations shall have been paid in full.  Each Guarantor hereby irrevocably waives any right to revoke  this Guarantee as to future transactions giving rise to any Guaranteed Obligations.   8.     Financial Condition of the Issuer.  The Note may be issued to the Issuer without notice to or authorization  from any Guarantor regardless of the financial or other condition of the Issuer at the time of such grant.  Each  Guarantor has adequate means to obtain information from the Issuer on a continuing basis concerning the financial  condition of the Issuer and its ability to perform its obligations under the Note, and each Guarantor assumes the  responsibility for being and keeping informed of the financial condition of the Issuer and of all circumstances bearing  upon the risk of nonpayment of the Guaranteed Obligations.   9.     Reinstatement.  In the event that all or any portion of the Guaranteed Obligations are paid by the Issuer or  any Guarantor, the obligations of any other Guarantor hereunder shall continue and remain in full force and effect or  be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or recovered  directly or indirectly from the Holder as a preference, fraudulent transfer or otherwise, and any such payments which  are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.                                            Annex B-2  [AM_ACTIVE 402047542_6] 

 

    10.    Discharge of Guarantee Upon Sale of the Guarantor.  If, in compliance with the terms and provisions of the  Note, all of the capital stock of any Guarantor that is a Subsidiary of the Issuer or any of its successors in interest  hereunder shall be sold or otherwise disposed of (including by merger or consolidation) to any Person (other than to  the Issuer or to any other Guarantor), the Guarantee of such Guarantor or such successor in interest, as the case may  be, hereunder shall automatically be discharged and released without any further action by any beneficiary or any  other Person effective as of the time of such asset sale.                                                                                             Annex B-3  [AM_ACTIVE 402047542_6] 

 

                                        SCHEDULE I   Date             Current Outstanding Increase or Decrease Resulting   Notation Made By                    Principal Amount  in Outstanding    Outstanding                                      Principal Amount  Principal Amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Schedule I  [AM_ACTIVE 402047542_6]ex103warrantagrpsp

                                                    WARRANT AGREEMENT                                                                              [AM_ACTIVE 402047551_7] 

 

                              TABLE OF CONTENTS                                                                            Page                                      Article I                                     Closing  1.1   Issuance .............................................................................................................................. 1  1.2   Initial Closing; Warrant Closing Date. .............................................................................. 1  1.3  Interpretation ...................................................................................................................... 2                                     Article II                            Representations and Warranties  2.1   Representations and Warranties of the Company .............................................................. 3                                    Article III                                    Covenants  3.1   Commercially Reasonable Efforts ..................................................................................... 6  3.2   Expenses ............................................................................................................................ 7  3.3   Sufficiency of Authorized Common Stock; Exchange Listing .......................................... 8                                    Article IV                               Additional Agreements  4.1   Investment .......................................................................................................................... 8  4.2   Legends .............................................................................................................................. 8  4.3   Certain Transactions .......................................................................................................... 9  4.4   Transfer of Warrants and Warrant Shares. ........................................................................ 9  4.5   Registration Rights............................................................................................................. 9  4.6   Voting of Warrant Shares ................................................................................................ 21                                     Article V                                   Miscellaneous  5.1   Survival of Representations and Warranties .................................................................... 21  5.2   Amendment ...................................................................................................................... 21  5.3   Waiver of Conditions ....................................................................................................... 21  5.4   Governing Law: Submission to Jurisdiction, Etc. ...................................................... 21  5.5   Notices ............................................................................................................................. 21  5.6   Definitions........................................................................................................................ 22  5.7   Assignment ...................................................................................................................... 22  5.8   Severability ...................................................................................................................... 22                                         -i-     [AM_ACTIVE 402047551_7] 

 

  5.9   No Third Party Beneficiaries ........................................................................................... 23                                         -ii-     [AM_ACTIVE 402047551_7] 

 

                                 LIST OF ANNEXES   ANNEX A:          FORM OF OPINION   ANNEX B:          FORM OF WARRANT   SCHEDULE 1:       WARRANT SHARES FORMULA   SCHEDULE 2:      CAPITALIZATION   SCHEDULE 3:      REQUIRED STOCKHOLDER APPROVALS                                             -iii-    [AM_ACTIVE 402047551_7] 

 

   INDEX OF DEFINED TERMS                                                                Location of  Term                                                         Definition  Affiliate                                                    Annex B  Agreement                                                    Recitals   Appraisal Procedure                                          Annex B  Board of Directors                                           2.1(i)  Business Combination                                         Annex B   Business Day                                                 Annex B   Capitalization Date                                          2.1(b)  Closing                                                      1.2(a)  Common Stock                                                 Annex B   Company                                                      Recitals   Company Reports                                              2.1(j)(i)  Exchange Act                                                 Annex B  Governmental Authority                                       5.6(a)  Holder                                                       4.5(k)(i)  Indemnitee                                                   4.5(g)(i)  Initial Closing                                              1.2(a)  Lien                                                         5.6(c)  Material Adverse Effect                                      5.6(d)  Organizational Documents                                     5.6(e)  Pending Underwritten Offering                                4.5(l)  Piggyback Registration                                       4.5(a)(iv)  Promissory Note                                              Recitals  register; registered; registration                           4.5(k)(ii)  Registrable Securities                                       4.5(k)(iii)  Registration Commencement Date                               4.5(a)(i)  Registration Expenses                                        4.5(k)(iv)  Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415           4.5(k)(v)  SEC                                                          2.1(c)  Securities Act                                               Annex B  Selling Expenses                                             4.5(k)(vi)  Shelf Registration Statement                                 4.5(a)(ii)  Special Registration                                         4.5(i)  Stockholder Proposals                                        3.1(b)   Subsidiary                                                   5.6(f)  Transfer                                                     4.4   Treasury                                                     Recitals  Warrant Closing Date                                         1.2(a)  Warrants                                                     Recitals   Warrant Shares                                               Annex B                                             -iv-     [AM_ACTIVE 402047551_7] 

 

           WARRANT AGREEMENT dated as of April 20, 2020 (this “Agreement”), between   Allegiant Travel Company, a corporation organized under the laws of Nevada (the “Company”)   and the UNITED STATES DEPARTMENT OF THE TREASURY (“Treasury”).          WHEREAS, the Company has requested that Treasury provide financial assistance to the   Recipient (as defined in the PSP Agreement) that shall exclusively be used for the continuation   of payment of employee wages, salaries, and benefits as is permissible under Section 4112(a) of   Title IV of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (Mar. 27,   2020), as the same may be amended form time to time (the “CARES Act”), and Treasury is   willing to do so on the terms and conditions set forth in the Payroll Support Program Agreement   dated as of April 20, 2020, between Allegiant Air, LLC and Treasury (the “PSP Agreement”);   and          WHEREAS, as appropriate compensation to the Federal Government of the United States   of America for the provision of financial assistance under the PSP Agreement, Allegiant Air,   LLC has agreed to issue a note to be repaid to Treasury on the terms and conditions set forth in   the promissory note dated as of April 20, 2020, issued by Allegiant Air, LLC, in the name of   Treasury as the holder (the “Promissory Note”) and agreed to issue in a private placement   warrants to purchase the number of shares of its Common Stock determined in accordance with   Schedule 1 to this Agreement (the “Warrants”) to Treasury;          NOW, THEREFORE, in consideration of the premises, and of the representations,  warranties, covenants and agreements set forth herein, the parties agree as follows:                                       Article I                                      Closing          1.1   Issuance.           (a)   On the terms and subject to the conditions set forth in this Agreement, the  Company agrees to issue to Treasury, on each Warrant Closing Date, Warrants for a number of  shares of Common Stock determined by the formula set forth in Schedule 1.          1.2   Initial Closing; Warrant Closing Date.          (a)   On the terms and subject to the conditions set forth in this Agreement, the closing  of the initial issuance of the Warrants (the “Initial Closing”) will take place on the Closing Date   (as defined in the Promissory Note) or, if on the Closing Date the principal amount of the   Promissory Note is $0, the first date on which such principal amount is increased. A subsequent   closing will take place on the date of each increase, if any, of the principal amount of the   Promissory Note (each subsequent closing, together with the Initial Closing, a “Closing” and   each such date a “Warrant Closing Date”).          (b)   On each Warrant Closing Date, the Company will issue to Treasury a duly  executed Warrant or Warrants for a number of shares of Common Stock determined by the  formula set forth in Schedule 1, as evidenced by one or more certificates dated the Warrant   Closing Date and bearing appropriate legends as hereinafter provided for and in substantially the   form attached hereto as Annex B.     [AM_ACTIVE 402047551_7] 

 

         (c)   On each Warrant Closing Date, the Company shall deliver to Treasury (i) a  written opinion from counsel to the Company (which may be internal counsel) addressed to  Treasury and dated as of such Warrant Closing Date, in substantially the form attached hereto as  Annex A and (ii) a certificate executed by the chief executive officer, president, executive vice  president, chief financial officer, principal accounting officer, treasurer or controller confirming  that the representations and warranties of the Company in this Agreement are true and correct  with the same force and effect as though expressly made at and as of such Warrant Closing Date  and the Company has complied with all agreements on its part to be performed or satisfied  hereunder at or prior to such Closing.         (d)   On the initial Warrant Closing Date, the Company shall deliver to Treasury (i)  such customary certificates of resolutions or other action, incumbency certificates and/or other  certificates of the chief executive officer, president, executive vice president, chief financial  officer, principal accounting officer, treasurer or controller as Treasury may require evidencing  the identity, authority and capacity of each such officer thereof authorized to act as such officer  in connection with this Agreement and (ii) customary resolutions or evidence of corporate  authorization, secretary's certificates and such other documents and certificates (including  Organizational Documents and good standing certificates) as Treasury may reasonably request  relating to the organization, existence and good standing of the Company and any other legal  matters relating to the Company, this Agreement, the Warrants or the transactions contemplated  hereby or thereby.         1.3   Interpretation.          (a)   When a reference is made in this Agreement to “Recitals,” “Articles,” “Sections,”  or “Annexes” such reference shall be to a Recital, Article or Section of, or Annex to, this  Warrant Agreement, unless otherwise indicated. The terms defined in the singular have a  comparable meaning when used in the plural, and vice versa. References to “herein”, “hereof”,  “hereunder” and the like refer to this Agreement as a whole and not to any particular section or  provision, unless the context requires otherwise. The table of contents and headings contained in  this Agreement are for reference purposes only and are not part of this Agreement. Whenever the  words “include,” “includes” or “including” are used in this Agreement, they shall be deemed  followed by the words “without limitation.” No rule of construction against the draftsperson shall  be applied in connection with the interpretation or enforcement of this Agreement, as this  Agreement is the product of negotiation between sophisticated parties advised by counsel. All  references to “$” or “dollars” mean the lawful currency of the United States of America. Except  as expressly stated in this Agreement, all references to any statute, rule or regulation are to the  statute, rule or regulation as amended, modified, supplemented or replaced from time to time  (and, in the case of statutes, include any rules and regulations promulgated under the statute) and  to any section of any statute, rule or regulation include any successor to the section.          (b)   Capitalized terms not defined herein have the meanings ascribed thereto in Annex  B.                                         - 2 -  [AM_ACTIVE 402047551_7] 

 

                                      Article II                           Representations and Warranties         2.1   Representations and Warranties of the Company. The Company represents and  warrants to Treasury that as of the date hereof and each Warrant Closing Date (or such other date  specified herein):         (a)   Existence, Qualification and Power.  The Company is duly organized or formed,  validly existing and, if applicable, in good standing under the Laws of the jurisdiction of its  incorporation or organization, and the Company and each Subsidiary (a) has all requisite power  and authority and all requisite governmental licenses, authorizations, consents and approvals to  (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its  obligations under the this Agreement and the Warrants, and (b) is duly qualified and is licensed  and, as applicable, in good standing under the Laws of each jurisdiction where its ownership,  lease or operation of properties or the conduct of its business requires such qualification or  license, except, in each case referred to in clause (a)(i) or (b), to the extent that failure to do so  could not reasonably be expected to have a Material Adverse Effect.         (b)   Capitalization. The authorized capital stock of the Company, and the outstanding  capital stock of the Company (including securities convertible into, or exercisable or  exchangeable for, capital stock of the Company) as of the most recent fiscal month-end  preceding the date hereof (the “Capitalization Date”) is set forth in Schedule 2. The outstanding  shares of capital stock of the Company have been duly authorized and are validly issued and  outstanding, fully paid and nonassessable, and subject to no preemptive rights (and were not  issued in violation of any preemptive rights). Except as provided in the Warrants, as of the date  hereof, the Company does not have outstanding any securities or other obligations providing the  holder the right to acquire Common Stock that is not reserved for issuance as specified on  Schedule 2, and the Company has not made any other commitment to authorize, issue or sell any  Common Stock. Since the Capitalization Date, the Company has not issued any shares of  Common Stock, other than (i) shares issued upon the exercise of stock options or delivered under  other equity-based awards or other convertible securities or warrants which were issued and  outstanding on the Capitalization Date and disclosed on Schedule 2 and (ii) shares disclosed on  Schedule 2 as it may be updated by written notice from the Company to Treasury in connection  with each Warrant Closing Date.          (c)   Listing. The Common Stock has been registered pursuant to Section 12(b) of the  Exchange Act and the shares of the Common Stock outstanding on the date hereof are listed on a  national securities exchange. The Company has taken no action designed to, or likely to have the  effect of, terminating the registration of the Common Stock under the Exchange Act or the listing  of the Common Stock on such national securities exchange, nor has the Company received any  notification that the Securities and Exchange Commission (the “SEC”) or such exchange is  contemplating terminating such registration or listing. The Company is in compliance with  applicable continued listing requirements of such exchange in all material respects.         (d)   Governmental Authorization; Other Consents.  No approval, consent, exemption,  authorization, or other action by, or notice to, or filing with, any Governmental Authority or any  other Person is necessary or required in connection with the execution, delivery or performance                                        - 3 -  [AM_ACTIVE 402047551_7] 

 

    by, or enforcement against, the Company of this Agreement, except for such approvals, consents,  exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in  full force and effect.          (e)   Execution and Delivery; Binding Effect.  This Agreement has been duly   authorized, executed and delivered by the Company.  This Agreement constitutes a legal, valid   and binding obligation of the Company, enforceable against the Company in accordance with its   terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,   receivership, moratorium or other Laws affecting creditors’ rights generally and by general   principles of equity.          (f)   The Warrants and Warrant Shares. Each Warrant has been duly authorized and,   when executed and delivered as contemplated hereby, will constitute a valid and legally binding   obligation of the Company enforceable against the Company in accordance with its terms, except   as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,   moratorium or other Laws affecting creditors’ rights generally and by general principles of   equity. The Warrant Shares have been duly authorized and reserved for issuance upon exercise   of the Warrants and when so issued in accordance with the terms of the Warrants will be validly   issued, fully paid and non-assessable, subject, if applicable, to the approvals of its stockholders   set forth on Schedule 3.          (g)   Authorization, Enforceability.                (i)   The Company has the corporate power and authority to execute and         deliver this Agreement and the Warrants and, subject, if applicable, to the approvals of its         stockholders set forth on Schedule 3, to carry out its obligations hereunder and thereunder         (which includes the issuance of the Warrants and Warrant Shares). The execution,         delivery and performance by the Company of this Agreement and the Warrants and the         consummation of the transactions contemplated hereby and thereby have been duly         authorized by all necessary corporate or other organizational action on the part of the         Company and its stockholders, and no further approval or authorization is required on the         part of the Company, subject, in each case, if applicable, to the approvals of its         stockholders set forth on Schedule 3.                (ii)  The execution, delivery and performance by the Company of this         Agreement do not and will not (a) contravene the terms of its Organizational Documents,         (b) conflict with or result in any breach or contravention of, or the creation of any Lien         (as defined in the Promissory Note) under, or require any payment to be made under (i)         any material Contractual Obligation to which the Company is a party or affecting the         Company or the properties of the Company or any Subsidiary or (ii) any material order,         injunction, writ or decree of any Governmental Authority or any arbitral award to which         the Company or any Subsidiary or its property is subject or (c) violate any Law, except to         the extent that such violation could not reasonably be expected to have a Material         Adverse Effect.                (iii) Other than any current report on Form 8-K required to be filed with the         SEC (which shall be made on or before the date on which it is required to be filed), such                                         - 4 -   [AM_ACTIVE 402047551_7] 

 

         filings and approvals as are required to be made or obtained under any state “blue sky”        laws, the filing of any proxy statement contemplated by Section 3.1 and such filings and        approvals as have been made or obtained, no notice to, filing with, exemption or review        by, or authorization, consent or approval of, any Governmental Authority is required to        be made or obtained by the Company in connection with the execution, delivery and        performance by the Company of this Agreement and the consummation by the Company        of the issuance of the Warrants except for any such notices, filings, exemptions, reviews,        authorizations, consents and approvals the failure of which to make or obtain would not,        individually or in the aggregate, reasonably be expected to have a Material Adverse        Effect.         (h)   Anti-takeover Provisions and Rights Plan. The Board of Directors of the  Company (the “Board of Directors”) has taken all necessary action, and will in the future take  any necessary action, to ensure that the transactions contemplated by this Agreement and the  Warrants and the consummation of the transactions contemplated hereby and thereby, including  the exercise of the Warrants in accordance with their terms, will be exempt from any anti- takeover or similar provisions of the Company’s Organizational Documents, and any other  provisions of any applicable “moratorium”, “control share”, “fair price”, “interested stockholder”  or other anti-takeover laws and regulations of any jurisdiction, whether existing on the date  hereof or implemented after the date hereof.  The Company has taken all actions necessary, and  will in the future take any necessary action, to render any stockholders’ rights plan of the  Company inapplicable to this Agreement and the Warrants and the consummation of the  transactions contemplated hereby and thereby, including the exercise of the Warrants by  Treasury in accordance with its terms.         (i)   Reports.               (i)   Since December 31, 2017, the Company and each Subsidiary has timely        filed all reports, registrations, documents, filings, statements and submissions, together        with any amendments thereto, that it was required to file with any Governmental        Authority (the foregoing, collectively, the “Company Reports”) and has paid all fees and        assessments due and payable in connection therewith, except, in each case, as would not,        individually or in the aggregate, reasonably be expected to have a Material Adverse        Effect. As of their respective dates of filing, the Company Reports complied in all        material respects with all statutes and applicable rules and regulations of the applicable        Governmental Authority. In the case of each such Company Report filed with or        furnished to the SEC, such Company Report (A) did not, as of its date or if amended        prior to the date hereof, as of the date of such amendment, contain an untrue statement of        a material fact or omit to state a material fact necessary in order to make the statements        made therein, in light of the circumstances under which they were made, not misleading,        and (B) complied as to form in all material respects with the applicable requirements of        the Securities Act and the Exchange Act. With respect to all other Company Reports, the        Company Reports were complete and accurate in all material respects as of their        respective dates. No executive officer of the Company or any Subsidiary has failed in any        respect to make the certifications required of him or her under Section 302 or 906 of the        Sarbanes-Oxley Act of 2002.                                        - 5 -  [AM_ACTIVE 402047551_7] 

 

               (ii)  The Company (A) has implemented and maintains disclosure controls and        procedures (as defined in Rule 13a-15(e) of the Exchange Act) to ensure that material        information relating to the Company, including its Subsidiaries, is made known to the        chief executive officer and the chief financial officer of the Company by others within        those entities, and (B) has disclosed, based on its most recent evaluation prior to the date        hereof, to the Company’s outside auditors and the audit committee of the Board of        Directors (x) any significant deficiencies and material weaknesses in the design or        operation of internal controls over financial reporting (as defined in Rule 13a-15(f) of the        Exchange Act) that are reasonably likely to adversely affect the Company’s ability to        record, process, summarize and report financial information and (y) any fraud, whether or        not material, that involves management or other employees who have a significant role in        the Company’s internal controls over financial reporting.         (j)   Offering of Securities. Neither the Company nor any person acting on its behalf  has taken any action (including any offering of any securities of the Company under  circumstances which would require the integration of such offering with the offering of any of  the Warrants under the Securities Act, and the rules and regulations of the Securities and  Exchange Commission (the “SEC”) promulgated thereunder), which might subject the offering,  issuance or sale of any of the Warrants to Treasury pursuant to this Agreement to the registration  requirements of the Securities Act.         (k)   Brokers and Finders. No broker, finder or investment banker is entitled to any  financial advisory, brokerage, finder’s or other fee or commission in connection with this  Agreement or the Warrants or the transactions contemplated hereby or thereby based upon  arrangements made by or on behalf of the Company or any Subsidiary for which Treasury could  have any liability.                                     Article III                                    Covenants         3.1   Commercially Reasonable Efforts.         (a)   Subject to the terms and conditions of this Agreement, each of the parties will use  its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to  do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable  laws, to enable consummation of the transactions contemplated hereby and shall use  commercially reasonable efforts to cooperate with the other party to that end.         (b)   If the Company is required to obtain any stockholder approvals set forth on  Schedule 3, then the Company shall comply with this Section 3.1(b) and Section 3.1(c). The  Company shall call a special meeting of its stockholders, as promptly as practicable following  the Initial Closing, to vote on proposals (collectively, the “Stockholder Proposals”) to (i) approve  the exercise of the Warrants for Common Stock for purposes of the rules of the national  securities exchange on which the Common Stock is listed and/or (ii) amend the Company’s  Organizational Documents to increase the number of authorized shares of Common Stock to at  least such number as shall be sufficient to permit the full exercise of the Warrants for Common  Stock and comply with the other provisions of this Section 3.1(b) and Section 3.1(c). The Board                                        - 6 -  [AM_ACTIVE 402047551_7] 

 

    of Directors shall recommend to the Company’s stockholders that such stockholders vote in  favor of the Stockholder Proposals. In connection with such meeting, the Company shall prepare  (and Treasury will reasonably cooperate with the Company to prepare) and file with the SEC as  promptly as practicable (but in no event more than ten Business Days after the Initial Closing) a  preliminary proxy statement, shall use its reasonable best efforts to respond to any comments of  the SEC or its staff thereon and to cause a definitive proxy statement related to such  stockholders’ meeting to be mailed to the Company’s stockholders not more than five Business  Days after clearance thereof by the SEC, and shall use its reasonable best efforts to solicit  proxies for such stockholder approval of the Stockholder Proposals. The Company shall notify   Treasury promptly of the receipt of any comments from the SEC or its staff with respect to the   proxy statement and of any request by the SEC or its staff for amendments or supplements to   such proxy statement or for additional information and will supply Treasury with copies of all   correspondence between the Company or any of its representatives, on the one hand, and the   SEC or its staff, on the other hand, with respect to such proxy statement. If at any time prior to   such stockholders’ meeting there shall occur any event that is required to be set forth in an   amendment or supplement to the proxy statement, the Company shall as promptly as practicable   prepare and mail to its stockholders such an amendment or supplement. Each of Treasury and the   Company agrees promptly to correct any information provided by it or on its behalf for use in the   proxy statement if and to the extent that such information shall have become false or misleading   in any material respect, and the Company shall as promptly as practicable prepare and mail to its   stockholders an amendment or supplement to correct such information to the extent required by   applicable laws and regulations. The Company shall consult with Treasury prior to filing any   proxy statement, or any amendment or supplement thereto, and provide Treasury with a   reasonable opportunity to comment thereon. In the event that the approval of any of the   Stockholder Proposals is not obtained at such special stockholders meeting, the Company shall   include a proposal to approve (and the Board of Directors shall recommend approval of) each   such proposal at a meeting of its stockholders no less than once in each subsequent six-month   period beginning on September 30, 2020 until all such approvals are obtained or made.          (c)   None of the information supplied by the Company or any of the Company   Subsidiaries for inclusion in any proxy statement in connection with any such stockholders   meeting of the Company will, at the date it is filed with the SEC, when first mailed to the   Company’s stockholders and at the time of any stockholders meeting, and at the time of any   amendment or supplement thereof, contain any untrue statement of a material fact or omit to   state any material fact necessary in order to make the statements therein, in light of the   circumstances under which they are made, not misleading.          3.2   Expenses. The Company shall pay (i) all reasonable out-of-pocket expenses   incurred by Treasury (including the reasonable fees, charges and disbursements of any counsel   for Treasury) in connection with the preparation, negotiation, execution, delivery and   administration of this Agreement and the Warrants, any other agreements or documents executed   in connection herewith or therewith, or any amendments, modifications or waivers of the   provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby   shall be consummated), and (ii) all out-of-pocket expenses incurred by Treasury (including the   fees, charges and disbursements of any counsel for Treasury), in connection with the   enforcement or protection of its rights in connection with this Agreement and the Warrants, any   other agreements or documents executed in connected herewith or therewith, or any                                         - 7 -   [AM_ACTIVE 402047551_7] 

 

    amendments, modifications or waivers of the provisions hereof or thereof (whether or not the  transactions contemplated hereby or thereby shall be consummated), including all such out-of- pocket expenses incurred during any workout, restructuring, negotiations or enforcement in  respect of such Warrant Agreement, Warrant and other agreements or documents executed in  connection herewith or therewith.          3.3   Sufficiency of Authorized Common Stock; Exchange Listing.          During the period from each Warrant Closing Date (or, if the approval of the Stockholder   Proposals is required, the date of such approval) until the date on which no Warrants remain   outstanding, the Company shall at all times have reserved for issuance, free of preemptive or   similar rights, a sufficient number of authorized and unissued Warrant Shares to effectuate such   exercise. Nothing in this Section 3.3 shall preclude the Company from satisfying its obligations   in respect of the exercise of the Warrants by delivery of shares of Common Stock which are held   in the treasury of the Company. As soon as reasonably practicable following each Warrant   Closing Date, the Company shall, at its expense, cause the Warrant Shares to be listed on the   same national securities exchange on which the Common Stock is listed, subject to official   notice of issuance, and shall maintain such listing for so long as any Common Stock is listed on   such exchange.  The Company will use commercially reasonable efforts to maintain the listing of   Common Stock on such national securities exchange so long as any Warrants or Warrant Shares   remain outstanding. Neither the Company nor any of its Subsidiaries shall take any action which   would be reasonably expected to result in the delisting or suspension of the Common Stock on   such exchange.  The foregoing shall not preclude the Company from undertaking any transaction   set forth in Section 4.3 subject to compliance with that provision.                                      Article IV                                Additional Agreements          4.1   Investment Purposes. Treasury acknowledges that the Warrants and the Warrant   Shares have not been registered under the Securities Act or under any state securities laws.   Treasury (a) is acquiring the Warrants pursuant to an exemption from registration under the   Securities Act solely for investment without a view to sell and with no present intention to   distribute them to any person in violation of the Securities Act or any applicable U.S. state   securities laws; (b) will not sell or otherwise dispose of any of the Warrants or the Warrant   Shares, except in compliance with the registration requirements or exemption provisions of the   Securities Act and any applicable U.S. state securities laws; and (c) has such knowledge and   experience in financial and business matters and in investments of this type that it is capable of   evaluating the merits and risks of the Warrants and the Warrant Shares and of making an   informed investment decision.          4.2   Legends.           (a)   Treasury agrees that all certificates or other instruments representing the Warrants   and the Warrant Shares will bear a legend substantially to the following effect:          “THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE                                         - 8 -   [AM_ACTIVE 402047551_7] 

 

         SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD        OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION        STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND        APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION        FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.”         (b)   In the event that any Warrants or Warrant Shares (i) become registered under the  Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule  144 or another exemption from registration under the Securities Act (other than Rule 144A), the  Company shall issue new certificates or other instruments representing such Warrants or Warrant  Shares, which shall not contain the legend in Section 4.2(a) above; provided that Treasury  surrenders to the Company the previously issued certificates or other instruments.         4.3   Certain Transactions. The Company will not merge or consolidate with, or sell,  transfer or lease all or substantially all of its property or assets to, any other party unless the  successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the  Company), expressly assumes the due and punctual performance and observance of each and  every covenant, agreement and condition of this Agreement and the Warrants to be performed  and observed by the Company.         4.4   Transfer of Warrants and Warrant Shares. Subject to compliance with  applicable securities laws, Treasury shall be permitted to transfer, sell, assign or otherwise  dispose of (“Transfer”) all or a portion of the Warrants or Warrant Shares at any time, and  the Company shall take all steps as may be reasonably requested by Treasury to facilitate  the Transfer of the Warrants and the Warrant Shares.         4.5   Registration Rights.         (a)   Registration.               (i)   Subject to the terms and conditions of this Agreement, the Company        covenants and agrees that on or before the earlier of (A) 30 days after the date on which        all Warrants that may be issued pursuant to this Agreement have been issued and (B)        September 30, 2020 (the end of such period, the “Registration Commencement Date”),        the Company shall prepare and file with the SEC a Shelf Registration Statement covering        the maximum number of Registrable Securities (or otherwise designate an existing Shelf        Registration Statement filed with the SEC to cover the Registrable Securities) that may        be issued pursuant to this Agreement and any Warrants outstanding at that time, and, to        the extent the Shelf Registration Statement has not theretofore been declared effective or        is not automatically effective upon such filing, the Company shall use reasonable best        efforts to cause such Shelf Registration Statement to be declared or become effective and        to keep such Shelf Registration Statement continuously effective and in compliance with        the Securities Act and usable for resale of such Registrable Securities for a period from        the date of its initial effectiveness until such time as there are no Registrable Securities        remaining (including by refiling such Shelf Registration Statement (or a new Shelf        Registration Statement) if the initial Shelf Registration Statement expires). So long as the        Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities                                        - 9 -  [AM_ACTIVE 402047551_7] 

 

         Act) at the time of filing of the Shelf Registration Statement with the SEC, such Shelf        Registration Statement shall be designated by the Company as an automatic Shelf        Registration Statement. Notwithstanding the foregoing, if on the date hereof the        Company is not eligible to file a registration statement on Form S-3, then the Company        shall not be obligated to file a Shelf Registration Statement unless and until it is so        eligible and is requested to do so in writing by Treasury.               (ii)  Any registration pursuant to Section 4.5(a)(i) shall be effected by means of        a shelf registration on an appropriate form under Rule 415 under the Securities Act (a        “Shelf Registration Statement”). If Treasury or any other Holder intends to distribute any        Registrable Securities by means of an underwritten offering it shall promptly so advise        the Company and the Company shall take all reasonable steps to facilitate such        distribution, including the actions required pursuant to Section 4.5(c); provided that the        Company shall not be required to facilitate an underwritten offering of Registrable        Securities unless the total number of Warrant Shares and Warrants expected to be sold in        such offering exceeds, or are exercisable for, at least 20% of the total number of Warrant        Shares for which Warrants issued under this Agreement could be exercised (giving effect        to the anti-dilution adjustments in Warrants); and provided, further that the Company        shall not be required to facilitate more than two completed underwritten offerings within        any 12-month period. The lead underwriters in any such distribution shall be selected by        the Holders of a majority of the Registrable Securities to be distributed.               (iii) The Company shall not be required to effect a registration (including a        resale of Registrable Securities from an effective Shelf Registration Statement) or an        underwritten offering pursuant to Section 4.5(a): (A) prior to the Registration        Commencement Date; (B) with respect to securities that are not Registrable Securities; or        (C) if the Company has notified Treasury and all other Holders that in the good faith        judgment of the Board of Directors, it would be materially detrimental to the Company or        its securityholders for such registration or underwritten offering to be effected at such        time, in which event the Company shall have the right to defer such registration or        offering for a period of not more than 45 days after receipt of the request of Treasury or        any other Holder; provided that such right to delay a registration or underwritten offering        shall be exercised by the Company (1) only if the Company has generally exercised (or is        concurrently exercising) similar black-out rights against holders of similar securities that        have registration rights and (2) not more than three times in any 12-month period and not        more than 90 days in the aggregate in any 12-month period.  The Company shall notify        the Holders of the date of any anticipated termination of any such deferral period prior to        such date.                (iv)  If during any period when an effective Shelf Registration Statement is not        available, the Company proposes to register any of its equity securities, other than a        registration pursuant to Section 4.5(a)(i) or a Special Registration, and the registration        form to be filed may be used for the registration or qualification for distribution of        Registrable Securities, the Company will give prompt written notice to Treasury and all        other Holders of its intention to effect such a registration (but in no event less than ten        days prior to the anticipated filing date) and will include in such registration all        Registrable Securities with respect to which the Company has received written requests                                       - 10 -  [AM_ACTIVE 402047551_7] 

 

         for inclusion therein within ten Business Days after the date of the Company’s notice (a        “Piggyback Registration”). Any such person that has made such a written request may        withdraw its Registrable Securities from such Piggyback Registration by giving written        notice to the Company and the managing underwriter, if any, on or before the fifth        Business Day prior to the planned effective date of such Piggyback Registration. The        Company may terminate or withdraw any registration under this Section 4.5(a)(iv) prior        to the effectiveness of such registration, whether or not Treasury or any other Holders        have elected to include Registrable Securities in such registration.               (v)   If the registration referred to in Section 4.5(a)(iv) is proposed to be        underwritten, the Company will so advise Treasury and all other Holders as a part of the        written notice given pursuant to Section 4.5(a)(iv). In such event, the right of Treasury        and all other Holders to registration pursuant to Section 4.5(a) will be conditioned upon        such persons’ participation in such underwriting and the inclusion of such person’s        Registrable Securities in the underwriting if such securities are of the same class of        securities as the securities to be offered in the underwritten offering, and each such        person will (together with the Company and the other persons distributing their securities        through such underwriting) enter into an underwriting agreement in customary form with        the underwriter or underwriters selected for such underwriting by the Company; provided        that Treasury (as opposed to other Holders) shall not be required to indemnify any person        in connection with any registration. If any participating person disapproves of the terms        of the underwriting, such person may elect to withdraw therefrom by written notice to the        Company, the managing underwriters and Treasury (if Treasury is participating in the        underwriting).               (vi)  If either (x) the Company grants “piggyback” registration rights to one or        more third parties to include their securities in an underwritten offering under the Shelf        Registration Statement pursuant to Section 4.5(a)(ii) or (y) a Piggyback Registration        under Section 4.5(a)(iv) relates to an underwritten offering on behalf of the Company,        and in either case the managing underwriters advise the Company that in their reasonable        opinion the number of securities requested to be included in such offering exceeds the        number which can be sold without adversely affecting the marketability of such offering        (including an adverse effect on the per share offering price), the Company will include in        such offering only such number of securities that in the reasonable opinion of such        managing underwriters can be sold without adversely affecting the marketability of the        offering (including an adverse effect on the per share offering price), which securities        will be so included in the following order of priority: (A) first, in the case of a Piggyback        Registration under Section 4.5(a)(iv), the securities the Company proposes to sell,        (B) then the Registrable Securities of Treasury and all other Holders who have requested        inclusion of Registrable Securities pursuant to Section 4.5(a)(ii) or Section 4.5(a)(iv), as        applicable, pro rata on the basis of the aggregate number of such securities or shares        owned by each such person and (C) lastly, any other securities of the Company that have        been requested to be so included, subject to the terms of this Agreement; provided,        however, that if the Company has, prior to the date hereof, entered into an agreement with        respect to its securities that is inconsistent with the order of priority contemplated hereby        then it shall apply the order of priority in such conflicting agreement to the extent that        this Agreement would otherwise result in a breach under such agreement.                                       - 11 -  [AM_ACTIVE 402047551_7] 

 

         (b)   Expenses of Registration. All Registration Expenses incurred in connection with  any registration, qualification or compliance hereunder shall be borne by the Company. All  Selling Expenses incurred in connection with any registrations hereunder shall be borne by the  holders of the securities so registered pro rata on the basis of the aggregate offering or sale price  of the securities so registered.         (c)   Obligations of the Company. The Company shall use its reasonable best efforts,  for so long as there are Registrable Securities outstanding, to take such actions as are under its  control to not become an ineligible issuer (as defined in Rule 405 under the Securities Act) and  to remain a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) if it  has such status on the date hereof or becomes eligible for such status in the future. In addition,  whenever required to effect the registration of any Registrable Securities or facilitate the  distribution of Registrable Securities pursuant to an effective Shelf Registration Statement, the  Company shall, as expeditiously as reasonably practicable:               (i)   Prepare and file with the SEC a prospectus supplement with respect to a        proposed offering of Registrable Securities pursuant to an effective registration        statement, subject to Section 4.5(d), keep such registration statement effective and keep        such prospectus supplement current until the securities described therein are no longer        Registrable Securities. The plan of distribution included in such registration statement        shall include, among other things, an underwritten offering, ordinary brokerage        transactions and transactions in which the broker-dealer solicits purchasers, block trades,        privately negotiated transactions, the writing or settlement of options or other derivative        transactions and any other method permitted pursuant to applicable law, and any        combination of any such methods of sale.               (ii)  Prepare and file with the SEC such amendments and supplements to the        applicable registration statement and the prospectus or prospectus supplement used in        connection with such registration statement as may be necessary to comply with the        provisions of the Securities Act with respect to the disposition of all securities covered by        such registration statement.               (iii) Furnish to the Holders and any underwriters such number of copies of the        applicable registration statement and each such amendment and supplement thereto        (including in each case all exhibits) and of a prospectus, including a preliminary        prospectus, in conformity with the requirements of the Securities Act, and such other        documents as they may reasonably request in order to facilitate the disposition of        Registrable Securities owned or to be distributed by them.               (iv)  Use its reasonable best efforts to register and qualify the securities covered        by such registration statement under such other securities or Blue Sky laws of such        jurisdictions as shall be reasonably requested by the Holders or any managing        underwriter(s), to keep such registration or qualification in effect for so long as such        registration statement remains in effect, and to take any other action which may be        reasonably necessary to enable such seller to consummate the disposition in such        jurisdictions of the securities owned by such Holder; provided that the Company shall not                                        - 12 -  [AM_ACTIVE 402047551_7] 

 

         be required in connection therewith or as a condition thereto to qualify to do business or        to file a general consent to service of process in any such states or jurisdictions.               (v)   Notify each Holder of Registrable Securities at any time when a        prospectus relating thereto is required to be delivered under the Securities Act of the        happening of any event as a result of which the applicable prospectus, as then in effect,        includes an untrue statement of a material fact or omits to state a material fact required to        be stated therein or necessary to make the statements therein not misleading in light of        the circumstances then existing.               (vi)  Give written notice to the Holders:                     (A)   when any registration statement filed pursuant to Section 4.5(a) or              any amendment thereto has been filed with the SEC (except for any amendment              effected by the filing of a document with the SEC pursuant to the Exchange Act)              and when such registration statement or any post-effective amendment thereto has              become effective;                     (B)   of any request by the SEC for amendments or supplements to any              registration statement or the prospectus included therein or for additional              information;                     (C)   of the issuance by the SEC of any stop order suspending the              effectiveness of any registration statement or the initiation of any proceedings for              that purpose;                     (D)   of the receipt by the Company or its legal counsel of any              notification with respect to the suspension of the qualification of the Common              Stock for sale in any jurisdiction or the initiation or threatening of any proceeding              for such purpose;                     (E)   of the happening of any event that requires the Company to make              changes in any effective registration statement or the prospectus related to the              registration statement in order to make the statements therein not misleading              (which notice shall be accompanied by an instruction to suspend the use of the              prospectus until the requisite changes have been made); and                     (F)   if at any time the representations and warranties of the Company              contained in any underwriting agreement contemplated by Section 4.5(c)(x) cease              to be true and correct.               (vii) Use its reasonable best efforts to prevent the issuance or obtain the        withdrawal of any order suspending the effectiveness of any registration statement        referred to in Section 4.5(c)(vi)(C) at the earliest practicable time.               (viii) Upon the occurrence of any event contemplated by Section 4.5(c)(v),        4.5(c)(vi)(E) or 4.5(d), promptly prepare a post-effective amendment to such registration        statement or a supplement to the related prospectus or file any other required document                                       - 13 -  [AM_ACTIVE 402047551_7] 

 

         so that, as thereafter delivered to the Holders and any underwriters, the prospectus will        not contain an untrue statement of a material fact or omit to state any material fact        necessary to make the statements therein, in light of the circumstances under which they        were made, not misleading. If the Company notifies the Holders in accordance with        Section 4.5(c)(vi)(E) to suspend the use of the prospectus until the requisite changes to        the prospectus have been made, then the Holders and any underwriters shall suspend use        of such prospectus and use their reasonable best efforts to return to the Company all        copies of such prospectus (at the Company’s expense) other than permanent file copies        then in such Holders’ or underwriters’ possession. The total number of days that any such        suspension may be in effect in any 12-month period shall not exceed 90 days.  The        Company shall notify the Holders of the date of any anticipated termination of any such        suspension period prior to such date.               (ix)  Use reasonable best efforts to procure the cooperation of the Company’s        transfer agent in settling any offering or sale of Registrable Securities, including with        respect to the transfer of physical stock certificates into book-entry form in accordance        with any procedures reasonably requested by the Holders or any managing        underwriter(s).               (x)   If an underwritten offering is requested pursuant to Section 4.5(a)(ii), enter        into an underwriting agreement in customary form, scope and substance and take all such        other actions reasonably requested by the Holders of a majority of the Registrable        Securities being sold in connection therewith or by the managing underwriter(s), if any,        to expedite or facilitate the underwritten disposition of such Registrable Securities, and in        connection therewith in any underwritten offering (including making members of        management and executives of the Company available to participate in “road shows”,        similar sales events and other marketing activities), (A) make such representations and        warranties to the Holders that are selling stockholders and the managing underwriter(s), if        any, with respect to the business of the Company and its subsidiaries, and the Shelf        Registration Statement, prospectus and documents, if any, incorporated or deemed to be        incorporated by reference therein, in each case, in customary form, substance and scope,        and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to        furnish the underwriters with opinions and “10b-5” letters of counsel to the Company,        addressed to the managing underwriter(s), if any, covering the matters customarily        covered in such opinions and letters requested in underwritten offerings, (C) use its        reasonable best efforts to obtain “cold comfort” letters from the independent certified        public accountants of the Company (and, if necessary, any other independent certified        public accountants of any business acquired by the Company for which financial        statements and financial data are included in the Shelf Registration Statement) who have        certified the financial statements included in such Shelf Registration Statement,        addressed to each of the managing underwriter(s), if any, such letters to be in customary        form and covering matters of the type customarily covered in “cold comfort” letters, (D)        if an underwriting agreement is entered into, the same shall contain indemnification        provisions and procedures customary in underwritten offerings (provided that Treasury        shall not be obligated to provide any indemnity), and (E) deliver such documents and        certificates as may be reasonably requested by the Holders of a majority of the        Registrable Securities being sold in connection therewith, their counsel and the managing                                       - 14 -  [AM_ACTIVE 402047551_7] 

 

         underwriter(s), if any, to evidence the continued validity of the representations and        warranties made pursuant to clause (i) above and to evidence compliance with any        customary conditions contained in the underwriting agreement or other agreement        entered into by the Company.               (xi)  Make available for inspection by a representative of Holders that are        selling stockholders, the managing underwriter(s), if any, and any attorneys or        accountants retained by such Holders or managing underwriter(s), at the offices where        normally kept, during reasonable business hours, financial and other records, pertinent        corporate documents and properties of the Company, and cause the officers, directors and        employees of the Company to supply all information in each case reasonably requested        (and of the type customarily provided in connection with due diligence conducted in        connection with a registered public offering of securities) by any such representative,        managing underwriter(s), attorney or accountant in connection with such Shelf        Registration Statement.               (xii) Use reasonable best efforts to cause all such Registrable Securities to be        listed on each national securities exchange on which similar securities issued by the        Company are then listed or, if no similar securities issued by the Company are then listed        on any national securities exchange, use its reasonable best efforts to cause all such        Registrable Securities to be listed on such securities exchange as Treasury may designate.               (xiii) If requested by Holders of a majority of the Registrable Securities being        registered and/or sold in connection therewith, or the managing underwriter(s), if any,        promptly include in a prospectus supplement or amendment such information as the        Holders of a majority of the Registrable Securities being registered and/or sold in        connection therewith or managing underwriter(s), if any, may reasonably request in order        to permit the intended method of distribution of such securities and make all required        filings of such prospectus supplement or such amendment as soon as practicable after the        Company has received such request.               (xiv) Timely provide to its security holders earning statements satisfying the        provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.         (d)   Suspension of Sales. Upon receipt of written notice from the Company that a  registration statement, prospectus or prospectus supplement contains or may contain an untrue  statement of a material fact or omits or may omit to state a material fact required to be stated  therein or necessary to make the statements therein not misleading or that circumstances exist  that make inadvisable use of such registration statement, prospectus or prospectus supplement,  Treasury and each Holder of Registrable Securities shall forthwith discontinue disposition of  Registrable Securities until Treasury and/or Holder has received copies of a supplemented or  amended prospectus or prospectus supplement, or until Treasury and/or such Holder is advised in  writing by the Company that the use of the prospectus and, if applicable, prospectus supplement  may be resumed, and, if so directed by the Company, Treasury and/or such Holder shall deliver  to the Company (at the Company’s expense) all copies, other than permanent file copies then in  Treasury and/or such Holder’s possession, of the prospectus and, if applicable, prospectus  supplement covering such Registrable Securities current at the time of receipt of such notice. The                                       - 15 -  [AM_ACTIVE 402047551_7] 

 

    total number of days that any such suspension may be in effect in any 12-month period shall not  exceed 90 days.  The Company shall notify Treasury prior to the anticipated termination of any   such suspension period of the date of such anticipated termination          (e)   Termination of Registration Rights. A Holder’s registration rights as to any   securities held by such Holder shall not be available unless such securities are Registrable   Securities.          (f)   Furnishing Information.                (i)   Neither Treasury nor any Holder shall use any free writing prospectus (as         defined in Rule 405) in connection with the sale of Registrable Securities without the         prior written consent of the Company.                (ii)  It shall be a condition precedent to the obligations of the Company to take         any action pursuant to Section 4.5(c) that Treasury and/or the selling Holders and the         underwriters, if any, shall furnish to the Company such information regarding         themselves, the Registrable Securities held by them and the intended method of         disposition of such securities as shall be required to effect the registered offering of their         Registrable Securities.          (g)   Indemnification.                (i)   The Company agrees to indemnify each Holder and, if a Holder is a         person other than an individual, such Holder’s officers, directors, employees, agents,         representatives and Affiliates, and each Person, if any, that controls a Holder within the         meaning of the Securities Act (each, an “Indemnitee”), against any and all losses, claims,         damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and         disbursements of attorneys and other professionals incurred in connection with         investigating, defending, settling, compromising or paying any such losses, claims,         damages, actions, liabilities, costs and expenses), joint or several, arising out of or based         upon any untrue statement or alleged untrue statement of material fact contained in any         registration statement, including any preliminary prospectus or final prospectus contained         therein or any amendments or supplements thereto or any documents incorporated therein         by reference or contained in any free writing prospectus (as such term is defined in Rule         405) prepared by the Company or authorized by it in writing for use by such Holder (or         any amendment or supplement thereto); or any omission to state therein a material fact         required to be stated therein or necessary to make the statements therein, in light of the         circumstances under which they were made, not misleading; provided, that the Company         shall not be liable to such Indemnitee in any such case to the extent that any such loss,         claim, damage, liability (or action or proceeding in respect thereof) or expense arises out         of or is based upon (A) an untrue statement or omission made in such registration         statement, including any such preliminary prospectus or final prospectus contained         therein or any such amendments or supplements thereto or contained in any free writing         prospectus (as such term is defined in Rule 405) prepared by the Company or authorized         by it in writing for use by such Holder (or any amendment or supplement thereto), in         reliance upon and in conformity with information regarding such Indemnitee or its plan                                        - 16 -   [AM_ACTIVE 402047551_7] 

 

         of distribution or ownership interests which was furnished in writing to the Company by        such Indemnitee for use in connection with such registration statement, including any        such preliminary prospectus or final prospectus contained therein or any such        amendments or supplements thereto, or (B) offers or sales effected by or on behalf of        such Indemnitee “by means of” (as defined in Rule 159A) a “free writing prospectus” (as        defined in Rule 405) that was not authorized in writing by the Company.               (ii)  If the indemnification provided for in Section 4.5(g)(i) is unavailable to an        Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or        expenses referred to therein or is insufficient to hold the Indemnitee harmless as        contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall        contribute to the amount paid or payable by such Indemnitee as a result of such losses,        claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate        to reflect the relative fault of the Indemnitee, on the one hand, and the Company, on the        other hand, in connection with the statements or omissions which resulted in such losses,        claims, damages, actions, liabilities, costs or expenses as well as any other relevant        equitable considerations. The relative fault of the Company, on the one hand, and of the        Indemnitee, on the other hand, shall be determined by reference to, among other factors,        whether the untrue statement of a material fact or omission to state a material fact relates        to information supplied by the Company or by the Indemnitee and the parties’ relative        intent, knowledge, access to information and opportunity to correct or prevent such        statement or omission; the Company and each Holder agree that it would not be just and        equitable if contribution pursuant to this Section 4.5(g)(ii) were determined by pro rata        allocation or by any other method of allocation that does not take account of the equitable        considerations referred to in Section 4.5(g)(i). No Indemnitee guilty of fraudulent        misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be        entitled to contribution from the Company if the Company was not guilty of such        fraudulent misrepresentation.         (h)   Assignment of Registration Rights. The rights of Treasury to registration of  Registrable Securities pursuant to Section 4.5(a) may be assigned by Treasury to a transferee or  assignee of Registrable Securities in connection with a transfer of a total number of Warrant  Shares and/or Warrants exercisable for at least 20% of the total number of Warrant Shares for  which Warrants issued and to be issued under this Agreement could be exercised (giving effect  to the anti-dilution adjustments in Warrants); provided, however, the transferor shall, within ten  days after such transfer, furnish to the Company written notice of the name and address of such  transferee or assignee and the number and type of Registrable Securities that are being assigned.          (i)   Clear Market. With respect to any underwritten offering of Registrable Securities  by Treasury or other Holders pursuant to this Section 4.5, the Company agrees not to effect  (other than pursuant to such registration or pursuant to a Special Registration) any public sale or  distribution, or to file any Shelf Registration Statement (other than such registration or a Special  Registration) covering, in the case of an underwritten offering of Common Stock or Warrants,  any of its equity securities, or, in each case, any securities convertible into or exchangeable or  exercisable for such securities, during the period not to exceed 30 days following the effective  date of such offering. The Company also agrees to cause such of its directors and senior  executive officers to execute and deliver customary lock-up agreements in such form and for                                       - 17 -  [AM_ACTIVE 402047551_7] 

 

    such time period up to 30 days as may be requested by the managing underwriter. “Special   Registration” means the registration of (A) equity securities and/or options or other rights in   respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or (B) shares of   equity securities and/or options or other rights in respect thereof to be offered to directors,   members of management, employees, consultants, customers, lenders or vendors of the   Company or Company Subsidiaries or in connection with dividend reinvestment plans.          (j)   Rule 144; Rule 144A. With a view to making available to Treasury and Holders   the benefits of certain rules and regulations of the SEC which may permit the sale of the   Registrable Securities to the public without registration, the Company agrees to use its   reasonable best efforts to:                (i)   make and keep adequate public information available, as those terms are         understood and defined in Rule 144(c)(1) or any similar or analogous rule promulgated         under the Securities Act, at all times after the date hereof;                (ii)  (A) file with the SEC, in a timely manner, all reports and other documents         required of the Company under the Exchange Act, and (B) if at any time the Company is         not required to file such reports, make available, upon the request of any Holder, such         information necessary to permit sales pursuant to Rule 144A (including the information         required by Rule 144A(d)(4) under the Securities Act);                (iii) so long as Treasury or a Holder owns any Registrable Securities, furnish         to Treasury or such Holder forthwith upon request: a written statement by the Company         as to its compliance with the reporting requirements of Rule 144 under the Securities Act,         and of the Exchange Act; a copy of the most recent annual or quarterly report of the         Company; and such other reports and documents as Treasury or Holder may reasonably         request in availing itself of any rule or regulation of the SEC allowing it to sell any such         securities to the public without registration; provided, however, that the availability of the         foregoing reports on the EDGAR filing system of the SEC will be deemed to satisfy the         foregoing delivery requirements; and                (iv)  take such further action as any Holder may reasonably request, all to the         extent required from time to time to enable such Holder to sell Registrable Securities         without registration under the Securities Act.          (k)   As used in this Section 4.5, the following terms shall have the following   respective meanings:                (i)   “Holder” means Treasury and any other holder of Registrable Securities to         whom the registration rights conferred by this Agreement have been transferred in         compliance with Section 4.5(h) hereof.                (ii)  “Register,” “registered,” and “registration” shall refer to a registration         effected by preparing and (A) filing a registration statement in compliance with the         Securities Act and applicable rules and regulations thereunder, and the declaration or         ordering of effectiveness of such registration statement or (B) filing a prospectus and/or                                        - 18 -   [AM_ACTIVE 402047551_7] 

 

         prospectus supplement in respect of an appropriate effective registration statement on        Form S-3.               (iii) “Registrable Securities” means (A) the Warrants (subject to Section        4.5(p)) and (B) any equity securities issued or issuable directly or indirectly with respect        to the securities referred to in the foregoing clause (A) by way of conversion, exercise or        exchange thereof, including the Warrant Shares, or share dividend or share split or in        connection with a combination of shares, recapitalization, reclassification, merger,        amalgamation, arrangement, consolidation or other reorganization, provided that, once        issued, such securities will not be Registrable Securities when (1) they are sold pursuant        to an effective registration statement under the Securities Act, (2) except as provided        below in Section 4.5(o), they may be sold pursuant to Rule 144 without limitation        thereunder on volume or manner of sale, (3) they shall have ceased to be outstanding or        (4) they have been sold in a private transaction in which the transferor’s rights under this        Agreement are not assigned to the transferee of the securities. No Registrable Securities        may be registered under more than one registration statement at any one time.               (iv)  “Registration Expenses” mean all expenses incurred by the Company in        effecting any registration pursuant to this Agreement (whether or not any registration or        prospectus becomes effective or final) or otherwise complying with its obligations under        this Section 4.5, including all registration, filing and listing fees, printing expenses, fees        and disbursements of counsel for the Company, blue sky fees and expenses, expenses        incurred in connection with any “road show”, the reasonable fees and disbursements of        Treasury’s counsel (if Treasury is participating in the registered offering), and expenses        of the Company’s independent accountants in connection with any regular or special        reviews or audits incident to or required by any such registration, but shall not include        Selling Expenses.               (v)   “Rule 144”, “Rule 144A”, “Rule 159A”, “Rule 405” and “Rule 415”        mean, in each case, such rule promulgated under the Securities Act (or any successor        provision), as the same shall be amended from time to time.               (vi)  “Selling Expenses” mean all discounts, selling commissions and stock        transfer taxes applicable to the sale of Registrable Securities and fees and disbursements        of counsel for any Holder (other than the fees and disbursements of Treasury’s counsel        included in Registration Expenses).         (l)   At any time, any holder of Securities (including any Holder) may elect to forfeit  its rights set forth in this Section 4.5 from that date forward; provided, that a Holder forfeiting  such rights shall nonetheless be entitled to participate under Section 4.5(a)(iv) – (vi) in any  Pending Underwritten Offering to the same extent that such Holder would have been entitled to  if the holder had not withdrawn; and provided, further, that no such forfeiture shall terminate a  Holder’s rights or obligations under Section 4.5(f) with respect to any prior registration or  Pending Underwritten Offering. “Pending Underwritten Offering” means, with respect to any  Holder forfeiting its rights pursuant to this Section 4.5(l), any underwritten offering of  Registrable Securities in which such Holder has advised the Company of its intent to register its                                        - 19 -  [AM_ACTIVE 402047551_7] 

 

    Registrable Securities either pursuant to Section 4.5(a)(ii) or 4.5(a)(iv) prior to the date of such  Holder’s forfeiture.          (m)   Specific Performance. The parties hereto acknowledge that there would be no   adequate remedy at law if the Company fails to perform any of its obligations under this   Section 4.5 and that Treasury and the Holders from time to time may be irreparably harmed by   any such failure, and accordingly agree that Treasury and such Holders, in addition to any other   remedy to which they may be entitled at law or in equity, to the fullest extent permitted and   enforceable under applicable law shall be entitled to compel specific performance of the   obligations of the Company under this Section 4.5 in accordance with the terms and conditions   of this Section 4.5.          (n)   No Inconsistent Agreements. The Company shall not, on or after the date hereof,   enter into any agreement with respect to its securities that may impair the rights granted to   Treasury and the Holders under this Section 4.5 or that otherwise conflicts with the provisions   hereof in any manner that may impair the rights granted to Treasury and the Holders under this   Section 4.5. In the event the Company has, prior to the date hereof, entered into any agreement   with respect to its securities that is inconsistent with the rights granted to Treasury and the   Holders under this Section 4.5 (including agreements that are inconsistent with the order of   priority contemplated by Section 4.5(a)(vi)) or that may otherwise conflict with the provisions   hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure   they are consistent with the provisions of this Section 4.5. Any transaction entered into by the   Company that would reasonably be expected to require the inclusion in a Shelf Registration   Statement or any Company Report filed with the SEC of any separate financial statements   pursuant to Rule 3-05 of Regulation S-X or pro forma financial statements pursuant to Article 11   of Regulation S-X shall include provisions requiring the Company’s counterparty to provide any   information necessary to allow the Company to comply with its obligation hereunder.          (o)   Certain Offerings by Treasury. In the case of any securities held by Treasury that   cease to be Registrable Securities solely by reason of clause (2) in the definition of “Registrable   Securities,” the provisions of Sections 4.5(a)(ii), clauses (iv), (ix) and (x)-(xii) of Section 4.5(c),   Section 4.5(g) and Section 4.5(i) shall continue to apply until such securities otherwise cease to   be Registrable Securities. In any such case, an “underwritten” offering or other disposition shall   include any distribution of such securities on behalf of Treasury by one or more broker-dealers,   an “underwriting agreement” shall include any purchase agreement entered into by such broker-  dealers, and any “registration statement” or “prospectus” shall include any offering document   approved by the Company and used in connection with such distribution.          (p)   Registered Sales of the Warrants. The Holders agree to sell the Warrants or any   portion thereof under the Shelf Registration Statement only beginning 30 days after notifying the   Company of any such sale, during which 30-day period Treasury and all Holders of the Warrants   shall take reasonable steps to agree to revisions to the Warrants, at the expense of the Company,   to permit a public distribution of the Warrants, including entering into a revised warrant   agreement, appointing a warrant agent, and making the securities eligible for book entry clearing   and settlement at the Depositary Trust Company.                                         - 20 -   [AM_ACTIVE 402047551_7] 

 

         4.6   Voting of Warrant Shares. Notwithstanding anything in this Agreement to the  contrary, Treasury shall not exercise any voting rights with respect to the Warrant Shares.                                      Article V                                   Miscellaneous         5.1   Survival of Representations and Warranties. The representations and warranties of  the Company made herein or in any certificates delivered in connection with the Initial Closing  or any subsequent Closing shall survive such Closing without limitation.         5.2   Amendment. No amendment of any provision of this Agreement will be effective  unless made in writing and signed by an officer or a duly authorized representative of each party;  provided that Treasury may unilaterally amend any provision of this Agreement to the extent  required to comply with any changes after the date hereof in applicable federal statutes. No  failure or delay by any party in exercising any right, power or privilege hereunder shall operate  as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further  exercise of any other right, power or privilege. The rights and remedies herein provided shall be  cumulative of any rights or remedies provided by law.         5.3   Waiver of Conditions. No waiver will be effective unless it is in a writing signed  by a duly authorized officer of the waiving party that makes express reference to the provision or  provisions subject to such waiver.         5.4   Governing Law: Submission to Jurisdiction, Etc. This Agreement will be  governed by and construed in accordance with the federal law of the United States if and to  the extent such law is applicable, and otherwise in accordance with the laws of the State of  New York applicable to contracts made and to be performed entirely within such State.  Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the  United States District Court for the District of Columbia and the United States Court of  Federal Claims for any and all civil actions, suits or proceedings arising out of or relating  to this Agreement or the Warrants or the transactions contemplated hereby or thereby,  and (b) that notice may be served upon (i) the Company at the address and in the manner  set forth for notices to the Company in Section 5.5 and (ii) Treasury in accordance with  federal law. To the extent permitted by applicable law, each of the parties hereto hereby  unconditionally waives trial by jury in any civil legal action or proceeding relating to this  Agreement or the Warrants or the transactions contemplated hereby or thereby.         5.5   Notices. Any notice, request, instruction or other document to be given hereunder  by any party to the other will be in writing and will be deemed to have been duly given (a) on the  date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on  the second Business Day following the date of dispatch if delivered by a recognized next day  courier service. All notices to the Company shall be delivered as set forth below, or pursuant to  such other instruction as may be designated in writing by the Company to Treasury. All notices  to Treasury shall be delivered as set forth below, or pursuant to such other instructions as may be  designated in writing by Treasury to the Company.                           If to the Company:                                       - 21 -  [AM_ACTIVE 402047551_7] 

 

                              Allegiant Travel Company                             1201 N. Town Center Drive                             Las Vegas, NV, 89144                             Attention: Gregory Anderson                             Telephone: 702-830-8520                                                       If to Treasury:                              United States Department of the Treasury                             1500 Pennsylvania Avenue, NW, Room 2312                              Washington, D.C. 20220                              Attention: Assistant General Counsel (Banking and Finance)         5.6   Definitions.         (a)   The term “Governmental Authority” means the government of the United States  of America or any other nation, or of any political subdivision thereof, whether state or local, and  any agency, authority, instrumentality, regulatory body, court, central bank or other entity  exercising executive, legislative, judicial, taxing, regulatory or administrative powers or  functions of or pertaining to government (including any supra-national bodies such as the  European Union or the European Central Bank).          (b)   The term “Laws” has the meaning ascribed thereto in the Promissory Note.         (c)   The term “Lien” has the meaning ascribed thereto in the Promissory Note.         (d)   The term “Material Adverse Effect” means (a) a material adverse change in, or a  material adverse effect on, the operations, business, properties, liabilities (actual or contingent),  condition (financial or otherwise) or prospects of the Company and its Subsidiaries taken as a  whole; or (b) a material adverse effect on (i) the ability of the Company to perform its  obligations under this Agreement or any Warrant or (ii) the legality, validity, binding effect or  enforceability against the Company of this Agreement or any Warrant to which it is a party.         (e)   The term “Organizational Documents” has the meaning ascribed thereto in the  Promissory Note.         (f)   The term “Subsidiary” has the meaning ascribed thereto in the Promissory Note.         5.7   Assignment. Neither this Agreement nor any right, remedy, obligation nor  liability arising hereunder or by reason hereof shall be assignable by any party hereto without the  prior written consent of the other party, and any attempt to assign any right, remedy, obligation  or liability hereunder without such consent shall be void, except (a) an assignment, in the case of  a Business Combination where such party is not the surviving entity, or a sale of substantially all  of its assets, to the entity which is the survivor of such Business Combination or the purchaser in  such sale and (b) as provided in Section 4.5.         5.8   Severability. If any provision of this Agreement or the Warrants, or the  application thereof to any person or circumstance, is determined by a court of competent                                       - 22 -  [AM_ACTIVE 402047551_7] 

 

    jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the  application of such provision to persons or circumstances other than those as to which it has been  held invalid or unenforceable, will remain in full force and effect and shall in no way be affected,  impaired or invalidated thereby, so long as the economic or legal substance of the transactions  contemplated hereby is not affected in any manner materially adverse to any party. Upon such  determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and  equitable substitute provision to effect the original intent of the parties.          5.9   No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or   implied, is intended to confer upon any person or entity other than the Company and Treasury   any benefit, right or remedies, except that the provisions of Section 4.5 shall inure to the benefit   of the persons referred to in that Section.                                         * * *                                 [Signature page follows]                                        - 23 -   [AM_ACTIVE 402047551_7] 

 

 

 

                                                                     ANNEX A                                FORM OF OPINION         (a)   The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the state of its incorporation.         (b)   Each of the Warrants has been duly authorized and, when executed and delivered as contemplated by the Agreement, will constitute a valid and legally binding obligation of the  Company enforceable against the Company in accordance with its terms, except as the same may  be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws  affecting the enforcement of creditors’ rights generally and general equitable principles,  regardless of whether such enforceability is considered in a proceeding at law or in equity.         (c)   The shares of Common Stock issuable upon exercise of the Warrants have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in  accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable  [insert, if applicable: , subject to the approvals of the Company’s stockholders set forth on  Schedule 3].         (d)   The Company has the corporate power and authority to execute and deliver the Agreement and the Warrants and [insert, if applicable: , subject to the approvals of the   Company’s stockholders set forth on Schedule 3] to carry out its obligations thereunder (which   includes the issuance of the Warrants and Warrant Shares).         (e)   The execution, delivery and performance by the Company of the Agreement and  the Warrants and the consummation of the transactions contemplated thereby have been duly   authorized by all necessary corporate action on the part of the Company and its stockholders, and   no further approval or authorization is required on the part of the Company [insert, if   applicable: , subject, in each case, to the approvals of the Company’s stockholders set forth on   Schedule 3].         (f)   The Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by  applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the  enforcement of creditors’ rights generally and general equitable principles, regardless of whether   such enforceability is considered in a proceeding at law or in equity; provided, however, such   counsel need express no opinion with respect to Section 4.5(g) or the severability provisions of   the Agreement insofar as Section 4.5(g) is concerned.         (g)   No registration of the Warrant and the Common Stock issuable upon exercise of  the Warrant under the U.S. Securities Act of 1933, as amended, is required for the offer and sale   of the Warrant or the Common Stock issuable upon exercise of the Warrant by the Company to  the Holder pursuant to and in the manner contemplated by this Agreement.         (h)   The Company is not required to be registered as an investment company under the Investment Company Act of 1940, as amended.    [AM_ACTIVE 402047551_7]

 

                                                                     ANNEX B                              FORM OF WARRANT                                [SEE ATTACHED]   [AM_ACTIVE 402047551_7]

 

             FORM OF WARRANT TO PURCHASE COMMON STOCK   THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE  SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR  OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT  RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE  SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION  UNDER SUCH ACT AND SUCH LAWS.                                       WARRANT                                     to purchase                                 Shares of Common Stock                                of                                                                     Issue Date:            1.    Definitions.  Unless the context otherwise requires, when used herein the   following terms shall have the meanings indicated.          “Affiliate” means, with respect to any person, any person directly or indirectly   controlling, controlled by or under common control with, such other person. For purposes of this   definition, “control” (including, with correlative meanings, the terms “controlled by” and “under   common control with”) when used with respect to any person, means the possession, directly or   indirectly, of the power to cause the direction of management and/or policies of such person,   whether through the ownership of voting securities by contract or otherwise.          “Aggregate Net Cash Settlement Amount” has the meaning ascribed thereto in Section   2(i).          “Aggregate Net Share Settlement Amount” has the meaning ascribed thereto in Section   2(ii).          “Appraisal Procedure” means a procedure whereby two independent appraisers, one   chosen by the Company and one by the Original Warrantholder, shall mutually agree upon the   determinations then the subject of appraisal.  Each party shall deliver a notice to the other   appointing its appraiser within 10 days after the Appraisal Procedure is invoked.  If within 30   days after appointment of the two appraisers they are unable to agree upon the amount in   question, a third independent appraiser shall be chosen within 10 days thereafter by the mutual   consent of such first two appraisers.  The decision of the third appraiser so appointed and chosen   shall be given within 30 days after the selection of such third appraiser.  If three appraisers shall   be appointed and the determination of one appraiser is disparate from the middle determination   by more than twice the amount by which the other determination is disparate from the middle   determination, then the determination of such appraiser shall be excluded, the remaining two   determinations shall be averaged and such average shall be binding and conclusive upon the 

 

 Company and the Original Warrantholder; otherwise, the average of all three determinations   shall be binding upon the Company and the Original Warrantholder.  The costs of conducting   any Appraisal Procedure shall be borne by the Company.          “Average Market Price” means, with respect to any security, the arithmetic average of   the Market Price of such security for the 15 consecutive trading day period ending on and   including the trading day immediately preceding the determination date.           “Board of Directors” means the board of directors of the Company, including any duly   authorized committee thereof.          “Business Combination” means a merger, consolidation, statutory share exchange or   similar transaction that requires the approval of the Company’s stockholders.          “Business Day” means any day except Saturday, Sunday and any day on which banking  institutions in the State of New York generally are authorized or required by law or other  governmental actions to close; provided that banks shall be deemed to be generally open for  business in the event of a “shelter in place” or similar closure of physical branch locations at the  direction of any governmental entity if such banks’ electronic funds transfer system (including   wire transfers) are open for use by customers on such day.          “Capital Stock” means (A) with respect to any Person that is a corporation or company,   any and all shares, interests, participations or other equivalents (however designated) of capital   or capital stock of such Person and (B) with respect to any Person that is not a corporation or   company, any and all partnership or other equity interests of such Person.          “Charter” means, with respect to any Person, its certificate or articles of incorporation,   articles of association, or similar organizational document.          “Common Stock” means common stock of the Company, par value $[___] subject to   adjustment as provided in Section 13(E).            “Company” means the Person whose name, corporate or other organizational form and   jurisdiction of organization is set forth in Item 1 of Schedule A hereto.            “conversion” has the meaning set forth in Section 13(B).            “convertible securities” has the meaning set forth in Section 13(B).             “Depositary” means The Depositary Trust Company, its nominees and their respective   successors.          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any   successor statute, and the rules and regulations promulgated thereunder.          “Exercise Date” means each date a Notice of Exercise substantially in the form annexed   hereto is delivered to the Company in accordance with Section 2 hereof.                                          B-2   [AM_ACTIVE 402035251_8] 

 

      “Exercise Price” means the amount set forth in Item 2 of Schedule A hereto, subject to  adjustment as contemplated herein.           “Expiration Time” has the meaning set forth in Section 3.         “Fair Market Value” means, with respect to any security or other property, the fair  market value of such security or other property as determined by the Board of Directors, acting  in good faith in reliance on an opinion of a nationally recognized independent investment  banking firm retained by the Company for this purpose.  For so long as the Original  Warrantholder holds this Warrant or any portion thereof, it may object in writing to the Board of  Director’s calculation of fair market value within 10 days of receipt of written notice thereof.  If  the Original Warrantholder and the Company are unable to agree on fair market value during the  10-day period following the delivery of the Original Warrantholder’s objection, the Appraisal  Procedure may be invoked by either party to determine Fair Market Value by delivering written  notification thereof not later than the 30th day after delivery of the Original Warrantholder’s  objection.          “Initial Number” has the meaning set forth in Section 13(B).         “Issue Date” means the date set forth in Item 3 of Schedule A hereto.         “Market Price” means, with respect to a particular security, on any given day, the last  reported sale price regular way or, in case no such reported sale takes place on such day, the  average of the last closing bid and ask prices regular way, in either case on the principal national  securities exchange on which the applicable securities are listed or admitted to trading, or if not  listed or admitted to trading on any national securities exchange, the average of the closing bid  and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc.  selected from time to time by the Company for that purpose.  “Market Price” shall be determined  without reference to after hours or extended hours trading.  If such security is not listed and  traded in a manner that the quotations referred to above are available for the period required  hereunder, the Market Price of such security shall be deemed to be (i) in the event that any  portion of the Warrant is held by the Original Warrantholder, the fair market value per share of  such security as determined in good faith by the Original Warrantholder or (ii) in all other  circumstances, the fair market value per share of such security as determined in good faith by the  Board of Directors in reliance on an opinion of a nationally recognized independent investment  banking corporation retained by the Company for this purpose and certified in a resolution to the  Warrantholder.            “Original Warrantholder” means the United States Department of the Treasury.  Any  actions specified to be taken by the Original Warrantholder hereunder may only be taken by such  Person and not by any other Warrantholder.         “Permitted Transactions” has the meaning set forth in Section 13(B).         “Per Share Net Cash Settlement Amount” means the Average Market Price of a share of  Common Stock determined as of the relevant Exercise Date less the then applicable Exercise  Price.                                        B-3  [AM_ACTIVE 402035251_8] 

 

      “Per Share Net Share Settlement Amount” means the quotient of (i) the Average Market  Price of a share of Common Stock determined as of the relevant Exercise Date less the then  applicable Exercise Price divided by (ii) the Average Market Price of a share of Common Stock  determined as of the relevant Exercise Date.         “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used  in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.         “Per Share Fair Market Value” has the meaning set forth in Section 13(C).          “Pro Rata Repurchases” means any purchase of shares of Common Stock by the  Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to  Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B)  any other offer available to substantially all holders of Common Stock, in the case of both (A) or  (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company,  evidences of indebtedness of the Company or any other Person or any other property (including,  without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a  subsidiary), or any combination thereof, effected while this Warrant is outstanding.  The  “Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares for  purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata  Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender  or exchange offer.          “Regulatory Approvals” with respect to the Warrantholder, means, to the extent  applicable and required to permit the Warrantholder to exercise this Warrant for shares of  Common Stock and to own such Common Stock without the Warrantholder being in violation of  applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of,  filings and registrations with, notifications to, or expiration or termination of any applicable  waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,  and the rules and regulations thereunder.         “SEC” means the U.S. Securities and Exchange Commission.         “Securities Act” means the Securities Act of 1933, as amended, or any successor statute,  and the rules and regulations promulgated thereunder.         “trading day” means (A) if the shares of Common Stock are not traded on any national  or regional securities exchange or association or over-the-counter market, a Business Day or (B)  if the shares of Common Stock are traded on any national or regional securities exchange or  association or over-the-counter market, a Business Day on which such relevant exchange or  quotation system is scheduled to be open for business and on which the shares of Common Stock  (i) are not suspended from trading on any national or regional securities exchange or association  or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii)  have traded at least once on the national or regional securities exchange or association or over- the-counter market that is the primary market for the trading of the shares of Common Stock.         “U.S. GAAP” means United States generally accepted accounting principles.                                        B-4  [AM_ACTIVE 402035251_8] 

 

        “Warrant” means this Warrant, issued pursuant to the Warrant Agreement.          “Warrant Agreement” means the Warrant Agreement, dated as of the date set forth in  Item 4 of Schedule A hereto, as amended from time to time, between the Company and the  United States Department of the Treasury.          “Warrantholder” has the meaning set forth in Section 2.          “Warrant Shares” has the meaning set forth in Section 2.          2.    Number of Warrant Shares; Net Exercise.  This certifies that, for value received,   the United States Department of the Treasury or its permitted assigns (the “Warrantholder”) is   entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the   Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up   to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth   in Item 5 of Schedule A hereto.  The number of shares of Common Stock (the “Warrant Shares”)   issuable upon exercise of this Warrant and the Exercise Price are subject to adjustment as   provided herein, and all references to “Common Stock,” “Warrant Shares” and “Exercise Price”   herein shall be deemed to include any such adjustment or series of adjustments.            Upon exercise of the Warrant in accordance with Section 3 hereof, the Company shall   elect to pay or deliver, as the case may be, to the exercising Warrantholder (a) cash (“Net Cash   Settlement”) or (b) Warrant Shares together with cash, if applicable, in lieu of delivering any   fractional shares in accordance with Section 5 of this Warrant (“Net Share Settlement”). The   Company will notify the exercising Warrantholder of its election of a settlement method within   one Business Day after the relevant Exercise Date and if it fails to deliver a timely notice shall be   deemed to have elected Net Share Settlement.                   (i) Net Cash Settlement. If the Company elects Net Cash Settlement, it shall pay   to the Warrantholder cash equal to the Per Share Net Cash Settlement Amount multiplied by the   number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice   of Exercise (the “Aggregate Net Cash Settlement Amount”).                 (ii) Net Share Settlement. If the Company elects Net Share Settlement, it shall   deliver to the Warrantholder a number of shares of Common Stock equal to the Per Share Net   Share Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant   has been exercised as indicated in the Notice of Exercise (the “Aggregate Net Share Settlement   Amount”).             3.    Term; Method of Exercise.  Subject to Section 2, to the extent permitted by   applicable laws and regulations, this Warrant is exercisable, in whole or in part by the   Warrantholder, at any time or from time to time after the execution and delivery of this Warrant   by the Company on the date hereof, but in no event later than 5:00 p.m., New York City time on   the fifth anniversary of the Issue Date (the “Expiration Time”), by the surrender of this Warrant   and delivery of the Notice of Exercise annexed hereto, duly completed and executed on behalf of   the Warrantholder, at the principal executive office of the Company located at the address set   forth in Item 6 of Schedule A hereto (or such other office or agency of the Company in the                                         B-5   [AM_ACTIVE 402035251_8] 

 

 United States as it may designate by notice in writing to the Warrantholder at the address of the   Warrantholder appearing on the books of the Company).                 If the Warrantholder does not exercise this Warrant in its entirety, the   Warrantholder will be entitled to receive from the Company within a reasonable time after the   date on which this Warrant has been duly exercised in accordance with the terms of this Warrant,   and in any event not exceeding three Business Days after the date thereof, a new warrant in   substantially identical form for the purchase of that number of Warrant Shares equal to the   difference between the number of Warrant Shares subject to this Warrant and the number of   Warrant Shares as to which this Warrant is so exercised.  Notwithstanding anything in this   Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of   this Warrant for Warrant Shares is subject to the condition that the Warrantholder will have first   received any applicable Regulatory Approvals.          4.    Method of Settlement.                 (i) Net Cash Settlement.  If the Company elects Net Cash Settlement, the  Company shall, within a reasonable time, not to exceed five Business Days after the date on  which this Warrant has been duly exercised in accordance with the terms of this Warrant, pay to  the exercising Warrantholder the Aggregate Net Cash Settlement Amount.                  (ii) Net Share Settlement. If the Company elects Net Share Settlement, shares of  Common Stock equal to the Aggregate Net Share Settlement Amount shall be (x) issued in such  name or names as the exercising Warrantholder may designate and (y) delivered by the Company  or the Company's transfer agent to such Warrantholder or its nominee or nominees (i) if the  shares are then able to be so delivered, via book-entry transfer crediting the account of such  Warrantholder (or the relevant agent member for the benefit of such Warrantholder) through the  Depositary’s DWAC system (if the Company's transfer agent participates in such system), or (ii)  otherwise in certificated form by physical delivery to the address specified by the Warrantholder  in the Notice of Exercise, within a reasonable time, not to exceed three Business Days after the  date on which this Warrant has been duly exercised in accordance with the terms of this Warrant.   The Company hereby represents and warrants that any Warrant Shares issued upon the exercise  of this Warrant in accordance with the provisions of Section 3 will be duly and validly  authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges  (other than liens or charges created by the Warrantholder, income and franchise taxes incurred in   connection with the exercise of the Warrant or taxes in respect of any transfer occurring   contemporaneously therewith).  The Company agrees that the Warrant Shares so issued will be   deemed to have been issued to the Warrantholder as of the close of business on the date on which   this Warrant and payment of the Exercise Price are delivered to the Company in accordance with   the terms of this Warrant, notwithstanding that the stock transfer books of the Company may   then be closed or certificates representing such Warrant Shares may not be actually delivered on   such date.  The Company will at all times reserve and keep available, out of its authorized but   unissued Common Stock, solely for the purpose of providing for the exercise of this Warrant, the   aggregate number of shares of Common Stock then issuable upon exercise of this Warrant at any   time.  The Company will (A) procure, at its sole expense, the listing of the Warrant Shares   issuable upon exercise of this Warrant at any time, subject to issuance or notice of issuance, on   all principal stock exchanges on which the Common Stock is then listed or traded and (B)                                         B-6   [AM_ACTIVE 402035251_8] 

 

 maintain such listings of such Warrant Shares at all times after issuance.  The Company will use   reasonable best efforts to ensure that the Warrant Shares may be issued without violation of any   applicable law or regulation or of any requirement of any securities exchange on which the   Warrant Shares are listed or traded.          5.    No Fractional Warrant Shares or Scrip.  No fractional Warrant Shares or scrip   representing fractional Warrant Shares shall be issued upon any exercise of this Warrant.  In lieu   of any fractional Share to which the Warrantholder would otherwise be entitled, the   Warrantholder shall be entitled to receive a cash payment equal to the Average Market Price of   the Common Stock determined as of the Exercise Date multiplied by such fraction of a share,   less the pro-rated Exercise Price for such fractional share.          6.    No Rights as Stockholders; Transfer Books.  This Warrant does not entitle the   Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the   date of exercise hereof.  The Company will at no time close its transfer books against transfer of   this Warrant in any manner which interferes with the timely exercise of this Warrant.          7.    Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares to the   Warrantholder upon the exercise of this Warrant shall be made without charge to the   Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance   of such certificates, all of which taxes and expenses shall be paid by the Company; provided,   however, that the Company shall not be required to pay any tax that may be payable in respect of   any transfer involved in the issuance and delivery of any such certificate, or any certificates or   other securities in a name other than that of the registered holder of the Warrant surrendered   upon exercise of the Warrant.          8.    Transfer/Assignment.          (A)   Subject to compliance with clause (B) of this Section 8, this Warrant and all rights  hereunder are transferable, in whole or in part, upon the books of the Company by the registered  holder hereof in person or by duly authorized attorney, and a new warrant shall be made and  delivered by the Company, of the same tenor and date as this Warrant but registered in the name  of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency  of the Company described in Section 3.  All expenses (other than stock transfer taxes) and other  charges payable in connection with the preparation, execution and delivery of the new warrants  pursuant to this Section 8 shall be paid by the Company.          (B)   If and for so long as required by the Warrant Agreement, this Warrant shall   contain the legend as set forth in Sections 4.2(a) of the Warrant Agreement.          9.    Exchange and Registry of Warrant.  This Warrant is exchangeable, upon the   surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like   tenor and representing the right to purchase the same aggregate number of Warrant Shares.  The   Company shall maintain a registry showing the name and address of the Warrantholder as the   registered holder of this Warrant.  This Warrant may be surrendered for exchange or exercise in   accordance with its terms, at the office of the Company, and the Company shall be entitled to   rely in all respects, prior to written notice to the contrary, upon such registry.                                         B-7   [AM_ACTIVE 402035251_8] 

 

      10.   Loss, Theft, Destruction or Mutilation of Warrant.  Upon receipt by the Company  of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this  Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity  or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon  surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such  lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the  right to purchase the same aggregate number of Warrant Shares as provided for in such lost,  stolen, destroyed or mutilated Warrant.         11.   Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of  any action or the expiration of any right required or granted herein shall not be a Business Day,  then such action may be taken or such right may be exercised on the next succeeding day that is  a Business Day.         12.   Information.  With a view to making available to Warrantholders the benefits of  certain rules and regulations of the SEC which may permit the sale of the Warrants and Warrant  Shares to the public without registration, the Company agrees to use its reasonable best efforts  to:         (A)   make and keep adequate public information available, as those terms are  understood and defined in Rule 144(c) or any similar or analogous rule promulgated under the  Securities Act, at all times after the date hereof;         (B)   (x) file with the SEC, in a timely manner, all reports and other documents  required of the Company under the Securities Act and the Exchange Act, and (y) if at any time  the Company is not required to file such reports, make available, upon the request of any  Warrantholder, such information necessary to permit sales pursuant to Rule 144A (including the  information required by Rule 144A(d)(4) under the Securities Act);         (C)   furnish to any holder of Warrants or Warrant Shares forthwith upon request: a  written statement by the Company as to its compliance with the reporting requirements of the  Exchange Act and Rule 144(c)(1); a copy of the most recent annual or quarterly report of the  Company; and such other reports and documents as the Warrantholder may reasonably request in  availing itself of any rule or regulation of the SEC allowing it to sell any such securities to the  public without registration; and         (D)   take such further action as any Warrantholder may reasonably request, all to the  extent required from time to time to enable such Warantholder to sell Warrants or Warrant  Shares without registration under the Securities Act.         13.   Adjustments and Other Rights.  The Exercise Price and the number of Warrant  Shares issuable upon exercise of the Warrant shall be subject to adjustment from time to time as  follows; provided, that if more than one subsection of this Section 13 is applicable to a single  event, the subsection shall be applied that produces the largest adjustment and no single event  shall cause an adjustment under more than one subsection of this Section 13 so as to result in  duplication:                                         B-8  [AM_ACTIVE 402035251_8] 

 

      (A)   Stock Splits, Subdivisions, Reclassifications or Combinations.  If the Company  shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of  Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a  greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock  into a smaller number of shares, the number of Warrant Shares issuable upon exercise of this  Warrant at the time of the record date for such dividend or distribution or the effective date of  such subdivision, combination or reclassification shall be proportionately adjusted so that the  Warrantholder after such date shall be entitled to acquire the number of shares of Common Stock  which such holder would have owned or been entitled to receive in respect of the shares of  Common Stock subject to this Warrant after such date had this Warrant been exercised  immediately prior to such date.  In such event, the Exercise Price in effect at the time of the  record date for such dividend or distribution or the effective date of such subdivision,  combination or reclassification shall be adjusted to the number obtained by dividing (x) the  product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before  such adjustment and (2) the Exercise Price in effect immediately prior to the record or effective  date, as the case may be, for the dividend, distribution, subdivision, combination or  reclassification giving rise to this adjustment by (y) the new number of Warrant Shares issuable  upon exercise of the Warrant determined pursuant to the immediately preceding sentence.         (B)   Certain Issuances of Common Stock or Convertible Securities.  If the Company  shall issue shares of Common Stock (or rights or warrants or other securities exercisable or  convertible into or exchangeable (collectively, a “conversion”) for shares of Common Stock)  (collectively, “convertible securities”) (other than in Permitted Transactions (as defined below)  or a transaction to which subsection (A) of this Section 13 is applicable) without consideration or  at a consideration per share (or having a conversion price per share) that is less than 90% of the  Average Market Price determined as of the date of the agreement on pricing such shares (or such  convertible securities) then, in such event:               (A) the number of Warrant Shares issuable upon the exercise of this Warrant              immediately prior to the date of the agreement on pricing of such shares (or of              such convertible securities) (the “Initial Number”) shall be increased to the              number obtained by multiplying the Initial Number by a fraction (A) the              numerator of which shall be the sum of (x) the number of shares of Common              Stock of the Company outstanding on such date and (y) the number of additional              shares of Common Stock issued (or into which convertible securities may be              exercised or convert) and (B) the denominator of which shall be the sum of (I) the              number of shares of Common Stock outstanding on such date and (II) the number              of shares of Common Stock which the aggregate consideration receivable by the              Company for the total number of shares of Common Stock so issued (or into              which convertible securities may be exercised or convert) would purchase at the              Average Market Price determined as of the date of the agreement on pricing such              shares (or such convertible securities); and               (B) the Exercise Price payable upon exercise of the Warrant shall be adjusted by              multiplying such Exercise Price in effect immediately prior to the date of the              agreement on pricing of such shares (or of such convertible securities) by a              fraction, the numerator of which shall be the number of shares of Common Stock                                        B-9  [AM_ACTIVE 402035251_8] 

 

            issuable upon exercise of this Warrant prior to such date and the denominator of              which shall be the number of shares of Common Stock issuable upon exercise of              this Warrant immediately after the adjustment described in clause (A) above.         For purposes of the foregoing, the aggregate consideration receivable by the Company in  connection with the issuance of such shares of Common Stock or convertible securities shall be  deemed to be equal to the sum of the net offering price (including the Fair Market Value of any  non-cash consideration and after deduction of any related expenses payable to third parties) of all  such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion  of any such convertible securities into shares of Common Stock; and “Permitted Transactions”  shall mean issuances (i) as consideration for or to fund the acquisition of businesses and/or  related assets, (ii) in connection with employee benefit plans and compensation related  arrangements in the ordinary course and consistent with past practice approved by the Board of  Directors, (iii) in connection with a public or broadly marketed offering and sale of Common  Stock or convertible securities for cash conducted by the Company or its affiliates pursuant to  registration under the Securities Act or Rule 144A thereunder on a basis consistent with capital  raising transactions by comparable institutions and (iv) in connection with the exercise of  preemptive rights on terms existing as of the Issue Date.  Any adjustment made pursuant to this  Section 13(B) shall become effective immediately upon the date of such issuance.         (C)   Other Distributions.  In case the Company shall fix a record date for the making  of a distribution to all holders of shares of its Common Stock of securities, evidences of  indebtedness, assets, cash, rights or warrants (excluding dividends of its Common Stock and  other dividends or distributions referred to in Section 13(A)), in each such case, the Exercise  Price in effect prior to such record date shall be reduced immediately thereafter to the price  determined by multiplying the Exercise Price in effect immediately prior to the reduction by the  quotient of (x) the Average Market Price of the Common Stock determined as of the first date on  which the Common Stock trades regular way on the principal national securities exchange on  which the Common Stock is listed or admitted to trading without the right to receive such  distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences  of indebtedness, assets, rights or warrants to be so distributed in respect of one share of Common  Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided by  (y) the Average Market Price specified in clause (x); such adjustment shall be made successively  whenever such a record date is fixed.  In such event, the number of Warrant Shares issuable upon  the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product  of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such  adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise  to this adjustment by (y) the new Exercise Price determined in accordance with the immediately  preceding sentence.  In the event that such distribution is not so made, the Exercise Price and the  number of Warrant Shares issuable upon exercise of this Warrant then in effect shall be  readjusted, effective as of the date when the Board of Directors determines not to distribute such  shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the  Exercise Price that would then be in effect and the number of Warrant Shares that would then be  issuable upon exercise of this Warrant if such record date had not been fixed.         (D)   Certain Repurchases of Common Stock.  In case the Company effects a Pro Rata  Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined                                        B-10  [AM_ACTIVE 402035251_8] 

 

by multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro  Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number  of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y)  the Average Market Price of a share of Common Stock determined as of the date of the first  public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata  Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which  the denominator shall be the product of (i) the number of shares of Common Stock outstanding  immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so  repurchased and (ii) the Average Market Price per share of Common Stock determined as of the  date of the first public announcement by the Company or any of its Affiliates of the intent to  effect such Pro Rata Repurchase.  In such event, the number of shares of Common Stock issuable  upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the  product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before  such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata  Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in  accordance with the immediately preceding sentence.  For the avoidance of doubt, no increase to  the Exercise Price or decrease in the number of Warrant Shares issuable upon exercise of this  Warrant shall be made pursuant to this Section 13(D).         (E)   Business Combinations.  In case of any Business Combination or reclassification  of Common Stock (other than a reclassification of Common Stock referred to in Section 13(A)),  the Warrantholder’s right to receive Warrant Shares upon exercise of this Warrant shall be  converted into the right to exercise this Warrant to acquire the number of shares of stock or other  securities or property (including cash) which the Common Stock issuable (at the time of such  Business Combination or reclassification) upon exercise of this Warrant immediately prior to  such Business Combination or reclassification would have been entitled to receive upon  consummation of such Business Combination or reclassification; and in any such case, if  necessary, the provisions set forth herein with respect to the rights and interests thereafter of the  Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably  be, to the Warrantholder’s right to exercise this Warrant in exchange for any shares of stock or  other securities or property pursuant to this paragraph.  In determining the kind and amount of  stock, securities or the property receivable upon exercise of this Warrant following the  consummation of such Business Combination, if the holders of Common Stock have the right to  elect the kind or amount of consideration receivable upon consummation of such Business  Combination, then the consideration that the Warrantholder shall be entitled to receive upon  exercise shall be deemed to be the types and amounts of consideration received by the majority  of all holders of the shares of common stock that affirmatively make an election (or of all such  holders if none make an election).         (F)   Rounding of Calculations; Minimum Adjustments.  All calculations under this  Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-  hundredth (1/100th) of a share, as the case may be.  Any provision of this Section 13 to the  contrary notwithstanding, no adjustment in the Exercise Price or the number of Warrant Shares  shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of  a share of Common Stock, but any such amount shall be carried forward and an adjustment with  respect thereto shall be made at the time of and together with any subsequent adjustment which,                                        B-11  [AM_ACTIVE 402035251_8] 

 

together with such amount and any other amount or amounts so carried forward, shall aggregate  $0.01 or 1/10th of a share of Common Stock, or more.         (G)   Timing of Issuance of Additional Common Stock Upon Certain Adjustments.  In  any case in which the provisions of this Section 13 shall require that an adjustment shall become  effective immediately after a record date for an event, the Company may defer until the  occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such  record date and before the occurrence of such event the additional shares of Common Stock  issuable upon such exercise by reason of the adjustment required by such event over and above  the shares of Common Stock issuable upon such exercise before giving effect to such adjustment  and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of  Common Stock; provided, however, that the Company upon request shall deliver to such  Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s right  to receive such additional shares, and such cash, upon the occurrence of the event requiring such  adjustment.         (H)   Other Events.  For so long as the Original Warrantholder holds this Warrant or  any portion thereof, if any event occurs as to which the provisions of this Section 13 are not  strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of  Directors of the Company, fairly and adequately protect the purchase rights of the Warrants in  accordance with the essential intent and principles of such provisions, then the Board of  Directors shall make such adjustments in the application of such provisions, in accordance with  such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of  the Board of Directors, to protect such purchase rights as aforesaid.  The Exercise Price or the  number of Warrant Shares shall not be adjusted in the event of a change in the par value of the  Common Stock or a change in the jurisdiction of incorporation of the Company.         (I)   Statement Regarding Adjustments.  Whenever the Exercise Price or the number of  Warrant Shares shall be adjusted as provided in Section 13, the Company shall forthwith file at  the principal office of the Company a statement showing in reasonable detail the facts requiring  such adjustment and the Exercise Price that shall be in effect and the number of Warrant Shares  after such adjustment, and the Company shall also cause a copy of such statement to be sent by  mail, first class postage prepaid, to each Warrantholder at the address appearing in the  Company’s records.         (J)   Notice of Adjustment Event.  In the event that the Company shall propose to take  any action of the type described in this Section 13 (but only if the action of the type described in  this Section 13 would result in an adjustment in the Exercise Price or the number of Warrant  Shares or a change in the type of securities or property to be delivered upon exercise of this  Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in Section  13(J), which notice shall specify the record date, if any, with respect to any such action and the  approximate date on which such action is to take place.  Such notice shall also set forth the facts  with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price  and the number, kind or class of shares or other securities or property which shall be deliverable  upon exercise of this Warrant.  In the case of any action which would require the fixing of a  record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of  all other action, such notice shall be given at least 15 days prior to the taking of such proposed                                        B-12  [AM_ACTIVE 402035251_8] 

 

action.  Failure to give such notice, or any defect therein, shall not affect the legality or validity  of any such action.         (K)   Proceedings Prior to Any Action Requiring Adjustment.  As a condition precedent  to the taking of any action which would require an adjustment pursuant to this Section 13, the  Company shall take any action which may be necessary, including obtaining regulatory, New  York Stock Exchange, NASDAQ Stock Market or other applicable national securities exchange  or stockholder approvals or exemptions, as applicable, in order that the Company may thereafter  validly and legally issue as fully paid and nonassessable all shares of Common Stock that the  Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13.         (L)   Adjustment Rules.  Any adjustments pursuant to this Section 13 shall be made  successively whenever an event referred to herein shall occur.  If an adjustment in Exercise Price  made hereunder would reduce the Exercise Price to an amount below par value of the Common  Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to  the par value of the Common Stock.         14.   No Impairment.  The Company will not, by amendment of its Charter or through  any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of  securities or any other voluntary action, avoid or seek to avoid the observance or performance of  any of the terms to be observed or performed hereunder by the Company, but will at all times in  good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such  action as may be necessary or appropriate in order to protect the rights of the Warrantholder.         15.   Governing Law.  This Warrant will be governed by and construed in  accordance with the federal law of the United States if and to the extent such law is  applicable, and otherwise in accordance with the laws of the State of New York applicable  to contracts made and to be performed entirely within such State.  Each of the Company  and the Warrantholder agrees (a) to submit to the exclusive jurisdiction and venue of the  United States District Court for the District of Columbia for any civil action, suit or  proceeding arising out of or relating to this Warrant or the transactions contemplated  hereby, and (b) that notice may be served upon the Company at the address in Section 19  below and upon the Warrantholder at the address for the Warrantholder set forth in the  registry maintained by the Company pursuant to Section 9 hereof.  To the extent permitted  by applicable law, each of the Company and the Warrantholder hereby unconditionally  waives trial by jury in any civil legal action or proceeding relating to the Warrant or the  transactions contemplated hereby or thereby.         16.   Binding Effect.  This Warrant shall be binding upon any successors or assigns of  the Company.         17.   Amendments.  This Warrant may be amended and the observance of any term of  this Warrant may be waived only with the written consent of the Company and the  Warrantholder.         18.   Prohibited Actions.  The Company agrees that it will not take any action which  would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of                                        B-13  [AM_ACTIVE 402035251_8] 

 

shares of Common Stock issuable after such action upon exercise of this Warrant, together with  all shares of Common Stock then outstanding and all shares of Common Stock then issuable  upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed  the total number of shares of Common Stock then authorized by its Charter.         19.   Notices.  Any notice, request, instruction or other document to be given hereunder  by any party to the other will be in writing and will be deemed to have been duly given (a) on the  date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on  the second Business Day following the date of dispatch if delivered by a recognized next day  courier service.  All notices hereunder shall be delivered as set forth in Item 7 of Schedule A  hereto, or pursuant to such other instructions as may be designated in writing by the party to  receive such notice.         20.   Entire Agreement.  This Warrant, the forms attached hereto and Schedule A  hereto (the terms of which are incorporated by reference herein), and the Warrant Agreement  (including all documents incorporated therein), contain the entire agreement between the parties  with respect to the subject matter hereof and supersede all prior and contemporaneous  arrangements or undertakings with respect thereto.                        [Remainder of page intentionally left blank]                                         B-14  [AM_ACTIVE 402035251_8] 

 

                              [Form of Notice of Exercise]                                 Date:    TO:   [Company]   RE:   Exercise of Warrant         The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby  notifies the Company of its intention to exercise its option with respect to the number of shares  of the Common Stock set forth below covered by such Warrant.  Pursuant to Section 4 of the  Warrant, the undersigned acknowledges that the Company may settle this exercise in net cash or  shares. Cash to be paid pursuant to a Net Cash Settlement or payment of fractional shares in  connection with a Net Share Settlement should be deposited to the account of the Warrantholder  set forth below. Common Stock to be delivered pursuant to a Net Share Settlement shall be  delivered to the Warrantholder as indicated below. A new warrant evidencing the remaining  shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if  any, should be issued in the name set forth below.   Number of Warrant Shares:    Aggregate Exercise Price:    Address for Delivery of Warrant Shares:                        Wire Instructions:         Proceeds to be delivered:     $         Name of Bank:                                 City/ State of Bank:                          ABA Number of Bank                       SWIFT #                Name of Account:              Account Number at Bank:     Securities to be issued to:     If in book-entry form through the Depositary:                                                         Depositary Account Number:                                                                          Name of Agent Member:                                                                              If in certificated form:                                                                             Social Security Number or Other Identifying Number:                                                       

 

 Name:                                                                                               Street Address:                                                                                     City, State and Zip Code:                                                                          Any unexercised Warrants evidenced by the exercising Warrantholder’s interest in the Warrant:                                                     Social Security Number or Other Identifying Number:                                                         Name:                                                                                               Street Address:                                                                                     City, State and Zip Code:                                                                                             Holder:                                                                   By:                                       Name:                                                               Title:                                             B-16  [AM_ACTIVE 402035251_8] 

 

       IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by  a duly authorized officer.   Dated:                                         COMPANY:                                        By:                                            Name:                                           Title:                                        Attest:                                        By:                                            Name:                                           Title:                              [Signature Page to Warrant] 

 

                                                                 SCHEDULE A   Item 1   Name: Allegiant Travel Company  Corporate or other organizational form: Corporation  Jurisdiction of organization: Nevada   Item 2  Exercise Price: $83.33   Item 3  Issue Date:   Item 4  Date of Warrant Agreement between the Company and the United States Department of the  Treasury:   Item 5  Number of shares of Common Stock:   Item 6  Company’s address:    Item 7  Notice information: 

 

                                                                 SCHEDULE 1                          WARRANT SHARES FORMULA  The number of Warrant Shares for which Warrants issued on each Warrant Closing Date shall be  exercisable shall equal:     (i)  On the Closing Date, the quotient of (x) the product of the principal amount of the          Promissory Note multiplied by 0.1 divided by (y) the Exercise Price (as defined in          Annex B); and    (ii)  On each subsequent Warrant Closing Date, the quotient of (x) the product of the          amount by which the principal amount of the Promissory Note is increased on such          Warrant Closing Date multiplied by 0.1 divided by (y) the Exercise Price.   [AM_ACTIVE 402047551_7]

 

                                     Schedule 2                                                                                                 Shares Outstanding     Class of Capital Stock  Authorized Shares         as of 3/31/20  Common stock, par value                                   100,000,000                15,951,546  $.001  Preferred Stock.                   5,000,000                     None         ACTIVE 50053473v2 

 

                                     Schedule 3                                                                                    None.    ACTIVE 50053473v2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]