Document:

Exhibit
10.3

Execution Copy

 

AMENDED AND
RESTATED

INVESTORS
AGREEMENT

by and among

ALLEGIANT TRAVEL
COMPANY, LLC

PURCHASERS OF
SERIES A PREFERRED SHARES

and

HOLDERS OF SERIES
B PREFERRED SHARES

AND COMMON SHARES

of

ALLEGIANT TRAVEL
COMPANY, LLC

and

PAR INVESTMENT
PARTNERS, L.P.

Dated as of May 4,
2005

and

Amended and
Restated as of December 13th, 2006

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Voting Agreement

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Transfers of Shares

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Exempt Transfers

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Preemptive Rights

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Registration Rights

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Market Agreements

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Clawback Provision

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Compliance with Securities Laws

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Execution by the Company

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Enforcement

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Miscellaneous

  	
   

  	
  31

  

 

SCHEDULE A – LIST OF
EXISTING HOLDERS

SCHEDULE B – INVESTORS

EXHIBIT A – INSTRUMENT OF
ACCESSION

EXHIBIT B – TERMS OF PLAN
OF DISTRIBUTION

 i

AMENDED AND
RESTATED INVESTORS AGREEMENT

THIS AMENDED AND
RESTATED INVESTORS AGREEMENT (the “Agreement”)
is made as of December 13, 2006 by and among ALLEGIANT TRAVEL COMPANY, LLC,
a Nevada limited liability company (the “Company”),
the holders of Common Shares and Series B Shares of the Company listed on
Schedule A hereto (together with any Permitted Transferee of the Existing
Holder Shares (as herein defined) of any such person and together with any
Person who becomes subject to the provisions hereof pursuant to the provisions
of this Agreement, the “Existing Holders”),
the investors listed on Schedule B hereto (together with any Permitted
Transferee of any such person, each, an “Investor”
and together with the Existing Holders, each a “Member,”
and collectively, the “Members”)
and PAR INVESTMENT PARTNERS, L.P., a Delaware limited partnership (“PAR”).

RECITALS:

A.            The Investors entered into a
Securities Purchase Agreement with the Company’s subsidiary, Allegiant Air,
LLC, (the “Purchase Agreement”) and a
subsequent letter agreement with the Company providing, among other things, for
the sale of shares of the Company’s Series A Shares (as herein defined) and, in
connection with that agreement and as an inducement to the Investors to
purchase the Series A Shares, the Company and the Members entered into an
Investors Agreement dated as of May 4, 2005 (the “Original
Agreement”).

B.            The Company operates a low-cost
passenger airline marketed to leisure travelers in small cities (the “Business”).

C.            In connection with the initial
public offering (the “IPO”) of
the common stock, par value $.001 per share (the “Common
Stock”), of Allegiant Travel Company, a Nevada corporation and a
wholly-owned subsidiary of the Company (“Allegiant”)
pursuant to a registration statement on Form S-1 (Reg. No. 333-134145) (the “Initial Registration Statement”),
the Company will complete a reorganization transaction (the “Reorganization”) whereby Allegiant
will succeed to the Business of the Company and the members of the Company will
become stockholders of Allegiant.

D.            The Reorganization will be
accomplished through a merger (the “Merger”) of
the Company with and into Allegiant and the members of the Company will receive
shares of Common Stock of Allegiant in exchange for their shares of preferred
and common membership interests in the LLC.

E.             The members of the Company will
become record owners of shares of Common Stock of Allegiant upon completion of
the Reorganization.

F.             In connection with the closing of
the IPO, PAR is purchasing certain of the shares of Common Stock of Allegiant
that the members of the Company receive in the Reorganization.

G.            The parties to the Original
Agreement desire to amend and restate the Original Agreement to add PAR as a
party and to grant PAR certain registration rights.

 1
 

NOW, THEREFORE, in
consideration of the mutual covenants set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are acknowledged,
and intending to be legally bound, the parties hereto amend and restate the
Original Agreement and agree as follows:

This Amended and
Restated Investor Agreement shall become effective only upon the closing of the
IPO. The parties hereto acknowledge that the IPO qualifies as a Qualified
Public Offering. The parties hereto further acknowledge that the clawback
obligations set forth in Section 8 hereof will be satisfied through the
consummation of the Merger. From and after consummation of the Merger, (i) the
term “Company,” as used herein, shall mean Allegiant, as the surviving
corporation in the Merger, and (ii) the term “Common Shares,” as used herein,
shall mean the shares of Common Stock, par value $0.001 per share, of Allegiant
issued pursuant to the Merger. For purposes of this Agreement, the term “Member” shall not include PAR.

1.             Definitions.
As used in this Agreement, the following capitalized terms are defined as
provided in this Section 1:

“Affiliate” shall mean, with respect
to any Person, any Person that directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is under common Control with
such Person, including, but not limited to, any executive officer or director
of such Person or any holder of ten percent (10%) or more of the outstanding
equity or voting power of such Person.

“Board” means the managing board of
the Company.

“Certificate of Determination” means
the Certificate of Determination of Voting Powers, Designations, Preferences,
Limitations, Restrictions and Relative Rights of Series A Convertible Preferred
Shares and Series B Convertible Preferred Shares of the Company.

“Common Shares” means shares of
common equity of the Company.

“Company Securities” means,
collectively, Common Shares, Series A Shares and Series B Shares.

“ComVest” means ComVest Allegiant
Holdings LLC or its Permitted Transferees.

“Control” shall mean possession,
directly or indirectly, of power to direct or cause the direction of management
or policies (whether through ownership of voting securities, by agreement or
otherwise).

“Conversion Shares” shall mean the
total number of Common Shares an owner of Preferred Shares would receive at a
particular time upon conversion of all of his Preferred Shares into Common
Shares.

 2
 

“Darley” means Darley Properties
Limited or its Permitted Transferees.

“Director” shall mean any individual
serving on the Board of the Company.

“Existing Holder Shares” means any
Common Shares or Series B Shares now owned or subsequently acquired by any
Existing Holder or his successors, transferees or assigns.

“Investor Director” means each
Person elected to the Board pursuant to Section 2(a)(i).

“Member Notice” means written notice
from a Member notifying the Company and the selling Member that such Member
intends to exercise its Right of First Refusal as to a specified number of shares
of the Transfer Securities with respect to any Proposed Transfer.

“New Securities” means any equity
securities of the Company, whether now authorized or not, or rights, options,
or warrants to purchase such equity securities, or securities of any type
whatsoever that are, or may become, convertible into or exchangeable into or
exercisable for such equity securities other than exempt issuances described in
Section 5(b).

“Percentage Ownership” of a Member
shall be equal to the number of such Member’s Common Shares and Conversion
Shares divided by the total number of Common Shares and Conversion Shares owned
by all Members.

“Permitted Transferee” means any
Person holding shares of capital of the Company which have been transferred to
such Person in accordance with the terms and conditions of the Company’s
Operating Agreement, this Agreement and applicable securities laws.

“Person” means any individual,
corporation, limited liability company, partnership, trust, unincorporated
association, business or other legal entity and any government or governmental
agency or political subdivision thereof.

“Preferred Shares” means,
collectively, Series A Shares and Series B Shares.

“Proposed Transfer” means any
proposed assignment, sale, offer to sell, disposition or any other like
transfer of any Common Shares or Preferred Shares of the Company (or any
interest therein), in each case arising from a bona fide transaction with a
third party, actual or proposed by any of the Members (or to which any of the
Members is subject) that is not exempt from restrictions on transfer under Section
4 of this Agreement.

“Proposed Transfer Notice” means
written notice from a Member, setting forth the terms and conditions of a
Proposed Transfer.

“Prospective Transferee” means any
Person to whom a Member proposes to make a Proposed Transfer.

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“Public Offering” shall mean a firm
commitment underwritten public offering registered under the Securities Act
covering the offer and sale by the Company of its Common Shares.

“Qualified Public Offering” shall
mean a Public Offering: (a) in which (i) the aggregate proceeds to the Company
equal or exceed $30,000,000 before deduction for underwriting discounts,
commissions and fees, and (ii) the price per share of such Common Shares before
deduction for underwriting discounts and commissions, equals or exceeds $5.00
per Share (such price subject to equitable adjustment in the event of any share
split, share dividend, combination, recapitalization, reorganization,
reclassification or other similar event), and (b) that results in the
securities so offered being listed on a national securities exchange or quoted
on the NASDAQ National Market.

“Right of Co-Sale” means the right,
but not an obligation, of an Investor to participate in a Proposed Transfer on
the terms and conditions specified in the applicable Proposed Transfer Notice.

“Right of First Refusal” means the
right, but not an obligation, of each Member to purchase up to its pro rata
portion (based upon the total number of Common Shares and Conversion Shares of
such Member as compared to the total number of Common Shares and Conversion
Shares of all Members) of any Transfer Securities with respect to a Proposed Transfer,
on the terms and conditions specified in the Proposed Transfer Notice.

“Securities Act” means the
Securities Act of 1933, as amended.

“Series A Shares” means shares of
Series A Convertible Preferred Shares of the Company.

“Series B Holders” means the holders
of the Series B Shares.

“Series B Shares” means shares of
Series B Convertible Preferred Shares of the Company.

“Shares” means shares of capital of
the Company at any time outstanding including Common Shares, Preferred Shares
and Common Shares issued or issuable upon exercise or conversion, as
applicable, of share options, warrants or other convertible securities of the
Company, in each case now owned or subsequently acquired by any Member, or such
Member’s successors, Permitted Transferees or assigns.

“Transfer Securities” means Common
Shares or Preferred Shares subject to a Proposed Transfer.

“Undersubscription Notice” means
written notice from an Investor notifying the Company and the selling Member
that such Investor intends to exercise its option to purchase a portion of the
Transfer Securities not purchased pursuant to the Right of First Refusal.

 4
 

2.             Voting Agreement.

(a)           Board Composition. Each Member
shall vote all of his, her or its Shares, whether now owned or hereafter
acquired or which such Member may be empowered to vote, from time to time and
at all times, in whatever manner shall be necessary to ensure that at each
annual or special meeting of Members of the Company at which an election of
Directors is held or pursuant to any written consent of the Members of the
Company, the following persons shall be elected to the Board:

(i)            At each election of Directors in
which the holders of Series A Shares, voting as a separate class, are entitled
to elect Directors of the Company, (A) two (2) individuals (the “ComVest Directors”) designated by
ComVest, which individuals shall initially be Robert L. Priddy and Michael S. Falk
and (B) one individual (the “Darley Director”),
which individual shall initially be Declan Ryan (the ComVest Directors and
Darley Director being sometimes referred to collectively as the “Investor Directors” or individually
as an “Investor Director”);

(ii)           At each election of Directors in
which the holders of Series B Shares and Common Shares, voting as a separate
class, are entitled to elect Directors of the Company, three (3) individuals
(the “Common Directors”) designated by
the holders of the Series B Shares and Common Shares, voting as a separate
class, one of which individuals shall initially be Maurice J. Gallagher, Jr. (“Gallagher”); and

(iii)          One (1) independent Director (the “Independent Director”) selected by
mutual agreement of a majority in interest of the Series B Holders and a
majority in interest of the Investors.

At any time the
Board seat for the second or third Common Director remains vacant, any such
Common Director may be selected by a majority in interest of the Series B
Holders. The selection shall be evidenced by a written notice delivered by a
majority in interest of the Series B Holders to the Company, ComVest and
Darley.

At any time the
Board seat for the Independent Director remains vacant, a majority interest of
the Investors or a majority interest of the Series B Holders may propose a name
to serve in such position. Upon approval by both a majority interest of the
Investors and a majority interest of the Series B Holders, such individual
shall be added to Board immediately to fill such vacancy.

(b)           Removal of Board Members.

(i)            The Board shall have the right to
remove any Director for Cause upon a vote of at least 70% of all of the members
of the Board, excluding the Board member whose removal is being voted upon. For
these purposes, “Cause”
shall be defined as (i) commission of a felony or other act involving moral
turpitude, which other act is materially detrimental to the Company; (ii)
commission of any act, specifically including but not limited to, drug or
alcohol abuse, which act is materially harmful to the Company, or which in the
reasonable opinion of the Board brings the Company into disrepute; (iii)
commission of any act of fraud, dishonesty, theft or misappropriation, whether or
not related to his activities on behalf of the Company; (iv) breach of any duty
of confidentiality to the Company; or (v) material breach of the fiduciary duty
owed to all Members of the Company.

 5
 

(ii)           Each Member shall vote all of his,
her or its Shares from time to time and at all times in whatever manner as
shall be necessary to ensure (A) that no Director elected pursuant to Section
2(a) of this Agreement may be removed from office other than for Cause or
as provided in (B) or (C) below, (B) the removal of a Director elected pursuant
to Section 2(a)(i), which removal is directed or approved by the
affirmative vote of the Members entitled under Section 2(a)(i) to
designate that Director, (C) removal of a Director elected pursuant to Section
2(a)(ii), which removal is directed or approved by the affirmative vote of
the Members entitled under Section 2(a)(ii) to designate such Director,
and (D) that any vacancies created by the resignation, removal or death of a
Director elected pursuant to Section 2(a) shall be filled pursuant to
the provisions of Section 2(a). Each Member shall execute any written
consents required to effectuate the obligations of this Agreement, and the
Company shall, at the request of any Member entitled to designate a Director,
call a special meeting of Members for the purpose of electing Directors.

(c)           Notice of Elections. The
Company shall provide the holders of Series A Shares with 30 days’ prior
written notice of any intended mailing of a notice to holders of Series A
Shares for any meeting of the Company’s Members at which Directors are to be
elected. The Members entitled to designate a Director pursuant to Section
2(a) shall give written notice to the Company, no later than 20 days prior
to such mailing, of the individual(s) designated by such Members as nominees
for election as Directors. The Company shall nominate and recommend for
election as Directors only the individuals designated, or to be designated,
pursuant to Section 2(a). If the Members entitled to designate a
Director pursuant to Section 2(a) shall fail to give notice to the
Company as provided above in this Section 2(c), it shall be deemed that
the designees of such Members then serving as Directors shall be their
designees for reelection. Notwithstanding the foregoing, the notice provisions
hereof shall not apply to the election of Directors by written consent of the
Company’s Members.

(d)           Termination of Board Rights.
The obligations to vote and the rights granted pursuant to Sections 2(a)
through 2(c) shall terminate upon consummation of a Qualified Public
Offering.

(e)           Directors’ Liability and
Indemnification. The Operating Agreement of the Company (“Operating Agreement”) shall provide
(a) for elimination of the liability of Directors to the maximum extent
permitted by law, and (b) that the Company shall be authorized to indemnify
Directors for acts on behalf of the Company to the maximum extent permitted by
law. The Members acknowledge and agree that the Company does not intend to
maintain directors and officers liability insurance prior to a Public Offering.
At the request of any Director designated to serve on the Board in accordance
with this Agreement, the Company shall enter into an indemnification agreement
with such Director in form reasonably satisfactory to such director and the
Company confirming that such Director is entitled to indemnification to the
maximum extent permitted by law.

(f)            Confidentiality; Conflict of
Interest. Each Director shall be required to execute and deliver to the
Company a confidentiality agreement protecting confidential information of the
Company and the Company’s conflict of interest policy assuring that the
Director does not have any conflict of interest that may impair the Director’s
exercise of his fiduciary duty to the Members, such documents to be in such
form as may be approved by the Board of the Company.

 6
 

(g)           Drag-Along Right. In the event
that Members holding at least 66 2/3% of the Shares (the “Requisite
Members”) approve either:

(A)          a transaction or series of related
transactions in which a Person, or two or more Persons who agree to act
together to acquire, hold, vote or dispose of any securities of the Company,
would acquire from the Company or from Members of the Company shares
representing fifty percent (50%) or more of the outstanding voting power of the
Company, or

(B)           a transaction that would qualify as a
“Liquidation” as defined in the
Company’s Certificate of Determination

(such events described in
subsections (A) and (B) are referred to in this Agreement as a “Sale of the Company”), then each
Member shall, with respect to all Shares that he, she or it holds and any other
Company Securities over which he, she or it otherwise exercises dispositive
power:

(i)            in the event that a Sale of the
Company is submitted for the approval of Members after receiving proper notice
in accordance with Section 2(c), vote (in person, by proxy or by action by
written consent, as applicable) all Shares in favor of such Sale of the Company
and in opposition to any and all other proposals that could reasonably be
expected to delay or impair the ability of the Company to consummate such Sale
of the Company;

(ii)           in the event that a Sale of the
Company is to be effected by the sale of the Shares, sell all Shares
beneficially held by such Member (or in the event that the Requisite Members
are selling fewer than all of their Shares, Shares in the same proportion as
the Requisite Members are selling) to the Person(s) to whom the Requisite
Members propose to sell their Shares, for the same per-share consideration (on
an as-converted basis) and on the same relative terms and conditions as the
Requisite Members, except that the aggregate consideration to be received by
the Members in connection with any such Sale of the Company shall be allocated
and distributed in the same manner as provided upon a Liquidation as set forth
in the Company’s Certificate of Determination;

(iii)          refrain from exercising any dissenters’
rights or rights of appraisal under applicable law at any time with respect to
such Sale of the Company;

(iv)          execute and deliver all related
documentation and take such other action in support of such Sale of the Company
as shall reasonably be requested by the Company, including the execution of
such agreements and such instruments and other actions reasonably necessary to
effectuate the allocation and distribution of the aggregate consideration upon
such Sale of the Company, provided that no Member shall be required to incur
any obligation in connection with such Sale of the Company other than such
obligations as may be incurred by all Members in proportion to their interests
in the Company; and

(v)           not deposit, and cause their
Affiliates not to deposit, except as provided in this Agreement, any voting
securities owned by such Member or Affiliate in a voting trust or, except as
provided in this Agreement, subject any such voting securities to any
arrangement or agreement with respect to the voting of such shares, unless
specifically requested to do so by the acquirer in connection with such Sale of
the Company.

 7
 

The provisions of this Section
2(g) shall terminate upon consummation of a Qualified Public Offering.

(h)           Increase in Authorized Capital;
Further Issuances. Each Member shall vote all of his, her or its Shares
from time to time and at all times, in whatever manner necessary to authorize
an increase in the authorized capital of the Company so that there will be
sufficient Common Shares available for conversion of all of the then
outstanding Preferred Shares, at any time that an adjustment to the Conversion
Price (as defined in the Company’s Certificate of Determination) is made
pursuant to the Company’s Certificate of Determination. In the event the Board
approves an equity financing plan or arrangement involving an (i) increase in
the number of authorized shares of any class or series of capital of the
Company, (ii) the creation of any new class or series of equity of the Company,
and/or (iii) the issuance of additional shares of capital of the Company
(whether or not such issuance requires any action set forth in either of the
preceding items (i) or (ii)) and such action is also approved as required (if
required) under the terms of the Certificate of Determination, each Member
shall, with respect to all Shares that he, she or it holds and any other
Company securities over which he, she or it otherwise exercises voting power:
(A) be present, in person or by proxy, as a holder of Shares, at any and all
meetings of Members duly called and noticed for the approval of such plan or
arrangement and be counted for the purposes of determining the presence of a
quorum at such meetings so long as the Member votes in favor of such plan or
arrangement (otherwise, the Member agrees not to be present, in person or by
proxy at such meetings), (B) vote (in person, by proxy or by action by written
consent, as applicable) all Shares in favor of or not in opposition to such
plan or arrangement, (C) vote (in person, by proxy or by action by written
consent) in opposition to any and all other proposals that could reasonably be
expected to delay or impair the ability of the Company to consummate such plan
or arrangement, and (D) execute and deliver all related documentation and take
such other action in support of such financing as may be requested by the
Board, including the execution of such agreements and other instruments,
including but not limited to, amendments and modifications to this Agreement as
may be necessary to effectuate such financing.

(i)            Covenants of the Company. The
Company shall use its best efforts to ensure that the rights granted under this
Agreement are effective and that the Members enjoy the benefits of this
Agreement. Such actions include, without limitation, the use of the Company’s
best efforts to cause the nomination and election of the Directors as provided
above. The Company will not, by any voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be performed hereunder by
the Company, but will at all times in good faith assist in the carrying out of
all of the provisions of this Agreement.

(j)            Manner of Voting. The voting
of Shares pursuant to this Agreement may be effected in person, by proxy, by
written consent or in any other manner permitted by applicable law.

(k)           Stock Option Plans and Employment
Agreements. In no event shall the Company implement any new stock option or
bonus plan or enter into any new employment arrangements unless and until
approved by a majority of the members of the Board.

 8
 

3.             Transfers of Shares.

(a)           Right of First Refusal.

(1)           Grant. No Existing Holder
shall pledge or otherwise encumber any Company Securities held by such Existing
Holder except that this restriction shall not apply to Shares that have
heretofore been pledged by Mitch Allee (“Allee”) to
Gallagher. Each Existing Holder hereby unconditionally and irrevocably grants
to all Members a Right of First Refusal to purchase all or any portion of the
Transfer Securities that such Existing Holder may propose to transfer in a
Proposed Transfer, at the same price and on the same terms and conditions as
those offered to the Prospective Transferee.

(2)           Notice. Each Existing Holder
proposing to make a Proposed Transfer shall deliver a Proposed Transfer Notice
to the Company and to each other Member not later than 30 days prior to the
consummation of such Proposed Transfer. Such Proposed Transfer Notice shall
contain the material terms and conditions of the Proposed Transfer and the
identity of the Prospective Transferee. To exercise its Right of First Refusal,
a Member shall deliver a Member Notice to the selling Existing Holder and the
Company within 15 days after delivery of the Proposed Transfer Notice (such
15-day period, the “Notice Period”).

(3)           Undersubscription of Transfer
Securities. If by the end of the Notice Period, the Members, or any of
them, have exercised their respective rights to purchase Transfer Securities
with respect, in the aggregate, to some but not all of the Transfer Securities,
then the Company shall, immediately after the expiration of the Notice Period,
send written notice to those Members who fully exercised their options within
the Notice Period (the “Exercising Members”).
Each Exercising Member shall have an additional option to purchase all or any
part of the balance of any such remaining unsubscribed shares of Transfer
Securities on the terms and conditions set forth in the Proposed Transfer
Notice. To exercise such option, an Exercising Member shall deliver an
Undersubscription Notice to the selling Existing Holder and the Company within
15 days after the expiration of the Notice Period. In the event there are two
or more such Exercising Members that choose to exercise the last-mentioned
option for a total number of remaining shares of Transfer Securities in excess
of the number available, the remaining shares of Transfer Securities available
for purchase under this Section 3(b)(3) shall be allocated to such
Exercising Members pro rata based on the number of shares of Transfer
Securities such Exercising Members have elected to purchase. If the options to
purchase the remaining shares of Transfer Securities are exercised in full by
the Exercising Members, the Company shall immediately notify all of the
Exercising Members of that fact. If the options to purchase the remaining
shares of Transfer Securities are not exercised in full by the Exercising
Members, then the Company shall have the right to purchase all or any part of
the balance of any such remaining unsubscribed shares of Transfer Securities on
the terms and conditions set forth in the Proposed Transfer Notice.

(4)           Oversubscription of Transfer
Securities. In the event more than one Member elects to purchase any or all
of the shares of Transfer Securities specified in the Proposed Transfer Notice
and such elections to purchase aggregate more than the number of shares of
Transfer Securities, each such Member shall be entitled to purchase from the
selling Existing Holder a pro rata portion (based upon the number of Common
Shares and Conversion Shares of such Member as compared to the number of Common
Shares and Conversion Shares of all Exercising Members) of such Transfer
Securities, up to the number of shares specified in

 9
 

such Exercising Member’s
election. Any shares of Transfer Securities not so allocated shall be allocated
as aforesaid in one or more successive allocations to each Exercising Member
whose election specified a number of shares greater than the number which had
then been allocated to such Exercising Member, until all of the shares of
Transfer Securities have been allocated.

(5)           Consideration; Closing. If the
consideration proposed to be paid for the Transfer Securities is in property,
services or other non-cash consideration, and any Exercising Member (or the
Company) cannot for any reason pay for the Transfer Securities in the same form
of non-cash consideration, such Exercising Member (or the Company) may pay the
cash value equivalent thereof, as determined by the Board. The closing of the
purchase of Transfer Securities by the Exercising Members (or the Company)
shall take place, and all payments from the Exercising Members (or the Company)
shall be delivered to the selling Existing Holder by the later of (i) the date
specified in the Proposed Transfer Notice as the intended date of the Proposed
Transfer, and (ii) forty-five (45) days after delivery of the Proposed Transfer
Notice.

(b)           Right of Co-Sale.

(1)           If any Transfer Securities subject to
a Proposed Transfer by any Existing Holder are not purchased in whole by one or
more Members (or the Company) pursuant to Section 3(a) above and thereafter
are to be sold to a Prospective Transferee, each Investor who has chosen not to
exercise a right to purchase such Transfer Securities may elect to exercise its
Right of Co-Sale and participate on a pro-rata basis in the Proposed Transfer
on the same terms and conditions specified in the Proposed Transfer Notice.
Each Investor who desires to exercise its Right of Co-Sale shall give the
selling Existing Holder written notice to that effect on or before the deadline
for delivery of the Undersubscription Notice, and upon giving such notice such
Investor will be deemed to have effectively exercised the Right of Co-Sale.

(2)           Each Investor who timely exercises
its Right of Co-Sale by delivering the written notice provided for in Section
3(b)(1) (each, a “Co-Selling Investor”)
may include in the Proposed Transfer, all or any part of its Shares equal to
the product obtained by multiplying (i) the aggregate number of Common Shares
or Preferred Shares proposed to be transferred (excluding shares purchased by the
Company or the Members pursuant to the Right of First Refusal) by (ii) a
fraction, the numerator of which is the number of Common Shares and Conversion
Shares of such Co-Selling Investor immediately before consummation of the
Proposed Transfer and the denominator of which is the total number of Common
Shares and Conversion Shares, in the aggregate, of all Co-Selling Investors
immediately prior to the consummation of the Proposed Transfer, plus the number
of Common Shares and Conversion Shares owned by the selling Existing Holder. To
the extent one or more of the Investors exercise such right of participation in
accordance with the terms and conditions set forth herein, the number of Shares
that the selling Existing Holder may sell in the Proposed Transfer shall be
correspondingly reduced.

(3)           Each Co-Selling Investor shall effect
its participation in the Proposed Transfer by making reasonable arrangements,
no later than 15 days after such Co-Selling Investor’s exercise of the Right of
Co-Sale, to deliver to the transferring Member one or more share certificates,
properly endorsed for transfer to the Prospective Transferee representing

 10
 

the number of Common
Shares or Series A Shares, as applicable, that such Co-Selling Investor elects
to include in the Proposed Transfer. The Company shall make any conversion
required by an Investor to exercise its Right of Co-Sale concurrent with and
contingent upon the actual transfer of such shares to the Prospective
Transferee.

(4)           The terms and conditions of any sale
pursuant to this Section 3(b) will be on the terms and conditions
specified in the Proposed Transfer Notice.

(5)           Each share certificate a Co-Selling
Investor delivers pursuant to subparagraph (3) above will be transferred to the
Prospective Transferee against payment therefor in consummation of the sale of
the Transfer Securities pursuant to the terms and conditions specified in the
Proposed Transfer Notice and the purchase and sale agreement, and the selling
Existing Holder shall concurrently therewith remit to each Co-Selling Investor
the portion of the sale proceeds to which such Co-Selling Investor is entitled
by reason of its participation in such sale. If any Prospective Transferee or
Transferees refuse(s) to purchase Shares subject to the Right of Co-Sale from
any Co-Selling Investor exercising its Right of Co-Sale hereunder, no Existing
Holder may sell any Company Securities to such Person unless and until,
simultaneously with such sale, such Existing Holder purchases all Shares
subject to the Right of Co-Sale from such Co-Selling Investor.

(6)           If any aspect of any Proposed
Transfer is not consummated with the original Prospective Transferee, or with
or by any Investor exercising any rights under this Section 3, within 90
days after the expiration of the Right of First Refusal, the Existing Holder
proposing the Proposed Transfer may not sell any Company Securities unless it
first complies in full with each provision of this Section 3. The
exercise or election not to exercise any right by any Member hereunder shall
not adversely affect its right to participate in any other sales of Transfer
Securities subject to Section 3.

(c)           Transfers by Investors. Any
Investor may transfer any portion or all of its Series A Shares to an Affiliate
or to another transferee subject to the following: (i) the transfer complies
with all applicable state and federal securities laws and the Investor
furnishes to the Company a legal opinion to that effect in a form reasonably
satisfactory to the Company; (ii) the transfer does not jeopardize the Company’s
characterization as a U.S. Air Carrier as a result of foreign ownership of
Shares in the Company; (iii) the Board determines in good faith that ownership
of Shares in the Company by the Prospective Transferee could have a detrimental
effect on the business of the Company; and (iv) the transferee agrees to be
bound by the terms of this Agreement and the Operating Agreement. Any Investor
seeking to transfer Shares in the Company agrees to provide the Company with
any information reasonably requested by the Company concerning the Prospective
Transferee or the Proposed Transfer.

(d)           Effect of Failure to Comply.

(1)           Any Proposed Transfer not made in
compliance with the requirements of this Agreement shall be null and void ab
initio, shall not be recorded on the books of the Company or its transfer agent
and shall not be recognized by the Company. Each party hereto acknowledges and
agrees that any breach of this Agreement would result in substantial harm to
the other parties hereto for which monetary damages alone could not

 11
 

adequately compensate.
Therefore, the parties hereto unconditionally and irrevocably agree that any
non-breaching party hereto shall be entitled to seek protective orders,
injunctive relief and other remedies available at law or in equity (including,
without limitation, seeking specific performance or the rescission of
purchases, sales and other transfers not made in strict compliance with this
Agreement).

(2)           If any Member purports to sell any
Shares in contravention of the Right of Co-Sale (a “Prohibited
Transfer”), each Investor, in addition to such remedies as may
be available by law, in equity or hereunder, is entitled to require such Member
to purchase Shares from such Investor as provided below, and such Member will be
bound by the terms of such option. If a Member makes a Prohibited Transfer,
each Investor who timely exercises its Right of Co-Sale under Section 3(b)
may require such Member to purchase from such Investor the type and number of
Shares that such Investor would have been entitled to sell under Section 3(b)
had the Prohibited Transfer been effected pursuant to and in compliance with
the terms of Section 3(b).

(3)           Within 90 days after the date on
which an Investor received notice of the Prohibited Transfer or otherwise
became aware of the Prohibited Transfer, such Investor shall, if exercising the
option created hereby, make reasonable arrangements to deliver to the selling
Member, the certificate or certificates representing the Shares to be
transferred, each certificate to be properly endorsed for transfer.

(4)           Such selling Member shall, upon
receipt of the certificate or certificates for the Shares to be transferred by
an Investor pursuant to this Section 3(c), pay the aggregate purchase
price therefor in cash or by other means acceptable to such Investor.

(e)           Expiration of Rights. The
respective rights of the Members under this Section 3 shall not apply to
the sale of up to 1,750,000 shares to PAR simultaneously with the initial
Public Offering of the Company and shall expire upon the consummation of a
Qualified Public Offering.

4.             Exempt Transfers.

Notwithstanding
the foregoing or anything to the contrary herein, the provisions of Sections
3(a) and 3(b) shall not apply: (i) to sales of up to $2,500,000 of Shares
by Gallagher to one or more accredited investors (as defined in Regulation D
under the Securities Act) which is completed on or before June 30, 2005; (ii)
to any transfer of Allee’s Shares to Gallagher as a result of the pledge
agreement currently in effect; (iii) in the case of any Member that is an
entity, upon a transfer by such Member to its stockholders, members, partners
or other equity holders as a distribution in respect of such persons’ ownership
interests in such Member, (iv) pursuant to a Qualified Public Offering or a
Sale of the Company, (v) in the case of any Member that is a natural person,
upon a transfer of Shares by such Member, either during his or her lifetime or
on death by will or intestacy to his or her siblings, lineal antecedents or
descendents, spouse or any custodian or trustee for the account of such Member
or such Member’s siblings, lineal antecedents or descendents, or spouse, or
(vi) to a sale of Shares on a public trading market if there is an established
trading market for the Shares; provided, however, notwithstanding any such
permitted transfer, such transferred Shares (except in the case of a transfer
under clause (v)

 12
 

above) shall remain
Company Securities for all purposes hereunder, and such transferee shall be
treated as a Member (but only with respect to the securities so transferred to
the transferee) for all purposes of this Agreement (including the obligations
of a Member with respect to Proposed Transfers of such Shares pursuant to Section
3); and provided, further, in the case of any transfer pursuant to clause
(iii) or (v) hereof, that such transfer is made pursuant to a transaction in
which there is no consideration actually paid for such transfer.

5.             Preemptive Rights.

(a)           Grant of Rights. Subject to
the terms and conditions specified in this Section 5, in the event the
Company proposes to offer or sell any New Securities, the Company shall first
make an offering of such New Securities to each Investor and each Series B
Holder (for purposes of this Section 5, the Investors and the Series B
Holders are referred to collectively as the “Offerees”)
in accordance with the following provisions:

(i)            The Company shall deliver written
notice (each, an “Offer Notice”)
to each Offeree stating (i) its intention to offer such New Securities, (ii)
the number of such New Securities to be offered, and (iii) the price and terms,
if any, upon which it proposes to offer such New Securities.

(ii)           By written notification delivered to
the Company, within twenty (20) calendar days after the Offer Notice is given,
each Offeree may elect to purchase, at the price and on the terms specified in
the Offer Notice, up to that portion of such New Securities equal to the
product obtained by multiplying (i) the number of shares of New Securities
specified in the applicable Offer Notice, multiplied by (ii) a fraction, the
numerator of which is the number of Common Shares and Conversion Shares of such
Offeree immediately prior to the consummation of the proposed issuance of New
Securities and the denominator of which is the total number of Common Shares
and Conversion Shares of all Members immediately prior to the consummation of
the proposed issuance of New Securities. The Company shall promptly, in
writing, inform each Offeree that elects to purchase all the shares of New
Securities available to it, each, a “Fully-Exercising Offeree”)
of any other Offeree’s failure to do likewise. During the ten (10) day period
commencing after receipt of such information, each Fully-Exercising Offeree
shall be entitled to purchase that portion of New Securities for which the
Offerees were entitled to subscribe but which were not subscribed for by the
Offerees which is equal to the proportion that the number of Common Shares and
Conversion Shares of such Fully-Exercising Offeree bears to the total number of
Common Shares and Conversion Shares of all Fully-Exercising Offerees who wish
to purchase such unsubscribed shares.

(iii)          If all New Securities referred to in
the Offer Notice are not elected to be purchased as provided in Section
5(a)(ii) hereof, the Company may, during the ninety (90) day period
following the expiration of the period provided in Section 5(a)(ii)
hereof, offer the remaining unsubscribed portion of such New Securities
(collectively, the “Refused Securities”)
along with the balance of the New Securities to any Person or Persons at a
price not less than, and upon terms no more favorable to the purchasers thereof
than, those specified in the Offer Notice. If the Company does not enter into
an agreement for the sale of the New Securities within such period, or if such
agreement is not consummated within thirty (30) days of the execution thereof,
the right provided hereunder shall be deemed to be revived and such New

 13
 

Securities shall not be
offered unless first reoffered to the Investors in accordance with this Section
5(a).

(b)           Exempt Issuances. The right of
first offer in this Section 5 shall not be applicable to the following “Exempt Issuances”: (i) the issuance of Common Shares (or
options, warrants or rights exercisable for, or convertible securities
convertible into, such Common Shares) representing, in the aggregate, not more
than 500,000 Common Shares, to employees, officers or directors of, or
consultants or advisors to, the Company or any subsidiary pursuant to share
purchase or share option plans or other arrangements that are approved by the
Board, (ii) the issuance of securities pursuant to the conversion or exercise
of convertible or exercisable securities that are outstanding on the date hereof,
or that are hereafter issued in accordance with the provisions of this Section
5, in each case, that are not otherwise included in the preceding clause (i),
(iii) the issuance of securities in connection with any share split, share
dividend or recapitalization by the Company, (iv) the issuance of securities
for consideration other than cash pursuant to a merger, consolidation,
strategic alliance, acquisition or similar business combination with any Person
provided such Person is not an Affiliate of the Company or any Existing Holder,
(v) the issuance of securities pursuant to any equipment loan or leasing
arrangement, real property leasing arrangement, or debt financing from a bank
or similar financial or lending institution, and (vi) the issuance of securities
by the Company pursuant to an effective registration statement filed under the
Securities Act.

(c)           Darley Right to Purchase Shares
Upon Exempt Issuances. Darley shall have the right to purchase Common
Shares from the Company if all of the following conditions are met: (i) there
is an Exempt Issuance which causes Darley’s Percentage Ownership to be reduced
below ten percent (10%), (ii) Darley’s Percentage Ownership prior to the Exempt
Issuance was ten percent (10%) or more, and (iii) the Exempt Issuance is not
part of the Sale of the Company (as defined in Section 2(g)). In such event,
Darley shall have the right, exercisable within ten (10) days after receipt of
notice from the Company of such Exempt Issuance, to purchase additional Common
Shares to increase Darley’s Percentage Ownership to ten percent (10%);
provided, however, that in no event shall Darley have the right to purchase
more than an aggregate of 500,000 Common Shares under this Section 5(c) as a
result of all Exempt Issuances. The purchase price for the shares being
purchased shall be the value of the Common Shares as agreed upon by the Company
and Darley; provided that if the parties cannot agree on such value within
twenty (20) days after initially attempting to do so, the value shall be
determined by an investment bank mutually agreed between the Company and
Darley. Each such party will submit a proposed per share value, and the
investment bank will be required to select without modification the one of two
proposed alternatives that it believes is closest to fair market value, and
that shall be the purchase price. Darley’s designee to the Managing Board shall
not participate in the determinations by the Company under this paragraph. The
closing shall be held, and the purchase price for the additional Common Shares
shall be payable by Darley in cash, within fifteen (15) days after the price
has been determined and the Common Shares purchased shall be delivered to
Darley upon the Company’s receipt of the purchase price.

(d)           Expiration of Rights. The
rights of the Investors and Series B Holders under this Section 5 shall
expire upon the consummation of a Qualified Public Offering.

 14
 

6.             Registration Rights.
The Company covenants and agrees as follows:

(a)           Definitions. For purposes of
this Section 6:

(i)            The term “Act”
shall mean the Securities Act of 1933, as amended.

(ii)           The term “Form S-3”
shall mean such form under the Act as in effect on the date hereof or any
registration form under the Act subsequently adopted by the SEC which permits
inclusion or incorporation of substantial information by reference to other
documents filed by the Company with the SEC.

(iii)          The term “Full
Cooperation” shall mean, in connection with any underwritten
offering, where, in addition to the cooperation otherwise required by this
Agreement, (a) members of senior management of the Company (including the chief
executive officer and chief financial officer) fully cooperate with the
underwriter(s) in connection therewith and make themselves available to
participate in “road-shows” and other customary marketing activities in such
locations (domestic and foreign) as reasonably recommended by the
underwriter(s) (including one-on-one meetings with prospective purchasers of
the Registrable Securities) and (b) the Company prepares preliminary and final
prospectuses (preliminary and final prospectus supplements in the case of an
offering pursuant to a Shelf Registration Statement) for use in connection
therewith containing such additional information as reasonably requested by the
underwriter(s) (in addition to the minimum amount of information required by
law, rule or regulation)., In the event fewer than 2,000,000 Common Shares are
subject to the registration statement, then “Full Cooperation” shall not
require more than two days of marketing activities by Allegiant’s management.
Notwithstanding the foregoing, the Company’s management shall not be required
to participate in the road show for more than one registration statement filed
as a result of the demand of any Holders and the cost of any road shows shall
be borne by the selling Holders.

(iv)          The term “Fully
Marketed Underwritten Offering” means an underwritten offering in
which there is Full Cooperation but shall not include a “registered direct” or
other agented transaction that does not involve the preparation of a
preliminary prospectus or preliminary prospectus supplement in the case of the
offering pursuant to a Shelf Registration Statement.

(v)           The term “Holder”
shall mean (i) each of the Investors and Series B Holders with respect to the
Registrable Securities held by such Member (ii) any person owning or having the
right to acquire Registrable Securities or any assignee thereof in accordance
with Section 6(m) hereof and (iii) any PAR Holder.

(vi)          The term “1934 Act”
shall mean the Securities Exchange Act of 1934, as amended.

(vii)         The term “PAR”
shall mean PAR Investment Partners, L.P.

(viii)        The term “PAR Holder”
shall mean PAR Investment Partners, L.P., or any assignee thereof in accordance
with Section 6(m) hereof.

 15
 

(ix)           The term “PAR
Registrable Securities” shall mean any Registrable Securities held
by a PAR Holder.

(x)            The terms “register,”“registered,” and “registration”
refer to a registration effected by preparing and filing a registration
statement or similar document in compliance with the Act, and the declaration
or ordering of effectiveness of such registration statement or document.

(xi)           The term “Registrable
Securities” shall mean (A) Common Shares issued to the Investors
upon conversion of their Series A Shares, (B) Common Shares issued to Series B
Holders upon conversion of their Series B Shares, (C) Common Shares purchased
by PAR pursuant to that certain Stock Purchase Agreement dated November 20,
2006 by and among, inter alia, PAR, the Company and the Sellers named therein
(the “Stock Purchase Agreement”) and (D) any
Common Shares issued as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of the
securities referenced in (A), (B) or (C) above, that cannot be publicly resold
by the holder thereof without registration under the Act or the availability of
an exemption thereunder, it being understood, for the purposes of this
Agreement, that Registrable Securities shall cease to be Registrable Securities
when (1) a registration statement covering such Registrable Securities has been
declared effective and they have been disposed of pursuant to such effective
registration statement, (2) they are transferred on the open market pursuant to
any available exemption under the Act, (3) they have been otherwise transferred
and the Company has delivered new certificates or other evidences of ownership
for them not subject to any stop transfer order or other restriction on
transfer and not bearing any legend restricting transfer in the absence of an
effective registration or an exemption from the registration requirements of
the Act, (4) they have been sold, assigned, pledged, hypothecated or otherwise
disposed of by the Holder in a transaction in which the Holder’s rights under
this Agreement are not assigned or assignable, or (5) all the rights of the
Holder under this Section 1 have terminated pursuant to Section 6(n).

(xii)          The term “SEC”
shall mean the Securities and Exchange Commission.

(b)           Demand Registration.

(i)            If the Company shall receive at any
time after the date six (6) months following the initial Public Offering of
Shares of the Company a written request from the Holders of at least 25% of the
Registrable Securities then outstanding that the Company file a registration
statement under the Act covering the registration of all or any portion of
their Registrable Securities, then the Company shall:

(A)          within ten (10) days of the receipt
thereof, give written notice of such request to all Holders who shall have the
right to request that all or part of their Registrable Securities be included
in such registration statement by written notice delivered to the Company within
twenty (20) days after the date of the Company’s notice, which notice from each
requesting Holder shall specify the number of shares requested to be
registered; and

 16

(B)           use its best efforts to effect,
within one hundred twenty (120) days of the receipt of such request, the
registration under the Act of all Registrable Securities that the Holders
request to be registered, subject to the limitations of subsection 6(b)(ii)
below.

(ii)           If the Holders initiating the
registration request hereunder (“Initiating Holders”)
intend to distribute the Registrable Securities covered by their request by
means of an underwriting, they shall so advise the Company as a part of their
request made pursuant to subsection 6(b)(i) and the Company shall include such
information in the written notice referred to in subsection 6(b)(i). The
underwriter will be selected by the Company and shall be reasonably acceptable
to a majority in interest of the Initiating Holders. In such event, the right
of any Holder to include its Registrable Securities in such registration shall
be conditioned upon such Holder’s participation in such underwriting and the
inclusion of such Holder’s Registrable Securities in the underwriting (unless
otherwise mutually agreed by a majority in interest of the Initiating Holders
and such Holder) to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company as provided in subsection 6(f)(v)) enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting. Notwithstanding any other provision of this Section 6(b), if the
underwriter advises the Initiating Holders and the Company in writing that
marketing factors require a limitation of the number of shares to be
underwritten, then the Company shall so advise all Holders of Registrable
Securities that would otherwise be underwritten pursuant hereto, and the number
of shares of Registrable Securities that may be included in the underwriting
shall be allocated among all Holders thereof, including the Initiating Holders,
in proportion (as nearly as practicable) to the number of Registrable Securities
of the Company owned by each Holder.

(iii)          Notwithstanding the foregoing, if the
Company shall furnish to Holders requesting a registration statement pursuant
to this Section 6(b), a certificate signed by the Chief Executive Officer of
the Company stating that, in the good faith judgment of the Board of the
Company, such filing could reasonably be expected to have a material adverse
effect on any plan or proposal by the Company with respect to any material
transaction that the Company is at that time actively pursuing and it is
therefore essential to defer the filing of such registration statement, the
Company shall have the right to defer taking action with respect to such filing
for a period of not more than ninety (90) days after receipt of the request of
the Initiating Holders; provided, however,
that the Company may not utilize this right more than once in any twelve (12)
month period.

(iv)          In addition, the Company shall not be
obligated to effect, or to take any action to effect, any registration pursuant
to this Section 6(b):

(A)          after the Company has effected two (2)
registrations pursuant to this Section 6(b) and such registrations have been
declared or ordered effective;

(B)           during the period starting with the
date sixty (60) days prior to the Company’s good faith estimate of the date of
filing of, and ending on a date one hundred twenty (120) days after the
effective date of, a registration subject to Section 6(d) hereof, provided that the Company is actively employing in good
faith all reasonable efforts to cause such registration statement to become
effective; or

 17
 

(C)           the Holders propose to sell
Registrable Securities at an aggregate price to the public (net of any
underwriters’ discounts or commissions) of less than $30,000,000.

(c)           PAR Shelf Registration. (i) In
addition to the other registration rights hereunder, the Company shall file a
shelf registration statement under the Act covering the registration of all of
the PAR Registrable Securities on or prior to February 9, 2007 (the “Shelf Registration Statement Filing Date”), such
registration statement relating to the offering on a continuous or delayed
basis pursuant to Rule 415 from time to time by the PAR Holders of all then
outstanding PAR Registrable Securities (a “Shelf Registration”
and any such registration statement a “Shelf Registration
Statement”), in each case, in accordance with the methods of
distribution set forth in such Shelf Registration Statement (which plan of
distribution is attached as hereto as Exhibit B modified to be consistent
with then current market practice and in accordance with then applicable
securities laws, rules and regulations) and, thereafter, shall use its best
efforts to cause such Shelf Registration Statement to be declared effective
under the Act as promptly as practicable thereafter; provided, however, that no
registration statement need to be declared effective prior to the date that is
120 days after the date on which the IPO is priced.

(ii)           Underwritten Shelf Takedowns.
At any time and from time to time, any PAR Holder may request, in writing (an “Underwritten Takedown Request”), that the Company effect an
underwritten shelf takedown (other than a “registered direct” or other agented
transaction that does not involve the preparation of a preliminary prospectus
or a preliminary prospectus supplement in the case of any offering pursuant to
a Shelf Registration Statement) of all or a portion of such PAR Holder’s
Registrable Securities (an “Underwritten Shelf
Takedown”), in accordance with the terms specified in such
Underwritten Takedown Request. In connection with each such Underwritten Shelf
Takedown, the Company shall cause there to occur Full Cooperation.

(iii)          Limitations on Takedowns. There
shall be no limit on the aggregate number of takedowns off such Shelf
Registration Statement; provided, however, that the Company shall not be
obligated to effect more than one (1) Fully Marketed Underwritten Offering
pursuant to all Shelf Registration Statements under this Section 6(c). For
purposes of this Section 6(c), an Underwritten Shelf Takedown shall not be
counted as a Fully Marketed Underwritten Offering (i) if the requesting PAR
Holder withdraws its request and (X) such withdrawal is as a result of
information concerning the business or financial condition of the Company which
is made known to the PAR Holders after the date on which such Underwritten
Shelf Takedown was requested or (Y) the PAR Holder making such demand agrees to
pay the Registration Expenses therefore; or (ii) there is not Full Cooperation
by the Company in connection therewith.

(iv)          Restrictions on Underwritten Shelf
Takedowns. If at the time of any request to effect an Underwritten Shelf
Takedown by a PAR Holder pursuant to Section 6(c)(ii), the Company is engaged
or has plans to engage in a registered public offering or is engaged in any
other activity which in the good faith determination of the Company’s Board of
Directors, would be adversely affected by the requested Underwritten Shelf
Takedown, then the Company may at its option direct that such request be
delayed for a period not in excess of 30 days from the date of such request,
such right to delay a request to be exercised by the Company not more than
twice in any 365-day period. The period during which any filing is so delayed
hereunder is referred to as an “Underwritten Shelf
Takedown Delay Period”. In the event that, in the

 18
 

judgment of the Company,
it is advisable to suspend use of a prospectus included in a Shelf Registration
Statement due to pending material developments or other events that have not
yet been publicly disclosed and as to which the Company believes public
disclosure would be detrimental to the Company or due to material developments
that are not yet reflected in the Shelf Registration Statement, the Company
shall notify all PAR Holders to such effect, and, upon receipt of such notice,
each of the PAR Holders shall immediately discontinue any sales of PAR
Registrable Securities pursuant to such Shelf Registration Statement until each
of the PAR Holders has received copies of a supplemented or amended prospectus
or until the PAR Holders are advised in writing by the Company that the then
current prospectus may be used and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such prospectus. Notwithstanding anything to the contrary herein, the
Company shall not exercise its rights under the preceding sentence to suspend
sales of PAR Registrable Securities for a period in excess of 60 days
consecutively or 90 days in any 365-day period.

(v)           Effective Period of Shelf
Registration. The Company shall use its best efforts to keep any Shelf
Registration Statement filed pursuant to Section 6(c)(i) continuously effective
(including by filing supplements and amendments) in order to permit the
prospectus forming part thereof to be usable by the PAR Holder for such period
that will terminate upon the earliest to occur of the following: (A) when all
PAR Registrable Securities have been sold pursuant to such Shelf Registration
Statement, and (B) two (2) years from the date of the closing of the
transaction under the Stock Purchase Agreement; provided, however,
that the Company shall not have any obligation to maintain the effectiveness of
the Shelf Registration Statement after the date that is one (1) year after the
closing of the transaction under the Stock Purchase Agreement (the “Anniversary Date”) if the Company is not eligible to use
registration Form S-3 unless either (X) the Company’s ineligibility to use Form
S-3 is attributable to delinquent filings under the Exchange Act or (Y) the PAR
Holder, at its option exercisable in its sole discretion, agrees to reimburse
the Company for all incremental legal and accounting costs incurred by the
Company to keep the Shelf Registration Statement effective after the
Anniversary Date. The PAR Holder will reimburse the Company for all incremental
legal and accounting costs by the Company to keep the Shelf Registration
Statement effective during the period from 240 days after the closing of the
transactions under the Stock Purchase Agreement until the Anniversary Date.

(vi)          Conflicting Provisions. If and
to the extent that the provisions of this Section 6(c) are inconsistent with or
conflict with any other provisions of this Agreement, the provisions of this
Section 6(c) shall control.

(d)           Company Registration. If (but
without any obligation to do so) at any time after the date twelve (12) months
following the Closing Date the Company proposes to register (including for this
purpose a registration effected by the Company for Members other than the
Holders) any of its Shares or other securities under the Act in connection with
the public offering of such securities solely for cash (other than a
registration relating solely to the sale of securities to participants in a
Company share plan or a registration under Section 6(c) hereof), the Company
shall, at such time, promptly give each Holder written notice of such
registration. Upon the written request of each Holder given within twenty (20)
days after mailing of such notice by the Company, the Company shall, subject to
the provisions of Section 6(j), cause to be

 19
 

registered under the Act
all of the Registrable Securities that each such Holder has requested to be
registered. The parties waive all rights that they may have to have their
shares included in the Qualified Public Offering being implemented under the
Initial Registration Statement.

(e)           Form S-3 Registration. In case
the Company shall receive at any time after the date twelve (12) months
following the initial Public Offering of Shares of the Company Closing Date
from any Holder or Holders a written request or requests that the Company
effect a registration on Form S-3 and any related qualification or compliance
with respect to all or a portion of the Registrable Securities owned by such
Holder or Holders, the Company will:

(i)            promptly give written notice of the
proposed registration, and any related qualification or compliance, to all
other Holders;

(ii)           as soon as practicable, effect such
registration and all such qualifications and compliances as may be so requested
and as would permit or facilitate the sale and distribution of all or such
portion of such Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any
other Holders joining in such request as are specified in a written request
given within fifteen (15) days after receipt of such written notice from the
Company; provided, however,
that the Company shall not be obligated to effect any such registration,
qualification or compliance, pursuant to this Section 6(e): (A) if Form S-3 is
not available for such offering by the Holders; (B) if the Holders, together
with the holders of any other securities of the Company entitled to inclusion
in such registration, propose to sell Registrable Securities and such other
securities (if any) at an aggregate price to the public (net of any
underwriters’ discounts or commissions) of less than $30,000,000; (C) if the
Company shall furnish to the Holders a certificate signed by the Chief
Executive Officer of the Company stating that in the good faith judgment of the
Board, it would be seriously detrimental to the Company and its owners for such
Form S-3 registration to be effected at such time, in which event the Company
shall have the right to defer the filing of the Form S-3 registration statement
for a period of not more than ninety (90) days after receipt of the request of
the Holders under this Section 6(e); provided, however, that the Company shall not utilize this right more
than once in any twelve (12) month period; (iv) if the Company has, within the
twelve (12) month period preceding the date of such request, already effected
one (1) registration on Form S-3 for the Holders pursuant to this Section 6(e);
or (v) in any particular jurisdiction in which the Company would be required to
qualify to do business or to execute a general consent to service of process in
effecting such registration, qualification or compliance; and

(iii)          subject to the foregoing, the Company
shall file a registration statement covering the Registrable Securities and
other securities so requested to be registered as soon as practicable after
receipt of the request or requests of the Holders. Registrations effected
pursuant to this Section 6(e) shall not be counted as demands for registration
or registrations effected pursuant to Section 6(b).

(f)            Obligations of the Company.
Whenever required under this Section 6 to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

 20
 

(i)            Prepare and file with the SEC a
registration statement with respect to such Registrable Securities and use its
best efforts to cause such registration statement to become effective, and,
upon the request of the holders of a majority of the securities registered
thereunder, keep such registration statement effective for a period of up to
one hundred twenty (120) days or until the distribution contemplated in the
registration statement has been completed, whichever occurs first; provided, however, that
(A) such 120-day period shall be extended for a period of time equal to any
period that the Holder refrains from selling any securities included in such
registration at the request of an underwriter or the Company due to a need, in
accordance with paragraph (vi) below, to prepare and provide a supplemented or
amended prospectus; and (B) in the case of any registration of Registrable
Securities on Form S-3 which are intended to be offered on a continuous or
delayed basis, such 120-day period shall be extended, if necessary, to keep the
registration statement effective until all such Registrable Securities are
sold, provided that Rule 415, or any successor
rule under the Act, permits an offering on a continuous or delayed basis, and provided further that
applicable rules under the Act governing the obligation to file a
post-effective amendment permit, in lieu of filing a post-effective amendment
that (C) includes any prospectus required by Section 10(a)(3) of the Act or (D)
reflects facts or events representing a material or fundamental change in the
information set forth in the registration statement, the incorporation by
reference of information required to be included in (C) and (D) above to be
contained in periodic reports filed pursuant to Section 13 or 15(d) of the 1934
Act in the registration statement.

(ii)           Prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus
used in connection with such registration statement as may be necessary to
comply with the provisions of the Act with respect to the disposition of all
securities covered by such registration statement.

(iii)          Furnish to the Holders such numbers of
copies of a prospectus, including a preliminary prospectus, in conformity with
the requirements of the Act, and such other documents as they may reasonably
request in order to facilitate the disposition of Registrable Securities owned
by them.

(iv)          Use its 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, provided that
the Company shall not 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, unless the Company is already
subject to service in such jurisdiction and except as may be required by the
Act.

(v)           In the event of any underwritten
public offering, enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter of such
offering. Each Holder participating in such underwriting shall also enter into
and perform its obligations under such an agreement.

(vi)          Notify each Holder of Registrable
Securities covered by such registration statement at any time when a prospectus
relating thereto is required to be delivered under the Act of the happening of
any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state a

 21
 

material fact required to
be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing.

(vii)         Cause all such Registrable Securities
registered pursuant to this Section 6 to be listed on each securities exchange
on which similar securities issued by the Company are then listed.

(viii)        Provide a transfer agent and registrar
for all Registrable Securities registered pursuant hereunder and a CUSIP number
for all such Registrable Securities, in each case not later than the effective
date of such registration.

(ix)           If a Holder is or is to be identified
as an “underwriter”, at the request and expense of such Holder, the Company
shall (A) furnish to such Holder, on the date of the effectiveness of the
registration statement and thereafter from time to time on such dates as such
Holder may reasonably request (i) a letter, dated such date, from the Company’s
independent certified public accountants in form and substance as is
customarily given by independent certified public accountants to underwriters
in an underwritten public offering, addressed to the Holders, and (ii) an
opinion, dated as of such date, of counsel representing the Company for
purposes of such registration statement, in form, scope and substance as is
customarily given in an underwritten public offering, addressed to the Holders,
and (B) permit such Holder to participate in good faith in the preparation of
such registration or comparable statement and to require the insertion therein
of material, furnished to the Company in writing, which in the reasonable
judgment of such Holder and its counsel should be included, subject to review
by the Company and their counsel after consultation with such Holder.
Notwithstanding anything herein to the contrary, no Holder shall be designated
as an “underwriter” by the Company in any registration statement without the
consent of such Holder.

(x)            In connection with the due diligence
efforts of any Holder who is or is to be identified as an “underwriter,” the
Company shall make available for inspection during business hours and upon
reasonable advance request by (A) any Holder, (B) counsel for such Holder and
(C) one firm of accountants or other agents retained by such Holder
(collectively, the “Deemed Underwriter Inspectors”), all records, as shall be
reasonably deemed necessary by each Deemed Underwriter Inspector, and cause the
Company’s officers, directors and employees to supply all information which any
Deemed Underwriter Inspector may reasonably request.

(xi)           The Company shall not permit any
officer, director, underwriter, broker or any other person acting on behalf of
the Company to use any free writing prospectus in connection with any
registration statement covering Registrable Securities, without the prior
written consent of the selling Holder and any underwriter which consent shall
not be unreasonably withheld or delayed. Any consent to the use of a free
writing prospectus included in an underwriting agreement to which the Holders
are parties shall be deemed to satisfy the requirement for such consent.

(g)           Furnish Information.

(i)            It shall be a condition precedent to
the obligations of the Company to take any action pursuant to this Section 6
with respect to the Registrable Securities of any selling

 22
 

Holder that such Holder
shall furnish to the Company such information regarding itself, including
without limitation the Registrable Securities held by it, and the intended
method of disposition of such securities as shall be required to effect the
registration of such Holder’s Registrable Securities.

(ii)           The Company shall have no obligation
with respect to any registration requested pursuant to Section 6(b) or 6(e) if,
due to the operation of subsection 6(g)(i), the number of shares or the
anticipated aggregate offering price of the Registrable Securities to be
included in the registration does not equal or exceed the number of shares
required to originally trigger the Company’s obligation to initiate such
registration as specified in subsection 6(b)(i) or 6(e)(ii).

(h)           Expenses of Registration. All
expenses other than underwriting discounts and commissions incurred in
connection with registrations, filings or qualifications pursuant to Sections
6(b), 6(c) and 6(e) hereof, including (without limitation) all registration,
filing and qualification fees, printers’ and accounting fees, fees and
disbursements of counsel for the Company (including the reasonable fees and
disbursements of one counsel for the selling Holders for the first registration
effected pursuant to Section 6 hereof), shall be borne by the Company; provided, however, that
the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 6(b) or 6(e) if the registration request
is subsequently withdrawn at the request of the Holders of a majority of the
Registrable Securities to be registered (in which case all participating
holders shall bear such expenses pro rata), unless the Holders of a majority of
the Registrable Securities agree to forfeit their right to one demand
registration pursuant to Section 6(b) or 6(e) (as applicable); provided, further, that
if at the time of such withdrawal, the Holders have learned of a material
adverse change in the condition, business or prospects of the Company that was
not known to the Holders at the time of their request and have withdrawn the
request with reasonable promptness following disclosure by the Company of such
material adverse change, then the Holders shall not be required to pay any of
such expenses and shall retain their rights pursuant to Section 6(b) or 6(e).

(i)            Expenses of Company Registration.
The Company shall bear and pay all expenses incurred in connection with any
registration, filing or qualification of Registrable Securities with respect to
the registrations pursuant to Section 6(d) for each Holder (which right may be
assigned as provided in Section 6(m)), including (without limitation) all
registration, filing, and qualification fees, printers and accounting fees
relating or apportionable thereto (including the reasonable fees and disbursements
of one counsel for the selling Holders for the first registration effected
pursuant to Section 6 hereof), but excluding underwriting discounts and
commissions relating to Registrable Securities.

(j)            Underwriting Requirements. In
connection with any offering involving an underwriting of shares of the Company’s
Common Shares, the Company shall not be required under Section 6(d) to include
any of the Holders’ securities in such underwriting unless they accept the
terms of the underwriting as agreed upon between the Company and the
underwriters selected by it (or by other persons entitled to select the
underwriters), and then only in such quantity as the underwriters determine in
their sole discretion will not jeopardize the success of the offering by the Company.
If the underwriters, in their sole discretion, determine and advise in writing
the Company and the Holders of the Registrable Securities requesting
participation in

 23
 

such registration that in
its good faith judgment the number of shares of Registrable Securities and the
other securities requested to be registered under Section 6(d) exceeds the
maximum number of the Company’s securities which can be marketed successfully,
then the Company shall be required to include in the offering only that number
of such securities, including Registrable Securities, which the underwriters
determine in their sole discretion will not jeopardize the success of the
offering. Such securities shall be excluded from the underwriting by reason of
the underwriter’s marketing limitation in a manner such that the number of any
Registrable Securities that may be included by such Holders are allocated in
proportion, as nearly as practicable to the amounts of Registrable Securities
held by such Holders.

(k)           Delay of Registration. No
Holder shall have any right to obtain or seek an injunction restraining or
otherwise delaying any such registration as the result of any controversy that
might arise with respect to the interpretation or implementation of this
Section 6.

(l)            Indemnification. In the event
any Registrable Securities are included in a registration statement under this
Section 6:

(i)            To the extent permitted by law, the
Company agrees to indemnify and hold harmless each Holder, any underwriter (as
defined in the Act) for such Holder and each person, if any, who controls such
Holder or underwriter within the meaning of the Act or the 1934 Act, against
any losses, claims, damages, or liabilities (joint or several) to which they
may become subject under the Act, or the 1934 Act or other federal or state
law, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact
contained in such registration statement, including any preliminary prospectus
or final prospectus contained therein or any free writing prospectus or any
amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Act, the 1934 Act, any state securities law or
any rule or regulation promulgated under the Act, or the 1934 Act or any state
securities law; and the Company will pay to each such Holder, underwriter or
controlling person, as incurred, any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this
subsection 6(l)(i) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability, or action if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably
withheld), nor shall the Company be liable in any such case for any such loss,
claim, damage, liability, or action to the extent that it arises out of or is
based upon a Violation which occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with such
registration by any such Holder, underwriter or controlling person.

(ii)           To the extent permitted by law, each
selling Holder agrees to indemnify and hold harmless the Company, each of its
directors, each of its officers who has signed the registration statement, each
person, if any, who controls the Company within the meaning of the Act, any
underwriter, any other Holder selling securities in such registration statement
and any controlling person of any such underwriter or other Holder, against any
losses, claims, damages, or liabilities (joint or several) to which any of the
foregoing persons may become subject, under

 24
 

the Act, or the 1934 Act
or other federal or state law, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Holder expressly for use in connection with such
registration; and each such Holder will pay, as incurred, any legal or other expenses
reasonably incurred by any person intended to be indemnified pursuant to this
subsection 6(l)(ii), in connection with investigating or defending any such
loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this
subsection 6(l)(ii) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Holder, which consent shall not be unreasonably withheld; provided further, that,
in no event shall any indemnity under this subsection 6(l)(ii) exceed the gross
proceeds from the offering received by such Holder.

(iii)          Promptly after receipt by an
indemnified party under this Section 6(l) of notice of the commencement of any
action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any indemnifying party under
this Section 6(l), deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party
(together with all other indemnified parties that may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
6(l), but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 6(l).

(iv)          If the indemnification provided for in
this Section 6(l) is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability, claim,
damage, or expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage, or expense in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions that resulted
in such loss, liability, claim, damage, or expense as well as any other
relevant equitable considerations. The relative fault of the indemnifying party
and of the indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative
intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission.

 25
 

(v)           The obligations of the Company and
Holders under this Section 6(l) shall survive the completion of any offering of
Registrable Securities in a registration statement under this Section 6, and
otherwise.

(m)          Assignment of Registration Rights.
This Agreement and all the rights and obligations of any Holder hereunder may
be assigned or transferred to any transferee or assignee of Registrable
Securities; provided, that (a) such transfer or
assignment of Registrable Securities is effected in accordance with applicable
securities laws, (b) the Holder notifies the Company in writing of the transfer
or assignment, stating the name and the address of the transferee or assignee
and identifying the securities with respect to which such rights are being
transferred or assigned, and (c) such transferee or assignee agrees in writing
to assume such rights and obligations of such transferring Holder relating to
the shares of Registrable Securities being transferred.

(n)           Termination of Registration Rights.
No Holder shall be entitled to exercise any registration right provided for in
Sections 6(b), 6(d) or 6(e) after the date that is two (2) years following an
initial Public Offering of the Shares of the Company or, as to any Holder, such
earlier time at which all Registrable Securities held by such Holder can be
sold in any three (3) month period without registration in compliance with Rule
144 of the Act.

7.             Market Stand-Off Agreement.

(a)           In connection with any underwritten
public offering of the Company’s Common Shares, no Member shall, for a period
specified by the representative of the underwriters of the Common Shares being
sold in such offering, which period shall not exceed 180 days following the
effective date of the registration statement of the Company filed under the
Securities Act relating to such offering (i) lend, offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or dispose of, directly or indirectly, any Shares held by such
Member immediately prior to the effectiveness of the registration statement for
such offering, or (ii) enter into any swap or other arrangement that transfers
to another in whole or in part, any of the economic consequences of ownership
of such Shares, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Shares or other securities, in
cash or otherwise. In furtherance of the foregoing, (a) each Member shall
execute and deliver such other agreements as may be reasonably requested by the
Company or the underwriter(s) which are consistent with the foregoing or which
are necessary to give further effect thereto, and (b) the Company is authorized
to impose stop-transfer instructions with respect to such Member’s Shares
subject to the foregoing restriction until the end of the applicable period.
The foregoing shall not apply to any Holder who signs the lock-up requested by
the Company’s underwriters’ in connection with the Initial Registration
Statement.

(b)           At any time within five (5) years
after a Public Offering of the Company’s Shares, no Member shall permit his
Shares to be borrowed or otherwise used to support short sales of the Company’s
shares in the public market.

 26
 

8.             Clawback Provisions.

(a)           In the event the Company (i)
completes a Qualified Public Offering on or before December 31, 2007 and (ii)
the value of all Preferred Shares and any Common Shares received by holders of
the Preferred Shares upon conversion of the Preferred Shares (excluding any value
attributable to the Clawback Shares) is at least equal to the “Preferred Value Threshold”, then the Investors and the
Series B Holders agree to tender to the Company for cancellation a portion of
their Shares (the “Clawback Shares”)
as follows: (i) each Investor agrees to tender to the Company for cancellation
twenty-four percent (24%) of all Preferred Shares and Common Shares owned by
such Investor at the time of the Qualified Public Offering, and (ii) each
Series B Holder agrees to tender to the Company for cancellation twenty-four
percent (24%) of his Series B Shares and the Common Shares he may have received
upon the conversion of his Series B Shares.

(b)           For purposes of paragraph (a) above,
the value of the Preferred Shares and Common Shares shall be calculated using
the midpoint of the estimated price range displayed in the Company’s
preliminary prospectus for its initial Public Offering.

(c)           For purposes of paragraph (a) above,
the Preferred Value Threshold shall be equal to three (3) times the gross
proceeds received by the Company upon the initial sale of Series A Shares.

(d)           If the conditions in paragraph 9(a)
are met, the Company shall have the authority to cancel such Shares in the
records of the Company and to place stop transfer instructions on all Shares
owned by Investors and Series B Holders until such time as the appropriate
number of Shares shall have been tendered to the Company for cancellation.

(e)           The provisions of this Section 8
shall be binding on all transferees of Investors and Series B Holders.

9.             Compliance with Securities
Laws.

(a)           Each Member acknowledges that the
transfer of any of the Shares is subject to such Member’s compliance with the
provisions of the Securities Act and any applicable state securities laws in
respect of any such transfer.

(b)           Each certificate representing Shares
held by the Existing Holders or Investors, as applicable, or issued to any
Permitted Transferee in connection with a transfer permitted by this Agreement
shall be endorsed with the following legend:

THE SECURITIES EVIDENCED
HEREBY, AND THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES
EVIDENCED HEREBY ARE SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS
AND CONDITIONS OF A CERTAIN INVESTORS AGREEMENT AND BY ACCEPTING ANY INTEREST
IN SUCH SECURITIES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE
TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SUCH AGREEMENT. COPIES OF
SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE
COMPANY.

 27
 

In addition, each
certificate representing Shares shall be endorsed with the following legend:

THE SECURITIES EVIDENCED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED,
SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION THAT
IS NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS.

(c)           The Company shall not be required to
register the transfer of any Shares on the books of the Company unless the
Company shall have been provided with an opinion of counsel in form and
substance reasonably satisfactory to the Company that such Shares sought to be
transferred are eligible for transfer without registration under the Securities
Act. Notwithstanding the foregoing, no such opinion of counsel shall be
necessary in order to effectuate a transfer of any of the Shares (i) in accordance
with the provisions of Rule 144(k) promulgated under the Securities Act, (ii)
in accordance with the intended method of disposition set forth in any
registration statement covering such Shares, or (iii) (A) from a partnership to
its partners or former partners in accordance with their partnership interests,
(B) from a corporation to its stockholders in accordance with their interests
in the corporation, (C) from a limited liability company to its members or
former members in accordance with their interests in the limited liability
company, or (D) from a natural person to such person’s family members or a
trust for the benefit of such person or such person’s family members or such
person’s beneficiaries upon the death of such person; provided,
however, that in each case the
transferee will agree in writing to be subject to the terms of this Section 9
to the same extent as if he or she were an original Member hereunder.

The restrictions upon the
transferability of the Shares described in this Section 9 shall cease
and terminate as to any of the Shares upon the earliest to occur of the
following: (i) such Shares shall have been registered under the Securities Act
and sold or otherwise disposed of in accordance with the intended method of
disposition by the seller or sellers thereof set forth in the registration
statement covering such Shares, (ii) the Company shall have been provided with
an opinion of counsel in form and substance reasonably satisfactory to the
Company to the effect that the restrictive legend on such Shares is no longer
required in order to establish compliance with the provisions of the Securities
Act, or (iii) such Shares are transferred pursuant to Rule 144 or become
transferable in accordance with the provisions of Rule 144(k) promulgated under
the Securities Act. Whenever these restrictions shall terminate as hereinabove
provided with respect to any of the Shares, the holder of any such Shares
bearing the legend set forth in Section 9 shall be entitled to receive
from the Company, at the Company’s expense (except for the payment of any
applicable transfer taxes) and as expeditiously as possible, new certificates
not bearing such legend. The Members acknowledge that the Company has no
obligation to register any Shares under the Securities Act except to the extent
provided in this Agreement.

(d)           The Company acknowledges and agrees
that a Holder may from time to time pledge pursuant to a bona fide margin
agreement with a registered broker-dealer or grant a security interest in some
or all of the Shares to a financial institution that is an “accredited

 28
 

investor” as defined in
Rule 501(a) under the Securities Act and who agrees to be bound by the
provisions of this Agreement and, if required under the terms of such
arrangement, such Holder may transfer pledged or secured Shares to the pledgees
or secured parties. Such a pledge or transfer would not be subject to approval
of the Company and no legal opinion of legal counsel of the pledgee, secured
party or pledgor shall be required in connection therewith, but such legal
opinion shall be required in connection with a subsequent transfer or
foreclosure following default by the Holder transferee of the pledge. Further,
no notice shall be required of such pledge but Holder’s transferee shall
promptly notify the Company of the pledge. At the appropriate Holder’s expense,
the Company will execute and deliver such reasonable documentation as a pledgee
or secured party of Shares may reasonably request in connection with a pledge
or transfer of the Shares, including, if the Shares are subject to registration
pursuant to this Agreement, the preparation and filing of any required
prospectus supplement under Rule 424(b)(3) under the Act or other applicable
provision of the Act to appropriately amend the list of Selling Stockholders
thereunder. Each Holder acknowledges that the Company shall not be responsible
for any pledges relating to, or the grant of any security interest in, any of
the Shares or for any agreement, understanding or arrangement between any Holder
and its pledgee or secured party.

(e)           Certificates evidencing the Shares
shall not contain any legend, (i) following delivery of a current prospectus in
connection with the sale of the Shares while a registration statement covering
the resale of such security is effective under the Act, or (ii) following any
sale of such Shares pursuant to Rule 144 and delivery of appropriate
documentation to the Company’s counsel to that effect, or (iii) if such Shares
are eligible for sale under Rule 144(k) (to the extent that the applicable
Holder provides a certification or legal opinion to the Company to that
effect). The Company shall cause its counsel to issue a legal opinion to the
Company’s transfer agent if required by the Company’s transfer agent to effect
the removal of the legend hereunder. The Company agrees that following such
time as such legend is no longer required under this Section 9(e), it will, as
soon as practicable following the delivery by a Holder to the Company’s
transfer agent of a certificate representing Shares, as the case may be, issued
with a restrictive legend (endorsed or with stock powers attached, signatures
guaranteed, and otherwise in form necessary to affect the reissuance and/or
transfer) deliver or cause to be delivered to such Holder a certificate
representing such shares that is free from all restrictive and other legends.
The Company may not make any notation on its records or give instructions to
any transfer agent of the Company that enlarge the restrictions on transfer set
forth in this Section.

10.           Execution by the Company.
The Company shall cause the certificates evidencing the Shares to bear the
legends required by Section 9 of this Agreement, and it shall supply,
free of charge, a copy of this Agreement to any holder of a certificate
evidencing Shares upon written request from such holder to the Company at its
principal office. The failure of the certificates evidencing the Shares to bear
the legend required by Section 9 herein and the failure of the Company
to supply, free of charge, a copy of this Agreement as provided under this Section
9 shall not affect the validity or enforcement of this Agreement.

 29
 

11.           Enforcement.

(a)           Specific Enforcement. The
Company, PAR and each Member acknowledges and agrees that each party hereto
will be irreparably damaged in the event any of the provisions of this
Agreement are not performed in accordance with their specific terms or are
otherwise breached and that money damages are an inadequate remedy for breach
of the Agreement because of the difficulty of ascertaining and quantifying the
amount of damage that will be suffered by the parties hereto in the event that
this Agreement is not performed in accordance with its terms or conditions or
is otherwise breached. Accordingly, the Company, PAR and each of the Members
shall be entitled to seek an injunction to prevent breaches of this Agreement
and to seek specific enforcement of this Agreement and its terms and provisions
in any action instituted in any court of the United States or any state having
subject matter jurisdiction, in addition to any other remedy to which the
parties may be entitled at law or in equity.

(b)           Cumulative Remedies; Failure to
Pursue Remedies. No delay or omission to exercise any right, power or
remedy accruing to any party under this Agreement, upon any breach or default
of any other party under this Agreement, shall impair any such right, power or
remedy of such non-breaching or non-defaulting party nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of
any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under
this Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party, shall be
cumulative and not alternative.

(c)           Governing Law. This Agreement
shall be construed in accordance with and governed by the laws of the State of
Nevada (without giving effect to any conflicts or choice of law provisions that
would cause the application of the domestic substantive laws of any other
jurisdiction). None of the parties hereto has agreed with or represented to any
other party that the provisions of this Section will not be fully enforced in
all instances.

(d)           Waiver of Jury Trial. Each of
the parties hereto hereby voluntarily and irrevocably waives trial by jury in
any action or other proceeding brought in connection with this agreement or any
of the transactions contemplated hereby. No party has agreed with or
represented to any other party that the provisions of this section will not be
fully enforced in all instances.

(e)           Consent to Exclusive Jurisdiction
of the Courts of Nevada.

Each of the
parties hereto hereby consents to the exclusive jurisdiction of the courts of
the State of Nevada and the United States District Court for Nevada, as well as
to the jurisdiction of all courts to which an appeal may be taken from such
courts, for the purpose of any suit, action or other proceeding arising out of
or in connection with this Agreement or any of the transactions contemplated
hereby, including, without limitation, any proceeding relating to ancillary
measures in aid of arbitration, provisional remedies and interim relief, or any
proceeding to enforce any arbitral decision or award.

 30
 

Each of the
parties hereto hereby expressly waives any and all rights to bring any suit,
action or other proceeding in or before any court or tribunal other than the
courts referenced above and covenants that such party shall not seek in any
manner to resolve any dispute other than as set forth herein or to challenge or
set aside any decision, award or judgment obtained in accordance with the
provisions hereof.

Each of the
parties hereto hereby expressly waives any and all objections such party may
have to venue in any of such courts, including, without limitation, the
inconvenience of such forum. In addition, each of the parties hereto hereby
consents to personal jurisdiction in any such court having subject matter
jurisdiction.

(f)            Prevailing Party’s Costs and
Expenses. The prevailing party in any mediation, arbitration or legal
action to enforce or interpret this Agreement shall be entitled to recover from
the non-prevailing party all costs and expenses, including reasonable attorneys’
fees, incurred in such action or proceeding.

12.           Miscellaneous.

(a)           Share Splits; Subsequent Issuances.
Any references to numbers of shares of capital of the Company in this Agreement
shall be appropriately adjusted to reflect any share dividend, split,
combination or other recapitalization affecting such shares occurring after the
date of this Agreement. In the event of any issuance of shares of the Company
hereafter to any of the Existing Holders or Investors (including, without
limitation, in connection with any share split, share dividend,
recapitalization, reorganization, or the like), such Shares shall become
subject to this Agreement and shall be endorsed with the legend set forth in Section
9.

(b)           Ownership. Each Existing
Holder and each Investor represents and warrants that he, she or it is the sole
legal and beneficial owner of the Shares subject to this Agreement and that no
other Person has any interest in such Shares (other than a community property
interest as to which the holder thereof has acknowledged and agreed in writing
to the restrictions and obligations hereunder).

(c)           Potential Incorporation. In
the event the Company subsequently incorporates or otherwise is succeeded by a
corporate entity, this Agreement shall be restated to apply to the stock in the
new corporate entity with, to the extent possible, the same rights and
limitations set forth in this Agreement.

(d)           Notices. All demands, notices,
requests, consents and other communications required or permitted under this
Agreement shall be in writing and shall be personally delivered or sent by
facsimile machine (with a confirmation copy sent by one of the other methods
authorized in this section), commercial (including Federal Express) or U.S.
Postal Service overnight delivery service, or deposited with the U.S. Postal
Service mailed first class, registered or certified mail, postage prepaid, as
follows:

 31
 

If to the Company:

Allegiant Travel Company,
LLC

3301 Buffalo Drive

Suite B-9

Las Vegas, Nevada 89129

Attention: Chief
Executive Officer

Tel: (702) 851-7300

Fax: (702) 851-9051

with copies (not to constitute notice) sent at the same time and by the
same means to:

Ellis Funk

3490 Piedmont Road, Suite
400

One Securities Centre

Atlanta, GA 30305

Attention: Robert B. Goldberg, Esq.

Tel: (404) 233-2800

Fax: (404) 233-2188

If to any Member, to the address of such Member reflected in the
Company’s share records, but if to ComVest Allegiant Holdings LLC:

ComVest Allegiant
Holdings II LLC

One North Clematis Street

Suite 300

West Palm Beach, FL 33401

Attention: Carl Kleidman

Tel: (561) 868-6070

Fax: (212) 829-5978

with a copy (which shall not constitute notice) sent at the same time
and by the same means to:

Alan I. Annex, Esq.

Greenberg Traurig LLP

The MetLife Building

200 Park Avenue

New York, New York 10166

Tel: (212) 801-9200

Fax: (212) 801-6400

If to PAR:

PAR Investment Partners,
L.P.

c/o PAR Capital
Management, Inc.

One International Place

Suite 2401

Boston, MA 02110

Attention: Edward L. Shapiro

Gina M. DiMento

Tel: (617) 526-8942

Fax: (617) 556-8875

 32
 

with a copy (which shall not constitute notice) sent at the same time
and by the same means to:

Jeffrey C. Hadden, Esq.

Goodwin | Procter LLP

53 State Street

Boston, MA 02109

Tel: (617) 570-1872

Fax: (617) 523-1231

Notices shall be deemed
given upon the earlier to occur of (i) receipt by the party to whom such notice
is directed; (ii) if sent by facsimile machine, the day (other than a Saturday,
Sunday or legal holiday in the jurisdiction to which such notice is directed)
such notice is sent if sent (as evidenced by the facsimile confirmed receipt)
prior to 5:00 p.m. U.S. Eastern Time, or the day (other than a Saturday, Sunday
or legal holiday in the jurisdiction to which such notice is directed) after
which such notice is sent if sent after 5:00 p.m. U.S. Eastern Time; (iii) if
sent by overnight delivery service, the first business day (other than a
Saturday, Sunday or legal holiday in the jurisdiction to which such notice is
directed) following the day the same is deposited with the commercial carrier
or U.S. Postal Service; or (iv) if sent by first class mail, registered or
certified, postage prepaid, the fifth day (other than a Saturday, Sunday or
legal holiday in the jurisdiction to which such notice is directed) following
the day the same is deposited with the U.S. Postal Service. Each party, by
notice duly given in accordance herewith, may specify a different address for
the giving of any notice hereunder.

(e)           Entire Agreement. This
Agreement (including the Exhibits hereto, if any), the Certificate of
Determination, the Purchase Agreement and any other related agreements
referenced in the Purchase Agreement constitute the full and entire understanding
and agreement between the parties with respect to the subject matter hereof,
and any other written or oral agreement relating to the subject matter hereof
existing between the parties are expressly canceled.

(f)            Amendment. This Agreement may
be amended or modified and the observance of any term hereof may be waived
(either generally or in a particular instance and either retroactively or
prospectively) only by a written instrument executed by the Company and the
holders of at least 66 2/3% of the Common Shares and Conversion Shares;
provided, however, any amendment, modification or waiver of any provision
contained in Section 6 hereof or this Section 12(f) shall also require the
consent of PAR. Any amendment or waiver so effected shall be binding upon the
Company, the Investors, the Existing Holders, PAR and all of their respective
successors and permitted assigns whether or not such party, assignee or other
member entered into, executed, or approved such amendment or waiver.
Notwithstanding the foregoing,

 33
 

except as set forth in
the next sentence, this Agreement may not be amended or terminated and the
observance of any term of this Agreement may not be waived: (i) with respect to
any Member so as to affect it adversely in a manner different than any other
Member without the written consent of a majority in interest of such affected
Members and (ii) with respect to any Investor so as to affect it adversely in a
manner disproportionate to the effect on each other Investor without the
consent of such affected Investor. No such consent contemplated in the
preceding sentence of Members who are Investors or Series B Holders shall be
required, however, for any amendment, termination or waiver made in connection
with any transaction or series of related transactions in which the Company is
selling any New Securities as long as the Investors or Series B Holders, as the
case may be, are given the right to participate in such transaction or series
of transactions in accordance with Section 5 of this Agreement and
Members who are Fully-Exercising Offerees are similarly treated and Members who
are not Fully-Exercising Offerees are similarly treated. The Company shall give
prompt written notice of any amendment or termination of this Agreement or
waiver hereunder to any Party that did not consent in writing to such
amendment, termination or waiver. No waivers of or exceptions to any term,
condition or provision of this Agreement, in any one or more instances, shall
be deemed to be, or construed as, a further or continuing waiver of any such
term, condition or provision.

(g)           Transfers, Successors and Assigns.

(1)           The terms and conditions of this
Agreement shall inure to the benefit only of the respective Permitted
Transferees of the parties hereto. The terms and conditions of this Agreement
shall be binding on all of the respective successors and assigns of the parties
hereto Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement.

(2)           Each transferee or assignee of the
Shares subject to this Agreement (including transfers by Investors described in
Section 3(c)) shall continue to be subject to the terms hereof, and, as a
condition to the Company’s recognizing such transfer, each transferee or
assignee shall agree in writing to be subject to each of the terms of this
Agreement by executing and delivering an Instrument of Accession substantially
in the form attached hereto as Exhibit A. Upon the execution and
delivery of an Instrument of Accession by any transferee, such transferee shall
be deemed to be a party hereto as if such transferee’s signature appeared on
the signature pages of this Agreement. By execution of this Agreement or of any
Instrument of Accession, each of the parties appoints the Company as its
attorney in fact for the purpose of executing any Instrument of Accession that
may be required to be delivered under the terms of this Agreement. The Company
shall not permit the transfer of any Shares subject to this Agreement on its
books or issue a new certificate representing any such Shares unless and until
such transferee shall have complied with the terms of this Section 12(g).
Each certificate representing the Shares subject to this Agreement if issued on
or after the date of this Agreement shall be endorsed by the Company with the
legend set forth in Section 9. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective executors, administrators, heirs, successors and assigns any
rights, remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 34
 

(h)           Construction. Whenever the
context requires, the gender of any word used in this Agreement includes the
masculine, feminine or neuter, and the number of any word includes the singular
or plural. Unless the context otherwise requires, all references to articles
and sections refer to articles and sections of this Agreement, and all
references to schedules are to schedules attached hereto, each of which is made
a part hereof for all purposes. No provisions of this Agreement will be
interpreted in favor of, or against, any of the parties hereto by reason of the
extent to which any such party or its counsel participated in the drafting
thereof or by reason of the extent to which any such provision is inconsistent
with any prior draft hereof or thereof.

(i)            Severability. If any term or
provision of this Agreement, or the application thereof to any person or
circumstance, shall, to any extent, be invalid or unenforceable, the remainder
of this Agreement, or application to other persons or circumstances, shall not
be affected thereby, and each term and provision of this Agreement shall be
enforced to the fullest extent permitted by law.

(j)            Headings. The headings and
subheadings in this Agreement are included for convenience and identification
only and are in no way intended to describe, interpret, define or limit the
scope, extent or intent of this Agreement or any provision hereof.

(k)           Counterparts. This Agreement
may be executed in any number of counterparts with the same effect as if all
parties hereto had signed the same document, and all counterparts shall be
construed together and shall constitute one instrument. This Agreement may be
executed by any party by delivery of a facsimile signature, which signature
shall have the same force as an original signature. Any party which delivers a
facsimile signature shall promptly thereafter deliver an originally executed
signature to the other parties; provided, however, that the failure to deliver
an original signature page shall not affect the validity of any signature
delivered by facsimile. Facsimile or photocopied signature shall be deemed to
be the functional equivalent of an original for all purposes.

(l)            Additional Holders. In the
event that after the date of this Agreement, the Company issues shares of
capital of the Company to any Person, the Company shall cause such Person to
execute a counterpart signature page hereto as an Existing Holder, and such
Person shall thereby be bound by, and subject to, all the terms and provisions
of this Agreement applicable to an Existing Holder.

[Remainder of Page Intentionally Left Blank]

 35

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

	
  

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
   

  	
  ALLEGIANT TRAVEL COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Maurice J. Gallagher

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Maurice
  J. Gallagher

  
	
   

  	
   

  	
   

  	
  Title:    CEO, President

  
	
   

  
	
  

  
	
   

  	
  PAR:

  
	
   

  	
   

  	
  PAR INVESTMENT PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: PAR Group, L.P.

  
	
   

  	
   

  	
  Its: General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: PAR Capital Management, Inc.

  
	
   

  	
   

  	
  Its: General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Edward L. Shapiro

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Edward
  L. Shapiro

  
	
   

  	
   

  	
   

  	
  Title:    Vice
  President

  
	
   

  
	
   

  
	
   

  	
  INVESTORS:

  
	
   

  	
   

  
	
   

  	
   

  	
  COMVEST ALLEGIANT HOLDINGS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert Priddy

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Robert
  Priddy

  
	
   

  	
   

  	
   

  	
  Title:    Managing
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Declan F. Ryan

  	
   

  
	
   

  	
   

  	
  Declan F. Ryan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Maurice Mason

  	
   

  
	
   

  	
   

  	
  Maurice Mason

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Anthony Carragher

  	
   

  
	
   

  	
   

  	
  Anthony Carragher

  
	
   

  
	
   

  
	
  [Signature Page
  To Amended and Restated Investors Agreement]

  
						

 

 

	
  

  	
   

  	
  /s/ Timothy P. Flynn

  	
   

  
	
   

  	
   

  	
  Timothy P. Flynn

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Donald J. Ellis

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  David I. Funk

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Robert B. Goldberg

  	
   

  
	
   

  	
   

  	
  Robert B. Goldberg

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Albert L. Labovitz

  	
   

  
	
   

  	
   

  	
  Albert L. Labovitz

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Robert N. Dokson

  	
   

  
	
   

  	
   

  	
  Robert N. Dokson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Jeff Susa

  	
   

  
	
   

  	
   

  	
  Jeff Susa

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ George K. Connor

  	
   

  
	
   

  	
   

  	
  George K. Connor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Mark F. Matthews

  	
   

  
	
   

  	
   

  	
  Mark F. Matthews

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Sean P. Corrigan

  	
   

  
	
   

  	
   

  	
  Sean P. Corrigan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Ronald B. Booth

  	
   

  
	
   

  	
   

  	
  Ronald B. Booth

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ John Redmond

  	
   

  
	
   

  	
   

  	
  John Redmond

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Signature Page
  To Amended and Restated Investors Agreement]

  

 

 

	
  

  	
  THE IVAR J. AND SHELLYANNE H. BOLANDER

  LIVING TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ivar J. Bolander

  	
   

  
	
   

  	
   

  	
  Name:  Ivar J.
  Bolander

  
	
   

  	
   

  	
  Title:    Trustee

  
	
   

  	
   

  
	
   

  	
  CRAIG R. FRANKLIN & LESLI E. FRANKLIN TTEES

  O/T CRAIG & LESLI FRANLIN LIV. TR U/A DTD

  08/05/04

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Craig Franklin

  	
   

  
	
   

  	
   

  	
  Name:  Craig
  Franklin

  
	
   

  	
   

  	
  Title:    Trustee

  
	
   

  	
   

  
	
   

  	
  GALLAGHER FAMILY INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice J. Gallagher, Jr.

  	
   

  
	
   

  	
   

  	
  Name:  Maurice
  J. Gallagher, Jr.

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GALLAGHER STOCK TRUST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Maurice J. Gallagher, Jr.

  	
   

  
	
   

  	
   

  	
  Name:  Maurice
  J. Gallagher, Jr.

  
	
   

  	
   

  	
  Title:

  
	
   

  
	
   

  
	
  EXISTING HOLDERS:

  
	
   

  
	
   

  
	
   

  	
  /s/ Maurice J. Gallagher, Jr.

  	
   

  
	
   

  	
  Maurice J. Gallagher, Jr.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Mitchell Allee

  	
   

  
	
   

  	
  Mitchell Allee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ M. Ponder Harrison

  	
   

  
	
   

  	
  M. Ponder Harrison

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Andrew C. Levy

  	
   

  
	
   

  	
  Andrew C. Levy

  
	
   

  	
   

  
	
   

  	
  /s/ Linda A. Marvin

  	
   

  
	
   

  	
  Linda A. Marvin

  
	
   

  
	
   

  
	
  [Signature Page
  To Amended and Restated Investors Agreement]

  
					

 

SCHEDULE
A

EXISTING HOLDERS

	
  Name and Address

  	
   

  	
  Class of Shares Held

  	
   

  	
  Number of Shares Held

  	
   

  
	
  Maurice J.
  Gallagher, Jr.

  	
   

  	
  Common

  	
   

  	
  4,033,333

  	
   

  
	
  Maurice J.
  Gallagher, Jr.

  	
   

  	
  Series
  B Preferred

  	
   

  	
  750,000

  	
   

  
	
  Mitchell Allee

  	
   

  	
  Common

  	
   

  	
  937,500

  	
   

  
	
  M. Ponder
  Harrison

  	
   

  	
  Common

  	
   

  	
  537,500

  	
   

  
	
  Andrew C. Levy

  	
   

  	
  Common

  	
   

  	
  537,500

  	
   

  
	
  Linda A. Marvin

  	
   

  	
  Common

  	
   

  	
  387,500

  	
   

  

 

SCHEDULE
B

INVESTORS

	
  Name and Address

  	
   

  	
  Number of Preferred Shares Held

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ComVest Allegiant Holdings LLC

  One North Clemantis Street, Suite 300

  West Palm Beach, Florida 33401

  	
   

  	
  6,250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Viva Air Limited (successor to Darley Properties
  Limited)

  4th Floor, Research Building

  NCI, IFSC

  Dublin 1, Ireland

  	
   

  	
  1,875,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Timothy P. Flynn

  3291 N. Buffalo Drive, Suite 8

  Las Vegas, Nevada 89129

  	
   

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Donald J. Ellis, Esq.

  Ellis Funk

  3490 Piedmont Road, Suite 400

  Atlanta, Georgia 30305

  	
   

  	
  500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  David I. Funk, Esq.

  Ellis Funk

  3490 Piedmont Road, Suite 400

  Atlanta, Georgia 30305

  	
   

  	
  1,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Robert B. Goldberg, Esq.

  Ellis Funk

  3490 Piedmont Road, Suite 400

  Atlanta, Georgia 30305

  	
   

  	
  3,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Albert L. Labovitz, Esq.

  Ellis Funk

  3490 Piedmont Road, Suite 400

  Atlanta, Georgia 30305

  	
   

  	
  2,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Robert N. Dokson, Esq.

  Ellis Funk

  3490 Piedmont Road, Suite 400

  Atlanta, Georgia 30305

  	
   

  	
  1,500

  	
   

  

 

 

	
  Ivar J. and Shelleyanne H. Bolander Living Trust

  3558 Round Barn Blvd.

  Suite 201

  Santa Rosa, CA 95403

  	
   

  	
  12,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Craig R. Franklin &
  Lesli E. Franklin TTEES O/T

  Craig & Lesli Franklin Liv. TR U/A DTD 08/05/04

  11732 Creek Hollow Road

  Healdsburg, CA 95448

  	
   

  	
  12,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Jeff Susa

  3275 S. Jones

  #105

  Las Vegas, NV 89146

  	
   

  	
  31,250

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  George K. Connor

  3291 N. Buffalo Drive

  Suite 8

  Las Vegas, NV 89129

  	
   

  	
  25,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Mark F. Matthews

  5260 N. Palm

  Suite 400

  Fresno, CA 93704

  	
   

  	
  12,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sean P. Corrigan

  2960 Traverse Creek Lane

  Las Vegas, NV 89135

  	
   

  	
  31,250

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ronald B. Booth

  3291 N. Buffalo Drive

  Suite 8

  Las Vegas, NV 89129

  	
   

  	
  25,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  John Redmond

  8812 Greensboro Lane

  Las Vegas, NV 89134

  	
   

  	
  31,250

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Gallagher Family Investments LLC

  3301 N. Buffalo Drive, Suite B-9

  Las Vegas, NV 89129

  	
   

  	
  268,750

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Gallagher Stock
  Trust

  3301 N. Buffalo Drive, Suite B-9

  Las Vegas, NV 89129

  	
   

  	
  50,000

  	
   

  

 

EXHIBIT A

INSTRUMENT OF ACCESSION

The undersigned,                                          ,
in order to become the owner or holder of                    
[Common Shares] [Series         
Shares], of Allegiant Travel Company, LLC, a Nevada limited liability company,
hereby agrees to become [an Investor] [an Existing Holder] party to and bound
by the terms of that certain Amended and Restated Investors Agreement, dated as
of December 13, 2006 (the “Investors Agreement”),
a copy of which is attached hereto. This Instrument of Accession shall become a
part of such Investors Agreement.

Executed as of the
date set forth below under the laws of the State of Nevada.

	
  

  	
  Signature:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
					

 

EXHIBIT B

TERMS OF PLAN OF DISTRIBUTION

Allegiant Travel
Company [or such defined term] is registering the shares of common stock
covered by this prospectus for the selling stockholders. As used in this
prospectus, “selling stockholders” includes the donees, transferees, pledgees
or others who may later hold the selling stockholders’ interests. Pursuant to a
registration rights agreement, dated as of December
         , 2006, Allegiant agreed
to register the common stock owned by the selling stockholders and to indemnify
the selling stockholders against certain liabilities related to the selling of
the common stock, including liabilities arising under the Securities Act. Under
the registration rights agreement, Allegiant also agreed to pay the costs and
fees of registering the shares of common stock; however, the selling
stockholders will pay any brokerage commissions or underwriting discounts
relating to the sale of the shares of common stock.

The selling
stockholders may sell the common stock being offered hereby in one or more of
the following ways at various times:

·                     to
underwriters for resale to the public or to institutional investors;

·                     directly to
institutional investors; or

·                     through
agents to the public or to institutional investors.

The selling
stockholder may offer its shares of common stock in one or more offerings
pursuant to one or more prospectus supplements, if required by applicable law,
and any such prospectus supplement will set forth the terms of the relevant
offering to the extent required. To the extent the shares of common stock
offered pursuant to a prospectus supplement remain unsold, the selling
stockholders may offer those shares of common stock on different terms pursuant
to another prospectus supplement.

The selling
stockholders will act independently of Allegiant in making decisions with
respect to the timing, manner and size of each sale. The selling stockholders
may sell the common stock on any national securities exchange on which the
common stock may be listed and traded or otherwise, at market prices prevailing
at the time of sale, at prices related to the prevailing market prices, or at
negotiated prices. If underwriters are used in the sale, the common stock will
be acquired by the underwriters for their own account and may be resold at
various times in one or more transactions, including negotiated transactions,
at a fixed public offering price or prices, which may be changed, at market prices
prevailing at the time of sale, at prices related to such prevailing market
prices, or at negotiated prices. A distribution of the common stock by the
selling stockholders may also be effected through the issuance by the selling
stockholders or others of derivative securities, including without limitation,
warrants, exchangeable securities, forward delivery contracts and the writing
of options.

In addition, the
selling stockholders may sell some or all of the shares of common stock covered
by this prospectus through:

·                     a block trade
in which a broker-dealer will attempt to sell as agent, but may position or
resell a portion of the block, as principal, in order to facilitate the
transaction;

·                     purchases by
a broker-dealer, as principal, and resale by the broker-dealer for its account;

·                     ordinary
brokerage transactions and transactions in which a broker solicits purchasers;
or

·                     privately
negotiated transactions.

The selling
stockholders may also enter into hedging transactions. For example, the selling
stockholders may:

·                     enter into
transactions with a broker-dealer or affiliate thereof in connection with which
such broker-dealer or affiliate will engage in short sales of the common stock
pursuant to this prospectus, in which case such broker-dealer or affiliate may
use shares of common stock received from the selling stockholders to close out
its short positions;

·                     sell common
stock short itself and redeliver such shares to close out its short positions;

·                     enter into
option or other types of transactions that require the selling stockholders to
deliver common stock to a broker-dealer or an affiliate thereof, who will then
resell or transfer the common stock under this prospectus; or

·                     loan or
pledge the common stock to a broker-dealer or an affiliate thereof, who may
sell the loaned shares or, in an event of default in the case of a pledge, sell
the pledged shares pursuant to this prospectus.

In addition,                          may
enter into derivative or hedging transactions with third parties, or sell securities
not covered by this prospectus to third parties in privately negotiated
transactions. In connection with such a transaction, the third parties may sell
securities covered by and pursuant to this prospectus and an applicable
prospectus supplement. If so, the third party may use securities borrowed from                          
or others to settle such sales and may use securities received from                          
to close out any related short positions.
                         may
also loan or pledge securities covered by this prospectus and an applicable
prospectus supplement to third parties, who may sell the loaned securities or,
in an event of default in the case of a pledge, sell the pledged securities
pursuant to this prospectus and the applicable prospectus supplement.

The applicable
prospectus supplement will set forth the terms of the offering of the common
stock covered by this prospectus, including:

·                     the name or
names of any underwriters, dealers or agents and the amounts of securities
underwritten or purchased by each of them, if any; and

·                     the public
offering price of the common stock and the proceeds to the selling stockholders
and any discounts, commissions or concessions or other items constituting
compensation allowed, reallowed or paid to underwriters, dealers or agents, if
any.

Any public
offering price and any discounts, commissions, concessions or other items
constituting compensation allowed or reallowed or paid to underwriters, dealers
or agents may be changed from time to time.

The selling
stockholders may negotiate and pay broker-dealers’ commissions, discounts or
concessions for their services. Broker-dealers engaged by the selling
stockholders may allow other broker-dealers to participate in resales. The
selling stockholders and any broker-dealers involved in the sale or resale of
the common stock may qualify as “underwriters” within the meaning of Section
2(a)(11) of the Securities Act. In addition, the broker-dealers’ commissions,
discounts or concessions may qualify as underwriters’ compensation under the
Securities Act. If any the selling stockholders qualifies as an “underwriter,”
it will be subject to the prospectus delivery requirements of Section 5(b)(2)
of the Securities Act.

In addition to selling
its common stock under this prospectus, the selling stockholders may:

·                     agree to
indemnify any broker-dealer or agent against certain liabilities related to the
selling of the common stock, including liabilities arising under the Securities
Act;

·                     transfer its
common stock in other ways not involving market makers or established trading
markets, including directly by gift, distribution, or other transfer;

·                     sell its
common stock under Rule 144 of the Securities Act rather than under this
prospectus, if the transaction meets the requirements of Rule 144; or

·                     sell its
common stock by any other legally available means.EXHIBIT  10.4

SECOND AMENDMENT TO AMENDED AND
RESTATED

REVOLVING
CREDIT LOAN AGREEMENT

GREENWOOD FINANCIAL, INC.,

A DELAWARE CORPORATION,

AND CERTAIN AFFILIATES

Borrowers

ORLEANS HOMEBUILDERS, INC.,

A DELAWARE CORPORATION

Guarantor

WACHOVIA BANK, NATIONAL ASSOCIATION

Administrative
Agent

WACHOVIA CAPITAL MARKETS, LLC

Lead
Arranger

BANK OF AMERICA, N.A.

Syndication Agent

SOVEREIGN BANK

Documentation Agent

MANUFACTURERS AND TRADERS TRUST
COMPANY

Documentation Agent

NATIONAL CITY BANK

Documentation Agent

WACHOVIA BANK, NATIONAL
ASSOCIATION

FIRSTRUST BANK

GUARANTY BANK

U.S. BANK NATIONAL ASSOCIATION

CITIZENS BANK OF PENNSYLVANIA

COMMERCE BANK, N.A.

SUNTRUST BANK

REGIONS BANK

FRANKLIN BANK, SSB

COMERICA BANK

COMPASS BANK, an Alabama Banking
Corporation

JPMORGAN CHASE BANK, N.A.

LASALLE BANK NATIONAL ASSOCIATION

DEUTSCHE BANK TRUST COMPANY
AMERICAS

Lenders

Executed:
February 7, 2007

 

SECOND
AMENDMENT TO AMENDED AND RESTATED

REVOLVING CREDIT LOAN AGREEMENT

This Second Amendment to Amended and Restated
Revolving Credit Loan Agreement (“this Amendment”), executed as of the 7th day
of February, 2007 (the “Execution Date”) but effective as of December 31, 2006
(the “Effective Date”), by and among GREENWOOD FINANCIAL, INC., a Delaware
corporation (“Master Borrower”), each of the other entities identified on
Schedule 1.1A that is attached hereto as “Borrowers,” ORLEANS HOMEBUILDERS,
INC., as Delaware corporation as guarantor (“Guarantor”), the Lenders who are a
party hereto, and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent for the Lenders
(“Agent”).

BACKGROUND

A.            Master
Borrower, Agent, the Lenders, Guarantor and the Borrowers are parties to an
Amended and Restated Revolving Credit Loan Agreement dated as of January 24,
2006, and amended by a First Amendment to Amended and Restated Revolving Credit
Loan Agreement dated as of November 1, 2006 (as so amended, the “Agreement”).  All capitalized terms used but not
specifically defined herein have the meanings defined in the Agreement.

B.            The
parties hereto desire to modify and amend the Agreement in the manner set forth
in this Amendment.

NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are acknowledged,
and intending to be legally bound hereby, the parties hereto agree as follows:

1.             Section 8.1.2 of the Agreement is hereby deleted, as of
the Effective Date, and the following is inserted in its place:

8.1.2        As
of the last day of each of the following Fiscal Quarters, for the Relevant
Accounting Period then ended, the ratio of (i) the sum of (a) Guarantor’s
Adjusted EBITDA plus (b) non-cash charges and expenses (including, but
not limited to, inventory impairment, abandoned project charges and stock
option expense) plus (c) extraordinary losses plus (d) net income
from Joint Ventures up to the amount of cash actually distributed to Guarantor minus
(e) non-cash credits minus (f) extraordinary gains to (ii) Debt Service
shall be greater than or equal to the following applicable ratios:  

	
  Fiscal Quarters Ended

  	
   

  	
  Minimum Required Ratio

  
	
  December 31, 2006

  	
   

  	
  2.00:1

  
	
  March 31, 2007

  	
   

  	
  1.50:1

  
	
  June 30, 2007

  	
   

  	
  1.50:1

  
	
  September 30, 2007

  	
   

  	
  1.50:1

  
	
  December 31, 2007

  	
   

  	
  1.50:1

  
	
  March 31, 2008

  	
   

  	
  1.65:1

  

 

 

	
  Fiscal Quarters Ended

  	
   

  	
  Minimum Required Ratio

  
	
  June 30, 2008

  	
   

  	
  1.80:1

  
	
  September 30, 2008

  	
   

  	
  1.80:1

  
	
  If the Maturity Date is postponed pursuant to
  Section 2.13:

  	
   

  	
   

  
	
  December 31, 2008

  	
   

  	
  1.80:1

  
	
  Last day of each subsequent Fiscal Quarter

  	
   

  	
  2.25:1

  

 

2.             Section 8.5 of the Agreement is hereby deleted, as of
the Effective Date, and the following is inserted in its place:

8.5           Ownership of Land.

8.5.1        On
the last day of each Fiscal Quarter that ends on or after December 31, 2006,
(i) the aggregate book value of all Approved Land and Raw Land owned by
Borrowers, Guarantor or any subsidiary of a Borrower or Guarantor shall not
exceed thirty percent (30%) of Guarantor’s Consolidated Adjusted Tangible Net
Worth and (ii) the ratio of (a) the book value of all Land owned by Borrowers,
Guarantor or any subsidiary of a Borrower or Guarantor which is not subject to
a Qualifying Agreement of Sale and on which no Unit has been constructed or is
being constructed to (b) Guarantor’s Consolidated Adjusted Tangible Net Worth
shall not exceed the applicable ratio determined as follows:

	
  Fiscal Quarter Ending

  	
   

  	
  Applicable Ratio

  
	
  December 31, 2006

  	
   

  	
  1.90:1

  
	
  March 31, 2007

  	
   

  	
  1.90:1

  
	
  June 30, 2007

  	
   

  	
  1.75:1

  
	
  September 30, 2007

  	
   

  	
  1.65:1

  
	
  December 31, 2007

  	
   

  	
  1.65:1

  
	
  March 31, 2008 and thereafter

  	
   

  	
  1.50:1

  

 

8.5.2        Notwithstanding the provisions of Section8.5.1
hereof, on the last day of each Fiscal Quarter that ends on or after the
Collateral Release Date (i) the aggregate book value of all Approved Land and
Raw Land owned by Borrowers, Guarantor or any subsidiary of a Borrower or
Guarantor shall not exceed twenty-five percent (25%) of Guarantor’s
Consolidated Adjusted Tangible Net Worth and (ii) the ratio of (a) the book
value of all Land owned by Borrowers, Guarantor or any subsidiary of a Borrower
or Guarantor which is not subject to a Qualifying Agreement of Sale and on
which no Unit has been constructed or is being constructed to (b) Guarantor’s
Consolidated Adjusted Tangible Net Worth shall not exceed 1.25:1.

3.             Effect of this Amendment.  This Amendment shall become effective (but as
of the Effective Date) only upon the execution of this Amendment by the
Borrowers, Guarantor, Agent and Requisite Lenders.

 2
 

4.             Facility
Amendment Consideration.

4.1           Upon the execution of this Amendment, Borrowers shall pay to
Agent, for the account of each of those Lenders who has executed this
Amendment, a facility amendment fee in the amount that is equal to 0.10% (ten
(10) “basis points”) of the Commitment of each such Lender.  Such facility amendment fee, once paid, shall
not be refundable to Borrowers in any amount or for any reason.

4.2           Notwithstanding the provisions of Section 2.4.2 of the
Agreement, the adjustment of the Applicable Spread that is determined on the
basis of the Covenant Compliance Certificate that is required to be delivered
on February 19, 2007, shall be made (and shall be effective) as of the
Execution Date.

5.             Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and shall be
binding upon all parties, their successors and assigns, and all of which taken
together shall constitute one and the same agreement.

6.             Entire
Agreement.  The
Agreement (as amended by this Amendment) and the other Loan Documents contain
the entire agreement and understanding among Borrowers, Guarantor, Lenders and
Agent regarding the Facility.  All prior
negotiations and discussions between or among any of the parties hereto
regarding the Facility and the terms and conditions thereof are superseded by
the Agreement (as amended by this Amendment) and the other Loan Documents.

[Signatures
on the following page]

 3
 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement under seal the day and year set forth
above.

	
  Master Borrower:

  	
  Greenwood Financial, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Lawrence J. Dugan

  	
   

  
	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Corporate Borrowers:

  	
  Masterpiece Homes, Inc.

  
	
   

  	
  OHB Homes, Inc.

  
	
   

  	
  Orleans Corporation

  
	
   

  	
  Orleans Corporation of New Jersey

  
	
   

  	
  Orleans Construction Corp.

  
	
   

  	
  Parker & Lancaster Corporation

  
	
   

  	
  Parker & Orleans Homebuilders, Inc.

  
	
   

  	
  Sharp Road Farms, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Lawrence J. Dugan

  	
   

  
	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
  Vice President

  

 

[Borrowers’
signatures continued on the following page]

 4
 

 

	
  Limited Liability Company

  	
   

  	
   

  
	
  Borrowers:

  	
   

  	
   

  
	
   

  	
  Meadows at Hyde Park, LLC

  
	
   

  	
  OPCNC, LLC

  
	
   

  	
  Orleans at Bordentown, LLC

  
	
   

  	
  Orleans at Cooks Bridge, LLC

  
	
   

  	
  Orleans at Covington Manor, LLC

  
	
   

  	
  Orleans at Crofton Chase, LLC

  
	
   

  	
  Orleans at East Greenwich, LLC

  
	
   

  	
  Orleans at Elk Township, LLC

  
	
   

  	
  Orleans at Evesham, LLC

  
	
   

  	
  Orleans at Hamilton, LLC

  
	
   

  	
  Orleans at Harrison, LLC

  
	
   

  	
  Orleans at Hidden Creek, LLC

  
	
   

  	
  Orleans at Jennings Mill, LLC

  
	
   

  	
  Orleans at King Ranch, LLC

  
	
   

  	
  Orleans at Lambertville, LLC

  
	
   

  	
  Orleans at Lyons Gate, LLC

  
	
   

  	
  Orleans at Mansfield, LLC

  
	
   

  	
  Orleans at Maple Glen, LLC

  
	
   

  	
  Orleans at Meadow Glen, LLC

  
	
   

  	
  Orleans at Millstone, LLC

  
	
   

  	
  Orleans at Millstone River Preserve, LLC

  
	
   

  	
  Orleans at Moorestown, LLC

  
	
   

  	
  Orleans at Tabernacle, LLC

  
	
   

  	
  Orleans at Upper Freehold, LLC

  
	
   

  	
  Orleans at Wallkill, LLC (f/k/a Kabro of Middletown,
  LLC)

  
	
   

  	
  Orleans at Westampton Woods, LLC

  
	
   

  	
  Orleans at Woolwich, LLC

  
	
   

  	
  Orleans DK, LLC

  
	
   

  	
  Parker Lancaster, Tidewater, LLC

  
	
   

  	
  Wheatley Meadows Associates, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Lawrence J. Dugan

  	
   

  
	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
  Vice President

  

 

[Borrowers’
signatures continued on the following page]

 5
 

 

	
  Limited Partnership

  	
   

  	
   

  
	
  Borrowers:

  	
   

  	
   

  
	
   

  	
  Brookshire Estates, L.P.(f/k/a Orleans at Brookshire
  Estates, L.P.)

  
	
   

  	
  Orleans at Aston, LP

  
	
   

  	
  Orleans at Falls, LP

  
	
   

  	
  Orleans at Limerick, LP

  
	
   

  	
  Orleans at Lower Salford, LP

  
	
   

  	
  Orleans at Thornbury, LP

  
	
   

  	
  Orleans at Upper Saucon, L.P.

  
	
   

  	
  Orleans at Upper Uwchlan, LP

  
	
   

  	
  Orleans at West Bradford, LP

  
	
   

  	
  Orleans at West Vincent, LP

  
	
   

  	
  Orleans at Windsor Square, LP

  
	
   

  	
  Orleans at Wrightstown, LP

  
	
   

  	
  Stock Grange, LP

  
	
   

  	
  By:

  	
  OHI PA GP, LLC, sole General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Lawrence J. Dugan

  	
   

  
	
   

  	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Orleans RHIL, LP

  
	
   

  	
  Realen Homes, L.P.

  
	
   

  	
  By:

  	
  RHGP, LLC, sole General Partner

  
	
   

  	
   

  	
  By:

  	
  Orleans Homebuilders, Inc.,

  
	
   

  	
   

  	
   

  	
  Authorized Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  James Thompson

  	
   

  
	
   

  	
   

  	
   

  	
  Acting Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Guarantor:

  	
  Orleans Homebuilders, Inc., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  James Thompson

  	
   

  
	
   

  	
   

  	
  Acting Chief Financial Officer

  
							

 

[Lenders’
signatures on the following pages]

 6
 

 

	
  Agent:

  	
  Wachovia Bank, National Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Jeffrey D. Wallace

  	
   

  	
   

  
	
   

  	
   

  	
  Jeffrey D. Wallace

  
	
   

  	
   

  	
  Senior Vice President

  

 

 7

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

WACHOVIA BANK,

NATIONAL ASSOCIATION

	
  

  	
  By:

  	
  Jeffrey D. Wallace

  
	
   

  	
   

  	
  Jeffrey D. Wallace, Senior Vice President

  

 

 8
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

BANK OF AMERICA, N.A.

	
  

  	
  By:

  	
  Sean Finnegan

  
	
   

  	
   

  	
  Name: Sean Finnegan

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 9
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

SOVEREIGN BANK

	
  

  	
  By:

  	
  Ernest J. Kociban

  
	
   

  	
   

  	
  Name: Ernest J. Kociban

  
	
   

  	
   

  	
  Title: Senior Vice-President

  

 

 10
 

LENDER SIGNATURE PAGE TO SECOND
AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD
FINANCIAL, INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

MANUFACTURERS AND TRADERS
TRUST COMPANY

	
  

  	
  By:

  	
  Bernard T. Shields

  
	
   

  	
   

  	
  Name: Bernard T. Shields

  
	
   

  	
   

  	
  Title: Vice President

  

 

 11
 

LENDER SIGNATURE PAGE TO SECOND
AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH
GREENWOOD FINANCIAL, INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

NATIONAL CITY BANK

	
  

  	
  By:

  	
  Brian Gallagher

  
	
   

  	
   

  	
  Name: Brian Gallagher

  
	
   

  	
   

  	
  Title: Vice President

  

 

 12
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

FIRSTRUST BANK

	
  

  	
  By:

  	
  Gary S. Kinn

  
	
   

  	
   

  	
  Name: Gary S. Kinn

  
	
   

  	
   

  	
  Title: Vice President

  

 

 13
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

GUARANTY BANK

	
  

  	
  By:

  	
  Linda Garcia

  
	
   

  	
   

  	
  Name: Linda Garcia

  
	
   

  	
   

  	
  Title: Sr. Vice President

  

 

 14
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

U.S. BANK NATIONAL
ASSOCIATION

	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 15
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

CITIZENS BANK OF
PENNSYLVANIA

	
  

  	
  By:

  	
  Michael J. DiSanto

  
	
   

  	
   

  	
  Name: Michael J. DiSanto

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 16
 

LENDER SIGNATURE PAGE TO SECOND AMENDMENT TO
AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT WITH GREENWOOD FINANCIAL,
INC. AS MASTER BORROWER, DATED AS OF FEBRUARY 7, 2007:

COMMERCE BANK, N.A.

	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 17

	
   

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Ashish Tandon

  
	
   

  	
   

  	
  Name: Ashish Tandon

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 

 18
 

 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REGIONS BANK, successor by merger to

  Amsouth Bank

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Daniel McClarkin

  
	
   

  	
   

  	
  Name: Daniel McClarkin

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 19
 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FRANKLIN BANK, SSB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Virgil J. Haplea

  
	
   

  	
   

  	
  Name: Virgil J. Haplea

  
	
   

  	
   

  	
  Title: Sr. Vice President

  

 20
 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED

  
	
   

  	
  AND RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Adam Sheets

  
	
   

  	
   

  	
  Name: Adam Sheets

  
	
   

  	
   

  	
  Title: Account Officer

  

 21
 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPASS BANK, an Alabama Banking

  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Johanna Duke Paley

  
	
   

  	
   

  	
  Name: Johanna Duke Paley

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 22
 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Thomas J. Reynolds

  
	
   

  	
   

  	
  Name: Thomas J. Reynolds

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 23
 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LaSALLE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 24
 

 

	
  

  	
  LENDER SIGNATURE PAGE TO SECOND

  
	
   

  	
  AMENDMENT TO AMENDED AND

  
	
   

  	
  RESTATED REVOLVING CREDIT LOAN

  
	
   

  	
  AGREEMENT WITH GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS MASTER BORROWER,

  
	
   

  	
  DATED AS OF FEBRUARY 7, 2007:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  David J. Bell

  
	
   

  	
   

  	
  Name: David J. Bell

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 25

Schedule
1.1A  — 
Schedule of Borrowers

	
  Master:

  	
  Greenwood Financial, Inc.

  
	
  Corporate:

  	
   

  
	
   

  	
  Masterpiece Homes, Inc.

  
	
   

  	
  OHB Homes, Inc.

  
	
   

  	
  Orleans Corporation

  
	
   

  	
  Orleans Corporation of New Jersey

  
	
   

  	
  Orleans Construction Corp.

  
	
   

  	
  Parker & Lancaster Corporation

  
	
   

  	
  Parker & Orleans Homebuilders, Inc.

  
	
   

  	
  Sharp Road Farms, Inc.

  
	
  Limited Liability Companies:

  	
   

  
	
   

  	
  Meadows at Hyde Park, LLC

  
	
   

  	
  OPCNC, LLC

  
	
   

  	
  Orleans at Bordentown, LLC

  
	
   

  	
  Orleans at Cooks Bridge, LLC

  
	
   

  	
  Orleans at Covington Manor, LLC

  
	
   

  	
  Orleans at Crofton Chase, LLC

  
	
   

  	
  Orleans at East Greenwich, LLC

  
	
   

  	
  Orleans at Elk Township, LLC

  
	
   

  	
  Orleans at Evesham, LLC

  
	
   

  	
  Orleans at Hamilton, LLC

  
	
   

  	
  Orleans at Harrison, LLC

  
	
   

  	
  Orleans at Hidden Creek, LLC

  
	
   

  	
  Orleans at Jennings Mill, LLC

  
	
   

  	
  Orleans at King Ranch, LLC

  
	
   

  	
  Orleans at Lambertville, LLC

  
	
   

  	
  Orleans at Lyons Gate, LLC

  
	
   

  	
  Orleans at Mansfield, LLC

  
	
   

  	
  Orleans at Maple Glen, LLC

  
	
   

  	
  Orleans at Meadow Glen, LLC

  
	
   

  	
  Orleans at Millstone, LLC

  
	
   

  	
  Orleans at Millstone River Preserve, LLC

  
	
   

  	
  Orleans at Moorestown, LLC

  
	
   

  	
  Orleans at Tabernacle, LLC

  
	
   

  	
  Orleans at Upper Freehold, LLC

  
	
   

  	
  Orleans at Wallkill, LLC (f/k/a Kabro of Middletown,
  LLC)

  
	
   

  	
  Orleans at Westampton Woods, LLC

  
	
   

  	
  Orleans at Woolwich, LLC

  
	
   

  	
  Orleans DK, LLC

  
	
   

  	
  Parker Lancaster, Tidewater, LLC

  
	
   

  	
   

  
	
  (Schedule
  of Borrowers continued on the following page)

  

 

 

	
  

  	
   

  
	
  Limited Partnerships:

  	
  Brookshire Estates, L.P.(f/k/a Orleans at Brookshire
  Estates, L.P.)

  
	
   

  	
  Orleans at Aston, LP

  
	
   

  	
  Orleans at Falls, LP

  
	
   

  	
  Orleans at Limerick, LP

  
	
   

  	
  Orleans at Lower Salford, LP

  
	
   

  	
  Orleans RHIL, LP

  
	
   

  	
  Orleans at Thornbury, LP

  
	
   

  	
  Orleans at Upper Saucon, L.P.

  
	
   

  	
  Orleans at Upper Uwchlan, LP

  
	
   

  	
  Orleans at West Bradford, LP

  
	
   

  	
  Orleans at West Vincent, LP

  
	
   

  	
  Orleans at Windsor Square, LP

  
	
   

  	
  Orleans at Wrightstown, LP

  
	
   

  	
  Realen Homes, L.P.

  
	
   

  	
  Stock Grange, LP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]